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PH IT-BPM industry set to increase revenues to $18B in 2014

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2014 is expected to be another solid year for the information technology and business process management (IT-BPM) industry, as all indicators point to a strong finish, with revenues for the industry reaching up to US$18 billion or around P782 billion by year end.

In an interview last February, Information Technology and Business Process Association of the Philippines (IBPAP) President Jomari Mercado said the industry is seen to grow by 16 percent year-on-year because of the emergence of new growth areas. These possible contributors to growth are the back office, finance & accounting services, and healthcare sector.

Mercado also sees the entry of global in-house centers (GICs), which mostly focus on accounting for overseas branches, as another contributor to revenue growth. With increased demand for support services, the Filipino workforce is poised to take the largest gain as the industry could create an additional 100,000 jobs this year and exceed the one million employment mark by the end of 2014.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) forecasts the industry will continue the 15 percent export revenue growth it has shown in 2013. Export revenue is the earning made by the industry from rendering services to companies outside the Philippines. This year the IT-BPM industry’s export revenue is expected to reach US$15.3 billion.

BSP Director for the Department of Economic Research Zeno Abenoja said industry growth is primarily because of the expansion of financial and non-financial services such as animation and healthcare-BPO.  The healthcare segment is expected to see revenues of US$3.5 billion by 2016.

According to the BSP, government programs such as tax breaks and state-sponsored technical training are important factors in driving up investor interest in the country as an IT-BPM destination.

The steady growth of the industry is expected to continue into the next two years, as IT-BPM companies are expected to create additional 300,000 jobs, bringing total employment generated by the industry to 1.3 million by 2016. By that time, revenue is expected to reach US$25 billion. That would be around 6.7% of the total projected GDP by the International Monetary Fund (IMF) for the country which is pegged at around US$372.6 billion.

Over the years, the IT-BPM industry has remained as one of the leading industries in the country in terms of its significant contributions to the country’s economy and its people. It is a potent force in enabling thousands of Filipinos to improve their lives and provide a better future for their family and, ultimately, the country.

The future of the IT-BPM industry and more will be discussed in this year’s International IT-BPM Summit (IIS) in October. One session will review IBPAP’s industry road map from 2012 to 2016 and tackle milestones, the industry’s unprecedented growth, and where it is headed. Another session will focus on the growing number of GICs in the country and the growing importance of complex, non-transactional services. For more on what to expect at IIS, visit http://www.internationalitbpmsummit.com.



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