“ The Philippines makes up 10-15 % of the global BPO market, with a national workforce of approximately 1.3 million workers. This sector generates about 9% of the country’s annual GDP.” Microsoft (2022)
Table of Contents
The History of the BPO Industry in the Philippines
The Current Landscape of the BPO Industry in The Philippines
Market Trends and Developments in the Philippines BPO Sector
Regulatory Environment and Government Support for the Philippines BPO Industry
Comprehensive Guide to BPO Services: Navigating Scams, Global Impact, FAQs, and More
The Philippines is one of the countries that remained strong in terms of business. It is one of the fastest-growing economies in the ASEAN region and it comes with many advantages.
It has top-tier resources, manpower, a perfect business environment, and a business-friendly atmosphere to run successful Business Process Outsourcing services.
The cost-effective business process method has already collaborated with the 20 percent annual expansion rate of the country. As a leading BPO provider, the Philippines has dynamic services for the administration processes.
Let’s talk about some BPO Services in the Philippines.
Top BPO Service providers in the Philippines
Before talking about the available services in the Philippines, let's show you a list of 10 BPO Companies in the Philippines. The companies are:
1. Accenture Inc.
Accenture is a global company that offers digital, cloud, and security services. Accenture Inc. takes pride in having the world's largest network of advanced technology and intelligent operation centers.
They are currently serving clients from over 120 countries where they offer strategy and consulting interactive, technology, and operations services. With offices in Manila, Cebu, and Ilocos, the corporation began operating in the Philippines in 1985 and now employs over 50,000 nationwide.
For platforms like Salesforce, Oracle, SAP, Adobe, and others, Accenture provides cutting-edge IT outsourcing solutions. Accenture Inc. has been named a leader in commerce services by independent research firms during the first quarter of 2021. It's highly deserving of its title, where this firm scored higher than many of its competitors in the Commer Strategy Services criteria.
Accenture has established itself as a reliable name for large-scale companies that need proper commerce implementation for their day-to-day business with industry-led experienced individuals leading the project.
Services: Back Office Outsourcing | Call Center Services | AI Development
🌐 Philippines 👥 9K+ 🕒 Price:undisclosed
According to G2 4.8 ⭐Rating
2. Teleperformance Philippines Inc.
Teleperformance, a French multinational corporation, is in great demand in the Philippines for its services to improve the customer experience.
Teleperformance began its journey in the Philippines in 1996 with its vision to have 'flexible solutions for an unpredictable world. It has slowly and steadily grown as one of the most preferred outsourcing options on international grounds.
This firm has served as a strategic partner to some of the world's largest companies in leading industries.
More than 45,000 people were employed by Teleperformance Philippines (also known as Telephilippines Inc.) as of 2021, and they were spread out throughout 22 facilities in cities including Manila, Antipolo, Baguio, Bacolod, Cebu, etc.
According to recent research held by "Great Place To Work", 82% of the employees at Teleperformance agree that it's a great company to work for with suitable work environments compared to the usual 53% of the employees who give this positive feedback in typical global firms.
Services: Back Office Outsourcing | Call Center Services | AI Development
🌐 Metro Manila, Philippines 👥 10K+ 🕒 $25 - $35 / Hr
According to AmbitionBox 3.6 ⭐Rating
3. Sitel Philippines Corporation
Sitel, a worldwide company, based in the United States, started operating in the Philippines in 2000. It has more than 10 locations in Pasig City, Metro Manila, Mandaluyong City, Tarlac City, Baguio, and Palawan.
This firm is one of the top BPO firms in the Philippines. It is a well-known provider of services like data processing and business support for improving the customer experience worldwide.
Currently, over 400 clients worldwide receive services from Sitel's 120+ locations throughout 29 nations.
The business reported an estimated 2.1 billion USD in annual revenue in 2020. In 2021, Sitel Group bought Sykes, another renowned business process outsourcing company in the Philippines based in the Philippines.
In recent times, Sitel Philipines has been recognized with Gold Stevie Award as the Most Exemplary Employer in response to the pandemic, COVID-19.
Services: Customer Service Outsourcing | Call center services
🌐 Metro Manila, Philippines 👥 45K+ 🕒 < $25 / Hr
According to TrustBurn 3.6 ⭐Rating
4. CloudStaff Philippines Inc
Initially established in 2005 in Australia, Cloud Staff was a company that primarily focused on software development for Western Markets.
