By Bilyonaryo staff
The Philippine IT and Business Process Management (IT-BPM) sector has hit a record $40 billion in annual revenue in 2025, cementing its role as a critical engine of the national economy.
But leaders are warning that size alone will not shield the sector from disruption caused by artificial intelligence and intensifying global competition.
Jack Madrid, president of the IT and Business Process Association of the Philippines (IBPAP), said that while the sector now employs 1.9 million digital Filipino workers, rapid technological changes and shifting client expectations pose serious challenges.
“Scale is not security. Security comes from alignment, capability, and political will,” Madrid told members during IBPAP’s annual meeting.
Global investors, he noted, are increasingly asking whether the Philippines can provide predictability in policy, regulation, and ease of doing business — a key factor for future investment.
The Philippines now accounts for 17% of the global IT-BPM workforce and contributes 8% of national GDP. Madrid stressed that these numbers alone cannot guarantee resilience. The sector’s future depends on continuous reskilling in AI and complex services, along with stronger financial literacy and access to digital banking for workers.
In a sign of the sector’s growing national importance, the Bangko Sentral ng Pilipinas has joined IBPAP, recognizing its role in strengthening the economy and foreign exchange position. Policy support, Madrid said, must go hand in hand with workforce development to secure long-term growth.
“When IT-BPM performs, the country performs. But to perform sustainably, we must anticipate disruption, build capability, and maintain predictable conditions for investors and employees alike,” he added.
The IT-BPM sector has long been one of the Philippines’ top sources of foreign exchange, alongside remittances from overseas workers.—Bilyonaryo.com
