<P> This set up is preferred when core or crucial business activities are needed to be run at cheaper costs . The rationale for employing such a setup is to cater to long term strategic plans involving high managerial control . In this case there are two major ways of setting up a captive market and these are the DIY or' Start From Scratch' model and the Build Operate Transfer model. This way, the business practices and operations are still run within and by the firm which mitigates risk of disclosure of sensitive information . In the Philippines you have examples of these set ups such as American Express, JP Morgan, Wells Fargo and the currently growing Capital One which are both American based multinational companies . </P> <P> The usual flow is for the company to develop all its resources in the new designated area or country of operations . This involves the beginning of the model which is the purchasing of property and equipment and due diligence lasts up to the point of running the BPO center itself . The acquisition of property and equipment is done by contacting a third party liaison in the country of operation . This model is preferred by the companies that have high levels of market knowledge and analytics . </P> <P> In this model, the practice is to contact a 3rd party vendor in order to develop a contract in which the vendor is the one who develops the property, sources the employees and manages the BPO center for the first designated period or amount of time . After which the company who contracted the vendor comes in and takes over the operations . The common practice is to have managerial and training staff of the company join at some midpoint of the period of the vendor's development to have specialized training in order for the employees to meet company standards. This model is preferred by companies that do not have any specialized expertise in the new country of operations hence needing a local partner or vendor to assist with market entry strategies . </P> <P> With the Philippines being the 39th largest economy in the world, the country continues to be a promising prospect for the BPO Industry . Just in August 2014, the Philippines hit an all - time high for employment in the BPO industry . From 101,000 workers in 2004, the labor force in the industry has grown to over 930,000 in just the first quarter of 2014 . </P>

Foreign companies that have outsourced or offshored investments in the philippines