PHILIPPINE players in the information technology and business process management (IT-BPM) should pursue a new game plan to sustain the industry’s growth trajectory as demand in the sector is expected to double by 2022, the Department of Trade and Industry (DTI) said.
According to DTI Secretary Ramon Lopez, the total global opportunity for the IT-BPM industry is expected to grow from the current $166 billion to $250 billion by 2022.
“The Philippines has been growing at more than twice the global market growth rate over the past five years,” he said during the general membership assembly meeting of the Information Technology and Business Process Association of the Philippines (IBPAP) on September 22.
Lopez called on industry players to work with the government in crafting a new game plan that that will enable the industry to create more jobs and contribute to inclusive growth.
As the IT-BMP Industry Roadmap 2011-2016 nears conclusion with target revenues of up to $25 billion and an employee base of 1.3 million by year-end, a new industry roadmap for 2017-2022 is slated to be made public next month.
The IT-BMP sector’s contribution translates to a high value added of about $19,000 per capita by year-end, Lopez said, and this is projected to further increase as the sector aims to acquire higher-value projects on software development, healthcare information management, creative services and products, and engineering services.
“Our objective in our partnership with you in this next phase is to create an ecosystem that will further foster sustained and more inclusive growth for the IT-BPM sector,” Lopez said, expressing the hope that IBPAP will continue promoting the country’s competitive advantages and growth potential in both existing and new areas of outsourcing.
He emphasized the important role that the IT-BPM industry plays in enhancing the country’s competitive advantage as a premier destination for voice and non-voice services.
The DTI chief outlined policy reforms and other government initiatives for the IT-BPM industry, including the implementation of the Training for Work Scholarship Program (TWSP), which has benefited more than 230,000 graduates from 2010 to May 2016.
The partnership between the Commission on Higher Education and IBPAP has resulted in the creation of the Service Management Program (SMP), a specialization track for business and IT schools aimed at developing manpower suited for the IT-BPM industry.
He explained that IT-BPM activities may avail of several tax incentive packages provided by the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA), adding that the DTI is supporting the modernization of the country’s investment incentives regime.
“In granting incentives, our focus will be on creating decent jobs in the Philippines and as such, bias against foreign investors and against those serving the domestic market will be removed,” Lopez said.
Founded in 2004, IBPAP is the “enabling association” for the IT-BPM industry in the country, supported by various stakeholders, including the government, Philippine and foreign chambers of commerce, and allied industries such as property, telecommunications, and employee benefits.