IT-BPM sector seen to top $40-B revenues
The information technology and business process management (IT-BPM) industry is expected to generate $40 billion in revenues this year, contributing at least 8 percent of the Philippine economy.
Jack Madrid, the president and the chief executive officer of the IT and Business Process Association of the Philippines (IBPAP) said this, expressing optimism about the trajectory of the industry.
This is amid a number of headwinds on the horizon, including US President Donald Trump’s earlier threat to stop American businesses from offshoring jobs, aside from slapping hefty tariffs on trading partners to encourage manufacturers to set up shops in the United States.
The 2025 IT-BPM outlook suggests a revenue growth of about 5.2 percent from last year, seen driven by sustained demand from the banking, financial services and health-care sectors.
The country’s IT-BPM industry posted $38 billion in revenues in 2024, up from the $35.5 billion recorded in the previous year.
“We have different targets. We have an aggressive target and we have a baseline target. We will exceed our baseline,” Madrid told reporters on the sidelines of the organization’s signing of an agreement with the Department of Trade and Industry (DTI) to establish a new industry quality council on Monday.
On employment, the IBPAP official said the industry was targeting to reach 2 million jobs within the next 12 to 18 months, up from the 1.82 million workers recorded in 2024.
“But in order for our industry to grow, we must make sure that the upcoming generation of job seekers—these are the graduates every year—have relevant skills for the new work types of the future,” Madrid said.
“Because the work that we do keeps changing, not just because of (artificial intelligence), but the nature of work always changes, and so we must adapt,” he added.
As part of efforts to enhance industry standards, the IBPAP had signed an agreement with DTI to establish a new industry quality council focused on developing new guidelines and benchmarks.
Madrid said they would also conduct a mid-term review of their industry road map to ensure alignment with evolving market demands and technological advancements, allowing the sector to stay competitive and continue meeting its growth targets.
IBPAP’s long-term goal is for the industry to achieve $59 billion in annual revenue by 2028, with employment projected to reach 2.5 million by that time.
