Outsourcing News for January 2012
PH BPO Sector Unfazed by Obama’s Anti-outsourcing Efforts
by: Sarah Joson
Tuesday, January 31, 2012 | Outsourcing News | Comments (0)
Martin Crisostomo, BPAP’s Spokesperson, stated that business process outsourcing is no longer a mere tool or a solution for businesses to stay afloat, but is now considered as a major factor to stay competitive. Furthermore, he strongly believes that outsourcing is here to stay and is now part of globalization.
In his State of the Union address, Pres. Obama said companies that are providing jobs to US citizens should be rewarded and prioritized, and not those businesses that transfer processes to offshore locations. Benefits such as tax deduction shouldn’t be given to firms that outsource work overseas, but should be given to companies that bring jobs back home.
Source:
http://www.abs-cbnnews.com/
India’s Nasscom Predicts Slow Activity in Software Exports
by: Sarah Joson
Monday, January 30, 2012 | Outsourcing News | Comments (0)
According to a Nasscom official, there’s a possibility that the growth rate prediction for this year will not be surpassed, though a double-digit growth for 2012’s fiscal year would still be attainable.
For this year, Nasscom members such as Infosys, Tata Consultancy Services, and Wipro are believed to be having a hard time in explaining the situation and are still in the process of negotiating, when in fact the organization’s officials are usually ready with a forecast by this time of the year.
Another Nasscom official added that they are still waiting for the revenue forecasts from companies, saying it does not look clear, and goal revisions may be in order this year.
There may be a slowdown, but the industry can reach the target for 2011-12. It is expected to post a 16-18 percent growth rate or $70 billion. On the other hand, IT research and advisory firm Gartner has reduced its IT spending predictions from 4.6 percent to 3.7 percent.
Meanwhile, Infosys Chief Financial Officer V Blakrishnan assumed that clients are now more cautious when it comes to IT spending. This has led to an indefinite forecast for the sector.
Source:
http://economictimes.indiatimes.com/
UK Investments to Strengthen Outsourcing in SE Asia
by: Sarah Joson
Friday, January 27, 2012 | Outsourcing News | Comments (0)
As firms look out for the status of Europe’s dwindling economy, BusinessMirror anticipates that private investments, particularly outsourced finance and legal services made by UK-based firms to the Philippines, India, and other Southeast Asian countries, will dramatically increase.
Southeast Asia is being eyed by UK firms as a refuge for diversified investments, said an official of the UK Trade and Investment. The official added that it is improbable for UK officials to restrict private companies from outsourcing overseas, like the pending bill in US that discourages companies to move business functions offshore.
Meanwhile, Filipino nurses in the UK were reassured by the official that amidst the crisis, jobs will not be lost. Nearly 600,000 business process outsourcing (BPO) employees in the Philippines are concerned over the result of the anti-outsourcing bill, which is strongly supported by US President Obama.
Indian firm Infosys got 14 European clients, with two being the largest deals in the $500-million range. TCS landed a total of 10 large deals, including four European contracts. HCL, on the other hand, got 18 large contracts valued at $1 billion.
Source:
http://www.bpowatchindia.com/
Barack Obama Urges US firms to Insource
by: Sarah Joson
Thursday, January 26, 2012 | Outsourcing News | Comments (0)
The President harked back to the day before recession immobilized the economy, when technology was merely being used by firms and then was gradually adopted, resulting to loss in job opportunities. He said the country will not go back to a weak economy brought about by outsourcing, debt, and fake profits.
Obama shared a proposition wherein firms that are providing jobs will be rewarded and those that are outsourcing offshore will not get benefits like tax deductions.
However, software coding and computer hardware management jobs will likely be outsourced offshore since majority of US’ talent pool are not equipped with such skills.
Som Mittal , President of Indian software industry body Nasscom, said the IT industry of India greatly helps in building innovation to the US economy, and he is hopeful that rebuilding US would lead to desired results.
Source:
http://economictimes.indiatimes.com/
PH Foreign Investments could Reach $75B this Year
by: Sarah Joson
Wednesday, January 25, 2012 | Outsourcing News | Comments (0)
The group presented 471 recommendations to boost the growth of the Philippine economy, including the seven major industries, to Malacañang. The recommendations identified agribusiness, business process outsourcing (BPO), creative industries, infrastructure, manufacturing and logistics, mining and tourism, medical travel, and retirement as the “Seven Big Winner Sectors” of the country’s economy.
Senior Adviser of the American Chamber of Commerce John Forbes believes that flow of foreign investments to the country will improve this year. In fact, there is already growth in the number of inquiries from other countries.
He added that one of the key factors that clearly help lift investor confidence to the Philippines is the unwavering support shown by the government, specifically the recommendations entitled Arangkada Philippines 2010 submitted by the JFC.
JFC is set to present a 130-page First Anniversary Assessment which will show the progress of the Arangkada 2010 and 471 recommendations at the Grand Ballroom of Marriott Hotel.
Source:
http://www.abs-cbnnews.com/