Philippine IT-BPM sector unfazed by U.S. protectionism threats: IBPAP
MANILA, PHILIPPINES — The Philippine information technology and business process management (IT-BPM) sector remains optimistic despite potential protectionist policies from the United States under President-elect Donald Trump.
The IT & Business Process Association of the Philippines (IBPAP) has expressed confidence in the country’s position as a resilient outsourcing destination.
IBPAP President and CEO Jack Madrid emphasized the industry’s resilience: “The Philippine IT-BPM industry is built on the foundation of Filipino resilience and excellence. New foreign policies and global movements challenge us, but they also push us to elevate our capabilities.”
Strong North American ties
Dominic Vincent Ligot, founder of Cirrolytix and IBPAP’s AI, technology, and research consultant, highlighted that 70% of the industry group’s members are North American clients, including major firms like Teleperformance, Concentrix, Alorica, Accenture, and Sitel Group.
Additionally, North American companies such as Wells Fargo, American Express, JPMorgan Chase & Co., and Bank of America maintain local operations in the Philippines.
According to a report by the Center for Strategic and International Studies, 395 U.S. firms invested US$22.4 billion in the Philippines between 2003 and 2021, with US$7.8 billion directed toward IT-BPM.
Potential impact of U.S. policies
Despite these strong ties, GlobalSource Country Analysts Diwa Guinigundo and Wilhelmina Mañalac warned that Trump’s “America First” policies could impact the BPO industry by prioritizing jobs for Americans.
They noted that “the uncertainty of the Trump policy on the business contracting industry could therefore have non-trivial effects on the Philippines’ output growth and employment.”
Calixto Chikiamco, President of the Foundation for Economic Freedom, remarked that it is too early to predict whether Trump will target outsourced services specifically. “President Trump has so far only declared tariffs on imports, not on outsourced services,” he stated.
Future outlook and industry targets
IBPAP projects export revenue of $38 billion and a headcount of 1.82 million by year-end. Looking ahead to 2028, the industry aims for $59 billion in revenue and 2.5 million employees.
Jack Madrid stressed the importance of workforce development in emerging fields like artificial intelligence and data analytics: “By consistently and urgently upskilling our workforce in emerging fields, we ensure that the Philippines remains an indispensable partner in the global IT-BPM landscape.”
The IBPAP also emphasized that global demand for outsourcing persists due to its efficiency and innovation benefits: “Companies rely on outsourcing to drive efficiency, scalability, and innovation — needs that transcend political borders.”
The organization added that the Philippines is poised to meet these demands with its skilled workforce.
