THE Philippines faces increasing competition in the global information and business process management (IT-BPM) market as Vietnam aggressively builds its technology sector and expands its pool of highly skilled digital workers.
Dr. Cherry Lyn Sta. Romana, dean of the College of Computer Studies at Cebu Institute of Technology-University, said Vietnam’s strong focus on science, technology, engineering and mathematics (Stem) education and government-backed technology programs is helping the country attract more high-value IT outsourcing projects.
She said the country’s rise is being driven by strong government support for Stem education and a rapidly expanding pool of technical talent.
“Vietnam is very purposive in the way they are pushing the growth of their IT sector,” Sta. Romana said. “Their government mandates initiatives that support technology education and skills development.”
She noted that Vietnamese universities are producing graduates with strong technical skills, including coding and computational thinking, which are already being introduced at the basic education level.
“Students in Vietnam graduate from senior high school already knowing coding and computational thinking,” she said. “In the Philippines, we cannot even make it a requirement yet because we lack teachers who can handle those subjects.”
The Philippines remains a global leader in voice-based outsourcing and customer service operations, but experts warn that the industry must move up the value chain as automation and artificial intelligence reshape the sector.
Sta. Romana said Vietnam is attracting outsourcing contracts partly because of its growing technical workforce and competitive costs.
During engagements with international companies, she observed that many firms were considering or shifting operations to Vietnam due to its expanding IT talent pool.
“It hurts me as a Filipino because I want these opportunities to come to the Philippines,” she said. “But Vietnam is pushing very strongly for its technology sector.”
Vietnamese technology firms are also becoming more prominent internationally. One example is FPT, a Vietnamese IT services company that has expanded globally and is positioning itself as a major technology consulting provider.
Stem education system
Sta. Romana said the Philippines must strengthen its Stem education system and expand technology training to remain competitive in the rapidly evolving digital economy.
“If we want to compete, we need to produce more graduates with strong foundations in computing and engineering,” she said.
She also stressed that the country must prioritize improving basic education, particularly reading comprehension and analytical skills, to prepare students for science and technology fields.
“Before we teach advanced technology, we have to make sure students can read, understand and analyze information,” she said.
PH advantage
Despite the competition, Sta. Romana believes the Philippines still has advantages, including its strong English proficiency and established IT-BPM industry.
However, she said the country must invest more aggressively in Stem education and technology training to keep pace with regional competitors.
“If we do not upgrade our skills and education system, other countries will continue to move ahead,” she said. / KOC