As the Philippine business process outsourcing (BPO) sector enters the final quarter of 2024, it continues to demonstrate resilience and growth despite challenges posed by the rapid rise of artificial intelligence (AI).
“Attrition is a moving number, affected by seasonality and the diverse sectors within our industry,” says Jack Madrid, president of the IT and Business Process Association of the Philippines (IBPAP). “Contact centers typically have higher attrition, around 40%. In contrast, global in-house centers [GICs] have lower rates, around 10% to 15%.”
Strong revenue growth and hiring momentum
IBPAP projects a revenue growth of 7% for the year, with the industry expected to generate nearly $38 billion. This figure aligns with the sector’s steady upward trajectory, driven by sustained demand for outsourcing services from global markets, particularly North America and Asia Pacific.
A significant factor behind this optimistic outlook is the expected surge in hiring in Q4 2024. The information technology and business process management (IT-BPM) industry anticipates an uptick in recruitment, particularly in contact centers, fueled by heightened demand during the holiday season in major markets such as the United States.
Industry leaders are confident that this hiring push will help the sector meet its goal of 1.82 million jobs by the end of the year.
Investor confidence and the 2025 outlook
Stakeholder interest in the local BPO industry remains strong, particularly in North America. The sector is also seeing growing attention from other regions, including Australia, the United Kingdom, and the Asia Pacific.
This broad interest has prompted IBPAP to promote the Philippines as a prime outsourcing destination, highlighting the country’s skilled workforce and competitive costs.
The sector’s outlook in 2025 remains positive despite concerns about job shedding due to AI-driven automation. Many experts believe the BPO industry will adapt rather than decline.
AI will complement human roles by enhancing efficiency, reducing costs, and allowing companies to focus on more complex tasks that require human intervention.
Moreover, the Philippine government and industry stakeholders focus on upskilling workers to maintain their competitiveness in a tech-driven future.
Continued growth and economic contributions
The Philippine BPO sector is on track for continued growth into 2025, with stable attrition rates, increased investor interest, and strategic adaptation to emerging technologies. Its contribution to the country’s economy remains substantial, and its role in global business operations could strengthen further.
As businesses worldwide seek cost-effective solutions without compromising quality, the Philippine BPO sector’s emphasis on service excellence and adaptability will likely solidify the country as a top outsourcing destination beyond 2025.
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Campos, O. (2024, October 3). BPO sector expects surge in hiring in Q4, enjoys stable attrition rate. Manila Standard. Retrieved from https://www.manilastandard.net/business/314506013/bpo-sector-expects-surge-in-hiring-in-q4-enjoys-stable-attrition-rate.html
Tabile, J. I. (2024, January 22). BPOs target staffing level exceeding 2M by 2025. BusinessWorld Online. Retrieved from https://www.bworldonline.com/economy/2024/01/22/570565/bpos-target-staffing-level-exceeding-2m-by-2025/
Suroy Suroy, H. J. (2024, October 8). Philippine BPO sector forecasts strong Q4 hiring growth. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/philippine-bpo-strong-q4-hiring/
Talavera, C. (2024, February 25). BPO industry rides AI wave. PhilStar Global. Retrieved from https://www.philstar.com/business/2024/02/25/2335863/bpo-industry-rides-ai-wave
