Thursday, September 15, 2011

SWOT: The Philippine outsourcing and offshoring industry

Here’s a SWOT analysis of the Philippine O & O industry:

1. Strategic location in Asia
2. Infrastructure well developed infrastructure, redundant and cost-effective telecommunications, and centrally located IT parks
3. Highly skilled labor force
4. Ample support from government and industry associations

1. Scarcity of labor
2. Commoditization of services non-core processes are easily learned and replicated by others
3. Disorganization of some sectors
4. High cost of power
5. International perception: political instability, red tape/bureaucracy, unclear policies on labor and land ownership

1. Infrastructure building capacity outside established hubs, or in emerging O & O centers, providing adequate and competent training, refining and enacting policies on data security and intellectual property rights
2. Emerging O & O segments in particular, the knowledge process outsourcing
3. Globalization

1. Labor migration and attrition
2. Emerging O & O providers


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