Majority of the companies from the information technology and business process management (IT-BPM) sector are optimistic of growing by 5 percent to 15 percent this year after seeing revenue and employment figures barely improve last year due to the pandemic.
A survey by the IT and Business Process Association of the Philippines (Ibpap) showed that 87 percent of the IT-BPM firms are expecting to book as much as double-digit growth figures this year while the other 13 percent are anticipating flat growth.
The industry group said there were also a “good number” of companies planning to expand their business in the regions within the next 12 to 18 months.
Last year, employment in the industry grew by 1.8 percent to 1.32 million while revenues rose by 1.4 percent to $26.7 billion, according to Ibpap.
“When Ibpap commissioned the recalibration study in July 2020, we already knew that the far-reaching effects of the health crisis did not spare the IT-BPM sector. The fact that it reached this level of growth by year-end is proof of the industry’s resilience and fundamental role in the Philippine economy,” Ibpap President and CEO Rey E. Untal said in a recent statement.
The latest data reported was better than what was earlier presented by SPi Global Senior Vice President Celeste Ilagan, who also sits on the board of trustees for Ibpap.
She shared in an online conference last month that industry revenues dipped to $26.2 billion last year, from $26.3 billion in 2019. Employment figures, meanwhile, remained at 1.3 million, she added.
“Although hospitality and travel were unsurprisingly affected by the pandemic, verticals like healthcare, e-commerce and retail, banking, finance and administration, and insurance flourished enough to help propel the industry’s headcount and revenue growth,” Ibpap said.
The industry group noted that the firms were able to show some signs of recovery during the fourth quarter last year after most of them had found their footing again by September.
A “notable” surge in IT outsourcing projects from clients was also recorded during the latter part of 2020 amid the increased shift to digitization as means to improve business continuity plans, Ibpap added.
Ibpap noted that investment pledges for the sector were flat at P17.41 billion last year, citing data from the Philippine Economic Zone Authority.
Citing Leechiu Property Consultants, the industry group said the IT-BPM sector also took nearly half of the office space demand last year.
Ibpap, meanwhile, said the hybrid working model will be in place until next year. Currently, the industry is implementing a 70-30 split between work-from-home and on-site work, respectively, to deliver services.
“Moving forward, this will most likely change depending on company policies, government mandates, and digital capabilities,” Ibpap said.
In addition, IT-BPM firms are focusing on the following priorities this year: optimization of existing operations, digital transformation and upskilling of the labor force.
Source: https://businessmirror.com.ph/2021/04/26/it-bpm-firms-expect-to-grow-by-5-15-this-year-survey/