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Wow Philippines!
By Michael Alan Hamlin
May 19, 2003

President Gloria Macapagal-Arroyo is in the United States to wow over U.S. president George W. Bush, congress, and potential tourists and foreign investors. Her communications arsenal includes the ever-bubbly tourism secretary Richard Gordon, special advisor and Information Technology and E-Commerce Council (ITECC) co-chair Roberto R. Romulo, and Department of Trade & Industry secretary and ITECC co-chair Manuel A. Roxas II. ITECC is a partnership between the private and public sectors intended to advise and support government in the development of the ICT sector.

Gordon is riding a wave of good will associated with his Wow Philippines campaign, which has received highly positive reviews both at home and abroad. Although its impact is limited by budget restrictions, the campaign is - anecdotally at least - said to have made a significant contribution to boosting domestic tourism, and helped arrest what may still turn out to be a significant erosion in international arrivals as a result of negative news associated with rebel insurgencies, the SARS (Severe Acute Respiratory Syndrome) panic, and general economic malaise in Europe and the U.S., made worse by the war in Iraq.

I'm not sure what Gordon has planned for the trip in the way of impressing his prospective customers - his department organized concerts by Pilita Corales last time around for U.S.-based Filipinos in an attempt to lure them home for vacation - the quality, professionalism, and compelling content that characterize the campaign thus far suggest at least the potential for further "wowing" tourists. And the timing is good. Peak season begins in November, so there's plenty of time to plan at trip, but not too much that plans are put off and forgotten.

Romulo and Roxas - who's barely below-the-surface feud has reached legendary proportion - have far less certain prospects for success, at least as a direct result of the impact of their road shows. Romulo, according to insiders, has apparently appointed himself IT marketing czar. It's unclear whether Ms. Arroyo intended for him to assume that role when she appointed him special advisor for information technology. One would assume he was meant to advise government on its own IT infrastructure plans.

But Romulo has never been an IT strategist. He's a salesman, with a long history with IBM in Asia. So sliding into a sales and marketing role was probably an inevitable development evolving from his appointment. As a result, networking government agencies - with no champion - hasn't gone anywhere. Instead government has e-Services champions out the kazoo.

The original e-Services marketing initiative was conceived and developed by DTI and two of its attached agencies - the Board of Investment and Center for International Trade Expositions & Missions - during the Estrada administration. Roxas, who has straddled the Estrada and Arroyo administrations, appointed former assistant secretary Toby Monsod to champion the project. She resigned last year to complete her doctorate studies at the University of the Philippines.

Largely as a result of the efforts of these agencies - which include promotions, "sales" and after-care service - the Philippines has rather quickly emerged as an internationally acknowledged center for such things as contact centers, medical transcription, and business process outsourcing. Even software, which labored in relative obscurity for years, is getting new respect and the sector is not infrequently compared to its much-admired and much larger rival, India.

At the time DTI was doing these things most successfully, Romulo was busy running around trying to develop his own marketing program. He chose to set up a foundation -Digital Philippines - "to be the authoritative private sector point-reference on the ICT industry and its development in the Philippines," according to its website. Why a government official would even be involved in a "solely" private-sector initiative is curious, to say the least.

Romulo's friends say that it was meant to emulate NASSCOM, a site setup by the National Association of Software & Services Companies in India. NASSCOM has been instrumental in marketing India's IT enterprises to the world. But there are at least two reasons why Digital Philippines has little to do with NASSCOM. First, NASSCOM was a genuine collective effort by India's enterprises. It was not set up by a government executive who has never had a job in a local IT enterprise. Second, it works closely with government. Digital Philippines has been a device to go around government, not work with it, at least when it comes to DTI and its attached agencies.

Not surprisingly, Digital Philippines hasn't gone anywhere, but Romulo isn't giving up. Ostensibly on the recommendation of Agile, Romulo has now set up yet another private-sector body, this one called Outsource Philippines. Outsource Philippines is going to be launched in real style in the Jade Room at the Waldorf Astoria Hotel this week in New York (by Digital Philippines!). Its purpose is to promote BPO investment into the Philippines, and the launch will include testimonials by representatives of Citibank, AIG, and P&G. The idea is that they will convince U.S. executives to outsource to the Philippines.

That's not a bad idea, although it is certainly likely to make for a pretty dry meeting. But it is simply absurd that a developing economy with very limited resources now has three organizations purporting to be driving ICT collaboration with government - all led by the same fellow (ITECC, Digital Philippines, Outsource Philippines). What's even more ridiculous is that the government organizations that have actually accomplished something in the way of successfully promoting e-Services have been alienated by these efforts, according to DTI insiders.

Fortunately, the Philippines will continue to attract e-Services investor interest, and the New York launch may generate positive results. But all these organizations, their conflicting websites, and their contrasting messages are bound to confuse, dismay, and dilute the brand. That's especially so when the agencies which approve investment incentives and provide after care service are independently marketing the Philippines. Wow.

(Michael Alan Hamlin is the managing director of consultancy TeamAsia and the author of three books on Asian economies and companies. His latest book is Marketing Asian Places, of which he is a co-author (Wiley, 2001), and he is currently at work on High Visibility: The Making and Marketing of Asian Professionals into Celebrities. Write him at mahamlin@teamasia.com.).

Copyright © 2003 Michael Alan Hamlin. All Rights Reserved.

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