The IT and Business Process Management (IT-BPM) sector recorded revenues of $29.49 billion in 2021 or a 10.6% jump from the previous year. Employment in the industry also increased with an additional 120,000 of full-time employees (FTEs) in 2021, bringing the sector’s total headcount to 1.44 million and registering a growth of 9.1% compared to 2020.
The sector’s recalibrated 2022 targets were 1.43 million FTEs and $29.1 billion in revenues.
“This double-digit growth validates what we had projected — that 2021 performance was beyond recovery; it marks a resurgence for the Philippine IT-BPM sector,” Jack Madrid, president and CEO, of IT and Business Process Association of the Philippines (IBPAP), said in a media advisory. “Preserving jobs, driving investments, stimulating countryside development, and creating demand for real estate — these are the unequivocal contributions of the industry to nation-building.”
IBPAP considers the following factors which helped the IT-BPM sector surpass its targets.
- pent-up demand from global customers
- higher confidence in work-from-home (WFH) setups by clients in contact centers and business process services
- growth in emerging sub-segments like e-commerce, fintech, healthcare, and technology
Offshoring and outsourcing
“This will spill over into 2022 and continue to boost demand for IT-BPM services across the world. We should not miss out on this opportunity to capture a bigger slice of the global market,” Madrid said.
The optimism is spurred by several factors, which include further reliance on offshoring and outsourcing, the talent and skills shortage, and competitive pricing models. Expansion across select horizontals and verticals and increased digital adoption by traditional players will also be key drivers of growth in 2022.
According to IBPAP, the future of the Philippine IT-BPM sector will be dependent on the country’s ability to take advantage of emerging trends and circumvent mounting threats on a global and local scale.
“A sustainable talent supply, predictable regulatory environment, and more enabling infrastructure are just some of the top considerations of potential investors and locators that the Philippines will have to nurture and support,” IBPAP said.