Raising the competitiveness of the Philippine outsourcing industry

The IT outsourcing and business process outsourcing markets

The outsourcing market has traditionally been divided into two major categories: IT outsourcing and business process outsourcing.

IT outsourcing focuses on farming out functions specific to an organization’s Information Technology group. This is an area that took off, especially during the dot-com boom and the 2001 economic slowdown, as multinationals found it an easy way to reduce costs. Activities range from Application Development and Support to Data Center and Infrastructure Management. Business process outsourcing focuses on farming out non-core, somewhat commodity functions common to most organizations (Call centers, Payroll, Payables and Receivables, etc.) and is sub-categorized into Voice-based and non Voice-based BPO.

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