The Philippines have traditionally enjoyed its lofty position as among the world’s outsourcing destinations due to the country’s skilled labor built for BPO skill substitution, English proficiency and competitive operations costs. Direct investments by offshore companies in terms of IT infrastructure and data convergence have raised the country’s IT standards, but for the businesses who are homegrown, their digital framework is falling behind their IT-BPM peers.
Basing on the recent Top 100 Outsourcing Destinations global survey, the business hubs of Metro Manila have seen their rankings drop in this year’s edition due to factors such as the lack of digital innovation.
In the modern times of doing business, the transformative force that is digitalization, enables businesses across the globe to enhance their productivity by leveraging platforms, process and people oriented software within the enterprise. The latest results from the Top 100 Outsourcing Destinations for Metro Manila and its other business hubs serves as a wakeup call on the changing climate of doing business in the digital age.
“Business technology has evolved to the point that it is now recognized as a requirement for any company as it provides the capabilities needed to remain relevant and competitive in today’s digital age,“ said IP Converge Data Services, Inc’s Chief Operating Officer, Dave De Leon as quoted by the Manila Bulletin.
In this year’s Top 100 Outsourcing Destination, Tholons added the factor of digital innovation in determining the competence of the cities under its index, citing the demand of today’s clients towards the use of transformative technology and disruptive digital innovation that challenges the status quo set by the industry.
For local businesses in the Philippines to fully harness the transformative transition of digitalization, the enterprise must first equip itself with the right skill sets, processes, platforms and technology required to implement a digitalization process of transition. It is an investment that is needed more today, rather than later as businesses can no longer ignore the fact that going digital is no longer considered an option.
Requirements in Going Digital
According to a study published by Mckinsey, Business to Business (B2B) companies who leverage digital technology are generating 8 percent more in shareholder returns and compounding a revenue of a compound annual growth rate (CAGR) five times greater compared to their peers who are partially non-performing in digitalization.
While business leaders are aware of the benefits of going digital, the roadblock towards adoption are defined as the obstacles that must be addressed in order to create a roadmap in embracing digital transformation. Roadblocks such as equipping people with skill sets, technology platforms and infrastructure must be accounted for.
IPC’s Director for Marketing & Digital Innovation, Niño Valmonte believes that digitalization is not staked simply in the purchase and use of separate platforms. According to Valmonte, the digitalization must be seen as a holistic roadmap that will enable the use of digital platforms across departments in order to improve collaboration within the business. This includes key personnel allocation, process mapping and the definition of technologies under the enterprise.
In embracing digital, infrastructure and internal maps are often integrated with the valuable insight provided by a tech-partner. Businesses sign up partners when enabling the digital transformation as these partners, offer their expertise when it comes to rolling out infrastructure to support the digitally-supported operations.
“Working hand in hand with the right partner can help businesses implement a digital transformation strategy at a faster rate and with cost-efficiency. It also gives them a competitive edge by providing the expertise, technology, and practices needed to spur productivity and growth, and this journey can be difficult to embark on especially if an organization’s expertise is not in the area of IT,” Valmonte was quoted by Manila Bulletin.
Ezy Outsourcing Hub is a trusted IT-BPM provider for outsourcing and offshoring solutions for businesses who are looking to transition to a shared service setup in order to realize its benefits. We are your partner when it comes to the integration of core IT services and essential support processes. Migrating to an offshore / outsource setup is one of the ways in taking the enterprise into the digital age. To get started in outsourcing, call us +63 917 5680402 and +63 917 5166897 or email us email@example.com.
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