Upskilling, Digital Infra Investments to Sustain IT-BPM Growth – ADB

Why It Matters

IT‑BPM drives the Philippines’ services‑led export model, so infrastructure and talent gaps could stall economic diversification and revenue growth.

Key Takeaways

• ADB calls for AI, automation integration in training programs.
• Broadband affordability and rental costs risk sector competitiveness.
• Talent shortages may block move up the value chain.
• IT‑BPM already provides two‑thirds of services export earnings.
• 2026 target: $42 billion revenue, 1.97 million jobs.

Pulse Analysis

The Philippines has cemented its reputation as a global IT‑BPM hub, now delivering roughly two‑thirds of the nation’s services export earnings. In 2025 the sector posted more than $40 billion in revenue and employed 1.9 million workers, while expanding beyond traditional voice services into finance, accounting, and knowledge process outsourcing. This diversification has spurred regional development, with new facilities emerging outside Metro Manila, reinforcing the industry’s role as a resilient export engine.

The Asian Development Bank’s 2026 Development Policy Report flags two critical vulnerabilities: digital infrastructure and talent pipelines. High broadband subscription costs and steep office rental rates erode cost competitiveness, while a shortage of AI‑savvy, analytically trained workers hampers the sector’s ability to climb the value chain. ADB recommends targeted upskilling programs that embed artificial intelligence, automation, and data analytics into curricula, alongside policy reforms to improve the ease of doing business and expand affordable broadband coverage.

If policymakers act on these recommendations, the IT‑BPM sector can sustain its projected $42 billion revenue goal for 2026 and support nearly 2 million jobs. Strengthening digital infrastructure will lower operational expenses, making the Philippines more attractive to multinational clients seeking high‑value services. Simultaneously, a robust talent pipeline will enable the industry to capture higher‑margin contracts, further balancing the country’s export basket between services and merchandise. The sector’s continued growth will thus reinforce the Philippines’ services‑led economic strategy and bolster its position in the digital global economy.