Philippines’ IT-BPM sector braces potential Trump tariff ripple effects
METRO MANILA, PHILIPPINES — The Philippines’ $38 billion Information Technology and Business Process Management (IT-BPM) industry is cautiously monitoring potential spillover effects from United States tariffs, recalling a growth slowdown during President Donald Trump’s first term.
Despite demand and investor interest, sector leaders warn that geopolitical trade policies could indirectly impact services.
Trade policy uncertainty looms over services growth
The IT-BPM industry, contributing 9% to the Philippine economy, fears a repeat of 2017–2018’s single-digit growth if U.S. tariffs disrupt service demand.
While current measures target goods, Information Technology and Business Process Association of the Philippines (IBPAP) President Jack Madrid noted that past trade tensions indirectly slowed outsourcing expansion, prompting close monitoring.
“A lot has happened in the past decade. There’s a big difference between Trump 1 and Trump 2. But in this case, I think the tasks that the digital Filipino workers perform for our global customers are more complex and harder to replicate,” Madrid said.
GCCs and demographic strength fuel optimism
Global Capability Centers (GCCs) internal units of multinationals are driving growth, with over 250,000 employees across over a hundred Philippine sites. Madrid cited India’s GCC success as a model, positioning the Philippines as the logical number two player in this high-value segment.
Demographics further bolster confidence, the country’s median age of 25.3 ensures a skilled, youthful workforce.
Investor interest continues to outpace supply, with weekly inquiries for expansions or new setups, underscoring the sector’s competitive edge despite external risks.
