The Latest on Outsourcing to the Philippines: Key Insights from Q4 2024

Outsourcing isn’t just about cutting costs anymore. It’s about building competitive, scalable teams that deliver exceptional value and drive growth. And there’s no better place to find this balance than the Philippines. According to the latest Q4 2024 report from the IT & Business Process Association of the Philippines (IBPAP), the Philippine IT-BPM industry is on track to generate $38 billion in revenue in 2024, with a workforce of 1.82 million professionals.

These numbers aren’t just impressive—they’re transformative. They signal that the Philippines is no longer just an outsourcing destination but a strategic partner for businesses looking to scale smartly, enhance efficiency, and innovate globally.

Here’s why these insights matter and how they can guide your outsourcing strategy.

Infographics made by IT & Business Process Association Philippines

The strength of the Philippines’ outsourcing industry lies in its people. Over 850,000 graduates join the workforce each year, contributing to the IT-BPM sector's ever-expanding talent pool. This dynamic workforce doesn’t just bring skills—it brings adaptability, a service-oriented mindset, and the ability to integrate seamlessly with global teams.

Infographics made by IT & Business Process Association Philippines

• STEM Expertise: With over 20% of graduates specializing in STEM (Science, Technology, Engineering, and Mathematics), the Philippines is home to a highly skilled tech workforce. These professionals excel in areas like software development, cybersecurity, and data analytics, which are critical to modern businesses.

• Fluency in English: Ranked #2 in Asia for English proficiency, the Philippine workforce offers clear and effective communication. This reduces friction, enhances collaboration, and ensures a smoother outsourcing experience.

For businesses, this means more than just filling roles—it’s about finding the right people with the skills and mindset to deliver value from day one.

The contact center industry in the Philippines remains a global leader, projected to contribute $31.6 billion in revenue in 2024. While customer support has always been a cornerstone of the outsourcing market, the game has evolved. Today, it’s about delivering seamless, omnichannel customer experiences that go beyond answering calls.

The Modern Contact Center

• Customer-Centric Services: Filipino employees excel in roles that require empathy, problem-solving, and emotional intelligence, making them ideal for high-stakes customer interactions.

• Non-Voice Services: From chat support to social media management, the Philippines has expanded its capabilities, providing comprehensive customer experience solutions.

• Analytics and AI Integration: Contact centers are now leveraging data to anticipate customer needs, improve satisfaction, and optimize performance.

This evolution ensures that businesses outsourcing to the Philippines aren’t just saving money—they’re elevating their customer experience.

Infographics made by IT & Business Process Association Philippines

IT services in the Philippines are projected to generate $6.1 billion in revenue in 2024. With a growing focus on high-value work like software development, cloud computing, and digital transformation, the country has positioned itself as a hub for innovation.

• Tech-Savvy Workforce: The Philippines has a deep bench of IT professionals skilled in programming languages like Java, Python, and C++, as well as emerging technologies like AI and robotics.

• Scalability: Whether you need a single developer or an entire IT department, the Philippines offers flexible, cost-effective solutions that adapt to your needs.

This combination of talent and adaptability makes the Philippines an ideal destination for businesses seeking to stay ahead in a rapidly evolving tech landscape.

The creative outsourcing sector in the Philippines is booming, with a projected compound annual growth rate (CAGR) of 15% through 2028. Revenues from animation and game development alone are set to reach $180 million in 2024.

Infographics made by IT & Business Process Association Philippines

Creative Services in Demand

• Animation and Motion Graphics: Filipino animators are known for their exceptional skills in both 2D and 3D animation, serving global studios in North America, Europe, and Asia.

• Game Development: From programming to quality assurance, the Philippines is a trusted partner for some of the world’s leading game developers.

• Interactive Design: The country’s expertise in UI/UX and interactive media further solidifies its position as a leader in creative outsourcing.

For businesses looking to innovate and expand their creative capabilities, the Philippines offers a unique blend of artistry and technical skill.

North America accounts for 70% of the Philippines’ outsourcing revenues, a testament to the country’s long-standing reputation as a trusted partner for Western businesses. Its cultural alignment, neutral accent, and deep understanding of Western business practices make it an obvious choice for companies looking to scale globally.

While North America remains the largest market, the Asia-Pacific region is emerging as a key growth area. Businesses in APAC are increasingly turning to the Philippines for its proximity, talent, and ability to deliver high-quality services across a range of industries.

This diversification ensures that the Philippine outsourcing industry remains resilient and well-positioned for future growth.

Infographics made by IT & Business Process Association Philippines

The Philippine outsourcing industry doesn’t just create jobs—it builds careers. With 1.6 million professionals employed in contact centers alone, these roles have evolved into opportunities for career growth and professional development.

From Entry-Level to Expertise

• High-Value Roles: Contact centers now handle complex tasks like data analytics, financial processing, and supply chain management.

• Upskilling and Development: Many outsourcing providers invest in continuous learning, equipping employees with the skills needed to excel in emerging fields.

For businesses, this means partnering with a workforce that is not only capable but also constantly evolving to meet new challenges.

The IBPAP’s Roadmap 2028 outlines ambitious goals: $29.5 billion in additional revenue, 1.1 million new jobs, and deeper integration with global markets. This growth isn’t just theoretical—it’s backed by targeted initiatives designed to propel the industry forward.

Key Drivers of Growth

• Policy Support: Simplified regulations and hybrid work-friendly policies are making it easier for businesses to operate in the Philippines.

• Regional Expansion: Emerging hubs outside Metro Manila are opening up new opportunities for businesses to tap into previously untapped talent pools.

• Talent Upskilling: National programs are preparing the workforce for roles in AI, digital marketing, and analytics, ensuring the Philippines remains at the cutting edge.

This roadmap demonstrates the Philippines’ commitment to remaining a leader in the global outsourcing market.

Outsourcing isn’t just about choosing the right destination—it’s about choosing the right partner. That’s where the Employer of Record (EOR) model comes in. By partnering with an EOR like KMC Teams, businesses can unlock the full potential of outsourcing to the Philippines without the administrative headaches.

• Compliance Made Easy: From payroll to labor laws, an EOR handles all the complexities, ensuring full compliance with local regulations.

• Tailored Talent Solutions: An EOR recruits, onboards, and manages teams that align perfectly with your business needs.

• Flexible Infrastructure: With state-of-the-art facilities and options for in-office, hybrid, or remote setups, an EOR offers the flexibility businesses need to thrive.

By simplifying the outsourcing process, an EOR allows businesses to focus on what they do best while reaping the benefits of a world-class offshore team.

The latest IBPAP report leaves little room for doubt: the Philippines isn’t just a good outsourcing destination—it’s the best. With its exceptional talent, proven track record, and forward-looking initiatives, the country offers a unique combination of capability and value.

For businesses looking to scale, enhance efficiency, or enter new markets, the Philippines provides the perfect platform. And with the support of an EOR like KMC Teams, the transition is seamless, strategic, and effective.

Outsourcing isn’t just a cost-saving strategy—it’s a growth strategy. The Philippines is ready to help your business grow smarter, faster, and stronger. Are you ready to take the next step?

credits: IT & Business Process Association Philippines