IBPAP lauds approval of hybrid work set-up

CEBU, Philippines —  The IT and Business Process Association of the Philippines (IBPAP) lauded the approval of hybrid work set up or work-from-home (WFH) in the country.

IBPAP president and chief executive officer (CEO) Jack Madrid said in a press statement that in behalf of the industry’s 1.44 million employees, the IT-BPM sector appreciates President Ferdinand “Bongbong” Marcos Jr.’s clear understanding and vision of how indispensable IT-BPM is to the economy.

Madrid described this gesture of the current government administration as a “major breakthrough” for continued jobs creation.

He added that the sector is equally heartened to have the support of the Fiscal Incentives Review Board (FIRB) composed of the Finance Secretary Benjamin Diokno, Trade Secretary Alfred Pascual, the Department of Budget and Management (DBM), and the National Economic and Development Authority (NEDA).

IBPAP has been voicing the industry’s support for work-from-home (WFH)/hybrid work since 2020. While it started out as an expedient measure in response to nationwide lockdowns, it very quickly ushered in a new era of work for the sector—reinforcing its agility and resilience and proving that the IT-BPM industry is an important pillar of the country’s economy.

“After two years of making a case for what the benefits of WFH/hybrid work are, it is great news that the FIRB will be facilitating a smooth paper transfer of the registration of IT-BPM enterprises from the Philippine Economic Zone Authority (PEZA) to the Board of Investments (BOI). This will not involve physically relocating their operations or giving up the incentives that they are currently enjoying. This is a wonderful outcome to IBPAP’s staunch advocacy for WFH/hybrid work, and we are extremely thankful to our partners in the government for listening to the sector and its employees in adapting to flexible work arrangements in the future of work,” explained Madrid.

The WFH/hybrid work set-up is a game-changer for the Philippines and the sustainability of the IT-BPM industry, and it will be a contributing factor to our ability to create 1.1 million new direct jobs for Filipinos, generate billions more in revenue, and significantly increase our countryside footprint by 2028, Madrid noted.

“We are also grateful to have had the constant assistance and guidance of PEZA and BOI throughout everything that has happened. We will continue to work with them and our other stakeholders to iron out the details and process of this paper transfer,” he added.

Despite economic headwinds, the Philippine IT-BPM industry posted 10 percent growth in revenues in 2021 fetching a total of US$29.49 billion.

Likewise, full-time employees (FTEs) in the country increased by 120,000 in 2021, bringing the sector’s total headcount to 1.44 million. 

“This double-digit growth validates what we had projected—that 2021 performance was beyond recovery; it marks a resurgence for the Philippine IT-BPM sector,” said Madrid adding that preserving jobs, driving investments, stimulating countryside development, and creating demand for real estate—these are the unequivocal contributions of the industry to nation-building.

According to Madrid, not only did the 2021 figures exceed the forecasted growth for the year, but it also eclipsed the recalibrated 2022 targets of 1.43 million FTEs and USD29.1 billion in revenues ahead of schedule. 

IBPAP noted that the upsurge can be attributed to (1) pent-up demand from global customers, (2) higher confidence in work-from-home (WFH) setups by clients in contact centers and business process services, and (3) growth in emerging sub-segments like e-commerce, fintech, healthcare, and technology.

More and more organizations in global business services (GBS) are also incorporating offshoring and outsourcing into their strategic initiatives to improve efficiencies and optimize costs in multiple geographies. 

“This will spill over into 2022 and continue to boost demand for IT-BPM services across the world. We should not miss out on this opportunity to capture a bigger slice of the global market,” Madrid emphasized.

The sustained growth of the sector will be defined by several factors. Further reliance on offshoring and outsourcing will be spurred by next-generation business models and assets, the talent and skills shortage, and competitive pricing models. Expansion across select horizontals and verticals and increased digital adoption by traditional players will also be key drivers of growth in 2022.

Moreover, Madrid said the future of the Philippine IT-BPM sector will be dependent on the country’s ability to take advantage of emerging trends and circumvent mounting threats on a global and local scale. A sustainable talent supply, predictable regulatory environment, and more enabling infrastructure are just some of the top considerations of potential investors and locators that the Philippines will have to nurture and support.