The Philippines is currently undergoing a slow growth in the Information Technology and Business Process Management (IT-BPM) industry compared to the previous projections on the industry. The current projection, which is a revenue compound annual growth rate (CAGR) projection of 3.5-7.5% or $29-32 billion for 2020-2022, is lesser than 2016’s projection of 9%.
On the other hand, the employment CAGR for the same time frame only reached 3-7% to 1.42-1.57 million full-time employees, which is lower than the previously projected 8%.
According to the Information Technology and Business Process Association of the Philippines (IBPAP), will “pause” and reevaluate its roadmap.
“[W]e deemed it necessary to take a pause, revisit our industry projections and reassess how exactly we will move forward. And so, after several analyses, we commissioned the Everest Group to undertake our recalibration exercise,” IBPAP President and Chief Executive Officer Ray C. Untal said during the 11th International Innovation Summit held last month as reported by BusinessWorld.
Despite the slow pace, signs are popping up that the country is fighting and turning the tides. Currently, there’s a projection of 5.2% for revenue growth this year — it’s lower than 2018’s projection of 6% but higher than 2017’s 2% projection. As for employment growth in the same year. It’s seen to reach 4.7%, which is lower than 2018’s 5.1% projection but higher than 2017’s 2% projection.
The study conducted by Everest Group, which targetted global and local factors, such as Brexit and changes in business models around the world, revealed that healthcare, animation, and game development, among others are seen to grow more than the IT-BPM industry.
“The study gave us a lot of insights and, from that, it is clear that we need to take both strategic and sustained actions in specific areas to achieve the maximum Philippine growth potential for the IT-BPM sector,” Mr. Untal said via BusinessWorld.
The IT-BPM industry is one of the key drivers in the Philippine economy. Despite the challenges along the way, the Philippines continuously adapted to changes in the industry in terms of technology and management. So far, some companies are already changing their business models, tuning it with the current trends and strategies.
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