PH IT-BPM Firms Push Growth Despite Talent Gaps, AI Disruption

The Philippine IT-BPM industry is targeting steady expansion despite workforce challenges and the growing impact of artificial intelligence.

The sector is projected to grow 5% in 2025, maintaining the country’s position as a global outsourcing leader. By 2026, revenues are expected to reach USD 42 billion, with direct employment rising to 1.97 million Filipinos.

Education, however, remains a critical challenge. In the 2022 Programme for International Student Assessment (PISA), the Philippines ranked 77th out of 81 economies, with Filipino students scoring below average in math, reading, and science. The Philippine Statistics Authority also found that one in five senior high school graduates struggles with reading comprehension.

Jack Madrid, president and CEO of the IT and Business Process Association of the Philippines (IBPAP), said the industry is already feeling the effects of weaker English proficiency.

“Our conversion rate out of 100 job seekers who are interviewed in our industry remains low,” Madrid said. “We’ve been communicating this concern with the Department of Education for years. There is no quick fix, but there are encouraging signs.”

To address this, IBPAP, DepEd, and industry partners are training 270,000 learners across 10,000 public schools to improve language and technical skills needed in the sector.

As AI adoption accelerates, industry leaders are urging continuous workforce upskilling to keep Filipino talent relevant in automation driven global markets. While AI poses challenges, it also offers opportunities for higher value services if the country can bridge its skills gap in time. We hope you found this article insightful and informative. Follow us to stay updated with more expert perspectives and industry insights.