Despite challenges, the Philippines IT business process management (IT-BPM) sector was expected to have grown as much 12 percent in revenues and 8 percent in jobs in 2021, driven by strong demand from creatives , healthcare, and IT services.
Jack Madrid, president and CEO of the IT Business Process Association of the Philippines (IBPAP), said the Philippines ITBPM sector in 2021 likely followed the same growth trajectory of the global industry.
Madrid said that a study by its research partner Everest Group showed that the global industry should have grown 7 to 8 percent in terms of headcount and 8-12 percent or even up to an impressively high 13 percent growth in revenue generation.
“This signifies a shift to more digital and more complex work. We are also seeing our sector continue to create job opportunities for more Filipinos,” Madrid said noting the over 80,000 job openings reported by an online job portal from Jan. to Sept. 2021. “That's only nine months but that's 30 percent higher than the full year of 2020,” he said.
In terms of real estate, the ITBPM sector also proved to be the top user with its demand for office spaces reached 254,000 square meters in the January-November period last year. Madrid also reported that demand for ITBPM office spaces was not only concentrated in Metro Manila but distributed around key cities—Cebu, Iloilo and Davao – in the country.
He attributed the growth to the government’s support particularly the Department of Trade and Industry which allowed them some concessions that help the sector mobilize very quickly both in terms of personnel and cargo and allowing members to operate 100 percent work from home arrangement alongside service providers.
In addition, ITBPM workers were among the priority frontliners to receive vaccines. He also extensive discussions with a different policy members and makers in the government to ensure the industry's point of view and voice on crucial bills, laws and issuances continue to be heard and considered.
The IBPAP is also engaged in discussions with the Philippine Economic Zone Authority (PEZA) about extending the work from home arrangements until September this year without the risk of losing their incentives.
The Philippine Economic Zone Authority (PEZA), which registers and administers ITBPM operators, has also been supportive of extending the work from home arrangements.
Nevertheless, Madrid said “We need to be ready to make plans in the scenario that our request will be denied.” He said that IBPAP will be meeting its members next week to discuss the way forward in this scenario.
IBPAP is also discussing with PEZA on their endorsement of VAT zero rating of local purchases of registered export enterprises to sustain growth and support business environment.
“There is no question that ITBPM can achieve even greater heights as an economic pillar of the Philippines by forging an even stronger relationship and partnership with the government,” said Madrid.
In 2020, the industry grew 21.8 percent and added 21.8 percent or 23,000 new jobs. ”That is no small feat despite all the challenges we face in 2020. This resulted in 1.32 million jobs and $26.7 billion in revenues, a modest 1.4 percent growth from 2019.
He further noted that the ITBPM sector has contributed P329 billion in investments in the country in the past 20 years. “That's over 12 percent of the total investments in PEZA resulting in almost 1 million direct jobs. So our sector is expected to continue to lead in diversifying the export base of the Philippines,” he added.