More than six months into the COVID-19 pandemic, some key markets have slowly started the road to recovery and are coping as best as they can with government assistance and mandated safety health protocols. Big players like the US and Europe have been holding steadfast so far despite a decline in Gross Domestic Product and a rise in unemployment.
How the Global Market is doing
Although US economists from MarketWatch forecast a 32.5% drop in GDP, its economy has already been operating back to 78% normal as of August 19. Goldman Sachs economists note that the country seems to have avoided a surge in permanent business closures that many have feared during the initial onset of the pandemic. It is most likely that because of government initiatives like the Payroll Protection Program, that offer various grants and loans, and other policy support, this has helped businesses weather through the sharp pullback.
European countries on the other hand also had governments take proactive steps in shielding businesses from mass closures and joblessness, loaning billions to businesses to help keep them afloat. Companies are preparing to execute downsizing plans to counterbalance the collapse in business and to adapt to more flexible strategies while the pandemic is still ongoing.
With key business markets from all over the world looking into long-term plans for downsizing, collaboration between other global markets may seem to be a risky move to some. However, big companies and multinationals operate best in adapting to new international circumstances the tools to increasing supply chain resilience through collaborating with other markets abroad. This essentially means that globalization and working with other countries in operating one’s business creates value and expands a company’s capabilities.
Why the Philippines is Still the Top Choice
The Philippines’ outsourcing industry throughout all this may have suffered some losses during the first few months of the pandemic’s onset but true to its resilience, is slowly shifting to accommodate the new demands of the new normal. The backbone of this industry is the large talent pool of the highly educated and skilled workforce of the country, who also have a close cultural affinity to the west.
This is beneficial to both US and EU businesses who are now searching for viable cost-efficient alternatives that can help them to remain globally competitive. With less cost invested on both equipment and office space as well as a high dollar to Philippine peso ratio, outsourcing other jobs to the Philippines can help one effectively cut back on costs. Added advantages to this are the digital and tech savviness of Filipinos, best suited for the new virtual age that has been born out of necessity due to the strict health and social distancing protocols that need to be followed.
Companies turn to foreign resources such as these mostly for brains and capability with the Philippines being versed in key services such as customer service, inbound sales, and technical support. The outsourcing industry in the country also largely assists English language services, well suited for businesses in the US and Europe looking to pivot towards downsizing their firms. With a resilient offshoring industry that continues to be a large contributor to the Philippines’ GDP, this positions other countries to enter a mutually beneficial partnership that utilizes their talent pool, stays up to date on international market trends, and allows collaboration with other global markets.