PH optimistic despite dip in Kearney’s outsourcing list
MANILA, PHILIPINES — Despite a three-place drop in the 2023 Kearney Global Services Location Index (GSLI), the Philippine Economic Zone Authority (PEZA) remains hopeful for the country’s outsourcing industry.
The Philippines now ranks 12th out of 78 nations, with Mexico and Colombia rising due to their proximity to the United States (U.S.)
PEZA Director General Tereso Panga expressed confidence in the country’s ability to recover. He stressed that the dip is temporary, highlighting a renewal and strengthening of ties with the United States under the current administration.
“We are banking on the improved perception of the Philippines as an investment destination of companies from the western hemisphere and attract them to re-engage with the Philippines,” Panga added.
The PEZA also noted that the countries that have moved ahead mainly target the Spanish-speaking U.S. market, which isn’t the local industry’s core target.
Instead, the focus is on English-speaking countries like Australia and New Zealand, made possible through the Philippines’ recent accession to the Regional Comprehensive Economic Partnership (RCEP).
To further support growth, PEZA is also considering ‘ally-shoring’ or ‘friend-shoring’ as interim measures while new digital hubs are in development. Panga emphasized the high English proficiency and quality IT engineers as the Philippines’ key advantages, expressing faith in the country’s prospects despite the lower global ranking.
He also noted that the country’s electronics exports to the U.S. amounted to US$49.1 billion in 2022, underscoring the strength of trade relations.
