Pandemic or not: Ongoing success of the BPO industry in the Philippines

Why does the BPO industry in the Philippines keep growing?

The BPO industry in the Philippines keeps growing because of low costs, a large skilled workforce, strong English skills, and close cultural ties with the West.

• Companies hire skilled Filipino talent at a fraction of local costs.
• The country offers a deep, English-fluent labor pool.
• Steady government support keeps the sector competitive.

Shifts in how businesses work have reshaped many industries, yet outsourcing stays strong. In fact, the push toward digital work has only raised the need for outsourced teams.

For many firms, full in-house staffing is costly and hard to scale. So they turn to another path: outsourcing.

Business process outsourcing in the Philippines has thrived through these changes. After all, businesses want to cut costs, save resources, and run leaner. As an outsourcing leader, the Philippines is one of the best options for them.

In this article, let us look at the growth of the BPO industry in the Philippines, its strengths, and the current outsourcing climate. For broader context, see why many firms choose outsourcing to the Philippines in the first place.

The rapid growth of IT-BPO in the Philippines

History

First, the industry began in 1992. Since then, key people and groups have driven its growth. For example, early movers such as Accenture, eTelecare, and Sykes saw the country’s potential as an outsourcing hub.

Leaders such as former Secretary Mar Roxas and Karen Batungbakal also played a role. They campaigned to win the industry’s first big client countries. As a result, delegated services to the country began to climb. This mirrors the wider history of outsourcing across global markets.

IT-BPO roadmap 2011-2016

Years after the global financial crisis, outsourcing proved its countercyclical nature by surviving it. Meanwhile, demand was set to reach $270 billion by 2016 as more functions moved offshore.

The DICT and IBPAP saw this chance. So they built a five-year plan to lift the country’s rank and market size. They launched the IT-BPO Road Map 2011-2016 to spell out the sector’s strengths, goals, and projections.

In addition, the agencies projected the industry would reach $25 billion in yearly revenue by 2016. To get there, at least 1.3 million jobs had to be created. As a result, the road map named a few key areas to improve:

• Setting the Next Wave Cities as alternative outsourcing locations
• Improving education and training infrastructure
• Strengthening private-public partnerships
• Designing a curriculum to support the IT-BPO industry

Updated roadmap 2017-2022

By 2016, global outsourcing had grown into a multi-billion dollar market with many services. Still, the Philippines remained a leading destination. So the IT-BPO Roadmap 2016-2022 set out these goals:

• IT services would stay in demand across sectors. At the same time, areas like oil and gas, education, and government would need more knowledge process outsourcing (KPO) services.
• The Philippines was set to deliver these services. IBPAP projected a 9.2% growth rate, or about $38.9 billion over six years. It also saw employment rising to 1.8 million by 2022.
• Key high-impact programs were highlighted. These covered human capital, inclusive growth, government support, competitiveness, and technology.

However, the industry hit some setbacks. A few declines began in 2018, which led IBPAP to recalibrate its road map a few times until 2019.

The BPO industry in the Philippines as of today

Since then, the sector has returned to strong growth. For example, in 2019, a World Trade Report noted the industry accounted for a 7.3% contribution to the Philippine GDP.

Growth has continued since then. In fact, by 2024 the IT-BPM sector reached about $38 billion in revenue. It also employed roughly 1.82 million full-time workers, up 7% from 1.7 million in 2023. Meanwhile, in 2025 IBPAP projected revenue would pass $40 billion.

Still, the outlook stays bright. Under its latest roadmap, the sector aims for around $59 billion in revenue and 2.5 million jobs by 2028. As a Knowledge Process Outsourcing (KPO) leader, the Philippines also thrives in healthcare, gaming, and animation.

To support this growth, IBPAP ran the Digital Cities program. This named locations outside the top metros to serve as new outsourcing hubs. As a result, work is spreading well beyond Metro Manila. These shifts track closely with wider outsourcing trends seen worldwide.

Strengths of BPOs in the Philippines

The Philippines is seen as an ideal base for foreign companies. Still, the industry would not be in such high demand without these core strengths.

Costs

Compared with other countries, firms can hire Filipino talent at a fraction of local costs. For instance, an average worker in the country earns at least $500/month, depending on the role.

Costs stay low thanks to affordable resources and a lower cost of living. In addition, investors receive perks such as tax holidays and simpler paperwork. These savings are a big part of the wider benefits of outsourcing.

People

There is a large Filipino workforce ready and willing to join the industry. Because of this, firms rarely face worker shortages for their outsourced tasks.

Among many sectors, BPO offers strong job security, with competitive pay and benefits. On top of that, Filipinos are warm and professional. As a part of their values, they know how to empathize and care for customers throughout each interaction.

Culture

The Philippines shares close cultural ties with the United States. Its education system aligns with the US, and English is one of its main languages. What is more, Filipinos follow a lot of foreign media, from TV shows to books and movies.

As a result, foreign clients feel at ease working with Filipino teams. They can fold in their processes, metrics, and work culture with few hurdles. This ease is one reason the country ranks among the best countries for outsourcing.

Sectors

Per the DICT Primer, BPO companies in the Philippines offer over 20 functions. The country is a top provider of call center services and ranks second for non-voice work. More recently, IBPAP has seen a rise in KPO services, especially in development and design.

Frequently asked questions

How big is the BPO industry in the Philippines?

The sector reached about $38 billion in revenue in 2024. It employed around 1.82 million full-time workers that year. Industry leaders expect revenue to pass $40 billion and keep climbing toward 2028.

Why do companies outsource to the Philippines?

Firms choose the country for its low costs and skilled, English-fluent workers. In addition, close cultural ties with the West make teamwork smooth. Together, these factors make the Philippines a top outsourcing base.

What services do Philippine BPO companies offer?

They offer more than 20 functions, from call center work to back-office support. The country also leads in non-voice and knowledge process outsourcing. Fast-growing areas include healthcare, gaming, and animation.

Is the Philippine BPO industry still growing?

Yes. Revenue and headcount have both risen in recent years. The sector targets around $59 billion in revenue and 2.5 million jobs by 2028. So the outlook stays strong.

What makes Filipino workers ideal for BPO?

Filipino staff are skilled, warm, and professional. Strong English and cultural affinity with the US help a lot. As a result, clients can integrate teams quickly and with few hurdles.