A Preliminary Study on the Information Technology-Business Processing Management (IT-BPM) Industry in CALABARZON: Opportunities, Challenges, and Problems

Authors

  • Milo Placino
  • Joanna Paula Ellaga
  • Mari Jane Lee
  • Herminia Babia
  • Josephine Camson
  • Nicanor Guinto
  • Nordelina Ilano
  • Nathalie Oblena
  • Julia Lea Radovan
  • Necita Delsi Sabas
  • Judith Sarabia
  • Arsenia Abuel

Keywords:

information technology-business processing management (IT-BPM), business process outsourcing (BPO), infrastructure, human capital, industry roadmap, inclusive growth

Abstract

Recognizing the role of State Universities and Colleges (SUCs) in the region as training ground of the region’s labor force, the RDC-IPG, together with the Department of Trade and Industry (DTI), and the National Economic and Development Authority (NEDA), convened the SUCs to spearhead preliminary studies on the five identified critical industries in the region. The studies are expected to offer pragmatic academic perspectives to the industry roadmaps. This research is descriptive in nature utilizing the case study method. A focused interview using the questionnaire developed by the Philippine Association of State Universities and Colleges (PASUC), in complementary with secondary data gathering. However, there were limitations as to the information disclosed and the number of participants due to some potential legal ramifications. The participating companies in the survey report that they are generally engaged with clients as contact centers, comprising 30%, for back-office work, which is another 30%, for software development, 30%, and as digital content providers, which suggests that traditional business processing outsourcing remains to be the strength of IT-BPM companies. In terms of services, most of the respondents indicated thatbusinesses offer pure services anchored on people. While 80% of the companies rely on equity financing and profit margins have steadily grown for the last three years. Companies were looking for a multi-skilled, flexible, innovative and creative workforce. On the other, are hand infra-related issues are present. While in the governance aspect, companies ensure transparency in operations. Likewise, on environmental concerns, the participants responded positively through the practice of proper waste disposal in their respective in the workplace. Generally, the study pointed out a positive outlook on business operations in CALABARZON with considerable human and financial capital, and easy-to-comply government requirements. Among other provinces in the region, Quezon and Rizal mainly need infrastructure improvement. Security facelift is recommended to concerned Local Government Units (LGU) to provide welfare for the personnel working on the graveyard shift. LGUs may also work closely with the utility providers, while educational institutions may need to review curricular offerings regularly to ensure producing graduates meet the industry’s demand.

Published

2019-12-18