Logix BPO

PH IT-BPM Sector Outpaces Global Growth with AI and GCC Push

MANILA, PHILIPPINES – Jack Madrid, CEO of IBPAP, proudly announced at the 17th IIS Summit that the IT-BPM sector has grown by 5%, significantly higher than the global average of 3%. The sector is also on track to generate nearly US$42B in revenues and support around 2M jobs by 2026.

The statistics demonstrate that the Philippines isn’t only a leading outsourcing hub but is also emerging as a “rising powerhouse in AI adoption and as a hub for global capability centers (GCCs).”

How the Sector Will Sustain Growth Beyond the Numbers

While surpassing global growth is a milestone, Madrid emphasized that sustained success depends on the sector’s “ability to transform and move up the value chain.”

To do that, it should consider these key drivers:

  • AI adoption to augment human strengths. Madrid is pushing for a National AI Strategy to guide adoption, workforce reskilling, and governance. At present, 12% of outsourcing firms report high AI maturity, with more than 70% expecting to reach that level by 2028.
  • Becoming a global GCC hub. With the global GCC market projected to reach US$155B by 2027, the Philippines has the talent pool, cost advantages, and mature ecosystem to compete with India, which currently dominates the space.

Six Priorities for the Future of PH IT-BPM

Madrid outlined six focus areas for the sector’s continued success:

  1. Align policy, talent, and markets through public-private collaboration.
  2. Expand innovation hubs beyond Metro Manila.
  3. Evolve leadership into co-creators of global solutions.
  4. Scale the Philippines’ GCC footprint.
  5. Future-proof talent with digital fluency and problem-solving skills.
  6. Keep human impact at the core of digital transformation.

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