The Philippines’ information technology and business process management (IT-BPM) industry is projected to generate close to $38 billion in revenue in 2024. This surpasses earlier forecasts and marks a significant increase from the $35.5 billion recorded in 2023, representing a 7% growth rate.
Steady growth and workforce expansion
Jack Madrid, president of the IT and Business Process Association of the Philippines (IBPAP), shared these optimistic projections during the group’s annual event in Parañaque City. He mentioned that the group expects at least a 6.5% revenue growth this year, reaching $37.5 billion.
“I think 2025 will still be positive growth,” Madrid told reporters. “Maybe not 7 percent or 8 percent, but something more modest.” He also noted that the domestic workforce is anticipated to reach 1.82 million by the end of the year.
Challenges ahead for the sector
Despite the positive outlook, the Philippine BPO sector faces several challenges. A significant talent and skills gap exists, especially in advanced digital areas like artificial intelligence, data analytics, and programming. According to a midyear IBPAP survey, 21% of respondents cited this talent gap as a primary concern.
Global competition is intensifying, with countries like South Africa, Colombia, Poland, and Egypt rapidly advancing their IT-BPM industries. This increased competition underscores the need for the Philippines to enhance skill development and operational efficiency to maintain its edge.
Additionally, high operational costs and issues related to the ease of doing business are putting pressure on the industry. Cybersecurity risks are also becoming more sophisticated, prompting the need for stronger measures to protect sensitive data.
