The country’s information technology and business process management sector (ITBPM) is expected to generate revenues of $38 billion in 2024, and a headcount of 1.82 million–adding 120,000 new jobs, Jack Madrid, Information Technology and Business Process Association of the Philippines (IBPAP) president and CEO said.
Madrid, speaking during the recently held International IT-BPM Summit (IIS) 2024, also said 8% of IBPAP members have reported a reduction in headcount due to artificial intelligence, but 13% have reported headcount gains.
“The impact of AI on operations has been mostly positive, improving employee productivity, operational efficiency, and service quality. However, challenges such as the cost of implementation, system integration, data privacy, and the lack of skilled talent remain barriers to adoption,” Madrid said.
“A frequently asked question is whether AI will take jobs from IT-BPM. While 8% of members have reported a reduction in headcount, 13% have reported headcount gains, and for the majority, jobs have not been affected. Instead, we are seeing significant upskilling as a requirement. AI is here to stay, but it is not negatively impacting our industry as some fear,” he emphasized.
The executive noted that: “As we’ve heard, AI won’t replace people, but people who use AI will replace those who don’t. AI is about people—how work gets done. We need to make people, not technology, central to how we deal with AI.”
IT and business process sector in 2024
“How did we do in 2024? With three months to go, we expect revenues of $38B and a headcount of 1.82 million, adding 120k new jobs. This represents 7% growth, double the global rate.”
“Despite challenges, our industry continues to be resilient,” Madrid said.
He also noted that the industry is “tracking above baseline.”
“One year ago, I shared our ambitious goals: adding 1.1 million jobs to reach 2.5 million and achieving $59B in revenue by 2028. Last year, I stated these targets were deliberately aggressive. And yet, we’ve made impressive progress and achieved those targets in 2023.”
“While 2024 may be slightly short of our aggressive goals, this isn’t a setback—it’s a reminder of how far we’ve come and how much more we can achieve. At this trajectory, we’ll achieve our baseline target by 2028, likely more. But let’s not settle for the baseline; let’s continue aiming high,” Madrid said.
“However, we must acknowledge that the environment has changed. The headwinds we face require us to adapt and implement additional interventions.”
20 years of leadership
“This year, we celebrate 20 years of IBPAP’s leadership in the IT-BPM industry. Over two decades, IBPAP has continuously evolved to meet the demands of the industry, establishing itself as a resilient presence in the global IT-BPM sector,” Madrid said.
In 2024, the IBPAP launched key initiatives that will strengthen our leadership and advance IT-BPM, Madrid added.
“The success of our industry rebranding has made the impact we wanted, with ten times the media reach compared to last year. We’ve positioned the IT-BPM industry as a strategic partner for the media, with platforms like the “Promptly Speaking” podcast and the launch of the inaugural Solaia Awards,” he said.
“Our theme for this year’s IIS is “Flow,” symbolizing IBPAP’s evolution and its ability to adapt and shape new opportunities. As we look to the next 20 years, IBPAP remains committed to innovation, leading, and shaping new opportunities.”
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