The expansion of the Information Technology and Business Process Management (IT-BPM) industry in the Philippines has been acknowledged as an important contributor to the country’s growth performance. This study explores its specific impact on labor productivity and real wages in the services sector. Preliminary estimates based on Autoregressive Distributed Lag (ARDL)–Error Correction Model (ECM) using annual data from 2007 to 2020 reveal that growth in the industry can have important implications on labor market outcomes. First, growth in the output of the IT-BPM industry increases labor productivity and real wages in the services sector. Second, labor productivity is a positive determinant of real wages. Third, greater foreign direct investments in IT-BPM have the potential to increase real wages in the services sector. Finally, increases in the number of graduates of Information and Communication Technology (ICT)/Business Process Outsourcing (BPO)-related courses have a positive impact on labor productivity and real wages in the services sector. To ensure the industry’s continued contribution to the Philippine economy, it must remain competitive amidst challenges and current developments. For policy, this implies that authorities must adopt appropriate strategies and pay particular attention to human capital investment.