Insights
Philippine call centers out to attract more foreign clients
By VISAYA Insights Team · February 7, 2025 · 2 min read
Metro Manila (CNN Philippines) — About a hundred foreign companies are in talks with Philippine call centers as they look to outsource some of their business here.
Morgan Stanley, Goldman Sachs and Mitsubishi UFG Financial Group are just among some of the financial giants eyeing local service partners, Benedict Hernandez, Contact Center Association of the Philippines (CCAP) president, said in a press conference on Wednesday.
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Other investors come from sectors the Philippine business process outsourcing (BPO) industry has typically done well in: telecommunications, financial services, hospitality and manufacturing.
New players, like Silicon Valley technology companies, are also keen, Hernandez added.
He said, “It’s a far cry from before. We had to knock on doors to get companies to invest in the Philippines. They’re the ones approaching us now.”
The BPO industry has singlehandedly driven the economy in recent years. With a huge workforce, excellent English skills and low costs, the Philippines has been one of the top destinations for companies looking to outsource some of their operations, such as customer service, accounting and payroll services.
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According to CCAP, that momentum is set to continue. Initial reports show there is about $1 trillion in possible outsourcing work around the world. So far, only $166 billion is being outsourced today.
“Only 17% of the market is being tapped. The universe of opportunity is still so huge in the coming years,” Hernandez said.
CCAP estimates the global BPO industry will grow by 6% every year over the next six years. The Philippines, as one of the world leaders, will likely grow two to three times faster since it gets the lion’s share of outsourcing deals.
In 2016 alone, the country’s BPO industry is expected to earn $25 billion in revenues, Hernandez said. That’s a 13% jump from the $22 billion booked last year.
The growth, however, will focus on complex jobs. Automation could make low-skill jobs, like data entry and directory assistance, redundant.
By Hernandez’ estimates, though, there’s “hardly any” low-skill jobs left in the Philippines.
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