The continued success of the local information technology and business process management (IT-BPM) industry has propelled the Philippine economy to great new heights in recent years and the trend is likely to continue in 2015.
The industry, which contributed 6.2% to the total gross domestic product (GDP) of the country last year, also played an important part in reducing unemployment in the Philippines. In September 2014, the IT-BPM industry reached an important landmark: direct employment generated by the industry surpassed one million.
?2014 has been a great year for the local IT-BPM industry,? said Paul Townsend, General Manager of the Capital One Philippine Support Services Corp. (COPSSC), the Philippine-based contact center facility of United States-based Capital One Financial Corporation.
?But 2015 promises to be a better year for the industry. Every indicator suggests that the industry and all stakeholders will benefit with the continued success of business process management here in the Philippines.?
Tholons, a leading full-service strategic advisory firm for global outsourcing and research, in its 2015 list of Top 100 Outsourcing Destinations in the world, places Metro Manila at a strong second, tailing India?s Bangalore. Cebu is ranked eighth while six other Philippine cities are identified in the top 100 cities named in the study.
Townsend says that the result of the study shows the unparalleled strength that the Philippines enjoys as an investment destination for companies from the United States and Europe as well as Australia and New Zealand.
The Philippines now hosts more than 1,100 global organizations in its shores,? Townsend added. ?With this number, current infrastructure, and government support, the Philippines is undoubtedly an emerging global leader in the IT-BPM industry.?
2015 is also a promising year for a growing segment of the local IT-BPM industry. Global in-house centers or GICs will be a significant contributor to the growth of the industry and the economy.
There are now more than 130 GICs in the Philippines with more than 65 belonging to the Fortune 1000 list, according to Tholons. This number is expected to grow as the Philippines becomes even more attractive to companies that want to bring in their business to the country.
In a presentation given during the sixth International IT-BPM Summit last October, Tholons said that the Philippines may enjoy a 15% to 18% growth in revenue between 2014 and 2016. Industry revenue is expected to rise to between $24.5 billion to $25.5 billion by 2016, while employment is expected to reach 1.3 million to 1.4 million in the same period.
With continued investment by the government in the IT-BPM space as well as continued investor interest in the Philippines, the country is poised to take 14% of the global share of IT-BPM. Even more compelling is the prospect for revenue to double by 2020, reaching almost $48 billion.
?The inroads to success have been laid,? Townsend said. ?We just need to fortify it and ensure that we meet these targets by keeping the industry on track. We must not lose sight of the end goal and that is to establish the Philippines as the undisputed leader in the IT-BPM industry.?