ITBPM industry experiences flat growth – Manila Bulletin

Taking into account the factors affecting the global IT business process management (IT-BPM) of the pandemic, the Philippine industry is projected to end unchanged this year and highlighted the need for significant government interventions to achieve and maintain the forecast. of renewed growth until 2022.

The IT Business Process Association of the Philippines (IBPAP) recalibrated the 2022 roadmap presented at the 2020 International Innovation Summit showing that the industry workforce is expected to grow between 2.7% and 5% or around 1 , 37 million to 1.43 million full-time employees, and industry revenue. from between $ 27.88 billion to $ 29.09 billion with a compound annual growth rate (CAGR) of 3.2% to 5.5% through 2022.

Everest Group partner H. Karthik, who produced the IBPAP 2022 roadmap, said the growth forecast for the Philippines was also in line with the global projection of flat growth this year and the expectation of an increase of between 3.5 and 4 percent in revenue over the next couple of years.

“We are also beginning to see signs of recovery and change of momentum in the third quarter, a look at the results of the quarterly results, the global service providers will indicate that there is no definite momentum,” he said.

In line with the global industry, he said that the Philippine ITBPM industry revenue is also expected to remain stable in 2020. “Now this may sound like a reduction in growth or rather this is a reduction in growth. compared to previous years, but the industry has been growing steadily, ”he said.

“The ITBPM industry in the Philippines has the potential to grow at a cumulative growth rate of around 5.5 percent in revenue and 5 percent in headcount over the next two years,” he said, highlighting that “what we are Looking at the Philippines is a clear reflection of the global market. But the industry expects to remain stable this year. However, if you were to look at the prospects for the next two years. “

“While these new figures are the goal of the Philippine IT-BPM industry for 2022, it is equally important to know how we will achieve them. The recalibration study also provided us with imperatives that we and our stakeholders must assume, not only to meet these goals, but to strengthen our sector locally and globally, ”said Rey Untal, President and CEO of IBPAP.

As the industry is ready to move forward, Untal said this growth will be facilitated by accelerated digital transformation, a strong ecosystem, a skilled workforce, and strong government support.

Government interventions include strengthening telecommunications infrastructure to better support long-term remote work; accelerate investment in talent development programs, especially for next generation skills; a stronger shift towards digitally complemented services rapidly accelerating investments in digital and cybersecurity initiatives; harnessing the potential of the field by accelerating the development of talent and infrastructure outside of Metro Manila; improve the position of the local industry in the global market by improving the focus on resilience, greater commitment by stakeholders and government, and the ability to provide complex services; and improve the ease of doing business by improving and strengthening government support to provide an enabling environment for business.

The ITBPM industry has been a fundamental pillar of the Philippine economy, especially in terms of job creation. In 2019, the sector posted a total full-time employment of 1.3 million, representing a growth of 5.8 percent over 2018, while revenue amounted to $ 26.3 billion, which represents an increase of 7.1 percent over the previous year.

But like other industries, IT-BPM was deeply affected by the ongoing COVID-19 pandemic, but was able to take advantage of the government’s immediate assessment of the industry as an essential sector.

Since then, the industry has proven its resilience, starting with just 50 percent productivity in March to more than 95 percent in November through a blended service delivery model.

Challenges facing the industry around the world include pressure on cost structures, geopolitical changes, an increased focus on Business Continuity Plans (BCP), and the urgency of automation and digital transformation.

“By sharing our renewed vision for 2022, we want to highlight the importance of strengthening collaborations between our stakeholders in the private sector, government and academia. This is to help the sector pivot and continually prosper so that we can all unleash opportunities and open new paths to strengthen our position as one of the world’s leading investment destinations, ”concluded Untal.