IT-BPM sector braces for impact of COVID-19 on headcount, revenues

The Philippine IT and business process management (IT-BPM) sector is bracing for a reduction in headcount and revenues, as it deals with the economic fallout stemming from the coronavirus disease 2019 (COVID-19).

According to the Information Technology & Business Process Association of the Philippines (IBPAP), the global pandemic will hit the industry both in terms of employee count and revenues.

"Currently, the sector is dealing with the global economic fallout caused by the COVID-19 pandemic," it said in an emailed statement.

"Domestically speaking, this will have an impact on 2020 headcount and revenue projections and will also modify prevailing work and service models within the industry," it added.

Economic managers earlier on Wednesday said they expect economic losses to amount to as much as P2 trillion due to the deadly illness, and measures mounted to curb its spread.

Metro Manila, along with several "high-risk areas," has been on lockdown since March 17, with the enhanced community quarantine already having been extended several times to last until May 31.

At present, the IBPAP said some 58% of their employees work from home while 15% deliver work as part of the skeleton staff housed on-site or in nearby hotels.

This is an increase from the 40% workforce on work-from-home arrangements and 10% skeleton staff weeks ago.

"As a provider of essential services, the sector was able to continue operations and increase capacity throughout the ECQ with the help of the Department of Trade and Industry (DTI), the Philippine Economic Zone Authority (PEZA), and the Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID)," said the IBPAP.

For 2019, the IBPAP said full-time employees (FTEs) increased by 71,000, bringing the total industry headcount up by 5.8% to 1.3 million.

Meanwhile, the sector recorded revenues of $26.3 billion, reflecting a 7.1% growth from the previous year.

"These numbers show that industry growth is closer to the high range of the recalibrated figures of Roadmap 2022," said IBPAP President and chief executive officer Rey Untal.

"It’s also a testament to the IT-BPM sector’s resilience and tenacity—that despite global and domestic headwinds, the Philippines remains competitive, relevant, and thriving," he added. -MDM, GMA News