Economic performance of the business process outsourcing industry in the Philippines /

Quintanilla, Krizelle W.

Economic performance of the business process outsourcing industry in the Philippines / by Krizelle W. Quintanilla. - Indang, Cavite : Cavite State University-Main Campus, 2015. - xv, 89 pages : illustrations ; 28 cm.

Thesis (BS Economic--Business Economics) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS) College of Economics, Management, and Development Studies (CEMDS)

QUINTANILLA, KRIZELLE W. Economic Performance of the Business Process Outsourcing Industry In The Philippines. Undergraduate Thesis. Bachelor of Science
in Economics, major in Business Economics, Cavite State University, Indang, Cavite. April 2015. Adviser: Ms. Maria Soledad M. Lising.

This study was conducted in the Philippines ffom October to December 2014. It aimed to determine the economic performance of the business process outsourcing industry in the Philippines. Specifically, the study aimed to determine the (1) trend of business process outsourcing industry in the Philippines ftom 1999-2013; (2) trend of selected economic variables namely: employment, cost of labor, revenue and export in business process outsourcing industry by category in the Philippines 1999-2013; (3) percentage share of employment generated from business process outsourcing to total employment in the Philippines; (4) percentage share of cost of labor from business process outsourcing industry by category in the Philippines; (5) percentage share of revenue from business process outsourcing industry by category in the Philippines; (6) percentage share of export from business process outsourcing industry to the total export In the service sector; (7) relationship between revenue and selected variables namely: employment, cost of labor, and export in business process Outsourcing industry in the Philippines; and (8) project the value of selected variables namely: employment, cost of labor, and revenue export in business process outsourcing industry by category in the Philippines from 2015-2019.

The study revealed that the trend of BPO and selected variables were increasing from 1999 to 2013. The data showed the trend analysis of selected variables such as
employment, cost of labor, revenue, and export ftom 1999 to 2013. The BPO shared an average of 300,267 employees or 1 percent of the total employment in the Philippines from 1999 to 2013. In terms of the cost of labor and revenues generated, contact center, software development, and other BPOs were the top three largest contributors among the five categories of the BPO industry. Contact center contributed an average of 62.50 percent, software development contributed 17.99 percent and the other BPOs contributed 17.66 percent to the cost of labor from 2003 to 2013. Furthermore, contact centers contributed an average of 44.44 percent, other BPOs shared an average of 27.04 and software development contributed 26.04 percent to the revenue of the total industry from 1999-2013. Moreover, the BPO industry had an average percentage share of 37.77 percent to the total export from service sector in the country.

Using regression analysis, the results showed that revenue had a_ significant positive relationship to employment and exports in the BPO industry while the cost of labor had a negative relationship to revenue. The null hypothesis that there is no significant relationship between revenue and the selected variables was rejected. Moreover, the selected variables were forecasted to increase for the next five years from 2014 to 2018.



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658.723 / Q4 2015
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