About IT-BPM

As of 2010, the Philippines’ IT-BPM sector has already overtaken India’s standing in voice-based services,
making the country the number one provider for such services in the global economy. Voice-based
services is also identified as the largest contributor in the local BPO industry, comprising 64% (493,000)
of generated direct employment and 67% ($ 7.4 billion) of total revenues in 2011. Aside from this,
several non-voice and complex BPO services such as healthcare information management, knowledge
process outsourcing, engineering, animation, and software development are gaining prominence in the
global BPO sector and are in a higher growth pace vis-à-vis voice-based businesses.

The global foothold of the Philippine IT-BPM industry is largely attributable to the strong skills of the
Philippine labor force. In voice-based services, Filipinos hold competitive advantage in English
communication skills, strong customer service orientation, and adaptability to consumers’ Western
culture. In non-voice and complex services, The Economist and Everest Group analysts report the
growing number of businesses providing healthcare information management, human resources
management, business intelligence, and offshore financial consulting in the Philippines. Coupled with
Filipinos’ hard work and openness to learning, these two existing advantages provide investors with a
strong advantage once they set up shops in the country.

As an enabler of business, the Philippine government provides IT-BPM firms with one of the best
investment environment so that they can operate their enterprises productively. For instance, the Board
of Investments (BOI) provide income tax holidays, tariff reductions in capital equipment and streamlined
business registration and coordination procedures for non-voice and knowledge process outsourcing
enterprises which produce original content. The Philippine Economic Zone Authority (PEZA) also
provides an incentives package for IT-BPM businesses, including voice-based services in its scope of
qualified investors. Aside from better coordination procedures with government, IT-BPM enterprises
benefit from a sound telecommunications infrastructure in the country as well as a stable pool of skilled
professionals in urban cities, where the population base is growing at stable replacement rates. These
conditions assure that businesses can conduct their activities within a stable macroeconomic and
investment climate.