In terms of fatalities, as bad as it was, the past storm system was not that deadly. In December, for example, Tropical Storm Washi (Typhoon Sendong) left more than 1,200 people dead and set off flash floods that swept away entire villages in the southern Philippines.
But again, this storm was different. Unlike the devastation to the south, this storm ploughed straight into one of the biggest metropolitan areas of the world. The result: transportation systems were virtually at a standstill, with government sources stating that as much as 80% of Metro Manila was affected. This area was one of the hardest hit during the historic flooding that came with Tropical Storm Ketsana (Typhoon Ondoy) in 2009.
This storm impacted business and financial centers, and the very hub of government itself. No government or private sector firm was left unscathed.
The rains and flooding for the past few days have created a heightened awareness of the lack of preparedness of the Philippines, and has affected outsourcing operations in Metro Manila, through disruption of service and the lack of human resources to run operations.
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.
The recent event is calls for more than just a review of lessons learned. It is about developing a "business as usual" attitude, although this should be guided by the right mindset from the outset where personnel safety remains paramount. Above all, the resulting devastation highlighted the lack of essential infrastructure to support an industry that is currently employing over 700,000 Filipinos who contribute to globalization and play key roles in supporting business operations internationally. The responsibility for continuity of services must also syndicate service providers and captives to ensure their workforce has the ability to telework, particularly for critical functions. The tools, connectivity and means to do so have matured significantly since Tropical Storm Ketsana.
Although the Philippines has come a long way in strengthening utility infrastructures such as power and telecom services, it has continued to struggle with other essential infrastructure such as transportation, water supply, sanitation, drainage and other critical urban infrastructures to meet the migration trends and mobilizing talents within and without Metro Manila. An unexpected natural disaster such as the past tropical depression, exacerbated a fundamental disconnect between the government and the needs of the outsourcing industry. The calamity also further highlighted the lack of critical infrastructure for the country to be "ON" in any given situation.