The Philippines is a lower-middle income, insular country in Southeast Asia that serves as a popular destination for BPO and manufacturing. English, alongside Tagalog, is an official language of the country, and two-thirds of the population speak English fluently. This gives the Philippines an advantage over other countries in the region, particularly in the BPO industry, as organizations around the world outsource front-office tech and call center roles to the Philippines. The country is attractive for sourcing administrative and customer service roles, so much so that it has been dubbed the “Call Center Capital of the World.” Manufacturing also plays a critical role in the economy, and the Philippines is becoming an attractive spot for electronics manufacturing.
Business Process Outsourcing
The Philippines, like many other countries across the globe, has faced economic challenges in 2023, driven by high inflation, higher interest rates and waning demand. However, the demand for BPO remains strong, as offshoring remains a popular measure for cost savings. In 2022, revenues in the BPO industry increased by 10.3%, while headcount in the industry rose by 8.4%, with estimated revenue growth between 8% and 10% in 2023. Growth in the industry was driven by financial services, healthcare, retail, technology and telecommunications.
The Philippines is a popular location for BPO for organizations around the globe. In 2022, the Philippines ranked fifth in terms of inquiries on outsourcing, which accounted for a total of 28,570 roles that organizations from 146 countries wanted to outsource. In regard to marketshare, the Philippines is estimated to control between 10-15% of the global BPO market.