MVP backs 5-year, P40-billion subsidy for IT-BPM sector

by Richmond Mercurio (The Philippine Star) – Nov 3, 2018

MANILA, Philippines — PLDT Inc. chairman Manuel V. Pangilinan has expressed support for the local information technology and business process outsourcing industry’s call to receive an P8-billion subsidy per year for the industry’s skills upgrade program.

“I understand the broader IT industry here is in discussion with government for a P40-billion, five-year IT skills upgrade program. We should support this, because a vibrant IT industry would be a great competitive differentiator in the region,” Pangilinan said.

“It is important that the IT industry achieve its goals in 2022 — about two million direct hires, 7.6 million indirect employment, 500,000 jobs outside NCR, $40 billion dollars in revenues, and a 15 percent share of the global IT-BPM market,” he said.

Pangilinan said while the challenges facing the industry are formidable, its prospects “are not altogether bleak.”

“These aspects of humanity guarantee that people cannot be completely replaced. However, to remain relevant, you have to level up with the digital trends happening with your customers. New and more sophisticated services in the fields of finance, health services, education, and cyber security require higher forms of knowledge and skills from the industry,” he said.

“Additionally, customer service requirements have also become more demanding. They want real-time, quick, and empathetic answers to their questions, and solutions to their issues,” he said.

Information Technology and Business Process Association of the Philippines (IBPAP) president and CEO Rey Untal earlier said the IT-BPM industry continues to be a sunrise industry and it finds itself once again in an infancy period due to advancements in technology brought about by global digital transformation and disruption.

He said these advancements would inevitably impact the Filipino workforce as well as future graduates.

As such, IBPAP is asking the government for a P40-billion five-year subsidy, or P8 billion a year, for the industry’s skills upgrade program under the Tax Reform for Attracting Better and High Quality Opportunities Bill, the second package of the government’s tax reform program.

The fund is seen to help keep the country’s IT-BPM sector competitive as other countries are also training its people in different skills with government support.

Under the TRABAHO Bill approved on third and final reading by Congress, the government is allocating P5 billion annually for the sector’s skills upgrade, lower than the P8 billion the industry is calling for.

The amount will be used solely to pay for formal academic or training programs of accredited private or public schools and training centers.

IBPAP vice chairman Catherine Ileto earlier said the P5 billion fund for the skills upgrade of the IT-BPO industry under the TRABAHO Bill is still a welcome support from the government and would be a good start.