IT-BPO industry to worth $250 billion by 2022 – DTI

CEBU, Philippines - The Department of Trade and Industry sees the information technology-business process outsourcing (IT-BPO) industry to worth $250 billion by 2022 while the National ICT Confederation of the Philippines (NICP) targets countryside employment in this sector to reach 1 million by that year.

Trade Secretary Ramon Lopez said the total global opportunity in the IT-BPO sector is expected to grow from $166 billion to $250 billion by 2022.

For his part, NICP President Wilfredo Sa-a Jr., in a recent interview, said the 1-million countryside employment target is more than thrice the current estimated 300,000 IT-BPO workers found outside Metro Manila.

Nationwide, Sa-a said employment in the sector stands at 1.2 million workers.

He added that in Cebu, there are 120,000 workers in IT-BPO as of December 2015.

Countryside employment, Sa-a said, would eventually increase, saying there is a growing preference among IT-BPO companies to operate outside Metro Manila.

These established cities include Cebu, Bacolod, Iloilo, Davao and Metro Clark.

Cebu, for instance, was ranked early this year as seventh best outsourcing destination globally by advisory firm Tholons.

The DTI said the new 2017-2022 IT-BPO roadmap is slated to be made public next month.

The current 2011-2016 roadmap has target revenues of up to $25 billion and employment of 1.3 million by year's end.

Contribution

The IT-BPO sector's contribution translates to a high value added of about $19,000 per capita by year's end, which is seen to further rise as the sector aims to acquire higher value projects such as software development, healthcare information management, creative services and products, and engineering services.

The IT-BPO sector plays an important role in boosting the country's competitive advantage as the key destination for voice and non-voice services.

The sector has been growing at more than twice the global market growth rate over the past five years.

The IT-BPO sector is the Philippines' second largest source of dollar earnings after remittances or the money earned by Filipinos working overseas.

The industry has grown to be the second largest source of dollar income for the Philippine economy, according to the Information Technology and Business Process Association of the Philippines (IBPAP).

In 2015, the industry generated 1.2 million direct jobs and US$ 22 billion in revenues. (FREEMAN)