| "The administration of President [Gloria] | | | | disaster recovery plans in place," PRNewswire quoted |
| Macapagal-Arroyo has seen its share of political | | | | neoIT CEO Atul Vashistha as saying. |
| instability over the last five years. The most significant | | | | According to the Business Process Association of the |
| of these was the Oakwood Mutiny of July 2003. Like | | | | Philippines, the Board of Investments and the |
| most social movements manifesting unrest towards | | | | Commission on Information and Communications |
| government policy, the Oakwood Mutiny was originally | | | | Technology, the Philippine outsourcing industry is |
| perceived to have long-term drastic effects in the | | | | expected to create 103,000 new jobs in 2006, a |
| economy. This was eventually proven to be untrue for | | | | 44-percent increase from 2005. This is in spite of the |
| the local and offshore IT industry in this country as the | | | | threat coming from other countries like India and China. |
| resilience of Philippine society prevailed in succeeding | | | | Additionally, the outsourcing industry is expected to |
| years. | | | | bring in $3.7 billion in revenues this year. Among the |
| Analysts found renewed growth for the remainder of | | | | outsourced industries in the Philippines are information |
| 2003 and the event being relegated to being a mere | | | | technology, call center work, animation and software |
| nuisance," XMG Inc. told in a statement, as quoted by | | | | development. All these sectors are bullish about the |
| INQ7.net. The IT research firm also believes the recent | | | | prospects of growth. The Philippine animation industry |
| pronouncement of state of emergency, which has | | | | is currently a $40 million business, while the global |
| now been lifted, and the ruckus at the Philippine marine | | | | animation outsourcing industry is valued at $72 billion. |
| headquarters carry "no fundamental negative effects | | | | The BOI also noted a significant increase of |
| to (the country's) economic growth." | | | | information technology-related projects that registered |
| In the short term, XMG expects some offshore | | | | in 2005. The biggest growth is expected in the |
| contracts to be suspended or cancelled owing "to | | | | outsourced call center with a projected 70-percent |
| insufficient understanding of the real meaning behind | | | | growth. |
| events of social unrest in Philippine society." But the | | | | The booming outsourcing industry in the Philippines is |
| sentiment will get better in less than a year so long as | | | | considered vital in keeping the country's economy |
| the country does not suffer further political | | | | viable. The government recognizes this fact, which is |
| unrest.indicate that the state of emergency has | | | | why incentives had been drawn up for foreign |
| minimal impact on the country's outsourcing market. | | | | companies planning to set up offshore offices here. |
| Service providers have continued to take on a | | | | The local outsourcing industry is seen to continue |
| "business as usual" attitude though they admitted that | | | | growing because of an ever growing demand from |
| regular business meetings experienced disruptions due | | | | the United States. The Philippines remains the most |
| to political protests. Nasdaq-listed ICT Group, Inc., for | | | | favored nation for outsourcing ventures, after India |
| example, revealed plans to expand its operations while | | | | because of the Filipinos' excellent knowledge of the |
| eTelecare Global Solutions announced it will recruit | | | | English language as well as their familiarity with |
| over 3,000 new agents in the Philippines. Nevertheless, | | | | Western culture owing to the country's historical |
| "the current situation in the Philippines heightens the | | | | affinity. Another factor is the Filipinos' culture of |
| need for companies to have multiple global sourcing | | | | hospitality which allowed them to carve a niche for |
| locations and to have multi-country, multi-location | | | | quality customer service. |