The president of IT & Business Process Association of the Philippines (IBPAP) reported that its mid-year survey found talent and skills gap still remains to be the topmost concern in the country’s IT and business management industry in 2024.
“The demand for advanced digital skills like data analytics, programming, and machine learning, as well as soft skills and domain-specific skills in healthcare, accounting, and banking, outpaces our workforce’s current capabilities,” said Jack Madrid, CEO and president of IBPAP, during his welcome remarks at the IT-BPM Summit 2024.
“This talent gap is a critical threat to our industry,” he added.
Prior to this, Madrid revealed that the industry has shown 7% growth, and is expecting $38B revenue and a workforce headcount of 1.82 million in 2024.
While the industry could be tracking above the baseline, Madrid said that it is still “slightly short” of its aggressive goals.
“…This isn’t a setback–it’s a reminder of how far we’ve come and how much more we can achieve,” the IBPAP president said.
He is hopeful that, at this trajectory, the industry will be able to achieve its baseline target in 2028. Last year, the association said that it aims to add 1.1 million jobs and gain $59B in revenue in the said year.
To address these challenges, Madrid vowed that IBPAP will continue to do talent interventions like partnerships with the Department of Education, and TESDA.
Currently, the association is working with Google in giving certificates in IT Support, data analytics, cybersecurity, and AI.
Madrid also mentioned that the operating costs in the Philippines are “higher” than other destinations for IT-BPM.
“We’re actively pushing for the revocation of additional taxes, and we’ve initiated discussions on rising healthcare costs.The ease of doing business remains a significant concern,” he said.
Moreover, the IBPAP head is expecting the passing of the CREATE MORE bill, a measure aimed to invite more investors into the Philippines by lowering the taxes on local and foreign companies.
Madrid emphasized the IT-BPM sector’s “indispensable” role to other industries, urging the public to think of the sector’s potential if the concerns of talent supply and ease of doing business were addressed.
“If we don’t, the critical threat becomes a reality,” he added.
The 16th International IT-BPM Summit 2024 was held at Okada Manila from October 2 to 3, 2024. Hosted by the IBPAP, the conference had over 800 attendees coming from the industry, the government, and the academe.
IBPAP has over 400 companies as members and six other associations and is currently the country’s leading association for the IT-BPM.
