PEZA resumes IT zone approvals; call centers seek gov’t support

- Advertisement -

The Philippine Economic Zone Authority (PEZA) expects a surge in investment registrations as it starts processing applications for information technology (IT) centers in Metro Manila, according to officer-in-charge director-general Tereso Panga.

This developed as the Contact Center Association of the Philippines (CCAP) yesterday called for continued government support to ensure the IT and business process management (IT-BPM) industry could grow up to 10 percent  annually in export revenue and about 8 percent annually in additional jobs by 2028.

“There has been a decision on the moratorium (on the declaration of IT zones),” said Panga in a text message yesterday.

- Advertisement -

Panga expects the registration and approval of more IT zones in Metro Manila as early as in its next board meeting next month.

PEZA will then leave to the Office of the President (OP) the decision for these zones’ declaration.

Panga said PEZA believes Administrative Order (AO) 18  which imposed the ban and issued by the OP and signed by President Duterte  in  June 2019 has been superseded by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) that was signed into law in March 2021 and its implementing rules and regulations.

Panga explained in previous statements that “in the very provisions of CREATE, it already provides for the criteria in setting up an IT center in Metro Manila including listing the IT services as an eligible activity.”

IT parks are concentrated  in five business districts in Metro Manila namely Taguig, Makati, Quezon City, Pasig and Alabang  but there are nine others which have yet to host more of these centers.

More IT zones in Metro Manila will encourage more investments in IT-BPM, especially those that require onsite work.

These sites will be able to accommodate the increase in the uptake from 450,000 seats to 650,000 seats in the industry.

Meanwhile, in a statement yesterday, CCAP said it seeks sustained improvements in the ease of doing business and long-term program that will allow the industry to be more globally competitive.

“This includes clear policy on flexible work arrangements, strengthening of PEZA as true `one-stop-shop’ for administration, compliance, and reporting matters with respect to PEZA’s registered business entities,” CCAP said.

The group is also asking the education sector to continue producing STEM (Science, Technology, Engineering, and Mathematics) graduates who are digital-ready and appropriately skilled to join the growing IT-BPM industry.

CCAP also enjoined  the telecommunication, real estate and other partner industries to continue improving infrastructures for communications, connectivity, transportation, workplaces of the future that support the industry’s growth in the National Capital Region and multiple provincial locations.

CCAP is optimistic of the IT-BPM’s growth prospects saying these are aligned with the economic recovery goals set by President Ferdinand  Marcos Jr.

CCAP is confident that with the right support, it can attain the top end of its growth target range.

“There is a surge in global market demand, driving double digit growth prospects for Philippine IT-BPM. If we collectively support the industry to capitalize on this global demand, it can mean up to an additional 1.1 million more high value, high paying jobs for Filipinos over the next six years. This is clearly an exciting time for the industry,” said Benedict Hernandez, CCAP chairman.

Citing  data from global research firm Everest Group, the local IT-BPM industry’s headcount grew in 2021 by up to 10 percent  or over 120,000 jobs year-on-year–its strongest since 2016. The momentum is expected to be sustained in 2022.

In 2020, the industry still grew by up to 5 percent despite the onset of the ongoing global pandemic.

That growth translates to a $29.5 billion revenue in 2021 from $26.7 billion in 2020 and $26.3 billion in 2019. The industry’s annual revenue has been continuously growing strongly–from just $8.9 billion in 2010.  – Irma Isip

- Advertisement -spot_img

Author

- Advertisement -

Share post: