The Philippine IT-BPM industry has revised its revenue and employment targets for 2028, citing the rapid adoption of artificial intelligence and intensifying global competition.
According to the industry's revised roadmap, the IT-BPM sector could post $43.3 billion in revenues and 1.85 million AI-enabled workers by 2028 under a downside scenario.
In a best-case scenario, the industry is expected to generate $50.5 billion in revenues and boost its headcount to 2.14 million by 2028.
The revised targets are significantly lower than the initial projection of $59 billion in revenues and 2.5 million full-time employees by 2028, as outlined in the industry's previous roadmap.
IBPAP President and CEO Jack Madrid attributed the revised projections to disruptions caused by the 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," he said.
Mr. Madrid noted that the industry roadmap has been "refreshed" since many conditions have changed, including the rise of other IT-BPM hubs in South Africa, Egypt, Poland, Vietnam, Colombia, and Costa Rica, which are taking longer to decide on offshore operations.
The industry's current growth is expected to slow down, with revenues projected to reach $42.3 billion this year, up from $40 billion in 2025, and a total headcount expected to rise to 1.96 million full-time employees from 1.9 million last year.
For 2027, the industry is expected to grow to $45.3 billion in revenues and 1.99 million full-time employees.
Success will depend on how quickly the industry invests in talent, embraces AI responsibly, and deepens collaboration between industry, government, and academe, according to Mr. Madrid.
Developing an AI-enabled IT-BPM workforce will require stronger AI literacy, deeper domain expertise, and greater emphasis on human skills such as judgment, critical thinking, empathy, and leadership, the industry association emphasized.
The need to position the Philippines as a hub for global capability centers (GCCs) was also highlighted, with the country currently hosting about 200 GCCs, and growth sectors expected to come from banking, financial services, and healthcare.
Mr. Madrid said that while AI has affected some jobs, it has not yet had a widespread impact on the industry, with many employees able to be redeployed to new roles.
IBPAP Chief Operating Officer Celeste B. Ilagan emphasized the need for policies to improve the ease of doing business and address insider cybercrime in the country, citing existing investors who are now having second thoughts about expanding in the Philippines due to policy and regulatory challenges.
