business and IT (1)

My friend works as an accountant in a processor-hardware company whose finance-accounting department was relocated to Malaysia some 7 months ago. She’s back here in the Philippines for the entire duration of the Christmas season. I asked her, "Wow, your boss actually allowed you to take a 3-week leave?" She laughed and told me, “I’m technically on-leave for only 2 weeks. I told my boss I’ll be working off site (or rather on-line) for the week." She’s been here for a week & her leave officially starts tomorrow.

Information Technology has definitely changed how people do business. Since this is the age where information itself is traded as a commodity, the development of information systems within the business became necessary. Conversion of data from one transaction to another, management of information from one department to another became an important tool in business systems. Business solutions evolved from management of resources to management of information. Coupled with technology, information systems were developed to make business processes more efficient and more responsive to the actions of each industry. Suppliers were contacted virtually, clients were within reach through the net, inventories were updated on real time, assets were maintained online and decisions were formulated based on information generated from this system. Aside from removing geographical barriers, info tech is definitely becoming the way of doing business.

Since management of information can be done online, people can work anywhere and have the job done on time, regardless of their geographical location. With the coming of age of info tech, business process outsourcing became prevalent, with companies maximizing their profits and at the same time minimizing costs. With BPO’s, companies look for places where they can get their resources at the lowest rates, since geographical location does not affect the process itself. The onslaught of the call centers & medical transcriptionists are some cases in point. The downside, I guess, however, is that while we do get most of the HR here in our country, our skilled and technical workers are recruited abroad, draining our homeland’s own pool of white collared workers. With information technology, jobs done in our country can concomitantly be done outside. But with the rising costs in the Philippines coupled with the lower tax rates of other neighboring countries, BPO to other states, where profit can be maximized while minimizing the cost seems like the informed decision to go. In the age of info tech, laws should be enacted to attract companies to establish their businesses here in the Philippines. Incentives should be offered, taxes should be tempered, and the government should recognize these industries, otherwise, we will soon be facing a brain drain of our own…