Jonathan De Luzuriaga – Incarnation of Outsourcing

Episode 211 - Jonathan De Luzuriaga

Jonathan De Luzuriaga – Incarnation of Outsourcing

Derek visits Spring Valley for a special chat with his guest, Jonathan De Luzuriaga, a very established personality in the Philippines’ software industry. He is the President of the Philippine Software Industry Association, and one of the Board of Trustees of the IT & Business Process Association of the Philippines (IBPAP).

He is the Founder and President of Spring Valley, the largest technology and innovation hub in the Philippines, which aims to be Asia and the Pacific’s answer to Silicon Valley in the US. He is recently elected as the President of the National ICT Confederation of the Philippines.

 

Summary

  • In 2008, Jonathan was given a directive to come up with an international event. The first version of it was the International Outsourcing Summit or IOS. From six countries it evolved into what is now called the International Innovation Summit (IIS).      
  • According to Jonathan comparing the Philippines software industry in the mid90’s to the mid-2000 is like comparing apples to oranges. There were only a handful of champions until the world market noticed the potential of the country in terms of offering IT and business process outsourcing services to the rest of the world, the USA, Europe and Asia.
  • Jonathan shared that in the early years of the industry, geographical locations of services matters much to clients such that service providers in the Philippines have to hide where they are actually based to avoid penalty. With the evolution of the industry and with the country’s status as outsourcing service provider, there is now a growing acceptance of geographies and some clients actually insist on speaking with somebody from the Philippines.
  • Technology is a great equalizer. Knowing this Jonathan projects that a number of MSMEs will come into the pipeline. Smaller companies can look into possible partnerships outside their jurisdiction, at the same time creating positive opportunities for the smaller and more agile service providers or solution teams to compete with big players.   
  • The outsourcing industry is strongly client-driven. Jonathan reveals that clients are asking for more at the least cost and this has challenged the Philippines’ service providers to be more creative with disruptive technologies. With the growing millennials entering the workforce, given the needed support and right environment, the Philippines can transition into a tech community.

Key Notes

  • The growing acceptance of service geographies has removed boundaries to opportunities to do business with the world market.
  • MSME’s can use technology as a great equalizer and there is a highly positive outlook for agile service providers or solutions team breaking into disruptive technologies.
  • The outsourcing industry is strongly client-driven and clients are asking for more value for their money.

Reference
outsourceaccelerator.com/211

jdl@springvalley.tech


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