Business process outsourcing (BPO) is the leveraging of technology or specialist process vendors to provide and manage an organization's critical and/or non-critical enterprise processes and applications. It includes IT-related activities such as application management and application development, data center operations, testing and quality assurance, financial and administration (F&A) processes, human resources (HR) functions, call center and customer service activities and accounting and payroll.

Majority of BPO Activities are into Database Activities and On-line Distribution of Electronic Content

1. The 2006 Census of Philippine Business and Industry covered a total of 13,199 establishments engaged in Real Estate, Renting and Business Activities (Sector K); and 6,032, in Other Community, Social and Personal Service Activities (Sector O). About 1,445 or 7.5 percent of the two sector's total number of establishments (19,231) were engaged in Business Process Outsourcing (BPO) Activities.

2. Establishments engaged in Database Activities and On-line Distribution of Electronic Content comprised the majority with more than three-fifths (897) of all BPO industries. Establishments engaged in Other Software and Consultancy and Supply and Other Computer Related Activities placed second and third with 175 (12.1%) and 149 (10.3%) respectively. On the other hand, Hardware Consultancy accounted for the least number, with only three establishments (0.2%). Figure 1 shows the distribution of BPO establishments by industry sub-class.