The IT and Business Process Management (IT-BPM) sector closed 2025 with sustained growth, strong investor confidence, expanded Global Capability Centers (GCCs), and a continued shift toward higher-value, capability-driven work amid technological change and global headwinds.

In its official report, the IT and Business Process Association of the Philippines (IBPAP) said the industry is on track to reach 1.9 million jobs and $40 billion in export revenues, adding around 80,000 jobs and $2 billion in revenues in 2025.

“Despite macroeconomic headwinds, the Philippine IT-BPM industry grew faster than the global market. Employment growth reached 4 percent, while revenue growth stood at 5 percent, outpacing the estimated global growth of 3 percent over the same period,” said IBPAP President and CEO Jack Madrid.

As of December 2025, the sector accounts for more than 8 percent of the country’s gross domestic product, reinforcing its role as one of the Philippines’ key engines of inclusive and modern employment.

Madrid attributed the year’s performance to “a strong ecosystem, resilient IT-BPM member companies, and the digital Filipino workers delivering high-value work with global clients.”

Talent, AI, and the shift to higher-value work

Addressing the talent gap remained the industry’s most pressing challenge in 2025, even as it sustained strong performance across contact centers, banking and financial services, healthcare, and technology-enabled services.

The continued expansion of GCCs underscored growing demand for higher-value skills, with Filipino professionals increasingly taking on roles in business intelligence, project and program management, transformation, strategy support, and analytics.

Artificial intelligence further reshaped day-to-day operations across the sector, accelerating productivity and enhancing service quality. This transformation raised expectations for digital fluency, problem-solving, and higher-order capabilities, reinforcing the shift toward more complex, value-driven roles.

To support this transition, IBPAP strengthened collaboration with government and academe to prepare a future-ready workforce.

These efforts included expanding senior high school work immersion programs with the Department of Education (DepEd), advancing the Skills Progression Partnership (SkiPP) Program with the Commission on Higher Education (CHED), and helping bridge the digital divide through the Byte the Gap PC donation program.

In 2025, IBPAP turned over 1,641 laptops and desktop units to DepEd, with an additional 500 units scheduled for early 2026.

These initiatives run alongside the Uplifting National Labor through AI and Digital Skilling (Project UNLAD), which includes partnerships with the Department of Information and Communications Technology (DICT) and the Technical Education and Skills Development Authority (TESDA) under the Enterprise-based Education and Training (EBET) program.

By year’s end, 106 EBET training programs had been submitted across 24 participating IT-BPM enterprises.

Together, these programs ensure talent development keeps pace with the industry’s shift toward higher-value, capability-driven work, according to Madrid.

Beyond growth, IBPAP also reaffirmed its commitment to workforce well-being as a government partner in advancing labor standards and occupational safety and health, with emphasis on preventive well-being and healthier workplace practices.

Policy developments further renewed investor confidence with the passage of CREATE MORE and the clarification of PEZA’s work-from-home guidelines, addressing long-standing concerns on ease of doing business, incentives, and hybrid work arrangements.

While the full impact will depend on consistent implementation, the reforms strengthened perceptions of policy predictability, a key consideration for investors.

IBPAP also participated in policy consultations to amend the Cybersecurity Act, aimed at strengthening cyber resilience through balanced, risk-based regulation aligned with industry realities.

Investor sentiment shifted toward longer-term planning in 2025, as several global firms resumed expansions and reinvestments in healthcare, financial services, and technology-enabled operations.

Growth also expanded beyond Metro Manila to key regional hubs such as Cebu, Iloilo, Bacolod, Davao, Cagayan de Oro, and Clark, supporting more balanced national development.

Still optimistic in 2026

“As the industry approaches the 2-million-job mark, IBPAP sees three key priorities to sustain its trajectory: scaling AI responsibly, expanding global capability centers, and enriching and protecting present and future talent. In 2026, the sector is poised to reach $42 billion in export revenues and nearly 1.97 million jobs,” Madrid said.

“What got us here will not be enough to take us where we need to go next. Our focus moving into 2026: relentlessly upskill our workforce, embrace higher-value work, and continue working closely with government, academe, and investors to keep the Philippines at the heart of global services,” he added.