News Staff July 29, 2019

The BPO sector in the Philippines is a financial powerhouse. The BPO sector is benefiting from the key government policies, well-educated workforce, and increasing foreign investment in both global in-house call centers and third-party contact centers.

The BPO industry in the country will surpass foreign remittances as one of the largest contributors to the country’s GPD. It is driven by development in the emerging segments of financial, analytics, and health care services outsourcing.

Though rising levels of robotic advancements, automation, and artificial intelligence pose a significant threat to the BPO industry and low-level BPO jobs, the industry and academia arestrengthening ties to see development and growth in top-rate and high-value-added call center positions over the medium term.

Investor Incentives

The Philippine BPO Industry, today, offers a wide range and a number of competitive advantages to the investors. This includes strong support from the government in the form of tax holidays and investor incentives.

The government of the Philippines realized the significance of the BPO sector two decades ago. Since then, the government has made various reforms in the policies to make it a better and profitable industry.

Recent Performance

A couple of years ago, India was the most popular BPO outsourcing destination in the world. However, in 2017 and 2018, the Filipino BPO industry surpassed the Indian BPO industry. The country is now regarded as the global leader in the call center services.

According to the report of IBM, the number of employees in the Philippine call centers has reached 350,000, which is more than 330,000 employees working in the Indian BPO industry. In terms of segment revenues, Filipino BPOs have performed well than the Indian BPOs. The total revenue stood at $6.7 billion in 2018 versus the $5.5 billion in India.

Labour Force

The labor market in the Philippines is the country’s most significant and competitive advantage – particularly, in the BPO sector. The country has an education system closely aligned with that of the United States. All students are taught in the English language.

In addition, the Philippines’ legal, regulatory, and accounting processes are likewise based on US law, which leaves the graduates well-established and well-positioned to complete the work for the US-based companies. According to the Board of Investment, in 2018, 98% of the Filipino population is literate and 85% is fluent in English.


The BPO industry in the country is expected to record double-digit growth in 2019. This is not the first time the Philippines is achieving this target. The development of the workforce is supporting the gradual elimination as well as automation of low-end services and/or processes.

The government along with the experts from the BPO industry is collaborating with the western countries to create new opportunities for outsourcingbritan today (value-added), which is extending well beyond the traditional voice services.

In conclusion, According to the report of IBPAP, Filipino BPOs generated over $24 billion in revenues in 2017. Likewise, the industry employed over 1.5 million employees. The call centers or voice-based services are the key pillars of the BPO sector. Foreign investors from different countries of the world consider the Philippines as one of the top destinations to establish their BPO operations.