China poses a serious threat to local IT-BPO sector
The Philippine IT-BPO sector, said to be the biggest source of private jobs in the country, is seriously under threat following the competitiveness enhancement of countries like China. Rey Untal, President and CEO of the IT and Business Process Association of the Philippines, said companies noted that many of the countries that compete with the Philippines directly are enhancing all the parameters that make them competitive — talent, infrastructure and business incentives. China has reportedly built state-of-the-art technology parks and funded universities to offer courses specifically on outsourcing. Other threats to the industry in the country include the current-account deficit, martial law in Mindanao and the possible removal of tax incentives.
