The Services Shift – The Philippines is the Eye of the Storm

The world is currently witnessing a fundamental reorganization in the way services are delivered to customers. This is what is behind the movement to outsource. It’s a lot more than just saving money by shipping jobs overseas.

Harvard Business Professor Robert E. Kennedy, calls this the “Services Shift”. The globalization of services, in which different tasks are being carried out by different individuals in different locations, is about gaining access to the best combination of talent, resources and markets. Kennedy points out five primary compelling forces behind outsourcing:

  •  Technological Innovations like easy access to the internet and stored data.
  • Emerging Market Growth in traditionally closed markets
  • Global Macroeconomic Liberalization of government polices toward trade
  • The Corporate Imperative to both reduce costs and improve quality
  • The Convergence of a Global Business Culture based on the English language and American business models.
The business environment is constantly changing, and forward looking business managers and owners are always searching for and seizing new options. Analysts will provide the data and analysis behind their strategy.

Kennedy noted the following factors that will continue to drive outsourcing in the next 10-20 years:

  •  Global Sourcing will continue to grow – Rapidly
  • The key word will be “global”
  • Global Services will keep moving up the food chain
  • Talent will become more important then cost
  • Scale will decline dramatically, small business and team will be targets
  • Global sourcing will become increasingly personal to customers

The Philippines is in a blessed situation as all these factors converge.