Philippine IT-BPM alone can’t lift productivity, Balisacan says
- The Philippine IT-BPM industry earned more than $40 billion and employed 1.9 million last year.
- Services make up about two-thirds of Philippine GDP.
- Three of every four jobs created since 2010 were in non-tradable activities.
- Services productivity grew 26% from 2006 to 2019, against 53% in manufacturing.
MANILA, PHILIPPINES — The Philippines needs modern infrastructure, a shift toward higher-value services and a workforce ready for artificial intelligence (AI) to sustain long-term growth and quality jobs, Economy, Planning, and Development Secretary Arsenio Balisacan said.
“IT-BPM is a notable export success, but it cannot, by itself, raise productivity throughout the much larger services economy,” he said.
Services drive the economy
Balisacan, who heads the Department of Economy, Planning, and Development (DEPDev), spoke at the Regional Conference on Trade in Services for Development (TS4D) in Asia and the Pacific, PageOne reported.
Services account for about two-thirds of the country’s gross domestic product (GDP).
The information technology and business process management (IT-BPM) industry alone generated more than $40 billion in revenue and employed 1.9 million workers last year.
“The central question is whether expanding services trade can generate productivity growth across the economy and good jobs for a much wider group of workers and firms,” Balisacan said.
Long-term growth will depend on combining infrastructure upgrades, higher-value business activities and worker upskilling, he said.
He said the country needs better digital connectivity, transport and logistics, financial services and other business-support services to raise productivity and help firms join regional and global value chains.
AI exposure is not job loss
Citing the World Bank’s 2025 Philippines Country Growth and Jobs Report, Balisacan said three of every four jobs created since 2010 were in non-tradable activities.
Services productivity grew by only 26% between 2006 and 2019, compared with 53% in manufacturing, he said.
Balisacan also called for helping workers and firms adapt as AI reshapes the services sector.
“Exposure to AI is not the same as inevitable job loss,” he said.
AI’s impact will depend on how firms adopt the technology, how workers are prepared, and whether higher-value activities can expand as existing tasks evolve, he said.
For buyers of Philippine outsourcing, the government’s push toward higher-value work points to providers moving beyond voice into knowledge process outsourcing (KPO) and AI-assisted services.
Providers that invest in reskilling their teams are better placed to keep clients as routine tasks are automated.
Firms reviewing partners can compare the top 40 BPO companies in the Philippines on their AI training plans.
Related news
- Philippine BPO must adopt agentic AI by 2027, Mindsprint says · 6 Oct
- Philippine IT-BPM needs a talent push to hit $50.5Bn by 2028 · 29 Sep
- Philippine labor market stays resilient amid the AI boom · 22 Sep
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