It is only half of the year but the future of the outsourcing industry in the Philippines is more bright and secured than ever. How is this true? Let the news snippets of several online news agencies speak for us.
“The information technology and business process management (IT-BPM) sector of the country is “on track” to meet its goal of $25 billion in revenue and 1.3 million jobs by the end-2016, a contribution of 7 percent to 7.5 percent of the Philippines’ gross domestic product for the year, according to an industry group.” – The Manila Times
The figures are not just promising but sterling. This is not the situation more than a decade ago. If we try to look back, the revenue generated by this industry is only Php86.6 billion in 2005, based on Bangko Sentral ng Pilipinas paper entitled “The 2005 Benchmark Survey of IT-Enabled Services” report. In the same year, its share on the country’s GDP is only 2.4 percent, according to Rappler. And the workforce comprised of 11,000 people in 2006.
“Net take-up of premium and grade-A office space reached a record of 459,000 square meters (sq. m.) in 2015, prompted by the growing business process outsourcing (BPO) sector, with some estimates placing requirements for 2016 at similar levels. ” – BusinessWorld Online
Where would you put the 1.3 million BPO employees if there is no office space to work at? As the real estate consultant CBRE Philippines, Inc. said in CNN Philippines, “Office is the new residential.” Moreover, in order to provide a more conducive environment for the BPO community, recreational facilities and commercial establishments are being put up around the area.
“The country expects to earn more than $51 billion this year from the sustained inflow of remittances from overseas Filipino workers and business process outsourcing sector… ” – The Philippine Star
To be specific, outsourcing companies are expected to have a share of $24 billion this year, as stated in the paper. If this keeps up, the BPO sector in the Philippines could overtake remittances because of the rising conflicts abroad, as observed by Rappler. Conflicts like the tension in the Middle East and North African (MENA) nations.
“The Philippines’ economically call-center industry has joined the growing list of businesses at risk of being gobbled up by automation.” – BDLive
There are always the bad guys and this one could pose a threat to the outsourcing sector in the Philippines. Automation is a taboo word for business processing outsourcing companies. What would you feel if a robot snatches your job from you? Or worse, it could perform the job better than you. Can robots and human BPO companies workers co-exist? Fortunately, there are fallback procedures or solutions to solve this looming problem.
“The National Privacy Commission (NPC) will have public consultations on the draft implementing rules and regulations (IRR) of the Data Privacy Act.” – Rappler
What is the Data Privacy Act? It considers the unauthorized disclosure of personal information by government agencies and private sector unlawful. The site also says “it makes the Philippines compliant with international data security standards to attract investors in the Information Technology and Business Process Outsourcing (IT-BPO) industry” which is a good thing. As humans, it is normal for us to make errors, intentionally or not. The Data Privacy Act of 2012 could safeguard data especially in the healthcare sector.
Why was the draft IRR of RA 10173 issued just now? The outgoing President Aquino formed the National Privacy Commission (NPC) only in March 2016. NPC was the agency who issued the IRR. The first forum was set on June 28 at the Asia Pacific College sponsored by the Philippine Computer Society.
“The DICT will ensure that the BPO industry will get the required labor pool to match what the industry needs by mandating the policies that seek develop manpower with skills aligned with the needs of BPO firms.” –The Manila Times
DICT stands for Department of Information and Communication Technology which is the recently formed agency thru the initiative of the outgoing administration. Yes. After 20 years, the Philippines has its own division to spur the growth of the IT-BPM sector. Finally.
“The local information technology and business processing outsourcing industry is optimistic about the incoming administration… saying the new government’s 10-point economic agenda is aligned with the sector.” – The Standard
This is based on the statement of Benedict Hernandez on The Standard. Hernandez is the chairman of the executive committee of the Information Technology and Business Process Association of the Philippines (iBPAP).
No doubt, BPO companies are here to stay in the Philippines. It will remain as a permanent resident in the next 6 years or so. If everything is right on track, then this sector is going to be the powerhouse of the Philippine economy.