IBPAP to overhaul Philippine BPO roadmap in Q1 2019!


[pushAUX.com] The Information Technology (IT) and Business Process Association of the Philippines (IBPAP) seeks to implement a new industry roadmap in the first quarter of 2019. This recalibration was caused by various developments that affect the local BPO industry.

Rey Untal, IBPAP President-Chief Executive Officer, has recommended to the IBPAP board revisions in the current roadmap, which includes a reassessment of the projections covering the generation of jobs and industry revenue for 2019 through 2022.

(pushAUX: It is important to note that in IBPAP’s current roadmap, it projected that the IT and business process outsourcing [ITBPO] sector will grow to become a USD39B industry by 2022. Our opinion, which is parallel to IBPAP, is that this is no longer feasible)

But did the industry grow?

Lito Tayag, IBPAP Chair, declared back in November 2018 that the industry grew in terms of headcount and revenue by 4% in the last 18 months versus end 2016:

  • 2016 @ 1.14M jobs and USD22.9B in revenue
  • 2018 1.19M jobs and USD23.8B in revenues

Rey Untal however noted the apparent contraction of the industry in 2017 amidst the uncertainty within global-local political and policy developments, and the emergence of new technologies such as artificial intelligence.

Rey Untal, IBPAP


“The issue is not so much about eventual passage of tax reform. To a large extent, we had been affected by uncertainties what will be the ending numbers… In 2017, we are impacted by the protectionist stand, colorful language around economic concerns, and issues, which really delivered a strong wait-and-see attitude in 2017. But unfortunately, it prevailed and continued.”

The New Roadmap

As per IBPAP, the revised industry roadmap will place weight on policy shaping. The group seeks to intensify the private/corporate sector’s coordination with policymakers-legislators for them to better appreciate the workings of the local ITBPO industry.

A New Ally

Senator Juan Edgardo Angara has already laid out a position that pushes for the protection of the gains generated by the ITBPO sector. The good senator has proposed to push for fiscal incentives that support growth which is counter to the current drive of the government to lessen or remove the tax perks enjoyed by BPO’s.