Philippine IT-BPM industry grew 19% in 2012, adds over 137,000 jobs

Industry remains on track to hit 2016 targets of 1.3 million employees and US$25 billion in revenues

(Cebu, Philippines, June 4, 2013) — The Philippine information technology and business process management (IT-BPM) industry employed 776,794 at the end of 2012, adding 137,066 net new jobs. Employment grew by 21 percent from 2011.

“This number keeps us on target to reach 1.3 million in employment by 2016,” reported Jomari Mercado, president and CEO of the Information Technology and Business Process Association of the Philippines (IBPAP). Mercado made this announcement during the Cebu ICT and BPO Conference at the Radisson Blu Hotel in Cebu City.

Mercado also reported that in 2012, the industry earned about US$13.2 billion in export revenues for the country, a growth of 19 percent. This is well within the level required to keep the industry on track to hit its accelerated revenue target of US$25 billion by 2016.

“To reach our 2016 targets, we reiterate that it is imperative that we sustain and strengthen the work we are doing with government,” said Mercado. “We have received impressive support from President Aquino and his teams in the executive branch and we were able to pass key legislation needed by the industry.”

IBPAP works closely with DOST-ICTO, TESDA, CHED, DepEd, DTI, BOI, PEZA, DOLE, both Houses of Congress, LGUs, and other government agencies.

Data reported by IBPAP and its partner associations show that the healthcare information management (HIM) sector had the largest increase in employment. The Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), led by president Juanloz Botor, reported employment of 45,000 in the sector or 80 percent more employees in 2012. HIM revenues also increased rapidly to US$460 million or 66 percent growth, second only to the emerging sector of game development.

Game Developers Association of the Philippines (GDAP) president Alvin Juban reported that the sector increased more than three times in terms of revenues from US$14 million in 2011 to US$50 million in 2012. An additional 1,000 game developers joined its workforce in 2012 to bring the sector’s employment to 3,500.

The Contact Center Association of the Philippines (CCAP), led by Benedict Hernandez, reported that the sector’s employment grew by 19 percent, with 81,000 net new jobs in 2012. Philippine contact centers ended last year with 497,000 employees. Revenues also grew at a healthy clip of 18 percent, earning US$8.7 billion in revenues in 2012. The Philippine contact center sector is still the largest in the world and remains the destination of choice for customer relations management.

The Philippine Software Industry Association (PSIA), which celebrates its 25th anniversary this year, is pushing for greater awareness of the Philippines’ capabilities in software development and IT outsourcing. Its efforts in 2012 resulted in increased productivity as revenues grew faster at 17 percent than employment (14 percent). In 2012, the sector earned US$1.16 billion in revenues and employed 57,078, reported PSIA president Nora Terrado.

The animation and engineering services outsourcing (ESO) sectors reported recovery from negative and low growth rates in 2011. Engineering grew by 20 percent in 2012 in both employment and revenues, up from the 5 percent in the previous year. By end 2012, there were 10,836 employed in ESO producing US$206 million in revenues. Animation Council of the Philippines Inc. (ACPI) president Benjamin Marasigan Jr. reported that animation has recovered from negative revenue growth in 2011 to a positive 3 percent growth in 2012 and from flat growth in employment in 2011 to 4 percent growth in 2012. There were 9,000 employees who worked in animation studios who helped the sector earn US$132 million in 2012.

IBPAP Senior Executive Director Gillian Virata reported that corporate services, which includes knowledge process outsourcing and back-office services, grew 20 percent for both employment and revenues. There were 154,380 employees in the sector that earned US$2.5 billion in revenues in 2012.

“This non-voice corporate services sector, which includes global in-house centers, now makes up 20 percent of total employment in the country’s IT-BPM industry and 19 percent of revenues, second only to the leading voice BPM sector which still commands two-thirds of the total Philippine IT-BPM industry,” said Virata.

About the Information Technology and Business Process Association of the Philippines (IBPAP)
The Information Technology and Business Process Association of the Philippines (IBPAP) is the enabling association for the information technology and business process management (IT-BPM) industry in the Philippines. IBPAP serves as the one-stop information and advocacy gateway for the industry. With approximately 300 industry and support-industry members, including five associations—the Animation Council of the Philippines, Inc., Contact Center Association of the Philippines, Game Developers Association of the Philippines, Healthcare Information Management Outsourcing Association of the Philippines, and Philippine Software Industry Association—IBPAP plays a pivotal role in sustaining rapid growth of the IT-BPM industry by working to ensure an enduring supply of high-quality labor, supporting service innovation, and providing country visibility.

IBPAP assists investors in setting up operations easily and quickly in the Philippines. Relevant research, introductions to key government and industry officials, and a series of briefings at each step of the investment process ensure a seamless development process. On-going support is provided through a wide variety of initiatives, including programs for HR development, business development, and on-going knowledge sharing and networking opportunities.