The 2017 Tholons index recognized the Philippines as one of the top “digital nations leaders.” Tholons defined as countries or cities that have established leadership in services globalization over the last 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. A number of companies are leaders in putting robotics workforce and process simplification through digital.”
But most importantly, it noted that the Philippine IT-BPM industry would be “probably the most susceptible to the digital onslaught and needs to have a sense of urgency to re-invent itself in this age of digital disruption.” After all, Tholons said, “digital is now a critical element in disrupting and transforming industries globally.” With technology, IT-BPM companies and MNCs “need to align with the stark reality of digital innovation and transformation,” Tholons stressed.
The London-based advisory and consulting firm 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. These forces will severely affect the IT service companies.”
It noted that traditional business models have become technology businesses, citing the rise of Uber and Airbnb, respectively taking revenues away from the taxi services and hotel industries. “This increased innovation and digital transformation will swell up spending annually from $2.4 to $3.8 trillion giving a significant jump in (opportunities) to new age tech companies, new age super cities and digital nations, that have no legacy baggage,” Tholons said.
Citing robotics, AI, social media, cybersecurity risks, big data, mobility and as-a-service models, “major digital forces are shaping the opportunity and future transforming all industries faster than anyone of us can comprehend, strategize and manage,” Tholons added. “More than half of (the) workforce in leading traditional outsourcing locations will become irrelevant in (the) coming few years unless significant reskilling is done. And for an industry this large, making this gigantic shift will be a challenge.”
About TDS Global Solutions (formerly TeleDevelopment ServicesInc.)
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