Diverse services make the Philippines one of the best outsourcing destinations in the world


In the past few decades the Philippines has firmly established itself as a premiere destination for outsourcing and offshoring services in the world.

In fact, distinguished international industry bodies have recognized the growth of the country in this sphere. In particular, the National Outsourcing Association of the United Kingdom has repeatedly distinguished the Philippines as its “Offshoring Destination of the Year” for 2007, 2009 and 2010.

More than awards, however, this growing industry has the figures to back up its claims.
“IT-BPO industry was the fastest growing sector in the Philippines”

A recent study from the Lee Kuan Yew School of Public Policy reveals that from 2007-2012, the “IT-BPO industry was the fastest growing sector in the Philippines with revenues growing at a compound annual rate of 25.3%.”

It is interesting to note that the same study reveals that outsourcing revenues grew from $4.3 billion (or 2.9% of GDP) in 2007 to $13.4 billion (or 5.4% of GDP) in 2012.

That same period saw employment in the sector rise from 272,000 (0.8% of total employment) to 770,000 (2% of total employment).

In 2014, the Philippine Daily Inquirer reports that the Philippine IT-business process outsourcing industry reached $18.4 billion in revenues.

According to Danilo Sebastian L. Reyes, chairperson of the IT and Business Process Association of the Philippines (IBPAP), the largest revenue contributor among the many outsourced offerings available in the country remains to be contact center services, which include sales and customer support, help desks, and sales.

The next logical development of the Philippine BPO industry is to provide higher value non-voice functions, particularly in the finance & accounting, and transcription realms. In industry parlance, this suite of high-value services is called Knowledge Process Outsourcing (KPO).


The Bureau of Investments of the Philippine Government identified the following service offerings as promising:

  • Business Process Outsourcing (Finance & accounting, Human resources, payroll)

  • Software Development (Product development, bespoke projects, embedded SW, project management, quality assurance)

  • IT Services (BC/DR, web hosting, network management)

  • Transcription (medical, legal, publishing, data transformation, film subtitling)

  • Games development

  • Engineering design

  • Animation

  • Knowledge Process Outsourcing (Marketing research, Legal case research and preparation, medical research, insurance, mortgage)



Over the last decade, Philippine BPO sector has proven that it has the capability to meet the growing demands of the outsourcing world market. Philippine BPO sector has proven that it has the capability to meet the growing demands of the outsourcing world marketPhilippine BPO sector has proven that it has the capability to meet the growing demands of the outsourcing world market. The country is currently in the best position to harness its latent competitive advantage which, Reyes notes, are “the country’s scalable, educated talent pool; cost competitiveness; excellent infrastructures, adequate government support for the industry; and a proven track record.”

The continued development of these local resources can only solidify the Philippines as a premiere destination for any global entities seeking to capitalize on the country’s diverse set of service offerings.

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