The Philippines' information technology and business process management (IT-BPM) industry has sharply reduced its revenue and employment targets for 2028, citing the disruptive impact of artificial intelligence and escalating global competition.
Industry leaders indicate that the sector's traditional growth model is under pressure as automation technologies reshape service delivery and international rivals offer increasingly competitive pricing.
This downward revision in outlook comes as a significant headwind for the Philippine economy, where the IT-BPM sector has long been a primary engine for job creation and export earnings.
The adjustment reflects a broader structural shift in the global outsourcing market, where efficiency gains from AI are offsetting the need for large-scale human capital expansion.
Investors monitoring the sector should expect a recalibration of growth expectations, with potential implications for related equities and foreign direct investment flows into the country.
The sector's struggle to maintain previous growth trajectories aligns with broader macroeconomic concerns.