In Asia Pacific, it’s not often that tech companies would establish operations or service areas in provinces. Even more so for tech businesses in the Philippines as the country’s provinces are more focused on agriculture and other traditional industries, such as mining, fishing, and textile-making.
There’s also the perception that some provinces are harder to tap into because many Filipinos there still have a conservative mindset and distrust in technology.
Many local communities are still unfamiliar with technology because there aren’t enough opportunities for them to explore it. This highlights the importance of tech companies serving the provinces and lending their products and services to untapped areas.
One of the few tech companies in the Philippines that has expanded to areas outside Metro Manila is the professional services company Accenture. Aside from its offices in the cities of Manila, Makati, and Quezon, Accenture has a three-story building in Ilocos Norte between Laoag and Batac.
The province’s telecommunications infrastructure, accessibility to the Laoag International Airport, special economic zones, education centres and broad pool of talents was what prompted the company to establish an office in Ilocos Norte. Accenture has also expanded to some of Cebu’s business districts.
Another tech company that’s doing this is on-demand services provider MyKuya. Essentially, the MyKuya app allows users to book a personal assistant —called Kuya or Ate— to help with their errands such as buying groceries, picking up packages, paying bills, and more.
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As part of its mission to provide helpful and meaningful services and create one millions jobs for Filipinos by 2022, MyKuya is launching a franchise program in Metro Manila and different cities in North and South Luzon: Dagupan City in Pangasinan; Subic and Olongapo City in Zambales; Cavite City, Dasmariñas, and General Trias in Cavite; and Lucena City in Quezon.
The company is providing its tech platform to manpower agencies, small businesses, non-profit organisations, and other groups looking to grow their operations and business, as well as maximise the efficiency of their staff. MyKuya has not only improved its customer-centric business but also provided meaningful work to those who need it, which is crucial today since the economic effects of the COVID-19 pandemic led to many Filipinos losing their jobs.
Time for nationwide modernisation is now
By encouraging many organisations in the provinces to take advantage of technology to speed up their systems, this could be a way for more Filipinos to explore the digital world and integrate it into their daily lives as well.
It goes without saying that technology has helped improve the lives of many all over the world, so it’s only a matter of time for the rest of the Philippines to shift from traditional to digital systems as well.
One of the reasons why technology is still novel in many regions in the country is because of the lack of enough science and technology professionals there. A report by the Department of Science and Technology showed that many S&T professionals are concentrated in the National Capital Region, Region IV-A (Batangas, Cavite, Laguna, Quezon, and Rizal) and Region III (Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales).
The shortage of STEM professionals is also deeply rooted in the economic and educational standing of the Philippines. The country still faces many issues with its education systems such as the lack of budget, poor quality education, and a high rate of drop out or out-of-school youth. It also goes without saying that the social divide among Filipinos is still prevalent. Though public schools in rural areas are free, some Filipino families still can’t send their children to school for various reasons.
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However, this doesn’t mean that progress in the country is impossible. When tech companies start expanding and serving the provinces, like what MyKuya and Accenture are doing, this can spur technological innovation among those in the government and encourage young Filipinos to take up STEM courses as well.
This, in turn, could also encourage the education sector in the country to improve its system and open up more opportunities for people in rural areas to take up STEM subjects.
Aside from this matter on education, tech companies can also reap benefits from expanding to provinces —-Bryce Maddock, CEO of IT service management company TaskUs, can attest to this. He said that expanding outside the metro cities enables businesses in general to experience low attrition, as well as help their employees save on commute time since traffic occurs seldomly in provinces. Companies won’t find much competition in the provinces as well because most are focused on operating in urban areas.
Setting up branches in the provinces also reduces the “brain drain” of Filipino professionals to other nations. Meaning, people won’t have to go abroad because they’ll already find meaningful work in their area.
DBA Global Shared Services, the Philippine arm of Australia-based tech and outsourcing firm DBA Advisory, has also expanded in other provinces due to local talent. The company has more than 200 employees in its offices in Subic, Clark, Bataan, and Tarlac.
When asked why the firm expanded to other provinces in Central Luzon, DBA president, and CEO Darlow Parazo said that Filipinos in those areas are highly skilled in accounting, law, and IT, making them important assets in DBA.
By bringing jobs to these local talents, the company is able to expand its services and work with various multi-disciplinary and multi-industry professionals.
There’s no other perfect time for tech companies to expand to provinces than today. The Philippines is rich in culture, history, and natural resources, but as the world and technology evolve to address pressing matters, it’s only appropriate for the entire country to keep up.
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