(File photo)
MANILA – Philippine Economic Zone Authority (PEZA) Director General Tereso Panga believes that the country’s lower ranking in the Global Services Location Index (GSLI) 2023 of global management consultancy firm Kearney is “temporary.”
This, as he noted that initiatives to boost the local information technology and business process outsourcing (ITBPO) industry are underway.
“PEZA believes that this is temporary given that there is a renewal and strengthening of ties with the United States under our current administration,” Panga said in a text message to reporters Wednesday.
He said the agency is looking at friendshoring, or tapping its allies to sustain the industry, as this strategy has been working for PEZA in the manufacturing sector.
“PEZA is looking at allyshoring, or friendshoring, as a stop gap measure while the new digital hubs are still in the pipeline. 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,” he added.
Panga said the lower country ranking for the Philippines in the 2023 GSLI, which slipped to 12th place from 9th in the 2021 report, can be attributed to the rise of Latin American countries like Columbia and Mexico.
“We note that most of the companies that have transferred to Mexico and Columbia are basically targeting the Spanish-speaking market in the United States, which is not really our core target,” Panga said. “Instead, we are looking at the IBPAP (IT Business Process Association of the Philippines) to target English-speaking countries like Australia and New Zealand as the new market for their industry given the country’s recent accession to RCEP (Regional Comprehensive Economic Partnership)”.
He added that this will complement the country’s traditional market strengths like the US and Europe.
In PEZA-registered IT parks, the ITBPO sector has employed around one million Filipinos, Panga said. (PNA)
