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IT, BPO, & Business Services

The areas of the Philippine IT industry sector include software development and publishing, call centers, BPO, animation, production and sales of hardware components. The industry has showcased tremendous growth in terms of revenue, driven by increasing FDI from foreign players and multiple employment opportunities available for Filipinos.

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Ranked among top 5 outsourcing destinations

The Philippines has consistently been ranked among the top five outsourcing destinations in the world.

Source: BOI

5th in Tholons Global Innovation Index

Based on factors such as talent, cost, infrastructure and innovation, the capital city of Manila was ranked 2nd and the Philippines ranked 5th in Tholons Global Innovation Index (2020).

Source: Tholons

2nd world leader in the IT-BPM sector

The Philippines’ IT-BPM sector, the 2nd leading in the world, generates over 10% of the global IT-BPM’s total revenue

Source: Business World

The BPO (Business Process Outsourcing) sector plays a vital role in the emerging economy of the Philippines and contributes over 11% to the GDP. The Philippine BPO industry is the single largest sector, employing over 1.32 million people, spread across about 700 outsourcing companies. In 1992, the first call center was set up in the Philippines. Within two decades, it has grown tremendously, becoming one of the major economic pillars and lifelines of the country [26]. This was backed up by Oxford Business Group (OBG), describing the BPO sector in the Philippines as an “economic powerhouse” and “one of the largest white-collar employers in the country” [27]. BPO companies in the Philippines range from ambitious startups, mid-sized BPOs of 500-5,000 seats, to huge global conglomerates [26].

This sector plays a significant role in improving the business environment, increasing productivity and efficiency, and in enhancing the consumer experience. Over the past few decades, software development in the Philippines has become one of the more established sub-sectors of the country’s IT and IT-ES industry along with the presence of both domestic and international firms that are capable of delivering services and products that match up with the rigid global standards [29].

IT spending in the Philippines was observed to be majorly skewed towards hardware components. Majority of the IT spend by enterprises focused on purchasing devices such as personal computers, laptops, smartphones, tablets and others. The Philippine hardware market size was witnessed to increase over the years both in terms of sales volumes and revenues. The growing concern for cybersecurity and prevention of virus attacks has led several Filipino companies to adopt total security solutions consisting of internet security, anti-spyware, malware, anti-virus and others. In terms of revenue, the country’s antivirus market showcased year on year growth during 2012-2018 and was dominated by the enterprise segment, followed by the retail segment [30].

Opportunities and

  • The Philippine workforce is young, well-educated, skilled, and highly adaptive to technology and its technical skill requirements. They are fluent in Western-accented English and are patient - a trait which comes in handy when facing customers [31].

  • The engine that propels the outsourcing industry in any developing country is its lower cost of doing business. Other services and products that benefit from low labor costs, such as professional services, office rental, office supplies, food and lodging are also very reasonable in the Philippines. Health care costs and taxes are also much cheaper than in developed countries [32].

  • The national government supports the BPO industry by creating relevant policies and programs. A recent example for the same would be the Data Privacy Act, which puts into place stringent international quality data privacy standards, thereby ensuring that sensitive information being handled on a daily basis remains secure.

  • The Philippines’ focus on growing industries in both voice and non-voice sectors such as global in-house centers (GICs), healthcare information management, animation, and gaming also ensure future BPO growth in the country [33].

  • Investors in the Philippine BPO industry are offered a sizable number of incentives, including tax holidays, tax exemptions on imported equipment, simplified import procedures, and freedom to employ foreign nationals [34].

  • Led by digital transformation, the BPO industry of the Philippines is expected to be influenced by the top trends emerging in Industry 4.0 including Big Data and Analytics (BDA), Internet-of-Things (IoT), Automation and Artificial Intelligence (AI), and cloud computing, all of which rely heavily on the IT-BPM industry. With the formulation of the AI Roadmap, the Philippines is laying the foundations to keep up with rapidly changing times and improve its technology adoption and competitiveness [35].

  • With the advent of the Fourth Industrial Revolution (Industry 4.0) and with the accelerated digitization of government, industry, and society as a whole due to the COVID-19 pandemic, there is an opportunity for accelerated growth in high-value services, particularly in animation, game development, global in-house centers, health information management (HIM), IT, and software development [35].

