Resilience and recovery: The Philippine IT–BPO industry during the global crisis

Abstract

The Philippine business process outsourcing industry is poised to be a significant sector contributing to the country’s economic growth. Owing to the rapid development of information and communication technology in the past decade, the industry constantly boasts double-digit growth rates in revenue and manpower. However, as demand for outsourcing decelerated during the 2008 Global Financial Crisis, the industry faced its first major challenge. This research explores the Philippine information technology–business process outsourcing industry’s performance during the crisis by assessing the post-crisis results of the industry’s targets and strategies. The study identifies and analyzes the factors that contribute to the sector’s resilience and robust growth during the recession and concludes that offshored services can maintain short- to mid-term growth, but in the long term face major challenges with respect to innovation and talent sustainability. More importantly, the research emphasizes the central role of the Philippine government in the decision-making and policy-reform process that is essential in developing the Philippines into a business process outsourcing center of excellence.