Beyond Call Centers: The Rise of High-Value IT-BPM Services in the Philippines

The Philippines’ IT and Business Process Management (IT-BPM) sector has evolved from a voice-centric call center base into a hub for high-value services. With a strong shift toward finance, healthcare, legal, IT, and data analytics, the industry is now defined by knowledge-based operations that generate greater value and sophistication.

In 2024, the sector recorded US$38 billion in export revenues, a 7 percent increase over the previous year, and employed 1.82 million professionals. Employment is expected to reach 1.9 million by the end of 2025.

Key sectors driving high-value IT-BPM growth in the Philippines

Finance and accounting services

Finance and accounting is the largest non-voice segment in the Philippine IT-BPM industry, contributing over 21 percent of total revenues. In 2024, this translated to approximately US$8 billion. Services range from payroll processing and financial reporting to treasury and compliance functions. The sector continues to grow due to strong demand for high-quality financial services and the availability of accounting talent fluent in international standards.

Healthcare information management

Healthcare Information Management Services (HIMS) generated around US$4.2 billion in 2024, or roughly 12 percent of total IT-BPM revenue. The segment is projected to reach US$6.7 billion by 2028. Services include medical coding, billing, clinical documentation, and telehealth support, made possible by a deep talent pool of licensed nurses and healthcare professionals. Clients in the U.S., UK, and Australia are increasingly outsourcing to the Philippines due to quality, scalability, and regulatory familiarity.

Legal process outsourcing

Legal process outsourcing in the Philippines earned approximately US$1.22 billion in 2023 and is projected to grow at over 30 percent annually through 2030. Filipino legal professionals handle contract management, regulatory research, litigation support, and intellectual property services. The country’s common law training and English fluency make it a top choice for firms seeking cost-effective, offshore legal solutions.

IT and software services

IT and software development services account for an estimated 16 to 18 percent of IT-BPM industry revenue, amounting to US$6.1 to 6.8 billion in 2024. The Philippines is now Southeast Asia’s second-largest digital services hub, supported by a growing network of global capability centers. These centers provide cloud migration, platform engineering, cybersecurity, and enterprise application services for multinational corporations in finance, insurance, and technology.

Data analytics and business intelligence

Data analytics and AI-powered services are increasingly embedded in Philippine IT-BPM operations. While exact revenue figures are not published, the country’s AI market is projected to grow from over US$1 billion in 2025 to nearly US$3.5 billion by 2030. At least 67 percent of IT-BPM companies have adopted AI tools across customer support, data entry, and quality assurance. Demand is driven by clients seeking predictive insights and real-time analytics capabilities.

Global capability centers and foreign investor interest

A defining feature of the Philippines’ IT-BPM evolution is the rapid expansion of global capability centers (GCCs) — wholly owned in-house operations established by multinational corporations (MNCs) to manage high-value business functions. Unlike traditional outsourcing models, GCCs give companies full control over their teams and systems, allowing them to centralize complex processes such as enterprise IT, data governance, finance transformation, and customer analytics.

As of 2024, there are over 150 active GCCs in the Philippines, contributing approximately US$8 billion, or 20 percent, of total IT-BPM industry revenues. These centers currently employ around 250,000 professionals, a figure expected to grow steadily as global firms consolidate regional support functions in the country.

The sectors leading GCC adoption include banking and financial services, healthcare, insurance, and enterprise technology. Major players such as J.P. Morgan, Wells Fargo, American Express, Citi, AIG, IBM, and PwC operate captive centers across Metro Manila and secondary cities like Cebu and Clark.

Several factors are driving this shift toward GCCs in the Philippines. Multinationals can tap into a large pool of digitally fluent, English-speaking graduates while maintaining lower operating costs. The stable regulatory environment, tax incentives under PEZA and BOI, and robust infrastructure in economic zones provide ideal conditions for long-term in-house operations.

Outlook and strategic goals

The Philippine IT-BPM sector is entering a strategic phase defined by the complexity and digital maturity of its services. Industry leadership, backed by government collaboration, has set in motion a roadmap that prioritizes regional growth, talent specialization, and advanced digital infrastructure.

At the heart of this transformation is the Digital Cities 2025 initiative, which is positioning 25 secondary locations across Luzon, Visayas, and Mindanao to absorb the next wave of IT-BPM expansion. Cities like Iloilo, Davao, and Cagayan de Oro are being primed with connectivity upgrades, training center rollouts, and investor facilitation programs. These regional hubs are expected to account for more than 50 percent of new jobs generated by 2028, helping to decongest Metro Manila while deepening the national talent base.

To meet rising complexity in service demand, particularly in areas like cybersecurity, AI integration, and enterprise analytics, the Department of Information and Communications Technology (DICT) is coordinating with the private sector on modular upskilling programs. New curricula aligned with global certifications are being deployed to support an estimated 1.1 million high-skill jobs the sector will require within the decade.

The regulatory framework is also evolving. While fiscal incentives through PEZA and BOI remain critical, complementary efforts under the CREATE MORE initiative are aimed at reducing administrative friction and expanding the scope of tax incentives for high-value, tech-driven investments. Legislative proposals include simplified access to digital economy incentives, enhanced support for regional operations, and improved rules for cross-border data handling — key elements to keep the Philippines competitive in the global services market.

Infrastructure commitments are expanding in parallel. Multiple hyperscale data centers are under development, and the rollout of terabit-capacity submarine cables and nationwide 5G is improving latency and bandwidth across both urban and regional zones. This positions the country to support next-generation workloads in sectors like fintech, healthtech, and digital commerce.

The combined effect of these strategies is to move the industry from volume-based outsourcing to capability-led global services.

This article first appeared on ASEAN Briefing, our sister platform.