IT-BPM sector expects to hit baseline targets

MANILA, Philippines — The country’s information technology-business process management (IT-BPM) industry expects to post a seven percent growth in terms of revenue and headcount this year, on track with its baseline scenario target, but below its aggressive scenario target.

“From all indications, I think it’s safe to say we will grow around seven percent for both headcount and revenue (this year),” IT and Business Process Association of the Philippines (IBPAP) president Jack Madrid told reporters.

A seven percent growth will translate to the IT-BPM industry’s revenues hitting $38 billion and employee count reaching 1.82 million this year from $35.5 billion and 1.7 million in 2023.

Earlier this year, Madrid said the IBPAP is aiming to post a seven percent growth in revenues and headcount  this year.

He also said earlier that the aim is to generate $40 billion in revenues and increase the headcount to 1.84 million employees this year.

To achieve this year’s  revenue target,  the industry will have to grow by 12.6 percent.

To hit the employment target, on the other hand, the industry’s workforce count has to grow by eight percent this year.

“What we are confident to achieve obviously, are the baseline scenarios,” Madrid said.

He said the industry roadmap’s projections has three different scenarios: aggressive,  baseline and constrained.

The roadmap has set an aggressive target of reaching 2.5 million jobs and $59 billion in revenue by 2028.

Madrid said the IBPAP still hopes to achieve the targets under the aggressive scenario.

The IBPAP expects industry growth this year to be supported by the strong demand for the Filipino workforce to continue delivering business services to global customers.

In addition, he said the pressure on global companies for cost optimization would support the IT-BPM’s growth.

He said the IBPAP is currently assessing where the industry stands for the first semester of the year and expects to have a clearer picture of the performance in the next 60 to 90 days.