GCCs as the New Growth Engine
The IT and Business Process Association of the Philippines (IBPAP) is placing global capability centers at the center of its strategy to defend market share and drive higher-value services. IBPAP President and CEO Jonathan “Jack” R. Madrid states that the Philippines is a “solid No. 2” after India and a natural alternative for multinational companies due to the strength of the domestic IT-BPM sector. The country now hosts around 200 GCCs, compared with around 2,200 in India.
Corrected Targets, High Ambitions
IBPAP revised its 2028 target downward due to intensifying global competition and AI adoption replacing some manual roles. In a downside scenario, the industry is projected to reach US$43.3 billion with 1.85 million AI-enabled workers; in a best-case scenario, US$50.5 billion with 2.14 million workers. These figures are lower than the previous projection of US$59 billion and 2.5 million FTEs. Madrid emphasizes that the revision does not reflect declining competitiveness but rather the consequence of macroeconomic factors causing locators to make slower decisions.
Entry of Global Players and New Momentum
Signals of confidence come from actual expansion. State Street has just established its first GCC in the Philippines at Uptown Bonifacio Global City, occupying three floors. Madrid notes that inquiry flows and expressions of interest from GCCs continue to arrive weekly, both from existing players expanding operations and from companies establishing centers for the first time. Targeted sectors include banking, financial services, insurance, and healthcare—sectors that have historically been the backbone of GCCs in the Philippines.
Talent Agenda and Sharper Competition
On the supply side, IBPAP is running an end-to-end talent strategy: from early education and near-hire readiness to workforce upskilling. Initiatives such as Can You HackIT and Byte the Gap broaden access to digital skills, while Project UNLAD, worth PHP740 million with DICT and TESDA, creates reskilling pathways. However, competitive pressure comes from emerging destinations such as Egypt, South Africa, Poland, and Colombia, which are becoming more aggressive. With an 18% global market share and a position as one of the major players, the Philippines needs to accelerate GCC growth—not only to preserve volume but to move up the value curve and remain relevant in an increasingly AI-driven services economy. IBPAP’s industry updates and road map are published through IBPAP.
