ITBPM industry sees flat growth
NEWS
Everest Group Partner H. Karthik projects that the revenues of the IT-Business Process Management (IT-BPM) industry of the Philippines will likely remain flat in 2020. Based on the IT Business Process Association of the Philippines (IBPAP) Roadmap 2022, industry headcount is projected to grow between 2.7% to 5% annually until 2022. During the period, revenue is forecasted to rise at an annual growth of3.2% to 5.5%. This translates to USD27.88 billion to USD29.09 billion (PHP1.34 trillion to PHP1.4 trillion). IBPAP President and CEO Rey Untal believes that the growth should be supported by digital transformation, a skilled workforce, and sustained support from the government. These include the improvement of telco infrastructure, implementation of talent development programs, and investments in cybersecurity.
RESEARCH VIEW
In 9M 2020, Colliers recorded 105,000 sq metres (1.1 million sq feet) of office deals from the outsourcing sector, down 66% from 309,000 sq metres (3.3 million sq feet) in 9M 2019. Due to the pandemic, outsourcing firms have started to consider rationalizing their office footprint in the short-medium term as they implement remote working for their employees. Colliers believes that tenants are adopting a wait-and-see approach and this is resulting in slower office space absorption from the outsourcing sector. Colliers recommends that firms actively scout for expansion sites in non-core locations where office lease rates are about 30% to 50% lower compared to ffice spaces in major business districts. This is particularly important for firms that are planning to implement the hub-and-spoke model for a more dispersed office strategy.
Robinsons Land hotel secures BoI approval
NEWS
The Board of Investments (BOI) has approved Robinsons Land Corporation’s (RLC) application for incentives for its PHP4.1 billion (USD85.3 million) Westin Sonata Palace Hotel in Mandaluyong City. The hotel will likely feature an air filtration system and information technology (IT) solutions such as online bookings, contactless payments, thermal scanners, and disinfecting stalls with sensors. RLC plans on including these components to reduce cross-contamination and ensure the safety of guests. The hotel is scheduled to be completed in March 2022 and will offer 303 rooms; meetings, incentives, conferencing and exhibition (MICE) facilities; a spa; and restaurants.
OFWs carry pandemic economic load, raise remittances in October
NEWS
Data from the Bangko Sentral ng Pilipinas (BSP) central bank showed that personal remittances from Overseas Filipino Workers (OFWs) reached USD3.04 billion (PHP145.92 billion) in October 2020, up 2.5% YOY. In 10M 2020, personal remittances reached USD27.35 billion (PHP1.31 trillion), down 1.0% from USD27.61 billion (PHP1.33 trillion) in the same period of 2019. The decline is slower than the -1.4% recorded at the end of September 2020. In addition, cash remittances in October 2020 grew by 2.9% to USD2.75 billion (PHP132 billion) from USD2.67 billion (PHP128.16 billion) in October 2019. This brings total cash remittances for the first 10 months of 2020 to USD24.63 billion (PHP1.18 trillion), down 0.9% YOY. The United States accounted for 40.2% of total remittances followed by Singapore, Saudi Arabia, Japan, and the United Kingdom.
