The Philippine IT-Business Process Management (IT-BPM) industry is set to exceed its 2024 job creation and revenue targets under the Philippine IT-BPM Roadmap 2028.
Jack Madrid, President and CEO of the IT and Business Process Association of the Philippines (IBPAP), announced this projection during the 16th International IT-BPM Summit.
He discussed the future of this industry during the event’s first day on October 2 at Okada Manila.
What’s next for the Philippine IT-BPM industry?
Madrid shared positive growth projections for the Philippine IT-BPM industry, which anticipates revenue of $38 billion and a workforce headcount of 1.82 million this year.
The CEO, however, admitted that these fall short of the sector’s most ambitious goals. Nevertheless, these figures surpass the roadmap baseline targets.
READ: IT-BPM sector revenues may hit $40B in 2024, says IBPAP
Madrid emphasized that the IT-BPM industry needs strategies and interventions to navigate the following challenges as it evolves:
- Talent and Skills Gap: The industry needs more people with advanced digital skills like artificial intelligence, data analytics, and programming. Twenty-one percent of respondents in a midyear survey expressed this concern.
- Intensifying Global Competition: South Africa, Colombia, Egypt, Poland, and other nations have been boosting their IT-BPM industries. In response, the Philippines must innovate and maximize its strengths in language proficiency.
- High Operational Costs: Doing business in the Philippines is more costly than in other IT-BPM destinations. Consequently, the Pearl of the Orient must reduce healthcare and operational costs to remain competitive.
- Ease of Doing Business: The inconsistent implementation of policies and coordination among government agencies are diminishing the country’s attractiveness as an IT-BPM destination. Consequently, the government must resolve these issues to quell the growing frustration among investors.
- Cybersecurity Risks: The industry must bolster its cybersecurity to secure sensitive data so that clients continue trusting the Philippine IT-BPM industry’s reputation.
READ: IBPAP to discuss AI’s impact at the International IT-BPM Summit
The IBPAP highlighted artificial intelligence’s role in driving the sector’s growth. A recent survey says many companies have started AI solutions for customer service, data processing, and quality assurance.
Madrid acknowledged the hurdles to AI integration, such as high implementation costs and a need for more skilled talent.
He urged government, industry, and academic stakeholders to collaborate in addressing these challenges.