IT is considered as the lifesaver of the Philippine economy, bringing in billions of dollars in investment and revenue, and also helping create thousands of jobs for newly graduating Filipinos.
And now more good tidings come on the back of news that the rapid expansion of the Information Technology and business process outsourcing industry (IT-BPO) in the Philippines has surpassed even the most optimistic forecasts, because of the exemplary public-private partnership (PPP) this key sector demonstrated.
The Business Processing Association of the Philippines (BPAP) in its most recent report released data about the local IT-BPO sector’s outstanding performance in 2011—and its makes impressive reading indeed.
With a total of $11 billion in revenue (an increase of 24 percent on the previous year) and 638,000 call center employees (an increase of 22 percent than in 2010), the industry is far surpassing its projected 20-percent annual growth rate.
At these rates, according to the BPAP, the IT-BPO industry in the Philippines will bring in a staggering $25 billion a year by 2016, making up 9 percent of the Philippine’s GDP, 10 percent of the sector’s global market share and employing 1.3 million Filipinos.
Adding his own praise to the phenomenal and highly visible progress made in the BPO industry, Sen. Edgardo Angara, vice chair of the Senate Finance Committee commented, “In such a short time, the IT-BPO industry has become one of the biggest job-creators in the country. In the past decade, the sector has grown exponentially in terms of workforce and income generation, from a fledgling subsector of the service industry to a multibillion dollar earner.”
The next step, according to Angara, is to ensure the continued progress of the industry through combined efforts from the government and private sector.
“The success of this industry in our country is a perfect example of how the private sector and the concerned government agencies can work together and share their resources towards a common goal. Because of this united effort, the Philippines is now a close second to India as the world’s largest BPO provider,” said the veteran lawmaker.
Just this year alone, several grants and subsidies have been given by the different agencies and institutions, all earmarked for educational and technical development of the BPO sector.
Among them is a grant of $650,000 (P27.3 million) given by the Asian Development Bank in technical assistance for educational programs for skills enhancement in the BPO sector.
Furthermore, a P450-million subsidy has been given by the Technical Education and Skills Development Authority for training, while the Information and Communication Technology Office under the Department of Science and Technology has allocated P350 million to support the IT-BPO industry.
State universities around the country have also been granted a combined budget of P125 million to fund their various IT-PBO based programs.
“We must maintain our country’s foothold in this booming global industry,” said Angara, a former president of the University of the Philippines.
He added, “IT-BPO might very well be the spark that sets off the Philippines’ economic boom.”