MANILA, Philippines - The information-technology business process outsourcing (IT-BPO) industry is looking to revise its 2016 revenue target to a higher $27.4 billion from a previous target of $25 billion as the country is becoming a preferred destination for investments in services and continues to have a favorable investment climate.
Alejandro Melchor III, deputy executive director at the Department of Science and Technology Information and Communications Technology Office said in a press conference yesterday that the government with the IT-BPO industry groups are looking to revise the 2016 revenue target contained in the roadmap for the sector.
“$27.4 billion is the new target we are looking at for IT BPO revenues by 2016 based on a 20-percent compound annual growth rate from $11 billion in 2011,” he said.
He said they are looking to revise the 2016 revenue target to a higher $27.4 billion given developments which show that the country’s IT-BPO sector can grow and generate revenues higher than the $25-billion target.
“The roadmap did not anticipate the full development of other sectors in the IT-BPO industry,” he said.
He said that the country is now being recognized as a better destination for investments in healthcare outsourcing.
The country, he also said, is now preferred by firms for IT-BPO services such as human resources and financial and accounting as it is becoming competitive in these areas.
Putting back office operations in one country, he also said, is now coming to a sharper view by firms and the Philippines is considered a preferred destination for such operations given the availability of the necessary skills for those jobs here.
The good investment climate, he also said, would allow the country’s IT BPO sector to generate higher revenues.
“The Philippines is now considered an alternative to India because investors don’t want change in rules and India is doing that ,” he said.
He said that if the government would decide to make some changes to rules on doing business, it must consider offering more incentives so that firms would be encouraged to invest here.
The Philippines, he said, may consider extending the current income tax holiday offered for six years to at least eight years to remain an attractive destination for IT and BPO investments.
He said the goal is to complete the revision of the 2016 roadmap target within the year.