THE Philippine information technology and business process management (IT-BPM) industry is poised to reach about $42 billion in export revenues and nearly 1.97 million jobs in 2026, as companies accelerate artificial intelligence adoption, expand global capability centers and push deeper into higher-value services, industry leaders said.
The sector closed 2025 with solid momentum, adding around 80,000 jobs and $2 billion in revenues to reach roughly 1.9 million workers and $40 billion in exports, according to the IT & Business Process Association of the Philippines (IBPAP). Employment grew four percent last year while revenues rose five percent, outpacing estimated global industry growth of about three percent.
“Despite macroeconomic headwinds, the Philippine IT-BPM industry grew faster than the global market,” IBPAP president and chief executive Jack Madrid said, adding that the shift toward more complex, capability-driven work underpinned the outlook for 2026.
The industry now accounts for more than eight percent of Philippine gross domestic product, cementing its role as a key engine of export growth and modern employment.
AI and talent shape growth path
IBPAP said demand is increasingly shifting away from traditional contact center work toward roles in analytics, business intelligence, program and project management, transformation and strategy support, driven by the expansion of global capability centers.
Artificial intelligence is reshaping operations across banking and financial services, healthcare and technology-enabled services, lifting productivity while raising expectations for digital fluency and higher-order problem-solving skills.
To address persistent talent gaps, IBPAP has expanded partnerships with government and academe, including senior high school work-immersion programs with the Department of Education and skills-progression initiatives with the Commission on Higher Education. Additional enterprise-based training programs are being rolled out with the Department of Information and Communications Technology and the Technical Education and Skills Development Authority.
Policy reforms, regional expansion
Investor confidence improved in 2025 following policy reforms, including the passage of Create More and clarified work-from-home rules by the Philippine Economic Zone Authority, easing long-standing concerns around incentives and operating flexibility.
While IBPAP said consistent implementation will be key, the reforms encouraged longer-term planning, with several multinational firms resuming expansions and reinvestments. Growth also continued to spread beyond Metro Manila, with regional hubs such as Cebu, Iloilo, Bacolod, Davao, Cagayan de Oro and Clark attracting new projects.
2026 priorities
As the industry edges closer to the two-million-job mark, IBPAP said its priorities for 2026 include scaling AI responsibly, expanding global capability centers and deepening investments in workforce upskilling and well-being.
“What got us here will not be enough to take us where we need to go next,” Madrid said. “Our focus in 2026 is to relentlessly upskill our workforce, embrace higher-value work and continue working closely with government, academe and investors to keep the Philippines at the heart of global services.” / KOC