IBPAP fronts imperatives amid lowered 2022 IT-BPM targets

When the lockdown was declared in March 2020, it is no stranger that the IT and business process management (IT-BPM) sector remained operational and productive, despite the different restrictions. As businesses opted to close up shop following losses from the prolonged quarantine period, many are left curious about the fate of the country’s second major economic driver.

As the sector has been on an upward trajectory for the past 11 years since the end of the Asian Financial Crisis, it isn’t surprising that IT-BPM would take a significant hit. What is worth noting is how much the IT and Business Process Association of the Philippines (IBPAP) welcomes flat growth when other industries are foreseeing a deeper nosedive.

“I consider that good news in consideration of the fact that if we look at GDP (gross domestic product) in the Philippines, we will likely end the year down 7-8%. For this industry to be reporting flat growth, is again great,” said IBPAP President and CEO Rey Untal.

Thus, a recalibration study of the industry’s targets was initiated back in October. The findings of the said study indicated the following growth number by 2022: Headcount growth at 2.7 percent to 5 percent or around 1.37 million to 1.43 million full-time employees; and industry revenues amounting to USD 27.88 billion to USD 29.09 billion with a Compound Annual Growth Rate (CAGR) of 3.2 percent to 5.5 percent.

“While these new figures stand as the Philippine IT-BPM industry’s goal for 2022, it is equally important to know how we will be achieving them. The recalibration study also provided us with imperatives we and our stakeholders must undertake, not only to fulfill these targets, but to strengthen our sector locally and globally,” said IBPAP President and CEO Rey Untal.

The challenges that contributed to the lowered industry figures include pressure on cost structures, geopolitical changes, increased focus on Business Continuity Plans (BCP), and urgency for automation and digital transformation.

The findings of the recalibration also provided necessary imperatives that the industry needs to pursue to fulfill the new numbers in the next two years. These imperatives are:

Strengthened telecom infrastructure to better support long-term remote work.
Accelerated investment in talent development programs, especially for next-generation skills.
Stronger pivot to digitally supplemented services by rapidly accelerating investments in digital and cybersecurity initiatives.
Tap countryside potential by accelerating talent and infrastructure development outside Metro Manila.
Improved local industry’s position in the global market by enhancing focus on resilience, increased commitment from players and government, and ability to deliver complex services.
Improved ease of doing business by enhancing and strengthening government support to offer a business-friendly environment.

“As we share our renewed vision for 2022, we want to highlight the importance of strengthened collaborations among our stakeholders in the private sector, government, and the academe. This is to help the sector continuously pivot and thrive so we can all unleash opportunities and break new ground to strengthen our position as one of the top investment destinations in the world,” concluded Untal.

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