PARAÑAQUE CITY–On 28 September 2023, Department of Trade and Industry (DTI) Secretary Fred Pascual highlighted the significance of forging strategic partnerships between the public and private sectors in shaping the future of the IT-BPM industry during the International IT-BPM Summit (IIS) held at Okada, Manila. The DTI Chief emphasized that collaborations and partnerships are instrumental in driving the growth, innovation, and economic development of the IT-BPM sector in the country.Thank you for reading this post, don't forget to subscribe!
In his discussion, Secretary Pascual stressed, “The DTI through our Board of Investments (BOI) is working in collaboration with other government agencies such as the Department of Information and Communications Technology (DICT), the academe, and other industry stakeholders to foster an enabling environment for the sustainable growth and development of the IT-BPM industry.”
In line with the Department’s science, technology, and innovation-driven (STI) strategy, the trade and industry chief reported that the DTI has taken proactive steps to facilitate the digital transformation of industries, particularly the IT-BPM sector. He also emphasized that the whole-of-government is implementing initiatives for upskilling and reskilling of the Filipino workforce through capacity-building to make them globally competitive.
Following the growing opportunity for high-value services, Secretary Pascual also underscored the critical role of the IT-BPM industry in coping with the emerging trends present in Industry 4.0 technologies. With the high demand for 4.0 technologies such as Big Data and Analytics (BDA), Internet-of-Things (IoT), Automation and Artificial Intelligence (AI), and Cloud Computing, the IT-BPM sector is poised for greater development.
The DTI Secretary also cited that under the Philippine Development Plan (PDP) 2023-2028, the Information Technology – Business Process Management (IT-BPM) industry is targeted to be reinvigorated as part of the services sector. He further added that by 2028, the IT-BPM sector is expected to add one million direct jobs and an additional 1.1 million indirect positions with annual revenue growth of 8% over the next six years.
Secretary Pascual emphasized that the IT-BPM sector is also crucial in the country’s technological transformation and innovation. He said that the DTI-BOI is committed to establishing an all-inclusive digital infrastructure, which is vital in ensuring a conducive business environment for the IT-BPM industry.
Further, the DTI Chief presented the current reforms undertaken by the government to increase investments in the IT-BPM sector. He cited the incentives for the sector under Tier 1 of the Strategic Investment Priority Plan (SIPP) to encourage investment and innovation within the industry. These include (1) Income Tax Holiday (ITH) of 4 to 7 years, depending on the location and industry tier; (2) Enhanced Deduction (ED), Depreciation allowance (10% for buildings, 20% for machinery); Special corporate income tax rate (SCIT) 5% SCIT for 10 years for export enterprises; and, (4) duty-free importation of capital equipment, raw materials, spare parts, and accessories.
The trade and industry chief also reported the signing of a five-year national development program for the IT-BPM industry. This program will focus on upskilling and reskilling potential and existing workforce, marketing and promotion, talent hub, and policy and regulatory support for strengthening the industry.
The IIS is organized annually by the IT and Business Process Association of the Philippines (IBPAP) to showcase the breakthrough developments and outstanding accomplishments of the IT-BPM industry in the country. It serves as an avenue for IBPAP’s stakeholders to gain new insights into the advancement of the industry and address pressing issues of the country’s IT-BPM sector.
Highlighting the support of the Department to build the Philippines as a prime location for IT-BPM services, Secretary Pascual stressed, “To this end, collaborative engagements between the public and private sectors, as well as other stakeholders, are of key importance in bridging the initiatives of the government and industry on expanding the IT-BPM sector. Further, ensuring the development of skills that are responsive to the ever-changing needs of the global IT-BPM landscape and exploring the role of emerging technologies in expanding the IT-BPM capabilities is crucial in facilitating the development of the sector.” END.