AI, global competition force Philippines’ IT-BPM industry to cut targets

The Philippine information technology-business process management (IT-BPM) industry slashed its revenue and employment targets for 2028, citing the rapid adoption of artificial intelligence (AI) and intensifying global competition.

In its revised roadmap, the Information Technology and Business Process Association of the Philippines (IBPAP) projected that under a downside scenario, the IT-BPM industry could post USD 43.3 billion in revenues and 1.85 million in AI-enabled workers by 2028.

Under a best-case scenario, the industry is expected to generate USD 50.5 billion in revenues and boost its headcount to 2.14 million by 2028.

These recalibrated targets are much lower than the IBPAP’s initial projection of USD 59 billion in revenues and 2.5 million in full-time employees by 2028 under its previous roadmap.     

IBPAP President and Chief Executive Officer Jack Madrid said the revised projections have factored in disruptions caused by rapid adoption of AI, changes in buyer behavior, and heightened competition in the global IT-BPM industry.   

“We reviewed some of the strategic initiatives we need to embark on to ensure that our industry continues to grow and to address any changes in the initiatives needed given all the events that have happened in the past several years. It’s not just technology and agentic AI but also addressing some of the uncertainties caused by geopolitics and our own domestic opportunities and challenges,” he said at a briefing on Tuesday.

Mr. Madrid noted that the industry roadmap, which was first started in 2022, was “refreshed” since a lot of conditions have changed.

Mr. Madrid noted that global buyers are taking longer before deciding to invest in offshore operations, citing the rise of other IT-BPM hubs in South Africa, Egypt, Poland, Vietnam, Colombia, and Costa Rica.

“We are number two in the global IT-BPM [industry,]” he said, noting that India remains the top BPO player. “The challenge before us is whether we can move fast enough to capture this next wave of opportunities.”

For the downside scenario in 2028, Mr. Madrid said the IBPAP factored in policy-related issues that could discourage investors, depth of talent, quality of infrastructure, and challenges on the ease of doing business. — Beatriz Marie D. Cruz, Senior Reporter

This year, the industry’s revenues are projected to reach USD 42.3 billion from USD 40 billion in 2025. The total headcount is expected to rise to 1.96 million full-time employees from 1.9 million last year.

For 2027, the IBPAP expects the industry to grow to USD 45.3 billion in revenues and 1.99 million full-time employees.