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IT Business Process Outsourcing (BPO) Strategy as a New Development Strategy in Emerging Countries: Focusing on the Philippine IT-BPO Industry and Lewis Turning Point Theory

In: Base of the Pyramid and Business Process Outsourcing Strategies

Author

Listed:
  • Takabumi Hayashi

    (Rikkyo University)

Abstract

The Philippines, as an emerging and developing country, has been struggling with the expansion of the so-called Bottom of the Pyramid (BOP) population that mainly stays in rural areas. One of the problems is that, the employment ratio in the manufacturing sector to the total number of workers in the Philippines remains stagnant in a single digit, as described below. On the other hand, the IT-Business process outsourcing (IT-BPO) industry, which belongs to the services sector, has been rapidly increasing its share of GDP and the employed population. In this paper, the author examines the fact that the number of poor people has decreased relatively and absolutely since 2012 from the perspective of the IT-BPO industry as the formal sector. It also still holds the problems of surplus labor in the informal sector mainly in the rural areas. These issues are discussed in line with the original argument of “Lewis turning point” (Lewis, 1954).

Suggested Citation

  • Takabumi Hayashi, 2023. "IT Business Process Outsourcing (BPO) Strategy as a New Development Strategy in Emerging Countries: Focusing on the Philippine IT-BPO Industry and Lewis Turning Point Theory," Springer Books, in: Takabumi Hayashi & Hiroshi Hoshino & Yoshie Hori (ed.), Base of the Pyramid and Business Process Outsourcing Strategies, chapter 0, pages 141-160, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-8171-5_7
    DOI: 10.1007/978-981-19-8171-5_7
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