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Predictions for Growth in Outsourcing in the Philippines

The Philippines has become one of the largest and leading contact center outsourcing destinations in the world, experiencing exponential growth in recent years. The country’s Business Process Outsourcing (BPO) sector currently employs more than 1.3 million people and contributes nearly $30 billion to the economy annually

Types of Jobs Being Outsourced

The BPO boom in the Philippines has not only been led by traditional low value-added call centers but also by high-end outsourcing or Knowledge Process Outsourcing (KPO). As a result, a wide range of jobs, from call center operations to IT support and other specialized services, are being outsourced to the Philippines.

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Economic Impact on the Philippines

The BPO industry has had a significant impact on the Philippine economy, with an estimated 10-15% of the global BPO market share. The Philippine economy is also projected to double in the next decade, growing from its present level of about $280 billion to $680 billion by 2024 and reaching a projected GDP of $1.2 trillion by 2030.

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Size and Forecast Growth of Outsourcing in the Philippines

Offshore outsourcing is expected to grow at a compound annual growth rate of 13% through 2022, with large enterprise engagements growing at 18%. The Philippines is expected to make up 15% of the total global outsourcing market and generate revenues of close to $40 billion by 2022. The IT-BPO industry in the Philippines is also expected to see growth, with 87% of IT-BPM companies anticipating 5-15% growth in 2021, while the remaining 13% anticipate flat growth.

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The growth of outsourcing in the Philippines is expected to continue in the coming years, driven by increasing foreign investment, multiple employment opportunities, and the country’s strong economy. The BPO industry is likely to remain a significant contributor to the Philippine economy and continue to provide job opportunities for Filipinos in a wide range of industries.

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