IT-BPM Industry in the Philippines 101

IBPAP

19 Feb 201703:57

Summary

TLDRThe IT BPM industry in the Philippines has significantly contributed to the nation's economic growth, with revenues soaring from $1.5 billion in 2004 to $19 billion in 2014, aiming for $25 billion by 2016. This sector, which includes outsourcing of critical business functions like HR, accounting, and IT, has seen employment rise from 100,000 in 2004 to 1.67 million in 2014. Professionals in this field are known for their English proficiency, positive work ethic, and friendly demeanor. The IT BPM industry is projected to require over 1.3 million professionals by 2016, fostering global competitiveness and innovation.

Takeaways

🌐 IT BPM stands for Information Technology and Business Process Management, which involves outsourcing non-core business processes to internal units or third-party providers.
💼 IT BPM impacts a wide range of sectors including human resources, accounting, customer service, legal, research, health information management, and IT services.
📈 The industry has seen significant growth, with revenues increasing from $1.5 billion in 2004 to $19 billion in 2014, aiming for $25 billion by 2016.
🏆 The Philippines is recognized as the top destination for contact center management globally, excelling in the IT BPM sector.
👥 IT BPM professionals in the Philippines are highly skilled, known for their English proficiency, positive work ethic, and friendly attitude.
📊 The industry has contributed to the Philippine economy by generating substantial revenues and employment opportunities.
🔼 The IT BPM industry workforce has grown exponentially, employing 1,000 in 2004 to over 1.67 million in 2014, with projections for over 1.3 million professionals by 2016.
🔄 For every direct job created in the industry, 2.5 indirect jobs are also generated, showcasing the sector's broad economic impact.
🤝 The IT and Business Process Association of the Philippines (IBPAP) plays a crucial role in advocating for the sector and developing talent through various initiatives.
🌟 The IT BPM industry in the Philippines continues to be progressive and globally competitive, enhancing the reputation of Filipino professionals worldwide.

Q & A

What is the full form of BPM in the context of the IT industry?
-BPM stands for Business Process Management, which involves the outsourcing of processes like Human Resources, accounting, customer service, legal, research, health information management, IT, and more to an internal business unit or a third-party service provider.
How does the IT BPM industry impact the Philippine economy?
-The IT BPM industry has a significant impact on the Philippine economy by generating revenues, creating employment opportunities, and enabling businesses worldwide. It has contributed to exponential economic growth in the country.
What kind of jobs are available in the IT BPM industry?
-The IT BPM industry offers a wide range of jobs including healthcare providers, animators, IT engineers, software developers, customer service professionals, game developers, pharmacists, accountants, and more.
Why do businesses outsource processes to the IT BPM industry?
-Businesses outsource processes to the IT BPM industry to save resources and focus on their core competencies. These processes are critical for operation but are not areas of specialization for many companies.
How has the IT BPM industry grown in terms of revenue over the past decade?
-The IT BPM industry has seen a substantial increase in revenue from 1.5 billion dollars in 2004 to 19 billion dollars in 2014, with a target of 25 billion by 2016.
What is the Philippines' standing in the global IT BPM industry?
-The Philippines is the most preferred destination for contact center management globally, with the IT BPM industry workforce not only meeting but exceeding global demands.
How many professionals does the IT BPM industry employ in the Philippines?
-The IT BPM industry directly employed 1,000 Filipinos in 2004, which grew to 1,670,000 by 2014. It was projected to need more than 1.3 million professionals by 2016.
What is the role of the IT and Business Process Association of the Philippines (IBPAP) in the industry?
-IBPAP advocates and enables the growth of the IT BPM sector by developing tools, projects, and programs to cultivate the talent pool in the Philippines. It also focuses on talent development, research, information, marketing events, business development, and government partnerships.
What are the qualities of IT BPM professionals in the Philippines that are recognized globally?
-IT BPM professionals in the Philippines are highly skilled and globally recognized for their English proficiency, positive work ethic, and warm, friendly attitude.
How does the IT BPM industry contribute to indirect employment in the Philippines?
-For every direct employment generated in the IT BPM industry, 2.5 indirect employment opportunities are also created, contributing to the overall economic impact.

Outlines

00:00

🌐 Impact of IT BPM on the Philippine Economy

The paragraph introduces the concepts of Information Technology (IT) and Business Process Management (BPM), highlighting their significance in the Philippine economy. It explains that IT BPM involves outsourcing critical business processes such as HR, accounting, and customer service to specialized units or third-party providers, allowing companies to focus on their core competencies. The industry's impact is vast, affecting over a million Filipinos and offering a wide range of job opportunities. The professionals in this sector are recognized globally for their skills, work ethic, and positive attitude. The growth of the IT BPM industry is exponential, with revenues increasing from $1.5 billion in 2004 to $19 billion in 2014, aiming for $25 billion by 2016, at an annual growth rate of over 20%. The Philippines is a preferred destination for contact center management, and the industry's workforce not only meets but exceeds global demands.

