IBPAP bullish on growth of global capability centers in PH

The Philippine information technology-business process management (IT-BPM) industry is looking at the country as a hub for global capability centers (GCCs), with markets such as the United States and Australia looking to put up shop.

According to IT & Business Process Automation (IBPAP) president and chief executive officer Jack Madrid, the industry is projected to reach $42 billion in revenues, and employ 1.97 million Filipinos in 2026, with growth expected to be driven partly by GCCs.

“What has been encouraging in the past two years has been the growth of existing GCCs and the types and the lines of businesses that they’ve brought. Everyone we’ve talked to seems to be interested in increasing both lines of business and functions,” he said in a virtual briefing.

“I think it’s encouraging to see the continued interest from existing GCCs and prospective GCCs, not just from the US but even from markets like Australia and Europe led by banks, led by the healthcare sector,” he added.

IBPAP chief operating officer Celeste Ilagan said that a number of GCCs in the country have already asked the group to look at provincial locations, with a number of them setting up operations in a short time frame.

“GCCs are traditionally located in Metro Manila but they are now more open to looking at places outside of Metro Manila, so I think that’s a good sign that they are expanding and that they recognize the talent outside of Metro Manila,” she said.

“These are positive indications that the Philippines is really gaining traction in terms of getting GCCs to locate here,” she added.

Madrid said the Philippines currently has some 170 GCCs or offshore hubs of multinational corporations to provide business services, up from 150 less than two years ago. Globally, GCCs are projected to hit $155 billion by 2027.

“That just shows you the kind of potential that we have,” he said, noting that firms such as JPMorgan Chase has been increasing its workforce by thousands per year, with another 10% increase projected in 2026.

“We can be both: a world-class outsourcing hub and a GCC hub powering enterprise transformation,” he added.

Moving forward, Madrid cited the need to drive further collaboration among the industry, the academe, and the government, the establishment of regional hubs, and equipment of the workforce with digital fluency to sustain the Philippines’ momentum.

“The future of IT-BPM is not just our industry’s agenda—it is a national priority. Together, we can rewire for value and keep the Philippines at the heart of global services,” he said. — BM, GMA Integrated News