MicroSourcing - Outsourcing News
by: Sarah Joson
Having a young workforce and strong support from the government reinforces the position of the Philippines as one of the top countries for business process outsourcing (BPO, or IT-BPO) services, according to Information Technology and Business Process Association of the Philippines (IBPAP) Senior Executive Director Gillian Joyce Virata.
Virata said BPO companies consider the Philippines and India in terms of having an educated workforce at competitive rates. Moreover, she noted that they are constantly coordinating with two to three firms every week, proving that the Philippines is an ideal offshore outsourcing destination.
Tholons, a globalization and investment consultancy firm, ranked Manila as the third destination in its top 100 global destinations list. The organization also mentioned the continuous effort of the Philippine IT-BPO industry in maintaining its position in voice-based outsourcing processes while venturing into other offerings such as healthcare information management (HIM)outsourcing , IT outsourcing, software development, game development, and animation.
by: Sarah Joson
During the recent World Economic Forum (WEF) in East Asia, President Benigno Aquino III said the vigorous economic environment and stable political climate of the Philippines are making it a prime destination for investments.
The President identified tourism, infrastructure development, and agriculture as some of the key industries that investors can look into. Moreover, he highlighted the continuous efforts of his government in creating a better business environment for investors, minimizing regulatory risks, and providing equal advantages and opportunities for the public and private sectors.
President Aquino also talked about the economic vitality of the Philippines in a conference attended by 200 businessmen and organized by Ayala Corporation. He identified low inflation and borrowing rates, various growth opportunities, supportive government, and a loyal and creative workforce.
Moreover, he noted that by forming partnerships, the country, across all sectors and backgrounds, will move forward as a whole.
With the changes made by the President, particularly with corruption, the Philippines is now in a favourable position in attracting new investors. He said the country’s success has already received various names such as the brightest spark in Southeast Asia, Asia’s Rising Tiger, and a hotspot.
He also noted that while other countries are experiencing a slowdown, the Philippines saw robust growth and has even received investment grade ratings from two renowned rating agencies.
by: Sarah Joson
One of the key revenue- and employment-generating sectors in the Philippines is the information technology - business process outsourcing (IT-BPO). According to the President and CEO of the Information Technology and Business Process Association of the Philippines (IBPAP), Jomari Mercado, the outsourcing sector contributed nearly US$13.2 billion in export revenues last year, a 19 percent increase from 2011. It was also found that the sector created 137, 066 more jobs by year end, reaching a total of 776,794.
Meanwhile, the healthcare information management segment was found to have posted the highest increase in employment last year.
A report done by the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP) indicated that employment in the healthcare outsourcing sector increased 80 percent in 2012, reaching 45,000. Revenues contributed by the sector also grew 66 percent to $460 million.
Another sector which showed noteworthy growth is game development. Alvin Juban, President of the Game Developers Association of the Philippines (GDAP), said the game development industry’s revenues grew three-fold from $14 million in 2011 to $50 million in 2012 and employed 3,500.
The call center segment is still the leading job producer in the outsourcing sector.
by: Sarah Joson
TheInformation Technology and Business Process Association of the Philippines (IBPAP) recently stated that the local business process outsourcing (BPO) industry was able to achieve the jobs target for 2012 -even surpassing the projection of 772,000 jobs produced with 776,794, which is 21 percent higher than the predicted figures.
Of the total jobs produced by the BPO sector, almost two-thirds were from the call center segment.
According to IBPAP President and Chief Executive Jose Mari P. Mercado, the industry is right on target and is well on its way in reaching the 2016 employment goal which is 1.3 million.
Moreover, IBPAP said revenues last year, which amounted to $13.2 billion, marginally surpassed the $13 billion target. The revenue target for 2016 is $25 billion.
Mercado noted that in order for the sector to sustain its growth, it is crucial to have a strong partnership between the BPO industry and the local government. The Aquino administration is active in showing its unceasing support by coming up with programs and laws that are designed to help the industry.
by: Sarah Joson
According to credit rating agency Moody’s Investor Service, the developments in the economic environment of the Philippines during the first six months of 2013 are "credit positive". The organization recently dubbed the country as "one of the world’s fastest growing economies" and "Asia’s rising star".
Moody’s is one of the top three credit rating firms in the world, together with Fitch and Standard & Poor’s which have already given the country investment grade ratings. Moreover, Moody’s upgraded the country’s rating from Ba2 to Ba1 due to stronger performance of the local economy. However, the rating is still below investment grade.
After the global recession few years back, the Philippines is one of the few that received an investment rating upgrade in 2012.
Christian de Guzman, Vice-president and Senior Analyst for the Sovereign Risk Group at Moody’s, recently said the bullish economy of the Philippines, positive financial position, and the recent elections are all credit positive for the country.
The first-quarter GDP increased 7.8 percent year-on-year due to fixed capital movement and private consumption. Furthermore, the government cited the fiscal results for April, which produced a surplus of P36.8 billion, and is said to be the highest surplus on record.