Cebu ranks as top Philippines BPO hub despite AI, global risks
CEBU, PHILIPPINES — Cebu has solidified its position as the Philippines’ leading Business Process Outsourcing (BPO) hub outside Metro Manila, driving growth in the country’s $31.6 billion contact center industry despite global economic uncertainties and AI disruption.
In a report from The Freeman, industry leaders at the Contact Islands 2025 conference highlighted Cebu’s skilled workforce and infrastructure as key advantages, even as the sector braces for a potential policy shift.
Cebu’s BPO dominance fuels national industry growth
Cebu now employs roughly 160,000 full-time BPO workers—15% of the sector’s national workforce—with Mandaue and Lapu-Lapu cities emerging as vital extensions of its outsourcing ecosystem.
Contact Center Association of the Philippines (CCAP) President Haidee Enriquez emphasized Cebu’s role in decentralizing the industry, with 34% of IT-BPM jobs now located outside Metro Manila.
The Visayas region, led by Cebu, accounts for 22% of the national BPO workforce, while Mindanao lags at just 5%. Local governments and developers are doubling down on talent development and infrastructure to sustain growth, aiming to replicate Cebu’s success in other provinces.
The industry is projected to reach $49 billion in revenue by 2028, and the Cebu blueprint provides a regional expansion pathway within the government-organized “Digital Cities” plan.
AI and U.S. policy risks loom over outsourcing boom
Despite the fact that during several Contact Islands 2025 sessions, one of the issues of focus was the impact of AI on customer experience, the representatives of the industry are expressing hope that Cebu will be able to evolve and use automation to improve, rather than replace, the services based on human value.
However, there is an overhang of geopolitical risks, particularly the potential shift in U.S. policies following a Trump reelection. As Enriquez observed, when Trump was in his first term, economic nationalism brought down the sector growth to 2.5% in 2017 and 3.9% in 2018.
“The Trump factor has historically tempered our growth,” Enriquez said.
She notes that a sudden shift in outsourcing demand or consumer behavior could disrupt growth, as current American tariffs are primarily aimed at goods rather than services.
The industry is both wary and optimistic, with surveys indicating no short-term effects. However, industry executives are closely monitoring U.S. policies.
As Cebu solidifies its position, the question arises of how to integrate AI and manage global uncertainties without losing the competitive edge that has made the Philippines the world’s best BPO destination.
