Philippines BPO dominance is facing a strong challenger: China.
This coupled with President D’s anti western tirades; local security issues such as the resorts world tragedy and the Marawi ISIS attack, and the new tax program that, for the longest time, was ambiguous on whether the VAT incentive enjoyed by BPO’s will be retained or not (don’t worry – the incentive was not altered).
Rey Untal, IT and Business Process Association of the Philippines president and CEO
“We need to put our act together, other countries know how big this IT business process outsourcing pie is globally and they want to increase their share. This is not a static world.”
The Dragon Awakens!
Tholons, an advisory firm, declared in a June report, that China ranked ahead of the Philippines in terms of competitiveness. pushAUX.com
Rey Untal, IBPAP
“It really is a significant wake-up call… It’s good in a way. Sometimes you need to be jolted. Many of the countries that compete with us directly are enhancing all the parameters that make them competitive – talent, infrastructure, incentives.”
China’s Build Build Build Approach!
China has built state-of-the-art technology parks with the purpose of housing BPO locators. It has also funded universities to offer courses that capitalize on outsourcing, courses that are related to digital and high-technology services.
All this to get a share of the projected USD100B outsourcing revenue in 2020, money that The Philippines is also eyeing.