Outsourcing
An interview with Jack Madrid on the Philippines BPO Industry – past, present and future
Jack Madrid, CEO of the IT & Business Process Association of the Philippines (IBPAP), is not resting on his laurels. While he spearheads a body which has shaped the BPO industry into a major GDP contributor, Jack is focused on the future – and it’s replete with AI, innovation and transformation. Read Matchboard’s exclusive interview with the man who’s led big brands like Yahoo, MTV and Dell to success in the Philippines.
Why has the BPO/IT‑BPM industry in the Philippines been so successful?
Three reasons: people, trust, and adaptability.
We’ve built a reputation for delivering high-quality service with empathy and precision. We don’t avoid disruption—we respond to it. That’s how we’ve stayed competitive, relevant, and indispensable.
How is AI changing the workforce—in numbers and roles?
AI is reshaping—not replacing—our work. Repetitive roles may be disrupted, but demand is rising for AI supervision, analytics, cybersecurity, and digital ops. By 2026, we still project 2 million jobs and USD 42 billion revenue.
The focus is shifting from volume to value per role, and we’re ready.
Is the industry saturated or still growing?
It’s growing. We have thousands of firms and 170+ GCCs, including Australian firms like QBE, Macquarie, Telstra, ANZ Bank, with growth now driven by analytics, healthcare, finance, and digital services. This isn’t just about job count—it’s about capability elevation.
What are the key threats, and how is the BPO industry addressing them?
Yes, we face pressure—from AI, global competition, talent gaps, and outdated narratives. We’re responding with:
- A push for a National AI Strategy
- Policy wins to address the ease of doing business, including fiscal incentives for investors
- Talent investments for future-ready skills
- Stronger positioning as a centre for innovation, not just delivery
We’re not waiting for the future—we’re building it.
How has hybrid work affected performance?
Around 60–70% of the workforce is hybrid; this flexibility has resulted in strong productivity, lower attrition, and wider access to talent. It takes investment, but it delivers flexibility, reach, and resilience.
How is the government supporting the industry?
Support has been both strategic and responsive. Key among these is the CREATE Law—short for Corporate Recovery and Tax Incentives for Enterprises. It provides:
- Reduced corporate tax rates
- Flexibility for hybrid work (up to 50% remote) without losing fiscal incentives
- Simplified investment processes for BPO firms.
Beyond that, we’ve seen:
- Infrastructure upgrades across growth centres like Cebu, Clark, Davao, and Iloilo
- Stronger focus on digital skills development
- A unified approach across government, academe, and industry.
This kind of alignment is critical for sustainable growth.
What’s ahead for the next 2 years?
We’re targeting USD 42 billion in revenue and 2 million jobs by 2026, and expecting a rise in GCCs (Global Capability Centres) and high-value roles, scaled AI adoption, growth in key cities beyond Metro Manila, and a shift from headcount to value creation. We’re not maintaining position—we’re earning leadership in global services.
This industry isn’t standing still. We’re scaling, evolving, and leading—with purpose and partnership at our core.
What got us here won’t get us there. But with the right talent, technology, and trust—we will get there, together.
