This study provides data on the market environment of SME’s in the Business Process Outsourcing Industry in Region 7 or the Central Visayas Region in the Philippines. The result of the environmental scanning activity done on the four provinces covered namely Bohol, Cebu, Negros Oriental and Siquijor. This presents not only the status of small & medium scale BPO companies in terms of supplier’s sustainability, customer satisfaction, competitor’s strategies and government support, but it also shows the other business opportunities and investment priority areas in the four provinces. An analysis of the external environmental factors affecting the business operations shows that the dominant factors affecting the businesses in Bohol are socio-cultural and demographic factors, while in Siquijor the development of businesses are mostly affected by legal and political factors. Cebu, and Negros Oriental businesses, however, are highly affected by technological factors despite the availability of infrastructure, since most of the BPO companies are relying on the Internet access to operate. External environmental factors are perceived to vary depending upon the nature of the sub sector and the location of the business within the region.