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Evaluating the Internal Capabilities and External Linkages of the Philippine IT-Enabled Services (ITES) Industry
Abstract
Over the past five years the Philippine IT-enabled services industry has grown tremendously, fuelled primarily by strong global demand. The main competitiveness drivers of the Philippines as an attractive location for offshore IT-enabled services are well documented: highly skilled, English proficient workforce; low labour costs; cultural affinity towards the United States; reliable telecommunications infrastructure; and business-friendly policies. It is this rare combination of resources that has attracted many FDIs to locate their outsourcing operations in the Philippines which has made the country a prime location for customer contact service centres and business process outsourcing. This chapter examines the internal capabilities and external linkages of the Philippine ITES industry based on an empirical study. It focuses on how these various capabilities and linkages play a significant role in facilitating the ITES industry’s growth and long term sustainability.
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