The 2017 Tholons index recognized the Philippines as one of the top “digital nations leaders.” Tholons defined these as countries or cities that have established leadership in services globalization over the preceding two decades.
It said the Philippines “has been the undisputed leader in customer service, BPM, and is home to major multinational corporations (MNCs) and GICs. English fluency among the youth, cultural affinity to US/UK and the growing influence of MNC operations on the country’s economy is significant.” It added that Manila “has become the focus of operations for various industries and has long back challenged Bangalore, Mumbai and taken the lead in BPMs. Leading MNC and GICs have made Philippines a hub for digital process innovation.”
The report noted at the time that the Philippine IT-BPM industry would be among those most susceptible to digital disruption, and would need a sense of urgency to reinvent itself. As Tholons put it, “digital is now a critical element in disrupting and transforming industries globally,” requiring IT-BPM companies and MNCs to align with the reality of digital innovation and transformation.
The report added: “Digital transformation of clients and them asking for new services like mobility, analytics and cyber security cannot be delivered using the traditional business model. Secondly, the undergoing automation of work like applications management, infrastructure support and testing, are reducing or in some cases eliminating the need for manpower.”
The report observed that traditional business models have increasingly become technology businesses, citing the rise of Uber and Airbnb pulling revenue away from the taxi and hotel industries respectively. It projected that increased innovation and digital transformation would create significant new opportunity for tech companies, new-age cities, and digital nations without legacy infrastructure holding them back.
Citing robotics, AI, social media, cybersecurity, big data, mobility, and as-a-service models as major forces reshaping industries, the report warned that a substantial share of the workforce in traditional outsourcing locations would need significant reskilling to remain relevant.
For a current look at how the Philippines continues to compete as an outsourcing destination, see this overview of outsourcing to the Philippines.
About TDS Global Solutions (formerly TeleDevelopment ServicesInc.)
TDS has established key partnerships with organizations to serve and stimulate growth in the IT-BPM industry. It has spent decades providing outsourcing solutions, management consulting services, talent assessments, executive recruitment, and vendor selection & management for crucial departments of call center operations. For more info, please email TDS at marketing@tdsgs.com or dial US number (1-888) 788-4441.
