INTHEBLACK August 2024 - Flipbook - Page 37
Photo by ampueroleonardo/E+ via Getty Images.
Information technology – business
process management (IT-BPM), a subset
of BPO, contributed over US$35 billion
(A$53 billion) to the economy in 2023,
says Jack Madrid, president and CEO
of the IT and Business Process Association
of the Philippines (IBPAP).
Madrid predicts that IT-BPM will generate
more than US$59 billion (A$89.7 billion) in
revenue and comprise 2.5 million full-time
equivalent roles by the end of the decade.
“I am really excited about 2025,” Madrid
says. “This is when we will cross the 2 million
jobs level. That is why it is significant. It took
almost 20 years to hit 1 million jobs, and we
are attempting to do the second million in
less than six years.”
While adding jobs, Madrid also says the
industry will leverage generative artificial
intelligence (AI), which he claims has
the potential to boost productivity by
at least 50 per cent. IBPAP has created
an AI Council to help drive the opportunities
from the technology.
Companies with 100 per cent of their staff
onsite can take advantage of tax incentives
under the Corporate Recovery and Tax Incentives
for Enterprises (CREATE) Act, a major piece
of legislation that took effect in 2021.
Another growth driver is the the
Agreement Establishing the ASEANAustralia-New Zealand Free Trade
Area (AANZFTA) (FTA) – to which
the Philippines is a signatory – which
has progressively done away with
import and export tariffs between
participating nations.
Above:
The beach at
El Nido, Port Barton,
Palawan, Philippines.
YEAR-ON-YEAR AVERAGE OVERALL INFLATION RATES
5.8%
2.4%
2.4%
3.9%
2019
2020
2021
6.0%
3.5%
2022
2023
2024*
Source: Philippine Statistics Authority, Consumer Price Index and Inflation Rate, June 2024
*Year to date average, January to June 2024
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