Philippines' IT-BPM revenues seen rising to over $40 billion by end-2025

The Philippines' information technology and business process management (IT-BPM) sector is on track to generate more than $40 billion in revenue by the end of 2025, the industry's association said, a 5.2% increase from last year's $38 billion.

The IT and Business Process Association of the Philippines (IBPAP) president Jack Madrid said revenue should cross $40 billion by the end of the year. "In 12 to 18 months, we’ll be in the $40 billion-plus range. That’s where we’re headed," he said.

IBPAP also aims to increase employment in the sector to 2 million jobs within the next 12 to 18 months, a 10% rise, banking on talent development initiatives from both the private sector and the government, Madrid said.

A midterm review of IBPAP’s five-year roadmap is scheduled for mid-2025 to refine strategies and potentially set more ambitious targets.

Madrid noted that sustained demand from multinational corporations, particularly in healthcare and financial services, is fueling the growth, with the United States remaining the largest market. U.S.-based clients account for over 10% of the Philippines’ service exports across various sectors, including contact centers, creative services, and healthcare.

Addressing concerns about global onshoring trends, Madrid urged the industry to prioritize workforce readiness.

"We shouldn’t be scared about onshoring. We should be scared about not being skilled enough. That’s the only thing I’m concerned about," he said.

"We produce 700,000 university graduates every year. We need them to be employable. We need to upskill, reskill, and cross-skill our talent," Madrid added.

He emphasized that maintaining growth depends on equipping students and job seekers with relevant skills, given the evolving nature of work driven by advancements in artificial intelligence and broader shifts in global business.