Data processing services include data encoding services and analog-digital records transcription services. According to the Philippine Information Technology and E-Commerce Council and the Philippine Medical Transcription Industry Alliance, the U.S. medical records transcription industry alone posted gross revenues of approximately US$25.0 billion in 2002 and since then has been growing at an average annual rate of approximately 15.0%. Only 47.0% of these revenues were generated through outsourcing. According to the Philippine Government, Philippine companies accounted for approximately US$40.0 million of the gross revenues of the U.S. medical records transcription industry in 2001 but are projected to account for up to US$483.0 million in 2004, representing an average annual growth rate of approximately 130.0% during the period. Moreover, activity in this industry has surged in recent years as thousands of American hospitals have been hastening to comply with a U.S. federal deadline for converting existing medical records into digital format.

 

According to BoI, annual gross revenues of the Philippine software industry were approximately US$115.0 million in 2001 and are projected to reach US$268.0 million in 2004, representing an increase of approximately 133.0% during the period. According to DTI, 42 Philippine companies were engaged in software R&D in 2002, but a recent survey suggests that there may be as many as 60 Philippine companies in this industry today . DTI estimates that switching to a Philippine provider could save foreign companies approximately 35 .0% to 50 .0 % of their application, software and system R&D costs.

Professional Support Services

According to BoI, approximately 100,000 Philippine students graduate from business administration and commerce degree programs at Philippine universities each year – yet they face a weak domestic job market. Accordingly, we believe that Magellan Solutions could access this English-speaking and highly-educated, yet relatively cost-effective, labor pool to support the provision of offshore solutions for North American accounting, auditing and financial services firms. Similarly, Magellan Solutions could access the Philippines ' deep and relatively cost-effective talent pool in the legal and medical services fields to support the provision of offshore solutions for corresponding North American industries.

Applied engineering services include a broad range of product R&D and design services for businesses, through the application of engineering and state-of-the-art technologies, including computer aided design ( CAD ) software applications. Specific activities include component design, instrumentation design, architectural modeling, construction modeling, prototype modeling and assembly drawings (for patent applications). Offshore solutions for applied engineering services are another fast-growing segment of the offshore BPO solutions industry in the Philippines .