As far as the information technology and business process management (IT-BPM) industry of the Philippines is concerned, there is still room for growth in the near future as the country could become the next hot spot for global capacity centers (GCCs), according to a BusinessWorld news report.
To put things in perspective, posted below is an excerpt from the BusinessWorld news report. Some parts in boldface…
THE PHILIPPINE information technology and business process management (IT-BPM) industry is still bullish on growth, as it expects to generate $42 billion in export revenues and increase headcount to 1.97 million in 2026, an industry group said.
The Philippines is also aiming to become the next hub for global capability centers (GCC), as it has seen an uptick in interest from multinational companies, the group added.
IT & Business Process Outsourcing Association of the Philippines (IBPAP) President and Chief Executive Officer Jonathan R. Madrid said the industry has so far created 450,000 new jobs and $10.5 billion in revenue since the creation of the industry roadmap in 2022.
“Now, for 2025, that includes 80,000 new jobs and $2 billion in incremental revenue. That is a growth of 4% and 5.3%, respectively,” he said at the International IT-BPM Summit on Tuesday. “By 2026, we project to reach $42 billion in revenue and close to a total of two million jobs for Filipinos.”
The expected jobs and revenues for 2026 are aligned with the baseline projections indicated in the IT-BPM Roadmap 2028. Mr. Madrid said the industry’s growth will still be driven by core segments — banking, financial services, and healthcare.
While the Philippines remains strong in contact centers, he noted faster growth coming from GCCs. “(There’s) a slightly higher growth rate from GCCs. Coming from a lower base, you tend to see more growth from that sector,” he said.
GCCs are offshore units established by multinational corporations to provide specialized services such as finance, IT and customer support to their global operations.
Mr. Madrid said he sees increased interest in setting up GCCs in the Philippines from prospective clients in the US, Australia and Europe.
Globally, GCCs are reshaping the IT-BPM industry, with its market expected to grow to $155 billion by 2027.
To date, there are 170 GCCs in the Philippines, growing by around 10 each year, but India continues to dominate with its 2,000 GCCs.
“We know that India dominates as the world’s GCC hub, showing how GCCs have evolved. They are no longer cost centers but strategic engines of innovation and transformation,” Mr. Madrid said.
“I think the Philippines should aspire to do the same. We have the talent, we have the scale, the cost efficiency, and the ecosystem maturity to become the next global GCC hub,” he added.
LEGISLATION NEEDED –IBPAP Chief Operating Officer Celeste B. Ilagan said more needs to be done on the policy front to support the growth of GCCs in the Philippines.
“GCCs have different needs compared with the traditional BPM providers,” she said, adding that the group wants Congress to pass legislation to help attract more GCCs into the country.
In particular, she said that the industry needs a law that is similar to the Regional Operating Headquarters (ROHQ) law. However, this move was “abandoned” in favor of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, she added.
“We know that other countries have this international business services law that they are already implementing so that they can get more GCCs to their country. So, we are trying to work along those lines as well,” she added.
Let me end this post by asking you readers: What is your reaction to this development? Do you think the Philippines will be able to act fast to attract more GCCs in the near future?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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