As it expanded, in 2010, it identified itself as an emerging firm in the Philippines for outsourcing services, where it began with only a handful of staff. Soon enough, led by skilled management and experienced and motivated individuals, CloudStaff was able to have tremendous growth.
Today, CloudStaff has over 4000 employees across 13 different locations spread nationwide. In 2021, CloudStaff was named one of the best companies to work for in Asia by the HR Asia Awards.
Services: Accounting Outsourcing | Custom Software Development | Financial Outsourcing
🌐 SM City Clark Angeles, Philippines 👥 1,000 - 9,999 🕒 < $25 / Hr
According to Clutch 4.8 ⭐Rating
5. Six Eleven Global Teleservices
Six-Eleven started its journey in 2005 with a small number of employees. This is one of the first Filipino-owned BPO firms in the industry. Six Eleven's approach to its business is solution-oriented, with its contact centers designed to provide the highest quality solution to its customers.
Six Eleven believes that the most important thing when outsourcing projects is to set specific goals, which helps them achieve their targets.
The company focuses on achieving its goals, sometimes even exceeding them, giving them an edge over its competitors.
Services: Lead Generation | Booking & Order Taking | Document Validation
🌐 Davao City, Philippines 👥 1,000 - 9,999 🕒 < $25 / Hr
According to Clutch 4.8 ⭐Rating
6. Infinit-O
Infinit-O started its journey on September 15, 2005, with two veterans of the multinational outsourcing industry of the Philipines.
They wanted to help small and medium-sized businesses around the world prosper by providing them with quality service as an outsourcing partner.
Today, they provide various outsourcing and ITES solutions in the areas such as Customer care support, back office support, sales, data science, financial services, healthcare, and engineering.
Services: Lead Generation | Booking & Order Taking | Document Validation
🌐 Makati Avenue, Makat, Philippines 👥 250 - 999 🕒 < $25 / Hr
According to Clutch 4.1 ⭐Rating
7. Outsourced
Outsourced is one of the most recent additions to Philipines' ever-growing BPO companies. It was founded in 2012 by its current Australian director, who has 20 years of individual experience in this industry.
In their short time in the market, they have delivered projects for some of the world's most recognizable companies and brands, such as D-Link, Yamaha, HP, Rio Tinto, and ANZ Bank.
Services: Customer Service Outsourcing | Finance & Accounting Outsourcing (FAO)
🌐 Quezon City, Philippines 👥 1000 - 9999 🕒 < $25 / Hr
According to Clutch 4.8 ⭐Rating
8. DOXA7
While committed to proving itself to be more than just an outsourcing company in the Philippines, DOXA claims to be your X-factor in utilizing borderless talent. DOXA is where People and Trust meet.
It was founded by business executives driven by the energy to make a difference and have a good influence on the world as a whole.
Out of all the outsourcing companies in the Philippines, DOXA is the most well-adapted and accepting of changes that constantly occur in the business world. They keep up with trends and policies that many larger companies fail to cover.
Services: Customer Service Outsourcing | Finance & Accounting Outsourcing (FAO)
🌐 Bonifacio Global City, Philippines 👥 201 - 500 🕒 < $25 / Hr
According to Glassdoor 4.8 ⭐Rating
9. StaffWiz
One of the most popular firms among startups, and small and medium-sized companies for outsourcing, Staffwiz is located in Tordesillas, Makati, in the Philipines.
Staff wiz work in consultative and collaborative cooperation with enterprises worldwide, providing tailored BPO-Staffing solutions to match each client's individual needs. They are known to reduce labor costs by up to 70%.
Services: Customer Service Outsourcing | Finance & Accounting Outsourcing (FAO)
🌐 Bel-Air Makati City, Philippines 👥 201 - 500 🕒 < $25 / Hr
According to Glassdoor 4.8 ⭐Rating
10. Sutherland Global Services Philippines Inc
Sutherland Global Services, with its slogan "We make Digital Human." have cemented its position in the industry for over 35 years. For decades they have created the best-in-class processes for some of the world's most experienced-native businesses.
Sutherland is another leading BPO business in the Philippines, with headquarters in Taguig City. Customer contacts and digital financial services are two important aspects of Sutherland's business. These services improve the client experience, increase revenue and operational efficiency, and reduce risk.
