The Philippine IT-BPM sector is set to surpass the global industry performance in terms of headcount and revenue this year, based on preliminary data from the IT and Business Process Association of the Philippines (IBPAP).
The Philippines saw an 8.7% surge in industry headcount, reaching a total of 1.7 million full-time employees and outperforming the global growth rate of 7.7%, IBPAP President and CEO Jack Madrid announced during the 15th International IT-BPM Summit (IIS) last September 27 at Okada Manila.
The local industry also marked an 8.8% revenue growth rate, equivalent to an estimated US$35.4 billion, which eclipses the global industry’s 7.7% average, according to IBPAP.
“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,” said Madrid. “Given this, our outlook for 2023 is bright—in fact, better than we initially projected—and we are committed to sustaining this trajectory of impactful and positive growth throughout the coming years.”
IBPAP enumerated three key factors that propelled the Philippine IT-BPM industry, namely 1) Increasingly redirected offshore work from the US and clear preference for the Philippines, 2) Persistent talent gap in North America for IT-BPM services, driving companies to look beyond their borders for skilled professionals, and 3) Strong support from the Philippine government with remote and hybrid work policies.
Madrid went on to report during the opening of IIS that from the start of 2022 until year-end of 2023, the IT-BPM sector expects to add 257K FTEs to its headcount and US$5.9 billion to its revenue, placing the Philippines firmly on track to meet its targets for 2028.
He added that these numbers indicate that the industry is set to achieve 23% of the 1.1 million jobs it needs to create and 20% of the US$29.5 billion it needs to generate by 2028.
“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 shared.
IBPAP said the industry growth is mirrored in the continuous and robust countryside development. Based on the latest industry data, many companies have expressed a strong and enduring commitment to expand into more locations outside Metro Manila, such as Cebu, Davao City, Iloilo, Clark, and Cagayan de Oro.
The industry trade group also highlighted that this commitment from IT-BPM companies spreads the benefits of the sector to regions that need it and across other industries like food, logistics, real estate, retail, and transportation.
“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.”
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