MicroSourcing.com News Feed

KPMG Sees Shift in Outsourcing Landscape

Thu, 17 May 2012 00:00:00 -0800

The demand for outsourcing services is nowhere near slowing down, and KPMG Director Claudio Altini sees that the format of the outsourcing industry continues to evolve. Gone are the days when cost reduction was the only reason companies outsource business processes, because they are now looking for higher value for their money. Even with the depressing condition of Europe's economy, outsourcing is still seen as a viable business solution.

Companies are now more cautious when it comes to selecting providers and are going beyond margin and overhead issues. Altini said customers are looking for rates, results, and responsibilities, which vendors can use as a pattern for business proposals. He adds that companies are looking for flexible terms that can be changed as the company expands. They are also seeking solutions that are suitable for the needs of the company, without going over budget.

The cheapest outsourcing deal is no longer attractive nowadays. The best way to land decent deals is to simplify and innovate processes according to the needs of the client.

Source:
http://www.channelbiz.co.uk/

Expert Says BPO Firms Need Disaster Recovery Plan

Tue, 15 May 2012 00:00:00 -0800

During the Business Continuity and Disaster Recovery Event sponsored by inContact, Rick Lowe, Chairman of Metro Manila-based R Lowe Services that specializes in information technology, marketing, and disaster recovery services, stressed that business process outsourcing (BPO) firms need to have disaster recovery programs (DRP) to survive man-made and natural disasters.

A study from global research and consultancy firm Gartner shows that less than 10 percent of BPO companies have integrated a recovery and continuity process, and only 35 percent of BPO facilities have complete DRPs.

Other topics that were tackled by nearly 50 IT executives from various companies during the conference include ways to disseminate information to customers if an emergency comes up, communication SOP with employees and external parties involved, and what local government agencies can do for the industry in times of disaster.

Lowe has worked with renowned companies such as eBay, Yahoo, Lycos, Dell, and other large corporations, building his 20-year career in information technology. He was also Vice-president for IT operations at Telus International-Philippines.

Source:
http://www.mb.com.ph/

Outsourcing Misconstrued by the British Public

Mon, 14 May 2012 00:00:00 -0800

There seems to be a discrepancy between the survey commissioned by the National Outsourcing Association (NOA) entitled 'Public Perception of Outsourcing' and the study done by the Business Services Association (BSA). According to the survey by NOA, outsourcing is perceived by the public as a detrimental component to the British economy, while the latter showed that it contributed eight percent to UK's GDP, �14 billion in business taxes, and �21 billion outsourcers' income tax.

NOA believes that the respondents have negative perceptions of outsourcing due to lack of information about the process. More than half (53 percent) believe that outsourcing is responsible for job losses, 65 percent associate it with cost reduction, and 45 percent link it to India. Moreover, only 19 percent believe that outsourcing is a solution for the UK's current economic state.

NOA also stated that the public often confuse outsourcing with offshore captive projects. With offshore captives, there's typically no outsourcing involved and the operation is fully owned by the main company. In fact, only 27 percent of the respondents know the difference.

Even if the British public are vocal of their feelings towards the strategy, NOA Chairman Martyn Hart said the association can help the public understand that outsourcing will help businesses and the nation grow.

Source:
http://www.pcadvisor.co.uk/

Cebu's ITO Sector Rapidly Growing

Fri, 11 May 2012 00:00:00 -0800

The chairman of Cebu Educational Development Foundation of Information Technology (CEDF-IT), Francis O. Monera, said the information technology and business process outsourcing (IT-BPO) industry of Cebu is at a bullish state as it is �constantly growing� and may outdo its performance in 2011, wherein the sector posted a 20% growth rate.

Monera noted that with the growth of the industry last year, 60,000 jobs were provided at the Cebu IT Park. He added that with the developments amongst BPO companies in the region, rapid establishment of BPO offices in the IT Park, and CAGR of 20 percent, it is possible for the sector to post a higher growth rate this year.

Moreover, Monera stated that several programs for educational institutions in Cebu are being organized by the CEDF-IT. The programs are set to help produce skilled workers and improve the growth rate of the IT-BPO sector in the province.

Source:
http://ph.news.yahoo.com/

Pres. Aquino Optimistic that PH BPO will reach $25B

Thu, 10 May 2012 00:00:00 -0800

During President Benigno Aquino III's speech at the groundbreaking ceremony of a $50-million facility owned by Sutherland Services in Carmona, Cavite, he said the business process outsourcing (BPO) sector will post revenues worth $25 billion and provide 1.3 million direct jobs and 3.2 million indirect jobs at the end of his term in 2016.

Aquino thanked the BPO sector which plays an important role in the country's economic growth by providing employment opportunities to Filipinos. He added that his administration is improving the talent pool of the country. One of the initiatives is providing an Industry-based Training for Work Scholarship Program for those who want to enter the BPO workforce. The government had allocated half a billion pesos to this program. More than Php200 million have already been disbursed and through the Technical Education and Skills Development Authority (TESDA), the program was able to train almost 36,000 Filipinos.

The BPO sector posted $11 billion in revenues last year and was able to provide 640,000 direct jobs.

Sutherland Global currently employs 13,000 to 15,000 workers. The recently inaugurated facility has a capacity of 8,000 seats and is expected to provide 24,000 jobs.

Source:
http://www.gmanetwork.com/

Gartner: Top Indian IT Firms Post Double-digit Growth

Wed, 9 May 2012 00:00:00 -0800

According to outsourcing consultancy firm Gartner Inc., India's top five IT services providers posted a bullish growth rate of 23.8%. However, the global market for IT services posted single-digit growth at 7.7%.

Of the five IT services providers, Cognizant posted the highest growth rate with 33.3%, taking Wipro's spot as the third largest Indian IT vendor. The other three are TCS, Infosys, and HCL Technologies.

Gartner's principal research analyst, Arup Roy, said 2011 marked a change in the purchasing behaviour of European clients towards offshore services. Moreover, comparing the market in Western Europe and US for IT services, Indian providers find it harder to gain traction on the former. Collectively, the five firms increased their market share in the region from 2.3% in 2010 to 2.8% in 2011.

The growth rates of Tier 2 and Tier 3 vendors were lower than those in the Tier 1 range, but some companies managed to outdo those in their bracket such as Syntel which grew 21%, and Genpact with a 27% growth rate. Meanwhile, smaller players were presenting to investors that IT outsourcing is more than just cutting costs.

Roy added that the five Indian IT vendors are slowly positioning themselves among the large multinational players in the market. Also, they were able to accumulate large outsourcing deals over the years, collectively valued $100 million. They have also diversified their service offerings and expanded their portfolios by offering business process outsourcing (BPO) services, cloud and analytics services, as well as infrastructure services.

Source:
http://economictimes.indiatimes.com/

AU BPO Driven by Document Management

Tue, 8 May 2012 00:00:00 -0800

According to a study done for the Australian Business Process and Outsourcing Association, most business functions sent out by Australian companies are related to printing/document management, propelling the country's business process outsourcing (BPO) sector.

Forty-four percent of the 216 companies that participated in the study stated that they are currently outsourcing at least one business process. Print and document management (PDM) is the top business process being outsourced by Australian firms (18%). This was followed by human resource (HR) process at 15%, which is predicted to grow 23 percent in a year or so, and finance and accounting (F&A) at 13%.

The report also states that BPO transactions from large Australian companies employing 1,000 to 5,000 workers will definitely increase. This group accounts for one-third of the survey participants.

Russell Ives, Director of Global Process Services at IBM Growth Markets, said the report clearly shows that Australia's BPO industry has indeed evolved and diversified over the past 10 years. Outsourcing has become more than just a tool to cut costs - it has enabled companies to improve business strategies.

Ives also noted that business executives are looking into the benefits of outsourcing which include improvement in financial flexibility, better feedback from customers, more opportunities, tapping new markets, and maximizing of prospects.

Aside from the traditional business processes in outsourcing, the adoption of the cloud is now increasing as 35 percent of the companies are considering the use of the cloud. Furthermore, 15 percent have already integrated cloud computing as an outsourcing strategy.

Source:
http://idm.net.au/

India Still Takes the Lead in Global IT-BPO

Mon, 7 May 2012 00:00:00 -0800

Sachin Pilot, Minister of State for Communications and IT in India, said even the Philippines' outsourcing industry posted significant growth, India still takes the lead, posting $15.9 billion in outsourcing revenues during 2011-2012. In 2010-2011, the country's outsourcing industry posted $14.2 billion.

Meanwhile, a study done by global research firm Gartner highlighted that India is gaining more foothold in the outsourcing market as it offers diverse business process outsourcing (BPO) services to clients. The study also indicated that Indian service providers are open to adjust services based on the demands of clients, and new business pricing models.

Moreover, the National Association of Software and Services Companies (Nasscom) came up with a forum in hopes of addressing challenges such as retaining the top position, generating a larger talent pool equipped for BPO, and widespread preparation for KPO and legal process outsourcing. Pilot said grants and exemptions provided by the Indian Government further propel the industry's growth.

Source:
http://www.asianage.com/

ADB Grant to Boost PH IT-BPO Sector

Fri, 4 May 2012 00:00:00 -0800

The information technology-business process outsourcing (IT-BPO) sector is set to receive $650,000 worth of technical assistance from Asian Development Bank (ADB) and the Philippine government. The partnership aims to reinforce the expanding IT-BPO sector, as stated in the Memorandum of Understanding (MOU) which was signed during the 45th ADB Annual Meeting of the Board of Governors in Manila.

The funds are set to be used on �knowledge hubs� that will be constructed in select educational institutions all over the country. These hubs are for higher education institutions (HEI) - to prepare and develop a learning environment for those who are interested in the IT-BPO sector. The hubs will provide online training for 900 educators and digitized learning and study guides for 3,000 college students.

Of the $650,000, $150,000 will be provided by the Philippine government and $500,000 will come from the Republic of Korea e-Asia and Knowledge Partnership Fund by the ADB.

The MOU indicated that the IT-BPO sector has grown immensely over the years and is one of the top revenue generators of the country. Moreover, the country is recognized as a global leader in voice-based processes and is now shifting to high-end services.

Revenues from the sector reached $11 billion in 2011 and have grown 24 percent from the previous year. It currently employs 638,000 workers.

Source:
http://www.malaya.com.ph/

Bills on Tax Break Removal to Dampen PH BPO Edge

Thu, 3 May 2012 00:00:00 -0800

The business process outsourcing (BPO) industry and other various sectors of the Philippines are facing yet another challenge as bills that seek to remove income tax holidays (ITH) are created.

The Executive Director of Business Processing Association of the Philippines (BPA/P), Martin Antonio S. Crisostomo, pleaded through a position paper for Senate Bills 2142, 2379, and 2755, all of which are designed to limit the government-regulated aids and financial grants for merchandise export-oriented and micro-and small-scale enterprises, to be reviewed and the ITH to be reconsidered.

Crisostomo stressed in the paper that if the ITH incentive is removed, it will affect the country's capability to market itself and attract foreign investors, making neighboring countries the preferred BPO locations. Another factor that might discourage possible investors is the country's high tax rate of 30%, versus Singapore's 17% and 25% for Indonesia, Malaysia, and Vietnam.

Removal of the tax break would also affect the perception of investors as changes in incentives could mean the country is unsure of its policies, and its government is not fully fulfilling its duties. Crisostomo added that the Congress should at least wait for the remaining tax incentives to expire before changing anything in the policy regarding ITH.

Source:
http://www.bworldonline.com/

PH now a Prime Location for Software Services

Wed, 2 May 2012 00:00:00 -0800

The Philippine Software Industry Association (PSIA) said the country is at par with other international �mature locations� for software services as it continues to post significant growth. Moreover, the organization stated that the industry is one of the fastest growing segments of outsourcing, employing close to 50,000 workers in 2011.

Global consulting and advisory firm Everest Group identified the Philippines as a mature location for software services. The country currently has more than 50 software services operators. Other �mature locations� are China, Brazil, India, and Poland.

According to PSIA President Nora Terrado, the key growth drivers of the country's software services sector are extensive transactions with foreign markets and increasing demand for software services.

Terrado added that the research and development activities concerning software and other platforms of technology are propelled by the mass usage of consumers in the country. In fact, last year, the country's software industry was seen to have grown 37 percent, contributing $993 million in revenues.

On the other hand, Terrado said changes should be made regarding low wage rates, unstable employee retention rates, working permit issues, and proper vendor management processes. She stressed that locations that can overcome these challenges will definitely dominate the software services industry.

Source:
http://www.malaya.com.ph/

India Gets Lion's Share of IT-BPO Industry

Tue, 1 May 2012 00:00:00 -0800

In a survey done by Tholons Research, a consultancy agency in Bangalore, India has once again toppled other countries as the global leader of the IT-BPO industry, with revenues reaching $59 billion and covering 51% of the global offshore market.

According to the report, both India and the Philippines have established a solid position in the global outsourcing industry. This can be attributed to their talent pool and revenue share over the years. India's IT-BPO sector has 1.98 million direct employees and 7.5 million indirect employees. On the other hand, the Philippines has recently become the leader of voice-based offshore processes.

Meanwhile, the National Association of Software and Services Companies (Nasscom) stated that for 2011, IT activities reached $574 billion and BPO spending amounted to $158 billion worldwide. However, large global companies are seen to have outsourced only 15% ($110 billion) of the total $732 billion to locations such as the Philippines, India, China and Malaysia. This means there is still more room for growth of the industry.

South East Asia, Latin America, and Africa are expected to cash in on the offshore outsourcing industry by addressing the growing demand of the market.

Source:
http://timesofindia.indiatimes.com/

MicroSourcing Opens New Office at Eastwood City

Mon, 30 Apr 2012 00:00:00 -0800

Here is another great addition to MicroSourcing's ever growing list of milestones: the opening of the new office at MDC 100 Building, Eastwood City Cyberpark. Senior members of the management team, clients, and guests took part in the office blessing last April 26.

