Early morning in Perth, a customer waits on hold with their telecommunications provider about a billing issue, while in Sydney, another calls an internet company after a service outage. Across Australia, thousands of routine calls are made every day; often without customers realising the person assisting them may be in Manila, Cebu, or Pampanga.
There is also Melbourne lawyer Max, who says much of his legal administrative work is handled remotely by his assistant in the Philippines, sharing with this writer how integrated Filipino professionals have become into Australian businesses.
The voices may sound reassuring – calm, patient, knowledgeable, fluent in English – but behind them is an industry that has transformed the economic ties between Australia and the Philippines.
From outsourcing hub to strategic workforce partner
What began in the late 1990s as a cost-driven shift into offshore call centres evolved into a long-term workforce partnership. As business costs rose and demand for customer support grew, Australian companies turned to the Philippines for its skilled English-speaking workforce and reputation for customer service.
Government support accelerated the industry’s growth through agencies such as the Philippine Economic Zone Authority (PEZA), which expanded special economic zones, introduced investor incentives, and promoted foreign investment in outsourcing and digital services.
A key figure in this development was former PEZA Director General Lilia de Lima, regarded as an architect of PEZA’s expansion and the Philippines’ rise as a global outsourcing hub. Her leadership from 1995 to 2016 positioned the country as one of the world’s leading outsourcing destinations, alongside industry groups such as the IT & Business Process Association of the Philippines (IBPAP), which helped professionalise and promote the sector internationally.
By 2004, the Philippine business process outsourcing (BPO) industry had grown into a US$1.3 billion sector employing more than 101,000 workers. It later expanded beyond customer service into finance, healthcare information management, software development, legal process outsourcing, and back-office administration.
Meanwhile, Australian companies in telecommunications, banking, insurance, utilities, and travel increased operations across the Philippines, drawn not only by cost efficiencies but also by the Filipino workforce’s adaptability, sense of malasakit (empathy and care), and positive rapport with Australian customers.
By 2019, the industry employed around 1.3 million Filipinos and generated approximately US$26 billion in annual revenue, making it one of the Philippines’ major growth drivers.
The Panga Era and the shift toward digital services
The COVID-19 pandemic propelled the industry’s transformation as remote work became standardised across global businesses.
Since becoming PEZA Director General in 2023, Tereso O. Panga has championed efforts to expand the Philippines’ Information Technology and Business Process Management’s (IT-BPM) industry beyond traditional call centres into higher value sectors, including fintech, healthcare information management, cybersecurity, data analytics, AI-enabled services, and digital transformation.
By 2025, the Philippine IT-BPM’s industry has hit a record US$40 billion in annual revenue and employing around 1.9 million full-time workers, solidifying the country’s position as a leading outsourcing and digital services hub.
The government has also enhanced industry competitiveness through policies like Republic Act 11927, supporting digital capability and English-language training.
Strengthening Australia–Philippines business ties
The two countries’ partnership was front and centre at the Philippine Business and Investment Forum held on 21 May 2026 at the Melbourne Convention and Exhibition Centre (MCEC), where Australian and Philippine business leaders convened to strengthen business ties.
Leading the Philippine mission was Panga himself, whose visit reflected the Philippines’ push to deepen commercial relations with Australia and position itself as a strategic partner in emerging digital industries.
Panga highlighted benefits under the CREATE MORE Act (Republic Act No. 12066), which enhance fiscal and non-fiscal incentives, lower corporate taxes, and streamline regulations to attract foreign and domestic investment.
With robust industry growth already underway, IBPAP’s IT-BPM Industry Roadmap 2028, which targets US$59 billion in annual revenue and 2.5 million full-time employees by 2028, appears well on track.
Supporting these efforts was Vice Consul Commercial and Special Trade Representative Emmanuel W. Ang of the Philippine Trade and Investment Centre in Sydney, whose office has played an active role in advancing Philippine trade and investment opportunities across Australia.
At the diplomatic level, Consul General Jesus R.S. Domingo of the Philippine Consulate General in Melbourne emphasised that long-term business partnerships are still built on relationships. He also announced the launch of the Philippine Business Diplomacy Forum, a monthly initiative aimed at sustaining engagement between Australian and Philippine business leaders.
Australian businesses speak from experience
The forum also gave Australian business leaders an opportunity to share practical insights with fellow attendees on why the Philippines continues to be a preferred outsourcing destination.
The discussion, led by Matchboard Managing Director Sharon Melamed, pointed to advantages already recognised by major organisations, including Optus, BUPA, and NBN.
Beyond cost efficiencies, they noted the Philippines’ skilled English-speaking workforce, cultural compatibility with Australia, time zone alignment, accessibility, and strong staff retention as reasons companies continue to expand operations there.
Their real-world perspectives grounded the broad diplomatic and economic discussions in business realities, illustrating how Filipino professionals have become embedded in the operations of Australian companies.
Australia in business
The forum showcased the opportunities of Filipino expertise within Australia’s economic landscape.
The Filipino professionals assisting Australians daily are now deservedly recognised not only for service delivery, but also for innovation, professionalism, and long-term partnership.
As Australia’s economy becomes more connected across the region, the Philippines is no longer simply part of Australia’s offshore workforce – it is becoming part of how Australia does business.
