THE information technology-business process management (IT-BPM) industry is realigning its strategies to adopt to the impact of the new coronavirus 2019 disease (COVID-19) on the operations of the country’s largest service export segment.
Rey Untal, president and chief executive officer of the Information Technology Business Processing Association (IBPAP), in a statement, cited the need to rebalance, reshape, and re-solution the future of the IT-BPM industry to ensure the Philippines will continue to be a relevant player in the global marketplace.
Untal told ANC in an interview the Philippines can see an opportunity to increase demand as a premium location, judging from the way it responds to the pandemic.
This observation is shared by Oxford Business Group (OBG which quoted Beng Coronel, president of Pointwest, as saying that “now is the time to prepare, in terms of capability building and developing the services that will be needed moving forward.
“More than ever, cost will become a major factor in any decision that a business leader makes, and this is where our country can have an advantage: innovation at competitive cost,” Coronel said in the OBG report.
While initially unprepared to switch to unconventional remote work schemes, the IT-BPM will see the widespread adoption of new practices that were, to a certain degree, underutilized prior to the COVID-19 pandemic, the IBPAP said.
These include the extensive use of tools like Zoom, Microsoft Teams, Hangouts, and Webex.
“We anticipate more businesses and employers initiating and implementing blended work-from-home and on-site operations,” said Untal.
While a slowdown in US consumer activity is likely to have a negative impact on the Philippines’ BPO sector in the short term, OBG said the country can look towards building competitive advantages beyond English-language proficiency and customer service skills to position itself for the next wave of growth in the global BPO industry.
OBG said Coronel cited that global demand for health services and home entertainment would grow faster than previously predicted in the wake of COVID-19 pandemic.
Health care, gaming and animation had earlier been identified as emerging growth sectors by the IBPAP in its roadmap.
“We see intelligent processing automation and analytics as the next drivers for growth,” Coronel told OBG.
At the start of the lockdown in mid-March BPOs saw a surge in activity for operators with related contact centers in the Philippines due to the slew of flight cancellations, e-commerce orders and financial service inquiries.
However, BPOs are bracing for a slowdown as a significant proportion of the work undertaken in the country are imported from the US, which is currently suffering from the world’s highest number of COVID-19 infections and record jobless claims.
“This highlights the need for the further diversification of BPO clients and activities to hedge against future disruption,” OBG said in the report.
The IT-BPM industry employs around 1.3 million workers and contributes approximately 9 percent to GDP when its indirect and induced multiplier impacts are factored in.
