IBPAP Sets Target of $35.4 Billion in Revenues for the Philippine IT-BPM sector by 2023
The IT and Business Process Association of the Philippines (IBPAP) is confident that it will generate $35.4 billion in revenues by the end of 2023. This growth is expected to come from the increasing demand for offshoring work by US companies, the persistent talent shortage in North America, and the remote and hybrid employment policy frameworks of the government.
IBPAP President Jack Madrid expressed strong hope that the target revenues for the information technology and business process management (IT-BPM) sector will not only be attained but even exceeded by the end of this year. Madrid emphasized that the Philippines is a world capital in IT-BPM and the first choice for offshoring and delivering customer services.
The target revenue for 2023 represents a growth of 8.8 percent from last year’s $29 billion. Additionally, contributing 8.4 percent to the country’s GDP means that the IT-BPM industry will be even more important to the Philippine economy compared to just 7 percent last year.
Preliminary data released by IBPAP shows that the IT-BPM sector experienced a 8.7 percent surge in headcount, reaching a total of 1.7 million full-time employees (FTEs) from last year’s 1.57 million employees.
IBPAP is on track to generate an additional $29.5 billion in revenues and create 1.1 million new jobs by 2028. Since the start of the roadmap journey, the IT-BPM sector has added 257,000 new jobs, standing at 23 percent of the target, with five more years to go. It has also added $5.9 billion in revenues since last year, completing 20 percent of the way with five more years remaining.
Madrid shared that the growth of the IT-BPM sector in 2023 is a testament to the industry’s resilience, the dedication of its ecosystem of partners, and the continuing competitiveness of Filipino talent.
Factors driving the growth of the Philippine IT-BPM industry include US companies increasingly redirecting work offshore, the persistent talent gap in North America for IT-BPM services, and the supportive remote and hybrid work policies instituted by the Philippine government.
Madrid highlighted that the industry has expanded from contact center services to distinct verticals such as banking, financial services, insurance, healthcare information management, and creative industries.
While the Philippines is the second biggest player in the IT-BPM sector behind India, Madrid emphasized that the country is “like the Swiss Bank of IT-BPM, not the biggest, but the best in delivering customer experience.”
However, Madrid also acknowledged that the Philippines is experiencing a talent gap and job-skill mismatch. Upskilling the workforce will be necessary to meet the demand and increase the country’s labor pool.
Furthermore, this year’s growth is seen in the countryside’s development, where many companies have expressed a commitment to expand through more locations outside Metro Manila. Cebu, Davao City, Iloilo, Clark, and Cagayan de Oro are among the most favored destinations in the countryside.
IBPAP’s commitment to expansion not only contributes to economic growth but also spreads the benefits of the industry to regions that need it and across other sectors like food, logistics, real estate, retail, and transportation.
Madrid concluded by stating that the Philippines is setting the standard in the global IT-BPM industry and called for continued investment in talent, innovation, and inclusive growth to secure a brighter future for the nation and its people.
