The Philippine Global Capability Centers (GCC) market – expected to grow to US$ 67.97 Billion by 2032, and currently 15% of the country’s ITBPM (Information Technology and Business Process Management) industry – is powered by professionals who are particularly proficient in the English language. Communication, after all, is the core strength of Filipino workers. This, plus a generally skilled and cost competitive workforce, has made the Philippines an ideal location for GCCs.
The Information Technology segment of the Philippine Global Capability Center Services market (GCCS) — comprised of Filipino programmers, analysts and artificial intelligence engineers and others — is the largest of the GCC services that make up 15 to 20% of the ever-expanding ITBPM industry.
The country boasts a large pool of educated professionals, in fields such as information technology, R & D, design, engineering, analytics and medical services, in addition to an already large pool of BPO industry employees. The adaptability and general geniality of Filipinos, combined with strong domain skills and English language proficiency, are making it easier for companies to manage their global operations. Moreover, the education system in the Philippines produces graduates that are also familiar with international business practices, further boosting the country’s appeal for MNCs.
The Philippine Business Process Outsourcing (BPO) industry remains a significant part of the ITBPM landscape, driving substantial economic growth and providing employment to over 1.8 million people to date. Valued at $38.7 billion, this sector has positioned the Philippines as a premier outsourcing destination, again, primarily due to the English language proficiency of its workforce.
However, the growth of GCC services underscores a gradual but strategic industry pivot from BPO services to more high-value knowledge skills.
Jack Madrid, CEO of the IT and Business Process Association of the Philippines (IBPAP), explained how the industry is transitioning: “Safe to say we are a world capital in ITBPM, and I would say the leader in voice-centric services. The reason we use the term ITBPM is because the wide and diverse range of business services that our workforce provides cuts across virtually all industries, of which BPO is one big component.”
“The thing that has changed is really the diversity and complexity of the services that our workforce provides. We aren’t just providing traditional contact center services anymore. Specialized service verticals such as banking, financial services, and all aspects of healthcare have emerged over the past decades. As an example, I would say all the major US healthcare companies now have operations here in the country,” Madrid added.
The need for English language proficiency extends beyond the GCC and BPO industries. According to a March 2024 study by Pearson, “English skills have a life changing impact, and are seen as the key to unlocking higher pay, wider job opportunities, and even better friendships.”
However, the Philippine Institute for Development Studies (PIDS) has reported a decline in English language proficiency, noting that the country slipped four notches to 22nd place out of 111 countries in the 2022 edition of the English Proficiency Index. Despite the lower ranking, the Philippines still ranked second highest for English proficiency in the region, just behind Singapore.
Remote medical support services, medical staff management and medical teleconsultants are a growing breed of Filipino GCCS workers. Proficiency in communicating in English is paramount when dealing with patients and other global healthcare professionals.
To address proficiency challenges, leading companies in the industry have increasingly adopted advanced language training and assessment tools such as Versant by Pearson and Pearson’s Total Language Solutions. Rinna Dizon, Senior Recruitment Manager at iQor, has praised Versant for its secure administration and quick online access to language testing results. Samol Lyeng, Senior Competence Development Specialist at Smart Axiata, also highlights Versant’s ability to assess all four critical language skills—Speaking, Listening, Reading, and Writing—establishing a clear English proficiency standard for new candidates and employee improvement.
The continued competitiveness of the Philippine GCC market and other sectors in the ITBPM industry hinge significantly on the English proficiency of its robust and skilled workforce. As the sector further grows into high value knowledge and analytics-forward services, the focus on enhancing English proficiency remains paramount. For workers, it’s no longer just about landing a job. It’s about building a meaningful career and communicating effectively with clients and colleagues from different cultural backgrounds.
To maintain its strategic advantage, the ITBPM industry’s investment in ongoing English-proficiency training using AI-powered assessment solutions like Versant by Pearson and Pearson’s Total Language Solutions have become essential to supplement institutional learning. This helps ensure that Filipino professionals continue to excel in a dynamic global marketplace.
For more information, visit the Versant by Pearson APAC website.
Written by: Victor R. Ocampo and Patricia Mulles
ADVT.
This article is brought to you by Versant by Pearson through M&O Infinite Library.