Information Technology and Business Process Outsourcing (IT-BPO) is the fastest growing industry in the country right now. According to the Information Technology and Business Process Association of the Philippines (IBPAP), the industry’s generation capacity was estimated at 1.2 million direct jobs. This made the industry one of the biggest revenue and growth drivers in the country. What are the trends and news that will shape the growth of this industry? Our monitoring team and partner Media-meter compiled the latest news on the BPO industry. Here are the 5 things you should watch out for:
1. “Financially-rewarding” Compensation Package
Currently, jobs are one of the highest paying in the Philippines. According to a report released by Jobstreet, IT-BPO tops the list of offering the highest salaries from 2014-2016. For Junior Executives or those with less than five-year work experience in BPO, the estimated salary is at Php 37,034 while Law and Legal Services comes at second with an estimated salary of Php 29,430.
2. Continuously Rising Revenue Share in the Economy
There will be no drastic impact on the Philippine business process outsourcing sector despite the economic policy change of US President Donald Trump, according to US Ambassador to the Philippines, Sung Y. Kim in one of his interviews with GMA News Online. In his statement he said that the industry will continue to grow as the country has very capable, smart and fluent, English-speaking employees. Based on another report released by Philippine Inquirer, it is possible that IT-BPO sector will surpass the revenue share of OFW this year. The projected earnings of IT-BPO sector is 21.2 Billion dollars while OFW earnings revenue is 25.6 billion dollars. For 2017 revenue expected from the BPO industry will be at 28.9 billion dollars.
3. Increasing Demand for Manpower in Provincial Key Cities
As the IT-BPO industry continues to grow and penetrate the key cities outside Metro Manila, the demand in manpower also continue to rise. The proof of this expansion is the plan of Cebu City to concentrate in building their manpower capacity to acquire high value investments for the industry this year. The province is the second major contributor of IT-BPO revenues next to Metro Manila. Also, according to the Executive Director of Bacolod-Negros Occidental Federation of Information and Communications Technology (BNEFIT), every year there is an estimated of two million unfilled positions in the IT sector worldwide. With this, it is seen that the demand of IT-BPO jobs in the provinces will continue to increase.
4. Main Driver for Real Estate Market
The commercial and residential real estate market will continuously grow stronger this year. As the BPO industry continues to expand in the key cities outside Metro Manila, these New Wave Cities will see the rise of new office buildings. These cities include Baguio, Bacolod, Clark, Cavite, Cagayan de Oro, Davao, Iloilo, and Laguna. One example of this expansion is the Clark Green City spearheaded by BCDA. It is a 9,450-hectare development under construction in Tarlac that aims to move vital business and economic centers from the decongestion of Manila and also to acquire more foreign investors. According to Leechiu Property Consultant, it is expected that the IT-BPO sector will expand outside Metro Manila and occupy 1.95 million square meters (sq.m.) for the next six years.
5. Expansion in Key Cities Outside Metro Manila
For the past years, IT-BPO companies have expanded in Cebu, Bacolod, Iloilo, Pampanga, and Davao. Aside from the purpose of providing jobs in rural areas, this move is aligned with the government’s thrust for regional development. Also, these cities offer the stable power supply and competitive office rents with Metro Manila, minus the traffic and commute for the employees.
BPO has become a major player in the PH economy benefitting industries such as real estate, retail, finance and IT. In this cutthroat industry, it is important for your team to be top of mind to attract and acquire the best talents and clients. We’ve helped companies in the BPO industry tell their stories that resonates to both potential talents and other stakeholders.
If you’re ready to share news and stories about the rewarding work and contributions of your team in the BPO industry, contact our client success team for a meeting.