The Philippines IT-BPM Industry Cautious Optimism in Turbulent Times
The last 12 months have been witness to political surprises and uncertainties such as United Kingdom preparing to leave the European Union and Donald Trump becoming the 45th President of the United States. The global services industry has watched these developments with great interest.
One such development took place in the Philippines, when the new President, Rodrigo Duterte, seemed to pivot away from the traditional ally, the United States, and showed a distinct lean towards China and Russia.
These statements have created uncertainty, especially in the US$23 billion Philippines IT-BPM industry. To put things in perspective, the Philippines IT-BPM industry derives 65-70% of its revenue and ~800,000 direct jobs from the United States. In the last three to four years, ~50% of the new delivery centers set up in the Philippines are by the U.S.-based enterprises and global service providers. There is a natural concern among these organizations as to how the potential changes in the relationship between the Philippines and the United States will impact their operations, which many businesses have come to rely upon.
In this viewpoint, Everest Group examines the current situation and offers ways to prepare and plan for the potential impact. Specifically, the viewpoint offers perspectives on the following:
Facts about the current situation
Assess whether the Philippines can break ties with the United States
Recommendations for global service providers and enterprises