The firm also provides cutting-edge PaaS (Platform as a Service) solutions. They are:
Sutherland Anywhere
Sutherland Conversational AI
Sutherland Connect
Sutherland Mobility
Services: Customer Service Outsourcing | Finance & Accounting Outsourcing (FAO)
🌐 Metro Manila, Philippines 👥 201 - 500 🕒 < $25 / Hr
According to Outsource Accelerator 3.8 ⭐Rating
Other Prominent BPO Service Providers in the Philippines
Here is a list of other prominent BPO service providers in the Philippines who provide the best services to their clients and are the leaders in the Philippines outsourcing industry:
24/7 Customer Philippines Inc.
Microsourcing
Wipro
HireSmart Staff
JPMorgan Chase & Co.
IBM.
Concentrix
.Fusion BPO Services
Unity Communications
The History of The BPO Industry in The Philippines
The Philippines BPO has undergone remarkable growth and transformation over the past three decades. From its humble beginnings to becoming the world's BPO capital, the industry has played a pivotal role in the country's economic development.
This article explores the key milestones in the history of the BPO industry in the Philippines.
>> 1992: The Special Economic Zone Act
The foundation for the BPO industry's growth was laid with the passage of the Special Economic Zone Act in 1992.
This legislation allowed for the establishment of the Philippine Economic Zone Authority (PEZA), which provided various fiscal and non-fiscal incentives for companies operating within designated economic zones.
These incentives attracted international firms to set up operations in the Philippines, paving the way for the BPO industry to flourish.
>> Early 2000s: Entry of Multinational Companies
The early 2000s marked a significant growth phase for the Philippine BPO industry.
Major multinational companies began to enter the market, drawn by the country's skilled and English-speaking workforce, coupled with lower operational costs.
This period saw the rapid expansion of call centers and other BPO services across the country.
>> 2005: Becoming the World's Call Center Capital
By 2005, the Philippines had overtaken India as the world's leading provider of voice services.
The country's call centers were renowned for their high-quality customer service, which was bolstered by the cultural affinity with Western countries and the neutral accent of Filipino agents.
This achievement solidified the Philippines' reputation as the call center capital of the world.
>> 2008: Resilience During the Global Recession
The 2008 Global Recession posed challenges for many industries worldwide, but it had a positive impact on the Philippine BPO sector.
As companies sought cost-effective solutions to mitigate financial pressures, they turned to outsourcing. The Philippines, with its growing pool of skilled workers and competitive costs, emerged as a preferred destination.
This period saw an increase in demand for diverse BPO services, including non-voice operations.
>> 2010: Leading in Non-Voice Services
The year 2010 marked another milestone as the Philippines became the global leader in non-voice BPO services.
The industry diversified beyond call centers to include back-office operations, finance and accounting, IT and software development, and engineering design services.
The country's ability to deliver high-quality non-voice services further strengthened its position in the global BPO market.
>> 2016: Reaching the Peak
By 2016, the Philippine BPO industry had reached its peak. It employed over 1.3 million people and generated approximately $25 billion in revenue.
The industry's contribution to the country's GDP and its role in providing employment opportunities were undeniable.
The success of the BPO sector underscored the Philippines' capability to compete on a global scale.
>> 2020: Adapting to the COVID-19 Pandemic
The COVID-19 pandemic in 2020 initially posed significant challenges to the BPO industry.
However, the sector demonstrated remarkable resilience and adaptability. The rapid shift to remote work and the implementation of health and safety protocols allowed BPO operations to continue amid the crisis.
The industry's ability to maintain service delivery during the pandemic highlighted its importance to global businesses.
>> 2024 : Aiming for $40 Billion Revenue
The Philippine government, together with the BPO industry, has set a target of reaching $40 billion in revenue by 2024.
This ambitious goal showcases the country's commitment to sustaining and growing the BPO sector.
Most Outsourced BPO Services in the Philippines
Explore the Philippines' BPO dominance, offering diverse outsourcing services from IT solutions to customer service, accounting, and creative fields.
1. Programming and IT Services
The Philippines is also called the call center capital of the world. The IT-BPO industry contributes high-quality jobs to over one million Filipinos resulting in domestic growth and expansion of the country.
As the BPO industry continues to grow, more leading companies like Oracle, Microsoft, and AT&T are outsourcing their programming and IT services from the Philippines.
2. Non-Core Operations
When a company outsources some of its business functions from a reputable service provider, it gains access to experts with extensive knowledge of the work domain.
The service includes non-core operations as well. The Philippines provides top-notch non-core services like human resources, management, data processing, etc.
3. Customer Services
Customer service is the touch point of your company's growth. The Philippines has many customer support services assisting businesses around the world. The language and cultural compatibility of Filipinos play a vital role while providing customer service.
