ASEAN KEY DESTINATIONS
Philippines finds success in outsourcing
By David Swartzemtruber
A recent report by the World Bank said services exports as a percent of total exports increased from 9 percent in 1999 to 21 percent in 2009 in the Philippines. Unlike many developing countries, the Philippines has been a net exporter of services since 2006.
Bert Hofman, World Bank country director, said the liberalization of the Philippine telecommunications sector in the early 1990s improved the quality and efficiency of telecom infrastructure through greater competition. The liberalization of the Philippine telecommunications sector in the early 1990s improved the quality and efficiency of telecom infrastructure through greater competition is said to have played an important role in the Philippines outsourcing success.
The Business Process Association of the Philippines (BPAP) said the sector employs close to 500,000 people and has generated about US$9 billion worth of exports in 2010.
However, there is a need to develop supervisors, middle managers, and more skilled workers to respond to increasing market demand for a broadening array of knowledge-based, complex services.
The Philippines still trails India and will need greater investments in human capital, strengthening of intellectual property rights through the passage of a comprehensive laws, and improvement of quality control to promote the growth of high-value-added activities in the outsourcing sector.
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