The Philippines must embrace technological disruption and innovation to stay competitive, a company that runs an Internet data center said.
IP Converge Data Services, which also provides telecommunications and cloud services, was prompted to reiterate this point after five Philippine business hubs, including Metro Manila, fell from their rankings in a recent global poll that surveyed the top 100 outsourcing destinations.
These results, including the Philippine hubs’ lower turnout, “only signify how digital transformation is a vital element in business growth, and that it should serve as a wakeup call for organizations who have not yet embraced a digital mindset,” the company said in an emailed statement.
In its latest Top 100 Outsourcing Destinations global survey, Tholons said it decided to add digital innovation as a key parameter in this year’s rankings as a result of digital transformation disrupting the global outsourcing industry. The survey also notes that the rapid adoption of digital solutions in the workplace is the result of today’s clients asking for more transformational and innovative services, and that those who stick with traditional business models will be challenged to deliver.
“Business technology has evolved to the point that it is now recognized as a requirement for any company as it provides the capabilities needed to remain relevant and competitive in today?s digital age,” said IPC chief operating officer (COO) Dave De Leon.
Although the company recognized that the decision to go digital seems overwhelming — especially to small and medium-sized businesses — IPC said that the benefits outweigh the risks. It cited a McKinsey study that indicated B2B companies that utilize digital technology generate eight percent more shareholder returns and a revenue compound annual growth rate (CAGR) that is five times greater than their peers.
To meet these digital challenges and take the first step towards digital transformation, businesses big and small must select the right partner to work with. Access to emerging technologies and global best practices in operational efficiency and change management are paramount in this selection process. The partnership model is a viable method that local companies can turn to, in order to flourish and even improve their status in the international stage, as evident in the Tholons survey.
“Working hand in hand with the right partner can help businesses implement a digital transformation strategy at a faster rate and with cost-efficiency. It also gives them a competitive edge by providing the expertise, technology, and practices needed to spur productivity and growth, and this journey can be difficult to embark on especially if an organization’s expertise is not in the area of IT,” said Nino Valmonte, IPC?s director for marketing and digital innovation.
De Leon added: “Teaming up with a digital partner who specializes in technology minimizes the risks involved when facing it alone as they adhere to the best and up-to-date practices.”
As part of its efforts to share and promote the best business IT practices and trends, IPC is currently bringing digital transformation directly to Metro Manila’s business hubs in #DiscoverDigital, a campaign that consists of various activities and seminars facilitated by experts including seminars with the overall objective of empowering Filipino enterprises and organizations, whether large or SME, to think out of the box and make the digital pivot towards operational efficiency, profitability and business success.