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The Philippines: Resilience at work

By Magellan Solutions

Updated on April 8, 2024

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In a world where rapid economic and social changes are the norm, resilience determines success or failure, whether it is relevant or obsolete. For businesses, this means going beyond operational efficiency and cost advantage and renewing their capacity to evolve and adapt to significant shifts as they lead and reinvent themselves through disruptive change.

By working strategically with the right outsourcing partners in the Philippines, companies can manage risks, effectively respond to and recover from crises, and bring in more opportunities.

The country has secured its place as a leading business and global outsourcing destination and is reaping the benefits of a resilient economy fuelled by resilient people. Today, it is a trusted brand that translates into value and competitive advantage. It is the “most improved country” in the World Economic Forum (WEF) Global Competitiveness Report since 2010. The report found strong performance in the areas of macroeconomic environment (from 40th to 26th); business sophistication (from 49th to 46th); innovation (from 69th to 52nd); higher education and training (67th to 64th); institutions (from 79th to 67th); and technological readiness (from 77th to 69th).


IT-BPM Growth

Information technology and business process management (IT-BPM) is now one of the economy’s growth drivers. This industry has fostered the development of expertise across sectors such as voice, healthcare information management, animation, software development, and shared services. The IT and Business Process Association of the Philippines (IBPAP) industry association works closely with the government and its partners to address issues, identify and expand opportunities, and ensure quality standards.

The success of IT-BPM reflects the heightened confidence in the value delivered by Philippine-based service providers. Compared to a location like the US, the industry estimates that cost savings may range from 65 to 85 percent. A highly educated and qualified workforce also ensures more significant business gains, with engagements ranging from shared services or global in-house centers (GICs) to high-value knowledge process outsourcing (KPO) services. Technology, telco, real estate, and other industry enablers can support the current and anticipated business requirements of startups and large enterprises, giving them greater flexibility and better options in catering to their respective markets. Simply put, they can access everything they need to fulfill their immediate or long-term goals.


Growth Despite Challenges

In the Philippines, resilience is a way of life. Companies with operations across the country are learning to embrace resilience as a core business practice. At least 20 typhoons enter the archipelago yearly; landslides, earthquakes, and volcanic eruptions are potential threats. Because of these, business continuity and disaster response management, particularly in the aftermath of the devastating Typhoon Haiyan in November 2013, are a top priority among the private and public sectors. Government, academia, business, and civil society are doing their share in enhancing adaptive capacities while addressing vulnerabilities.

Defying the typhoon-ridden climate, in 2014, the country’s BPO services grew by 18.7%. Meanwhile, in 2013 it posted a 7.2% growth rate.

The Philippines offers a combination of industry knowledge and experience and has proven its resiliency amid global challenges. Organizations seeking to boost their business resilience can rely on the country’s solid track record, business environment, prized talent, and substantial economic performance.

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      The Philippines: Resilience at work

      Magellan Solutions

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