WE ALL KNOW WHAT INVESTORS – FILIPINO AS WELL AS NON-FILIPINO- LOOK FOR IN A COUNTRY : SOUND TRADE POLICY, CONSISTENCY AND PREDICTABILITY OF POLICY, POLITICAL STABILITY, PEACE AND ORDER, THE ABSENCE OF CORRUPTION OR A REASONABLE LEVEL THEREOF, THE RULE OF LAW, ADEQUATE AND INEXPENSIVE TRANSPORTATION AND COMMUNICATIONS.  THE NATURE AND APPLICATION OF TAX POLICY, THE LEVEL OF TRANSACTION COSTS AND THE RELATIONSHIP OF WAGES TO PRODUCTIVITY ARE OTHER IMPORTANT CONSIDERATIONS.

WE WILL CONTINUE TO MOVE IN THIS DIRECTION.  THERE WILL NO DOUBT BE SETBACKS BUT WE WILL KEEP ON TRACK.
 
AS THIS ROUNDTABLE DISCUSSION IS ON OUTSOURCING, I SHOULD MENTION SOME OF THE ADVANTAGES OF THE PHILIPPINES IN THIS SECTOR :

    * WE ARE STRATEGICALLY LOCATED IN ASIA

    * WE HAVE RELIABLE INFRASTRUCTURE SUPPORT INCLUDING EXPANDING MULTI-MEDIA INFRASTRUCTURE,  A DEREGULATED TELECOMMUNICATIONS INDUSTRY, NATIONAL NETWORK CAPACITY AND THE PRESENCE OF DEDICATED IT PARKS RIGHT IN THE CENTER OF BUSINESS DISTRICTS

    * WE HAVE QUALITY HUMAN RESOURCES.  WE PRODUCE APPROXIMATELY 380,000 COLLEGE GRADUATES PER YEAR, 70,000 OF WHICH ARE IN THE IT/COMPUTER SCIENCES/ENGINEERING FIELDS AND 100,000 IN THE COMMERCE/BUSINESS-RELATED FIELDS.  ACCORDING TO THE 2002 GLOBAL TECHNOLOGY INDEX OF THE META GROUP (a US-based research group) WE RANK THIRD IN THE AVAILABILITY OF COMPETENT SENIOR MANAGEMENT PERSONNEL (AFTER THE UNITED STATES AND CHILE)

    * WE PROVIDE A WIDE RANGE OF INVESTMENT INCENTIVES FOR DOMESTICALLY INCORPORATED FIRMS AND BRANCH OFFICES AS WELL AS REGIONAL HEADQUARTERS

GIVEN THESE STRENGTHS, WHAT TRENDS DO WE ENVISION FOR THE NEXT FEW YEARS ?

FIRST, THE GROWTH OF THE CONTACT CENTER INDUSTRY. MAJORITY OF THE TOP CALL CENTERS HAVE SET UP OPERATIONS OVER THE LAST TWO YEARS , I.E. CONVERGYS, SYKES, TELETECH, AOL, APAC, ICT, WEST, SITEL.

SECOND, BUSINESS PROCESSES OUTSOURCED (BPO) TO THE PHILIPPINES.  THESE WOULD INCLUDE ACTIVITIES FALLING UNDER FINANCE AND ACCOUNTING, HUMAN RESOURCES AND OTHER BUSINESS PROCESSES SUCH AS DATA ENTRY/DATA PROCESSING, PRE-NEED ACCREDITATION, INVENTORY CONTROL, AND TECHNOLOGY SUPPORT, AMONG OTHERS.

THIRD, SOFTWARE DEVELOPMENT.  THE 2002 GLOBAL NEW ECONOMY INDEX OF THE META GROUP CITED THE PHILIPPINES FOR THE EXCELLENT AVAILABILITY OF SKILLED IT WORKERS AND FOR THEIR PROFICIENCY IN MAINFRAMES, MINICOMPUTERS AS WELL AS FOR THEIR TECHNICAL AND BUSINESS SKILLS FOR ICT PROJECTS.