Arthur Fuentes

Filipino IT-BPM workers. Photo courtesy of  IT and Business Process Association of the Philippines/Handout

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IT-BPM workers

ABS-CBN News

<div> </div>MANILA — The Philippines is leading the world in terms of growth in the IT-BPM sector, but the country also needs to move up the value chain if it is to sustain this expansion, an industry group said on Wednesday.The IT and Business Process Association of the Philippines (IBPAP) said the country&#x27;s IT-BPM sector has so far grown by 5 percent in 2025, outpacing other countries. IBPAP said the country&#x27;s IT-BPM sector is projected to hit $42 billion in revenues next year, and employ 1.97 million workers. It also stands to gain fromThe Philippine IT sector can also take advantage of the integration of agentic AI into global business services and customer experience. But IBPAP President and CEO Jack Madrid said the Philippines must move up the value chain to seize these opportunities.“We are outpacing global growth, but growth alone will not secure our future. Transformation will,” Madrid said.The market for global capability centers (GCCs) is projected to hit $155 billion globally by 2027, with millions of new jobs created, IBPAP said.GCCs are offshore units created by multinational corporations to provide specialized services from finance and HR to customer support, IT, data analytics, marketing, and digital services, across multiple industries.IBPAP said that the Philippines, with its talent pool, cost efficiency, and mature ecosystem, is well-positioned to expand its role as a GCC hub driving enterprise-wide innovation.“We can be both: a world-class outsourcing hub and a GCC hub powering enterprise transformation,” Madrid said.The global shift to AI systems also provides an opportunity for the sector. IBPAP said that only 12 percent of Philippine firms currently report high AI maturity, while nearly half are already embedding AI in some form. But by 2028, more than 70 percent are expected to reach high maturity.“Our winning formula is blending AI with Filipino ingenuity, empathy, and trust,” Madrid added.IBPAP said that to sustain the Philippines’ momentum as a global leader, the industry must rewire for higher-value work through six strategies:<ul style="margin-left:20px;list-style-type:disc"><li>Align policy, talent, and markets – drive collaboration between government, academe, and industry.</li><li>Expand innovation beyond Metro Manila – build regional hubs and enable countryside growth.</li><li>Evolve leadership into co-creators – empower Filipino leaders to shape global solutions.</li><li>Scale the Philippines’ GCC footprint – grow GCCs into strategic engines of capability and innovation.</li><li>Make talent future-ready – equip the workforce with digital fluency and problem-solving skills.</li><li>Keep human impact at the core – ensure technology enhances, not replaces, Filipino ingenuity.</li></ul><div> </div>The industry currently contributes around 8 percent of GDP, IBPAP said.

The Philippines is leading the world in IT-BPM growth, but the country also needs to move up the value chain if it is to sustain this.

The Philippines is leading the world in IT-BPM growth, but the country also needs to move up the value chain if it is to sustain this.

Philippines leads global IT-BPM growth with sector seen hitting $42-B next year

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Philippines leads global IT-BPM growth with sector seen hitting $42-B next year

Arthur Fuentes,

ABS-CBN News

Published Sep 24, 2025 11:26 AM PHT

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IBPAP

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