The Business Process Outsourcing Sector in the Philippines: A Defiant Trend

Abstract

In recent years, Business Process Outsourcing (BPO) sector has become the pillar of the Philippine Economy because of its
contribution in terms of employment and financial returns. This study aims to understand why the sector has a strong
international competitiveness, even though the lack of competitiveness is generally admitted as the main hindrance for the
nation to achieve its economic development. Therefore, the paper sheds light on the main sources of the sector, which foster
its international competitiveness, by employing Porter’s Diamond model to the sector. The findings of the study are vastly
supportive of Porter’s hypothesis in diamond model. The paper concludes that the sector may keep its high competitiveness at
international level with some structural changes.