MAJOR Indian information technology and business process management (IT-BPM) players are confident the Philippines will serve well as their strategic technical hub in Southeast Asia, the Philippine Economic Zone Authority (PEZA) said on Sunday.
“From the responses of the IT-BPM global players that attended the New Delhi and Bangalore fora, we were assured of their strong vote of confidence for the Philippines as their hub in Southeast Asia,” PEZA Director-General Tereso Panga said.
The remarks came after Finance Secretary Ralph Recto pitched the country’s capabilities during President Ferdinand Marcos Jr.’s state visit to India last week.
In Bengaluru, Recto told more than 160 Indian firms that the Philippines has the talent to become “the world’s center for intelligent, technology-driven services,” inviting companies in IT, fintech, blockchain, artificial intelligence (AI) and BPO to set up regional hubs in the country.
“This makes the Philippines the natural hub for Indian companies in IT, fintech, blockchain, AI and BPO looking to expand in Southeast Asia,” Recto said.
Expanding partnerships
Panga said Recto’s pitch resonated with Indian firms considering new or expanded operations in the Philippines, particularly in high-value, knowledge-based work. Many already operate large facilities here, generating significant global revenue, especially in customer care.
He added that India’s strengths in deep tech, product development and innovation complement the Philippines’ customer service expertise, English proficiency and “people-first” delivery.
PEZA aims to attract more Indian investment in global capability centers and frontier technologies such as AI, machine learning, blockchain and knowledge process outsourcing.
The Philippines is the second-largest hub for services delivery after India, Recto noted, with 16–18 percent of the global IT-BPM workforce and higher-than-average AI adoption.
Currently, 22 Indian-registered enterprises operate in PEZA zones, including Infosys BPM and HCL Technologies. Recto said reforms under the CREATE MORE Act offer incentives such as income tax holidays of up to seven years, extended perks for large-scale projects, deductions on power expenses and VAT exemptions for export-oriented companies.
Corporate commitments
During the state visit, Marcos met with executives from Tata Consultancy Services, which reaffirmed its commitment to support the country’s digital transformation and expand operations. He also met with leaders of the Hinduja Group and ISON Group, both active in the IT-BPM sector.
In Bengaluru, Marcos witnessed the signing of 18 agreements and investment pledges across renewable energy, healthcare, education, IT-BPM, digital services and manufacturing, with potential investments reaching $5.8 billion. –With additional report from Lee Chipongian
