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Take a look at one of the world’s top BPO hubs.

2022 is a pivotal year for the Philippine BPO market.

The ongoing global health crisis does not only test the resiliency of Philippine outsourcing companies but also altered the plans and projections set to strengthen its position as a leading BPO hub by the developed world. Despite the challenges brought by this pandemic, the business process management industry remains a pillar of the Philippine economy.

In this article, we rounded up all essential statistics and information about the Philippine BPO industry which you can use in your outsourcing decisions.

First, let’s take a quick look at 2020’s figures.

BPO Industry in the Philippines Statistics 2020

The IT-BPO industry continues to be a leading contributor to the Philippines’ economy, providing thousands of jobs to Filipinos and contributing billions to the country’s gross domestic product.

The shift from low-level-skill tasks into mid- and high-level skills continues because of the changing demands of the global IT-BPO industry.

Along with the projected increase in mid- and high-level skills, the healthcare sector and the animation and game development industry are expected to grow at a faster rate.

Key industry players will continue to move to high-value complex and digital services. The contact center industry will still experience constant headcount and revenue growth amidst the threat of automation.

The Philippines’ fastest growing industry

Created more than 71,000 new full-time, high-paying jobs for Filipinos

Helped reduce low-skill jobs by 29%

Increased mid-skill jobs by 12%

High-level jobs are seen to rise by 19%

Elevated job satisfaction by 73%

The IT & Business Process Association of the Philippines (IBPAP), the enabling association for the country’s IT-BPM sector, collaborates with various government and private organizations to facilitate up-skilling programs that would keep Filipino workers relevant and thriving to the global market.

The Silver Lining of Covid-19

Covid-19’s crippling effect on the global economy has left most SMBs in the United States cash-strapped. Some are still struggling to remain afloat, while some have taken the challenge to ride the tide of change brought by the virus. Larger businesses with bigger capital reserves, on the other hand, also experienced a steep drop in revenues. This is especially true for businesses in the hospitality and tourism industries.

This decline in demand has left some employees in Philippine BPO companies in floating status, due to some clients pulling out their accounts. While these challenges persist amidst the slow rollout of vaccines in the Asia Pacific region, many BPO companies in the Philippines remain fiscally strong.

Here are some key statistics:

  • Investment pledges for January to July 2020 rose by 37 percent compared to the same period in 2019
  • The National Government of the Philippines, through the support of the Department of Trade and Industry, the Philippine Economic Zone Authority, and the Inter-Agency Task Force on Emerging Infectious Diseases bolstered the IT-BPO industry by increasing its capacity amidst the community quarantines and promoting work-from-home setups for new and existing BPO employees
  • 65% of Filipino BPO employees can deliver more complex and varied services for domestic and overseas clients
  • By 2022, the Philippine IT-BPO industry will cover 15 percent of the total global outsourcing needs, according to industry experts
  • BPO in the Philippines is projected to grow by 9 percent every year for the next 5 years

To learn more about the efforts made by the National Government of the Philippines in reinforcing the IT-BPO industry, view this roadmap document prepared by IBPAP and Frost & Sullivan Consulting.

Contribution to the Philippine Economy

Aside from generating 1.3 million direct employment for Filipinos, the industry also generates 4.08 million indirect jobs, including maintenance, administrative, and clerical personnel.

BPO in the Philippines also promotes economic decentralization and countryside development, creating 280,000 jobs in 23 provinces. This gradually gives purchasing power to workers and their families not living in the metropolises (Manila and Cebu).

In addition, the IT-BPO sector enables various support industries such as the following:

  • Food – $2.7 billion
  • Banking – $1.8 billion
  • Real estate – $1.5 billion
  • Hospitality – $1.3 billion
  • Transportation – $1.1 billion
  • Other industries – $11.38 billion

(Source: IBPAP Roadmap)

Why Hire a Filipino BPO Company

Resilient. Affordable. Highly-skilled. English speakers.

These are just some of the reasons why businesses around the world flock to the Philippines for their outsourcing needs. Being an e-commerce solutions company based in the Philippines and staffed by highly skilled and passionate Filipino professionals, Always Open Commerce embodies Filipino resiliency and creativity in all aspects of doing business.

To know more about why the Philippines is a real game-changer, you can visit this page.

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