Friday, April 12, 2024

NewsHorizon

Where your horizon expands every day.

Business

The IT-BPM industry is on course to achieve its revenue target and increase its contribution to the GDP.


Written by Justine Irish D. Tabile, a journalist

THE PHILIPPINE information technology

The IT and Business Process Association of the Philippines (IBPAP) reports that the IT-BPM industry is expected to meet its revenue goal of $35.4 billion (P2 trillion) by the end of the year. This growth is attributed to the presence of US outsourcing firms, a shortage of skilled workers in North America, and continued government support.

ffi

During a business conference on Wednesday, Jack Madrid, the CEO, spoke to journalists and expressed his hopes of meeting or possibly surpassing the target.

If the objective is met, the sector will achieve a yearly increase of 8.8%, exceeding the worldwide industry growth rate of 7.7%.

According to Mr. Madrid, this will enable the industry to boost its contribution to the gross domestic product (GDP) from 7% to 8.4% compared to the previous year. He also mentioned that the percentage of India’s IT-BPM industry in its economy is significantly lower at 3-4%.

In the meantime, the Philippine IT-BPM industry has exceeded the global industry’s accomplishments in terms of workforce, with a total of 1.7 million full-time employees, marking an 8.7% increase from last year.

According to Mr. Madrid, the Philippines is a leading location for IT-BPM and is often selected for offshoring and providing customer experience.

According to him, this is due to the fact that Filipinos are known for their ability to provide intricate business services and varied capabilities in various industries.

The Philippine government has been instrumental in the growth of the industry by promoting remote and hybrid work policies.

According to Mr. Madrid, these policies have not just enabled companies to adjust to the evolving work environment, but have also enticed foreign investments.

He stated that the IBPAP’s membership has grown and there are also several multinational companies that have established offices in the country, with plans to further expand.

He stated the significance of noting that the majority of the world is already present and those who are already here are looking to expand their presence further due to their satisfaction with the current outcomes.

The IT-BPM industry anticipates a growth of 257,000 employees and $5.9 billion in earnings over the next two years, ending in December of this year.

Mr. Madrid stated that these figures show that the industry is on track to reach 23% of the necessary 1.1 million jobs and 20% of the required $29.5 billion in revenue by 2028.

The expansion of the IT-BPM industry was also evident in rural areas, as companies made a strong commitment to expand beyond Metro Manila, according to the speaker.

According to the head of IBPAP, Cagayan de Oro, Cebu, Clark, Davao, and Iloilo are currently the top choices for IT-BPM companies.

He stated that this pledge not only aids in boosting the economy, but also extends its advantages to underdeveloped areas and other fields such as food, shipping, property, retail, and transportation.

According to Mr. Madrid, the Philippines placed second among the leading IT-BPM competitors worldwide, following India which maintained its top spot due to its larger population. He stated that while the Philippines may not be the largest player, it could be compared to the Swiss Bank of the IT-BPM sector in terms of providing excellent customer experience.

There is a possibility for the country to surpass India, to some degree, as there is a demand for Filipino agents to handle inquiries and concerns from around the globe.