The country’s information technology and business process management (IT-BPM) sector is outpacing its counterparts abroad by two percentage points in revenue growth, and the industry is on track to reach $40 billion for the year.

In a statement, the IT and Business Process Association of the Philippines (IBPAP) said the local industry is growing faster than the global average of three percent this year.

Based on the latest figures, IBPAP said the IT-BPM industry is on track to meet its projection of reaching $40 billion this year, up five percent from $38 billion in the previous year.

The industry is also expected to have a four-percent growth in employment to 1.9 million workers from 1.82 million last year.

“Despite macroeconomic headwinds, the Philippine IT-BPM industry grew faster than the global market,” said IBPAP president and chief executive officer Jack Madrid.

The year was a major challenge to the local sector, stemming from global policies that rocked business sentiment to proposed bills that sought to curb offshoring.

Yet, Madrid said it remained resilient owing to its “strong ecosystem, resilient IT-BPM member companies, and the digital Filipino workers delivering high-value work with global clients.”

“Today, the sector accounts for more than 8 percent of Philippine GDP (gross domestic product), reinforcing its role as one of the country’s most important engines of inclusive, modern work,” he said.

In particular, IBPAP said growth was driven by the industry’s strong performance across contact centers, banking and financial services, healthcare, and technology-enabled services.

The year also saw the continued expansion of global capability centers (GCCs) in the country, with about 170 here as of September.

GCCs are wholly owned offshore units of multinational corporations that deliver a wide range of business functions, such as customer support, data analytics, and marketing.

IBPAP said investor confidence in the industry was stronger this year, as investors shifted to long-term planning while others resumed expansions and made reinvestments in the country.

The group said policy developments such as the passage of CREATE MORE made the country a more welcoming place to invest in, especially as companies faced challenges before with the ease of doing business under the initial CREATE law.

Beyond incentives, the CREATE MORE also provided a legal basis for work-from-home and hybrid work arrangements for registered business enterprises (RBEs) located in ecozones and freeports.

“While full impact depends on consistent implementation, the reform strengthened perceptions of policy predictability—an issue closely watched by investors,” said Madrid.

IBPAP focused on bridging the talent gap this year, given the rising adoption of artificial intelligence (AI) that required a shift toward more complex and value-driven roles across the industry.

The group collaborated with the government and educational institutions to conduct work immersion and training programs.

In the coming year, IBPAP said the industry is poised to hit $42 billion in export revenues and nearly 1.97 million jobs, keeping its previous estimate.

Madrid said the focus next year is to “relentlessly upskill our workforce, embrace higher-value work, and continue working closely with government, academe, and investors.”

To sustain the upward trajectory, he said the industry must expand GCCs in the country, scale up AI responsibly, and enrich and protect the current and future workforce.