Introduction to Business Process Outsourcing
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Questions and Answers

What is the primary focus of the IT-BPM industry in the Philippines?

  • Real estate development
  • Information technology and business process management (correct)
  • Manufacturing goods
  • Agricultural production

    • Which of the following is not a reason why companies choose to outsource?

  • Focus on core business activities
  • Cost reduction
  • Access to specialized expertise
  • Increased control over operations (correct)

    • Which type of activity is least likely to be outsourced?

  • Accounting and finance
  • Core product design and development (correct)
  • Customer support services
  • Human resources management

    • What is one potential disadvantage of outsourcing?

    <p>Potential loss of control over service delivery</p> Signup and view all the answers

    Which of the following sectors is considered a key player in the employment generation of the IT-BPM industry in the Philippines?

    <p>Information technology</p> Signup and view all the answers

    What challenge does the IT-BPM industry face in the Philippines?

    <p>High competition in global markets</p> Signup and view all the answers

    How can the IT-BPM industry contribute to the growth and development of the country?

    <p>By generating employment opportunities</p> Signup and view all the answers

    What is typically included in the functions that companies outsource?

    <p>Marketing and sales operations</p> Signup and view all the answers

    What is the primary focus of the initiatives in the IT-BPM sector of the Philippines?

    <p>Widening and deepening human capital through partnerships</p> Signup and view all the answers

    Which action area aims to improve the Philippines' attractiveness as an investment destination?

    <p>Strengthening investment through advocacy activities</p> Signup and view all the answers

    Which service category contributed the most to the local BPO industry in terms of employment?

    <p>Voice-based services</p> Signup and view all the answers

    As of 2010, how did the Philippines rank in voice-based services compared to India?

    <p>Leading provider and overtook India's standing</p> Signup and view all the answers

    What percentage of total revenues in the BPO sector in 2011 was generated by voice-based services?

    <p>67%</p> Signup and view all the answers

    Which of the following BPO service areas is gaining growth alongside voice-based services?

    <p>Animation and software development</p> Signup and view all the answers

    What is one of the action areas related to achieving the Roadmap 2016 goals?

    <p>Leading cross-sectoral efforts</p> Signup and view all the answers

    Which attribute significantly contributes to the global foothold of the Philippine IT-BPM industry?

    <p>The strong skills of the Philippine labor force</p> Signup and view all the answers

    Which of the following is NOT a component of the quality standards mentioned?

    <p>Cultural understanding</p> Signup and view all the answers

    What is emphasized as a significant challenge for the BPO industry?

    <p>Providing skilled personnel</p> Signup and view all the answers

    Which of the following statements best reflects the opportunity presented by the BPO industry?

    <p>It encourages personal and professional growth.</p> Signup and view all the answers

    What is the primary goal of the Philippine IT-BPM Roadmap 2022?

    <p>To accelerate the growth of the IT-BPM industry.</p> Signup and view all the answers

    Which statement aligns with Senator Mirriam Defensor-Santiago's perspective on the BPO industry?

    <p>Meeting international standards is crucial.</p> Signup and view all the answers

    What issue did the Y2K problem primarily involve?

    <p>Misrepresentation of four-digit years as two digits</p> Signup and view all the answers

    Which of the following is NOT listed as a type of outsourced activity provided by the Philippines?

    <p>Manufacturing services</p> Signup and view all the answers

    What was a significant factor that led to the increase in outsourcing in the late 1990s?

    <p>The Y2K problem requiring IT solutions</p> Signup and view all the answers

    Which issue could potentially arise from the Y2K problem?

    <p>Incorrect ordering of automated records</p> Signup and view all the answers

    What is Knowledge Process Outsourcing (KPO)?

    <p>Outsourcing that requires specialized knowledge</p> Signup and view all the answers

    Which of the following best describes the opportunity landscape for IT-BPM experts in the Philippines?

    <p>They have opportunities in various specialized areas of outsourcing.</p> Signup and view all the answers

    Why did companies outsource IT processes to countries like India in the late 1990s?

    <p>To successfully manage the Y2K problem</p> Signup and view all the answers

    What was a common misconception about the Y2K problem?

    <p>It was a hoax and had no real impact.</p> Signup and view all the answers

    What recognition did the Philippine IT-BPM industry receive in 2010?

    <p>Named #1 in business process outsourcing service</p> Signup and view all the answers

    What was projected about the global offshoring services market by 2016?

    <p>It was expected to double in size</p> Signup and view all the answers

    How much revenue was the Philippine IT-BPM industry expected to generate by 2016?

    <p>$25 billion</p> Signup and view all the answers

    What was the expected employment figure for the Philippine IT-BPM industry by 2016?

    <p>1.3 million individuals</p> Signup and view all the answers

    What is a unique characteristic of Offshoring and Outsourcing (O&O)?

    <p>It is a recent development in the business industry</p> Signup and view all the answers

    How has the Philippine IT-BPM industry been described recently?

    <p>As a major player in the global IT-BPM</p> Signup and view all the answers

    What was a significant opportunity mentioned for the Philippine IT-BPM industry?

    <p>To capture a bigger share of the global market</p> Signup and view all the answers

    Which organization recognized the Philippine IT-BPM industry in 2010?

    <p>UK’s National Outsourcing Association</p> Signup and view all the answers

    Study Notes

    Introduction to Business Process Outsourcing

    • The IT-BPM industry is a significant sector in the Philippines, providing extensive employment opportunities and demonstrating strong growth.
    • Key learning objectives include defining outsourcing, identifying reasons for outsourcing, listing outsourced functions, and discussing advantages and disadvantages of outsourcing.

    IT-BPM Industry Snapshot in the Philippines

    • The Philippines excels in voice-based services and is a leading provider in the global IT-BPM sector.
    • The industry's growth is supported by the Information Technology and Business Process Association of the Philippines (IBPAP) through advocacy for policy reforms for skills development and a competitive environment.
    • Major initiatives focus on enhancing human capital, making the country appealing to investors, achieving strategic roadmap goals, and promoting the Philippines' IT-BPM brand globally.
    • As of 2010, the voice-based services sector provided 493,000 direct jobs and generated $7.4 billion in revenue, accounting for 64% and 67% of the local BPO industry respectively.

    Types of Outsourced Activities

    • Key areas of outsourcing include:
      • Contact centers
      • Back-office services and Knowledge Process Outsourcing (KPO)
      • Software development
      • Animation and game development
      • Engineering design

    Challenges and Opportunities in the IT-BPM Industry

    • Consistent quality in skills and professionalism among local workforce is a challenge, presenting opportunities for improvement and training.
    • The global offshoring services market is projected to continue its expansion, with the IT-BPM sector having the potential to generate $25 billion in revenue and employ 1.3 million individuals by 2016.

    Impact of Outsourcing on the Philippines

    • Outsourcing is a transformative strategy for companies, allowing them to operate on a global scale and focus on core competencies.
    • The Y2K problem marked a pivotal point in the rise of outsourcing, with many companies seeking IT support to manage the transition to the year 2000.
    • The Philippine IT-BPM industry remains crucial for national growth and development, helping individuals and the economy thrive by providing diverse employment and career paths.

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    Description

    Explore the significance of the IT-BPM industry in the Philippines, its growth, and the employment opportunities it creates. This quiz covers essential topics such as the definition of outsourcing, its advantages and disadvantages, and key insights into the country's leading role in voice-based services.

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