Monday, June 17, 2024

IBPAP unveils 6-year growth forecast for PH tech sector

The IT and Business Process Association of the Philippines (IBPAP) has unveiled its six-year industry growth forecast at the 14th International Innovation Summit (IIS), reaffirming that the country’s IT and business process management (IT-BPM) sector will remain an indispensable pillar of recovery, growth, and resilience for the country.

IBPAP president and CEO Jack Madrid

Themed, “The Big PH IT-BPM Leap: Growth. Resurgence. Impact. Transformation,” IIS 2022 set the stage for how the country will continue to be at the forefront of talent, technology, and transformation through the Philippine IT-BPM Industry Roadmap 2028.

On Day 1 of the Summit, IBPAP and its research partner, the Everest Group, outlined the strategic priorities and acceleration levers that will define the sector until 2028.

Since Roadmap 2022 was launched in 2016, we’ve seen just how significant and widespread the achievements and contributions of the IT-BPM industry are,” Jack Madrid, IBPAP president and CEO, said.

“By the conclusion of Roadmap 2028, we aim for the sector to create even more positive impact as we envision the Philippines to become the world’s number one experience hub for customer-centric and digitally-enabled services, while driving sustainable economic and social growth.”

With an estimated growth rate of 8.5%, the Philippine IT-BPM industry is expected to create up to 1.1 million direct jobs in the next six years, 54% of which will be in the countryside.

This will bring the sector’s total headcount to 2.5 million by 2028. Highlighting the industry’s multiplier effect, IBPAP also projects generating up to 3 million indirect jobs for allied sectors such as retail, hospitality, infrastructure, transportation, and real estate.

The industry also has the potential to nearly double in size as its annual revenue is likely to reach $59 billion in 2028, reflecting a compound annual growth rate (CAGR) of 10.4%.

While the future of the Philippine IT-BPM sector is brighter than ever, IBPAP emphasized that it is contingent on carrying out several interventions. “The growth of the industry is a goal that we must all work toward as a collective, even as external and internal factors shape the opportunity landscape,” said Madrid.

“These include the global economy, overall demand for IT-BPM services, the adoption of hybrid work models, infrastructure development, supply of skilled talent, and favorable government policies.”

“The Philippine IT-BPM sector is at the cusp of a new and exciting era, and the future that awaits us is the brightest that it has ever been. By 2028, the industry may be able to contribute up to 8.5% to the country’s gross domestic product (GDP),” the executive added.

“This is a significant feat that will need everyone’s support as we take this big leap forward, propelling this powerhouse sector and cementing the Philippines as the top investment destination for IT-BPM services.”

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