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The Philippines in the ITO Segment

by: Sarah Joson

Monday, February 18, 2013 | Outsourcing News |

The Philippines is said to be emerging as one of the key players in the information technology outsourcing (ITO) sector wherein India is the frontrunner.

According to a report by the Industry Development of the Information and Communications Technology Office of the Department of Science and Technology, the cost of outsourcing IT processes to the Philippines is one of the lowest globally. The country also has the third largest pool for IT work in the Asia-Pacific region.

Meanwhile, industry analysts said in order for the Philippines to continue or maintain its growth rate, the government should reinforce the educational system and upgrade infrastructure.

Furthermore, the IT-Business Process Outsourcing (BPO) roadmap 2011-16 released by the government in November 2011 expects the industry to reach $25bn in 2016 and boost employment opportunities for Filipinos to 1.3M. At present, BPO accounts for majority of the revenues, but ITO is anticipated to contribute nearly $2bn by 2016.

IT and outsourcing consultancy firm Tholons included the Philippines in the top 100 ITO hubs list, which underpins the country’s position as a leading ITO hub.


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