Inconsistent rules deter Philippine IT-BPM growth: IBPAP
MANILA, PHILIPPINES — The information technology and business process management (IT-BPM) sector in the Philippines faces a significant challenge due to inconsistent rules and regulations across local government units (LGUs), potentially driving away investors.
Jack Madrid, President of the industry group IT and Business Process Association of the Philippines (IBPAP), highlighted the issue during the association’s Industry Rebrand Launch, emphasizing the difficulties investors encounter at the LGU level.
“What is damaging is when these rules, which are mostly well written, are interpreted in different ways by different cities,” Madrid stated, pointing out that the challenge lies in the varying interpretations of otherwise clear laws and regulations.
Investors, described by Madrid as “very compliant corporate citizens,” seek clarity and consistency in regulations.
However, discrepancies in the processes for renewing local business permits and other regulatory interpretations led to penalties for some IT-BPM companies, tarnishing the country’s image as an investment destination.
Despite these challenges, Madrid remains optimistic, noting that such issues are not widespread but confined to a few cities.
The national government’s limited influence at the LGU level complicates efforts to address these inconsistencies, but IBPAP continues to engage with lawmakers to find solutions.
IBPAP recently launched a rebranding initiative to reshape public perceptions of IT-BPM jobs and highlight the industry’s career opportunities.
Madrid stated that addressing the talent shortage is a priority for the industry, with plans to grow the workforce to 1.84 million employees and achieve $40 billion in revenues by 2024.
The IBPAP chief also stressed the importance of maintaining the Philippines‘ position as a leading IT-BPM destination amid increasing global competition.
“This is really quite a pivotal time in our history amidst all the challenges. It’s not just India anymore that is looking at getting a piece of our market share. Countries like South Africa, Colombia in South America, Vietnam, Poland, and even Egypt are becoming known as IT-BPM destinations,” he stated.
Last month, IBPAP revealed that they are also revising their 2028 industry roadmap to realign the sector’s objectives with the advancements in artificial intelligence. They also renewed their pledge to catalyze the expansion of IT-BPM hubs across the country through the Digital Cities 2025 initiative.
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