Hitting Record $40-B Revenues in 2025, IT-BPM Sector "Cautiously Eyes Growth" This Year

After posting a record $40 billion in export revenues and employing 1.9 million workers in 2025, the Philippine Information Technology and Business Process Management (IT-BPM) industry is cautiously eyeing continued growth this year.

The Philippine IT-BPM sector is expected to reach $42 billion in revenues and 1.97 million workers in 2026.

The country’s IT-BPM sector registered a 5% growth in 2025—outpacing the global industry average of 3%—while employment expanded by 4%.

“2025, on the whole, was a very successful year for the Philippine IT-BPM industry.

This is a big feat, especially since there were a lot of challenges in 2025,” the IT & Business Process Association of the Philippines (IBPAP) said. IBPAP counts more than 400 member companies and six partner associations.

Looking ahead to 2026, the group expects challenges to persist.

IBPAP President and Chief Executive Officer Jack Madrid noted that geopolitical and macroeconomic uncertainties last year may have dampened investor confidence and expansion plans.

“We will continue to see some of that uncertainty as we begin 2026,” Madrid said.

He said traditional business process outsourcing (BPO) is expected to grow this year, but global capability centers (GCCs) are expanding at a much faster pace. GCCs are offshore subsidiaries owned by multinational firms that typically handle functions such as IT, finance, and human resources.

“We are actually positioned very well to be a very strong second to India in terms of GCCs. We have about 160 GCCs in the country now,” Madrid said, noting that these centers operate across sectors such as healthcare and finance.

However, he warned against complacency, urging continued reforms—particularly in improving the ease of doing business. Upskilling the workforce, he added, should also remain a priority.

“Let’s make it easy for investors to do business. Let us avoid inconsistencies in the implementation of rules and regulations,” Madrid said, stressing that most IT-BPM investors are foreign firms.

He also expressed hope for improvements at the Bureau of Internal Revenue and local government units, as well as measures to reduce power costs and improve internet connectivity nationwide.

Despite the headwinds, Madrid said the industry remains optimistic.

“I can say that we are cautiously optimistic about another positive year of growth for the Philippine IT-BPM industry,” he said.

Earlier, Ambassador-at-Large and the Philippines’ Special Envoy for Trade, Jose E.B. Antonio, said the country has cemented its position as a global leader in BPO and IT-BPM.

“The Philippines has proven itself as a global leader in BPO and IT-BPM. With a highly skilled, adaptable, and service-oriented workforce, this industry represents one of our greatest advantages and assures investors of sustainable growth,” Antonio said.

He noted that for more than two decades, the IT-BPM sector has been a cornerstone of the Philippine economy, contributing about 7.5% of gross domestic product and employing nearly two million professionals nationwide.

The industry, Antonio added, has evolved far beyond its early image as primarily contact centers.

“Today, our IT-BPM professionals are not just handling customer service—they are engineers, illustrators, animators, game developers, financial analysts, and healthcare information specialists,” he said.

“This diversity reflects the depth of Filipino talent and the industry’s ability to move up the value chain.”

Antonio said the rapid growth of GCCs underscores the Philippines’ evolving role in the global services landscape.

“The establishment and expansion of GCCs in our country demonstrate that multinational corporations see the Philippines not just as an outsourcing destination, but as a strategic hub for their core business operations,” he said.

With the global GCC market projected to reach $155 billion by 2027, Antonio sees significant upside for the Philippines.

Sustaining momentum, he said, will require continued collaboration among industry, academe, and government, the development of regional hubs, and stronger digital skills across the workforce.

“The future of IT-BPM is not just an industry agenda—it is a national priority,” Antonio said. “Together, we can keep the Philippines at the heart of global services and continue attracting the world’s leading companies to invest in our remarkable talent and capabilities.”

Based on industry projections, the Philippine IT-BPM sector is expected to reach $42 billion in revenues and 1.97 million workers in 2026.