Newsletters

Customer Support:   (972) 395-3225

Home

Articles, News, Announcements - click Main News Page
Previous Story       Next Story
    
The Philippines: Asia's Next Economic Tiger
Submitted by Jim Loveless, TeleDevelopment Services, Inc.

February 25, 2015

The Philippines: Asia’s Next Economic Tiger

With the Philippines sitting comfortably at first place as the leading call center destination in the world for voice calls, what new developments can the global call center community expect from the Southeast Asian gem in 2015?

Sustainable Economic Growth

It’s no surprise that analysts are all saying the same thing: The Philippine economic growth will remain strong, thanks to the remittances from Overseas Filipino Workers (OFWs) and the continued rise of the Information Technology and Business Process Management (IT-BPM) industry.

Even the prominent economic advisor Dr. Bernardo M. Villegas, Ph.D, has reiterated at this year’s International Contact Center Conference & Expo (ICCCE) that the Philippines’ economic growth will continue at a rate of six to seven per cent. Through President Benigno Aquino III’s leadership and good governance, the country is experiencing a slow yet steady fight against corruption, and international agencies are upgrading the country’s credit rating, thereby improving investors’ interest in the country. The improved credit rating will allow the country to build better infrastructures, which will in turn address the transport and logistical challenges currently crippling the country’s economy.

Rise of the Next Wave Cities

As more and more companies are turning to Manila and Cebu for more than just call center work, the country’s BPO superstar cities are becoming even more congested and crowded. Both industry leaders and the government have been realizing that it’s time to develop globally preferred outsourcing locations outside Metro Manila. Putting the spotlight on the countryside will hopefully allow the country to build more IT-BPM hubs and initiate more talent development activities through the Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), and the Information and Communications Technology Office of the Department of Science and Technology (DOST-ICTO).

Regional Economic Integration

This year, the Asia-Pacific Economic Cooperation’s (APEC) goal is to implement the ASEAN Economic Community (AEC) by the end of 2015. This is terrific news for the Philippines’ IT-BPM industry since the AEC can radically change how the country develops human resources and improve infrastructure and communications connectivity. An integrated economic community can open up doors for all member Southeast Asian nations, as well, in terms of goods, services, investment, skilled labor and capital.

Drive for Change

Every year, BPOs enjoy various fiscal and non-fiscal incentives as well as ready-to-occupy business locations in world-class economic zones and IT parks in the country. While these incentives have proven to be very enticing, there are members of the IT-BPM industry that feel that government should and must provide a systematic, regulatory environment that does not stifle the industry’s growth.

Thus, for the IT and Business Processing Association of the Philippines (IBPAP), the Philippines’ primary IT-BPM enabler, the industry’s priorities for 2015 will include the protection of tax incentives and the petition for a holiday policy that will eliminate or reduce the implementation of additional Philippine holidays that can cost the industry Php 70 million a day in holiday pay.

The Bottom Line

Favorable developments implemented by past governments have catapulted the Philippines to become one of the world’s best outsourcing destinations in the world. The Q1 of 2015 alone is already presenting opportunities for the Philippine economy to follow an upward rising growth trajectory: From this year’s APEC summit to continued collaboration between the government and the industry, all signs point to a very promising year ahead!

TeleDevelopment Services, Inc. (TDS) is an end-to-end BPO support provider with offices in the Philippines and the USA. If you would like to learn more about TDS and its BPO solutions, visit http://www.teledevelopment.com or send an email to jloveless@teledevelopment.com

 
Return to main news page