The Philippine information technology–business process management (IT-BPM) industry is not losing sleep over global rivals. Its bigger headaches are closer to home: the ease of doing business and a persistent shortage of employable talent.
“These are the things that will determine whether we continue to grow,” IT and Business Process Association of the Philippines president and CEO Jack Madrid said, stressing that competition, while intensifying, is not the sector’s primary concern. “Let’s not worry too much about competition. Let’s be concerned about the ease of doing business.”
Despite “very challenging geopolitics” and lingering uncertainty following the 2025 economic crisis, Madrid told a news conference that the industry remains cautiously optimistic about sustaining growth. While it is still early to put firm numbers on performance this year, early indicators suggest continued expansion, led largely by the global capability center (GCC) segment.
GCCs—offshore hubs established by multinational firms to handle complex and high-value functions—have emerged as a key growth engine. Their expansion is helping push industry revenues toward a possible USD42 billion by the end of 2026, up from an estimated more than USD40 billion in 2025.
Artificial intelligence is reshaping how work is done, but Madrid said it will not erase the Philippines’ competitive edge. “AI will definitely impact simple jobs,” he said, “but the work is moving up the value chain. It’s about human touch, empathy, and creativity. That’s how we retain and even grow our position in the global market.”
This transition is already showing results. Industry revenues are now growing faster than headcount, signaling productivity gains that companies want to maintain as global clients demand more value from leaner teams.
Sustained investment in skills remains central to that effort. Companies continue to roll out training programs lasting from a few weeks to as long as two months, translating into roughly P1.4 billion in annual private-sector spending to upskill workers and close talent gaps.
Globally, the competitive field has become more crowded, with countries such as Egypt, Poland, Vietnam, Malaysia, Colombia, and Costa Rica developing niche strengths. Still, Madrid said the core rivalry remains unchanged.
“India and the Philippines will continue to be the main competitors,” he said. “We will not be number one. What matters is capability and our ability to solve our global customers’ problems.”
The industry’s message to government is clear: fix domestic fundamentals. With investor interest already in the pipeline and employment projected to reach about 1.97 million by 2026, the sector’s growth prospects remain solid—provided execution at home keeps pace with global demand.
