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How AI is Changing the IT-BPM Sector in the Philippines: Insights from IBPAP

Updated: Oct 18



Artificial Intelligence (AI) is no longer just a buzzword—it’s transforming industries worldwide. The Information Technology and Business Process Management (IT-BPM) sector in the Philippines is no exception. According to the Information Technology and Business Process Association of the Philippines (IBPAP), over 60% of companies in this booming sector are already using AI to enhance operations, from customer service to workforce management.


So, how is AI changing the landscape for the IT-BPM industry in the Philippines? And what does the future hold? Let’s take a closer look.


AI Boosts Productivity and Growth


Jack Madrid, IBPAP’s president, emphasized AI's overwhelmingly positive impact on the IT-BPM industry. Companies are seeing enhanced productivity, improved service quality, and higher revenues. The industry is projected to reach $38 billion in revenue this year, with a workforce of 1.82 million people—up from $35.5 billion and 1.7 million employees in 2023.

But the industry’s ambitions don't stop there. It aims to hit $40 billion in revenue and employ 1.84 million people by the end of the year, showcasing its rapid growth trajectory.


Addressing the Skills Gap


One of the major challenges facing the industry is a shortage of workers with advanced digital skills such as AI, data analytics, and programming. In IBPAP’s survey, 21% of companies cited the lack of skilled talent as a top concern. As AI becomes more widely adopted, there’s an increasing need to invest in training and upskilling employees to meet the growing demand for digital expertise.


Competing in a Global Market


As the IT-BPM industry in the Philippines continues to grow, it’s also facing rising competition from countries like South Africa, Colombia, Egypt, and Poland, which are rapidly enhancing their own IT-BPM services. To stay competitive, Jack Madrid emphasized that the Philippines must leverage its core strengths: strong English language skills, cultural adaptability, and technical expertise.

However, the industry is also contending with high operational costs and other business challenges. Finding ways to streamline expenses, such as healthcare costs, will be crucial to maintaining a competitive edge in the global market.


Looking Ahead: The Future of AI in IT-BPM


Despite the challenges, Jack Madrid remains optimistic. The industry has set its sights on ambitious goals—aiming for $59 billion in revenue and 2.5 million jobs by 2028. To achieve these targets, the industry must continue innovating, embracing AI, and prioritizing the development of a digitally skilled workforce.

In summary, AI is driving significant improvements in efficiency and growth for the IT-BPM sector in the Philippines, with companies under IBPAP reporting positive outcomes. Although challenges like the skills gap and global competition exist, the future is bright as the sector continues to innovate and evolve in the AI age.


Stay Ahead in the Age of AI!


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