Philippines woos multinational firms to set up business processing hubs
IBPAP President Jonathan Madrid discusses the growth potential of the global capability center (GCC) segment in the Philippine IT-BPM industry during a recent press briefing. Photo by Alden M. Monzon
MANILA, Philippines — The country’s largest information technology and business processing group aims to convince more multinational corporations to set up global capability centers (GCCs), seeing the potential to drive high-value job creation.
IT and Business Process Association of the Philippines (IBPAP) president Jonathan Madrid said there were currently only around 150 GCCs operating in the country – roughly the same number that India adds every year.
“So, I think there’s an opportunity to grow our presence here. And I think this is important because the revenue per employee in GCC is much higher than the broader industry,” Madrid said in a press conference Tuesday night.
GCCs are offshore backroom units established by multinational companies to perform a range of support functions such as IT services, finance, human resources, analytics and customer operations.
Unlike traditional business process outsourcing, GCCs are fully owned and controlled by the parent company, allowing for greater alignment with global standards and strategic goals.
The Philippine business processing hubs of multinational financial institutions like JP Morgan and HSBC are some of the key examples.
READ: JP Morgan: Philippines positioned to thrive amid Trump tariffs
Moving up the value chain
For host countries, GCCs create high-value jobs, attract foreign direct investment and contribute to the development of knowledge-based industries.
Madrid said the country’s IT-BPM (business process management) industry was approaching the 2-million mark in total employment and on track to reach the milestone within the year.
READ: IT-BPM sector seen to top $40-B revenues
He added that about 250,000 people were currently employed at local GCCs.
“So it’s a growing sector and it is led by banking, services insurance and health upskilling opportunities, and increased foreign investment into the Philippines,” he said.
Madrid said the local IT-BPM industry continued to demonstrate resilience and adaptability amid shifts in the global landscape.
Global market
He added that the sector’s sustained commitment to talent development, innovation and digital transformation has allowed it to maintain its share of the global market.
READ: Philippine IT-BPM firms fear sector’s fate under Trump
As part of the industry aim to hike talent acquisition, IBPAP will once again recognize top-performing organizations through the 2025 edition of the Philippines’ Best Workplace in IT-BPM.
Now on its second year under the Solaia Awards program, the recognition will feature 30 companies that have fostered high-trust, people-first environments,
The IBPAP sees this as an increasingly vital factor in driving growth and performance in the sector.
The rankings are based on insights from over 450,000 employees across 250 certified organizations in the country, evaluated through Great Place To Work’s research-backed assessment model and Emprising platform.
