The IT and Business Process Association of the Philippines (IBPAP) is poised to revise its growth targets for the information technology-business process management (IT-BPM) sector. This decision comes in light of rapid advancements in artificial intelligence (AI), which are reshaping the business process outsourcing (BPO) landscape.
Revising Growth Projections
We’re not going to rest on our laurels because technology is changing faster than we can ever imagine.
Jonathan R. Madrid, IBPAP President and CEO
- Current staffing in the BPO sector stands at 1.9 million.
- Revenue from the industry reached $40 billion in 2025.
- Projections aim for 2.5 million workers and $59 billion by 2028.
During the recent AI & Skills Summit, IBPAP President Jonathan R. Madrid highlighted that while staffing projections for 2026 are on track, they need to adapt to the accelerating pace of technological change. The association plans to share updated projections in the coming weeks.
Madrid emphasized the need for the Philippines to cultivate an AI-augmented workforce, which requires ongoing education, improved institutional support, and ethical governance. He noted, "In the AI economy, learning velocity becomes an economic advantage."
The growing reliance on AI is expected to automate many routine tasks in the BPO sector, raising the stakes for human involvement in decision-making processes. Madrid stated that human judgment remains essential, arguing that trust and governance must remain at the core of business decisions.
Donald Patrick L. Lim, President of the Management Association of the Philippines, echoed these sentiments, stating that AI cannot replicate soft skills such as creativity and relationship-building. He stressed the necessity for BPO firms to evolve beyond simple task outsourcing to more complex, knowledge-intensive work.
The Technical Education and Skills Development Authority (TESDA) is also stepping in to support workers who may face displacement due to AI. TESDA is implementing training programs under the Enterprise-Based Education and Training Framework Act to align worker skills with industry needs.
As the BPO industry navigates this technological evolution, the balance between human skills and automation will be critical for maintaining the Philippines' competitive edge in the global outsourcing market.