After the Floods, Time to Ponder and Act

13.08.2012

The Malacanang order on Aug. 7, 2012 (Memorandum Circular No. 33-A, s. 2012) reinforced the immediate need for an active governance model, which provides a structure for dialogue and decision-making; where BPAP (Business Processing Association of the Philippines) and industry leaders must participate in and coordinate with during times of crisis. The lack of governance will continually fail to adequately consider or document the critical needs of the outsourcing sector, which the President may have failed to appreciate.

As more work is outsourced to the Philippines, business needs and globalization are forcing investments in real-time applications and human resources to fulfill business processes 24/7. This is rapidly transforming business continuity planning requirements. Therefore, it is incumbent upon outsourcing service providers and captives to have a workable and effective business continuity plan in place, and address "return to normalcy" practices. However, what if offices were suspended during a tropical depression such as the one witnessed last Aug. 7 despite the availability of the technology and facilities?

During a crisis, personnel safety comes first and is a non-negotiable element. Missing, however, in the Philippines, is a crisis management plan specifically focused on "keeping the lights on" for every business. Looking back at the Japanese tsunami experience of 2011, this country's government had a "business as usual" attitude. Despite the cumulative effects of the calamity and the painstaking recovery process, the Japanese government helped mobilize thousands of workers to continually keep business operations running. More importantly, the Japanese government did not deter businesses from continuing operations.

Sustaining operations especially in high geo-physical risk areas such as the Philippines that are prone to major typhoons and earthquakes, is always a key-determining factor when selecting a location. Not being able to support business operations sustainability during a time like this has deleterious consequences for the country. If the Philippines is to maintain its hold as a legitimate and reliable global provider of outsourcing and captive services, it will have to meet the demands of the global market at any given point in time and in any given situation. This means the need to work towards establishing an "always ON" economy that mitigates risks in the face of any crisis. It will have to ensure the country's ability to always be operational, regardless of the degree of crisis; which includes the availability and mobilization of business-critical resources to run operations, which are the people. This includes, but is not limited to, instituting safeguards to ensure continuity of services and revisiting old statutes such as the 1987 Constitution, Article 12, Section 17 that allows the state to temporarily take over, or direct the operation of any privately-owned public utility or business affected with public interest, during a national state of emergency.