Phl IT-BPM industry poised to gain US$16 B in 2013

MANILA, Philippines -- Posting strong revenue growth in 2012, the IT-BPM the Philippine information technology and business process management (IT-BPM) and global in-house center (GIC) industry is expected to generate US$16 billion in revenues by the end of this year.

This, as new service areas and opportunities emerge in the global outsourcing market, according to the Information Technology and Business Process Association of the Philippines (IBPAP).

Jomari Mercado, incoming president and CEO of IBPAP, said the IT-BPM and GIC industry is serious about maintaining its leadership in an environment in which competing global players are eyeing a larger stake in the expanding outsourcing market.

“Together with our stakeholders and partners, IBPAP will ensure that the Philippines will remain the preferred destination for voice and also for non-voice, complex BPM services," Mercado said.

To discuss the industry’s prospects for 2013, IBPAP and Outsource2Philippines (O2P) are organizing the first CEO briefing of the year entitled “Taking Care of Business: 2013 IT-BPM Industry Outlook” on March 19, 2013, at the Makati Shangri-La.

Budget Secretary Florencio “Butch” Abad will deliver his keynote address before industry leaders, stakeholders, and partners.

Emerging markets will continue to drive global growth, according to a survey of global executives, increasing demand for a wide range of outsourcing sectors.

The McKinsey economic conditions survey published in December 2012 found that “executives broadly believe that demand for their companies’ products or services—as well as their companies’ profits—will increase in the next six months, despite their concern about sluggish global and domestic demand. They also predict that emerging markets will continue to drive global growth.”

As the fastest-growing industry in the Philippines, the IT-BPM and GIC industry is forecast to generate revenues of US$25 billion by 2016, provide direct employment to 1.3 million Filipinos, and support 3.2 million indirect jobs.

Still, the industry continues to explore ways to capitalize on its vast economic potential and to bring the fruits of these opportunities to as many Filipinos as possible.

The industry continues to expand and is on track to achieving the goals in an industry road map. In 2012, for example, health care outsourcing generated US$430 million in revenues, a step closer to its target of US$1 billion for 2016. In the same way, KPO and game development are also expected to post high double-digit growth from 2011 levels of US$2 billion and US$12 million, respectively. Voice BPO likewise posted impressive 21 percent growth in 2012, hitting US$8.6 billion in revenues.

The briefing is expected to provide executive insights into supporting sustained business expansion.

The results of an exclusive industry survey providing executives’ perspectives will also be presented during the briefing.

“IBPAP is undertaking necessary efforts to achieve our targets in Road Map 2016. Through this briefing, we hope to establish a more open and interactive discussion with the various stakeholders of the IT-BPM and GIC industry,” Mercado said.

Among the speakers in the scheduled CEO briefing are Benedict Hernandez, incoming chairman of the IBPAP Executive Committee; Romeo Bernardo, managing director, RL Bernardo and Associates/Lazaro Bernardo Tiu & Associates, Inc.; Rainerio Borja, president and country head, Expert Global Solutions (EGS) Philippines and IBPAP treasurer; Alfredo Ayala, managing director and CEO, Ayala Corporation/LiveIt Solutions and IBPAP chairman emeritus; Genny Marcial, executive director for external affairs, IBPAP; and Gillian Virata, senior executive director, IBPAP.  

A panel of association heads will feature Grace Dimaranan, president, Animation Council of the Philippines, Inc. (ACPI); Jojo Uligan, executive director, Contact Center Association of the Philippines (CCAP); Alvin Juban, president, Game Developers Association of the Philippines (GDAP); Juanloz Botor, president, Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP); and Nora Terrado, president, Philippine Software Industry Association (PSIA). They will present their respective sectors’ outlook for the year.