With the Philippines currently the third outsourcing destination in the world and ranks second outside of North America, revenues are doubled every year since 2001. The industry is targeting to increase its global market share, creating a total direct employment of close to a million by 2010 (equivalent to approximately about 3.6 million square meters in office space). With this backdrop, this paper provides an update on the Philippine O&O industry’s performance, growth factors and the challenges and concerns it is currently addressing to sustain and improve its lead standing in the global market.