As technology becomes more central to how businesses run, many companies are turning to Managed Service Providers (MSPs) to keep up with rapid digital changes. MSP services offer expert IT support that allows companies to stay lean, secure, and competitive without the high cost of building large in-house teams.
Organizations are increasingly outsourcing their IT operations. Why? Because they want to move faster, scale smarter, and control costs. Instead of managing everything on their own, they’re partnering with MSP services that already have the tools, talent, and systems in place to do the job right.
The Philippines is fast emerging as a global hub for MSPs. With a strong pool of IT professionals, a well-developed BPO industry, and cost-effective delivery, the country is serving clients from startups to multinational enterprises.
The guide will shed light on the current statistics and trends shaping the Philippine MSP industry and where it’s headed next.
A Growing Market with Global Impact
Backed by a skilled workforce and strong outsourcing infrastructure, the Philippine MSP industry is making major economic contributions—fueling job creation, export revenue, and competitiveness in the global market.
- The Philippine IT-BPM industry, which includes MSPs, generated $38 billion in revenue in 2024, reflecting a 7% increase from $35.5 billion in 2023. This steady growth continues to outpace global industry averages. (Philippine STAR)
- The IT-BPM industry is projected to contribute at least 8% to the Philippine GDP in 2025, underscoring its growing impact on the national economy. (Inquirer)
- The Philippine market presents a significant opportunity for managed services. By 2025, this sector is projected to generate a revenue of $37.82 million. (Statista)
- In 2024, the industry supported 1.82 million full-time jobs, reflecting a 7% increase from 1.7 million in 2023. Looking ahead, IT and Business Process Association of the Philippines (IBPAP) aims to grow the sector’s workforce to 2 million within the next 12 to 18 months. (Philippine News Agency)
- The Philippines is now home to one of the largest pools of outsourcing talent, giving global companies access to skilled IT professionals at a competitive cost. (BusinessWorld)
Cloud and Cybersecurity in High Demand
As digital transformation accelerates, more businesses—locally and globally—are turning to MSPs to manage increasingly complex IT systems. Cloud computing and cybersecurity are two areas that are seeing explosive demand.
Filipino MSPs are now specializing in helping businesses migrate to the cloud and defend against rising cyber threats.
- A survey commissioned by Alibaba found that 85% of businesses in the Philippines plan to complete a full cloud migration by the end of 2026, signaling a strong and sustained shift toward cloud adoption. (Alibaba)
- This trend is driving a surge in cloud migration and hybrid IT setups, pushing MSPs to broaden their offerings in cloud consulting, support, and infrastructure. (BlackEnd News)
- On the cybersecurity front, 83% of IT leaders with in-house teams are now considering outsourcing security functions for faster, expert response. (99firms)
- Globally, the cybersecurity managed services market is projected to grow from $15.27 billion in 2024 to $17 billion in 2025, reflecting a compound annual growth rate (CAGR) of 11.3%. This growth highlights the rising threat landscape and the growing demand for expert cybersecurity support. (The Business Research Company)
Small Businesses Driving the Shift
Small and medium-sized businesses (SMBs) are among the biggest adopters of managed services. They often face limited IT budgets, difficulty hiring skilled professionals, and a need to scale fast, making MSPs a smart solution.
- 37% of small businesses globally outsource at least one business function, such as IT or accounting. (Exploding Topics)
- In the Philippines, 45% of companies report struggling to hire tech talent. (The Department of Information and Communications Technology via Medium)
- 52% of SMEs cite financial constraints as a major hurdle to adopting new technologies. (Philippine Chamber of Commerce and Industry via Medium)
Enabling Digital Transformation Across Industries
While most businesses understand the need for digital transformation, many still lack the execution strategy. MSPs help bridge that gap with expert support, scalable tech solutions, and strong security frameworks.
- 94% of Philippine companies recognize digital transformation as necessary, but only 36% have fully implemented a strategy. (Medium)
- The finance and accounting segment led the market in 2024, securing over 21.0% of the revenue share. This dominance is driven by the increasing adoption of outsourcing solutions within the sector. (Grand View Research)
- Cyber threats are rising fast. In 2024, 84.5% of Philippine organizations experienced an average of three cybersecurity breaches, largely due to gaps in third-party cyber risk management, emphasizing the need for professional security support. (Business World)
Driving Digital. Delivering Value.
The managed services industry in the Philippines is booming and powered by global demand, a highly skilled talent pool, and the country’s strategic role in digital transformation. As businesses face rising costs, skill shortages, and security challenges, MSPs are stepping in as essential partners for long-term success.
At ScalableOS, we help businesses build dedicated offshore teams and outsource IT services with confidence. From project management to cloud solutions to cybersecurity, our Filipino experts are ready to help you scale smarter.
Check out our pricing and discover how we can help you grow your business with the right technology, talent, and support.
