Cybercrime threats jeopardize Philippine BPO growth: IBPAP
MANILA, PHILIPPINES — The Philippine business process outsourcing (BPO) sector faces significant cybersecurity risks that could impede its growth.
According to the IT and Business Process Association of the Philippines (IBPAP), the industry is grappling with the increasing threat of fraud and cybercrime, which casts doubts on the security of data managed by outsourcing firms.
IBPAP Chief Policy Officer Celeste Ilagan emphasized the urgency of the situation, stating, “It is to the country’s advantage that we, as an industry with the different subsectors, different BPO players, and individually, contribute to the resolution of this problem affecting the growth of the industry.”
She highlighted the potential impact on the industry’s ambitious goals, including the creation of 1.1 million jobs by 2028 and generating $59 billion in export revenue.
The association raised alarms last year over cyberattacks and the hacking of government data and IT systems. In response, a collaborative discussion involving the Department of Justice (DoJ), the Department of Information and Communications Technology (DICT), and other IT-BPM industry members took place last month to address the need for enhanced cybersecurity measures and fraud prevention.
DoJ Undersecretary Geronimo Sy called for updated laws and regulations to keep pace with cyber advancements and foster innovation.
Meanwhile, DICT Undersecretary Jocelle Batapa-Sigue advocated for the appointment of data protection officers within BPO firms and stressed the importance of providing training and equipment to combat cybercrime at the regional level.
The BPO industry is a vital economic driver in the Philippines, with IBPAP targeting a workforce of over 2 million by 2025, building on the 1.7 million employees at the end of 2023.
For 2024, the sector aims for a 7-8% increase in revenue to $39 billion and a similar growth rate in staffing.
However, the looming cyber threats underscore the need for a robust and coordinated response to ensure the safety of data and the continued prosperity of the BPO industry.
