There are two ways foreign companies operate in the Philippines. The first, which has long been the more common model, is to rent a “seat” in a business process outsourcing (BPO) provider’s office, where employees handle work for multiple clients rather than a single company.
The second is to open their own branch, hire their own employees, and operate an office that belongs entirely to the company rather than being contracted from a third party. This second type of office is known as a Global Capability Center, or GCC. It typically handles strategic functions such as finance, technology, and research for its parent company.
The first model has long dominated. That is starting to change. In the first quarter of 2026, GCCs accounted for 39% of all office space demand in the Philippines’ IT-BPM sector, with the rest taken up by traditional BPO operations.
The Philippines now has around 150 to 170 GCCs in operation, up from around 150 two years ago, according to the IT and Business Process Association of the Philippines (IBPAP). The market was valued at US$35.12 billion in 2025 and is projected to reach US$55.59 billion by 2030, growing at 9.62% annually, as presented at the GCC Forum 2026 in May.
Some 71% of their office leases run for five years, suggesting that these companies are coming to stay rather than simply test the waters.
Why Build Your Own Office Instead of Renting BPO Seats
The reason is not simply prestige. In an analysis published by the Philippine Daily Inquirer in May, Leechiu Property Consultants noted that companies building GCCs are not looking for the cheapest office space. They are building long-term capability centers.
Colliers Philippines offers a more specific reason: data security. “If you want to secure data, you have to be in your own office,” said Joey Bondoc, Colliers’ director of research, rather than sharing space with other clients in a BPO building.
So, why the Philippines? The answer lies in its workforce. The Philippines scored 569 on the 2025 EF English Proficiency Index, well above the global average of 488. Its English proficiency and widely perceived neutral accent make the country well suited for roles that involve direct communication with global customers or partners.
There is also talent across multiple fields, including finance, IT, engineering, and healthcare. Companies registered with the Philippine Economic Zone Authority (PEZA) can receive tax incentives, including income tax exemptions for certain periods. In 2025 alone, PEZA recorded 23 new GCC registrations and 47 expansion projects.
Jack Madrid, President and CEO of IBPAP, highlighted a more economic reason: revenue per employee in GCCs is significantly higher than the IT-BPM industry average, making the sector a priority for creating high-value jobs. He cited JPMorgan Chase, which continues to add thousands of employees each year, with its workforce projected to grow another 10% in 2026.
The Companies Already Building In-House
Sun Life Global Solutions is one of the longest-established examples. Originally called Sun Life Asia Service Centre, it has operated in the Philippines since 1991.
It is now explicitly described as a Global Capability Center for the Canadian insurance company, serving 28 markets through technology, operations, actuarial, finance, and human resources functions.
In September 2025, JPMorgan Chase completed occupancy of its second tower in Uptown Bonifacio Global City, adding 70,000 square meters of space equipped with an AI-powered operations center and cybersecurity command facilities.
As a comparison from the vendor side, rather than the GCC side, consulting giant Accenture also committed US$120 million last July to three GenAI Centers of Excellence in Manila, Cebu, and Davao, targeting 3,500 new hires.
This shows the same momentum across the Philippines’ IT-BPM sector, although Accenture remains in a different category from GCCs because it operates as a third-party service provider rather than as an in-house center owned by the companies it serves.
The Growth Is Moving Beyond Manila
The growth is also beginning to move beyond Metro Manila. Celeste Ilagan, COO of IBPAP, noted that GCCs, once concentrated in Manila, are increasingly expanding into provincial locations.
Cebu is the most striking example. Office transactions there reached 121,000 square meters in 2025, up 71% from the previous year.
Net office take-up jumped from just 4,000 square meters in 2024 to 100,000 square meters in 2025, accounting for nearly half of all office transactions outside Metro Manila.
“The 120,000 sqm level indicates strong demand. Even before the Pogos and before the Covid-19 pandemic, 100,000 sqm was already high for a market like Cebu,” Bondoc said.
Asurion and Wells Fargo had already established GCCs in Cebu, while EY expanded its presence through its own Global Delivery Services (GDS) network, an in-house service model similar to a GCC under a different name.
“Cebu is a major economic hub because of its strong infrastructure, exceptional talent pool and complete business ecosystem,” said Alexis Ortiga, Vice President of SM Offices, which plans to add more than 60,000 square meters of new office space in Cebu in the fourth quarter of 2026.
The Philippines Is Not Trying to Be India
Despite its rapid growth, the Philippines’ scale needs to be kept in perspective.
India still has more than 1,800 GCCs, according to Nasscom, India’s official IT industry association, with combined revenues of US$64.6 billion in 2024. That is far above the Philippines’ 150 to 170 GCCs. India also remains stronger in highly technical work, such as research and complex software development.
The Philippines’ advantage lies elsewhere: roles that require English-language communication and cultural familiarity with Western clients, such as customer service and high-value operational support.
As a result, some analysts recommend a dual-shore strategy: India for complex technical work and the Philippines for service- and communication-oriented functions, rather than expecting one country to handle everything.
References:
- Añonuevo, P. (2026, 5 Mei). A new chapter for Philippine BPO: The rise of in-house global capability centers. https://business.inquirer.net/588278/a-new-chapter-for-philippine-bpo-the-rise-of-in-house-global-capability-centers
- Altre. (t.t.). India vs Philippines: The next frontier for Global Capability Centers. https://www.altre.co.in/blogs/india-vs-philippines-global-capability-centers-talent
- GMA News Online. (2025, 23 September). IBPAP bullish on growth of global capability centers in PH. https://www.gmanetwork.com/news/money/companies/960082/ibpap-bullish-on-growth-of-global-capability-centers-in-ph/story/
- Nasscom. (2025). GCC annual report 2024. https://community.nasscom.in/communities/global-capability-centers/gcc-annual-report-2024
- Outsource Accelerator. (t.t.). Why the Philippines is becoming a preferred destination for Global Capability Centers. https://www.outsourceaccelerator.com/articles/global-capability-centers-philippines/
- Outsource Accelerator News. (t.t.). Sun Life names Bianca Ilibasic to lead India, Philippines GCC. https://news.outsourceaccelerator.com/sun-life-names-bianca-ilibasic/
- Philippine Daily Inquirer. (2025, 11 Juni). Philippines woos multinational firms to set up business processing hubs. https://business.inquirer.net/529926/philippines-woos-multinational-firms-to-set-up-business-processing-hubs
- SunStar Cebu. (2026, 24 Februari). Cebu rises as PH's next GCC powerhouse. https://www.sunstar.com.ph/cebu/cebu-rises-as-phs-next-gcc-powerhouse
- The Philippine Star. (2026, 26 Mei). Philippines outsourcing sees 'micro-GCCs' surge to drive $55 billion market projection. https://www.philstar.com/business/2026/05/26/2530468/philippines-outsourcing-sees-micro-gccs-surge-drive-s55-billion-market-projection
