Ten days before Christmas falls upon the year 2008 and the Philippines has no reason to pout as boons are coming to the island archipelago’s IT outsourcing, business process outsourcing (BPO) and off-shoring industry sectors.

The Philippines has been having a fair year this 2008.

Despite the global financial crisis, the country floats– bouyed by the fact that last 2007, 25 leading contact center operators in the country reported USD 1.67 billion in aggregate revenues, as reported by the House of Representatives’ Committee on Information and communications technology.

This figure just reflects the size and the growing potential of the Philippines’ contact center sector, which is driving the broader business process outsourcing industry.

IT-enabled service industries have also been listed as a key driver of Philippine economic and employment growth.

Driven mainly by contact centers and back office contractors, the IT/BPO industries are expected to fully engage more than 920,000 employees and generate up to USD .2 billion in revenues annually by 2010, according to the Business Processing Association of the Philippines.

No wonder groups gathered at the recent BPO Summit Philippines 2008, such as the Animation Council of the Philippines Inc. (ACPI), Business Processing Association of the Philippines (BPAP), Contact Center Association of the Philippines (CCAP), Game Development Association of the Philippines (GDAP), Medical

Transcription Industry Association of the Philippines Inc. (MTIAPI), and Philippine Software Industry Association (PSIA) — are confident that the US economic recession and the election rhetoric of President-elect Barack Obama are unlikely to affect the booming BPO sector in the Philippines where it still makes business sense to outsource because the cost and quality of BPO work here is top quality.

Services that are low cost but top quality are the main attractive qualities that pull American companies to consolidate and move their work to the Philippines. Regarding the fiscal incentives offered by the federal government, there are voiced doubts that these incentives could beat the savings and quality of the work that American business can acquire if they outsource.

The savings from labor costs is the Philippines’ top quality that makes it among the top 30 global off-shoring destinations in a recent Gartner, Inc.’s report. It ranks high in the Asia-Pacific, along with India, China, Australia, Singapore and New Zealand.

Gartner judged the locations on criteria of language, government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy.

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  1. “After terror strikes on Mumbai, RP urged to brace for fresh outsourcing surge.” 12 December 2008. The Manila Bulletin. Accessed 13 December 2008. Link
  2. “RP among world’s top 30 offshoring sites – survey.”15 December 2008. Philippine Star. Accessed 15 December 2008. Link
  3. “RP’s top 25 contact centers report $ 1.67B in revenues.” 12 December 2008. The Manila Bulletin. Accessed 13 December 2008. Link
  4. Calimag, Melvin. “RP’s BPO groups unperturbed by US slump, Obama election.” 12 December 2008. The Manila Bulletin. Accessed 13 December 2008. Link


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