The Philippines’ contact center sector, which anchors the nation’s $38 billion IT-BPM sector, grew 7.1% to $31.6 billion in 2024 and remains on track to hit its annual revenue target by 2028, according to the Contact Center Association of the Philippines (CCAP).
Along with the entire Information Technology and Business Process Management (IT-BPM) Industry, the contact center sector remains on track to hit the $49 billion annual revenue goal by 2028 despite the numerous challenges coming its way.
CCAP President Haidee Enriquez said the industry continued to benefit from the country’s leading position in digital customer experience services, accounting for 83% of the IT-BPM industry’s $38 billion revenue in 2024.
The contact center segment alone earned $31.6 billion last year, up 7.1% from $29.5 billion in 2023.
“This industry has remained pandemic-proof, economic-downturn-proof, and even government-change-proof,” Enriquez said in a briefing joined by Chairman of the Board Mitch Locsin. “Despite global headwinds, we continue to expand.”
She also cited continued outsourcing demand, especially from the United States, which accounts for about 85% of total contracts. However, she noted that the sector is closely monitoring the protectionist policies of U.S. President Donald Trump.
“Fortunately, current U.S. tariff actions are focused on goods, not services. But we remain cautious as any shift could impact outsourcing flows,” Enriquez said.
The Philippine government has allocated 500 million pesos ($8.6 million) through the Technical Education and Skills Development Authority (TESDA) for workforce upskilling initiatives, with additional funds expected in 2026.
Training will focus on digital and emerging technologies to boost productivity and ensure the sector’s long-term competitiveness.
“The key is not just adopting new technology, but enabling workers to use it effectively,” Enriquez said. “We promote a mindset of ‘humans plus AI’ rather than humans versus AI.”
Data privacy and security also remain a top priority, particularly under hybrid work arrangements. Up to half of all contact center agents are allowed to work remotely, supported by productivity monitoring and information security systems.
Enriquez credited improved government-industry collaboration for the sector’s progress.
“We now have active representation and support from national agencies, a significant shift from just a few years ago,” she said.
The remarks came ahead of the annual Contact Islands conference, held May 27-29 at the FILI Hotel in Cebu, where industry leaders and policymakers are discussing customer experience trends, AI adoption, and future policy directions.
Business News Asia