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The Philippines in “Top 50 Emerging Global Outsourcing Cities” Study

by: Karen Cayamanda

Tuesday, October 20, 2009 |

There is no stopping the outsourcing industry in the Philippines, not even the global financial crisis.

In the Global Services-Tholons study entitled “Top 50 Emerging Global Outsourcing Cities”, the Philippines has been ranked second, next to India, in the list of Top 5 Offshore Nations. China, Ireland, and Brazil also made it to the list.

The Philippines in the global outsourcing scene


The country first made its presence known in the global outsourcing scene as an ideal destination for voice-based services. Through the years, it has evolved into a hub not only for contact centers but also for non-voice BPO services including IT, back-office functions, as well as medical, legal, finance and accounting, and human resources outsourcing. Also, Western companies which are struggling to stay afloat during these rough times feel compelled to outsource business tasks as a cost-cutting measure, and are discovering the country as the ideal offshoring destination. That is why there is an ever increasing demand in the outsourcing industry.

In 2008, the BPO industry in the country had registered a total of US$6 billion in revenues, and employed more than 250,000 people. With an estimated revenue of US$7.3 billion by the end of 2009, it is predicted that the Philippine outsourcing industry will see continuous growth and will remain resilient in the current global economic downturn.

However, the report revealed that three cities in the Philippines - Pasig City, Quezon City, and Mandaluyong City - were removed from the list of top emerging outsourcing cities. This may be the case, but Manila-NCR is still included in the Top 8 Global Outsourcing Cities (ranked no. 4). When it comes to the Top 50 Emerging Global Outsourcing Cities, Cebu City reigns supreme for the second year running.


The Philippines' large pool of English-speaking and highly skilled individuals, affinity with Western culture, low labor and operational costs, and continuous support from the government are all major factors that make the country an ideal outsourcing destination. By looking at the findings of this study, there is no doubt that the outsourcing industry in the country will continue to flourish in the years to come.

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