The outsourcing sector will become the country’s largest foreign exchange earner in the next six years, with annual revenues hitting $48 billion by 2020, a global advisory firm said Monday.
International research firm Tholons said the Philippine information technology and business processing management sector was poised to become a $48-billion industry by 2020, accounting for about 20 percent of the $250-billion global IT-BPM market by that time.
Tholons’ projection represents a doubling of the $25-billion revenue target of the Information Technology and Business Process Association of the Philippines by 2016, when the Philippines is expected to have a 12-percent of share of the global outsourcing market.
The Tholon’s report did not provide employment projection, but Science and Technology Secretary Mario Montejo said: “It is possible employment may double by 2020.”
“The opportunities will always be there. It will be coming. The question is, will the talents be up to it,” Tholons principal Vikrant Khana said during the International IT-BPM Summit at the Makati Shangri-La Plaza Hotel in Makati City.
IBPAP president Jomari Mercado said the Philippines was now working on the 2020 IT-BPM roadmap to meet the projections announced by Tholons.
“If it [Tholons] sees us growing that fast, then I suppose it’s about time to start working on an updated roadmap. We have to update the 2016 roadmap to deliver the 2020 vision,” Mercado said.
The association said a new five-year roadmap would work well for the IT-BPM industry where changes were expected to happen quite rapidly. The roadmap 2020 is expected to have specific growth prospects.
Mercado said instead of a generic or general roadmap, each sub-sector under IT-BPM would have its own growth projections and trajectories. This means each of the voice, creative, gaming, healthcare, call center and software sub-sectors would have separate growth lanes.
The IT-BPM sector is on track of achieving a revenue target of $18 billion by end of 2014, with more than a million employees.
Revenue is projected to reach $25 billion by 2016, with voice remaining the biggest contributor to the industry and accounting for 50 percent of expected revenues and 65 percent of headcount.
“By 2020, we expect that the market place will be 35-percent Generation Y. So we’re anticipating changes in the mode of transactions. Voice will still be there, but it has to evolve,” said Mercado.
The IT-BMP industry contributed $16 billion in revenues and 900,000 jobs in 2014. This year, some 1.04 million individuals are employed in the sector, with the figure seen climbing to 1.3 million by 2016.
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by manilastandard.net readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of manilastandard.net. While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.