Cebu Firmly Establishes Its Dominance in IT-BPM Expansion
Cebu Claims Significant Role in Philippines' IT-BPM Industry Growth
Cebu City, Philippines, continues to assert its influence as a vital pillar within the country's Information Technology and Business Process Management (IT-BPM) sector. The Visayas region, which includes Cebu, accounted for 34% of the industry's total full-time employees (FTEs) in 2024, with the city itself contributing 15% to the national workforce.
The Philippine IT-BPM sector generated $38 billion in revenue that year, supported by approximately 1.82 million FTEs. This growth underscored the sector's resilience amid ongoing global economic uncertainty, climate disruptions, and political transitions. The contact center segment accounted for 83% of the total revenue and 88% of the total FTEs, indicating its dominant position within the industry.
Among regional contributors, Cebu emerged as the undisputed leader in the Visayas, employing over 160,000 FTEs out of the total 396,000 on the island. Actively supported by strong economic activity in neighboring cities such as Mandaue, Lapu-Lapu, and the South Road Properties (SRP) area, Cebu's growth is evidenced by a burgeoning IT-BPM landscape.
Several strategic real estate developments, green building initiatives, and 66 new and expansion projects worth P58.947 billion—approved by the Philippine Economic Zone Authority in the first quarter of 2025—contribute to the continued expansion of the IT-BPM sector in Cebu.
Mitch Locsin, chairman of the Contact Center Association of the Philippines (CCAP), expressed optimism in the industry's outlook. "With nearly 400,000 FTEs in the Visayas and Cebu accounting for 15% of the total industry workforce, the region is increasingly critical to our growth trajectory," he said.
Industry experts project the sector to generate $40 billion in revenue in 2025, marking a 5% increase year-over-year. Employment growth is expected to reach nearly two million FTEs, with a 9% increase projected. Within the contact center segment, revenue is forecasted to climb to $33.2 billion, underpinned by 1.76 million FTEs.
Key growth drivers for the Cebu IT-BPM industry include sustained demand from key sectors, such as banking, financial services, and health, which are fueling growth amid global trends like reshoring. Demand from North American clients remains strong due to the skilled workforce and established reputation of the Philippine IT-BPM sector.
In recent years, Cebu has also witnessed significant growth in strategic real estate projects, green building initiatives, and ongoing industrial developments aimed at accommodating the needs of IT-BPM companies. With the implementation of rigorous upskilling, reskilling, and cross-skilling programs to maintain global service standards and an emphasis on enhancing technology capabilities across the entire ecosystem, the region is readying itself for future growth.
While geopolitical factors such as renewed protectionism approaches could present challenges to the industry, the current US tariff movements primarily target goods and not services. The Philippines' unparalleled expertise in customer experience management and rapid tech adoption by local IT-BPM companies, particularly in artificial intelligence, automation, and analytics, continue to increase the country's competitive edge while addressing digital skills gaps to remain crisis-proof and globally competitive.
- Despite challenges like economic uncertainty, climate disruptions, and political transitions, the IT-BPM industry in the Philippines, particularly in Cebu, continues to thrive, generating significant revenue.
- In 2024, Cebu City contributed 15% to the national workforce within the IT-BPM sector, underscoring its importance to the Philippines' industry growth.
- By 2025, the IT-BPM industry in Cebu is projected to expand further, with employment growth reaching nearly two million FTEs and revenue projected to reach $40 billion.
- The rapid tech adoption by local IT-BPM companies in Cebu, including artificial intelligence, automation, and analytics, is a key factor in maintaining the Philippines' competitive edge in the global market.
