Outsourcing in the Philippines often conjures images, they often picture towering office buildings in Manila’s business districts. However, this is changing. An increasing number of firms now outsource in the Philippines by building operations in next-wave cities and rural areas—a trend known as provincial BPO expansion.

This movement is a strategic and inclusive evolution in the business process outsourcing (BPO) landscape.

What’s Fueling the Move to Rural BPOs?

Manila remains a BPO powerhouse, but increased expenses, heavy traffic, and stiff hiring competition push companies to look for better options. At the same time, tech improvements and remote work adoption have made it easier than ever to set up operations anywhere in the country.

Cities like Iloilo, Bacolod, Davao, Dumaguete, and Cagayan de Oro are becoming hotspots for outsourcing. Even small municipalities are joining the trend, offering qualified talent, affordable costs, and room to grow.

Why Rural BPO Makes Sense in the Philippines

Access to Untapped Talent
Many rural and provincial cities have top-tier universities and training centers. Talented graduates often relocate to Metro Manila for work—but with local outsourcing, they can now build careers without leaving home.

Lower Costs
Choosing smaller cities comes with much lower setup and maintenance expenses—without compromising productivity.

Improved Work-Life Balance for Employees
Rural outsourcing creates job opportunities close to home, resulting in happier and more loyal employees.

Inclusive Economic Development
By investing in rural BPOs, companies support job creation and economic growth in underserved areas—helping to even out economic opportunities across the nation.

Major BPOs Are Going Regional

Many of the top BPO companies in the Philippines are scaling beyond Metro Manila with hybrid and regional models to tap into rural talent. Government backing and partnerships also encourage this trend, providing financial perks and logistical help in emerging regions.

The IT & Business Process Association of the Philippines website (IBPAP) has recognized the growth of “next-wave cities” as a strategic focus for sustainable BPO expansion.

The Bigger Picture for Global Outsourcing

Provincial expansion gives companies an edge. Companies that embrace this model can grow quickly, diversify teams, and ensure long-term sustainability.

As the question of “where to outsource next” continues to evolve, the rural shift proves it’s possible to do good while doing business.