Harvard Business School (HBS) professor and best-selling author Clayton M. Christensen built his reputation on his disruptive innovation theory. The theory is central to the courses he teaches at HBS, which deal with setting up and sustaining companies. His book, The Innovator’s Dilemma “received the Global Business Book Award as the best business book of the year in 1997.” The Economist named it one of the six most important business books ever written.
But Dr. Christensen is perhaps best known for his 2012 The New York Times best-seller, How Will You Measure Your Life? The book evolved from a series of observations and classroom discussions. The observations seem to have focused primarily on Dr. Christensen’s own HBS MBA classmates’ careers, families, and reputations over the years following graduation. From those observations—and taking off from the theories Dr. Christensen taught in his classes—he began a series of conversations on the last day of each of his classes with his students.
While the talent gap represents the biggest single threat to the fast-growing IT-BPO industry, the rising cost of doing business, quality of telecom infrastructure, and consistency in the administration of investment incentives are all major factors determining the viability of the industry, according to the results of an industry survey. Because so much attention is focused on the critical talent issues, other factors that fundamentally impact the industry may not get the attention they deserve.
The survey was commissioned by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) as the last in a series of quarterly surveys conducted this year. Respondents also identified the Philippines’ “country brand” and regulatory environment as at least “significantly important” factors that can enhance or undermine the attractiveness of the industry to investors.
Does it seem curious to you that the National Economic and Development Authority (NEDA) singles out overseas remittances when announcing how fast the economy is growing, but lumps IT-BPO—the nation’s most efficient job generator at home—into a basket of miscellaneous services? About 10 million overseas Filipino workers (OFWs) remitted $15.57 billion in the first three quarters of 2012. The World Bank forecasts total remittances for the year of $24 billion.
Given these numbers, it’s not hard to understand why NEDA places such prominence on the contribution of OFWs to the economy, and its “inclusive” effect on the masses, presenting a trickle down opportunity to partake of the fruits of economic growth. In a statement announcing the Philippines’ impressive 7.1% third-quarter expansion NEDA secretary Arsenio M. Balisacan said remittances increased precisely 4.2%.