The Philippines is solidifying its lead in the information technology and business process management (IT-BPM) industry, with revenues projected to reach $42 billion and employment hitting 1.97 million Filipinos by 2026.
Jack Madrid, president and CEO of the IT and Business Process Association of the Philippines (IBPAP), said at the opening of the International IT-BPM Summit (IIS) 2025 that the country is outpacing global growth in the sector, expanding at 5 percent in 2025 compared with the world average of 3 percent. The summit’s theme was “Rewired for Value: The Global Wake-Up Call.”
“We are outpacing global growth, but growth alone will not secure our future. Transformation will,” Madrid said.
Madrid cited two key opportunities for the industry: the integration of artificial intelligence (AI) and agentic technologies into customer experience and global business services, and the rise of global capability centers (GCCs).
The GCC market, which includes finance, HR, IT, analytics, marketing and digital services, is projected to reach $155 billion globally by 2027.
Madrid said the Philippines, with its strong talent pool, cost efficiency and mature ecosystem, is well-positioned to expand its role as a GCC hub driving enterprise-wide innovation.
“We can be both – a world-class outsourcing hub and a GCC hub driving enterprise transformation,” he said.
Madrid said the industry is banking on AI as a critical driver of future growth. While only 12 percent of Philippine firms currently report high AI maturity, nearly half are already embedding AI in some form. He added that by 2028, more than 70 percent expect to reach high maturity.
“Technology alone will not win. Our winning formula is blending AI with Filipino ingenuity, empathy and trust,” Madrid said, noting that AI should be an augmentation tool, not a replacement.
To sustain momentum, Madrid outlined six imperatives for transformation: aligning policy, talent, and markets; expanding innovation beyond Metro Manila; evolving leadership; scaling the GCC footprint; making talent future-ready; and keeping human impact at the core.
