IT-BPM sector seen to hit $40 billion revenues this year

MANILA, Philippines — The country’s information technology – business process management (IT-BPM) industry is seen booking revenues amounting to $40 billion this year, fueled by demand from banking and health services, according to Information Technology and Business Process Association of the Philippines.

“We should cross $40 billion by the end of the year,” IBPAP president and CEO Jack Madrid told reporters.

Under its roadmap, the IT-BPM industry was aiming to achieve $40 billion worth of revenues in 2024.

However, revenues of IT-BPM industry missed the target and reached $38 billion last year, still in line with the baseline scenario target of posting seven-percent growth.

Last year’s revenues were seven percent higher than the $35.5 billion generated in 2023.

Madrid said the industry expects higher revenues this year to be supported by demand from the banking, financial services and health sectors.

Despite the push by the United States to bring back jobs to its shores, IBPAP still expects strong demand for IT-BPM services from North American firms.

“We should be scared about not being skilled enough. That’s the only thing I’m concerned of because the demand is there. We have the brand,” Madrid said.

In terms of employment, he said the industry’s headcount could cross two million in the next 12 to 18 months.

Last year, the IT-BPM had 1.82 million employees, up by seven percent from 1.7 million in 2023.

According to Madrid, a review of the industry’s targets under the roadmap would be undertaken by the middle of the year.

Under the roadmap, the IT-BPM industry’s aggressive target is to generate $59 billion in revenues and employ 2.5 million by 2028.