The Philippines’ IT business process management (ITBPM) industry is growing 5 percent this year, overtaking the world’s three percent growth rate, and driving revenues to USD42 billion and 1.97 million workers by next year with the local talent pool leading in the integration of artificial intelligence in global capability centers (GCCs), the IT-Business Process Association of the Philippines (IBPAP).
“The Philippines’ got talent,” IBPAP President and CEO Jack Madrid told reporters on the main growth driver for the ITBPM sector at the opening Tuesday, September 23, of the International IT-BPM Summit (IIS) 2025 on the theme “Rewired for Value: The Global Wake-Up Call”.
In fact, he said, the Philippines is standing side by side India in terms in this industry, but the Philippines is outpacing India’s three percent growth.
In its website, IT firm Accenture defines GCC a strategic unit that supports an organization’s global operations through technology, talent, and innovation. (GCCs) are designed to leverage global talent pools and technological advancements to enhance organizational capabilities and drive business transformation. GCCs connect organizations to a global pool of top-tier talent, equipped with the latest technology and training needed to stay ahead of industry trends, continually innovate, and create sustained growth. These centers have evolved from being mere cost centers to strategic entities that significantly contribute to business growth and agility.
GCCs not only offer access to global, digital-first talent at scale but also serve as hubs where technology-enabled talent strategies are implemented to streamline processes and foster innovation.
By harnessing the power of global talent and cutting-edge technology, GCCs deliver a wide range of services from IT and finance to customer service and R&D. Modern GCCs do much more than provide lower costs or a better back office—they help organizations digitalize faster, unlock value across the enterprise, and drive growth.
Madrid added that the GCC market that delivers a wide range of functions from finance and HR to customer support, IT, data analytics, marketing, and digital services, across multiple industries is projected to hit USD155 billion globally by 2027, with millions of new jobs created.
With its talent pool, cost efficiency, and mature ecosystem, the Philippines is well-positioned to expand its role as a GCC hub driving enterprise-wide innovation. “We can be both: a world-class outsourcing hub and a GCC hub powering enterprise transformation,” Madrid said.
He, however, said that while the Philippines is moving up the ladder, it must move up the value chain to seize these opportunities. “We are outpacing global growth, but growth alone will not secure our future. Transformation will,” he stressed.
Celeste Ilagan, IBPAP chief operating officer, also noted two major challenges of the local ITBPM sector that are critical to investors in the sector. These are the implementation of the CREATE More, which provides tax incentives to investors, and cost of doing business in the country. She noted the need for compliance to the provisions of the CREATE More by some sectors yet. She said that the cost of doing business is also a determinant in growing the business in the country.
Meantime, Madrid pointed to AI as the defining opportunity for the sector. Today, only 12 percent of Philippine firms report high AI maturity, while nearly half are already embedding AI in some form.
By 2028, however, more than 70 percent expect to reach high maturity. He emphasized that the Philippines’ edge lies in its process knowledge, empathy, and trusted human interaction, making AI a tool for augmentation rather than replacement.
“Technology alone will not win. Our winning formula is blending AI with Filipino ingenuity, empathy, and trust,” he added.
Madrid said that to sustain the Philippines’ momentum as a global leader, the industry must rewire for higher-value work.
Madrid has outlined six imperatives to ensure the transformation of the industry:
- Align policy, talent, and markets – drive collaboration between government, academe, and industry.
- Expand innovation beyond Metro Manila – build regional hubs and enable countryside growth.
- Evolve leadership into co-creators – empower Filipino leaders to shape global solutions.
- Scale the Philippines’ GCC footprint – grow GCCs into strategic engines of capability and innovation.
- Make talent future-ready – equip the workforce with digital fluency and problem-solving skills.
- Keep human impact at the core – ensure technology enhances, not replaces, Filipino ingenuity.
Madrid closed with a uniting call, noting that the industry already employs nearly two million Filipinos and contributes 8 percent of GDP. “The future of IT-BPM is not just our industry’s agenda — it is a national priority. Together, we can rewire for value and keep the Philippines at the heart of global services.”
