The Study On The Philippine Business Process Outsourcing And IT Services Industry

The Philippines has witnessed high unemployment amidst low economic growth for the last 25 years or so. The Philippine manufacturing sector developed slowly, and the share in employment of this sector remained virtually unchanged all these years ,despite some period of moderate economic growth.So the Philippine' capacity to create enough jobs for its growing labor force was weak, and limited jobs for increasing labor force have led to the lingering unemployment problem. In the 2006 Workforce Development Summit, the government identified the nine key employment-generating sectors including the Business Process Outsourcing and IT Services (BPO-ITS) industry. The sector has been hailed by the government as having huge potential for generating employment in the future. And the sector was estimated to account for only 0.075% of GDP in 2000 but increased to 2.4% in 2005. From this we can see this industry is very important for the employment-generating and the performance of the economy in the Philippines. And the Philippine benefits much from this expanding sector.Against this background, the paper aims to explore the status of BPO-ITS industry in the Philippine, as well as to make comparisons with India. Finally, it gives some experience for China.The innovation of this thesis lies in making research on the Philippine BPO-ITS industry solely through a lot of materials and statistics.The opening section of this paper is to introduce the basic concepts and theories concerned of BPO-ITS and the practice of global BPO-ITS. Section II studies the main fields of BPO-ITS industry, and their development status in the Philippines. Section III discusses effects of the BPO-ITS industry on the improvements of services industry and industrial structure changes as well as the growth of the economy. Section IV makes comparisons with India. The last section summarizes the experiences and challenges of BPO-ITS industry in the Philippines, and its experience and useful lessons for the development of BPO-ITS industry in China is also noted.