Upskilling, digital infra investments to sustain IT-BPM growth – ADB

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May 7, 2026 | 12:00am

SAMARKAND, Uzbekistan – The Philippines will need to keep investing in skills and digital infrastructure to ensure the continued growth of its information technology – business process management (IT-BPM) sector, according to the Asian Development Bank (ADB).

This was among the recommendations contained in the multilateral lender’s Asian Development Policy Report 2026 launched during the ADB Annual Meeting here.

“Sustaining growth will require continued investment in digital and analytical skills, AI (artificial intelligence) and automation integration into training programs, improved business environment conditions and broader digital infrastructure expansion,” ADB said.

While the Philippines is a leading global IT-BPM hub both in workforce size and service capacity, challenges remain.

The ADB flagged infrastructure costs, citing that broadband affordability and rental rates can undermine the sector’s competitiveness.

It also said talent shortages could hinder the sector from moving up the value chain.

“Addressing these challenges can ensure IT-BPM continues as a cornerstone of the Philippines’ services-led growth and a resilient source of export income in the digital global economy,” the ADB said.

Currently, the IT-BPM sector accounts for about two-thirds of the Philippine economy’s services exports, increasingly rivaling merchandise exports in value.

The sector has also helped spur regional development through the establishment of IT-BPM facilities outside Metro Manila.

While the IT-BPM’s growth has historically been driven by voice services, the sector has been diversifying into higher-value services, including finance and accounting, IT and selected knowledge process outsourcing activities.

Earlier, IT and Business Process Association of the Philippines president and CEO Jack Madrid said that ease of doing business and lack of employable talent are challenges faced by the sector.

As such, he said the sector is making big investments in upskilling and talent development.

In 2025, the Philippine IT-BPM sector generated over $40 billion in revenue and employed 1.9 million.

For this year, the Philippine IT-BPM sector’s baseline target is to generate $42 billion worth of revenue and employ 1.97 million.