By Tom Noda
The Information Technology and Business Process Association of the Philippines (IBPAP) said on Monday, Oct. 13, that the IT and business process management (IT-BPM) industry has now a total of 1 million employees.
IBPAP president and CEO Jose Mari Mercado said the industry is also now attempting to reach the revenue projection by global consultancy firm Tholons, which said that country has the capability to earn as much as $48 billion revenues by 2020.
Mercado made the statements during the IBPAP international summit in Makati City, which was attended by around 400 participants composed of professionals in the private and public sectors, local and foreign industry players, including the media.
Vikrant Khan, principal of Tholons, made the $48-billion revenue projection in 2020 based on the industry’s compound annual growth rate (CAGR) of nine to 12 percent since 2004 to 2014.
Tholons is a services globalization and investment advisory firm with offices in North America, South America, India, Philippines, Sri Lanka, and England.
“I am not projecting it’s going to be $48 billion by 2020, but Tholons said if we will apply the same growth rates we’ve been having since 2004 to 2014 and project it forward, it’s going to come out at $48 billion by 2020,” Mercado said.
Mercado said he now plans for IBPAP and the government to meet again in the near future and work on with the 2020 roadmap for IT-BPM.
Aside from achieving the 1 million new employees in IBPAP’s 2012 to 2016 IT-BPM roadmap, Mercado said he is confident that the industry’s $25-billion target revenues next year is still within reach. He said the industry’s revenues are now almost $19 billion across all of its sectors.
IBPAP reported the local IT-BPM industry’s CAGR has grown to almost 30 percent since 2004 and touted it as “one of the strongest drivers for the Philippine economy,” growing almost 13 times its scale in 10 years.
Mercado, however, suggests that that each sector should have its own roadmap.
“What we want to do now is to have the roadmap for healthcare, animation, voice, non-voice and others and the total of that will be the industry roadmap,” Mercado said.
“The development of each sector has specific requirements, they have so many changes. You now can’t make a generic roadmap for all. Now it’s like we’re having six or more industries.”
Recent reports revealed the total market size of the global business process outsourcing market is seen to surpass $300 billion this year.