MANILA - A study by the Asian Development Bank cited the Philippines as showing that the services sector can be as important as manufacturing in growing a country’s economy.
ADB’s Global Value Chain Report 2021 said that through the Philippines’ participation in global services value chains, the business process outsourcing industry enjoyed massive growth in both employment and revenue.
Victor Stolzenburg, World Trade Organization Research Economist, said the opportunities in services value chains have yet to be explored fully, and therefore offer much upside.
"Services GVCs themselves that present massive productivity opportunities to other services sectors. The argument for manufacturing GVCs is it allows each player to focus on what they are good at. We see the same thing with services GVCs,” Stolzenbug said.
He also noted that while services are also facing disruption from new technologies and innovations, the sector might prove to be more resilient compared to manufacturing.
“While we highlight automation is also a risk for services, when we talk of call centers being automated. But we still highlight that automation is much more prevalent in manufacturing than in services.”