IT-BPM sector sees revenues hitting $40 billion in 2025 

The Philippine information technology and business process management (IT-BPM) sector is on track to reach $40 billion in revenues this year as investor confidence in the industry remains robust despite the looming threat of the United States’ (US) tariff policy, according to a report by Manila Bulletin.

IT and Business Process Association of the Philippines (IBPAP), the country’s leading IT-BPM group, said the projected growth in 2025 is five-percent higher than the $38 billion the industry recorded last year.

IBPAP is also projecting a four-percent growth in employees, from 1.82 million in 2024 to 1.9 million this year.

IBPAP President and Chief Executive Officer (CEO) Jack Madrid is confident that the local industry will reach these numbers as it has yet to see any direct impact from the protectionist policies of the US.

“As of this time, we still see more demand for offshoring to the Philippines from North America, more than we can supply,” said Madrid.

“I think we need to continue to take advantage of this mismatch and work on the upskilling so that we can maximize our market share,” he added.

Unlike the first term of US President Donald Trump where the IT-BPM sector was affected, Madrid said the industry is significantly stronger to cushion potential impacts of Trump’s new tariff policy during his second term.

He explained that it would be harder for companies that are currently offshoring in the Philippines to transfer their workers elsewhere.

“I think the Philippines' position has become stronger in the past 10 years,” the official said.

“It's more complex. I think the employers and the investors know that. Where are you going to move this work? It's certainly hard to move it back to the US,” he noted.

Currently, North America, which includes the US, is still the top region investing in the local industry, comprising a dominant 70 percent of the total number.

Madrid said the industry is keen on attracting destinations outside the region, particularly in other English-speaking countries such as Australia.

The local talent pool’s strong proficiency in the English language has long been cited as one of the most vital assets for companies looking to expand in the Philippines.

“Aside from English, I think we also need to talk about our agents' domain skills…I think the success of the industry will be not just about our communication and English fluency but also our strength in domain skills,” he said.

Manila Bulletin reported earlier that foreign investors in the renewable energy (RE) sector are slowly moving away from the country due to regulatory restrictions, particularly at the level of local government units (LGUs).

Sought for comment, Madrid said the industry is largely unaffected by this trend, noting that a new locator and investor visits his office every week.

However, on the part of its members, IBPAP Chief Operating Officer (COO) Celeste Ilagan said there are IT-BPM firms that are still encountering problems with certain LGUs.

Ilagan said these concerns were supposed to be addressed by the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, which was enacted last year.

“It really revolves around how the LGUs interpret the provisions of CREATE MORE in terms of incentives that the enterprises are entitled to. So these problems with LGUs continue to be there,” she said.

In particular, Ilagan noted that under CREATE MORE, a company is already paying the two-percent tax on gross income, meaning they will no longer pay other fees and charges.

Some LGUs, however, continue to impose their respective fees and charges through their own ordinances.

Ilagan said there is a proposed joint memorandum circular by the Department of Trade and Industry (DTI), the Department of Finance (DOF), and the Department of the Interior and Local Government (DILG) to help address these concerns.

The circular would order LGUs how they should follow the imposition of fees, charges, and other requirements related to government permits and other documents.