TLDR: The Philippine Business Process Management (BPM) and IT sector is projected to achieve a 7% growth rate, reaching 1.82 million jobs and $38 billion in revenue in 2024. This growth occurs amidst the transformative influence of Artificial Intelligence (AI) and automation. Industry leaders, like Jack Madrid of the IT and Business Process Association of the Philippines (IBPAP), emphasize that while AI won’t replace people, individuals proficient in using AI will replace those who are not. The sector is urged to upskill its workforce in areas such as AI, cybersecurity, data analytics, and IT support to meet ambitious 2028 targets of 2.55 million jobs and $59 billion in revenue, and to transition towards higher-complexity roles.
The Philippine business process management (BPM) and information technology (IT) sector is poised for significant expansion, projecting a steady growth rate of 7% despite the pervasive influence of artificial intelligence (AI) and automation. This optimistic outlook was highlighted in a recent industry discussion, underscoring the sector’s resilience and adaptability.
According to current forecasts, the Philippine outsourcing industry is expected to create 1.82 million jobs and generate $38 billion in revenue by the end of 2024. These figures reflect a robust performance in the face of technological shifts.
A key sentiment expressed by industry leaders is the transformative, rather than purely disruptive, nature of AI. Jack Madrid, President of the IT and Business Process Association of the Philippines (IBPAP), articulated this perspective, stating, “Generative AI will not replace people, but people who use Gen AI will replace people who don’t.” This quote encapsulates the urgent call for upskilling and reskilling within the workforce.
The industry has set ambitious targets for the coming years. A roadmap developed in 2022 outlines a vision for the sector to reach 2.55 million jobs and achieve revenues of $59 billion by 2028. To realize these goals, Madrid emphasized the critical need for continuous improvement in worker skills, particularly in emerging technologies like Artificial Intelligence.
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Furthermore, while North American clients are expected to remain the primary drivers of growth for the Philippine BPO sector, a “critical threat” identified by Madrid is the existing talent gap. He stressed the importance of equipping workers with in-demand skills such as cybersecurity, data analytics, and IT support. This strategic focus aims to elevate the Philippines’ position as an advanced nation for outsourcing, moving beyond its current reputation for low-complexity jobs. The emphasis is on fostering a workforce capable of handling more sophisticated and value-added tasks in the evolving global landscape.
