Outsourcing News for July 2012
BPAP Pleased over US Anti-outsourcing Bill’s Rejection
by: Sarah Joson
Tuesday, July 31, 2012 | Outsourcing News | Comments (0)
The bill was unable to get enough votes to be approved with 56-42, and was dismissed by the US Senate.
The act aims to provide more employment opportunities for people in the US. However, companies that are moving jobs offshore will no longer receive tax breaks and other benefits from the US government.
The outsourcing process was seen to have helped US businesses to stay afloat during trying times. In fact, Hernandez added that outsourcing has little to do with job losses in the US. Instead, it helps those businesses reallocate resources instead of spending them on additional personnel.
Hernandez highlighted several points from a study done by Matthew Slaughter, an economist at Dartmouth’s Tuck School of Business. He stated that for every job subcontracted abroad, at least two more are created in the US.
The annual revenue of the outsourcing industry in the Philippines is predicted to grow $25 billion and provide 1.3 million jobs. In 2011, the IT-BPO industry contributed $11 billion in revenue and employed about 640,000 Filipinos.
Source:
http://www.mb.com.ph/
Outsourcing Activity Drops in the EMEA Region
by: Sarah Joson
Monday, July 30, 2012 | Outsourcing News | Comments (0)
According to the EMEA (Europe, the Middle East, and Africa) TPI Index released by the Information Services Group (ISG), the volume of outsourcing deals has declined 29 percent over the years. ISG added that the total contract value dropped 21 percent during 2011’s Q2 up to present. For this year alone, outsourcing deals dropped 11 percent during Q2.
Two outsourcing segments were identified at ComputerworldUK as to have noticeably dropped in total contract value. IT outsourcing (ITO) posted a 26 percent decline and dropped to €9.1 billion. On the other hand, business process outsourcing (BPO) fell to €5.1 billion, a 27 percent decline.
Duncan Aitchison, EMEA Partner at ISG, said the situation is driven by the lack of mega-deal activity and fewer contract deals in general - even small ones. He added that there is still a possibility for the UK to recover as he sees that companies based in the region will turn to multi-sourcing to resolve outsourcing issues.
Meanwhile, the UK region was hit hard by the unstable economy in the eurozone with outsourcing deals dropping 16 percent year-on-year. KPGM Institute noted that those who are planning to outsource have in fact dropped 25 percent from 2010. Moreover, 12 percent were not happy with their service provider, while 46 percent remain unsure.
Mega ITO Deals Awarded to Emerging Markets
by: Sarah Joson
Wednesday, July 25, 2012 | Outsourcing News | Comments (0)
John Keppel, Partner and President of Research and Managed Services at ISG, said mega-deal activity varies almost every quarter, but the offshoring destinations are noteworthy. He added that emerging markets will shape the future of outsourcing and that the US and Western Europe have a major influence on the impending restructuring activity within the sector.
Moreover, 30 percent of the mega ITO deals’ global contract value amounting to $6.3 billion awarded in Q2 2012 were from the telecom, banking, and consumer goods industries. Mega-partnerships with annual contracts valued $100 million or more were also initiated during the second quarter.
Source:
http://news.idg.no/
IT-BPO Seen to Drive PH Economic Growth
by: Sarah Joson
Tuesday, July 24, 2012 | Outsourcing News | Comments (0)
He added that the IT-BPO industry’s robust state was able to go beyond the previous predictions based on the public-private partnership [PPP].
Furthermore, the senator shared information from the Business Processing Association of the Philippines (BPAP) which stated that the IT-BPO industry of the country was able to grow 24 percent from 2010, posted $11 billion in revenue in 2011, and provided 638,000 or 22 percent more jobs.
BPAP also anticipates that the industry will contribute $25 billion until 2016, and account for nine percent of the country’s gross domestic product (GDP). It will also represent 10 percent of the global IT-BPO market and provide 1.3 million jobs to Filipinos.
Angara noted that the IT-BPO sector rapidly grew in terms of work force and revenues over the past decade and has become one of the leading sources of jobs. He recommended that the government should exert extra effort to maximize the industry to its full potential.
Source:
http://www.abs-cbnnews.com/
PH Posts Low Services Exports, though BPO Stays Strong
by: Sarah Joson
Monday, July 23, 2012 | Outsourcing News | Comments (0)
Processes like BPO, financial services, tourism, transportation, as well as shipping and telecommunications make up the country’s commercial services export segment. It posted an 8.9% growth rate for this year’s first quarter, but was outdone by fellow Asian regions such as Indonesia, Malaysia, Singapore, and Thailand.
During the first quarter of 2011, the Philippines traded $3.8 billion worth of commercial services, while it reached $4.14 billion in the same period this year. Meanwhile, the Southeast Asian region was led by Singapore with $28.16 billion. Thailand posted $11.9 billion, Malaysia with $9.1 billion, and Indonesia with $5.6 billion.
The country was still at the bottom in terms of importing. Last year, the country imported $2.78 billion worth of services for the first quarter, whereas it increased 7.9%, reaching $3 billion in the same period this year. Nearby countries like Indonesia posted $8 billion, Malaysia with $10.3 billion, Thailand with $12.7 billion, while Singapore posted the largest figure at $27.5 billion.
The data also stated that the country’s commercial services surpassed the global rates in exports (3%) and imports (5%).
Source:
http://www.bworldonline.com/