IT-BPM industry sees revenue exceeding $50 billion by 2028
The Information Technology and Business Process Association of the Philippines is optimistic that industry revenues will cross the $50 billion mark by 2028, even as it cited the need to address talent supply and ease of doing business challenges.
The Information Technology and Business Process Association of the Philippines (IBPAP) anticipates that the IT-BPM industry will surpass the $50 billion revenue milestone by 2028. IBPAP president and CEO Jack Madrid stated, "We believe that we can cross $50 billion (in revenue), and if that target is achieved, the IT-BPM industry would have added around 250,000 jobs since 2025." The current IT-BPM industry generated $40.3 billion in revenue in 2023 and employed 1.9 million people.
To reach the $50 billion revenue target, Madrid emphasized the importance of addressing talent supply to meet industry demands. He added, "Being able to meet the demand for talent, I think, is probably the number one factor." Additionally, easing the business environment is crucial, as investors prefer stability and consistency in the country's business landscape.
Incoming IBPAP president Celeste Ilagan highlighted challenges related to business permitting and taxes imposed by local government units. In July, IBPAP revised its 2028 revenue forecast to range between $43.3 billion and $50.5 billion, reflecting the revised industry outlook. Still, Madrid is confident in their projections, stating, "We remain confident in our projections. We believe them to be realistic, and I think the good news is we can achieve those numbers."
For the year, IBPAP expects the industry to reach the $42.3-billion revenue goal. Madrid explained, "Revenue growth will be supported by the increasing interest in establishing global capability centers (GCCs) in the country. Unlike traditional outsourcing managed by external vendors, GCCs are set up by multinational firms to manage key business operations internally."
Madrid also predicted continued revenue growth for the IT-BPM industry, with a forecast of $45 billion next year. He attributed this growth to the increasing value of work being done and the growing integration of artificial intelligence, which enables companies to perform tasks with fewer employees. IBPAP anticipates its full-time employee count to grow by 2.6 percent annually this year and in 2027, with revenue per employee expected to rise from $21,800 to $22,600 in 2028.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
