Post on 01-Feb-2016
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Executive Summary
The information technology and business process management (IT-BPM)
and global in-house center (GIC) industry in the Philippines has grown at
an annual rate of 30 percent over a decade, faster than the growth of the
global offshore services market. As it has grown, the industry has
diversified significantly in breadth, scale, and maturity of services. An
ambitious forecast embodied in an industry road map of revenues of
US$25 billion and 1.3 million direct employees by 2016 appears to be
within reach.
If these targets are reached, the Philippine IT-BPM and GIC industry will
have consolidated over 10 percent of the global IT-BPM market. This
share will be maintained at least until 2016, when global market is
expected to be between US$240 billion and US$250 billion (Everest
Global estimate as of 2012).
Sources: IBPAP, Everest Group analysis (2011)
The industry’s contribution to economic development is centered
in Metro Manila and in other highly urbanized areas throughout
the country, or Next Wave CitiesTM
Sources: Everest Group and Outsource2Philippines (2012)
The Philippine IT-BPM industry has grown rapidly since 2006
Philippine IT-BPM and GIC Industry
Current State and Positioning
The IT-BPM and GIC industry in the Philippines
is characterized by the following:
• strong voice sector
• rapidly expanding non-voice sector
• complex services sectors
• large and talented English-speaking labor
pool
• strong affinity with Western culture and
business processes
Source: O2P-BPAP Periodic Survey (August 2012)
There is faster growth in non-voice,
complex services
Source: IBPAP (2012)
The Philippine IT-BPM workforce grew at an average
of 21 percent annually between 2007 and 2011
Sources: IBPAP data; IBPAP, Everest Group, and Outsource2Philippines analysis; World Bank and IMF projections
for GDP (2012)
The industry is projected to earn US$25 billion
in revenues and employ 1.3 million and 3.2 million
Filipinos directly and indirectly by 2016. At this
size, it could account for about 8 percent
of Philippine GDP
Sources: Commission on Higher Education; global industry data; Everest Group analysis (2011)
The Philippines has the third-largest annual graduate pool among
the world’s top IT-BPM service centers, after India and China, and
leading Poland, Mexico, Egypt, and Malaysia
Sources: IBPAP and Everest Group analysis (2010)
The Philippines is well-positioned among global IT-BPM services
providers in four key human resource indicators: scalability,
experienced talent pool, quality of English accent (and cultural affinity
with the US), and size of graduate pool
Higher scores imply greater competitiveness
*Established Metro areas are in bold
Sources: IBPAP; DOST-ICTO (2011)
The industry realizes that the next
wave of growth must necessarily
involve alternative locations, the best
of which are called the Next Wave
CitiesTM
Source: IBPAP (2012)
The Philippines is a
competitive destination for
the IT-BPM and GIC
industry because of its
scalable educated talent
pool, distinctive Filipino
workforce characteristics,
cost competitiveness,
excellent infrastructure,
government support and
public-private partnership,
and proven track record
Sources: Everest Group and Outsource2Philippines (2012)
The Philippines remains one of the most cost-competitive
locations in the world for voice
Sources: Industry data (2012), www.submarinecablemap.com
Telecom infrastructure is
available throughout the
archipelago
Source: O2P-BPAP
Periodic Survey
(August 2012)
Most IT-BPM and GIC executives view the Philippines as a less-risky
location for the provision of IT-BPM and GIC services
Global Market Role of the Philippines
Sources: Everest Group and Outsource2Philippines (2010)
As the market grows, the composition of the BPM market is expected
to evolve dramatically, with non-voice, complex services becoming the
fastest-developing segments
Source: Everest Group analysis (2011)
According to Everest,
the Philippines is a
mature location for
offshore IT-BPM
services
Sources: Everest Group and Outsource2Philippines (2011)
A wide range of IT-BPM and GIC services are currently
being delivered from the Philippines; diversification is
expected to intensify
Role of Information Technology
and Business Process Association
of the Philippines (IBPAP)
Achieving the US$25 billion goal requires IBPAP to drive
favorable outcomes across multiple areas, including:
• Addressing lack of human capital through public-
private partnerships
• Strengthening the Philippines’ attractiveness as an
investment destination
• Building and promoting the country brand
• Leading cross-sectoral efforts
• Introducing innovation
Areas where IBPAP
plays a role
Source: IBPAP (2011)
An integrated talent development approach with objectives that
progressively lead to expanding the talent pool and addressing the talent
supply gap are in place
Source: BPAP (2012)
Industry and
government are
working on a wide
range of talent
development
initiatives to ensure
the availability of
qualified applicants
Source: IBPAP (2011)
In 2013, ongoing
talent development
programs with be
enhanced and new
programs will
expand reach and
scale
Source: IBPAP (2012)
The industry’s marketing strategy will
involve multiple channels and activities
Sources: IBPAP and Everest Group (2012)
Ecosystem:
Government incentive
schemes have
resulted in returns
from corporate and
personal taxes
collected that are four
to five times the
amount of the
foregone taxes from
the incentives from
2005 to 2011
Next Steps
Sources: IBPAP, Everest Group, and Outsource2Philippines (2010–2012)
Initiatives should focus on four action areas
Role of the Government Transforming Public-Private Partnership
Despite the persistent economic downturn experienced
worldwide, the Philippine IT-BPM and GIC industry
remains strong and continues to grow in double digits.
Government and various non-government industry
organizations and associations have come to
recognize the significant contribution of the IT-BPM
and GIC industry to the economy, more transparent of
which are the revenues generated and other value and
jobs created, directly and indirectly, by this fast-growing
sector.
Source: Philippine Development Plan 2011–2016
Government’s
fundamental development
plan aims to support a
globally competitive
services sector
Sources: Government and Industry Data
Broad-based government support is aligned with industry objectives to reach
the goals of Road Map 2016
BETP: Bureau of Export Trade Promotion; BSP: Bangko Sentral ng Pilipinas; CHED: Commission on Higher Education; DepEd: Department of Education;
DFA: Department of Foreign Affairs; DOE: Department of Energy; DOLE: Department of Labor and Employment; DOST-ICTO: Department of Science and Technology-
Information and Communications Technology Office; DOT: Department of Tourism; DTI: Department of Trade and Industry; FTSC: Foreign Trade Service Corps;
LGUs: Local Government Units; NEDA: National Economic and Development Authority; OP: Office of the President
Thank you.