As the country’s major economic component brings billions of dollars into the government coffers, the Information Technology and Business Process Management or IT-BPM industry is seen to grow seven percent, a conservative forecast compared to the 9 percent growth rate it reaped in 2023.

“Earlier, we were looking at 6.5 percent to 7.5 percent for both revenue and headcount. Now, as we approach the first semester of 2024, we are currently reviewing and measuring where we are in the first half. So, in the next 60 to 90 days we will have a much clearer picture of 2024 performance but from all uh indications I think it’s safe to say we will grow around 7 percent for both headcount and revenue,” said IBPAP president Jack Madrid.

Profits of the ITBPM industry in 2023 posted $35.5 billion, higher than the $32.5 billion revenue in 2022. Madrid said the change in numbers is normal, as part of their review of the industry’s progress that they are doing every year.

He said the forecast is on track on the roadmap they launched earlier.

Scenarios

“But in our roadmap projections, we had three different scenarios. We had the aggressive scenario, we had the baseline scenario, which is in the middle, and then we had the constraint scenario, which is the most conservative. When we launched the roadmap, we tried to share both the aggressive and the baseline scenarios and we set a very ambitious target of reaching 2.5 million jobs by 2028 and $59 billion in revenue due for the same period,” he explained during a virtual interview with reporters.

The Philippine IT-BPM Industry Roadmap 2028, launched in September 2022, targets a compound annual growth rate (CAGR) of 10.4 percent in the next six years, with annual revenues seen to reach $59 billion by 2028.

“From the very start, we stressed that those are the aggressive scenarios and so that is what we still hope that we can achieve but those are the aggressive scenarios. What we are confident to achieve are the baseline scenarios,” Madrid added.

Growth drivers for 2024

Madrid maintained that the growth factor of the industry is still due to the very high demand of the Filipino workforce who continue delivering global business services to global customers, as well as the cost optimization for global companies.

“One, is the ongoing demand for Philippine workers. Second, it is the pressure on global companies for cost optimization, and then, third, the renown of the Filipino workforce as the logical place to offshore global customer experience services,” he stressed.

Aligned with the visionary rebranding initiative aiming for a $59-billion industry and 2.5 million jobs by 2028, IBPAP has recently launched Solaia: The IT-BPM Awards.

Celebrating the pioneering efforts and transformative strides made by companies in the Philippine IT-BPM sector, the inaugural awards event highlighted their innovative initiatives, resilience, and contributions to industry advancement.

Staged on the 20th year of IBPAP, Solaia: The IT-BPM Awards symbolized the industry’s evolution and resilience, reflecting its commitment to excellence, innovation, and collaboration.

“Solaia embodies the radiant spirit and vibrancy of the Philippine IT-BPM industry, echoing its aspirations for continued growth and global prominence,” according to Madrid.