To maintain leadership in IT-BPO: Don’t be complacent, experts tell Phl

MANILA, Philippines - Major players in the information technology–business process outsourcing (IT-BPO) industry were urged not to be complacent to preserve the ranking of the Philippines as the world’s number one provider of voice services and the second-most–preferred destination for non-voice, complex services.

Guillermo Luz, Private Sector Co-Chairman of the National Competitiveness Council, gave an overview of competitiveness reports that serve as diagnostic tools to track where the Philippines is vis-à-vis its neighbors in a recently held forum titled “Great Expectations: Strengthening Investor Confidence and IT-BPO Growth.”

According to the Global Competitiveness Report 2012 by the World Economic Forum, red tape is still present in different processes, from construction permits to starting and setting up businesses.

 “We are competing for our own people. We are offering those jobs with great pay for our people. Hopefully, we can achieve that here (in the Philippines),” he said.

According to the survey, another growing concern is the appreciation of the peso as the local currency breached the 39 to $1 level  over the past few weeks.

Survey respondents also noted the need to highlight the Philippines’ marketability and capabilities. They also viewed the Philippines as a less risky investment destination than China and India, its closest competitors.

For his part, MediCall Philippines Inc. head of medical management operations Jeff Williams said other issues affecting the industry include incentives, policy, regulatory developments, talent, global rank, and the investment climate.

 “India and the Philippines are considered to be ‘mature.’ But there are other countries looking into dislodging the Philippines. We need to make sure we are doing the right thing, be aware that we cannot afford to be complacent, work even extra harder, get the right message across, and put proper things into place,” he stressed.

A study by World Bank and the International Finance Corporation (IFC) entitled “Doing Business 2013” showed that the Philippines ranked 138 out of 185 economies surveyed, down from its global rank of 136 in 2012 and 134 in 2011.

Influential private-sector analyst Gartner said the Philippines may be part of the sourcing strategy for contact centers, but raised concern over rising costs, data privacy, and security.

While panelists expressed the need for a more investor-friendly environment, they agreed that investors should also be willing to work with industry associations, the academe, and the government to maximize the potential of the IT-BPO industry.

In order to achieve the industry’s Road Map 2016 goals of 1.3 million direct jobs and $25 billion in revenues, Business Processing Association of the Philippines (BPAP) executive director Gigi  Virata stressed the need to address the talent supply gap through talent development programs to meet the industry’s growing demands.

James Donovan, president and chief executive officer of the ADEC Group, said there is a need for the industry to come up with the finished product, craft solutions, develop IT-manpower, and processed capability to effectively deliver solutions to the customers.

“Why aren’t we crafting solutions to compete with multinationals that set up a business here in the country and use Philippine talent to create solutions for their customers? Why aren’t we taking a proactive step in going up the value chain in BPO?” he asked.

BPAP vice chairman Dan Reyes, for his part, reiterated that the players in the country’s IT-BPO should never be complacent.

“The stage is set but we need to be very careful to not become complacent,” Reyes said.