IT-BPO industry (Part II)

I have received several phone calls drawing my attention to a serious typo in my column regarding the economic footprint of the IT-BPO industry.  Allow me to repeat the second paragraph of my column: “How things have changed.  Just over a decade later, we’ve seen the exponential growth of this sector, making it one of the chief economic drivers in this country, currently employing 770,000 people with total revenue expected to reach $16 billion (not $6 billion) Today, the Philippines is the world’s leading call center destination, beating out India, while Manila was just named the world’s 3rd top BPO destination, according to Tholon’s 2013 survey.”

May I also take this opportunity to provide further information relative to BPO.  The Information Technology and Business Process Association of the Philippines (IT-BPAP) also pointed out that the direct employees are expected to exceed 900,000 and export revenues, (as I just stated) will reach $16 billion by the end of this year. They also further elaborated that the industry’s value added to the economy is very high since the industry does not require significant imports, unlike the electronics industry. From 2006 to 2012, the CAGR (compound annual growth rate) of IT-BPO was 25 percent. IT-BPO market as percentage of global offshore services market, in revenue terms was 9.5 percent in 2011.

 The breakdown of 2012 performance by type is shown in this chart. 

IT-BPAP Official 2012 Performance

*FTE: Full-Time Equivalent

Forewarned is forearmed

Watching Bloomberg TV, I learned of the recent devaluation of the Indian rupee to 64 versus the US dollar compared to our rate of P43.50 to $1. That means the rupee is 40 percent cheaper. Two years ago, India and the Philippines were at both 46 to $1. This recent development will have serious impact on our competitiveness. This development will inevitably cause industry players to significantly slow down their growth plans.  Favorable passage of Senate Bill 57, although well intentioned, will place industry competitiveness in even more serious jeopardy.  

IT-BPAP should seriously consider inviting Senate members for an executive briefing and tour of BPO locations. Dialogue can be mutually beneficial.

BIR, information technology and Makati restaurants

As a rookie IBM marketing representative, I was assigned to cover the BIR, one of the first users of computers.  I considered it a great honor until I realized that the more senior reps were making me the butt of their jokes. This assignment was considered a lesson in futility. Apparently, despite the commitment and sincerity of the computer staff, the examiners and their managers were determined to make the system fail. No matter how I tried to convince the senior officials to make use of the meaningful reports, no appropriate action was taken.

In today’s newspapers, I read a BIR listing of the top 50 taxpaying restaurants versus the top 50 highly rated restaurants in Makati which took note of the discrepancy between the two listings. Earlier I also wrote about the President’s speech before the FFCCCI when he cited the taxpaying habits of their members. This would not have been possible without the use of information technology.  The BIR is using the computer the right way unlike their predecessors years ago. The “name and shame approach” is made a lot easier with the use of analytic software. However, it may not necessarily be good public relations. I believe this software is also being more productively utilized by catching the big tax evaders and at the same time ensuring that the BIR staff is efficient and honest.  

Top restaurants

The BIR listing of the top 50 favorites relied on “Trip Advisor” but I have my own favorites. My only expertise is the width of my girth. Here are my recommendations.  

Continental: Tivoli (Mandarin Hotel), Old Manila (Peninsula Hotel), Sala, Masseto (great wine selection), Maria Luisa Gardens (Makati Garden Club) and Champêtre. American: Stockton Place (reservations a must) and Apartment 1B (comfort food). Chinese: Shang Palace (Shangri La Hotel).  Japanese: Tsukiji and Inagiku (Shangri La Hotel). Vietnamese: La Petite Camille (Greenbelt 5); Thai: Celadon (Rockwell) and People’s Palace; Spanish: La Tienda (old, tattered but dependable with no pretenses). Italian: call Margarita Fores. Filipino: Romulo Café on Jupiter Street (only Pinoy restaurant with quality food and ambience) and Milky Way. There are many other Pinoy restaurants with excellent food but noise pollution is terrible. In the future, I will give you other recommendations.    

Enjoy!!!