The Philippines continues to hold a prominent position as a global leader in voice-based outsourcing and customer service operations. However, industry experts are sounding the alarm, emphasizing that the sector must urgently ascend the value chain. This call to action comes as automation and artificial intelligence rapidly transform the landscape, and regional competitors like Vietnam aggressively expand their foothold.
Vietnam's Strategic Advance in Technology
Dr. Cherry Lyn Sta. Romana, dean of the College of Computer Studies at Cebu Institute of Technology-University, highlights Vietnam's concerted efforts to bolster its technology sector. The country's strong governmental focus on science, technology, engineering, and mathematics (STEM) education, coupled with state-backed technology programs, is proving highly effective. These initiatives are enabling Vietnam to attract more high-value information technology outsourcing projects, positioning it as a formidable rival in the global market.
"Vietnam is very purposive in the way they are pushing the growth of their IT sector," Sta. Romana noted. "Their government mandates initiatives that support technology education and skills development."
Building a Skilled Workforce from the Ground Up
A key driver of Vietnam's success is its rapidly expanding pool of technical talent. Sta. Romana points out that Vietnamese universities are producing graduates with robust skills in areas like coding and computational thinking. Remarkably, these competencies are being introduced at the basic education level, with students graduating from senior high school already proficient in such areas.
"Students in Vietnam graduate from senior high school already knowing coding and computational thinking," she explained. "In the Philippines, we cannot even make it a requirement yet because we lack teachers who can handle those subjects."
This educational advantage allows Vietnam to offer a competitive workforce, attracting outsourcing contracts due to both growing technical capabilities and cost-effectiveness. During her engagements with international companies, Sta. Romana observed a trend of firms considering or shifting operations to Vietnam, drawn by its expanding IT talent pool.
"It hurts me as a Filipino because I want these opportunities to come to the Philippines," she admitted. "But Vietnam is pushing very strongly for its technology sector."
The Philippine Response: Strengthening STEM and Basic Education
To remain competitive in the rapidly evolving digital economy, Sta. Romana asserts that the Philippines must prioritize strengthening its STEM education system and expanding technology training. "If we want to compete, we need to produce more graduates with strong foundations in computing and engineering," she emphasized.
Additionally, she stresses the importance of improving basic education, particularly in reading comprehension and analytical skills. "Before we teach advanced technology, we have to make sure students can read, understand and analyze information," she said, underscoring that a solid educational foundation is crucial for preparing students for science and technology fields.
Leveraging Existing Advantages
Despite the rising competition, Sta. Romana believes the Philippines retains significant advantages. The country's strong English proficiency and well-established IT-BPM industry provide a solid base for growth. However, she warns that these benefits alone are insufficient without aggressive investment in STEM education and technology training.
"If we do not upgrade our skills and education system, other countries will continue to move ahead," she cautioned, highlighting the urgency for the Philippines to adapt and innovate to keep pace with regional competitors like Vietnam.
