Philippine Government Supports the Outsourcing Industry

Aside from the wide support gained by the outsourcing industry from foreign and local business entities, the Philippine government is providing technical and financial assistance to the industry. In the 2006 State of the Nation Address (SONA) made by former President Gloria Macapagal Arroyo, she mentioned her “Ten-Point Agenda” that focuses on the improvement of the Outsourcing and Offshoring Industry to improve the economic status of the country.

It includes the attempt to establish a Philippine Cyber Corridor (PCC), an interconnected center of technology-related services that will spread itself across the country. Included in this Information and Communications Technology (ICT) belt are outsourcing companies that provide Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), medical transcription, and software development. The corridor will serve as a home for this industry that will cater to foreign and local outsourcing businesses.

During the 2006 State of the Nation Address (SONA) where the “Super Regions” was discussed, the President declared seven areas as Tier 1. This will provide Metro Manila and the  University Belt with high-speed Internet connectivity and powerful online networks.. The coverage of the project will range about 600 miles from the city of Baguio all the way to Zamboanga, focusing on new wave cities like Sta. Rosa, Legaspi, Naga, Tagbiliran, Tacloban, Dumaguete, and Bacolod.  Cebu and Subic Clark were also mentioned in addition to 20 more areas that were identified as potential ICT centers in the country.

The project aims to connect the countryside and isolated regions of the country and encourage more investments in the fields of Information Technology and communications. Primarily, it will host a number of contact centers and outsourcing companies around the country while identifying other potential locations for further growth of the outsourcing industry.

In 2006, the outsourcing industry was able to employ 244,000 workers for ICT- related jobs, and is expected to increase in the next five years. Through the Philippine support for the outsourcing industry, the country is beginning to now recognized worldwide for its quality service and performance in the field of outsourcing.

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