The IT-business process management (ITBPM) industry forecasts a seven percent revenue growth next year on continuing demand for Philippines as an outsourcing hub, according to its top official.

Jack Madrid, president and CEO of IT and Business Process Association of the Philippines (IBPAP), cited the strong demand despite challenges in supply of workers. 

“Target next year is at least seven percent, I will be happy with seven percent,” Madrid said. 

He, however, noted that the growth forecast is lower than this year’s because the base is already big. “When the base is bigger, growth becomes lower,” he explained.  

Growth drivers will continue to be healthcare, although all global healthcare firms have presence already in the country. There are also good prospects for banking and finance, and the traditional contact center, said Madrid.

“We don’t have a problem with demand, there are lots of demand for Philippines. Our challenge is supply, we need more employees,” he added.

For this year, Madrid expressed confidence that the industry could generate $35.4 billion in revenues or 8.8 percent growth, exceeding the global average of 7.7 percent growth. In 2022, the domestic ITBPM industry generated total revenues of $29 billion.

According to Madrid, 60 percent of the industry growth would still be driven by the contact center. He explained that not all contact center jobs are entry level kind of operations, but there are also complex jobs in this sector. 

In terms of jobs, Madrid said that the Philippine ITBPM sector has demonstrated outstanding performance. IBPAP is projecting a growth output of 8.7 percent in headcount this year, totaling 1.70 million full-time employees (FTEs). This surpasses the global growth rate of 7.7 percent. 

“Yes, we’re going to hit that number,” he said. He noted that more ITBPM activities are expected in the November and December, which are high growth months and companies are expected to hire more people for the Christmas season. 

“We are off to a great start, and we are committed to sustaining this trajectory as we accomplish the Philippine IT-BPM Roadmap 2028 goal of achieving 2.5 million jobs and $59 billion revenue by 2028,” said Madrid.

“Countryside growth remains robust and continues to draw the interest of IT-BPM players in locations outside of Metro Manila such as Cebu, Davao City, Iloilo, Clark, and Cagayan de Oro,” he said.

“We aim to continuously improve the ease of doing business, attracting more clients and investors that will further drive the countryside’s growth and development,” he added. 

Growth in demand for offshoring work are driven by US companies, persistent talent shortage in North America, and the remote and hybrid employment policy frameworks of the government. 

Madrid also cited the support of the Philippine Economic Zone Authority, particularly during the challenges of remote and hybrid work, as vital. 

“These policies have not only helped companies adapt to the change in the working landscape, but also attracted foreign investments to the Philippines, even during the pandemic,” he added.

The industry contributes 8.4 percent of the country’s gross domestic product.