Cebu continues to establish itself as a central hub within the Philippines’ Information Technology and Business Process Management (IT-BPM) sector.

As of the end of 2024, the Visayas region accounts for 34 percent of the total full-time employees (FTEs) in the industry, with Cebu contributing significantly, representing 15 percent of the national workforce.

The Philippine IT-BPM sector achieved revenues of US$38 billion, supported by a workforce of approximately 1.82 million FTEs.

This growth underscores the sector's resilience despite global economic uncertainties, climate challenges, and political changes.

The contact center segment remains the largest contributor, generating $31.6 billion, or 83 percent of total revenue, and employing 88 percent of the workforce.

Cebu’s position as a leading player in the Visayas is reinforced by its employment of over 160,000 FTEs out of a total of 396,000 across the island.

Growth in Cebu is attributed to robust development in cities such as Mandaue, Lapu-Lapu, and areas like the South Road Properties (SRP).

Key developments supporting Cebu's IT-BPM growth include strategic real estate projects, green building initiatives, and 66 new and expanding Philippine Economic Zone Authority-approved projects valued at P58.947 billion, confirmed for the first quarter of 2025.

Mitch Locsin, chair of the Contact Center Association of the Philippines (CCAP), highlighted that with nearly 400,000 FTEs in the Visayas and 15 percent of the total industry workforce attributed to Cebu, the region plays a pivotal role in shaping the sector’s growth trajectory.

Locsin noted a prevailing optimism among member companies operating in Cebu.

Looking ahead to 2025, the IT-BPM sector is projected to grow revenues to $40 billion, marking a five percent year-over-year increase, alongside a nine percent rise in employment, potentially reaching nearly two million FTEs.

Within the contact center segment, revenues are expected to grow to $33.2 billion, with 1.76 million FTEs.

Key growth drivers identified by Haidee Enriquez, CCAP president, include sustained demand from the US market, which remains a vital source of revenue despite global challenges.

The Philippines is recognized for its excellence in customer experience management, positioning it favorably for global firms.

Additionally, the rapid adoption of technologies such as artificial intelligence, automation, and analytics by local IT-BPM companies is enhancing the country's competitive edge.

Challenges persist, particularly geopolitical tensions, including the protectionist policies of the previous US administration.

The US is the primary source for outsourced work, accounting for approximately 85 percent of contracts, based on data from 2021.

Enriquez acknowledged that while current US tariff policies focus on goods rather than services, potential shifts could impact the sector in the future.

A recent industry survey indicated that ongoing business practices have not yet felt the repercussions of these geopolitical developments, although monitoring and caution are essential moving forward.

In addressing future challenges, Enriquez emphasized the necessity of bridging the digital skills gap as emerging technologies evolve.

She highlighted the importance of upskilling and reskilling programs, as well as enhancing overall technological capabilities within the sector.

The strategy also includes rural expansion, increasing the share of employment opportunities in the countryside to 34 percent, thereby tapping into new talent pools beyond Metro Manila.

Enriquez expressed confidence in the 2028 roadmap set for the sector, asserting that Cebu's performance substantiates the belief in meeting mid-to-high growth targets, showcasing the industry’s resilience and global competitiveness.