MicroSourcing occupies the 32nd floor of MDC 100 Building. It has a total floor area of 960 sqm and capacity of more than 200 seats. The office has a meeting room, conference room, locker area, breakout area, and shared services center.

MDC 100 is a 33-storey building which is built primarily for office space of business process outsourcing (BPO) companies and a wide range of establishments. Its ground floor has retail shops and food establishments which are open 24/7. There is also a revolving restaurant located at the 33rd floor which is right on top of the MicroSourcing office.

The MDC office is the second delivery center of MicroSourcing at Eastwood City. Other delivery centers are at Bonifacio Global City in Taguig, TwoE-com Center at Mall of Asia Complex in Pasay City, and TGU Tower at Cebu IT Park in Cebu City.

MicroSourcing Launches New Website for AU Market

Fri, 27 Apr 2012 00:00:00 -0800

MicroSourcing recently launched www.MicroSourcing.com.au, the company's website created primarily for the Australasian market.

Over the years, MicroSourcing has been serving many clients from Australia and New Zealand, providing outsourcing services and meeting the requirements of businesses of any size. With the growing demand for outsourcing services from Australasia, MicroSourcing has decided to tap the region and explore new opportunities.

www.MicroSourcing.com.au was created primarily to reach out to business owners in Australia and New Zealand and help them make the right outsourcing decision. It aims to provide all the information business owners need when it comes to outsourcing and offshoring to the Philippines.

Site features include a Virtual Tour that shows MicroSourcing's office locations and facilities, company events, as well as its employees and the management team. The site also has a Solutions Finder which is an easy-to-use tool designed to help people determine the right outsourcing solution for their requirements.

MicroSourcing also established a sales and customer relationship office in Sydney, Australia. Headed by General Manager Ash Truscott, the team will be in charge of all business development efforts in the Australasian region.

PH IT Outsourcing Posts Highest Growth Rate in 2011

Wed, 25 Apr 2012 00:00:00 -0800

According to the Business Processing Association of the Philippines (BPAP), the IT outsourcing segment posted a 37% increase in revenues last year, reaching $993 million. The entire outsourcing industry, on the other hand, only grew 24% at $11 billion. The BPAP statement shows that for 2012, more IT deals could be awarded due to the growing demand. The IT outsourcing sector also employed 49,908 IT professionals in 2011.

Meanwhile, new processes such as knowledge process outsourcing (KPO) posted a 24% increase in revenues at $2 million. Furthermore, the non-voice segment employed nearly 130,000 candidates last year.

With the Philippines already established as a call center hub, a strong 21% growth rate was seen last year for the industry at $7.4 billion, getting the lion's share (65%) of the entire BPO sector.

Another growing segment is game development which grew 13%, contributed $8 million, and employed 1,400 workers. For animation, the BPAP statement said a slight drop in contracts was seen last year as competition in back-room animation gets tougher. It posted $128 million in revenues with a workforce of 8,600 in 2011. For the healthcare information management outsourcing, the first survey done by BPAP showed that the segment employed 24,700 and contributed $277 million.

Source:
http://www.bworldonline.com/

100,000 Jobs Up for Grabs on May 1

Wed, 25 Apr 2012 00:00:00 -0800

The Department of Labor and Employment (DOLE) will be holding a Job and Livelihood Fair on May 1, Labor Day, at the World Trade Center in Pasay City.

DOLE Secretary Rosalinda Dimapilis-Baldoz noted that the fair is in line with President Aquino's 16-point Social Contract with the Filipino People. The fair aims to give unemployed Filipinos an opportunity to land a job, and income opportunities for aspiring entrepreneurs.

About 200 companies from industries such as business process outsourcing (BPO), tourism, banking and finance, hotel and restaurant, health and wellness, and construction are expected to participate in the event. Moreover, 75 land-based and 25 sea-based agencies will take part in the job fair to cater to those who are looking for opportunities abroad.

Job fairs will also be held in other regions in the country on the same day, said Baldoz.

According to the Philippine Information Agency (PIA), DOLE Region 10 will conduct job fairs in Misamis Oriental and Cagayan de Oro. DOLE Region 11, on the other hand, is set to offer 12,424 job openings in Davao to give opportunities for over 18,000 graduates.

Source:
http://thepoc.net/breaking-news/

ADB: BPO �not enough� to Alleviate PH Poverty

Mon, 23 Apr 2012 00:00:00 -0800

The latest report from the Asian Development Bank states that in order for the Philippines to maximize economic growth potential, the government should look into manufacturing and not business process outsourcing (BPO).

Norio Usui, ADB's senior country economist and author of the report �Taking the Right Road to Inclusive Growth,� said the volume of jobs created by the BPO segment is not sufficient, as it only accounts for 1 percent of the country's entire labor force and is favourable only for college graduates. He adds that for a more comprehensive growth in different areas of the country's economy, the manufacturing sector should be developed more.

The study likewise highlighted that strategies and plans for the industrial sector should be reinforced, and employment opportunities should be provided for undergrads as well.

Moreover, Usui stated that among the countries in Asia, the Philippines is the only one that has a declining industrial base. In fact, the sector's contributions to the country's GDP dropped from 39 percent in 1980 to 32 percent in 2009.

Meanwhile, Kunio Senga, ADB's director-general for Southeast Asia, said that even with the bullish growth posted by the services sector, issues regarding poverty and unemployment still plague the country.

The ADB believes that in order for the country to recover from poverty, more export products should be developed and the business environment should be made more attractive for investors.

Source:
http://www.manilastandardtoday.com/

MicroSourcing University Relaunched

Fri, 20 Apr 2012 00:00:00 -0800

MicroSourcing University (MSU), the company's virtual learning environment, was re-launched last April 16-20 across all delivery centers to generate more awareness and utilization as well as to promote the site's new user interface and functions.

MSU offers a wide range of modules designed to educate employees about a specific topic needed in their work and/or further hone their skills. There are compulsory courses (MicroStatus Handbook, New Employee Orientation, Information Security Awareness Training Series, etc.), training programs for those who are holding supervisory positions (Sales Training, Core Competency Development, etc.), and free-for-all courses (Skill Refreshers, Sales, Customer Service, etc.).

Prior to the official re-launch, the Training and Development Team headed by Training Supervisor Karla Endaya invited all supervisors and team leaders to undergo an MSU Orientation Session which provided participants a walk-thru of MSU's new look and functions. It also showed the steps on how to assign courses and modules to employees. The session also became an avenue for participants to discuss how to utilize MSU for employee coaching and development.

A raffle was also held for all employees who took part in the re-launch. It coincided with the company's Free Food Friday which is done once a month.

TPI Reveals New IT Deals to Come From Emerging Markets

Thu, 19 Apr 2012 00:00:00 -0800

According to a research done by renowned outsourcing consultancy firm TPI, large IT contracts this year are anticipated to come from emerging markets and not on mature ones like the US and Europe.

Managing director and partner at TPI, Sid Pai, said even if India will benefit from the trend, it is unlikely that it will resound to local software providers. Global companies operating in India like IBM or Accenture are also competing for these deals.

Moreover, MindTree CFO Rostow Ravanan predicts contract renewals this year will reach 300. Ravanan also believes that even if small and large players are up in arms in gaining IT deals, Indian players will be able to win at least 80% of the contracts. The game changer he says would be the price points of global versus local players. On the other hand, an analyst predicts that HCL will land most of the IT deals since the firm is willing to change its price points.

Source:
http://www.dnaindia.com/money/

US Anti-outsourcing Bill Gains Supporters

Wed, 18 Apr 2012 00:00:00 -0800

According to The Indian Express, the Call Centre and Consumer Protection Act now has a total of 106 lawmakers who are the bill's co-sponsors.

The anti-outsourcing bill authored by Congressman Tim Bishop aims to monitor US firms that outsource call center work to offshore locations and keep them from getting federal grants and loans. Bishop hopes that the recent increase in the number of the bill's supporters will push the Committee on Energy and Commerce to hold a hearing on the legislation.

Bishop noted that the law is specifically for firms which are taking advantage of local taxpayers by taking millions of allotted incentives for the local communities. Aside from keeping US firms with offshore operations to get grants, the act, if signed into a law, will also require call center agents to inform callers in the US their location and give them the option to be transferred to a local agent.

Source:
http://www.itweb.co.za/

MicroSourcing Launches Program for Street Children

Wed, 18 Apr 2012 00:00:00 -0800

MicroSourcing believes that it is our responsibility to give back to the community and help the underprivileged. One of the corporate social responsibility initiatives of the company is the Careers for Street Kids program which was launched last March 23.

In cooperation with outsourcing industry body Business Processing Association of the Philippines (BPAP) and charity organization Children's Hour, the PR & Marketing Department, headed by Nona Tajanlangit-Kooijman, launched the Careers for Street Kids program which aims to give career opportunities to street youth by providing them with training programs and helping them find suitable jobs in the business process outsourcing (BPO) industry.

Through the Children's Hour campaign, MicroSourcing employees are encouraged to share at least one hour's worth of their salary in a year. This will be turned over to Virlanie Foundation which will train the street kids to equip them with skills needed for employment. MicroSourcing can hire the beneficiaries of this program, and the employees can serve as mentors to help them in their careers.

PH BPO Posts 24% Growth in 2011

Fri, 13 Apr 2012 00:00:00 -0800

The business process outsourcing (BPO) sector of the Philippines is right on track when it comes to meeting its 2016 goals as it posted a 24% ($11 billion) increase in revenues from 2010 to 2011.

Benedict Hernandez, President and CEO of the Business Processing Association of the Philippines (BPAP), said the figures posted by the sector last year were higher compared to the 20% yearly projection, and bested the 10% to 15% predicted global figures. A 22% increase in jobs was also seen last year, with a total of 638,000.

For the five-year target, Hernandez said the industry is eyeing to reach $25 billion or 9% of the country's GDP. Meanwhile, the BPO sector's largest segment, call center operations, contributed 65% of the industry's total revenues and grew 21% in 2011.

According to Hernandez, one of the key growth drivers for the segment is the strong support from the local government, specifically the P450 million budget for BPO-specific training programs by the Technical Education and Skills Development Authority (TESDA), as well as the support from the Department of Science and Technology (DOST) and Commission on Higher Education.

Source:
http://www.abs-cbnnews.com/

PH BPO Sector Predicted to Grow 15% Every Year

Thu, 12 Apr 2012 00:00:00 -0800

The National Economic and Development Authority (NEDA) said the business process outsourcing (BPO) sector of the Philippines can attain an annual growth rate of 15 percent from 2011 to 2016. With this growth forecast, the Business Processing Association of the Philippines (BPAP) said the sector will be able to create more than three million direct and indirect jobs.

According to Ruperto Majuca, Assistant Director General at NEDA, 15 percent is the closest annual growth projection for the BPO sector from 2011 to 2016, although it could also reach 20 percent if public and private partnerships are reinforced, or fall to nine percent if the global market weakens.

During a meeting with President Benigno Aquino III last week, Majuca said the economic crisis in Europe and the US' delayed recovery from recession will not affect the predicted growth of the global BPO market. He added that those types of economic challenges push foreign companies to outsource work to countries such as the Philippines with relatively lower labor and operational costs.

NEDA said faster establishment of the so-called Next-Wave cities, improving the quality and quantity of talent pool, and further enhancing the business environment to make it more attractive for offshoring are efforts that should be made to maximize the growth potential of the BPO sector.

Source:

http://www.abs-cbnnews.com/

MicroSourcing Opens Office at Mall of Asia Complex

Wed, 11 Apr 2012 00:00:00 -0800

Here's another great addition to MicroSourcing's growing list of office locations: a few months after starting operations in Cebu, MicroSourcing opened another delivery center - this time at the Mall of Asia Complex in Pasay City last January.

The office is at the 10th floor of TwoE-comCenter, a modern design structure that was built primarily to meet the specific needs of business process outsourcing (BPO) companies. It offers an amazing view of Manila Bay especially through the structure's archway that connects the two buildings.

TwoE-comCenter is a PEZA-registered building which offers high quality electrical and telecommunication setups needed by BPO companies. It also has environment-friendly qualities such as insulated glass units and energy-saving air conditioning units.

In a span of about seven years, MicroSourcing has successfully established operations in various strategic outsourcing hubs. At the time of writing, it has a total of four office locations: three in Metro Manila (Eastwood City, Bonifacio Global City, and Mall of Asia Complex) and one in Cebu.

PH IT-BPO Posts 21.8% Growth in 2010

Wed, 11 Apr 2012 00:00:00 -0800

A survey conducted by the Bangko Sentral ng Pilipinas (BSP) which covered 811 IT-BPO companies shows that the IT-BPO industry of the country posted a 21.8 percent growth in 2010, with revenues reaching $10.1 billion. In 2009, the industry's revenues reached $8.3 billion. However, this translates to a slower growth rate for 2010 than 2009's 30.6%.

Voice-based work remains the key growth driver for the industry as it contributes more than 50 percent of the total revenues. More than half of the industry's workers were from the call center segment, and the Philippines is now considered as the top outsourcing location of choice when it comes to voice-based processes.

Other disciplines such as transcription, animation, and software development also posted strong growth.

According to BSP, IT-BPO exports posted a 22.7 percent growth in 2010. This can be attributed to the growing demand for BPO work.

Source:
http://www.abs-cbnnews.com/

BPAP Promotes �Work Abroad. Live Here� Career Portal

Tue, 10 Apr 2012 00:00:00 -0800

The Business Processing Association of the Philippines (BPAP) recently launched the career portal called �Work Abroad. Live Here� (http://www.workabroadlivehere.com). This is a new campaign which targets 517,000 fresh graduates, young professionals, and job seekers who may want to enter the business process outsourcing (BPO) workforce. This is in line with their efforts to reach the jobs target of 1.3 million by 2016. It is also a way to showcase various opportunities that the IT-BPO sector has to offer.

