The Philippines’ US$38-billion business process management (BPM) industry is bracing for renewed geopolitical turbulence and accelerating advances in artificial intelligence (AI) as executives and policymakers prepare for another period of global volatility.
With roughly 85 percent of its revenue tied to U.S.-based clients, the sector is watching closely as US President Donald Trump’s return to the White House raises fresh concerns over protectionist trade policy and a possible revival of economic nationalism.
Industry executives are also navigating the fast-moving integration of generative AI, which is reshaping service delivery models and labor dynamics across the global outsourcing landscape.
“We are anticipating shifts in U.S. policy that could materially impact demand,” said Haidee C. Enriquez, president of the Contact Center Association of the Philippines (CCAP).
“However, our experience during the pandemic and early investments in AI adoption give us confidence in our ability to adapt,” Enriquez added.
Historical data points to the risks ahead. Industry growth slowed markedly during Trump’s first term, with expansion falling from 12.3 percent in 2016 to 2.5 percent in 2017 and 3.9percent in 2018, as anti-offshoring rhetoric and shifting sentiment weighed on new investments.
Steady Gains in 2024, but Outlook Remains Cautious
Despite global headwinds, the sector posted a strong performance in 2024. Revenues hit US$31.5 billion—surpassing earlier forecasts—and employment rose 11 percent year-on-year to 1.62 million workers, with contact centers accounting for nearly 90 percent of new jobs. The contact center segment contributed US$31.5 billion tothe IT-BPM sector’s total revenue of US$38 billion, highlighting its continued dominance in the Philippines’ outsourcing portfolio.
The industry remains on track for its ambitious US$49 billion revenue target by 2028, buoyed by digital transformation efforts and an expanding talent pipeline.
“We’re balancing growth with transformation,” Enriquez said. “AI is not a threat—it’s a tool. Our challenge is ensuring our workforce is equipped to evolve alongside it.”
Contact Islands 2025 to Tackle Sectoral Strategy and Global Risk
These strategic questions will take center stage at “Contact Islands 2025,” CCAP’s annual flagship summit, to be held May 27–29 at the FILI Hotel in NUSTAR, Cebu.
With the theme “Beyond the Hype: CX, AI, and the Forces Reshaping Philippine Contact Centers”, the conference aims to serve as a high-level forum for candid dialogue among business leaders, regulators, and analysts.
Key agenda items include: Assessing the implications of a second Trump administration for global outsourcing flows, Examining ethical and operational challenges tied to AI deployment in customer experience (CX), Reviewing progress toward the sector’s 2028 roadmap.
Bridging digital skills gaps through public-private collaboration.
“This isn’t a typical industry event,” Enriquez noted, adding that CCAP is bringing real-world issues to the forefront, “with an emphasis on clear-eyed risk assessment and pragmatic strategy.”
As the sector navigates an increasingly complex external environment, leaders are prioritizing resilience, workforce agility, and digital capability—factors seen as essential to sustaining the Philippines’ position as a global outsourcing hub, Enriquez concluded.