IT-BPM industry sees revenue exceeding $50 billion by 2028

MANILA, Philippines — The Information Technology and Business Process Association of the Philippines (IBPAP) is optimistic that industry revenues will cross the $50 billion mark by 2028, even as it cited the need to address talent supply and ease of doing business challenges.

“We believe that we can cross $50 billion (in revenue),” outgoing IBPAP president and CEO Jack Madrid said in a press briefing during the International IT-BPM (Business Process Management) Summit.

If the revenue target is achieved by 2028, he said the IT-BPM industry would have added about 250,000 jobs since 2025.

Last year, the IT-BPM industry generated $40.3 billion in revenue and employed 1.9 million people.

To reach over $50 billion in revenue by 2028, Madrid said the industry needs available talent to support it.

“Being able to meet the demand for talent, I think, is probably the number one factor,” he said.

He said addressing the remaining concerns on ease of doing business is also important in achieving the revenue target.

“Investors do not like uncertainty. They do not like inconsistency, and there are still some issues as a country that we can do to address the business environment,” he said.

Incoming IBPAP president Celeste Ilagan said the industry is facing challenges related to business permitting and imposition of taxes and charges by local government units.

In July, IBPAP said it lowered its 2028 revenue target to range from a downside scenario of $43.3 billion to a best-case scenario of $50.5 billion in 2028 to reflect changes in the industry.

The revenue target is lower than the $59 billion aggressive revenue target for 2028 set under the industry roadmap released in 2022.

“We remain confident in our projections. We believe them to be realistic and I think the good news is we can achieve those numbers,” Madrid said.

For this year, he said the industry expects revenue to reach the $42.3-billion goal.

Earlier, he said this year’s revenue growth is expected to be supported by growing interest in setting up global capability centers (GCCs) in the country.

Unlike traditional outsourcing managed by an external service vendor, GCCs are set up by multinational firms to handle key business operations internally.

Madrid also said the IT-BPM industry’s revenue is expected to continue growing to reach $45 billion next year.

“That continued increase will come from the continued increase in the value of the work we do,” he said.

He said revenue is expected to grow faster than headcount as artificial intelligence augments the value of work and leads to companies requiring fewer employees.

IBPAP expects its full-time employees growing by 2.6 percent annually this year and in 2027.

The industry also expects revenue per employee to be at $21,800 this year and rise to $22,600 next year.

“The value of the work is the same, if not higher, but requiring fewer people to do it,” Madrid said.

“By centrally tracking document status, location and custody, the DTMS is intended to reduce the risk of misplaced records, improve coordination among offices and strengthen accountability in document handling,” the BIR said.

The pilot is part of the agency’s broader effort to modernize its internal operations and make its operations more efficient and responsive, it said.