Department of Trade and Industry
Release Date: September 22, 2019
Department of Trade and Industry (DTI) Secretary Ramon Lopez assured the information technology and business process management (IT-BPM) industry that it can rely on the government as is its partner in carrying out plans, during the general membership assembly meeting of the Information Technology and Business Process Association of the Philippines (IBPAP) on 22 September.
In his keynote speech, Sec. Lopez emphasized the important role that the IT-BPM industry plays in enhancing the country’s competitive advantage as a premiere destination for voice and non-voice services.
“The Philippines has been growing at more than twice the global market growth rate over the past five years,” he said, adding that the total global opportunity for outsourced IT-BPM is expected to grow from $166 billion to $250 billion by 2022.
With the demand expected to double by 2022, the trade chief called on industry players to work with the government in pursuing a new gameplan that will enable the industry to sustain its positive growth trajectory, create more jobs and contribute to inclusive growth.
As the IT-BMP Industry Roadmap 2011-2016 nears conclusion with target revenues of up to $25 billion and an employee base of 1.3 million by year end, the new industry roadmap 2017-2022 is slated to be made public next month.
Sec. Lopez added that the IT-BMP sector’s contribution translates to a high value added of about $19,000 per capita by year end, which is projected to further level-up as the sector aims to acquire higher value projects on software development, healthcare information management, creative services and products and engineering services.
“Our objective in our partnership with you in this next phase is to create an ecosystem that will further foster sustained and more inclusive growth for the IT-BPM sector,” Sec. Lopez said, as he expressed hope that IBPAP will continue promoting the country’s competitive advantages and growth potential in both existing and new areas of outsourcing.
In the same juncture, Sec. Lopez outlined policy reforms and other government initiatives for the IT-BPM industry, including the implementation of the Training for Work Scholarship Program (TWSP), which has benefited more than 230,000 graduates from 2010 to May 2016.
The partnership between the Commission on Higher Education and IBPAP resulted in the creation of the Service Management Program (SMP), a specialization track for business and IT schools that aim at developing manpower suited for the IT-BPM industry.
He said that IT-BPM activities may avail several tax incentive packages provided by the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA), adding that the DTI is supporting the modernization of the country’s investment incentives regime.
“In granting incentives, our focus will be on creating decent jobs in the Philippines and as such, bias against foreign investors and against those serving the domestic market will be removed,” Sec. Lopez said.