Outsourcing News
JP Morgan Expects more Foreign Investments to PH this Year
by: Sarah Joson
Friday, February 03, 2012 | Outsourcing News | Comments (0)
JP Morgan predicts a four-percent increase in the country’s gross domestic product (GDP). The inflation rate is likewise expected to be at four percent by the end of 2012.
Gilbert Lopez, the Philippines equity strategist of JP Morgan, anticipates a 10 to 12 percent growth rate for this year’s revenues, citing banks and conglomerates as sound choices for investments. The Bank of the Philippine Islands, Metrobank, Security Bank, Ayala Corp., and Metro Pacific are likely to become the largest gainers.
Bangko Sentral Governor Amando Tetangco Jr. said capital funds were allotted to government securities and local stocks last year. These led to positive effects to the market’s liquidity and funding. Meanwhile, Tetangco noted that sectors should not be comfortable with the country’s economic standing and large number of investors, saying it is important to be prepared in case the business environment changes.
He added that regardless of the economic issues in Europe, remittances from overseas Filipino workers may reach $21 billion this year.
Source:
http://www.manilastandardtoday.com/
PH IT-BPO Eyes Top Spot in other Outsourcing Areas
by: Sarah Joson
Thursday, February 02, 2012 | Outsourcing News | Comments (0)
About five percent of the Philippine GDP last year was from the IT-BPO industry. Moreover, with the Philippines’ recent domination of the voice-based services segment, $11 billion worth of export revenues, 640,000 direct jobs, and around 1.5 million indirect jobs contributed by the IT-BPO sector, BPAP wants the country to maintain and reinforce its position.
Speaking in behalf of DOST-ICTO, Deputy Executive Director Alejandro Melchor wishes to take over the British and Australian markets as well as develop the country to become the frontrunner in the four niches. Furthermore, he says the Philippines’ market share for Information Technology Outsourcing, Engineering Services Outsourcing, and Multilingual BPO will be doubled in 2016.
BPAP Chairman Alfredo Ayala is confident that the 2016 target of $25 billion in revenues, 1.3 million direct jobs, and more than three million indirect jobs can be attained with stronger partnership with the government.
Source:
http://manilatimes.net/
PH BPO Revenues Predicted to Reach $25B by 2016
by: Sarah Joson
Wednesday, February 01, 2012 | Outsourcing News | Comments (0)
Department of Science and Technology-Information & Communication Technology Office (DOST-ICTO) Secretary Mario G. Montejo said there’s a great possibility that the Philippines can lead worldwide, while Deputy Executive Director Alejandro P. Melchor III said the BPO industry is resilient against challenges in the economy - whether it is recession or politics. Furthermore, he highlighted that the industry grew 26% in 2008 and 17% in 2009, even during the global economic downturn.
In 2011, the industry was valued at $10.9 billion and employed 640,000.
Business Processing Association of the Philippines (BPAP) Chairman Fred Ayala is optimistic that the BPO industry will reach its goals this year. He added that it is important to stay competitive since there are other destinations that are poised to make a mark in the outsourcing arena.
The Philippines is already the top provider for voice-based processes, but it is believed that tapping other mainstream niches such as healthcare information management, finance and accounting, human resources, and creative process will greatly contribute to the growth of the industry.
Meanwhile, programs such as the ICT Workforce Capability Development Program, Next Wave Cities Program, and the Domestic ICT Industry Development Program were created by DOST-ICTO to address talent issues and further improve the industry.
Source:
http://www.abs-cbnnews.com/
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/
Gadget Rush Referral Promo Winners Announced
by: Karen Cayamanda
Friday, January 27, 2012 | Company News | Comments (1)
MicroSourcing’s Manpower Acquisition Department named Eve Hashalene Ostonal (MMP) and Junette Abrera (WGP) as the winners of the Gadget Rush Referral Promo.
They got a brand new Samsung Galaxy Tab 10.1 each for submitting qualified referrals for Senior .Net Developer and Senior Mobile Applications Developer positions.
The Gadget Rush Referral Promo was launched to increase MicroSourcing’s pool of qualified candidates and help in meeting the hiring requirements of the company and its clients by strategically tapping the employees’ network of referrals.
From November 15 to December 23, 2011, employees were encouraged to refer their friends and acquaintances who might be qualified for the following positions: PHP Developers, .NET Developers, C++ Developers, Java Developers, Android App Developers, and iOS App Developers.
There is a corresponding point for every job profile, and the employee with the most number of points at the end of the promo period would get the prize.
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/
Talent Supply Remains a Challenge for PH IT-BPO Growth
by: Sarah Joson
Tuesday, January 24, 2012 | Outsourcing News | Comments (0)
This may even result to a monotonous growth predicted to be between 19 and 21 percent for 2012, whereas the Business Processing Outsourcing Association of the Philippines (BPAP) assessed a 20-percent growth for the previous year.
Vives said since the country’s BPO sector is in the process of moving towards providing high-end services, companies nowadays turn to hiring non-Filipino candidates to fill higher-value positions. He added that experienced local IT workers are beginning to see and grab more opportunities in other ASEAN countries like Malaysia, which can lead to an increase in labor costs in the country.
XMG also predicts that due to the high attrition rate among high school and college students, a one-percent decline in the number of educated candidates is possible within the next five years.
Meanwhile, global recession is anticipated to have a minimal effect on the country’s call center sector, and the economic woes in Europe may push companies to invest in outsourcing to the Philippines.
BPAP and CHEd have both signed a five-year partnership to improve the country’s curricula and provide training programs for teachers. A “BPO 101” class is proposed to be included to the educational system and a standard global competitive test (GCAT) for call center hopefuls is set to be implemented as an added measure.
Source:
http://www.malaya.com.ph/