BPO forecast to end 2017 with growth – IBPAP
NOV 21 – Despite the challenges in the industry, the business process outsourcing (BPO) sector in the Philippines is forecast to end the year in growth. This was the forecast of the Information Technology and Business Process Association of the Philippines (IBPAP), although the association did not give a growth figure.
IBPAP president and CEO Rey Untal said investment pledges continues to show signs of recovery and that the proposed tax measures are buoying up the sentiments of major BPO players. The IT-BPM road map for the industry targets an average yearly growth rate of 9% for the sector from 2016-2022, or from an estimated USD23bn last year to about USD40bn in six years’ time.
Broadband services in PH become more affordable
NOV 23 – A report released by the International Telecommunication Union (ITU) showed that mobile and fixed broadband services in the Philippines have become more affordable in recent years. The report said fixed broadband prices are at 7.1% of the country’s gross national income (GNI) per capita in 2016, down from 7.53% in 2015.
Still, this figure is well below the regional average of 14.5% and the global average of 13.9%. The ITU’s Measuring the Information Society 2017 report calculates prices of telecommunications services as a percentage of a country’s gross national income per capita (GNI pc) per month. GNI measures income received by a country both domestically and from overseas.
BPO firms buying more office space in provinces
NOV 26 – Leechiu Property Consultants said business process outsourcing (BPO) companies are purchasing an increasing number of offices in the provinces. The property consultant also sees a challenge to BPO firms from the arrival of online gaming companies. David Leechiu, CEO of Leechiu Property Consultants, said online gaming firms are growing fast in Metro Manila and are on course to match demand from the outsourcing sector.
For now, the BPO sector remains first in terms of occupying office space, but the online gaming industry now already ranks second in Metro Manila. Consequently, Leechiu predicted that annual take-up for office space will increase by 19%, with online gaming compensating for a decreasing BPO demand.
Investment pledges in ecozones up 90%
NOV 20 – From January to October of this year, investment pledges registered at the Philippine Economic Zone Authority (PEZA) jumped by almost 90% to P203.18bn. During the same period of last year, investment pledges reached only P107.34 billion. PEZA Director General Charito B. Plaza said the increase in investment pledges was driven mainly by the Duterte administration’s pursuit of good governance and a corresponding increase in take-up by local enterprises.
However, government data also showed that investments in the business-process outsourcing sector declined by 8.4% in the January-to-October period. Investments in the sector reached only P14.4bn in the 10-month period, lower than the P15.73bn recorded last year. The number of projects also fell to 183 from 168 seen last year.
IT, business services firm generate USD472bn in H1 sales- IDC
NOV 20 – Market research firm IDC said the world’s IT and business services companies generated USD472bn in sales in the first six months of this year. The sales figure in H1 was 4% higher from the same period last year. By region, the America’s posted the highest year-on-year growth at 4.6% to USD249.2bn.
Asia Pacific followed with a 3.7% year-on-year growth to USD81.3bn. The EMEA region posted a 3.3% growth to hit revenues of USD144.6bn. Lisa Nagamine, research manager of IDC’s Worldwide Semiannual Services Tracker, said steady growth in the services market is largely driven by a continued demand for digital solutions.