According to the IT and Business Process Association of the Philippines (IBPAP), the IT-BPM industry has the potential to nearly double in size as its annual revenue is likely to reach $59 billion in 2028, reflecting a compound annual growth rate (CAGR) of 10.4%.
“The growth of the industry is a goal that we must all work toward as a collective, even as external and internal factors shape the opportunity landscape,” said Jack Madrid, president and CEO, IBPAP. “These include the global economy, overall demand for IT-BPM services, adopting hybrid work models, infrastructure development, supply of skilled talent, and favorable government policies.”
At a media briefing for the ongoing 14th International Innovation Summit (IIS), IBPAP disclosed that the Philippine IT-BPM industry recorded an estimated growth rate of 8.5%. And in the next six years, the group forecasts that the industry may create up to 1.1 million direct jobs, 54% of which will be in the countryside. This will bring the sector’s total headcount to 2.5 million by 2028.
“The Philippine IT-BPM sector is at the cusp of a new and exciting era, and the future that awaits us is the brightest that it has ever been. By 2028, the industry may be able to contribute up to 8.5% to the country’s gross domestic product (GDP),” Madrid said. “This is a significant feat that will need everyone’s support as we take this big leap forward, propelling this powerhouse sector and cementing the Philippines as the top investment destination for IT-BPM services.”
Highlighting the industry’s multiplier effect, IBPAP also projects generating up to three million indirect jobs for allied sectors such as retail, hospitality, infrastructure, transportation, and real estate.
“As a country, we are already known as a No. 2 experience destination across customer experience, employee experience, and user experience,” Madrid said. “We have the capability, if we achieve all our goals, to take on increasingly highly complex and highly skilled jobs, leading to a 13% increase per employee by 2028.”
Madrid emphasized that the first challenge is to increase the level of skill of the workforce and the upcoming generation of Filipinos who will join our industry.
IBPAP also highlighted the need for the government to create an enhanced business-friendly environment that is in line with global and local market macrotrends.
“These will help bring forth easier adoption of hybrid workplace models, uniformity in workplace incentives, and strengthen the Philippines’ cost competitiveness and overall ease of doing business,” IBPAP said.