The Philippine Information Technology and Business Process Management (IT-BPM) has experienced a remarkable expansion in 2024, driven by strong U.S. demand, technological adoption, and strategic geographic shifts. Metro Manila and provincial areas have witnessed substantial office space uptake, solidifying the sector’s status as a global outsourcing leader.
Revenue milestones and office space expansion
According to a recent Colliers study, the IT-BPM sector generated $38 billion in revenue in 2024, a 7% increase from $35.5 billion in 2023. U.S. demand, particularly from banking, healthcare, and financial services, fueled this growth despite falling short of IBPAP’s projected goal of $40 billion in export revenues.
The sector also expanded its workforce by 120,000, bringing total employment to 1.82 million. This surge in activity translated into significant office space transactions.
Metro Manila alone recorded 246,672 square meters of office take-up, while provincial areas added another 177,859 square meters. Altogether, IT-BPM firms accounted for 44% of the total office transactions nationwide, highlighting the industry’s sustained expansion.
Key trends: AI integration and regional expansion
Several key trends shaped the sector in 2024. Artificial intelligence (AI) integration increased, with 67% of IT-BPM firms using the technology in customer support, data processing, and quality assurance operations. Although 8% reported workforce reductions due to AI, 13% experienced headcount growth, indicating AI’s role in enhancing rather than replacing humans.
Another critical shift was the industry’s move beyond Metro Manila, driven by initiatives such as the Digital Cities 2025 roadmap. This strategy aims to transform 25 provincial cities into IT-BPM hubs to alleviate capital congestion and stimulate regional economic development.
Major industry players, such as Telus, Accenture, and Concentrix, have increased their footprint in the Philippines by leasing additional office spaces. The establishment of operations by newcomers such as X (Twitter) Corporation and Gear Inc. further enhanced the nation’s allure as a leading outsourcing location.
Initiatives such as Digital Cities 2025 have accelerated the industry’s expansion into regional areas. This tactical change promotes regional economic development while reducing traffic and excessive expenses in the capital.
Addressing skills gaps for future growth
Despite its achievements, the IT-BPM industry must close the growing skills gap to stay competitive.
IBPAP president Jack Madrid stresses the value of expanding one’s understanding of cloud computing, data analytics, and artificial intelligence. Cooperation between the government, academic institutions, and business leaders is crucial to future-proof the workforce and support the sector’s growth momentum.
Overall, the Philippine IT-BPM industry remains robust. Its adaptability, innovation, and strategic expansion position it well to meet evolving global demands and sustain growth in an increasingly digital and competitive international market.
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Briones, J. A. (2025, March 29). Philippine IT-BPM Sector Hit $38B Revenue in 2024: Colliers Report. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/philippine-it-bpm-hits-38b-revenue-colliers-report/.
