A global capability center (GCC) is a team that a foreign company runs itself, in another country, to do its own work. The company owns it, hires the staff, and keeps control of the data and processes. It is different from a call center run by a vendor.
The Philippines has a growing number of them. This guide covers how big the sector is, who is in it, how companies set one up, and what that means if you are looking for space in Metro Manila or Cebu.
A white paper from Colliers, IBPAP, and ZMG Ward Howell projects that Philippine GCCs will employ about 289,000 people in 2026, up from about 270,000 across roughly 200 centers in 2025, as reported by Outsource Accelerator on 8 Sep 2026. The 289,000 is a projection, not a count.
The wider IT-BPM industry (IT and business process management) earned a record $40.3 billion in export revenue in 2025 and employed 1.89 million people, per the same report. IBPAP, the industry association, expects $42.3 billion in revenue and 1.96 million workers by the end of 2026, according to the Manila Times on 15 Jul 2026.
The same briefing cut the 2028 outlook. The 2022 roadmap aimed for $59 billion. IBPAP now expects between $43.3 billion and $50.5 billion, and it points to AI and global competition as reasons.
Counts of GCCs differ. There is no official register, and Second Talent's directory notes that IBPAP's own figure has moved between 160 and about 200 in the past year. Offshore 24/7 quotes 170. Check the date and definition before you compare numbers.
SunStar Cebu, citing Colliers, reports that GCC office transactions rose 67% in 2025 from 2024, faster than other tenant groups.
Banks and financial firms make up most of the biggest centers. Second Talent's directory lists these headcounts. Dates vary, so check before you quote them:
Smaller centers include Northern Trust, Deutsche Bank, Trend Micro in Pasig, Canva, and Chevron in Makati, each with roughly 1,000 to 1,200 people or more.
Most of these centers handle finance, compliance, risk, procurement, HR, and security monitoring. India leads in software development, data work, and engineering, according to Beacon Filing's comparison. Beacon is an India-based company-formation firm, so read its view with that in mind.
A company has three common routes.
| Managed BPO | Captive GCC | Build-operate-transfer (BOT) | |
|---|---|---|---|
| Who owns the team | A vendor | Your own Philippine subsidiary | A partner first, then you |
| Time to start | 2 to 4 weeks | 16 to 24 weeks | Varies by provider |
| Cost structure | Monthly fee plus a vendor margin of 15% to 20% | Upfront setup, then direct payroll | Monthly fees, then a transfer to your entity |
| Best for | High-volume routine tasks | Larger teams with skilled work | Testing the market before committing |
The managed BPO and captive figures come from PITON-Global, a sourcing advisory that earns money from outsourcing deals. It estimates that a captive center costs about 25% less over three years once it passes roughly 250 staff, because there is no vendor margin. Treat that as a vendor estimate and test it against your own numbers.
In a BOT, a partner builds and runs the team, then hands it over to your own entity. Staff Domain, which sells this model, describes how it works. Ask any provider for its timeline and transfer terms in writing.
The CREATE MORE Act (Republic Act No. 12066) sets the incentives for export-focused companies. The text of the Act provides an income tax holiday of 4 to 7 years. After that, the company chooses between two options:
The Act also allows work from home for up to 50% of the total workforce without losing incentives. In April 2026, the Fiscal Incentives Review Board approved up to 90% work from home for ecozone firms during the national energy emergency, as Manila Bulletin reported. That measure is temporary. It runs for one year from 24 Mar 2026 unless the emergency is lifted or extended, per Malaya Business Insight. Companies must also keep their export revenue and employment levels.
Eligibility rules, such as the share of services a company must export, are detailed. Confirm them with PEZA or a Philippine tax adviser before you plan around them.
Administrative Order No. 45, signed in July 2026, lifts the seven-year moratorium on new PEZA IT parks and centers in Metro Manila. Colliers reports about 7.9 million sqm of PEZA-accredited office stock as of the first half of 2026, with 1.46 million sqm available for lease across Metro Manila. According to Outsource Accelerator, citing Colliers, about 496,000 sqm of that is in the Makati, BGC, and Ortigas business districts, where demand from multinationals is highest.
Demand is mixed. Office leasing transactions across Metro Manila and key provincial markets fell 24% year on year in the second quarter, and Colliers cut its 2026 forecast for net take-up to 300,000 sqm from 400,000, according to the Manila Times on 11 Aug 2026. Colliers still describes the market as slower but not contracting, per BusinessWorld. It also advises tenants with uncertain headcount to consider flexible and managed space.
Companies setting up a center must decide how much floor area to commit before they know their final team size. A fitted and operated office, often called a managed office, lets a team start in weeks and grow before signing a long lease. A traditional lease usually costs less per seat once the team is large and stable. The right choice depends on headcount, timeline, and how sure you are about growth.
Outside Metro Manila, Cebu holds about 31% of the provincial IT-BPM footprint, per SunStar and Colliers. The same report names Davao, Pampanga, Iloilo, and Bacolod as places where the next wave of GCCs is expected to grow.
The Philippines ranks 28th of 123 countries on the EF English Proficiency Index 2025, with a score of 569. Accounting and finance professionals scored 599, per EF's country fact sheet.
About half of Philippine GCCs were testing or using generative AI in production in 2025, according to the white paper reported by Outsource Accelerator. The same report says business analytics, machine learning, and AI roles are the hardest to fill. In Cebu, Ateneo's graduate business school has seen more companies sponsoring employees for MBA study.
Three risks come up in the sources.
If you are weighing a managed office, a serviced office, or a traditional lease in Metro Manila or Cebu, send us your target headcount, start date, and city. We will compare current options side by side and arrange viewings. If a lease is the wrong fit for your plan, we will say so.