Categories: Client News

Philippine IT-BPM industry grew 19% in 2012, adds over 137,000 jobs

<p style&equals;"text-align&colon; center&semi;"><em>Industry remains on track to hit 2016 targets of 1&period;3 million employees and US&dollar;25 billion in revenues<&sol;em><&sol;p>&NewLine;<p>&lpar;Cebu&comma; Philippines&comma; June 4&comma; 2013&rpar;&nbsp&semi;—&nbsp&semi;The Philippine information technology and business process management &lpar;IT-BPM&rpar; industry employed 776&comma;794 at the end of 2012&comma; adding 137&comma;066&nbsp&semi;net&nbsp&semi;new jobs&period; Employment grew by 21 percent from 2011&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;This number keeps us on target to reach 1&period;3 million in employment by 2016&comma;” reported Jomari Mercado&comma; president and CEO of the Information Technology and Business Process Association of the Philippines &lpar;IBPAP&rpar;&period; Mercado made this announcement during the Cebu ICT and BPO Conference at the Radisson Blu Hotel in Cebu City&period;<&excl;--more--><&sol;p>&NewLine;<p>Mercado also reported that in 2012&comma; the industry earned about US&dollar;13&period;2 billion in export revenues for the country&comma; a growth of 19 percent&period; This is well within the level required to keep the industry on track to hit its accelerated revenue target of US&dollar;25 billion by 2016&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;To reach our 2016 targets&comma; we reiterate that it is imperative that we sustain and strengthen the work we are doing with government&comma;” said Mercado&period; &OpenCurlyDoubleQuote;We have received impressive support from President Aquino and his teams in the executive branch and we were able to pass key legislation needed by the industry&period;”<&sol;p>&NewLine;<p>IBPAP works closely with DOST-ICTO&comma; TESDA&comma; CHED&comma; DepEd&comma; DTI&comma; BOI&comma; PEZA&comma; DOLE&comma; both Houses of Congress&comma; LGUs&comma; and other government agencies&period;<&sol;p>&NewLine;<p>Data reported by IBPAP and its partner associations show that the healthcare information management &lpar;HIM&rpar; sector had the largest increase in employment&period; The Healthcare Information Management Outsourcing Association of the Philippines &lpar;HIMOAP&rpar;&comma; led by president&nbsp&semi;Juanloz&nbsp&semi;Botor&comma; reported employment of 45&comma;000 in the sector or 80 percent more employees in 2012&period; HIM revenues also increased rapidly to US&dollar;460 million or 66 percent growth&comma; second only to the emerging sector of game development&period;<&sol;p>&NewLine;<p>Game Developers Association of the Philippines&nbsp&semi;&lpar;GDAP&rpar;&nbsp&semi;president Alvin Juban reported that the sector increased more than three times in terms of revenues from US&dollar;14 million in 2011 to US&dollar;50 million in 2012&period; An additional 1&comma;000 game developers joined its workforce in 2012 to bring the sector’s employment to 3&comma;500&period;<&sol;p>&NewLine;<p>The Contact Center Association of the Philippines&nbsp&semi;&lpar;CCAP&rpar;&comma; led by Benedict Hernandez&comma; reported that the sector’s employment grew by 19 percent&comma; with 81&comma;000&nbsp&semi;net&nbsp&semi;new jobs in 2012&period; Philippine contact centers&nbsp&semi;ended last year&nbsp&semi;with 497&comma;000 employees&period; Revenues also grew at a healthy clip of 18 percent&comma; earning US&dollar;8&period;7 billion in revenues in 2012&period; The Philippine contact center sector is still the largest in the world and remains the destination of choice for customer relations management&period;<&sol;p>&NewLine;<p>The Philippine Software Industry Association&nbsp&semi;&lpar;PSIA&rpar;&comma; which celebrates its 25th anniversary this year&comma; is pushing for greater awareness of the Philippines’ capabilities in software development and IT outsourcing&period; Its efforts in 2012 resulted in increased productivity as revenues grew faster at 17 percent than employment &lpar;14 percent&rpar;&period; In 2012&comma; the sector earned US&dollar;1&period;16 billion in revenues and employed 57&comma;078&comma; reported PSIA president Nora Terrado&period;<&sol;p>&NewLine;<p>The animation and engineering services outsourcing &lpar;ESO&rpar; sectors reported recovery from negative and low growth rates in 2011&period; Engineering grew by 20 percent in 2012 in both employment and revenues&comma; up from the 5 percent in the previous year&period; By end 2012&comma; there were 10&comma;836 employed in ESO producing US&dollar;206 million in revenues&period; Animation Council of the Philippines Inc&period;&nbsp&semi;&lpar;ACPI&rpar;&nbsp&semi;president Benjamin Marasigan Jr&period; reported that animation has recovered from negative revenue growth in 2011 to a positive 3 percent growth in 2012 and from flat growth in employment in 2011 to 4 percent growth in 2012&period; There were 9&comma;000 employees who worked in animation studios who helped the sector earn US&dollar;132 million in 2012&period;<&sol;p>&NewLine;<p>IBPAP Senior Executive Director Gillian Virata reported that corporate services&comma; which includes knowledge process outsourcing and back-office services&comma; grew 20 percent for both employment and revenues&period; There were 154&comma;380 employees in the sector&nbsp&semi;that earned US&dollar;2&period;5 billion in revenues in 2012&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;This non-voice&nbsp&semi;corporate services&nbsp&semi;sector&comma;&nbsp&semi;which includes global in-house centers&comma; now makes up 20 percent of total employment in the country’s IT-BPM industry and 19 percent of revenues&comma; second only to the leading voice BPM sector which still commands two-thirds of the total Philippine IT-BPM industry&comma;” said Virata&period;<&sol;p>&NewLine;<p><strong>About the Information Technology and Business Process Association of the Philippines &lpar;IBPAP&rpar;<&sol;strong><br &sol;>&NewLine;The Information Technology and Business Process Association of the Philippines &lpar;IBPAP&rpar; is the enabling association for the&nbsp&semi;information&nbsp&semi;technology and business process management &lpar;IT-BPM&rpar; industry in the Philippines&period; IBPAP serves as the one-stop information and advocacy gateway for the industry&period; With approximately 300 industry and support-industry members&comma; including five associations—the Animation Council of the Philippines&comma; Inc&period;&comma; Contact Center Association of the Philippines&comma; Game Developers Association of the Philippines&comma; Healthcare Information Management Outsourcing Association of the Philippines&comma; and Philippine Software Industry Association—IBPAP plays a pivotal role in sustaining rapid growth of the IT-BPM industry by working to ensure an enduring supply of high-quality labor&comma; supporting service innovation&comma; and providing country visibility&period;<&sol;p>&NewLine;<p>IBPAP assists investors in setting up operations easily and quickly in the Philippines&period; Relevant research&comma; introductions to key government and industry officials&comma; and a series of briefings at each step of the investment process ensure a seamless development process&period; On-going support is provided through a wide variety of initiatives&comma; including programs for HR development&comma; business development&comma; and on-going knowledge sharing and networking opportunities&period;<&sol;p>&NewLine;

J Darell Sapin

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