IT BPM Industry Future and Growth
About IT BPM:
The Philippines’ IT BPM industry, or Information Technology and Business Process Management, has been one of the best employment and performance rates within the past 4 years. Since 2010, the IT BPM industry in the Philippines has overtaken India’s long standing position in voice-based services, making the country the number one provider for such work in the global economy. In addition to this, several non-voice and complex BPO services such as healthcare information management, animation and software development are gaining prominence. Estimated to be at the same level as the IT BPM industry figures, it’s not long before the Phillipines becomes the leading outsourcing country across all areas.
The global foundation of their IT BPM success is largely attributed to the strong and diverse skills of the workforce. Filipinos hold a competitive advantage in English communication skills, strong customer service etiquette and Western culture familiarity. This alone breaks the destructive offshoring stigma which deters many companies away in fear of tainting their brand name. Coupled with the Filipino’s hard work, openness to learning and friendly demeanor, these advantages provide investors with a strong homeland advantage once they set up shop.
Due to its positive influence on it’s global image, the Philippine government provides the IT BPM industry with dedicated funding to ensure that the sector continues to expand, making it one of the most supported sectors within the Philippines. Former President Benigno Aquino III praised the industry’s successful impact on the economy during the International IT-BPM Summit last year, and reiterated the government’s continued support, with recently elected President Rodrigo Duterte sustaining this within his government according to Inquirer.net.
Hitting 2016’s revenue target of $25B
As of late, the IT BPM indsutry of the Philippines is on track to meet it’s goal of $25 billion in revenue and 1.3 jobs generated by the end of 2016. According to the Manila Times, Chairman of the executive committee of the IT and Business Process Benedict Hernandez, the industry has provided a “7 percent to 7.5 percent of the Philippines’ gross domestic product for the year” and were on successful track to meeting their goals.
“As far as the roadmap 2016 goals, which we actually set out five and a half years ago, we’re on goal and on target,” he said during the opening of the first Philippine IT BPM office of US-based Affiinion Group last week.
We were successful in diversifying the industry and its businesses over the last couple of years of where are clients are coming from, and we also manage to broaden the types of services and capabilities that the Philippines is known for. he added.
This increase has been steadily impressive, with numbers almost doubling since 2012’s figures sitting at $13.2 billion.
Prediction for 2010 revenue target of $48B
With targets well on it’s way to being met, the industry is now facing it’s next 4-year plan, with goals to grow by 18 percent yearly to meet a $48 billion figure by 2020, says Trade Secretary Gregory L. Domingo. However, whilst this forecast is achievable, it was already a stretch target for the local IT BPM industry.
“The problem is, as the base grows, the tendency is for the growth to slow down a little bit,” Domingo explains.
To help achieve these targets, the IT and Business Process Association of the Philippines (IBPAP) has sought anew for more support from the government to address a number of issues affecting the sector. IBPAP chair Danilo Sebastian L. Reyes also citied during the recent International IT BPM Summit the need to develop the talent pool in the country to accommodate for the growing global outsourcing market. Scholarship funding will attract more high school graduates into the sector and support the IT BPM indsutry further.
Meanwhile, plans are currently in motion to evaluate the current roadmap to help improve to not only ensure this goal is met, but improve the Philippines’ global brand. Manila currently has a well established repertoire, being the world’s second leading outsourcing destination. With the 2020 projected revenue, the Philippines would account for 19 percent of the $250-billion outsourcing industry, states Thonlons principal Vikrant Khanna.
“The advantage of scale, talent, and cost would propel the Philippines to be an attractive location and retain global leadership,” Khanna said.
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