IT-BPM sectors cut targets

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Sectors making up the information technology and business process management (IT-BPM) industry have downscaled their growth forecasts to reflect recent developments such as  that range from automation, lack of available talent to regulations.

The IT and Business Process Association of the Philippines (IBPAP) under the recalibrated growth figures of the Roadmap 2022 expects to generate revenues around $29 billion to $32 billion while full-time employees will increase to about 1.42 million to 1.57 million.

IBPAP in consultation with Everest Group said the compound annual growth rate (CAGR) in revenues is 3.5 percent to 7.5 percent between 2019 and 2022.

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That is slower than the 9.2 percent set under the original roadmap prepared by Frost & Sullivan.

Target revenue in absolute amount by 2022 is also much smaller than the $38.9 billion set in the first roadmap.

By headcount, the 2022 estimate is lower than the 1.8 million projected earlier.

The growth ranges of each industry vertical for 2019 to 2022 in terms of revenues have been downscaled.

Contact centers and business processing see CAGR in revenues of 3.3 percent to 7.4 percent, slower than the 8.2 percent set earlier.

IT and software is seen to grow 3.2 percent to 6.7 percent CAGR, also slower than the 11.4 percent than originally forecast; global in-house centers are projected to grow their revenues by 3.2 percent to 5.2 percent, a tempered range from 8.4 percent.

The healthcare information management (HIM) is seen to grow at 7.3 percent to 10.8 percent, down from 13 percent in the original forecast.

Animation and game development will grow at 7.3 percent to 12.3 percent.

As for headcount and full-time employees, growth figures for 2019 to 2022 are as follows: contact centers and business processing is at 2.8 percent to 6.7 percent; IT and software, 2.7 percent to 6.2 percent; GICs, 2.7 percent to 4.7 percent; HIM, 6.8 percent to 10.2 percent; and animation and game development, 6.8 percent to 11.7 percent.

While contact center and business processing, GICs and IT and software remain as the biggest subsectors, the recalibration highlights that HIM, and animation and game development will grow at a faster rate than the overall IT-BPM industry.

IBPAP cited as priority areas the need for Filipino talent to pivot to higher-value services through a strategic, scalable, and sustainable talent upskilling and reskilling program.

The group said there is a need to promote talent and infrastructure development within and outside Metro Manila but that this also requires ease of doing business and more support to the broader IT-BPM ecosystem.

The group also called on the need for Philippine IT-BPM branding to keep up with the rest of Asean and to attract more investors and locators.

IBPAP has identified the pending reforms on incentives, shortage of skilled talent as well as technology as among the challenges besetting the industry.

“The future of the sector remains clear when it comes to securing its continued growth.

Following the action plans that we presented during the Summit, IBPAP has already initiated talks with different stakeholders of the industry to ensure that we have more cohesive, effective, and impactful initiatives for the coming years. This will not only help us achieve our subsector and overall IT-BPM targets, it will also help in propelling the Philippines in the global IT-BPM marketplace,” said Rey Untal, IBPAP president and chief executive officer.

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