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Economics Management The Economics of Business Process Outsourcing Table of Contents I. Overview of the BPO Industry in the Philippines 3-4 II. The Competitive Edge of the Philippine Labor Force 5-7 III. Definition of Business Process Outsourcing (BPO) 8 IV. Types of BPOs 9-11 V. Advantages of Outsourcing 12 VI. Disadvantages of Outsourcing 13 VII. Peoplesoft : An example of a BPO company in the Philippines 14-15 VIII. Conclusion 16 IX. Bibliography 17 X. Tables Table 1 Infrastructures for BPO Cross Country Comparisons 6 Table 2 Education, Governance, Cross Country Comparisons 7 Table 3 BPO Industry in the Philippines 2005/2006 9 XI. Figures Figure 1 Average Number of Workers Per BPO 9 XII. Appendices Appendix 1 Salary Range, Educational and Training Requirements 2006 18 Appendix 2 Summary of Philippine BPO Segments 19 I. Overview of the Business Process Outsourcing (BPO) Industry in the Philippines The Business Process Outsourcing Industry is one of the fastest growing industries as of date. (see Appendix 3 Page 20 for figures) International investment consultancy firm McKinsey & Co. predicts that the demand for outsourcing services will reach $180 billion in 2010, with the customer contact services, finance and accounting, and human resource sub-sectors taking up the biggest...

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