The document discusses the IT-BPO and POGO industries in the Philippines. It provides background information on the sectors, key events and regulations. The industries have experienced significant growth and have boosted the real estate sector through demand for office and residential spaces. However, the COVID-19 pandemic impacted both industries through strict lockdowns and community transmission concerns. The industries are recovering with the BPO sector leading office space demand and expected to contribute to economic growth in 2022.
The document discusses the IT-BPO and POGO industries in the Philippines. It provides background information on the sectors, key events and regulations. The industries have experienced significant growth and have boosted the real estate sector through demand for office and residential spaces. However, the COVID-19 pandemic impacted both industries through strict lockdowns and community transmission concerns. The industries are recovering with the BPO sector leading office space demand and expected to contribute to economic growth in 2022.
The document discusses the IT-BPO and POGO industries in the Philippines. It provides background information on the sectors, key events and regulations. The industries have experienced significant growth and have boosted the real estate sector through demand for office and residential spaces. However, the COVID-19 pandemic impacted both industries through strict lockdowns and community transmission concerns. The industries are recovering with the BPO sector leading office space demand and expected to contribute to economic growth in 2022.
The document discusses the IT-BPO and POGO industries in the Philippines. It provides background information on the sectors, key events and regulations. The industries have experienced significant growth and have boosted the real estate sector through demand for office and residential spaces. However, the COVID-19 pandemic impacted both industries through strict lockdowns and community transmission concerns. The industries are recovering with the BPO sector leading office space demand and expected to contribute to economic growth in 2022.
AND POGO INDUSTRIES BY ELAINE OCAMPO, KRISTINA RIVERA & AIKKA WATANABE
REM 144 CURRENT ISSUES
Information technology- business process outsourcing
One of the most dynamic and
fastest growing sectors in the Philippines
Plays a major role in the
country's growth and development
IT-BPO INDUSTRY BPO Industry Sectors Contact Centres Back Office Data Transcription Animation Software Development Engineering Development Digital Content Knowledge Process Outsourcing (KPO) Game development Information Technology Outsourcing (IT) Engineering Services Outsourcing (ESO) Outsourcing the common business strategy because of lower cost of producing specific
IT-BPO goods or services in another country
In the Philippines, third-party outsourcing hold
INDUSTRY the most industry presence POGO POGOs, or Philippine Offshore Gaming
INDUSTRY Operators, are companies that provide
online gaming services limited to Philippine Offshore Gaming Operator foreigners.
These games of chance use a network or
software, and authorized players who have a registered gaming account with the POGO can participate.
POGO INDUSTRY SECTORS:
Customer Relations Strategic Support IT Support Gaming Software Platform Providers Live Studio Streaming Providers BRIEF 24 FEBRUARY 1995
HISTORY The Special Economic Zone Act establshed the
Philippine Economic Zone Authority (PEZA) passed by the Philippine Congress. IMPORTANT EVENTS
NOVEMBER 2001
Then President Gloria Macapagal Arroyo visit the
United States to address an Information Technology Forum in New York & 6 Memoranda of Understanding (MOUs) were signed.
2004-2010
The Mediium-Term Philippine Development Plan set
a target to create 1.5 million jobs a year, a total of 10 million jobs by 2010. THE OMNIBUS INVESTMENT ACT The Omnibus Investments Code of 1987 (EO 226) was amended to include Information and Communiations Technology (ICT) in the 2006 Investment Priority Plan.
2010 The Philippines declared as the world's BPO capital.
2011 The BPO industry becomes one of the biggest and fastest growing job providers in the private sector. 2003 Illegal employment approximately 80,000 overseas workers.
2016 President Rodrigo Duterte Executive Order No. 13 of 2016 (signed Feb 2017)
2021 RA 11590 was enacted 2004 - PRESENT IT & BUSINESS IBPAP was created as the primary trade & PROCESS advocacy group of the Philippines' IT-
ASSOCIATION Business Process Management (IT-BPM)
sector.
PHILIPPINES With over 300 members & 6 partner
associations
Plays an important role by working with
stakeholders in the government and academe
Assists investors in setting up operations
easily and quickly in the Philippines POGO VS BPO According to IBPAP, 4 key differences between POGOs and BPOs: PEZA Registered - Pagcor Registered While both share Offshoring nature, POGO's reason is because of disallowance of the countries origin to do gambling IT -enabled jobs create higher value BPOs comes to the Philippines for higher leverage through human capital, POGOs hire majority of foreign workers CONNECTION TO THE REAL ESTATE INDUSTRY The BPO industry boosted jobs for Filipinos & increased demand for office spaces in prime business locations and "next-wave" cities.
Commercial & office sectors are
driven by the upsurge of BPO companies setting up in the Philippines.
Strong demand for office spaces
from contact centres
Increase in building construction and
office spaces notably in Makati, Ortigas, Libis, Taguig, Cebu, Davao and other areas outside of Metro Manila CONNECTION TO THE REAL ESTATE INDUSTRY The influx of foreign workers coming into the Philippines has spurred a new demand for housing.
In addition to the rapid demand for
commercial or office spaces for online gaming businesses, prices in the local residential sector have gone up both for mid-range and luxury condos.
This has also created
supplementary benefits for other industries. BEFORE COVID-19 In 2019, the BPO industry contributed to $26 billion to the Philippine economy where 1.3 million were employed in over 1,000 firms.
The rise of digital platform has facilitated freelancing with an
estimated 1.5 million Filipino freelance workers on these platforms.
The Philippines has the world's largest concentration of call centre
workers. BEFORE COVID-19
The POGO industry contributes around P551 billion to the Philippine economy yearly, overtaking traditional information technology and business process management (IT-BPM) companies, according to estimates of real estate services firm Leechiu Property Consultants. DURING THE PANDEMIC The Philippines imposed Enhanced Community Quarantine on 16 March 2020.
The BPO industry remained exempted but affected by the stricter lockdown.
BPO workers and offices have been identified as hubs of community transmissions nationwide.
According to the Asia Pacific Real Estate Association (APREA), the BPO sector is a catalyst for the property industry growth, continuing real estate businesses in the Philippines.
Amid the pandemic, Lobien Realty Group stated that the BPO sector has the most number of office space demand, overtaking the Philippine Offshore Gaming Operators (POGOs). DURING THE PANDEMIC According to IBPAP, the IT-BPO industry expects a recovery in terms of employment and revenues in 2022.
Providing support for the property industry, the
continued growth of the BPO sector will boost real estate investment trusts (REITs) in the Philippines.
The recovery of the BPO sector will contribute to
optimistic trends in the central business districts and the infrastructure developments, prompting strong real estate demand.
According to David Leechiu, the BPO industry has seen
similar levels last seen in 2016 for local office demands before the influx of POGOs (about 647,000 square metres annually).
Property leasing transactions in various stages of
negotiation have been the highest since the start of the pandemic at 451,000 square metres in the second quarter of 2022.
