THE IT and Business Process Management (IT-BPM) industry may “slightly exceed” its revenue target of $35.4 billion for 2023, according to IT and Business Process Association of the Philippines (IBPAP) President Jack Madrid.
During the International IT-BPM Summit held in Pasay City last Wednesday, the IBPAP chief said the target is 8.8 percent higher than the previous year’s revenues of $32.5 billion.
If the said target would be reached by the end of the year, Madrid said the industry would account for 8.4 percent of the country’s GDP, compared to just 7 percent last year.
He also said the 8.8-percent revenue growth would exceed the global average of 7.7 percent.
In a statement on Wednesday, IBPAP cited the factors that would propel the growth of the IT-BPM industry. Among the growth drivers, it noted, is the “Philippine Advantage,” saying that “US companies are increasingly redirecting work offshore and they are showing a clear preference for the Philippines.” Another factor that would drive the growth of the country’s IT-BPM industry this year is the “persistent” talent gap in North America for IT-BPM services which IBPAP said “has driven companies to look beyond their borders for skilled professionals.”
The flagship organization of the IT-BPM industry said “strong government support” will boost its performance.
“The Philippine government has played a crucial role in this growth story by instituting supportive remote and hybrid work policies. These policies have not only helped companies adapt to the changing work landscape but have also attracted foreign investments,” IBPAP said.
With this, Madrid said, “Our outlook for 2023 is bright—in fact, better than we initially projected—and we are committed to sustaining this trajectory of impactful and positive growth throughout the coming years.”
Meanwhile, the IBPAP chief provided updates on the progress of the industry progress to Roadmap 2028. Madrid reported that from the start of 2022 until the end of 2023, the industry expects to add 257,000 full-time employees (FTEs) to its headcount or 23 percent of the 1.1 million target additional jobs by 2028.
In terms of revenues, he said the industry is expecting to generate $5.9 billion or 20 percent of the $29.5 billion target additional revenues by 2028.
According to IBPAP, this growth is mirrored in how countryside development has remained “robust.”
In fact, the industry group said, “Based on the latest industry data, the majority of companies have expressed a strong and enduring commitment to expansion through more locations outside Metro Manila.”
Locations such as Cebu, Davao City, Iloilo, Clark, and Cagayan de Oro “consistently” top the list of favored destinations in the countryside, it added.