Strong investor demand forecast for setting up PHL BPO operations
THE information technology and business process management industry sees sustained demand for investment in its industry, injecting an element of confidence in its staffing and market share forecasts, the industry association said.
The IT and Business Process Association of the Philippines (IBPAP), whose members are also known as business process outsourcing (BPO) companies), described interest in the Philippines as “continuing,” both for prospective and current BPO operators.
IBPAP President Jack Madrid said in a briefing on Wednesday that the major metrics for industry growth are within reach.
“We have achieved our annual targets so far. We are confident that we will cross 1.8 million this year and fairly confident, based on our present trajectory that we will cross 2 million,” Mr. Madrid added.
The organization has said that the industry is poised to grow its workforce to 2.5 million by the end of 2028.
In 2023, the industry grew its staffing levels to 1.7 million, producing $35 billion in revenue.
The industry is targeting 7-8% growth in headcount this year, with revenue of $39 billion.
“It is really the demand that we can barely keep up with, but also the very positive demographics that we have,” he said. “We will grow, but the question is, can we maximize our growth?”
Mr. Madrid said that the industry is continually facing skills challenges servicing its markets.
“We grew 8% this year maybe we could have grown a little more if we had more talent,” he added.
“Our challenge is in supplying the badly needed talent for us to defend and increase our market share,” he said.
The market share of Philippines is currently 18% as of the end of 2023, behind India.
“This only highlights how major an economic pillar we are; if we achieve all our goals, we will increase from an 8% contribution (to the economy) to 9%,” Mr. Madrid said. — Adrian H. Halili