What is IT-BPM?
Information Technology and Business Process Management or IT-BPM is when foreign brands, multinationals, and even startups engage the services of a third-party vendor to manage certain aspects of their work operations. These are often functions that might be deemed essential but are not part of the organization’s core business like Accounting, Customer Support, Logistics, Research, and Telemarketing. Companies often choose to outsource work as it offers a number of benefits that help them create value and transform their businesses through decreased costs, strengthened global presence, focused performance, and maximized profits.
The Philippine IT-BPM Sector
Establish a Career and Thrive in a Resilient Industry
The IT-BPM sector started in the Philippines in the 1980s with basic encoding, in-house development, and programming. More than 30 years down the road, the industry now offers more complex and varied services that go beyond traditional call center work and utilize digital platforms and solutions. It is considered as the country’s largest job generator and one of its biggest private-sector employers, creating jobs for 1.3 Million Filipinos while indirectly impacting close to 4.2 million more people across the nation.
Find a Job that Suits Your Skills and Needs
The industry is full of opportunities for people with different skill sets. It’s composed of over 1,300 companies that are classified into six subsectors: Contact Centers, IT and Software Development, Animation and Game Development, Global In-House Centers, and Healthcare Information Management.
Develop Your Expertise and Become a Global Professional
Talent has been and will continue to be the industry’s most valuable asset. As such, the sector is one of the largest investors in the training and development of its people, spending five to ten times more than other industries on continuous upskilling, global best practices, and lifelong learning. It also generally provides better compensation and more premium benefits to employees.
Key Services Offered
Contact Center and BPO
Mature services: Customer Care, Helpdesk Growth services: ESO, Data Analytics, Performance Management, Legal Process Outsourcing
Information Technology Services
Mature service: Application Development, Infrastructure, Support
Growth services: System Integration, Automation Enablement, IoT Enablement Languages, Application Development Management (ADM)
Health Information Management Services
Mature services: Payer services Growth services: Preventive Health, Remote Healthcare Management, Provider Services
Mature services: 2D animation
Growth services: 3D animation
Game Development Services
Mature services: Game development
Growth services: AR/VR, Gamification
Global In-House Centers
Mature services: F&A
Growth services: Industry-specific Services for Telecom, Healthcare, Insurance and Pharmaceutical
Contact Center and BPO
The largest IT-BPM sub-sector in the country contributing US$12.7 billion in revenues (or 57 per cent of total sector revenues) and employing about 750,000 full time employees (FTEs) in 2016. Voice-based customer care is the most common service offering in this sub-sector, followed by helpdesk services, and outbound sales and marketing. There is also notable growth in the non-voice BPM market, driven by the demand for more complex tasks and higher value services in human resources, finance, and accounting. Outsourcing of vertical-specific processes (such as credit cards processing in the Banking sector for example) is also on the rise as companies look to outsource volume tasks that are close to their core business areas.
Revenues from IT outsourcing reached US$2.9 Billion (or 13 per cent of total sector revenues) in 2016. This sub-sector employed about 123,000 FTEs in the same year. IT services outsourcing refers to the use of external service providers to effectively deliver IT-enabled business process, application service and infrastructure solutions for business outcomes. Large service providers typically use the Philippines as an alternate location for IT services contracts as part of their diversification and risk mitigation strategy. The Philippines, for a majority, offers support and application development functions. Technology, manufacturing, and BFSI are the largest customer segments, followed by retail and healthcare
Health Information Management Service
Health information management services (HIMS) is one of the fastest-growing emerging subsectors within the sector. It generated revenues of US$ 2.4 Billion (or 10 per cent of total sector revenues) and employed about 118,000 FTEs in 2016. It comprises three core areas—the payer or insurance segment, the provider, and the pharmaceuticals segments that constitute the overall healthcare outsourcing subsector. Initially, HIMS services in the country only offered medical transcription services, but in recent years the sector has begun offering a wider range of services including: infrastructure outsourcing (data center, network management, security), application outsourcing (application development and maintenance, testing, system integration and production support) and BPM outsourcing (claims management, provider management, etc).
Animation and Game Development
Revenues from IT outsourcing reached US$2.9 Billion (or 13 per cent of total sector revenues) in 2016. This sub-sector employed about 123,0The animation and game development sub-sectors generated revenues of US$0.6 billion (or 1 per cent of total sector revenues) in 2016. The industry is composed of a mix of companies as well as freelancers offering their services to clients directly through online portals. Excluding freelancers, the sub-sector employed 4,300 FTEs in 2016. Animation companies are usually tapped by international and local studios to do production and post-production services. Most of the animation revenue originates from 2D animation, with clients mainly from Disney, Warner Brothers, Nickelodeon and Cartoon Network, among others.
Global In-House Centers
The global in-house center (GIC) sub-sector contributed revenues of US$4.7 billion (or 20% of total sector revenues) and employed about 149,000 FTEs in 2016. Unlike other IT-BPM services outsourced to third-party service providers, GICs are managed internally by the same parent company. They are designed to offer a service or a group of services, either in a single or a specified number of delivery locations, for the benefit of the entire organization or group of organizations.The global in-house center (GIC) sub-sector contributed revenues of US$4.7 billion (or 20% of total sector revenues) and employed about 149,000 FTEs in 2016. Unlike other IT-BPM services outsourced to third-party service providers, GICs are managed internally by the same parent company. They are designed to offer a service or a group of services, either in a single or a specified number of delivery locations, for the benefit of the entire organization or group of organizations.