According to BPAP President and CEO Benedict Hernandez, applicants do not usually know where to look for job opportunities. The career portal is created to help job seekers find jobs that are suitable for their knowledge and skill set. It also enables candidates to work for global companies without having to leave the country. They no longer have to go overseas to provide for their families.

The website covers various segments of the IT-BPO industry. Hernandez said there are available jobs for animators, game developers, IT professionals, software developers, financial analysts, accountants, and even doctors and nurses. He added that IT-BPO centers in outsourcing hubs outside Metro Manila are also looking for candidates who can fill job positions for voice-based and non-voice processes.

The �Work Abroad. Live Here� website is managed by TeamAsia, a marketing communications company, and was developed by Cloud Sherpas.

Source:
http://www.philstar.com/

High Attrition Rate Threatens PH BPO Growth

Tue, 3 Apr 2012 00:00:00 -0800

The 2016 jobs target of the business process outsourcing (BPO) industry might not be met as more and more call center agents in the Philippines are seen leaving the sector. Issues related to health and work-quality are cited by the agents who opt to work abroad.

Working at night is the main reason many call center agents leave their jobs here and look for work elsewhere, pushing them to find countries that have closer time zones to clients, said Contact Center Association of the Philippines Inc. (CCAP) Executive Director Joselito Uligan. In addition to that, he said the 9 to 10 percent attrition rate according to the Business Processing Association of the Philippines (BPAP) is mostly from the call center sector.

The current attrition rate of the BPO workforce, consisting of more than 400,000 employees, is composed of call center agents who either work from one company to another or leave to work in countries such as Malaysia and Singapore.

A 2.89 percent increase was seen in the number of workers leaving the country to work overseas, from 1.092 million in 2009 to 1.124 million in 2010. Remittances ($18.3 billion) from OFWs last year make the BPO industry strive for a larger target for 2016 with $15 billion, which, according to BPAP, will only be achieved if the BPO sector employs 1.1 million workers.

Source:
http://www.abs-cbnnews.com

TESDA Urges the Academe to Offer more BPO courses

Mon, 2 Apr 2012 00:00:00 -0800

Technical Education and Skills Development Authority's (TESDA) Director General Joel Villanueva is urging educational institutions to incorporate more BPO-related courses, specifically for �non-voice� processes. He said it will open more opportunities for candidates who would want to enter the business process outsourcing (BPO) sector.

He said some of the profitable non-voice services that the industry should focus on are, finance and accounting, engineering and design, healthcare, animation, and software development.

When it comes to talent supply, tough competition for quality and quantity of BPO employees is one of the main challenges as other countries are also vying to be ideal outsourcing destinations.

Villanueva said TESDA fully supports the Visayas region as it aims to become an outsourcing location of choice. Next Wave Cities is a title given to locations that can have the infrastructure and manpower needed for BPO operations and Bacolod City, Negros Occidental is ranked as the third destination for IT-BPO processes in the Philippines. Bacolod City is currently home to 11 international call center companies, employing 12,000 workers. Three large IT parks in the city are also recognized by the Provincial Economic Zone Authority (PEZA).

Last year's P2-million grant from Training for Work Scholarship Fund of TESDA was used to establish Negros Occidental language and IT Center (NOLITC) which now provides courses such as Contact Center Services NC II; Finishing Course for Call Center Agents NC II; English Language Proficiency Program; and, Medical Transcription NC II. 2D animation is also a course seen to be provided in the near future.

Villanueva also believes that the partnership between TESDA and the Bacolod Negros Occidental Federation for IT (BNEFIT) will reinforce the province's IT-BPO growth and development.

Source:
http://www.mb.com.ph/

PEZA Cites Eastwood City as Top IT Hub in 3 Categories

Sat, 31 Mar 2012 00:00:00 -0800

Eastwood City Cyberpark, the Philippines' first registered information technology (IT) park, was recently cited as the leader in three key categories by the Philippine Economic Zone Authority (PEZA): export revenues, salaries and wages, and number of direct employees.

Out of US$5.85 billion worth of exports, Eastwood City's outsourcing and offshoring locators contributed US$486.29 million in export revenues for 2011, a 37.27 percent increase from US$354.19 million recorded in 2010.

Salaries and wages of employees amounted to P10.42 billion, a 31.4 percent increase from 2010's P7.93 billion. Eastwood City Cyberpark's PEZA-registered locators also employed the most number of direct workers, providing 31,044 jobs last year. This is a 60-percent increase since 2010. Meanwhile, real estate giant and developer of Eastwood City Cyberpark Megaworld said if non-PEZA locators were included, nearly 40,000 jobs would be reported by the IT park.

Jericho Go, Megaworld's FVP for Business Development said Eastwood City Cyberpark has made an impact to the lives of numerous Filipinos by providing job opportunities. He is confident about the future of the IT park which is predicted to contribute US$500 million in revenues this year.

Source:
http://www.philstar.com/

PH ITO Market Seen to Grow Two-fold by 2016

Fri, 30 Mar 2012 00:00:00 -0800

Industry Development of the Information and Communications Technology Office of the Department of Science and Technology (DOST-ICTO) Deputy Executive Director Alejandro Melchor III announced during a meeting with the Philippine Software Industry Association (PSIA) that the country's information technology outsourcing (ITO) industry can grow two-fold and get a bigger share in the global ITO market by 2016.

He then compared the ITO sector to BPO, saying that it bares similar benefits to the economy. He also noted that ITO has a rapid growth rate propelled by emerging trends that are considered as game changers. Some of which are the developments in technology and evolution of knowledge economy.

Melchor said the Philippines is the third largest supply of IT talent in the Asia Pacific Region (lagging behind India and China). The country has a talent pool equipped with diverse IT skills and is one of the most economical IT outsourcing destinations in the world.

On the other hand, DOST Secretary Mario Montejo said the ITO industry robustly grew last year at 37 percent and contributed about $1 billion in revenues, employing 50,000 workers.

DOST-ICTO Undersecretary Louis Casambre believes in the country's potential to become a premier ITO destination as they are developing programs like ICT Public Private Partnerships (iPPP) with the help of PSIA. Nora Terrado, PSIA's President said it is possible for the Philippines to become a leader in the ITO segment because it is already equipped with skilled and talented Filipino IT workers.

Source:
http://www.philstar.com/

BPOs Planning to Move to Next-Wave Cities

Thu, 29 Mar 2012 00:00:00 -0800

Next Wave cities, or areas with ideal business environments for outsourcing operations, are now being considered by business process outsourcing (BPO) companies. Most (85-90%) BPO firms in the Philippines operate in Metro Manila, and relocation will help reduce congestion and provide more employment opportunities to talent pools in other cities and provinces.

The 10 �Next-Wave BPO cities� report stated that Davao City, Sta. Rosa City in Laguna, Bacolod, Iloilo, Cavite, Lipa in Batangas, Cagayan de Oro, Malolos in Bulacan, Baguio City, and Dumaguete, Negros Oriental have talent supply, infrastructure, and telecom setup that BPO companies need.

The Department of Science and Technology (DoST) and the Business Processing Association of the Philippines (BPAP) released a study indicating that Davao City, Sta. Rosa City in Laguna, and Bacolod City are the three leading BPO destinations out of the 34 locations in the country. Last year, the outsourcing industry posted more than $9 billion in revenues with more than half a million in the workforce.

The BPO sector anticipates an increase in revenues and employment opportunities in 2016 if the plan to relocate or expand to urban areas outside Metro Manila pushes through. Also, BPAP sees cities outside the capital will be employing one third of the predicted 1.3 million BPO candidates by 2016.

Source:
http://ph.news.yahoo.com/

BPOs to Set Up Shop in Cebu

Wed, 28 Mar 2012 00:00:00 -0800

According to Joel Mari Yu, Managing Director at Cebu Investments and Promotions Center (CIPC), United Health Care, EXL, Health Care Corporation of America (HCCA) Philippines, Inc., Promet, and Talleco are some of the firms that are determined to set up shop in Cebu.

Yu said these firms offer knowledge process outsourcing (KPO) services which are considered to be of higher value than the usual call center operations. Some of the KPO services are business solutions, medical claims analyses, data mining research outsourcing, and many more. Moreover, he noticed that monthly inquiries at CIPC have increased over the last two months.

Yu also noted that qualifications for applying in companies have evolved. Nowadays, candidates in this segment have Masters in Business Administration or are economists, statisticians, and have medical degrees. Yu said new outsourcing clients are looking for more nurses or medical professionals, which is good news for nurses who are having a hard time landing a job.

He estimated that there will be about 4,000 job opportunities in Cebu if each of these BPO firms would hire at least 500 employees.

About 52 BPO firms are currently operating in the province, with a workforce reaching 45,000.

Source:
http://www.mb.com.ph/

Industry Leaders Lobby for Data Privacy Act

Tue, 27 Mar 2012 00:00:00 -0800

The External Affairs Director of the Business Processing Association of the Philippines (BPAP), Martin Crisostomo, said the Data Privacy Act or Senate Bill 2965 was recently passed but needs to be approved by the President so that the business process outsourcing (BPO) industry can start utilizing it to expand operations and attract investors.

Having a law that strengthens data privacy and security will reassure existing BPO firms that the industry will continue to grow and that clients will start coming in, knowing that there is a law in place that will protect their data. Information and Communications Technology Office (ICTO) Executive Director Louis Casambre said the bill will indeed help in attracting more businesses in the IT-BPO industry.

Senator Edgardo Angara, author of the bill, said once the bill becomes a law, current revenue estimates can grow from $9 billion in 2011 to $25 billion by 2016 and the number of workers employed in the industry will increase in the next few years. He added that a secure data and information environment can help the country transition from traditional services to high-end processes such as engineering, finance, accounting, and healthcare.

A National Privacy Commission is also expected to be created after the passage of the Data Privacy Act. This will be responsible for monitoring personal information controllers and maintaining data security.

Source:
http://www.sunstar.com.ph/

BPO Revenues, Remittances Predicted to be on Same Level by 2017

Mon, 26 Mar 2012 00:00:00 -0800

In a recent seminar of the Economic Journalists Association of the Philippines (EJAP) sponsored by the San Miguel Corporation (SMC), Jonas Ravelas, Market Strategist at BDO, said if the country's business process outsourcing (BPO) industry continues to grow at 20 percent, its revenues will be at the same level with OFW remittances by 2017 and will make room for more economic development.

The BPO industry accounts for 5.4 percent of the domestic economy's growth, seen in last year's gross domestic product (GDP). The government aims an 8.6 percent GDP contribution by 2016.

Ravelas noted that as the call center sector grows, more jobs will be created even in the local services sector. For instance, establishments that cater to BPO employees will set up shop in call center areas. He added that working for BPO companies is an option that people nowadays are taking since the salary is better than the minimum wage and they would no longer have to leave their families to work abroad.

Source:
http://www.zambotimes.com/

100,000 Jobs Await Fresh Grads in the PH BPO Industry

Fri, 23 Mar 2012 00:00:00 -0800

World Bank stated in its Philippines Quarterly Update that new graduates can expect more employment opportunities this year, as infrastructure spending increased and the business process outsourcing (BPO) sector continues to grow even though it is facing talent supply issues. In fact, the BPO industry is expected to provide 100,000 jobs this year.

Majority of the 700,000 Filipinos in the BPO workforce are employed in contact centers. Meanwhile, finance and accounting is seen as a growing segment for Filipino workers.

The BPO industry is stalled by economic problems globally which may affect those who are employed in the electronics sector.

Fewer overseas contracts are also anticipated by World Bank. However, structural reforms are said to be manageable solutions to beef up the volume of skilled candidates, and hopefully resolve advancement issues.

Rogier J. E. van den Brink, Lead Economist at World Bank, said the Philippines has the rudimentary elements against the worsening condition of economies worldwide. Also, the country has the potential to be a prime destination for other services.

Source:
http://www.abs-cbnnews.com/

Work Sent to India Predicted to End in 8-10 Years

Thu, 22 Mar 2012 00:00:00 -0800

According to a report presented by strategic consultancy firm The Hackett Group during the Nasscom Global In-House Centers (GIC) Conclave, offshoring of jobs from the US and European countries will begin to decline in 2014 and eventually come to an end in 8-10 years.

The offshoring research team at The Hackett Group surveyed 4,700 US and Europe-based companies in the $1 billion revenue bracket. The report showed that 2.3 million positions in finance, IT, procurement, and HR will be filled by offshore providers in 2016.

Martin Geerling, Director at The Hackett Group said India, the most popular offshoring destination, should find or develop a bigger market to continue growing because the boom in demand for outsourcing brought about by the 2009 economic meltdown is diminishing. In line with that, Hackett anticipated that the 40% share of India in the business process outsourcing (BPO) industry will drop to 38% in 2013.

Meanwhile, Nasscom said offshore captive centers of retailers, large banks, and insurance companies account for $14 billion of India's $100-billion IT-BPO sector. The Hackett Group also noted that of the 8.2 million exported jobs from North America and Europe since 2002, only 4.5 million will be retained in 2016. On the other hand, Partner and Head of ITBPO of KPMG Pradeep Udhas did not agree with the report from Hackett, saying that there's still ample room for India to grow.

Source:
http://economictimes.indiatimes.com/

Recruitment Remains a Challenge for PH BPO Growth

Wed, 21 Mar 2012 00:00:00 -0800

According to the president for the Asia-Pacific arm of business process outsourcing (BPO) firm Teleperformance, David Rizzo, the Philippines can now accommodate more non-voice outsourcing firms but the local BPO industry should patch recruitment loopholes to maximize opportunities.

Rizzo cited the lack of qualified candidates or those who have the skill set needed by the industry as the main hurdle for the outsourcing industry. He added that retention programs must be assessed so that growth will be more achievable. There is also a need to look into issues when it comes to working at night since it is a reason employees resign.

