Another incredible Weekly with John Clements session! And this time with Information Technology and Business Process Management (IT-BPM) industry stalwarts – Jack Madrid, President & CEO – IBPAP; Joseph Paperman, Head of Operations at Capital One Philippines; and Rafael de Mesa, First Vice President of Aboitiz InfraCapital. This session was moderated by our very own Carol Dominguez, President and CEO of John Clements, and hosted by Mario Biscocho, SVP and MD of John Clements.
What is the Growth of the IT-BPM Industry?
As we well know, the IT-BPM industry is an indispensable pillar of the Philippine economy, offering jobs to thousands of aspiring Filipinos. There is a plan to create 1 million more jobs in the next 6 years, something that took a few decades in the past. Obviously, it isn’t an easy task, but with the commitment of former stakeholders, partners in government, the private sector, and all the investors who have offshored their business to the Philippines, it is an achievable target.
The IT-BPM industry has steadily grown in the last 12 years- natural disasters and a global pandemic notwithstanding. In fact, in the last 3 years through COVID, the industry was able to provide 255,000 new jobs to Filipinos- ending 2022 with 1.55 million jobs. A surprising number of new jobs are moving to the countryside, with ‘work from anywhere’ becoming a new reality. According to the IT and Business Process Association of the Philippines (IBPAP), the IT-BPM industry is on track to hit its target of P2 trillion ($35.4 billion) by the end of 2023.
How Big is the IT-BPM Industry?
The Philippines is a world capital for customer experience and second only to India in the BPO space. Some of the world’s biggest brands are here. The industry is the largest private sector employer and a major contributor to nation building and indirect job creation. For every job in the industry, 2.5 additional jobs are created in real estate, administration, hospitality, retail, and other industries- no longer based only in Manila but now spread across the country in smaller towns and cities. IT-BPM is also the second largest source of foreign exchange in the country.
However, some challenges remain.
What are the Challenges to the IT-BPM Industry?
With the demand for more jobs, talent supply is one of the bigger hurdles. If the vision to grow to 2.5 million FTEs with $59 billion annual revenue is to be achieved, existing talent will have to be re-skilled and up skilled. We have to be more inclusive and diverse in our hiring practices. With the convenience of work from home, the differently abled can be hired.
The aim is to transform the Philippines into the #1 experience destination with high complexity category jobs, and create impact by driving holistic and inclusive economic and social growth and accelerating the ESG agenda. Currently at 7.5% GDP, if the target is achieved, then the industry will be at 9% GDP. The country can boast in being one of the few places with more women than men in the workforce. And of course, if we achieve 1 million jobs, then 2.5 million additional jobs will also be created.
The next challenge is the higher risk perception of the country. There are behavioral perceptions of the country that come from lack of awareness and experience. At Capital One, cyber security was considered a big risk because of the confidential data at hand. However, data shows that there are more bad actors in the US than there are in the Philippines, proving what we know about Filipinos. These perceptions of the country need to change in order for us to grow and get ahead. Another perception risk is that the internet and power in the country are not reliable. Although the internet and power are not the best, we have come a long way in this regard.
The third pain point is lack of enabling infrastructure. More and more investments need to continue to be made in utilities and energy and cyber security. With jobs spreading outside of Metro Manila, there needs to be increased investment in telecommunications and the internet.
Can the IT-BPM Sustain its Growth?
If the industry continues to get support from its partners, Roadmap 2028 is not impossible. There is hope in becoming #1 in employment, customer experience, foreign exchange, skilled talent, world class infrastructure, and a world leader in the IT-BPM industry.
If you missed our talk on the IT-BPM industry, check out the recording here.
For up-to-the-minute information on our industry events,visit our Events page.
