Outsourcing revenues seen to reach $16 B

MANILA, Philippines - The Information Technology Business Processing Association of the Philippines (IBPAP) expects to exceed its revenue and employment targets this year as more companies from overseas prefer the Philippines as the location for outsourcing operations.

In a press conference held during the 5th International Outsourcing Summit yesterday, IBPAP president Jose Mari Mercado said the group expects revenues to reach $16 billion this year, 21 percent higher than the $13.2 billion last year.

The projection, he said, is above its target of 19 percent growth or revenues worth $15.7 billion.

He said the group also expects to go above the employment target of 925,000 or up 19 percent from last year’s 777,000, with the total information technology business process management (IT-BPM) workforce seen to reach 960,000 by the end of the year.

“These are the numbers we are seeing,” he said.

The group expects to exceed its targets as the country remains to be the preferred destination for voice as well as non-voice services.

IBPAP chairman Danilo Sebastian Reyes said the country is now well-positioned to serve the requirements of companies across different geographies.

“There is really pinpointed request for Philippines not just for voice but for higher value non-voice services. I think we have been quite successful in marketing the Philippines as providing full service,” he said.

“Many companies see the capacity of Filipino workers to service their requirements,” he added.

The group does not see the US shutdown affecting the revenues and employment to be generated by the industry this year.

“It is too early to assess. In my view, I think the shutdown will be resolved soon so as a result there will no impact to the industry,” Mercado said.

This, even as 70 percent of the IT-BPM industry’s revenues last year were accounted for by the US market.

Reyes said the IT-BPM industry has been looking for new markets.

In the same event, Department of Science and Technology (DOST) Information and Communications Technology Office deputy executive director Monchito Ibrahim said the country is on track to achieve the $25 billion revenue target and 1.3 million employees goal by 2016.

“What’s more challenging is the new target given by the President,” he said.

He noted that President Aquino who wants the country to achieve inclusive economic growth, has given the IT-BPM industry a target of increasing the workforce count in the provinces to account for 40 percent of operations, and have 60 percent remain in Metro Manila by 2016.

Currently, 73 percent of IT-BPM workers are in Metro Manila while the balance is accounted for by the provinces.

He also said that as part of preparations for the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) to be established by 2015, the Philippines would like to work with other members to market the region an IT-BPM hub.

Mercado said the IBPAP is working on a road map to promote the ASEAN as an IT hub with other countries in the region.

“Even if we will be marketing the region, we are confident because of our track record of being number one in voice and being a reliable provider of service,” he said.