CLARK FREEPORT—The information technology and business processing outsourcing industry in the Philippines has been enjoying a boom from the global economic crisis as foreign companies pass on some of their operations and services to reduce cost, a government official said here on Wednesday.
“Surprisingly, it got stronger. Lalong lumaki (it got bigger),” Commissioner Ramon Ibrahim of the Commission on Information and Communication Technology said at the launch of the Metro Clark ICT Council, which will host the National ICT Conference of the Philippines (NICP) on Nov. 5-7 this year.
“The local growth is primarily because of the crisis. Companies in North America and Europe have realized that the only way they can compete is to cut cost. The Philippines does not only provide low cost but also good quality work,” Ibrahim said.
While the Philippines lost large contracts during the first two quarters, he said it has been “getting more” small contracts in software developments and back-office operations for financial, accounting and human resources support.
According to him the industry will meet its target of 20 percent growth by end 2009. In real terms, that means 150,000 new jobs, raising the industry’s employment level to 500,000 to 550,000 by year-end.
He said revenues are expected to rise from $6.1 billion to $7.2 billion by end-2009.
“The biggest challenge is the availability of people. We’re running out of graduates who are competent in English, have analytical ability and have mindset for quality work,” he said.
This, he said, is being addressed by stronger industry-academe collaboration.
George Sorio, chair of the Metro Clark ICT Council and NICP, said the voice components of the industry, like call centers, have matured.
“The Philippines has big chances of excelling in n on-voice components like software and web development as well as engineering services because of Filipino creativity and English proficiency,” Sorio said.
Also at the launch, officials of the state-owned Clark Development Corp. (CDC) vowed to make the Clark Freeport a “strong niche” for the IT-BPO industry.
The Angeles City-Clark-Mabalacat area is among the country’s top 10 “new wave cities” for outsourcing outside of Metro Manila where 80 percent of the big companies in the offshoring and outsourcing sector are located.
Clark, some 80 kms north of Metro Manila, offers business and logistical advantages through tax incentives and reliable utilities, CDC executive vice president Philip Panlilio said.
The CDC has spent P1.6 billion to improve the freeport’s power infrastructure, CDC assistant vice president Bernie Angeles said.
Ibrahim estimated that Clark’s absorptive capacity for IT-BPO employment can reach between 35,000 and 50,000.
To date, more than 30 IT and telecommunication companies in Clark employ 9,948 workers, making it the second biggest job generator at the freeport after the electronics sector as of May 2009, documents obtained by Punto Central Luzon showed.
The IT sector in Clark posted the highest employment rate between 2008 and 2009, displacing the garment sector which posted job losses of 3,761.
“Surprisingly, it got stronger. Lalong lumaki (it got bigger),” Commissioner Ramon Ibrahim of the Commission on Information and Communication Technology said at the launch of the Metro Clark ICT Council, which will host the National ICT Conference of the Philippines (NICP) on Nov. 5-7 this year.
“The local growth is primarily because of the crisis. Companies in North America and Europe have realized that the only way they can compete is to cut cost. The Philippines does not only provide low cost but also good quality work,” Ibrahim said.
While the Philippines lost large contracts during the first two quarters, he said it has been “getting more” small contracts in software developments and back-office operations for financial, accounting and human resources support.
According to him the industry will meet its target of 20 percent growth by end 2009. In real terms, that means 150,000 new jobs, raising the industry’s employment level to 500,000 to 550,000 by year-end.
He said revenues are expected to rise from $6.1 billion to $7.2 billion by end-2009.
“The biggest challenge is the availability of people. We’re running out of graduates who are competent in English, have analytical ability and have mindset for quality work,” he said.
This, he said, is being addressed by stronger industry-academe collaboration.
George Sorio, chair of the Metro Clark ICT Council and NICP, said the voice components of the industry, like call centers, have matured.
“The Philippines has big chances of excelling in n on-voice components like software and web development as well as engineering services because of Filipino creativity and English proficiency,” Sorio said.
Also at the launch, officials of the state-owned Clark Development Corp. (CDC) vowed to make the Clark Freeport a “strong niche” for the IT-BPO industry.
The Angeles City-Clark-Mabalacat area is among the country’s top 10 “new wave cities” for outsourcing outside of Metro Manila where 80 percent of the big companies in the offshoring and outsourcing sector are located.
Clark, some 80 kms north of Metro Manila, offers business and logistical advantages through tax incentives and reliable utilities, CDC executive vice president Philip Panlilio said.
The CDC has spent P1.6 billion to improve the freeport’s power infrastructure, CDC assistant vice president Bernie Angeles said.
Ibrahim estimated that Clark’s absorptive capacity for IT-BPO employment can reach between 35,000 and 50,000.
To date, more than 30 IT and telecommunication companies in Clark employ 9,948 workers, making it the second biggest job generator at the freeport after the electronics sector as of May 2009, documents obtained by Punto Central Luzon showed.
The IT sector in Clark posted the highest employment rate between 2008 and 2009, displacing the garment sector which posted job losses of 3,761.