Rizzo said the country can provide non-traditional services, and this would mean a larger global outsourcing market for the Philippine BPO industry. Research firm Everest Group predicts the global outsourcing and offshoring industry will reach $280 billion this year.

The Philippines had surpassed India in terms of voice-based operations last year. Everest Group assessed that the country's call center industry earned $7.38 billion last year, outdoing India's $7 billion. The Philippines also has more employees in the contact center segment compared to India. However, India remains the number one BPO destination with revenues amounting to $15 billion, while the Philippines only earned $9 billion.

Source:
http://www.bworldonline.com/

PH Senator Confident about Data Privacy Act

Tue, 20 Mar 2012 00:00:00 -0800

The Data Privacy Act, sponsored by Senator Edgardo Angara, recently passed the second reading and is poised to be approved and sanctioned after the third evaluation in a bicameral conference. In due course, the new measure that aims to provide a privacy framework in the Philippines will be presented before the President.

Angara, who is also the Chairman of the Senate Committee on Science and Technology, said it orders public and private organizations to be more cautious and protective of all the data they gather. The bill is also said to strongly reflect the Directive 95/46/EC of the European Parliament and Council which is the most adopted data privacy regime used by the European Union.

Angara said the Data Privacy Act will be a strong indication that the country's IT sector is determined to further improve its IT industries. He also believes that this will reinforce the country's image and attract investors for the Information Technology and business process outsourcing (IT-BPO) industry.

Source:
http://www.philstar.com/

Higher Incentives Needed to Attract BPO Locators

Fri, 16 Mar 2012 00:00:00 -0800

Increasing the Peso incentive was cited by outsourcing organizations in the Philippines as the solution to attract more business process outsourcing (BPO) locators to set up operations in the country. This is due to the fact that costs of doing business in the Philippines are higher compared to other outsourcing locations.

Furthermore, Department of Science and Technology-Information and Communications Technology Office's (DOST-ICTO) Deputy Executive Director Alejandro Melchor III said the country is equipped with talented candidates, but prices of real estate and power remain high. He added that in other outsourcing destinations, costs of electricity are lower and real estate is usually provided free of charge to BPO locators.

Melchor noted during a conference with Business Processing Association of the Philippines (BPA/P) members that if the low incentive rate at 5% will be further reduced, it will affect the country's position as an ideal outsourcing destination. He added that BPO locators are more inclined to put up operations in Tier 2 and Tier 3 countries.

On the local employment side, it is expected that 400,000 to 800,000 jobs will be added by the BPO sector in the next five years.

The BPA/P Next Wave Cities (NWCs) Report (2010-2011) shows vast opportunities for the sector in New Wave Cities. Davao, Sta. Rosa, Bacolod, Iloilo, Metro Cavite, Lipa, Cagayan de Oro, Malolos, Baguio, and Dumaguete are the top 10 NWC in 2010-2011.

Source:
http://www.philstar.com/

Global IT Services to Post 5% CAGR in 2012-2017

Thu, 15 Mar 2012 00:00:00 -0800

According to the latest report from Research and Markets called "Global IT Services Industry Analysis 2012-2017: Industry Trend, Profit and Forecast Analysis", the global IT services industry will be valued at $1,147 billion by 2017 at a CAGR of over 5% in 2012-2017.

It was seen that the heightened costs of IT services in industries such as retail, healthcare, and transportation will present numerous opportunities for the players in the global IT services segment.

North America accounts for the largest market for IT services globally with 42% and is said to be driven by affordable labor and large pools of skilled candidates in the Philippines, India, China, and Vietnam. During the forecast period, the Asia Pacific region is anticipated to post the highest growth rate worldwide.

Other factors that contribute to the growth of the IT services market are government-backed reforms for global IT vendors and the adaptation of cloud computing.

Source:
http://www.sunherald.com/

Indian BPOs Optimistic about the Healthcare Sector

Wed, 14 Mar 2012 00:00:00 -0800

India sees vast opportunities in the healthcare outsourcing segment as it posts an annual growth rate of 21 percent.

Outsourcing is now being considered by healthcare payers and providers to help them manage increasing costs and reorganize the internal structure of healthcare operations that may affect hospitals and patients, said IT consulting firm and BPO services provider Cognizant.

Indian IT company HCL anticipates 117 new registrations in the next few years due to reforms in healthcare policies. Payers are also more cautious now when it comes to handling processes without increasing the costs and are drawn to platform-based or outsourcing smaller sections so that capital costs would be more manageable.

A spokesperson from HCL said HfS Research estimates that the healthcare BPO market in the US was valued at $1.2 billion in 2011 and can grow by 15-20 percent within the next three years.

Managing Director Viswanath Sivaswamy of healthcare services provider Anthelio Business Technologies pointed out that domain-specific expertise and the kind of service vendors can offer will play a role in the growth of the healthcare sector.

Meanwhile, Indian BPO company Wipro said e-health, which makes use of electronic processes and telecom technologies, is a new practice that will be helpful in handling transactions and managing healthcare data.

Source:
http://www.deccanherald.com/

Gartner: Indian IT-BPOs to Gain more Presence Overseas

Mon, 12 Mar 2012 00:00:00 -0800

Research and advisory firm Gartner said India-based business process outsourcing (BPO) companies are seeing more outsourcing activity overseas.

According to T J Singh, Research Director at Gartner, global BPO organizations that are based in India like Infosys and Wipro are making a mark overseas and are growing immensely. This is credited to the fact that such companies are able to provide flexible terms and various service offerings to the growing demand fuelled by the European debt crisis and sluggish economies being faced by Western countries. BPO firms can benefit from the situation as companies look for means to cut costs and keep their business going.

The National Association of Software & Services Companies (Nasscom) estimated that the IT-BPO sector in India will post a total of US$100 billion in revenues for 2011-2012. In 2013, it is expected that the sector will post a revenue growth rate of 11-14 percent.

Source:
http://www.deccanherald.com/

BPO, OFW Remittances Strengthen PH Peso

Fri, 9 Mar 2012 00:00:00 -0800

The Bank of the Philippine Islands (BPI) recently projected that the country's currency will remain resilient at P42 to US$1, averaging at P42.777 during the first few days of March and has recovered from the lowest valuation at P43.619 last January.

According to BPI's Asset Management Group Head Tere Javier, increasing investments on the emerging markets in the Philippines, remittances from eight million Filipinos who are working abroad, and earnings from the business process outsourcing (BPO) industry are the factors that keep the peso strong. In fact, the projection of P42 to P42.30 per US dollar is reinforced by the BPO sector's continuous growth and five percent increase in OFW remittances.

In the four-point investment theme of BPI for 2012, emerging markets are expected to fuel global growth and remain fund generators. The economy will be able to overcome challenges, though there will still be market volatilities as a result of geopolitical issues.

Javier said remittances for this year will be $21.1 billion. This is five percent higher than figures posted in 2011. On the other hand, earnings from BPO will increase by 19 percent reaching $13 billion. Healthcare, finance and accounting, human resources, animation, and creative services are seen as some of the growth areas in the BPO industry.

Source:
http://www.abs-cbnnews.com/

PH BPO Urged not to be �Complacent�

Thu, 8 Mar 2012 00:00:00 -0800

As the competition in the global business process outsourcing (BPO) segment gets tougher, there's no reason for the Philippine BPO industry to become complacent, especially since it aims to reach $25 billion in revenues and employ 1.5 million by 2016, said SPI Global President and Chief Executive Officer Maulik Parekh.

He said changes need to be made by the industry to ensure that these targets are met despite the tough competition in the form of emerging outsourcing locations. The sector is poised to post 20 percent growth annually in the next two years, even if the economy is going through a slump.

Parekh said the Philippine BPO industry will face several challenges, particularly since the country is not the only one which offers outsourcing services. India, for instance, is an ideal location of choice when it comes to non-voice business functions. Another destination is China which has two million college graduates annually, whereas the Philippines only produces about 400,000. Filipino workers have better English communication skills, but China's workforce has the technical advantage. Moreover, as the US becomes more Hispanic, destinations in Latin America pose a challenge since they can offer bilingual support.

Source:
http://www.mb.com.ph/

PH Nurses Urged to Explore other Job Opportunities

Wed, 7 Mar 2012 00:00:00 -0800

Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz pointed out to nursing graduates that the healthcare sector is brimming with career opportunities. Other healthcare-related but non-clinical forms of practice are available and are waiting to be filled by candidates who have backgrounds in healthcare.

She cited a report from the Bureau of Local Employment (BLE) which indicates that the healthcare information outsourcing sector under the business process outsourcing (BPO) industry has more than 100,000 medical-related jobs ready for nursing graduates and other medical professionals.

The basic salary for healthcare outsourcing positions ranges from Php14000-Php18000 and may reach Php20000-Php40000 for more extensive types of healthcare work.

Baldoz emphasized that those who are employed in the healthcare outsourcing sector receive far more than the average Php10000 that the nurses who are working in medical and private institutions get.

At DOLE's Project Jobs Fit program, employment opportunities that were identified include jobs in the healthcare outsourcing industry as well as in the health and wellness field. Clinical research associates and clinical appeals specialists are also feasible careers for nursing graduates, according to Baldoz.

Source:
http://www.pia.gov.ph/

Double-digit Growth Expected in China's Software, IT Services Sector

Tue, 6 Mar 2012 00:00:00 -0800

With the increasing demand for outsourcing software and IT services globally, China's IT services sector is anticipated to post double-digit growth on a year-to-year basis, according to the Ministry of Industry and Information Technology (MIIT).

It was reported that a 32.4 percent growth was already posted by the IT services sector this year, making it a 1.84 trillion yuan (US$ 292.23 billion) industry. On the other hand, software exports increased 18.5 percent from 2011. The total value of exports reached US$ 30.4 billion.

China was once recognized for being an inexpensive destination for manufacturing, but it shifted to high-tech services exports - a result of tough competition within the local services segment. Furthermore, the country's software industry is said to be reinforced by strong support from the government, easy access to IT infrastructure, and a large talent pool, making it a feasible location for local and foreign investors.

The software industry flourished through government efforts to make the country more attractive to investors. These include IT investments and improvements in infrastructure and software facilities.

Local patronization has also propelled the industry during the forecast period, as well as investments from other sectors like the government, banking, and manufacturing. These are clear indications that China's software industry will continue to grow this year.

Source:
http://www.techwireasia.com/

China Posts Growth in IT Outsourcing, Software Exports

Fri, 2 Mar 2012 00:00:00 -0800

According to the Ministry of Industry & Information Technology, the level of IT transactions in China reached an astonishing 1.84 trillion yuan (�184.33 billion) last year. Furthermore, software exports increased by 18.5 percent year on year, valued at 191 billion yuan (�19 billion) and software and services outsourcing rose by 39.5 percent at 385.5 billion yuan (�38 billion).

The government cited the robust growth of the economy and increase in demand as factors that drove the IT outsourcing boom in the country.

Some might question the data released since it came from the state and not from a certified organization. Nevertheless, industry analyst Ovum reported that the figures are similar with what they've come up with.

According to Principal Analyst Jens Butler, software and IT services are still two different markets and the growth is propelled by software acquisition and diversity of outsourcing options that make way for upgrades in infrastructure and exports. Butler added that growth is still seen on the services side, primarily in the Asia Pacific, LATAM, and MEA regions.

On the other hand, even with the high figures posted by China, The Business Software Alliance gave the country a low score when it comes to cloud computing.

Source:
http://www.ihotdesk.com/

Gartner Predicts Increase in AU Data Center Activity in 2012

Thu, 1 Mar 2012 00:00:00 -0800

IT research and consultancy firm Gartner recently released its data center market predictions which show that data centers in Australia will reach 49,577 this year, but would drop to 45,545 by 2015.

According to one of Gartner's Research Vice-presidents, Phil Sargeant, companies in Australia are looking for better solutions in managing their data centers. Many are thinking of using the internet to consolidate and transfer data from several physical sites into one to two sites. It was also predicted that AU$2 billion will be spent by Australian firms this year on data center hardware.

Naveen Mishra, another Research Vice-president at Gartner, said that according to business leaders they've spoken to, budgets for data centers will be controlled while the operations are eyed to provide greater return on investments due to constant upgrades of the technologies needed for the sites.

Furthermore, it is said that high construction costs for data centers in Australia, support issues, and long-term and fixed contracts with vendors are starting to become off-putting. This resulted to frustrated companies in Sydney, Melbourne, and Brisbane and drove them to rethink about their data center outsourcing strategies and contemplate on building data center captives of their own with cloud integration.

Source:
http://prwire.com.au/

Gartner Predicts IT Expenses in MEA Region to Reach $93bn

Tue, 28 Feb 2012 00:00:00 -0800

Research and consultancy firm Gartner predicts that overall IT spending in the Middle East and Africa (MEA) region will increase by 6.3 percent, from $88.51 billion in 2011 to $93.87 billion this year.

Peter Sondergaard, Gartner's Senior Vice-president and global head of research, said the growth rate throughout the region was larger in 2011 compared to what it is now. He added that the cloud, social media, mobile, and information are four factors that will affect IT organizations and technology providers in the Middle East, but then again growth for the organizations could be hindered by challenges such as the market for cloud services, talent shortage, and large volumes of data to be handled.

These challenges will then push CIOs in the Middle East to outsource construction of infrastructure and application environments. With ample bargaining power and proper vendor management skills, CIOs are likely to land good outsourcing deals, added Sondergaard.

It is expected that the banking and securities industry, particularly in the Mena region, will post the fastest growth, followed by transportation and healthcare.

Source:
http://www.tradearabia.com/

PH BPO Industry Eyes $13B in 2012 Earnings

Mon, 27 Feb 2012 00:00:00 -0800

The business process outsourcing (BPO) industry of the Philippines is targeting an increase of 19 percent in revenues reaching $13 billion this year. According to Martin Crisostomo, External Affairs Executive Director at the Business Processing Association of the Philippines (BPAP), this is about $2 billion higher than last year's $10.9 billion.

