Para±aque city: Integration of agentic and artificial intelligence (AI) into global business and customer services, along with a strong rise of the global capability centers (GCCs) is seen to bolster growth of the Philippines’ Information Technology-Business Process Management (IT-BPM) industry. The sector’s revenues are projected to grow by 5 percent this year to USD40 billion, and next year’s forecast remains at 5 percent to USD42 billion. Employment forecast for next year is around 1.97 million, with workers expected to move up the value chain as more innovative services are introduced.
According to Philippines News Agency, IT and Business Process Association of the Philippines (IBPAP) president and chief executive officer Jack Madrid, during the opening of the two-day International IT-BPM Summit (IIS) 2025 in Para±aque City on Tuesday, emphasized the need for digital Filipino workers to adapt to the AI era, stating that technology should serve people, not replace them. The global GCC market is expanding, with around USD100 billion worth of revenues in 2024 expected to rise to USD155 billion by 2027, and the workforce projected to grow to around four million.
GCCs provide several services, such as those in finance, human resources, customer support, IT, data analytics, marketing, and digital services. While India is currently the leader for GCCs, Madrid noted that the Philippines has the talent, scale, cost efficiency, and ecosystem maturity to become the next global GCC power. He emphasized collaboration between India and the Philippines to leverage the potential growth in the sector.
Celeste Ilagan, IBPAP Chief Operating Officer, highlighted the importance of addressing the cost of doing business and implementing provisions of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, or Republic Act No. 12066, to ensure the sector’s growth. The CREATE MORE Act, signed into law in November 2024, aims to encourage investment-led growth for the domestic economy by enhancing ease of doing business and providing attractive incentives for businesses.