The BPO services have been driven by low human resource costs, historical connection with the United States, and the advantage of an educated population.
4. Accounting and Payroll
There are numerous accounting and payroll services in the Philippines that help business owners with payroll payments. This system also helps in customer management and with taxes.
One of the top payrolls in the Philippines is Salarium. Some business owners hire people to deal with the salary, and some choose to use payroll apps to pay the salary.
5. Engineering
It is not hard to find a job in the Philippines. Especially getting engineers for the business is one of the easiest things. All types of engineering have an equal demand, so hiring an engineer for business causes will not be tough.
If someone is creating a building for their business, the requirement for an engineer will be needed.
6. Human Resources
The Philippines provides a good number of HR services and it stands as one of the major causes behind good business performance and a strong economy.
Human resource management involves evaluation, training of new job applicants, and recruitment of new candidates. Technically, HR managers are one of the core handles of a business organization.
In this sector, the Philippines are constantly struggling to find people worthy of HR management.
With the growing population in the country, the number of business sectors is increasing as well. Hence, the requirement for HR managers is increasing too.
7. Content Creation
People in the Philippines are also getting ahead in content creation such as food vlogging, web design, and freelancing.
Content creation covers a small sector of the business world and has a huge demand worldwide, and this, too, is running fast in the Philippines.
With the help of content creation, you can advertise your business which will help your business to flourish much more quickly.
8. Graphics Designing
The demand for graphic design is high and spontaneous. Various organizations require graphic designers for their content, and hence, the demand for graphic design is high as well.
One of the highest-paying jobs in the Philippines is the art director which requires graphic design. Graphic designing requires designing promotional posters or other social media posts which advertise the business.
9. Personal Assistant
To carry a business or ease the pressure, a personal assistant is required in almost every business strategy.
The demand for this position in the Philippines is one of the highest. Businesses are growing in the country, and with that the need for personal assistants as well.
Personal assistants help the owner with tracking the record, notifying about business changes, and other small things.
Also, they can hire virtual assistants as well. The salary for the assistants is good and worth the job.
10. Research and Development
Research and development is the creative work in which people undergo a system where they take knowledge of man, culture, and society so that they can bring improvements in their work and create new devices or applications.
In the Philippines, Research and development help people increase their productivity, especially in agriculture, to produce more crops of good quality, in health, to produce quality and healthy medicines, and in industries, to produce quality goods and products in higher quantities.
Some of the R&D institutes are the Advanced Science and Technology Institute, the Food and Nutrition Research Institute, the Forest Products Research and Development Institute, the Industrial Technology Development Institute, the Metals Industry Research, and Development, etc.
Why the Philippines is a Top Destination for BPO
In recent years, the Philippines has consistently ranked among the top destinations for BPO services, attracting multinational companies from around the world.
But what makes the Philippines stand out as a premier BPO destination? Here are some key factors that contribute to its success:
1. Highly Skilled Workforce
One of the most significant advantages of the Philippine BPO industry is its highly skilled and educated workforce.
The country boasts a literacy rate of over 97% and produces approximately 500,000 graduates annually, many of whom possess degrees in business, IT, and other fields relevant to BPO services.
English proficiency is also exceptionally high, making communication seamless.
2. Cost-Effectiveness
Cost efficiency is a crucial consideration for businesses looking to outsource. The Philippines offers competitive labor costs without compromising quality.
This cost-effectiveness extends beyond wages to include lower operational costs, making it a financially attractive option for companies.
3. Cultural Compatibility
Cultural affinity plays a significant role in the success of outsourcing relationships. Filipinos are known for their adaptability and strong understanding of Western culture, particularly American.
This cultural compatibility ensures smoother interactions and a better customer experience.
4. Government Support
The Philippine government has been highly supportive of the BPO sector, implementing policies and incentives to attract foreign investment.
Initiatives such as tax exemptions, streamlined business processes, and infrastructure development have created a favorable environment for BPO companies to thrive.
5. State-of-the-Art Infrastructure
Modern infrastructure is essential for the efficient operation of BPO companies.
The Philippines has invested heavily in improving its telecommunications and transportation networks, ensuring reliable internet connectivity and easy access to major business hubs.
Cities like Manila, Cebu, and Davao are now equipped with world-class facilities to support BPO operations.
6. Diverse Service Offerings
The Philippine BPO industry is not limited to call centers; it offers a wide range of services such as IT support, human resources, finance and accounting, and creative services.
This diversity allows businesses to find specialized expertise tailored to their specific needs.
