THE information technology and business process management (IT-BPM) industry said it is on track to exceed its base-case targets for revenue and employment this year.
IT and Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Jack Madrid said on the sidelines of the International IT-BPM Summit on Wednesday that the industry is “tracking above baseline. While 2024 may be slightly short of our aggressive goals, this isn’t a setback — it’s a reminder of how far we’ve come and how much more we can achieve,” he added.
During his presentation, Mr. Madrid said industry revenue is expected to hit $38 billion this year on staffing of 1.82 million.
The headcount projection implies 120,000 new jobs or 7% growth, double the global rate.
“Despite challenges, our industry continues to be resilient,” he said.
“At this trajectory, we’ll achieve our baseline target by 2028, likely more. But let’s not settle for the baseline; let’s continue aiming high,” he added.
He said the headwinds include the talent and skills gap, the rising cost of doing business, issues with ease of doing business, and global competition.
Citing a survey, he said that 21% of IT-BPM firms consider the talent and skills gap a critical challenge for the industry.
“The demand for advanced digital skills like data analytics, programming, and machine learning, as well as soft skills and domain-specific skills in healthcare, accounting, and banking, outpaces our workforce’s current capabilities,” he said.
He said that operating costs in the Philippines remain higher compared to other destinations.
“We’re actively pushing for the revocation of additional taxes, and we’ve initiated discussions on rising healthcare costs,” he said, adding that the industry is working with the local government units and investment promotion agencies such as the Philippine Economic Zone Authority (PEZA).
“On the bright side, we expect the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) law to be passed soon, stabilizing incentives and restoring remote work privileges for PEZA locators,” he added.
He said new competitors are emerging like Colombia, South Africa, and Poland.
“While they lack the Philippines’ demographic advantage, we must innovate, differentiate, and leverage our strengths in language proficiency, cultural adaptability, and technical expertise,” he added.
Next year, Mr. Madrid said that the group will be recalibrating the targets contained in the IT-BPM Roadmap to take into account recent developments.
“The scheduled recalibration of the roadmap will happen in 2025,” he said.
“I think in 2025 we will still have positive growth. Maybe not 7% or 8%, but something more modest. But we will still grow. Beyond 2025? Maybe less certain,” he added.
In the roadmap, the IBPAP set a staffing target of 2.5 million and a revenue goal of $59 billion by 2028. — Justine Irish D. Tabile