Philippine IT-BPM sector to surpass $40Bn in 2025, says IBPAP
MANILA, PHILIPPINES — The Philippine IT-business process management (IT-BPM) industry is projected to reach $40 billion in revenues this year, cementing its position as a key economic driver of the country.
While facing global headwinds, the sector continues to expand through digital transformation and workforce development initiatives.
Steady growth amid economic uncertainties
The IT-BPM sector expects 5.2% revenue growth in 2025, building on its $38 billion performance in 2024 from its previous record of $35.5 billion.
IBPAP President Jack Madrid remains confident the industry will exceed baseline targets despite challenges like potential United States protectionist policies.
This optimism stems from strong demand in banking, financial services, and healthcare sectors. The recent partnership between IBPAP and Department of Trade and Industry (DTI) to establish an industry quality council aims to maintain competitiveness through updated standards and benchmarks.
“We have different targets. We have an aggressive target and we have a baseline target. We will exceed our baseline,” Madrid said.
Workforce expansion and upskilling
An IBPAP official said that the sector tries to expand its workforce numbers from 1.82 to 2 million employees over the next 12 to 18 months.
“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, stressing the need for skill development so they can handle changes in their occupational needs, particularly in artificial intelligence integration.
The industry is shifting focus toward higher-value services like analytics and complex problem-solving.
Training programs are being developed to equip new graduates with future-ready skills that complement rather than compete with automation technologies.
Strategic adaptation to technological change
The sector is proactively addressing AI disruption through its mid-term roadmap review. This strategic assessment will ensure alignment with emerging technologies and changing market demands.
Madrid notes that while AI transforms certain functions, it also creates new opportunities for human workers in areas requiring emotional intelligence and complex decision-making. The industry’s quality council will play a key role in developing guidelines for this human-tech collaboration.
The IT-BPM sector in the Philippines aims to reach $40 billion in revenue while fighting through worldwide uncertainties.
Through strategic partnerships, workforce development, and technological adaptation, the industry prepares itself to achieve sustainable growth in the years ahead.