Major BPO Hubs in the Philippines
1. Metro Manila
As the capital region, Metro Manila is the epicenter of the BPO industry in the Philippines. Cities like Makati, Quezon City, and Taguig host numerous BPO companies, offering a wide range of services from customer support to finance and accounting.
2. Cebu
Cebu, the Queen City of the South, has rapidly developed into a major BPO hub.
Its strategic location, skilled workforce, and modern infrastructure make it an ideal destination for outsourcing.
Cebu's vibrant lifestyle and lower cost of living are added attractions for BPO employees.
3. Davao
Davao City, located in Mindanao, is another emerging BPO hub. With its business-friendly environment, low crime rate, and growing pool of skilled professionals, Davao is attracting increasing interest from BPO investors.
The Current Landscape of the BPO Industry in The Philippines
The Philippines stands as a key contender in the international BPO arena, showcasing exponential growth and remarkable revenue statistics. In the year 2022, this sector flourished, raking in an impressive $32.5 billion, solidifying the nation's position in the outsourcing domain.
Fast forward to 2024, the Philippine BPO landscape sets its sights on reaching a remarkable revenue pinnacle of $40 billion, all while nurturing a workforce of 1.84 million dedicated employees.
These ambitious goals not only highlight the industry's steady upward trajectory but also emphasize its pivotal role in shaping the economic narrative of the country.
Market Trends and Developments in the Philippines BPO Sector
Shift to High-Value Services
While voice-based services remain a staple, there's a noticeable shift towards high-value, knowledge-based services.
These include data analytics, artificial intelligence, digital marketing, and software development.
This transition is driven by the need for businesses to stay competitive in a rapidly evolving digital landscape.
Adoption of Automation and AI
Automation and Artificial Intelligence (AI) are transforming the BPO industry worldwide, and the Philippines is no exception.
Companies are increasingly integrating AI-driven chatbots, robotic process automation (RPA), and machine learning to enhance efficiency and reduce operational costs.
This technology not only optimizes routine tasks but also allows human workers to focus on more complex and value-added activities.
Remote Work and Hybrid Models
The COVID-19 pandemic accelerated the adoption of remote work and hybrid operational models in the BPO sector.
Companies have adapted to this new norm by investing in secure and scalable remote work infrastructure.
This shift has broadened the talent pool, as geographical barriers become less of a constraint.
Competitive Pricing and Quality Service
The Philippines continues to offer competitive pricing without compromising quality. This balance is a key advantage that attracts clients looking for cost efficiencies while maintaining high standards of service delivery.
Regulatory Environment and Government Support for the Philippines BPO Industry
Government Initiatives
The Philippine government has been a staunch supporter of the BPO industry. Initiatives such as the Information Technology-Business Process Management (IT-BPM) Roadmap 2028 aim to sustain the industry's growth and competitiveness.
The roadmap outlines strategies to upskill the workforce, promote innovation, and enhance infrastructure.
Tax Incentives and Benefits
The government also offers a range of tax incentives and benefits to support the business process outsourcing (BPO) industry.
These incentives are aimed at attracting and retaining BPO companies, fostering growth, and boosting the country's economy. Here are some key points regarding tax incentives for Philippine BPOs:
PEZA Incentives: BPOs operating within PEZA-designated zones can benefit from incentives such as income tax holidays (ITH), Special Corporate Income Tax (SCIT), and Enhanced Deductions (ED).
Work-From-Home Schemes: Recent developments allow BPOs to implement full work-from-home schemes without losing their tax perks, providing flexibility and continuity in operations.
Tax Breaks for Remote Work: The government continues to offer tax breaks to BPO firms, regardless of the location of their employees (on-site or off-site), supporting remote work arrangements.
Government Support: The Philippines actively promotes investment through tax incentive programs for local and foreign investors interested in establishing businesses in the country, with a focus on the BPO sector.
Data Privacy and Security
The country has implemented the Data Privacy Act of 2012 (Republic Act No. 10173), which governs the processing of personal information by both public and private entities, including BPO companies.
This act aims to protect various forms of data, such as personal, private, or sensitive information.
Additionally, the implementation rules of the Data Privacy Act require both customers using data processing facilities in the Philippines and IT/BPO vendors themselves to comply with the regulations.
Final note
If you are planning to outsource your services, the Philippines has a lot of options to look at. Yet, You may also want to look at more effective preferences.
Learn about the top 10 BPO companies in Bangladesh. We are looking forward to assisting you with any queries. Contact ASL BPO, your next outsourcing partner.