'Cost and scale are two important factors when companies look to outsource offshore. India and the Philippines are blessed in numbers,' said Shahabuddin, referring to the number of skilled workers available in both countries.

According to NASSCOM, the entire outsourcing industry ' including India and the Philippines ' is addressing only about 10 percent of the potential market.

NASSCOM reported US$6.3 billion in IT-enabled services (ITES) and BPO exports in the recent fiscal year ending March. According to industry figures, the ITES/BPO sector in the Philippines generated $2.4 billion in 2005, employing some 160,000 workers.

NASSCOM and BPA/P signed a memorandum of agreement to work together in seven strategic areas: strategic communications, geographic risk mitigation, shared best practices and adherence to international standards, data security and privacy, workforce development, collaboration and cooperation and infrastructure improvement.