LGUs need to step up efforts to attract IT investors
by Lawrence Casiraya
from INQUIRER.net
MANILA, Philippines — Local government units (LGUs) will need to step up in order to accommodate the rapidly expanding IT services industry, according to industry analyst XMG.
Based on its midyear report, XMG said the industry employs between 340,000 and 360,000 people at present, more than 70 percent of which are located in Metro Manila.
XMG estimates an additional 310,000 to 340,000 people will be needed in less than two years to meet expansion plans, especially those in the outsourced services industry.
According to XMG, LGUs are now faced with an opportunity to attract large investors providing tax breaks, infrastructure and telecommunications development and customized incentives to lure both captives and non-captive outsourcing firms.
“LGUs must first understand the nature of the industry and various underlying variables imperative to attract and market their respective city,” said XMG analyst Benedict Ferrer.
Based on XMG’s “Employment Lifestyle Index” conducted in the second quarter, an average agent working in the IT services industry would have a basic salary ranging from P13,000 and P21,000 depending on experience, type of skill, account and site location.
XMG estimates that a medium-sized outsourcing firm that employs between 1,000 and 4,000 people is capable of infusing P42 million pesos into the local LGU economy, taking into account dependent livelihood industries such as food and housing.
“LGUs should begin to realize the potential economic impact of IT, call center and BPO companies in their city as a prime mover of development and progress or risk loosing opportunity such as sustainable livelihood provided by the industry directly or indirectly,” Ferrer said.
The Commission on Information and Communications Technology (CICT) has been working with the private sector in certifying so-called next-wave cities that can accommodate investors.
The CICT has so far listed more than 20 cities nationwide ready for business process outsourcing or BPO investors.
