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AS
unemployment is expected to rise as a result of the
weakening economy, more and more local government units
(LGUs) are asked to turn to information and
communications technology (ICT) as a source of steady
employment and as a source of economic stimulus,
preliminary data gathered by Canada-based research firm
XMG shows.
In its
mid-year review of the Philippine ICT industry for 2008,
XMG found that total ICT industry employment is at
around 340,000 to 360,000 and more than 70 percent of
employment opportunities in this sector are located in
Metro Manila.
XMG also
estimated that an additional 310,000 to 340,000 will be
needed up to 2010 “to meet ramped-up demand as expansion
plan and global pipeline deals close.”
The
research firm also projects that LGUs now “have the
opportunity to attract large ICT operators by providing
tax breaks, infrastructure and telecommunications
development and customized incentives.”
Based on
the Employment Lifestyle Index conducted in the second
quarter of 2008, XMG found that an “average agent
working in the ICT industry would have a basic salary
ranging from P13,000 to P21,000, depending on
experience, type of skill, account and site location.”
Using a
typical medium operator that employs between 1,000 to
3,999 full-time workers as an indicator, XMG estimates
“an infusion of P42 million into the local economy per
month from basic salaries alone.”
The
index also shows that 42 percent of workers’ incomes are
spent on food, 14 percent on housing, 12 percent on
education, 11 percent on clothing, six percent on
miscellaneous expenses like gifts and contributions, 8
percent on various recreation activities, 2 percent on
transportation and communications, and 5 percent on
other unspecified items.
XMG also
found that IT industry agents have a relatively higher
disposable income compared with those holding a regular
day job in the country.
Industry
analyst Benedict Ferrer said “LGUs should begin to
realize the potential economic impact of IT, call center
and business process outsourcing companies in their city
as a prime mover of development and progress or risk
losing opportunity such as sustainable livelihood
provided by the industry.” Ferrer also adds that “LGUs
must first understand the nature of the industry and
various underlying variables imperative to attract and
market their respective city.”
As the
industry grows rapidly, more and more ICT Tier-2 cities
like Cebu, Baguio, Clark, Subic and Davao are ramping up
marketing campaigns geared towards attracting locators,
the XMG researchers found.
Most
LGUs are taking hold of this opportunity to create a
viable source of constant employment in their localities
as more companies relocate or expand outside Metro
Manila, where costs are manageable and talent
competition is less intense.
XMG
recommends that LGUs learn to “understand from the
outset the needs of the industry and align their
strengths and incentives toward consummating a strategic
partnership with the industry to maximize the growing
opportunity the
ICT
industry have to offer.” |
