Philippines, State of Emergency, Outsourcing
The consequences of political instability in the Philippines on the country's outsourcing industry
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neoIT, a leading services globalization consulting firm, issued a report to address business concerns stemming from the declaration of a state of emergency by Philippines President Gloria Macapagal on February 24, 2006. The Philippines president issued the declaration in response to the military uprising that sought to overthrow the present government. The declaration has since been lifted.
neoIT, with consulting offices located in Manila, works with global clients that rely on an extensive network of Philippines BPO and ITO outsourcing providers. neoIT polled its client base as well as numerous leading Philippines service providers. The report provides an overview of the country's political developments leading up to the state of emergency and gives a realistic view on the impact on businesses and summarizes neoIT's findings.
The recent political developments have damaged the country's credibility and has increased its risk as a location for global sourcing, deterring badly needed foreign investment as well as tourism. Despite this unrest, the impact of the country's outsourcing industry has been minimal to date. While some disruption to regular business meetings was caused by political protests, service providers report that in most cases it is "business as usual" and that they will be minimally impacted. Service providers such as Nasdaq-listed ICT Group, Inc. announced Philippines expansion plans as recently as last week. eTelecare Global Solutions announced plans to hire more than 3000 new agents in the Philippines.
"The current situation in the Philippines heightens the need for companies to have multiple global sourcing locations and to have multi-country, multi-location disaster recovery plans in place," stated neoIT CEO Atul Vashistha.
A free copy of the report can be downloaded at:
http://www.neoit.com/gen/knowledgecenter/Articles/Mar_06_Philippines_Impact_of_Current_Political_Developments.pdf
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