Global off-shore and outsourcing players have the Philippines on their target sights for business, booming as usual.

Automotive giant Toyota Motor Corporation and outsourcing industry leader Accenture are powering up their captive operations in the Philippines, citing the country as a global manufacturing hub and where customer service has no parallel.

Increasing global demand for Toyota Motor Corporation’s International Multi-purpose Vehicles(IMV); which includes the Fortuner, Innova and Hilux, has prompted the auto company to expand its facilities in Santa Rosa, Laguna to produce the R-type manual transmission systems for Toyota IMVs.

Though Toyota has other manufacturing sites in Asia; one in Japan, another in Thailand and lastly in India, transmission systems produced in the Philippines are competitive in terms of quality and cost according to Yasuro Takeuchi, Toyota Autoparts President.

A similar outlook is expressed by Yogesh Malhotra, lead for the Philippine delivery network of Accenture as the outsourcing leader plans to boost the services portfolio of its Philippine delivery centers since the performance of Accenture Philippines employees exceed both the company and clients’ expectations.

The customer care is strongest in the country (Philippines), said Malhotra.

Despite these major multinationals’ confidence in the country to advance their operations, there are still areas of concern. Primarily, one is human resources development for both production floor as well as middle level management.

The need to produce high-value assets in human resources is stressed by Ovum, a UK-based industry analyst firm.

The country need to spend more than just basic education if it wants to go into more of these high-value services. This area remains one of the biggest challenges of the Philippines.

For all of the outsourcing activities, there are skill requirements for language, IT, management and customer service—and the various elements of the Philippine education system need to respond positively here.

David Mitchell, Senior vice-president for IT research, Ovum.

The modification of national educational policies to meet the standards of global technological trends helps the Philippines to focus on niche markets for premium skills where it can compete better with larger economies such as India and China and not rely on providing low costs for investors for this would lead to lower investments.

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  1. “BPO company bares plans to add more services in RP operations.” 25 August 2008. Sun Star Cebu. Accessed 25 August 2008. Link here
  2. Casiraya, Lawrence. “RP must focus on software-as-a-service, open source—Ovum.” 24 August 2008. Philippine Daily Inquirer.  Accessed 25 August 2008. Link here
  3. Domingo, Ronnel. “Toyota picks RP as global engine hub.” 24 August 2008. Philippine Daily Inquirer. Accessed 25 August 2008. Link here


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