Mindmap

Keywords

💡BPM

BPM stands for Business Process Management, which refers to the management of business processes to improve company performance. In the video, BPM is highlighted as a critical component of the IT BPM industry, where companies outsource non-core business processes to third-party service providers or internal business units. This allows companies to focus on their core competencies and save resources. The video emphasizes the significant role BPM plays in the Philippine economy, affecting over a million Filipinos and contributing to the country's economic growth.

💡IT

IT, or Information Technology, is the application of computers to store, retrieve, transmit, and manipulate data. In the context of the video, IT is combined with BPM to form the IT BPM industry, which is a major driver of economic growth in the Philippines. The video mentions that IT BPM involves outsourcing various processes such as Human Resources, accounting, and customer service, which are critical for businesses but not their core expertise.

💡Outsourcing

Outsourcing is the practice of contracting out a company's business functions to a third-party service provider. The video explains that businesses outsource processes to save resources and focus on their areas of specialization. Outsourcing is a key strategy in the IT BPM industry, allowing companies to access specialized services and skills that they may not have in-house.

💡Revenue Growth

Revenue growth refers to the increase in the income generated by a business over a specific period. The video script provides an example of exponential revenue growth in the IT BPM industry in the Philippines, with revenues growing from 1.5 billion dollars in 2004 to 19 billion dollars in 2014, aiming for 25 billion by 2016. This growth is indicative of the industry's significant impact on the country's economy.

💡Global Recognition

Global recognition implies that the skills and services provided by professionals are acknowledged and valued on an international scale. The video mentions that IT BPM professionals in the Philippines are highly skilled and globally recognized, particularly for their English proficiency, positive work ethic, and friendly attitude. This recognition contributes to the Philippines being a preferred destination for contact center management.

💡Employment Opportunities

Employment opportunities refer to the availability of jobs or positions in a particular industry. The video highlights that the IT BPM industry has generated substantial employment opportunities, directly employing 1,000 Filipinos in 2004 and growing to 1,067,000 in 2014. The industry is expected to need over 1.3 million professionals by 2016, showcasing its role in job creation.

💡Indirect Employment

Indirect employment refers to jobs created as a result of the economic activity generated by a particular industry. For every direct job created in the IT BPM industry, the video states that 2.5 indirect jobs are also created. This multiplier effect highlights the broader economic impact of the industry beyond direct employment.

💡Talent Pool

A talent pool is a group of individuals with a specific set of skills that can be drawn upon to fill positions within an industry. The video discusses the IT and Business Process Association of the Philippines (IBPAP)'s initiative to cultivate the IT BPM talent pool in the country. This involves developing tools, projects, and programs to ensure a continuous supply of skilled professionals to meet the industry's needs.

💡Innovation

Innovation refers to the introduction of new ideas, products, or services that create value or for which customers will pay. The video implies that the IT BPM industry in the Philippines supports innovation by providing high-quality labor and enabling businesses worldwide to stay competitive. This is crucial for the industry's continued growth and global competitiveness.

💡Competitiveness

Competitiveness is the ability of a business or industry to compete effectively in the market. The video emphasizes the progressive and globally competitive nature of the IT BPM industry in the Philippines. This competitiveness is attributed to the industry's professionals who are skilled, recognized globally, and contribute to the country's economic growth and visibility.

Highlights

IT BPM has a significant impact on the Philippine economy.

IT BPM affects over a million Filipinos nationwide.

IT BPM involves outsourcing non-core business processes to specialized units or third-party providers.

Outsourcing allows businesses to save resources and focus on their core competencies.

The IT BPM industry offers limitless job opportunities.

IT BPM professionals are recognized for their English proficiency, work ethic, and friendly attitude.

The sector has propelled the country's economic growth exponentially.

Revenues generated by IT BPM increased from $1.5 billion in 2004 to $19 billion in 2014.

The Philippines is the most preferred destination for contact center management globally.

IT BPM industry employment grew from 100,000 in 2004 to 1.67 million in 2014.

The industry is expected to need over 1.3 million professionals by 2016.

For every direct employment, 2.5 indirect employment opportunities are also created.

The IT and BPM Association of the Philippines (IBPAP) advocates for the growth of the IT BPM sector.

IBPAP develops tools, projects, and programs to cultivate IT BPM talent in the Philippines.

IBPAP has over 300 members and six partner associations, contributing to the country's economy and global visibility.

The IT BPM industry in the Philippines continues to be progressive and globally competitive.

The industry elevates Filipino professionals across the globe.