The IT-Business Process Management (IT-BPM) sector is expected to post $35.4 billion in revenues this year, up 8.8 percent from the 2022 level, an industry group said Wednesday.
Officials of the IT-Business Process Management Association of the Philippines (IBPAP) said employment in the sector is projected to rise 8.7 percent to 1.7 million full time-employees (FTEs) by end-2023.
IBPAP president Jack Madrid said the sector’s contribution to the gross domestic product (GDP) would likely reach 9 percent by 2028.
“In any IT global business location, it is the biggest share. India probably is 3 or 4 percent. We are 9 percent. Our industry is becoming more important to the Philippine economy, and that’s why delivering an additional 1.1 million jobs is very, very important,” he said during the opening of the two-day 15th International IT-Business Process Management Summit (IIS) at Okada Manila in Pasay City.
He said the headcount growth in the Philippines already outperformed the global growth of 7.7 percent.
Among the factors propelling the growth of the Philippine IT-BPM industry in 2023 are the clear US preference for the Philippines as hub for high-quality IT-BPM services and source of talent.
Foreign companies also find it attractive the Philippine government’s support for remote and hybrid work policies.
IBPAP said these policies not only helped companies adapt to the changing work landscape but also attracted foreign investments.
“With the help of our allies and collaborators, we were able to put into motion programs that align with our acceleration levers and support our 2028 growth targets,” Madrid said.
Latest industry data showed the industry was on track to achieving 23 percent of the 1.1 million jobs it set to create and 20 percent of the $29.5 billion it promised to generate by 2028.
A majority of companies expressed a strong commitment to expansion in more locations outside Metro Manila such as Cebu, Davao City, Iloilo, Clark and Cagayan de Oro.
IBPAP said these developments confirmed its commitment not only to contribute to economic growth but also spread the benefits of the industry to regions and across other sectors like food, logistics, real estate, retail and transportation.
“The growth of the IT-BPM sector in 2023 is not just a statistic; it is a testament to the industry’s resilience, the dedication of its ecosystem of partners, and the continuing competitiveness of the Filipino talent,” Madrid said.
“The Philippines is not just keeping pace with global trends; we are setting the standard. As we move forward, let us continue to invest in talent, innovation, and inclusive growth, ensuring we remain a beacon of excellence in the global IT-BPM industry. Together, we will reach new heights, fulfill our 2028 targets, and secure a brighter future for our nation and our people,” he said.
Carrying the theme “Forging Ahead: Tech-Forward Philippines”, IIS 2023 drew the participation of more than 800 delegates from the IT-BPM industry, the allied sectors, the government and the academe.