[ad_1]
The IT-BPM industry will hire fewer new workers and make less money than expected in the final years of the Duterte administration after the latest projections knocked down the already lowered forecast for 2022.
The Information Technology and Business Process Management (IT-BPM) sector is projected to create 130,000 new jobs at most in 2022, a far cry from the original 500,000 new jobs that would have been created based on the projections made in 2016.
By then, the industry, one of the largest employers in the private sector, will have a total workforce of 1.43 million workers. Meanwhile, its revenue is projected to top $ 29.09 billion in 2022, a figure that used to be the bottom of its growth range when the industry first lowered its forecasts last year.
This was in accordance with the latest results from the so-called second industry recalibration exercise, which was conducted by the research firm Everest Group. The results were first announced at an industry conference Thursday night.
It was also Everest Group that lowered the industry roadmap last year after taking into account the potential impact of the Duterte administration’s move to streamline tax breaks for companies within economic zones, many of which were IT-BPM companies.
In 2019, Everest Group said the industry would have a compound annual growth rate (CAGR) of 3.5 to 7.5 percent in 2022 for revenue, and then a CAGR of 3 to 7 percent for employment.
On Thursday, however, these projections were further lowered to growth of 3.2 to 5.5 percent for revenue and 2.7 to 5 percent for headcount.
H. Karthik, who leads Everest Group’s global sourcing practice, said late Thursday that achieving these growth figures would depend on multiple factors.
These, he said, included the launch of an effective COVID-19 vaccine, as well as the impact of the administration’s tax reform bill, which is now known as CREAR or the Corporate Recovery and Tax Incentives Law for Companies.
The latest figures do not necessarily mean job cuts and declines in industry revenue. However, the data shows how low expectations had weakened for one of the country’s top dollar winners due to multiple factors, some of which are beyond its control. In 2016, the industry thought it would reach $ 39 billion in 2022 and have 1.8 million workers.
The industry not only has to deal with the impact of the pandemic, but even with the possibility that the Duterte government will rationalize its tax breaks, which helped attract foreign investors to the country during the Aquino presidency.
Rey Untal, president and CEO of the Philippine IT and Business Process Association (IBPAP), said at an online press conference on Friday that meeting the targets does not directly depend on the shoulders of the industry.
“If you ask me, I’d really love to try the [Everest Group] studying badly and being able to grow above the five and a half percent that is projected. But we still have a lot of work to do to achieve it, “said Untal.
Read next
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer and more than 70 other titles, share up to 5 gadgets, listen to the news, download from 4am and share articles on social media. Call 896 6000.
For comments, complaints or inquiries, please contact us.
[ad_2]
