The Philippine information technology-business process management (IT-BPM) industry continues to face hiring bottlenecks, with only two in every 10 applicants successfully recruited, as education gaps, skills mismatches and artificial intelligence (AI) reshape workforce requirements.
Despite these constraints, the industry expects revenues to reach USD45 billion and employment to approach two million in 2027.
IT and Business Process Association of the Philippines (IBPAP) President and CEO Jack Madrid said the hiring success rate has not materially improved, although the estimate is anecdotal.
“Our problem as an industry has never been demand, at least not including until today. What has constrained us is the supply,” Madrid said.
He cited declining education performance, reflected in poor PISA results, alongside the need for stronger domain expertise and AI fluency as the industry transitions toward higher-value services.
Automation could also reduce manpower requirements for certain tasks even as productivity and revenues increase.
“What’s the constraint? Capability. What’s the solution to that? Let’s all be better at what we do: domain expertise, AI fluency. Accept that we must learn continuously. That’s the equation,” Madrid said.
IBPAP President and CEO-designate Celeste Ilagan emphasized improving the alignment between graduates’ qualifications and industry requirements.
“We have been training our new employees since the very beginning,” she said.
To address recruitment bottlenecks, IBPAP is working with government and training partners on near-hire bridging programs, allowing unsuccessful applicants to undergo additional training and reenter recruitment.
The initiative seeks to minimize talent losses while preparing workers for increasingly complex, higher-value roles.