Crisostomo said the organization is expecting an increase in earnings this year due to an escalation in demand for voice-based and non-voice processes by companies that are striving to remain competitive. Furthermore, he anticipates that the voice segment will grow and propel the country's revenues. Also, most Filipinos are proficient in the English language, making the country a favoured outsourcing destination especially for call center work.

The non-voice segment is also predicted to grow due to an increase in the demand for high-end processes such as financial services or accounting, health services information management, and software development.

BPAP remains confident that the industry will reach its revenue goals. However, they are taking into account the pending bills in the US that urge firms to bring jobs back home.

Source:
http://www.abs-cbnnews.com/

PH still Far from Matching India's BPO Industry

Sat, 25 Feb 2012 00:00:00 -0800

Even with the Philippines' recent win in the call center outsourcing segment, India remains ahead in terms of overall services exports. In fact, India's business process outsourcing (BPO) industry is currently valued at $15 billion, while the Philippines is only at the $9 billion mark. Also, there's a huge difference between the size of the industry and range of services of both countries.

According to research firm Everest Group, the call center sector accounts for $7.38 billion of the $9 billion BPO industry of the Philippines. This is slightly higher than India's voice-based services exports valued at $7 billion. The country has dominated the voice-based sector due to the Filipinos' cultural compatibility with the Western culture and better English accent.

However, even though the country's BPO industry posts a faster growth rate, it will take more time before it reaches India's current standing. Moreover, when it comes to non-voice processes, there's a huge difference between both countries, said Amneet Singh, Vice-president, Global Sourcing, Everest Group.

WNS' CEO Keshav Murugesh stated that when it comes to data-based work, India definitely surpasses the Philippines. On the other hand, Swaminathan D, CEO and MD of Infosys BPO, said the Philippines is the second outsourcing location of choice of clients because it is able to supply candidates with various skillsets. He cited that Manila alone can provide 100,000 certified accountants for the finance & accounting segment which is a strong suit if they want to delve into the F&A market.

Operational costs in India are 5-15 percent lower compared to what the Philippines offers. Another advantage of India is it has several domestic BPO hubs which can provide more flexibility, whereas the Philippines merely has two known locations which are Cebu and Manila, and offers limited alternatives for clients.

Source:
http://business-standard.com/

US Congress Urged to Give Rewards to Firms that Create Jobs Locally

Fri, 24 Feb 2012 00:00:00 -0800

US President Barack Obama urged the Congress to grant tax rewards to companies that provide employment to US citizens. The President said the Congress needs to make adjustments in the country's tax code for companies such as Boeing Co. So it will be easy for them to create more job opportunities to the country. In his recent visit to Boeing Co.'s jet factory in Everett, Washington, he was delighted that it had produced thousands of employment opportunities to US citizens.

The President noted that businesses in the US created 3.7 million new jobs in just two years, adding that even if labor and operational costs are way higher locally than in China, the quality of products will definitely be better, and that will be the country's way to be globally competitive.

Furthermore, he said that companies that outsource jobs shouldn't get tax breaks and help should be extended to technology companies and other businesses that set up operations in the country.

Meanwhile, the annual White House report indicates that the US will have a stronger economy this year and produce two million jobs. The report also predicts that the average unemployment rate for this year will be around 8 to 8.6 percent.

Source:
http://www.businessweek.com/

Indian Workers to Get Highest Wage Hike in Asia Pacific this Year

Wed, 22 Feb 2012 00:00:00 -0800

According to a Salary Increase Survey done by consultancy firm Aon Hewitt, Indian employees will get an 11.9% salary increase in 2012. This is slightly lower than the 2011 hike at 12.6%, but India remains the top country in the Asia Pacific region to give the highest salary increase. Survey also indicates that the marginal drop in figures is brought about by a cautious approach of business owners towards economic uncertainty.

This would be the 10th consecutive year that India will dominate the Asia Pacific region for wage increases. Meanwhile, lagging behind India in terms of salary increases in the Asia Pacific region are China which is predicted to post 9.5%, and the Philippines with 6.9% for 2012. Other countries in the Asia Pacific region that are likely to have wage increases are Australia (4.6%), Hong Kong (5%), Japan (2.8%), Singapore (4.8%), and Malaysia (6.2%).

The Compensation Consulting Practice Leader of Aon Hewitt, Sandeep Chaudhary, said business views are recently indicating positive signs. Increase rates could mean that companies are prioritizing the talent of employees, while closely monitoring the economy.

The rates of salary increases in India are as follows: general/entry level workers are likely to get 11.8%, junior manager level at 12.3%, middle management at 12%, and senior management at 11.1% this year.

Source:
http://www.hindustantimes.com

Indian IT Seen to become a $100-billion Industry in March

Tue, 21 Feb 2012 00:00:00 -0800

Chairman Rajendra Singh Pawar of the National Association Software and Services Companies (Nasscom) and NIIT said it is indeed exciting for the Indian IT industry to hit $100 billion by the end of March this year. He also noted that the Indian IT industry is far from the $1 billion entity it was back in 1990.

With exports from information technology (IT) and IT-enabled services (ITES) industries accounting for 70 percent of the $100 billion figure, and their contribution to India's GDP on a steady increase, the success of India now highly depends on the quality and capacity of the talent pool. Meanwhile, Mr. Pawar added that the IT-BPO industry is anticipated to hire 30 million candidates - five million of which are women and four million are applicants from rural areas.

The ITES sector is also at its peak this year for it is expected to make government services more accessible via the National e-governance plan (NeGP), Common Services Centers (CSC), State Data Centres (SDC), and State Wide Area Networks (SWAN). These services are said to be modelled after the water distribution system, with SWAN as the pipelines, CSC as taps, and SDC as the reservoir. This system, according to Mr. Pawar, helps companies streamline core processes like the UID project and 31 mission mode projects under NeGP.

As India competes in the IT services arena, lack of skilled candidates and the bottleneck in infrastructure hamper the country's ability to succeed. Mr. Pawar said they are applying the necessary tools like ample bandwidth to power the projects.

Source:
http://www.thehindu.com/

US Anti-outsourcing Efforts Expected to Intensify

Mon, 20 Feb 2012 00:00:00 -0800

According to Pasig City Rep. and House Deputy Majority Leader Roman Romulo, anti-outsourcing efforts will intensify as US politicians are aiming to get more sentiments from voters. He adds that the phenomenon is just a political ploy for the November elections and that the Bishop bill is not a threat to the constantly growing business process outsourcing (BPO) industry of the Philippines.

The Bishop bill is the proposed US Call Center and Consumer Protection Act by New York Rep. Tim Bishop. It will affect US businesses that are moving jobs overseas. If the bill is sanctioned, the firms will be disqualified from loans and grants, and would have to abide by new contact center protocols.

Romulo is a known supporter of the country's outsourcing industry which is expected to employ 1.3 million Filipinos and post $25 billion in revenues by 2016. He noted that it is an advantage for US firms that they are able to procure more affordable non-core services such as call center processes from countries like the Philippines. He added that those with outsourcing operations in the country are likely to be returning profits to their respective companies in the US. He also noted that without the cost-saving feature of outsourcing, prominent financial institutions would probably cut more jobs as the economy is deteriorating.

Source:
http://www.abs-cbnnews.com/

EMEA Data Center Outsourcing Predicted to Post 11.4% CAGR in 2010-2014

Sat, 18 Feb 2012 00:00:00 -0800

The recent "Data Center Outsourcing Market in the EMEA Region" report by market research resource Research and Markets shows that the demand for data center outsourcing in EMEA (Europe, Middle East, and Africa) will post a compound annual growth rate (CAGR) of 11.4% from 2010 to 2014.

Cost of data center infrastructure and operations is expected to drive the market. It is also said that the market in EMEA is looking for greener data center solutions. However, data security still poses issues that may affect the growth of this market.

Another report entitled �Data Center Outsourcing Market in the EMEA Region 2010-2014� was released by TechNavio. It is a documented analysis of the EMEA region, aimed at decision makers so that they can have a better understanding of the trends affecting the growth of the market. An analyst from TechNavio commented that there is a steady increase of environment-conscious firms that are looking for greener data centers.

Since maintaining multiple data centers is costly, companies decide to outsource the process to reduce expenses. Frequent maintenance of power supply and cooling systems can be simply managed by the service provider.

Source:
http://finance.yahoo.com

PH Seen to Dominate Global Healthcare Outsourcing this Year

Fri, 17 Feb 2012 00:00:00 -0800

According to Information and Communications Technology Office (ICTO) Deputy Executive Director Alejandro Melchor, with the large number of licensed healthcare professionals like nurses and recent triumph in the call center sector, the Philippines is predicted to become one of the prime providers of healthcare information management services. He added that for the country to remain competitive, it should tap �high-value-chain� services.

ICTO identifies healthcare information management outsourcing as one of the four targeted areas for growth. Other viable segments are finance and accounting, HR outsourcing, and animation and creative process outsourcing.

Not only does the healthcare sector focus on basic back-office medical transcription, it also includes top tier services like clinical coding, disease management, revenue cycle management, and pharmaceutical benefits management.

Melchor said healthcare information outsourcing is a favourable sector, and the country is definitely the primary outsourcing location of choice. He added that the recently sanctioned landmark healthcare law �Patient Protection and Affordable Care Act� by the Obama government, and the steady increase of senior citizens in the United States provide opportunities for the country's outsourcing industry. Furthermore, the US needs $530 billion dollars-worth of services to apply the measure - definitely a huge market for outsourcing destinations like the Philippines.

ICTO is hoping to team up with the Business Processing Association Philippines (BPAP) and the Healthcare Information Management Outsourcing Association of the Philippines in creating strategies for the four targeted sectors.

Department of Science and Technology Secretary Mario Montejo said they plan to focus on the outsourcing sectors for 2012. He added that the country needs to produce better graduates by means of partnering with other educational organizations.

BPAP predicts that the country will reach $25 billion in export revenues by 2016 and provide 1.3 million direct and 3.2 million indirect jobs.

Source:
http://ph.news.yahoo.com/

New Operating Model Needed for Growth of IT Sector

Thu, 16 Feb 2012 00:00:00 -0800

Advisory services firm KPMG and India's National Association of Software and Services Companies (Nasscom) recently released a study called �Hub & Spoke Operating Model for the Indian information technology and business process outsourcing (IT-BPO industry)�, which states that new strategies are needed for growth and Indian IT companies can undertake global hubs and lead the IT outsourcing sector, so long as the Indian government and other notable organizations are in favour of their plans.

The report shows that clients and providers prefer flexible models that can help them manage multiple locations, reinforce partnerships, and build their brand. The model that is expected to accomplish all these goals is the Hub & Spoke model, which basically means having several locations that will perform the back end processes, while assigning a central �hub' or a core facility for the entire operation.

The hub will also be responsible for management-related work such as skills development, customer support, monitoring, and even employee management roles. The spokes will then be regarded as flexible delivery centres which can be modified based on the requirements of the company.

Genpact's President and CEO NV �Tiger' Tyagarajan said the Hub & Spoke model can lead to more opportunities for IT providers, especially for India, a prime destination for ITO/BPO services due to several factors such as availability of workers, lower costs, and skill advantage.

Source:
http://www.mydigitalfc.com/

MicroSourcing Holds Fundraising Program on Valentine's Day

Wed, 15 Feb 2012 00:00:00 -0800

On Valentine's day, MicroSourcing employees and clients opened their hearts to those who are in need through A Heart for Hearts, a fundraising program that will benefit the Children's Hour's �One Hour, New Hearts�. This is an open heart surgery program for kids with cardiovascular disorders.

The Operations Group, Creative Services Group, and departments set up booths and facilitated fun activities to encourage employees to spread the love and help the underprivileged.

CSG set up a Serenade Booth - an acoustic group sang love songs requested by employees for their special someone and/or friends at the office.

There were also a lot of excitement at the Marriage Booth by the Human Capital Strategy and Delivery Group (HCSDG). Of course, Valentine's day would not be a day of hearts without roses for sale (free delivery by members of the Manpower Acquisition department) and an assortment of sweets (by Operations).

After a series of fun games, the much-awaited auction was held. Employees tried to outbid each other to win a date. From this activity alone, MicroSourcing was able to raise a total of Php11,950 for the kids.

Children's Hour is a non-profit organization that encourages companies to donate at least one hour's worth of their salaries to help underprivileged Filipino children get access to better nutrition and education.

British Experts Remain Optimistic on PH BPO

Tue, 14 Feb 2012 00:00:00 -0800

In a formal meeting last Feb. 2, British-Philippines Outsourcing Council (BPOC) Board Members Ian McGowan and Richard Patterson told Philippine Ambassador Enrique Manalo that they have a �very positive� outlook regarding the position of the country's business process outsourcing (BPO) sector.

According to the Department of Foreign Affairs (DFA), the BPOC noticed that more and more clients, particularly from the UK, Australia, and Asia, are looking to outsource high-end services to locations that offer competitive pricing. Furthermore, McGowan and Patterson said outsourcing is not entirely unacceptable for established economies like the UK, stressing that businesses outsource to be globally competitive. They were also able to discern that with their experience with numerous British firms that are outsourcing to the country, when a position is filled in the Philippines, more job opportunities are created in Britain.

Manalo strongly supports BPOC's efforts in shaping the country to become a prime outsourcing destination for the British market, saying that the Embassy will persevere in working with BPO organizations to develop the industry.

BPOC is a London-based, non-profit independent organization that aims to showcase the Philippines as a viable outsourcing location for British companies.

Source:
http://www.gmanetwork.com/

Nasscom Predicts Drop in Indian IT, BPO Services Exports

Fri, 10 Feb 2012 00:00:00 -0800

The National Association of Software and Services Companies (Nasscom) recently predicted that by March 31, 2013, developments in Indian IT exports services, business process outsourcing (BPO), and related services will decrease by 11 to 14 percent from the current fiscal year's 16.3 percent.

