The Department of Trade and Industry (DTI) remains bullish of the service exports sector despite the scaled down targets of the information technology-business process management (IT-BPM) industry.
The IT-BPM sector accounts for 35 percent of service exports abd contributes about 9 percent of services GDP.
DTI Secretary Ramon Lopez does not see the need to revise service exports forecast saying other services are growing as well such as telecommunication, transportation and finance.
“We have strong service sector even if IT-BPM has slashed its target,” Lopez said, adding the industry will continue to grow.
“We have a natural attractiveness and strength in (IT-BPM) sector, their performance in servicing other markets … we are still bullish on the sector,” he added.
The IT-BPM industry is forecast to grow between 3 and 7 percent annually this year to 2022, with revenues are seen hitting $29 billion to $32 billion amid global and local headwinds.
This is much slower than the earlier projection of 9.2 percent annual growth in the 2017-2022 roadmap and the $38.9 billion revenues projected originally.
Everest said job generation will be lesser, by an average of 90,000 to 95,000 per year from 100,000 as earlier projected, ending 2022 with 1.4 million to 1.57 million in headcount that year from 1.8 million in the original roadmap.
The Philippine Export Development Plan projects the services to post an 11.78-13.99 percent between 2018 and 2022 $61 billion to $68.6 billion from $31.2 billion in 2016.