The Shift in Philippine BPO: Beyond the Capital: Rural BPOs Are on the Rise
The Shift in Philippine BPO: Beyond the Capital: Rural BPOs Are on the Rise
Blog Article
Many still associate Philippine outsourcing, they often picture towering office buildings in Manila’s business districts. However, this is changing. An increasing number of firms now run operations in the Philippines by expanding to smaller cities and countryside—a trend known as the rural shift in outsourcing.
This movement is more than just geographic—it’s strategic, inclusive, and a key evolution in the offshoring and outsourcing industry.
Why Are BPOs Moving Out of Metro Manila?
Metro Manila is still a BPO stronghold, but increased expenses, heavy traffic, and stiff hiring competition push companies to look for better options. At the same time, technological advances and the normalization of remote work have made it easier than ever to build teams in the provinces.
Cities like Davao, Bacolod, Dumaguete, Iloilo, and CDO are becoming emerging outsourcing centers. Even rural towns are participating in the BPO wave, offering human capital, cost-efficiency, and new opportunities.
Why Rural BPO Makes Sense in the Philippines
Access to Untapped Talent
Many rural and provincial cities have top-tier universities and training centers. Instead of moving away, young professionals can work locally.
Lower Costs
Choosing smaller cities comes with significantly lower rent, wages, and operating expenses—without losing efficiency.
Improved Work-Life Balance for Employees
Proximity to work improves employee lives, reducing commuting time and improving employee satisfaction and retention.
Inclusive Economic Development
By expanding operations beyond the capital, companies boost rural economies and spread job opportunities—helping to reduce inequality and urban overpopulation.
Major BPOs Are Going Regional
Many of the top BPO companies in the Philippines are setting up provincial offices and supporting remote setups to tap into rural talent. Government support programs and policies also facilitate expansion, providing tax breaks and infrastructure support in next-wave cities.
The IT website & Business Process Association of the Philippines (IBPAP) has emphasized the growth of “next-wave cities” as a key pillar of future industry growth.
The Future of BPO in the Philippines
Rural outsourcing isn’t just a workaround—it’s a competitive edge. Companies that choose rural BPOs can expand efficiently while staying cost-effective.
As the question of “what is outsourcing” continues to evolve, the rural shift proves it’s possible to do good while doing business.