Philippines’ BPO Industry Outlook

July 8, 2015
Philippines Map

Already accounting for 6% of the national GDP, the Philippines’ BPO industry is expected to employ approximately 1.2 million by the end of 2015. Despite being about 25% more expensive than India, the country’s young, dynamic and English-speaking workforce continues to attract many companies from across the globe.

Growing sectors

The BPO industry  is expanding to very different sectors. From only voice services towards multi-channel delivery model, sectors such as healthcare, human resources and gaming are booming. There is simultaneously a clear and increasing demand for Knowledge Process Outsourcing Services for different sectors such as market research,  project management or engineering services.

Expanding to different cities

The BPO industry is also expanding to different cities in the Philippines as well. Manila’s share of the market decreased from 83% in 2006 to 70% in 2013. By 2016, the government expects the capital’s share to drop to as low as 60%.

These developments spell good news for other parts of the country, which will increasingly benefit from the booming BPO industry.  Cebu, the second biggest city of the Philippines, already occupies the eighth place in the latest Top 100 Outsourcing Destinations, the recent report of consultancy firm Tholons Inc. Meanwhile, the number of BPO professionals are exponentially growing in Davao  -69th spot in the same report-  and Bacolod.


There are 3 key factors behind the relocation of BPO companies:

  • Commercial Office Space saturation in Manila that results in higher rental costs
  • Lower living costs allow companies to hire the same quality of professionals for a lower price
  • Attrition rates are lower since there is less competition

If you are looking to incorporate in the Philippines and to set up a BPO, do not hesitate to contact us. Our professionals have worked with over 100 multinationals that outsourced different processes and services to the Philippines.

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