Philippines Information Technology and business processes Management (IT-BPM) Indus RiverTry to remain optimistic about growth It is expected to generate $42 billion An industry group said export revenue in 2026 and increased to the total of 1.97 million people.
The group added that the Philippines also aims to be the hub of the next Global Capacity Center (GCC) as it sees growing interest among multinational corporations.
President and CEO of the Association for IT and Business Process Outsourcing (IBPAP)fIcer Jonathan R. Madrid said the industry has generated 450,000 new jobs and $10.5 billion in revenue so far since the industry’s roadmap was created in 2022.
“Now, for 2025, which includes 80,000 new jobs and $2 billion in incremental revenue, up 4% and 5.3%, respectively,” he said at the International IT-BPM Summit on Tuesday. “We expect to reach $42 billion in revenue by 2026, with the total Filipino population approaching 2 million jobs.”
Expected work and revenue for 2026 are consistent with the baseline forecast indicated in the 2028 IT-BPM roadmap.
Mr Madrid said the industry’s growth will still be driven by core segments (banking, financial services and healthcare).
Although the Philippines is still strong at the Contact Center, he noted that growth from the GCC is faster. “The growth rate from the Gulf Cooperation Council (GCC) is slightly higher. From lower bases, you tend to see more growth from the field,” he said.
The GCC is a maritime unit established by multinational corporations that aims to provide professional services such as finance, IT and customer support for its global operations.
Mr Madrid said he believes potential clients from the United States, Australia and Europe have grown in interest in establishing the GCC in the Philippines.
Globally, the GCC is reshaping the IT-BPM industry, with its market expected to grow to $155 billion by 2027.
So far, the Philippines has 170 GCCs, up about 10 per year, but India continues to rule with 2,000 GCCs.
“We know that India is the World GCC center, demonstrating how the GCC is developing. They are no longer cost centers, but strategic engines for innovation and transformation,” Madrid said.
He added: “I think the Philippines should be eager to do the same. We have talent, scale, cost efficiency and ecosystem maturity to be the next global GCC hub.”
Legislation requires
Chief Operating Officer of IBPAPfICER CELESTE B. Ilagan said more needs to be done in terms of policy to support the growth of the GCC in the Philippines.
“The GCC has different needs than traditional BPM providers,” she said, adding that the group hopes Congress will pass legislation to help attract more GCC into the country.
She specifically said the industry needed a law similar to the Regional Operations Headquarters (ROHQ) law. However, she added that the move was “abandoned” to benefit business recovery and tax benefits under the Business (creation) Act.
She added: “We know other countries already have international business services laws and they are already implementing them so that they can get more GCC from their own countries. So we are working hard along those routes, too.”
ROHQ Law or Republic Act No. 8756 provides incentives for multinational corporations that establish ROHQ and regional headquarters in the country.
Under the law, companies that do not receive income from the country do not pay income tax, while ROHQ and regional headquarters are exempt from VAT, local taxes and import taxes on training materials, equipment and vehicles.
“We are not going to reform the Creation Act. It could be a new legislation that will be similar to previous ROHQ laws. It is really aimed at the goal of attracting the GCC to the country,” she said.
“The GCC is more about ‘cost amount’. They are cost centers, so different incentives will be more important for them.
Too big to fail
Meanwhile, Mr Madrid said the IT-BPM industry is at least 8% of the economy and faces a “essential” challenge.
“The Philippines IT-BPM industry is too big to fail. But it is equally important that it is so important not to develop. We cannot bear complacency. We cannot let the narrative of the sunset industry take root. Because we are growing faster than global markets.”
He added: “The world continues to see the Philippines as a trusted, essential partner. Therefore, our challenge is not survival. Our challenge is to maintain the essential challenge by enhancing our value.”
Mr Madrid said only 12% of Filipino companies reported high maturity, while 70% were expected to reach high levels by 2028.
“So, the winners will not be the companies chasing AI (artificial intelligence) demonstrations. The winners will be those who reconnect workflows, integrate with AI, but blend with the core of humanity and close the skills gap in cloud, cybersecurity and automation,” he said.
He added: “Now, that’s why IBPAP calls for a national AI strategy that ensures that AI adoption is not decentralized and not accidental.
He said AI strategies should build digital and AI skills at scale, establish governance and trust frameworks, and achieve industry transformation within scope. – Justin Ireland D. Table
