The information technology and business process management (IT-BPM) sector is confident it will maintain its upward revenue trajectory this year, driven by sustained demand from foreign firms.

IT and Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Jack Madrid said he is “cautiously optimistic” for another positive growth for the IT-BPM industry, building on the momentum from last year.

Madrid said the IT-BPM industry generated more than $40 billion in revenue last year, about five percent higher than $38 billion in 2024.

In terms of workforce, he said the industry now employs 1.9 million, up four percent from the previous year’s 1.82 million employees.

Madrid said these increases affirm the IBPAP’s initial projection that the country’s growth would exceed the global average of three percent

He noted that the performance was on the backdrop of a “very challenging geopolitical macroeconomic climate” that made investors uncertain about expanding their business.

“We will continue to see some of that uncertainty as we begin 2026. But I can say that we are cautiously optimistic about another positive year of growth for the Philippine IPBPM industry,” Madrid told reporters.

For the year, the IT-BPM industry is expected to generate $42 billion in revenue and create nearly 1.97 million jobs.

Madrid said growth this year will once again hinge on the continued expansion of global capability centers (GCCs), which are now around 160.

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

In addition, the industry's continued expansion will leverage strong demand across banking, financial, insurance, and healthcare services.

“In fact, I think it will continue to outpace the overall [global] growth rate of IT-BPM,” said Madrid.

Still, Madrid said the country needs to address major issues facing the IT-BPM industry to maintain investor trust.

He said the ease and cost of doing business in the country remain a challenge for investors, particularly in terms of complications with local business permits, issues with incentives, and the poor infrastructure.

The government’s habit of declaring holidays on short notice is also a concern for investors, he said, since other countries do not follow this practice.

“If we don't meet the expectations of our investors, justifying their decision to establish operations in the Philippines, then that would be a challenge,” Madrid stressed.

Further, he said they are also focused on upskilling the workforce to prepare them for more complex and value-driven roles given the emergence of artificial intelligence (AI).

The IT-BPM industry invest roughly ₱1.4 billion per year for talent development.

Through these efforts, the Philippines aims to maintain its dominance amid emerging IT-BPM industries in countries such as Egypt, Poland, South Africa, Vietnam, Malaysia, and Colombia.

According to IBPAP, the country holds a 20 percent market share of the global IT-BPM sector.

“It should be our collective objective to protect and retain the market share,” said Madrid.