Deferred procurement decisions by customers and a vague economic environment like the one in Europe were some of the factors that have affected the forecast.

Salil Dani, Research Director for Global Sourcing at advisory and research firm Everest Group said growth will be flat for the first half of this year, unless Europe will be able to recover from its current economic situation. Also, global outsourcing revenue dropped 15 percent during last year's Q4 compared to Q3.

Meanwhile, Sudin Apte, Principal Analyst and CEO of consultancy firm Offshore Insights, said IT budget is also being affected; it is decreased or remains the same. He added that clients are no longer on the side of providers and are careful in adopting new technologies like the cloud, mobile capability, etc.

Nasscom said the business process outsourcing industry in India is expected to grow by 13 percent valued at $16 billion, and exports are predicted to reach $69 billion.

Source:
http://www.computerworld.com/

PH BPO Urges Solons to Pass Cybercrime Bill

Thu, 9 Feb 2012 00:00:00 -0800

Industry body Business Processing Association of the Philippines (BPAP) is eagerly waiting for the decision of the House of Representatives regarding the proposed Cybercrime bill, since a version was already approved by the Senate.

BPAP's legislative committee head Martin Crisostomo said having a House version of the bill is now being worked on by solons, led by House ICT Committee Chair Cong. Freddie Tinga.

Crisostomo believes that the bill will be approved straightaway as the President and lawmakers see the need to modernize the constitution to stay competent and protect the industry and citizens from misconduct.

BPAP Chairman Alfredo Ayala said the security of the business process outsourcing (BPO) industry, which is built on IT and the Internet, will be driven further as most operations and transactions are with global clients.

Meanwhile, BPAP CEO Benedict Hernandez noted that the bill will help the industry reach its 2016 goals particularly the employment opportunities to more than four million Filipinos (1.3 million direct jobs and over 2.7 million indirect jobs) and revenue target of $25 billion. He also said it will change the perception of investors on the country's business environment.

Angara anticipates a speedy passage of the bill but believes that there are still more areas of the legislation that should be worked on. He said participants of the process should be committed for the benefit of the industry and the Filipino people.

Source: http://www.gmanetwork.com/

European Firms Expected to Expand PH BPO Operations

Wed, 8 Feb 2012 00:00:00 -0800

As the Philippines' business process outsourcing (BPO) industry shows significant growth, European BPO players will likely expand their outsourcing operations in the country, according to Guy Ledoux, European Union Ambassador to the Philippines.

Considered as the number one outsourcing location of choice for voice-based processes with more than half a million in the workforce as of 2011, the Philippines is poised to grow by 20 percent this year despite the anti-outsourcing efforts in the US. With this growth, Ledoux said European companies, which make up 10 percent of the total number of firms with BPO operations in the country, are predicted to expand as a means to be more competitive.

In addition to expansion in the BPO sector, the EU Ambassador said European firms are looking into renewable energy sources, stating that renewable energy comprised 70 percent of Europe's new power generation capacity in 2011.

Ledoux said when it comes to foreign funds, how attractive the Philippines' business climate is to investors matters more than the current state of the European economy. Both Europe and the Philippines are exerting efforts to ensure that the flow of EU investments to the country will remain strong.

Source:
http://www.abs-cbnnews.com

PH Government Eyes 20% Growth for BPO Sector

Tue, 7 Feb 2012 00:00:00 -0800

Even with the proposed bill which targets US firms that are outsourcing work offshore, and with two more legislations on the way, the business process outsourcing (BPO) industry of the Philippines is poised to grow 20 percent this year. This is according to Department of Budget and Management Secretary Florencio Abad. He said in a statement that the BPO sector is strongly supported by the government, and this partnership will help in further developing the sector particularly when it comes to finding talent that is suitable for BPO work.

He added that the government is looking for other opportunities in Southeast Asia, among other regions, and is eyeing further development of favorable industries. On behalf of the Aquino gov't, the Department of Budget and Management reiterated plans regarding the country's fiscal sustainability, aiming a 2.6-percent deficit cap this year.

Abad is confident that the government will be able to lower the national deficit to two percent in two years' time, while the revenue target for this year is set at P1.5 trillion, equivalent to 14.2 percent of the GDP.

Source:
http://www.philstar.com/

US Congressman to Propose an Outsourcing Accountability Bill

Mon, 6 Feb 2012 00:00:00 -0800

Large companies, specifically the ones with revenues surpassing $1 billion in the US, may soon have to reveal how much of their processes are being outsourced to offshore locations once the house bill �Outsourcing Accountability Act' proposed by Rep. Gary Peters (D-M) and co-sponsored by Reps. Tim Bishop (D-N.Y.) and Jerry McNerney (D-Ca.) is ratified. The firms will also be obligated to indicate their domestic and offshore employment activities, as well as a detailed report that shows which countries their outsourced employees come from.

Furthermore, the bill is set to lessen the ambiguous employment figures declared by renowned companies such as IBM, Pfizer, and Apple. All of them publicly share the number of employees, but not the exact number of those who are working overseas. Also, from 2000 to 2009, 2.9 million jobs were lost in the US, while 2.4 million were created abroad.

According to Peters, this will not make things harder for companies as they already have the needed information, and it is impossible for them to not know where they send their pay checks.

Moreover, a report posted August of last year showed that companies that do not disclose exact data are also appealing for tax breaks under the impression of creating jobs, but since lawmakers are presented with vague figures, they cannot monitor which companies are actually creating jobs.

General Electric (GE) and Wal-Mart are some of the large companies that have shared the exact numbers of employees who are working abroad. For GE, the number of US-based employees decreased from 54 percent in 2000 to 46 percent in 2010.

Peters added that correct data will help consumers who want to support American workers easily identify these companies and provide more information for investors.

Source:
http://www.washingtonpost.com/

JP Morgan Expects more Foreign Investments to PH this Year

Fri, 3 Feb 2012 00:00:00 -0800

Arian Mowat, Chief Emerging Market and Asian Equity Strategist of JP Morgan Chase & Co., believes that more foreign investors will continue to spend in the Philippines this year, unless the economic environment changes. He said that low interest rate, stable political environment and inflation rate, and sustainable foreign exchange inflows from remittances and business process outsourcing (BPO) are some of the factors that make the Philippines competitive.

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

Thu, 2 Feb 2012 00:00:00 -0800

The Information and Communications Technology Office of the Department of Science and Technology (DOST-ICTO), along with the Business Processing Association of the Philippines (BPAP) stated that they are aiming to dominate four more outsourcing markets: Healthcare Information Management Outsourcing, Finance and Accounting Outsourcing, Human Resources (HR) Outsourcing, and Creative Process Outsourcing.

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

Wed, 1 Feb 2012 00:00:00 -0800

During the press conference "Strategies and Prospects of the IT/BPO Industry in the Philippines�, government officials and industry leaders stated that they strongly believe in the potential of the information technology-business process outsourcing (IT-BPO) industry. In fact, the industry is expected to provide 1.3 million jobs and contribute approximately $25 billion in revenues by 2016, even though an anti-outsourcing regulation is being petitioned in the US.

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

Tue, 31 Jan 2012 00:00:00 -0800

With at least half of the call centers in the Philippines serving US-based firms, the Business Processing Association of the Philippines (BPAP) appears to be reassured amid President Barack Obama's mass petitioning for businesses to bring jobs back to the US. The outsourcing body also believes that the Philippines' flourishing BPOs will see no adverse effects as the anti-outsourcing bill is being processed.

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

Mon, 30 Jan 2012 00:00:00 -0800

The National Association of Software and Services Companies (Nasscom), the trade association of the IT-BPO industry in India, will possibly predict slow activity in software exports due to incessant economic problems affecting the information technology (IT) outsourcing sector.

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/

Gadget Rush Referral Promo Winners Announced

Fri, 27 Jan 2012 00:00:00 -0800

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.

UK Investments to Strengthen Outsourcing in SE Asia

Fri, 27 Jan 2012 00:00:00 -0800

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

Thu, 26 Jan 2012 00:00:00 -0800

With an unimpressive unemployment rate of 8.5% and an inactive economy, US President Barack Obama is once again pleading for US firms to source locally. Even though he focused more on manufacturing jobs during his State of the Union speech, he also cited the adverse effects of technology to unemployment.

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

Wed, 25 Jan 2012 00:00:00 -0800

Foreign investors are believed to be noticing the notable changes in the Philippine business climate. Members of the Joint Foreign Chambers (JFC) believe that this can improve the foreign direct investments (FDI) of the country which could reach $75 billion this year.

The group presented 471 recommendations to boost the growth of the Philippine economy, including the seven major industries, to Malaca�ang. 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

Tue, 24 Jan 2012 00:00:00 -0800

XMG Global's founding President and Chief Analyst Lauro Vives said the growing demand for information technology-business process outsourcing (IT-BPO) will be a problem as the country currently lacks talent with the needed knowledge and skill set, and this will remain a challenge.

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/

PH BPO Revenues to Match OFW Remittances by 2016

Sat, 21 Jan 2012 00:00:00 -0800

Department of Transportation and Communication (DOTC) Undersecretary Rene Limcaoco said the business process outsourcing (BPO) industry closely lags behind OFW remittances in terms of earnings for the Philippine economy, but will continue to grow and match revenues from Filipino workers who are working overseas. This is likewise stated in the 2011 report from the industry body Business Processing Association of the Philippines (BPAP).

The report also states that the BPO industry contributed around $9 billion or 4.8 percent of the country's gross domestic product, and it is predicted that it will be on the same level with the remittances of OFWs reaching nearly $25 billion in 2016.

The targeted revenue for the BPO sector this year is $11 billion.

The Philippines is now considered as the top global outsourcing location of choice in terms of voice-based services.

Source:
http://www.sunstar.com.ph/

Global Outsourcing Market Posts 7% TCV Growth

Fri, 20 Jan 2012 00:00:00 -0800

Positive growth figures were posted in the 4Q11 Global TPI Index report of leading technology insights, market intelligence, and advisory services firm Information Services Group's (ISG), with the annual total contract value (TCV) hitting the highest point since 2005 at $95 billion. The total number of signed contracts is also at its highest at 870.

Compared to the same period in 2010, a seven percent increase in TCV was witnessed during Q4 2011 at $26.4 billion. The 4Q11 Global TPI Index covers commercial outsourcing contracts valued at $25 million or more. The key drivers of the growth are $1 billion worth contracts from BPO-related TCVs initiated in Europe, the Middle East, and Africa (EMEA).

TPI Index proved that the gradual increase of small contracts helped establish contracting activities for over 10 years. Moreover, contracts which are valued $100 million or lower increased three-fold, while medium and mega deals are stable since 2002.

John Keppel, Partner & President, Research and Managed Services at ISG said the increase in global BPO transactions and continued growth in overall contract value show the evolution of the outsourcing market.

The 4Q11 Global TPI Index also showed that the sudden influx in the largest contracts helped augment the market for the period.

EMEA contributed four out of five mega-deal awards. TCV of mega deals grew 22 percent from the previous quarter. The region's 4Q11 TCV grew 12 percent year-on-year and 27 percent for the whole year at $55 billion.

Source:
http://www.prnewswire.com/

Popular Websites Go Black in SOPA Protest

Thu, 19 Jan 2012 00:00:00 -0800

Wikipedia, Reddit, and I Can Has Cheezburger gave Americans a preview of what it would be like if the House's Stop Online Piracy Act (SOPA) and the Senate's Protect IP (intellectual property) Act were sanctioned. Content of popular websites that joined the protest were either modified to express complete opposition against the bills or were totally shut down on Wednesday.

Wikipedia, Twitter, and Google used their high monthly traffic to their advantage to advocate their outcry, spread awareness, and inspire support from internet users in the US.

Wikipedia, which gets 2.7 billion US visitors monthly, released a statement signed by three administrators, stating �It is the opinion of the English Wikipedia community that both of these bills, if passed, would be devastating to the free and open web.� Almost 2000 users were involved during the decision-making process to shut down the English version of the site.

The main directive of the proposed bills is to expose and block websites that are involved in selling pirated goods, payment processing for illegal sales, etc. However, this would mean more restrictions in the proliferation of online innovations and inflict additional regulatory costs.

Source:
http://www.washingtonpost.com/

Tholons Cites Talent Shortage, Retention as Issues in SE Asian BPOs

Wed, 18 Jan 2012 00:00:00 -0800

Global consultancy firm Tholons stated in its recent study that business process outsourcing (BPO) firms in Southeast Asian countries should focus more on the talent pool shortage as this is vital to IT-BPO and development of the services outsourcing industry. This became more evident as the economic downturn continues to paralyze the US and UK markets, which are then motivated to outsource.

Recruitment for employees with skills needed in the industry and employee retention were some of the major challenges faced by BPO companies. Tholons also said that to address these issues, service providers exert more effort in training their recruitment teams, as well as in improving the skills of new hires. These, however, incur more costs.

Training programs for skills development initiated in Manila, for instance, are crucial to the growth of the country's workforce. One of these is the Finishing Courses for Call Center Agents program that is being provided by the Technical Education and Skills Development Authority (TESDA) of the Philippines.

Moreover, Tholons predicts that current niche specializations will grow and prime the region to providing high-end services.

According to Tholons, the Philippines still reigns in the call center services arena. Malaysia and Singapore, on the other hand, are the top providers for financial and accounting outsourcing and back-office process outsourcing, while Vietnam and Indonesia have made a mark in IT outsourcing.

Meanwhile, Business Processing Association of the Philippines (BPAP) said the local BPO industry contributed $11 billion in revenues in 2011 and is projected to grow 20% this year. It is also expected that the sector will post $25 billion in revenues by 2016.

