Augusto D. Bengzon l December 6, 2024 l Business World
At the recent FINEX General Membership Meeting, Jack Madrid, president & CEO of the IT & Business Process Association of the Philippines (IBPAP), delivered a compelling keynote on the evolving landscape of the IT-Business Process Management (IT-BPM) industry. His insights align with FINEX’s 2024 theme of Transformational Growth through Sustainability, Digitalization, and Diversity, offering invaluable guidance for Filipino business leaders navigating this dynamic sector.
In 2023, the IT-BPM industry hit a major milestone with a workforce of 1.7 million professionals, contributing $35.5 billion in revenues — equivalent to 8.7% of the country’s gross domestic product (GDP). The Philippines has solidified its position as a preferred partner for global brands, delivering services across six core sectors: Contact Centers, Global Shared Services, IT & Software, Healthcare Information Management, Animation, and Game Development.
Looking ahead, the industry is committed to becoming the world’s “top digital experience hub by 2028.” This ambitious vision aims to create 1.1 million new jobs, with 600,000 based in provincial areas, further bolstering the country’s economy. Despite slightly missing its 2024 targets — 1.82 million jobs and $38 billion in revenues instead of 1.84 million jobs and $39.68 billion — the industry remains on a solid growth trajectory.
Mr. Madrid highlighted that while growth is expected to be moderate between 2024 and 2026, the sector will stabilize by 2027 or 2028, influenced significantly by artificial intelligence (AI). He noted that AI is both a game-changer and a challenge, transforming operations across various domains, including software development, fraud detection, and customer service. In a recent survey, 67% of IT-BPM companies in the Philippines have integrated AI into their processes.
However, this rapid adoption of AI is not without its challenges. Implementation costs, system integration, and data privacy concerns are key hurdles. Additionally, 8% of IBPAP member firms reported workforce reductions due to AI integration. These developments highlight the need for upskilling and reskilling initiatives to equip employees with the competencies required in an AI-driven environment. Beyond technical skills, fostering adaptability and critical thinking among workers will be crucial to navigating the industry’s ongoing transformation.
Microsoft CEO Satya Nadella aptly stated, “In the age of AI, it’s not about man versus machine; it’s about man with machine.” This collaborative approach embodies the essence of transformational growth: blending human ingenuity with cutting-edge technology. By fostering innovation, prioritizing workforce development, and creating inclusive job opportunities, the Philippine IT-BPM industry can thrive in an increasingly competitive global market while driving national economic progress.
*** Augusto “Toti” D. Bengzon is the CFO, chief compliance officer & treasurer of Ayala Land, Inc., and the 2024 FINEX president. The views and opinions expressed above are those of the author and do not necessarily represent the views of Ayala Land, Inc., and FINEX. Photo from Pinterest.