The Information Technology and Business Process Association of the Philippines (IBPAP) recently noted that even with the lingering issues such as the strong peso and scarcity of skilled workforce, the information technology-business process outsourcing (IT-BPO) sector continued to grow - even exceeding its targeted revenues. Based on initial data, IT-BPO firms in the Philippines posted $13.4 billion in revenues last year, which is marginally higher than the actual target. It is also 22 percent higher than 2011’s $11 billion revenue goal.
Jose Mari P. Mercado, the new president and CEO of IBPAP, expects that by next year, jobs in the IT-BPO segment will reach 1 million during the first quarter. During the last few weeks of 2012, the IT-BPO sector created 720,000 jobs.
The call center and healthcare outsourcing segments have also surpassed their revenue targets.
The IBPAP Executive noted that with the rapid growth of the sector, they are sticking to the Road Map where they’ve indicated targets of $25 billion worth of revenues and 1.3 million jobs by 2016 and $16 billion in revenues and 920,000 jobs for this year.
According to the 2012 EMEA TPI Index created by US market analysis consultancy firm Information Services Group (ISG), the public sector in the UK is closing larger deals globally, next to the US.
The report indicated a 16-percent growth in the region for government deals with annual contract value (ACV) of nearly £3.4m.
Furthermore, ISG cited the UK of having the largest total market value terms apart from the US. Organizations in Great Britain were seen closing 148 deals last year, which is 47 percent more in 2010.
Meanwhile, ISG noted that the growth of BPO and ITO within the UK shows that its government is starting to take notice of the potential of outsourcing for UK-based businesses.
According to the EMEA TPI Index charts, the increase in outsourcing activity in the UK public sector was due to the large size of outsourcing deals as well as the signs of recovery seen in the financial services sector.
According to a press release from the Bacolod-Negros Occidental Federation for Information and Communications Technology, Senate Committee and Technology Chairperson Edgardo Angara and Sigfrido Tinga, Chairman of the House Committee on Information and Communications Technology and Taguig Representative, commended National ICT Confederation of the Philippines former Chair Jocelle Batapa-Sigue for introducing business process outsourcing (BPO) to areas outside of Metro Manila.
Senator Angara lauded Sigue in his acceptance speech when he got the award as ICT Individual Contributor of the Year in the recently concluded International ICT Awards held in Makati.
Rep. Tinga, who was also a recipient of the ICT Individual Contributor of the Year award, agreed with Angara in praising Sigue for introducing BPO in cities outside Metro Manila, also known as the Next Wave Cities.
Sigue and BPAP President Fred Ayala were the other finalists in the International ICT Awards.
Outsourcing industry body Business Processing Association of the Philippines or BPAP formally changed its name to Information Technology and Business Process Association of the Philippines or IBPAP to effectively redefine the coverage of the Philippine outsourcing industry.
According to IBPAP outgoing President and CEO Benedict Hernandez, the rebranding signifies the association’s dedication to the entire outsourcing industry of the Philippines, and that the information technology segment is an integral part it. The name change also aims to characterize the organization in the global IT market.
Moreover, he said it’s a strategy that can help further promote the Philippines as an ideal destination for both business process outsourcing and information technology outsourcing.
During the 27th Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) in Radisson Blu Hotel in Cebu City, George Abraham, Chairman of the CACCI Small Medium Enterprise (SME) Development Council, identified competition, rising costs of operating a business, unpredictable cash flows, lack of skilled workforce, as well as lack of access to business opportunities and funding are preventing SMEs to grow and maximize their potential.
He noted that SMEs should be able to keep up with the rapid changes in the industry and present fresh ideas to consumers to stay relevant. Furthermore, he said they should be able to build relationships with other organizations to reinforce resources, services, and competence.
However, he reiterated that technology and financial management are key parts that SMEs should keep an eye on since most SMEs rely on traditional techniques and have less funds.
According to Paco Sandejas, Managing Partner at Narra Venture Capital, even with cumulative efforts to balance the currency strength, the information technology (IT) industry is struggling along with other major sectors.
He cited during an interview with ANC’s Inside Business that for manufacturing software and electronics, the margins are very narrow. The slightest change in exchange rate, 10 percent for instance, will induce a negative effect. He added that there’s already a five-percent irregularity in the local currency.
Last year, the peso closed at P41.05 a dollar, and recently, it finished at P40.585:$1.
Sandejas explained that the IT sector should look into offering new products and innovation to counter the valuation of the peso.
The peso was also seen appreciating by six percent last year, from 2011’s P43.84 to $1.
Other segments affected by the stronger peso are the business process outsourcing (BPO) industry, exports segment, and has also dampen the spending power of the families who depend on remittances from overseas Filipino workers.
by: Sarah Joson
According to the Information Technology and Business Processing Association of the Philippines (IBPAP), select Filipino animators and game developers are set to undergo training through the partnership of the local information technology-business process outsourcing (IT-BPO) sector and the South Korean government.
IBPAP identified animators Cynthia Javier and Nelson Udaundo and game developers Joyce Macaspac and Joie Sales - chosen by the Technical Education and Skills Development Authority (TESDA) - to participate in the training program in Gyeonggi-do, Paju, South Korea for two months. Other organizations that helped coordinate the training program are the Korea International Cooperation Agency (KOICA), and the Korean Chamber of Commerce and Industry (KCCI).
Courses in the program include design and construction, software program education, graphics modeling, texturing and lighting, game art, as well as 3D Max, Unity 3D, and Java.
Uduando said the animation and game design industry of the Philippines is similar to South Korea’s as both countries are familiar with the Western culture, practices and even challenges. However, one thing to take note of is Korea’s ability to revive the industry through original content, which helped them accumulate quite a following in the animation market.
Meanwhile, Grace A, Dimaranan, President of the Animation Council of the Philippines Inc. (ACPI), said the animation and gaming sectors present more opportunities for the country’s information technology and business process management industry. With training programs like this, future animation industry leaders can help navigate the next generation and maximize their potential.
IBPAP cited MarketsandMarkets’ report that the Philippines ranked third after South Korea and India in the animation and game development sector. The Philippines accounted for 10 percent of the market share, while India takes 40 percent, and South Korea has 15 percent. The global animation and gaming market is projected to grow up to $242.93 billion by 2016, from $122.20 billion in 2010.