Source:

http://www.bworldonline.com/

Iloilo Making a Mark in the BPO Industry

Tue, 17 Jan 2012 00:00:00 -0800

Iloilo City Mayor Jed Patrick E. Mabilog recently presented a report by investment and research firm Tholons entitled 2012 Top 100 Outsourcing Destinations. It showed that Iloilo moved up six spots, securing the 92th spot in Southeast Asia.

The Tholons list included other Philippine cities that retained their 2010 position: Manila (4), Cebu (9), and Davao (69). Santa Rosa, Laguna, on the other hand, climbed two spots to 86.

Other Southeast Asian locations that have improved ranks in the list are Singapore (35), Kuala Lumpur, Malaysia (28) and Penang, Malaysia (77). Meanwhile, Hanoi, Vietnam retained its spot at 21, as well as Jakarta, Indonesia at 62. Bangkok, Thailand fell 10 spots to 87 while Ho Chi Minh (Saigon) dropped a spot to 17.

Mr. Mabilog mentioned improvement of city infrastructure and a more economic coal-fired power source in La Paz district as some of the key drivers of the city's position in the BPO map ranking.

He also explained that the Tholons report can be a tool to engage and attract more BPO investors to the city. In terms of land expansion area and commercial spaces, Iloilo definitely has more to offer compared to Cebu. Moreover, there are plans to improve basic infrastructure such as main roads to the city, airport, and recreational areas.

Regarding the pending US bill which will affect jobs in the outsourcing industry, Mr. Mabilog confidently answered that US is only one of the many countries that engage in outsourcing. He cited Europe, Asia, and the rest of America as opportunity sources and believes a lot of US firms do not support the said bill as it may adversely affect the costs of their operations, which will result to more businesses shutting down.

Moreover, the Tholons report stated that the robust growth of NCR (National Capital Region) improved its image as a voice-based BPO hub in Southeast Asia. In fact, the IT-BPO sector saw a 10.6 percent increase in the number of employees. The country has also surpassed India as the top call center destination, with more or less 400,000 call center agents compared to India's 350,000.

Source:
http://www.bworldonline.com/

ILO: Asian BPO Markets may Ease Impact of US Bill

Mon, 16 Jan 2012 00:00:00 -0800

With the pending approval of the US House Bill 3596 or the �Call Centers and Consumers Protection Bill� that aims to discourage American companies from outsourcing overseas, Lawrence Jeff Johnson of the International Labor Organization (ILO) noted that there are other opportunities in the Asian market for Filipinos in the BPO workforce, as more and more Philippine BPO providers are offering services to neighboring countries in Asia.

During the launch of the ILO-Department of Labor and Employment's (DOLE) Knowledge Center, Johnson said US is not the only BPO market for the Philippines.

The ILO representative said the Philippine government should have a backup plan for talented Filipino call center agents in case the anti-outsourcing bill is approved, and use it as basis for revamping employment strategies. He added that Filipino workers have favourable characteristics such as proper education and excellent English communication skills so they have more employment opportunities.

Meanwhile, Johnson said the ILO-DOLE Knowledge Center can help provide a better understanding of labor issues and challenges in the employment world to employers, employee groups, as well as the academe and students, with the help of DOLE and various tools and research materials.

Source:

http://www.gmanetwork.com/

PH BPO Expected to Post Growth despite US Anti-outsourcing Bill

Fri, 13 Jan 2012 00:00:00 -0800

Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo is optimistic that the Philippines' business process outsourcing (BPO) industry will flourish even though there is a proposed House Bill 3596 �Call Center and Consumers Protection Bill� in the US. This aims to discourage US-based firms from outsourcing overseas. In fact, Guinigundo expects the industry will post a 15-20 percent growth in 2012.

Moreover, Guinigundo said once the bill is enforced, it will be unfavourable for the US economy. He explained in a statement that outsourcing offers cost efficiency, and companies can keep their business going through the process. Even if the business is stable, outsourcing can help companies to be more competitive.

Filipino workers get salaries which are relatively lower than their Western counterparts, and are less confrontational compared to those in other BPO locations. While BPO has become one of the key drivers for economic growth, Guinigundo said this does not mean that students should look solely on the industry for employment.

The government has pledged its support to the industry. Department of Labor and Employment Spokesperson Nicon Fameronag said Php500 million was allotted for the training program of those who want to be employed in the call center sector.

Source:
http://www.pia.gov.ph/

Forrester Predicts IT Market Transitions in 2012-2013

Thu, 12 Jan 2012 00:00:00 -0800

In the next two years, slower activity in IT spending will be seen as companies bounce back from the financial crisis, and there will be transition from using old technologies to adopting new ones. These are some of the market insights of technology and market research firm Forrester Research, as stated in their Global Tech Market Outlook for 2012 and 2013.

The IT market posted a 10-percent growth rate in spending back in 2011, according to Forrester Research Lead Analyst Andrew Bartels. This year, however, it will go down to five percent, but will bounce back by 2013 at eight percent.

A shift from old tech platforms to new ones will likely be seen in the next two years. New technologies will enable companies to be more productive and efficient particularly in decision-making processes. This transition will also result to an increase in demand for IT consulting, as companies that will be making the shift will need guidance on how they can benefit from using newer tech platforms.

The report also states that spending on mobile devices will grow to $28 billion by 2013. This can be attributed to the increase in spending on Apple products. There will be a decrease of three percent in spending on Wintel products this year, while cloud computing is seen to fuel growth of the software market.

Source:

http://www.information-management.com

BPO Jobs Primed for Skilled Graduates

Wed, 11 Jan 2012 00:00:00 -0800

During the recent ICT-BPO Industry Forum for Educators at SPi Global in Dumaguete City, the outsourcing sector emphasized an optimistic outlook regarding employment opportunities for the graduates of Higher Education Institutes (HEIs) in Dumaguete City, said ICT Dumaguete Board Secretary Danah Fortunato.

The goals of the forum were to identify the favourable contributions of HEIs to business process outsourcing (BPO) companies in the city and encourage HEIs to work with each other. Also, it highlighted the efforts of BPOs in matching the skills of graduates with what is required in the industry.

According to Randolf Bandiola, ICT Dumaguete president, ICT-BPO jobs have definitely diversified since 2010. Copyediting, customer management, graphics, animation, web design, software programming, architecture, market research, medical transcription, and engineering are some of the services that have been added over the years.

Companies that focus on non-traditional processes such as legal research and accounting are also studying the city's capabilities for handling such processes.

Meanwhile, Negros Oriental's economy, which is more focused on agriculture, can be more advanced and information-based by means of outsourcing, said Guest Speaker Dr. Jeff Sallaz, Fulbright Scholar and Professor of Sociology at the University of Arizona.

Sallaz said foreign investments brought on by BPOs from 2000 to 2010 can be the answer for the lack of investment and manufacturing growth in the 70's and 80's. He added that BPO is a refreshing source of income for an economy that depends on agriculture and remittances. He also predicts that the number of employees in BPO will likely increase from 500,000 in 2010 to 1.3 million by 2016.

Source:
http://www.visayandailystar.com/

WNS Ltd Chief: R&D Crucial to India's Market Growth

Tue, 10 Jan 2012 00:00:00 -0800

Keshave R. Murugesh, CEO of the Mumbai-based global business process outsourcing company WNS Holdings Ltd., recently said in a statement that Indian service providers should be able to constantly innovate and develop new solutions for the needs of emerging markets. One of those solutions is to keep on providing high end services and work on research and development (R&D) strategies.

He added that India needs to retain its image as one of the preferred global outsourcing destinations as other countries are copying the Indian business model to attract more clients.

He also highlighted that the hype for �IT-BPO bundled deals� during the first few months of 2011 eventually died down because the efforts of clients to rely on several bundled IT and BPO providers were not that effective. He added that companies worldwide are beginning to match business models with the latest market demands.

The three Is - ideate, incubate, and innovate - will play a role in outsourcing. Murugesh said those who can adopt the three Is will be able to offer next generation solutions which will spell success in the global arena.

Even with the healthcare reforms in the US and insurance regulations in the UK, clients will still look into other factors for outsourcing aside from cost reduction. These are delivery models and nearshore opportunities combined with offshore solutions.

Source:
http://indiatoday.intoday.in/

US Firms Urged to Bring Jobs Back rather than Outsource Offshore

Mon, 9 Jan 2012 00:00:00 -0800

With the elections approaching, US President Barack Obama is trying to bag more votes and hold the presidential position for the second time by targeting the middle class segment through creating an advocacy against firms that are outsourcing jobs overseas. The US president is making an effort to bring jobs back home and even gave his word in assisting other business owners who would do so. He is also planning to create a program that he hopes will attract investors to the country.

Based on federal official comments, the Obama government is expecting an increase in employment opportunities in the US and attracting companies to not only invest and source jobs locally, but also to make use of US-based factories and plants.

There has been an ongoing debate about US companies that are moving jobs overseas, particularly to Asian countries like China and India where costs of labor and infrastructure are relatively lower. Ohio and Michigan are some of the industrial provinces that are significantly affected by reduced job opportunities in the manufacturing sector.

Republicans who have repeatedly countered the Obama administration were the ones who said that Obama's regulations regarding outsourcing will be the solution to the unemployment rate in the country. In fact, a study released last Friday states that the unemployment rate fell to more or less 8.5%, the lowest within the past three years.

Source:
http://www.forexdice.com/

Global Healthcare BPO Market Revenues to Reach $330B in 2016

Fri, 6 Jan 2012 00:00:00 -0800

MarketsandMarkets, a US-based global market research and consultancy firm, released a study stating that the global healthcare business process outsourcing (BPO) market will post revenues reaching $330 billion by 2016. Entitled "Healthcare BPO Market - Payer (Claims processing), Provider (Medical Billing & Coding) and Pharmaceutical (Clinical trial & Contract manufacturing) Outsourcing - Global Analysis & Forecasts (2011-2016)", the report highlights the key influencers of the global healthcare outsourcing market and provides details on risks and opportunities in various regions.

A compound annual growth rate (CAGR) of 21.4% was posted by the healthcare outsourcing market, with pharmaceutical outsourcing taking 64.3% and is predicted to establish a CAGR of 14.6% from 2011 to 2016.

Under the healthcare payer outsourcing market, claims processing represents the largest share with 59% and is identified as the most expensive function in the industry.

The report also states that outsourcing is still considered as the best solution to reduce cost and maintain the quality of service for the payer industry. Insurance companies, for instance, see outsourcing as a solution considering certain factors such as decreasing margins, higher rate of claims, as well as tighter competition in the market.

There are more opportunities for the payer industry, as 1,300 health insurance companies have emerged since 2009. However, only 10% of work from the large market is being outsourced at present.

Source:
http://www.sacbee.com/

DOLE to Carefully Monitor PH BPO Activities

Thu, 5 Jan 2012 00:00:00 -0800

The proposed US House Bill (HB) 3596 �Call Center and Consumers Protection Bill� incited Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz to order the Philippine Overseas Labor Office (POLO) in Washington to observe the progress and impact of the bill on business process outsourcing (BPO) firms in the Philippines.

Baldoz said that while it is still early to tell what impact the bill would bring considering that it is not yet signed into a law, a briefing and impact assessment will be asked from the country's labor attach� in the US.

The main goal of the bill is to stop US companies from outsourcing operations to offshore locations. It also includes several clauses that will alter offshore call center protocols. Some of which are: callers from America will be given an option to be transferred to a local agent and the operator should disclose his/her location when asked.

Furthermore, Philippine administrators have asked the Aquino government to act on the situation to protect and promote the country's BPO sector, as it is now considered the leader in providing voice-based work.

Baldoz added that if the US bill becomes a law, BPO operations, as well as employment in the country will be adversely affected.

Source:
http://www.abs-cbnnews.com/

MicroSourcing Extends Help to Typhoon Sendong Victims

Wed, 4 Jan 2012 00:00:00 -0800

Typhoon Sendong (International name: Washi) triggered massive flash floods last December 16. This led to more than 1000 casualties in Mindanao, specifically in Iligan City and Cagayan de Oro. The typhoon also hit some parts of Visayas and Palawan.

MicroSourcing stepped up to help those who were greatly affected by this calamity. The PR and Social Media Marketing arm of MicroSourcing, headed by Nona Tajanlangit-Kooijman, worked together with Red Cross and launched the Sendong Relief Drive, encouraging all employees to share their blessings and donate basic necessities for the families who are staying in evacuation centers in Iligan City and Cagayan de Oro.

In a matter of nine days, MicroSourcing was able to collect 13 boxes of clothes, 251 MS Family Bags containing relief goods, two boxes of assorted medicine items, two boxes of rice, bottles of water, new blankets, and toys.

Cash donations were also accepted, with a total of P130,037.75 as of December 29.

Most of the clothes were delivered to the affected areas through the Red Cross military plane. Meanwhile, 170 MS Family Bags and two boxes of medicine items were personally distributed by MicroSourcing volunteers to evacuees in Tambacan Elementary School (Iligan City) and West City Central School (Cagayan de Oro). The rest of the donations will be delivered through Red Cross.

MicroSourcing is very thankful to everyone who supported this endeavor, from the employees and clients who have donated (cash and/or in kind) to the volunteers (from the management team and Creative Services Group) who made this possible.

Solon Says US Anti-outsourcing Bill to Affect PH BPO

Wed, 4 Jan 2012 00:00:00 -0800

The proposed House Bill (HB) 3596 or the �Call Center and Consumers Protection Bill� in the US is considered as a protectionist measure and may gravely affect the business process outsourcing (BPO) industry of the Philippines.

Rep. Evardone, who is also the Chairman of the House Committee on Public Information, urged the Aquino government to launch a campaign before the United States Congress to stop this initiative which will likely be approved come election season.

The House Bill states that call center agents are now required to state their location and should ask US callers if they would want to be transferred to a local operator. Also, companies that fail to report their location to the US Department of Labor within 60 days will receive a fine of $10,000 per day. They should likewise be able to report within 120 days prior to their plans of moving work offshore. Lastly, offshore call centers will not be qualified for loans and grants.

