Philippine IT-BPM sector hits $38B revenue in 2024: Colliers report
TORONTO, CANADA — The Philippines’ IT-BPM industry achieved outstanding growth in 2024 based on a new report from Colliers, with revenues climbing 7% to $38 billion as global companies continued to expand their operations across the country.
Major players like Telus, Accenture and Concentrix led significant office space expansions, while new entrants including X (Twitter) Corporation joined the thriving outsourcing sector.
Industry leaders drive aggressive expansion
Telus emerged as the top office space occupier, leasing 37,300 square meters nationwide, including a 27,700-square-meter hub in Quezon City and a 4,600-square-meter site in Iloilo. The telecom giant’s growth aligns with strong Q4 2024 earnings from its mobility and fixed services divisions.
The expansion trend extended across various industries:
- Financial services – London Stock Exchange Group (LSEG) took 13,700 sqm in Bonifacio Global City, reinforcing the area as a premium business district
- Technology services – Accenture with 11,100 sqm and Concentrix with 19,000 sqm expanded their Metro Manila presence, with Concentrix specifically attributing growth to adoption of its AI-powered tools such as iXHello, Smart Assist and automated quality assurance.
- Healthcare & IT – Johnson & Johnson with 8,400 sqm and Optum‘s significant 17,000 sqm expansion into Cebu and Davao highlight the growing demand for healthcare outsourcing and digital health services.
Major firms are significantly expanding their Philippine office footprints, with combined new leases exceeding 100,000 sqm in 2024. These expansions across multiple industries coincide with the country’s IT-BPM sector reaching a record revenue of billions of dollars, reflecting continued confidence in the Philippines as a key global outsourcing hub.
Hybrid work reshapes office space dynamics
While 49% of 2024 transactions were expansions, the CREATE MORE Act has allowed PEZA-registered firms to adopt 50% remote work without losing tax incentives and prompted downsizing.
More firms followed this vacation of office spaces as VXI Global released 10,800 sqm and Cognizant with 9,000 sqm, demonstrating wider hybrid workplace growth.
The Philippines managed to draw two new companies, X (Twitter) Corporation and Gear Inc., despite its adjustments, while they established facilities with 2,400 sqm and 1,900 sqm respectively.
Analysts attribute the sector’s resilience to skilled labor, BPO-ready infrastructure, and government incentives, ensuring the country’s position as a global outsourcing leader.
