Philippine BPO revenue to hit $37.5Bn in 2024: IBPAP
MANILA, PHILIPPINES — The Philippines’ information technology and business process management (IT-BPM) sector is on track for substantial growth, with revenues expected to approach $37.5 billion in 2024.
This projection marks a significant increase from the $35.5 billion recorded in 2023, representing a 7% growth rate.
The IT and Business Process Association of the Philippines (IBPAP), the country’s leading organization for IT-BPM firms, revealed these figures during their 16th International IT-BPM Summit in Parañaque City.
Optimism amidst challenges
IBPAP President Jack Madrid expressed confidence in the sector’s continued expansion, though he anticipates a more moderate growth rate beyond 2024.
“I think 2025 will still be positive growth. Maybe not 7 percent or 8 percent, but something more modest,” Madrid stated.
Additionally, the industry is projected to see an increase in its workforce, with domestic headcount expected to reach 1.82 million by year-end.
Addressing key sector challenges
Despite the positive outlook, several challenges loom over the Philippine BPO sector. These include a talent and skills gap, intensifying global competition, high operational costs, ease of doing business issues, and cybersecurity risks.
According to a midyear survey by IBPAP, the talent gap — especially in advanced digital skills like artificial intelligence, data analytics, and programming — is a primary concern, cited by 21% of respondents.
Rising global competition
The global IT-BPM landscape is becoming increasingly competitive. Countries such as South Africa, Colombia, Poland, and Egypt are rapidly advancing their IT-BPM sectors, challenging the Philippines to maintain its competitive edge.
This intensifying competition highlights the need for strategic initiatives to enhance skill development and operational efficiencies within the local industry.
Overcoming operational and cybersecurity hurdles
High operational costs and ease of doing business continue to pose significant challenges for the sector. Furthermore, evolving cybersecurity threats necessitate robust frameworks to protect sensitive data. Addressing these issues is crucial for sustaining growth and maintaining investor confidence.
As the Philippine BPO sector aims for new revenue milestones, tackling these challenges will be essential to ensuring its long-term success and competitiveness on the global stage.
