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Sustaining Philippine Advantage in Business Process Outsourcing


  • Ceferino S. Rodolfo



This study looked at the sustainability of the growth and development of business process outsourcing (BPO) in the Philippines. It was prompted by the sectors spectacular growth in several of its subsectors, mainly contact call centers, medical transcription, animation, and software development. Doubts about the sustainability of this hypergrowth situation are increasingly being felt, as the industry experiences difficulties in meeting the demands of the marketspecifically, the countrys ability to supply the skilled workforce. In addressing sustainability, the government will have to grapple with several important issues, such as the main drivers of the BPO phenomenon, the size of the global BPO market, and the competiveness of the Philippines as a BPO location. These questions were directly addressed by the study. Only after these issues have been addressed can policymakers provide broader and longer term directions for the industry, specifically on : (1) whether the present level of priority given to BPOs is appropriate and consistent with national economic goals or should the government instead prioritize other sectors, and (2) whether the countrys educational system should be aligned with the goals of enhancing the competitiveness of the BPO industry, and the consequences of this educational thrust on other strategic sectors of the economy.

Suggested Citation

  • Ceferino S. Rodolfo, 2005. "Sustaining Philippine Advantage in Business Process Outsourcing," Development Economics Working Papers 22691, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:22691

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    References listed on IDEAS

    1. Cororaton, Caesar B. & Cockburn, John & Corong, Erwin, 2005. "Doha scenarios, trade reforms, and poverty in the Philippines," MTID discussion papers 86, International Food Policy Research Institute (IFPRI).
    2. Cororaton, Caesar B., 2003. "Analysis of Trade Reforms, Income Inequality and Poverty Using Microsimulation Approach: The Case of the Philippines," Discussion Papers DP 2003-09, Philippine Institute for Development Studies.
    3. Cabanilla, Liborio S. & Rodriguez, U-Primo E., 2006. "The Impact of a Philippine-US FTA: The Case of Philippine Agriculture," Discussion Papers DP 2006-06, Philippine Institute for Development Studies.
    4. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, March.
    5. Warwick. J. McKibbin, "undated". "Quantifying APEC Trade Liberalization: A Dynamic Analysis," Discussion Papers 122, Brookings Institution International Economics.
    6. Cabalu, Helen & Rodriguez, U-Primo, 2007. "Trade-offs in Trade Liberalization: Evidence from the Philippine 2005 Tariff Changes," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 637-663.
    7. U-Primo E. Rodriguez & Liborio S. Cabanilla, 2006. "The Impact of a Philippine-US FTA : The Case of Philippine Agriculture," Development Economics Working Papers 22693, East Asian Bureau of Economic Research.
    8. repec:phd:dpaper:pn_2005-05 is not listed on IDEAS
    9. Cororaton, Caesar B., 1994. "Structural Adjustment Policy Experiments: The Use of Philippine CGE Models," Discussion Papers DP 1994-03, Philippine Institute for Development Studies.
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    More about this item


    Business Process Outsourcing; Philippines; development; education;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • L80 - Industrial Organization - - Industry Studies: Services - - - General


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