IT-BPM sector to miss revenue growth target

MANILA, Philippines — The country’s information technology business process management (IT-BPM) industry is unlikely to hit its projected revenue growth goal due to the pandemic. It is set to release results of the review of its targets later this month.

“Most of the leadership we reached out to believe that the industry will not be growing at the earlier projected growth rates between 3.5 percent to 7.5 percent in revenue due to the impact of the pandemic and global contraction in demand,” Information Technology - Business Process Association of the Philippines (IBPAP) president and chief executive officer Rey Untal said during the 12th International Innovation Summit (IIS).

Despite this, he said the labor requirements in the IT-BPM industry remained stable.

In November last year, the IBPAP said the industry’s revenues are projected to grow 3.5 percent to 7.5 percent starting this year to hit $29 billion up to $32 billion by 2022.

In terms of headcount, the number of IT-BPM workers is projected to increase by three percent to seven percent to reach 1.42 million up to 1.57 million by 2022.

These targets are lower than the projections under the IT-BPM roadmap launched in 2016 as the industry saw the need to revisit the goals given challenges in terms of regulatory changes, talent shortage, digitalization and automation.

Under the roadmap released in 2016, the IT-BPM sector was aiming to grow revenues by nine percent annually, and to increase headcount by eight percent per year to generate $38.9 billion worth of revenues and have 1.8 million direct employees by 2022.

Last year, the country’s IT-BPM industry generated $26.3 billion worth of revenues and employed 1.3 million.

Untal said the targets are being reviewed again to take into account the impact of the pandemic and to have a clearer view of the industry in the coming years.

The results of the review would be presented on the fifth day of the IIS or on Nov.19.

While the IT-BPM industry was allowed to continue operations when the government imposed a lockdown in March, the sector incurred extraordinary unplanned costs to implement health protocols and ensure the safety and welfare of employees. It also had missed opportunities.