Philippine BPO courts Asia, Europe to cut U.S. reliance
MANILA, PHILIPPINES — The Philippines’ information technology-business process management (IT-BPM) sector is moving to diversify its client base toward Australia, Japan, the Middle East, and the United Kingdom, as the industry responds to proposed United States legislation that would restrict offshore call center contracts and a structural dependence on a single market that accounts for approximately 70% of current revenues.
U.S. legislative risk accelerates Asia-Pacific and European client push
According to a report by the Philippine Daily Inquirer, citing statements by IBPAP President and CEO Jack Madrid, the industry’s four-point diversification plan is targeting mid-market enterprises and sector verticals in banking, insurance, and healthcare as priority growth areas outside the United States.
The IT-BPM sector’s push to diversify comes as two United States bills, the Keep Call Centers in America Act and the Halting International Relocation of Employment Act, have raised industry concern about the long-term security of business process outsourcing (BPO) contracts with American clients.
The sector’s revised 2028 revenue target of US$50.5 billion reflects a downward adjustment from an earlier US$59 billion projection, with the shortfall partially attributed to uncertainty in the United States market.
Seventy percent of the Philippines’ US$40 billion-plus IT-BPM revenues currently derive from United States clients, a concentration that makes any sustained shift in American offshoring policy a sector-level risk rather than a firm-level one.
“Companies no longer choose locations based solely on cost. They choose places that can deliver resilience, capability, and depth of talent,” said Madrid.
IBPAP targets new verticals and markets to reach 2028 revenue floor
The diversification programme prioritizes banking and financial services, insurance, healthcare, and mid-market enterprise segments in Australia, Japan, and the United Kingdom, markets where the Philippines has an existing English-language delivery advantage and where BPO adoption in those sectors remains underpenetrated relative to United States demand levels.
The sector’s 2028 workforce target of 2.14 million employees is contingent on successful client diversification, and the timeline for activating non-US revenue at the scale needed to hold the revised US$50.5 billion target is now the defining execution challenge for the association.
Madrid added: “We invite global companies ready to build their next chapter to build it with us.”
For businesses evaluating BPO delivery options in the Philippines, the IBPAP diversification drive signals that the sector’s English-language and talent-depth advantages are being formally positioned for non-US buyers for the first time at the industry-body level.
Buyers in Australia, Japan, and the United Kingdom considering Philippines-based delivery should expect growing competitive outreach from providers as the sector actively reduces its United States client concentration.
Related news
- Philippines BPO eyes diversification amid US call center bill threat · 21 Aug 2025
- IBPAP names first female president as Celeste Ilagan takes the helm · 9 Sep
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
