SENATOR Bam Aquino has raised serious concerns regarding the future of the Philippines’ IT and Business Process Management (IT-BPM) industry, citing the growing threats posed by artificial intelligence (AI) and increasing cybersecurity risks. These challenges, he warned, could lead to significant job losses within the sector.
During his opening statement at the Senate Committee on Science and Technology hearing, which he chairs, Aquino emphasized the urgent need for collaboration between national government agencies and private stakeholders to address these emerging issues. He noted that some companies have already begun reporting substantial reductions in their workforce due to the integration of AI-driven automation.
“Currently, the Philippines is a leading country for IT-BPM. But we know our position is threatened due to rapid technological changes. We need to come together to address these issues, to further grow and protect the IT-BPM industry of our country,” Aquino stated, referencing Senate Resolution No. 253, which he filed to address the rapid advancements in the IT-BPM sector. He stressed that immediate action is essential to safeguard the industry, which employs approximately 1.9 million Filipinos, contributes 8.2 percent to the country’s GDP, and generated over $40 billion in revenue in 2025.
The hearing included testimony from Jarmie Bateson, managing director of cloud accounting firm Nimbl, which acquired Cebu-based iResponse Business Solutions Inc. Bateson reported a significant decline in their number of employees, from over 300 at its peak to fewer than 100 currently.
This drastic reduction was attributed to the loss of several clients as AI-driven automation diminished the demand for traditional outsourcing services. Celeste Ilagan, chief operating officer of the IT and Business Process Association of the Philippines (IBPAP), also highlighted additional challenges, including difficulties with ease of doing business with local government units, inconsistent regulations, rising costs, cybercrimes, and a shortage of qualified talent. Aquino has committed to convening government agencies and industry stakeholders to expedite upskilling programs for IT-BPM workers and address the country’s education crisis to ensure the industry’s continued growth and stability.
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