IT-BPO sector contributes P36.2B to Cebu economy

CEBU, Philippines – The Information Technology-Business Process Outsourcing (IT-BPO) sector has contributed an estimated P36.8 billion (year-to-date) to Cebu economy in form of wages to the over 120,000 employees in the industry.

Cebu Educational Development of Information Technology Foundation (Cedfit) said in a report that the amount of disposable income fueled Cebu’s economy making the industry as one of the province’s top growth drivers.

This growth, Cedfit said, is expected to increase further especially that the outsourcing sector is expanding their operations in Cebu, which is expected to translate to employment growth.

Cedfit executive director Jun Sa-a said although there are no new major IT-BPO investors opening in Cebu within the year, the over 200 existing companies that have implemented expansion were more than enough to boost the sector’s contribution to the economy.

Sa-a said Cebu is continuously fueled by the IT-BPO sector, despite the fact that other provinces are also building cyber parks and develop outsourcing manpower pool with hopes of getting a sizeable chunk of the market.

By year end, the IT-BPO sector hopes to hit the US$21 billion revenue mark, a six billion dollars more to catch up with the OFW remittance level of US$27 billion.

Ten percent of the sector's total revenue is contributed by the over 200 IT-BPO firms operating in Cebu, said Sa-a.

In the last 11 months of this year, the salary given to IT-BPO employees went directly to retail, food, rentals, transportation, real estate, tourism [travel], education, and other services. Growing chunk of workers however, are also learning to invest and save.

From the total revenue of the IT-BPO sector, about 40 percent goes to salary. Basing on the entry level of P15 thousand a month, this high-paying sector is considered as a fast growing economic booster for Cebu.

Last year, the sector only logged a little over 100,000 head count. By the end of 2015, it is expected to reach close to 130,000 workers.

Sa-a said the 14-year-old industry in Cebu has already matured, as attrition rate is significantly improving, and employees are already getting comfortable with the "unnatural" working-hour cycle.

Average age bracket working in the IT-BPO sector is between 23 to 25 years old. Most of them are heavy spenders of consumer goods and services, entertainment, as well as food.

Impressive consumer spending in Cebu is primarily led by IT-BPO workers, followed by other beneficiaries of the generally healthy Cebu economy in 2015. (FREEMAN)