BPO industry sees headcount growing 7-8% next year
THE Information Technology and Business Process Association of the Philippines (IBPAP) said it is targeting 7-8% growth in staffing next year.
“Hopefully we will achieve between 7-8% growth next year. I will be happy with that. We added 130,000 jobs this year … So the total will be 1.7 million jobs,” IBPAP President and Chief Executive Officer Jack Madrid told reporters on Thursday.
“Our target is at least 7%. But you have to remember the base keeps getting higher and higher, so the 7% this year is less than the 7% of next year,” he said.
For this year, IBPAP expects the industry to grow 8.7% in terms of staffing, which Mr. Madrid said he is confident of achieving.
“We are going to hit that number. November and December are high growth months because of the Christmas season. People hire more in November and December,” Mr. Madrid said.
In terms of revenue, he said the industry, which is also known as the business process outsourcing (BPO) sector, will be posting 8.8% growth to $35.4 billion this year.
Asked what the segments will be the strongest next year, he said: “The growth sectors are healthcare; all the global healthcare companies are already here, banking and finance; and of course, the contact centers.”
He said the Philippines remains a leader in the traditional contact center with demand still growing.
“We don’t have a problem with demand. There’s a lot of demand for the Philippines. Our challenge is the supply of employees, we need more employees,” he said.
Under the IBPAP Roadmap, the information technology and business process management (IT-BPM) industry is targeting the creation of 1.1 million new direct jobs through 2028, bringing the total to 2.5 million.
“Our target is 1.1 million; so far we have done 300,000 of the 1.1 million, so we have 800,000 to go,” he said.
In terms of revenue, the IT-BPM sector is expected to generate $59 billion in 2028, amounting to a compound annual growth rate of 10.4%. — Justine Irish D. Tabile