  • The Philippine software market is expected to grow due to the increasing number of software-centric startups within the country. The country’s hardware market revenues are further estimated to have a potential rise in the overall sales of computers and peripherals. Resulting from the increasing number of internet users across various verticals is anticipated to boost the demand for antivirus solutions in the near future to avoid any data breach or illegal cyber activity [30].

Featured Companies

  • Insurance Support Services Corporation (ISSI Corp.) Insurance Support Services Corporation, ISSI Corp., is an insurance-focused business process outsourcer with more than 600 employees. They provide specialised support services for the global insurance industry. ISSI Corp. is a wholly-owned subsidiary of Standard Insurance Co. Inc., the Philippines’ leading non-life insurance company. They started their operations in 2009, providing accounting, underwriting, customer service and back office support to insurance companies all over the world [36].

  • Accenture Inc. Accenture Inc. is one of the top 10 BPO companies in the Philippines. Accenture started its operations in the Philippines in 1985. It’s listed on Forbes’s Global 2000 and ranked on Fortune World’s Most Admired Companies and 100 Best Companies to Work for. This international company serves clients in more than 120 countries and across 40 industries, providing solutions in strategy, consulting, technology, operations and digital experience. Accenture has over 50,000 employees across key cities in Manila, Cebu and Ilocos [37].

  • JP Morgan Chase & Co. PGSC JPMorgan Chase & Co. is a leading global financial services firm. JP Morgan Chase & Co – Philippine Global Service Center is considered as one of the best BPO companies in the Philippines, operating as a subsidiary of the American multinational bank. The company started offering consumer banking, community banking, corporate banking, and investment support in the Philippines in 2005. These services are most typically availed of by companies working in the financial, insurance and legal industries [38].

  • Pointwest Technologies Corporation Founded in 2003 by pioneers of the Philippine Global Sourcing industry, Pointwest supports its strong presence in North America, Japan, Singapore, Australia, and New Zealand. The company was honored by the International ICT as the “Best Filipino-Owned Company” in 2015. The company has extensive industry experience in financial services, retail, transportation, logistics, travel, healthcare, utilities, media, and the public sector. It transforms businesses with digital offerings in analytics, UX, enterprise mobility, omnichannel solutions, RPA, and cloud computing [39].


[25] Markets, R. A. (2019, December 12). Analysis of the IT Industry in the Philippines, 2012–2019 & 2023F. GlobeNewswire News Room. Organization.


[26] Outsource Accelerator. (2022, April 12). Top 40 BPO companies in the Philippines 2022.


[27] Business World. (2018, May 16). BPO sector: An economic pillar. BusinessWorld Online.


[28] INDUSTRY GOV Ph. (n.d.). IT-BPM. Securing The Future of Philippine Industries.


[29] Research and Markets. (2019a, December 12). Analysis of the IT Industry in the Philippines, 2012–2019 & 2023F. GlobeNewswire News Room.


[30] Research and Markets. (2019b, November 1). Philippines IT Industry Analysis & Forecasts to 2023: Growth is Driven by Increasing FDI from Foreign Players and Multiple Employment Opportunities. GlobeNewswire News Room.


[31] Asian Briefing. (2017, April 17). Business Process Outsourcing in The Philippines. ASEAN Business News.


[32] SourceFit. (2021, September 8). BPO Philippines: Business Process Outsourcing in the Philippines. Sourcefit BPO Philippines: Custom Offshore Staffing Solutions.


[33] Gupta, A. (2019, March 5). Philippines IT-BPO Market is Expected to Reach About PHP 2.5 Trillion in Terms of Revenue by the Year Ending 2023: Ken Research. Ken Research.


[34] Flatworld Solutions. (n.d.). The Growth of the BPO Industry in the Philippines.


[35] Outsourcing Journal. (2021, October 12). 2021/22 Philippines IT & BPO Industry Performance and Outlook.


[36] ISSI Co. (n.d.). ISSICO. ISSI.


[37] Accenture Philippines. (n.d.). Accenture. AccentureI.


[38] J.P. Morgan Philippines. (n.d.). About us | J.P. Morgan Philippines.


[39] Pointwest. (2021, October 19). About Pointwest - IT Service Excellence. Pointwest Technologies Corporation.