Philippines IT-BPM Industry Confident of Hitting $42 Billion Revenue Target

MANILA, Philippines — The Information Technology and Business Process Management (IT-BPM) industry is poised to meet its $42 billion revenue target this year, driven by a surge in interest from companies looking to establish Global Capability Centers (GCCs) in the country. "I’m confident that we will meet our $42 billion target this year," said IBPAP president and CEO Jack Madrid. Last year, the sector generated $40.3 billion in revenue. Madrid highlighted that revenue growth for this year will be significantly boosted by GCCs, noting, "Every week, every month, we get inquiries and expressions of interest from GCCs." GCCs are distinct units established by multinational corporations in foreign countries to provide business services such as finance, human resources, and IT support. Unlike traditional outsourcing, GCCs operate under the ownership and control of their parent companies. Currently, the Philippines hosts over 200 GCCs, positioning it as a distant second to India, which has approximately 2,200. "We’re number two…but we should accelerate our growth rate," Madrid stated. To achieve this accelerated growth, the industry must prioritize developing an artificial intelligence (AI)-enabled workforce. "I think the growth will come when that happens because there’s no shortage of demand. It will be the availability of employable talent. That will be very important," Madrid emphasized. Beyond AI fluency, the workforce needs deep domain knowledge, critical thinking, problem-solving, communication, and leadership skills. As the industry gears up for the holiday season, an increase in hiring is anticipated in the fourth quarter to meet the demand surge during Thanksgiving, Black Friday, and Christmas, which typically benefits business process outsourcing firms. Furthermore, the lifting of the moratorium on IT ecozone applications in Metro Manila is expected to provide a significant boost to the industry. In July, the Office of the President removed the ban on applications for IT centers and IT parks in the capital region, aiming to strengthen its standing as a hub for information and communications technology investments. Philippine Economic Zone Authority director general Tereso Panga confirmed that the agency has received about three to five IT park applications in Metro Manila. Madrid also pointed to the Luzon Economic Corridor (LEC) initiative as a beneficial development for the industry. The LEC aims to accelerate infrastructure investments and enhance connectivity and supply chains across key growth centers in Luzon, including Subic, Clark, Manila, and Batangas. "Anything that improves the infrastructure of the country, whether it’s digital infrastructure or physical infrastructure, is very important. And I include human capital. I think Luzon’s economic health is very important for the industry because if it improves the quality of available talent and makes specific regions hubs, then that is good for IT-BPM," Madrid concluded. Source: Philstar Business