The Philippines is one of the biggest centers for Andersen Consulting, and also one with good capacity to grow. Our client list isn't that big, but we tend to have long-term contracts. I've seen our practice mature. We're handling more sophisticated systems, what the companies call mission-critical. The question for the Philippines is how it can keep the ball rolling.
Government officials seem barely aware of what's going on.
With the government starting to pay attention, executives in the outsourcing business talk eagerly about supposed tax incentives in the pipeline, or cheaper overseas telephone calls. Nothing's happened with taxes yet, but the country's high international telephone rates are coming down as the dominant carrier, Philippine Long Distance Telephone Co., modernizes. SPI is doing its own outsourcing now, sending some of its simpler work to units in India and China. He adds that SPI still oversees all of the business, and only its Philippine-based staff deals directly with customers. To keep people on board, Andersen Consulting is offering new incentives,to employees such as fast-track promotions, regularly reviewing pay structures, and a share of investments in new businesses, rather like stock options.