By Raffy Ayeng
Copyright tribune
The IT & Business Process Association of the Philippines (IBPAP), the country’s umbrella organization of the IT-BPM industry, reported that the country’s sector took the 5 percent lead in terms of growth, and is standing at the forefront of two powerful opportunities, namely the integration of Agentic and Artificial Intelligence (AI) into global business services and customer experience.At the opening of the International IT-BPM Summit (IIS) 2025, themed “Rewired for Value: The Global Wake-Up Call” at Okada, Manila on Tuesday, IBPAP president and CEO Jack Madrid reported that by 2026, the IT-BPM industry is projected to reach $42 billion in revenues and employ 1.97 million Filipinos, reinforcing the country’s leadership as a global services hub.The country’s closest rival in the global IT-BPM dominance, India, which contributed a share of 7 percent to its GDP in the fiscal year 2024, only grew 3 percent this year, according to Madrid.With this, Madrid said the Philippines must move up the value chain to seize the said opportunities.“We are outpacing global growth, but growth alone will not secure our future. Transformation will,” he stressed.The Global Capability Centers market, which 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 reach $155 billion globally by 2027, with millions of new jobs created.Madrid noted that the Philippines, with its talent pool, cost efficiency, and mature ecosystem, 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,” he said.AI continued resurgenceMoreover, Madrid identified AI as the defining opportunity for the sector.However, to date, only 12 percent of Philippine firms report high AI maturity, while nearly half are already embedding AI in some form. By 2028, Madrid said more than 70 percent expect to reach high maturity, emphasizing 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, outlining six imperatives for transformation by aligning policies, talent, and markets, through driving collaboration between government, academe and industry.Further, he said the government should expand innovation beyond Metro Manila by building regional hubs and enabling countryside growth.Meanwhile, he said leadership should evolve into co-creators, empowering Filipino leaders to shape global solutions.
