Contact Center Sector Set for Remarkable Growth
CEBU CITY – The contact center sector in the Philippines, a key part of the information technology and business process management (IT-BPM) industry, is on track to reach an ambitious $49-billion annual revenue target by 2028. This optimistic forecast reflects the sector’s ongoing strength and resilience as the country remains the leading global provider of digital customer experiences.
Recent reports indicate that the local contact center sector generated $31.6 billion in revenue in 2024, marking a 7.1 percent increase from $29.5 billion in 2023. This segment alone represents about 83 percent of the IT-BPM industry’s total $38 billion revenue for the year. Despite these positive figures, local experts say the sector still faces significant challenges.
Challenges and Geopolitical Factors Impacting Growth
One of the major concerns involves geopolitical risks, especially the renewed protectionism policies in the United States, the primary outsourcing client of the Philippines. Data from 2021 shows that about 85 percent of outsourcing contracts in the Philippines come from the US. Fortunately, current US tariffs target goods rather than services, which temporarily shields the sector from immediate impact.
However, industry insiders remain cautious, noting that shifts in US policies or changes in consumer behavior could influence service delivery. “Fortunately, the current US tariff movements are centered on goods, not on services,” said a source familiar with the matter. “But we do not rule out the possibility of a shift, which may affect our sector eventually. Based on the latest pulse survey we did within the industry, the way we do business in our sector is still not bearing impact from Trump’s actions. But we are watchful and cautious. Moreover, the US consumer behavior might also affect how we provide solutions.”
Upskilling and Technological Adoption Drive Future Success
To sustain growth and competitiveness, the sector is investing heavily in upskilling its workforce. Significant funding, including a P500-million government grant channeled through the Technical Education and Skills Development Authority (TESDA), supports training initiatives aimed at enhancing digital skills. This effort is complemented by further programs planned under the Department of Information and Communications Technology (DICT), with additional budgets anticipated in 2026.
These upskilling initiatives focus on equipping workers with the expertise to utilize emerging technologies effectively. Industry leaders emphasize that technology alone is not enough; human expertise remains crucial. “Technology is only as good as the person using it. We are finding ways to make it easier for our agents to navigate the new technologies,” explained a community leader in the sector.
Adopting new technology also requires a shift in mindset. Industry representatives stress the importance of viewing technology as a partner rather than a threat. “This is where the battle begins: To make our employees understand that technology is not a threat. There is a path to using new technology to everybody’s advantage. We’ve been emphasizing, it is humans plus AI (artificial intelligence), instead of humans versus AI,” said a local expert.
Industry Collaboration and Future Outlook
Discussions on these themes are underway at the Contact Islands conference, which began on May 27 at FILI Hotel in Nustar Cebu. The three-day event, themed “Beyond the Hype: CX, AI, and the Forces Reshaping Philippine Contact Centers,” gathers top industry leaders, policymakers, and global analysts to explore the future of the Philippine contact center and business process management sector.
In summary, despite facing geopolitical uncertainties and evolving technological demands, the contact center sector’s commitment to continuous improvement and strategic upskilling positions it well to achieve its $49-billion revenue goal by 2028.
For more news and updates on the contact center sector, visit Filipinokami.com.