• By quade
• 23 June 2024

Philippine IT-BPM Sector Expected to Hit Growth Targets

The Philippines’ information technology-business process management (IT-BPM) industry is on track to achieve a seven percent growth in both revenue and workforce this year. This leaves the Philippine IT-BPM sector on track to achieve all of its expected targets, showing the steady growth and continued success of BPOs within the country.

As a service sector-dominated economy, the Philippines boasts one of the largest and most robust BPO industries in the world. Although this is still below some of the more ambitious growth targets, it shows the market remains healthy despite the growing threats to the industry. 

Growth Targets of the Philippine IT-BPM Sector

“From all indications, I think it’s safe to say we will grow around seven percent for both headcount and revenue (this year),”

-Jack Madrid, president of the IT and Business Process Association of the Philippines (IBPAP)

This 7% growth in the industry will translate into the sector reaching $38 billion and the employee count reaching 1.82 million this year. This is a considerable growth from $35.5 billion 1.7 million in 2023, allowing the Philippines to maintain its spot as one of the top destinations for BPO services.

However, this does not reach some of the more ambitious projections of the industry. Earlier this year, Madrid predicted that the IBPAP would try to reach a 7% growth target this year which the Philippines is set to achieve.

However, he previously stated some more ambitious goals, hoping the industry will generate $40 billion as well as employ 1.84 million employees. To achieve these projections the Philippine IT-BPM sector would need to grow by 12.6%.

Future Plans of the Philippine IT-BPM Sector

Madrid stated that the industry roadmap outlines three different growth predictions for the BPO industry this year. They have constrained prediction, baseline, and aggressive predictions. All of these showcase the different scenarios that can occur this year.

The most aggressive scenario predicts that the Philippine IT-BPM Sector will reach 2.5 million jobs and generate more than $59 billion in revenue by 2028. Although the Philippines is unlikely to hit aggressive growth targets this year, Madrid remains optimistic that the IBPAP will be able to hit these targets in the coming years. 

They believe this growth will continue due to the demand for BPO services and the high-quality Philippine workforce. Filipino BPO workers continue to remain some of the best workers for BPO work because of their friendly personalities and their proficiency in English. Coupled with the relatively low operating costs here the country will continue to excel in delivering BPO services.

Additionally, he noted that the pressure on global companies to optimize costs will further support the growth of the IT-BPM sector.

He mentioned that the IBPAP is currently evaluating the industry’s performance for the first half of the year and expects to have a clearer picture within the next 60 to 90 days.