Huwebes, Pebrero 16, 2017

The Role of the Government in the Booming IT-BPO Industry in the Philippines

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There is no doubt about it: the Information Technology-Business Process Outsourcing (IT-BPO) is one of the fastest rising industries in the country today. With 1.2 million direct jobs created over the years, it is no wonder why the Philippines currently holds the title “BPO Capital of the World.” While there are several factors behind this global success, big part of it comes from the continuous efforts of the government in boosting the said sector.

Clearly, the government recognizes the IT-BPO’s significant contribution to the country’s growth. This was made apparent in its active participation to support the sector through monetary and policy interventions. These interventions ensure that the actions and policies being created in the industry are aligned to the vision of the country’s inclusive growth.

As a result, the government’s actions attracted more investors to take part in the growing IT-BPO industry in the Philippines in the recent years. More contact centers offering services were established in the country, generating $22 billion in revenues in 2015. This made the sector the second largest source of income in the Philippines for that year.

Among the government’s actions and policies that helped boost the IT-BPO sector are as follows:



IT-BPO related TESDA courses


To further sustain the growth of the sector, the government, through the Technical Education and Skills Development Authority (TESDA), offers free courses that specifically target the skill sets required in the IT-BPO industry. Among these are voice and non-voice related trainings such as English language proficiency, foreign language proficiency, medical transcription finishing, animation, and other courses.

TESDA also partners with various groups like the Information Technology and Business Processing Association of the Philippines (IBPAP), the Healthcare Information Management Association of the Philippines, and the Animation Council of the Philippines to provide its scholars with quality education and training. The agency also urges the academe to include more BPO related courses in the curricula.


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Data Privacy Act of 2012


According to Department of Science and Technology – Information and Communications Technology Office Executive Director Louis Casambre, the RA 10173, or the Data Security Act of 2012, is a great measure to replicate the success of call centers to the other BPO segments. Industries like the healthcare and HR outsourcing where sensitive data are involved will benefit greatly from the passing of this law.

The Data Privacy Act makes the country compliant with international data security standards, which protect and preserve the confidentiality, security, and integrity of data gathered within the country. With this act, the IT-BPO sector ensures the safety of data, gaining the confidence of investors to operate their business in the country.
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Revised Special Economic Zone Act of 1995


One of the key contributions of the government in the success of the BPO industry is the revision of RA 916, or the Special Economic Zone Act. Then Department of Trade and Industry Secretary Mar Roxas lobbied the said revision in the congress, enabling buildings and floors to register as special economic zones.

The said revision allowed BPOs to operate and enjoy the privilege of being exempted from paying national and local taxes. Through this act, they only had to contribute 5% of their gross income as tax, resulting to more contact center and other services to take part in the country’s IT-BPO scene.

DICT Act of 2015

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With the creations of the Department of Information and Communications Technology through RA 10844, experts believe that this will bolster the IT-BPO sector in the Philippines.

According to Genny Inocencio-Marcial, executive director of IBPAP, the creation of the DICT ensures that public and private schools are equipped to train Filipino students with IT. Through the said agency, the country will be able to produce a workforce that is ready to provide services such as contact center, animation, and game development.

Marcial also believes that DICT will help in improving the internet connection and cyber security in the country. If such improvements happen, they will greatly power up several businesses in the Philippines including the IT-BPO industry.



If the government continues to support the industry, the IT-BPO will definitely become the leading player in driving the country’s inclusive growth. More investors will see how good it is to invest in a sector backed by the government. And when this happens, it is not impossible to see the country rising from its current state and surpassing the other leading South East Asian nations.



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