Evardone said that if this bill becomes a law, it would affect the BPO industry of the Philippines. He also stated that the government should support the country's BPO sector as it is currently the leader in voice-based processes globally. Moreover, there is a need to protect the factors that make the country an ideal outsourcing destination - a pool of workers with good English communication skills, as well as advanced telecom infrastructure setup.

He added that the industry earned $100 million in 2001 and has doubled its revenues annually, hitting the $3.3 billion mark in 2006.

Source:

http://www.sunstar.com.ph/

BPO Remains Revenue Generator for Cebu

Mon, 2 Jan 2012 00:00:00 -0800

The business process outsourcing (BPO) sector, which posted a yearly growth rate of 20 percent, is expected to provide jobs and opportunities in the province of Cebu which could echo into the coming years.

Francis Monera , President of Cebu Property Ventures Development Corp. (CPVDC), the developer of Cebu IT Park, said the growth of BPO resulted to an increase in the demand for office spaces. That is why property developers in Cebu are investing in office leasing.

Monera added that factors such as a large educated workforce from nine large universities and the healthy fiscal environment continue to attract companies and investors to establish operations in the province. In fact, it was reported that Aegis People Support recently launched its own Aegis Tower Cebu at the Cebu IT Park.

According to Monera, Cebu Park District is set to house 20 percent more of its current 50,000-strong workforce once the buildings are completed. Some of the firms that are said to be expanding are Stream Global, Convergys, HP, Fluor Daniels, Dell, and JP Morgan & Chase.

Monera also said Cebu is being primed as the second most viable BPO destination in the Philippines, with Manila being the first, and that more jobs will be provided once the hubs start operations.

As for service offerings, Jerry Rapes, Chairman of information and communications technology (ICT) at Cebu Chamber of Commerce and Industry (CCCI), stated that with additional training and proper allocation of skills to job openings, Cebu's candidates will be competent enough to handle knowledge process outsourcing (KPO)-related processes.

This was also supported by Monera, who's also the Chairman of the Board for Cebu Educational Development Foundation for Information Technology (Cedf-it). He identified the private sector, academe, and local government as a team, striving to improve the skills of potential candidates.

Source:

http://www.sunstar.com.ph/

IAOP's Outsourcing Predictions for 2012

Wed, 28 Dec 2011 00:00:00 -0800

The International Association of Outsourcing Professionals (IAOP) recently released its top predictions or trends in the outsourcing industry for 2012.

The outsourcing industry is set to witness several changes in technology, market, as well as in terms of recession and even the elections. It is also anticipated that the US, nearshore countries, Brazil, Russia, India, and China will benefit the most next year.

The top outsourcing trends for 2012 are as follows:

Near shoring: The key driver for large firms to source in neighbouring countries or locally is the incentive and benefits- related efforts of the government.

Performance-based contracts: The client and provider will come up with performance-based contracts that will be widely used by various partnerships all over the world. Upfront relations such as customer support will also gain popularity, instead of the usual back-office setup.

New outsourcing destinations: Brazil, Russia, India, and China or BRIC will take the spotlight in 2012.

The dawn of new technology: Since technology has opened a lot of opportunities for various sectors, there's no question that the outsourcing industry will leverage each type of technological avenue to improve business processes, collect data, and even recruit new talent.

Security of the cloud: With the proliferation of the cloud come various security issues that may make or break a company. Providers and clients will definitely have a hard time keeping up with the trend and protect customer and company documents.

More mergers and acquisitions: The number of buyouts will definitely increase as appraisals dwindle and growth slows down for various sectors.

Hiring when needed: The sector is set to experience an increase in the number of candidates who specialize in improving the company's growth strategies.

Source:
http://www.marketwatch.com/

PH BPO Posts Highest Number of Job Vacancies this Year

Tue, 27 Dec 2011 00:00:00 -0800

According to figures posted by Phil-JobNet, the official online job portal of the government, the business process outsourcing (BPO) sector tops the list of job openings for private sector companies. This was validated by records collated by the Bureau of Local Employment (BLE) where job vacancies reached 39,281 as of September 2011. Baldoz said this affirms the Philippines' standing as a global BPO location of choice.

The report also included that while there's a large number of job opportunities in the industry, the job profiles of applicants do not match the needs of BPO companies. Only 1,030 candidates applied for BPO positions from January to September this year.

BLE Director Ma. Criselda Sy said call center agents remain at the top of the list in terms of job vacancies, from 2010 up to September in 2011.

A P1.1-billion stimulus fund was provided by the government to aid the Technical Education and Skills Development Authority (TESDA) in providing training programs - P500 million of which was allotted for the BPO sector's �near-hires�. TESDA is also planning to reach out to other cities to assist those who wish to enter the BPO workforce.

Phil-JobNet also showed that other in-demand positions were workers, carpenters, and drivers. Customer service assistants had the second highest number of vacancies at 16,589.

Source:

http://www.gmanetwork.com/

TESDA to Provide Finishing Courses for Call Center Agents

Mon, 26 Dec 2011 00:00:00 -0800

Business process outsourcing (BPO) is one of the revenue generators in the Philippine economy. That is why the government strongly supports the industry. To further improve the country's pool of Filipino talent, the Technical Education and Skills Development Authority (TESDA) will provide free finishing courses for call center agents (FCCA) as part of the Training-for-Work Scholarship Program (TWSP).

A total of 2,285 slots will be allotted to college graduates and students who have finished at least four semesters, according to TESDA-Cordillera Regional Director Yolanda Olano. She added that the TWSP is not only exclusive to those who are in Baguio and Benguet area - people from Cordillera may also apply for a grant.

Of the 2,285 scholarship slots, 500 candidates will be chosen from Baguio City. Baguio-based organizations such as Globaltech, CTEISI, and Informatics College Baguio Inc, are the partner Technical-Vocation Institutions or TVIs of TESDA for this program. Interested college graduates and students can go their city or provincial chief executives for more information.

For those who want to further improve their skills or learn something new to be suitable for other job opportunities, Olano said they could avail of other training programs being offered by TESDA-CAR's Regional Training Center and TVIs.

Source:

http://www.pia.gov.ph/

Everest Predicts Global Procurement Outsourcing to Grow 20%

Fri, 23 Dec 2011 00:00:00 -0800

Industry analyst and research firm Everest Group recently released a report entitled 2012 Market Predictions which notes that global procurement outsourcing will grow by 20 percent next year as clients diversify their procurement deals covering various processes such as inventory management, order fulfilment, and logistics with the help of several service providers. The firm also believes that government sectors worldwide will be more proactive, specifically the UK with its ongoing procurement.

The study also stated that contracts will have a broader scope, with financial executives touching up on procurement outsourcing. This may result to outsourcing contracts that will focus mainly on finance and accounting, as well as purchasing.

Companies like Accenture, ICG Commerce, and IBM are considered strong players in the procurement sector, and there are firms that are likely to make a mark in the market as they post rapid growth. Everest also stated that source-to-contract (S2C) and procure-to-pay (P2P) will grow in 2012.

Source:
http://www.supplymanagement.com/

Indian BPO Sector Posts Big M&A Deals throughout 2011

Thu, 22 Dec 2011 00:00:00 -0800

India's business process outsourcing (BPO) industry experienced slow growth for 2011, but several notable merger and acquisition (M&A) events were posted throughout the year.

For 2011, the global economic downturn continued to loom on numerous sectors including India's BPO industry and resulted to low appraisals. Nevertheless, mergers and acquisitions still proliferated, with Serco's buyout of Intelenet and the acquisition of Ventura by Capita. ValueNotes Sourcing Practice Research Analyst and Manager Deepali Sathe said these were done to further develop the markets and capabilities of the companies.

Other M&A deals include Genpact's acquisition of EmPower Research, as well as Headstrong and Xerox (ACS) acquiring Innova Consulting.

The highlight of the year was the size of the deals, with Intelenet's acquisition being the largest to date. It was valued at $600 million, while Genpact's was worth $550 million.

India's software industry body NASSCOM said the country takes in 37 percent of the global BPO market, providing services to 66 countries. According to research firm Gartner, India's BPO sector may be worth $2.5 billion in 2014.

Source:
http://www.mydigitalfc.com/

MicroSourcing Takes Part in My Dream in a Shoebox Outreach Program

Wed, 21 Dec 2011 00:00:00 -0800

In this season of joy and giving, MicroSourcing was given a wonderful opportunity to be part of My Dream in a Shoebox - an initiative that aims to give shoeboxes filled with school supplies to less fortunate children.

Now on its third year, this program was spearheaded by outsourcing industry body Business Processing Association of the Philippines (BPAP) and marketing communications company TeamAsia.

The first distribution day was held last December 19 in three schools in Lipa, Batangas. More than 700 shoeboxes and 10 PCs were given to the students of Tambo Elementary School, 400 shoeboxes and 10 PCs to Paninsingin Elementary School, and 500 shoeboxes and 10 PCs to Pinagkawitan Elementary School.

Nona Tajanlangit-Kooijman, Head of PR and Social Media Marketing, encouraged all MicroSourcing employees to be a Shoebox Sponsor. They gave shoeboxes with school supplies, while others donated Php50 for a set of items per box.

In the end, the company was able to donate more than 300 shoeboxes and a total of Php14000 in cash.

Aside from these, MicroSourcing also plans to donate five PCs for the computer laboratories of the chosen schools.

A lot of companies served as sponsors to this outreach program. These include Teletech, Chevron, Shell, FirstSource, PacificHub, Fujitsu, JP Morgan Chase & Co., Henkel, Avis, Stellar, Bank of America, ePLDT, and StarTek.

Everest Study: Enterprise Crowdsourcing Offers 70% Cost Advantage

Tue, 20 Dec 2011 00:00:00 -0800

The results of the study �Every Crowd Has a Silver Lining� done by Everest Group and Lionbridge Technologies, Inc. (Nasdaq: LIOX) showed that more and more large organizations are inclined to use crowdsourcing instead of traditional business process outsourcing (BPO) for its cost reduction features, flexibility, and provision of access to a more diverse talent pool.

Other vital results of the study are:

� Companies use the �private crowd' model for processes like content localization, support for the shift from traditional BPO, and more.

� It provides more economic advantages - around 70 percent compared to traditional outsourcing.

� Companies enjoy reduced costs in labor and recruitment as crowdsourcing enables them to gain access to talent more quickly.

� Contracts that have been using crowdsourcing for quite some time gain additional perks from third-party service providers like quality assurance and management infrastructure.

The report also stated that crowdsourcing is also applied to almost 50 percent of processes that are related to products and manufacturing.

Sarthak Brahma, Practice Director, Pricing Assurance, Everest Group said crowdsourcing is a new wave method of using global professional services for new processes and is almost as cost-effective as traditional BPO.

Enterprise crowdsourcing is perfect for companies that have large staffing requirements. It enables companies to make use of a variety of talents from pre-qualified workforce to �private crowd�. In line with that, the managed service providers see to it that clients are able to maximize the benefits of crowdsourcing.

Source:
http://en-us.lionbridge.com/

PH Becoming a Prime Location for Investors

Fri, 16 Dec 2011 00:00:00 -0800

Swiss financial services firm UBS Investments recently stated that even with the vast improvements in the political and economic aspects of the Philippines, its equities will remain as the key driver for funds next year.

UBS Investments Research Executive Director Jody Santiago said the country is becoming a �safe haven�, attracting investors amidst the economic and political problems. However, the current economic crisis in Europe and higher appraisals of stock might affect the early part of the incoming year.

Meanwhile, the one-year target for the Philippine Stock Exchange Index (PSEi) was set at 4,700 by the local unit of the Swiss banking giant, a 10-percent increase from Wednesday's closing. This corresponds to UBS Investments' projected Philippine corporate earnings for 2012, while it is predicted that the economic growth will reach 3.3 percent next year.

UBS Investments also said they favor companies that are doing well and have doable strategies for the firm's rate cut of 50 basis points next year. The industries that they prefer are infrastructure, tourism, mining, business process outsourcing (BPO), as well as the telecommunications sector.

Source:
http://businessmirror.com.ph/

Frost & Sullivan: Security-as-a-Service Posts 17.2% Growth in 2011

Thu, 15 Dec 2011 00:00:00 -0800

Frost & Sullivan's recent cloud computing research, A Strategic Analysis of the ANZ (Australia, New Zealand) Security as a Service Market, highlighted the rapid growth of Australia's security-as-a-service market at 17.2 percent in 2011 and is valued at $38.4 million. The growth is said to be driven by relocation of in-house software and the introduction of the cloud to small businesses. It is projected to post a 16.6 percent compound annual growth rate up until 2016, and will be valued at $83 million.

Seventy-two percent of cloud computing users in Australia make use of software-as-a-service. Australia is the top cloud consumer worldwide and the largest market in the Asia Pacific region in terms of revenues.

The notable shift to security-as-a-service was largely driven by businesses that want to identify IT expenditures as managing costs instead of investments. This enables companies to properly manage monthly budget and additional benefits like lower initial costs, proper monitoring, flexibility, and accessibility.

Another factor that had driven the shift to security-as-a-service is lack of local IT experts. The security-as-a-service model eliminates these issues by means of global labor arbitrage, relying on service providers to be more responsible in the maintenance and security of each account. Businesses are also inclined to use security-as-a-service because of its capabilities, ease of use, and security.

The banking, financial, and insurance (BFSI) industry is the largest sector that uses security-as-a-service from the cloud.

Even if the market is growing, organizations still doubt the security and control of data by third party service providers. Potential clients are also concerned about delays. Technologically speaking, the points of network connections are farther from each end, which means it may take much longer to transfer data.

Source:
http://www.prwire.com.au/

Survey Shows Late Client Payments Affect Outsourcing Growth

Wed, 14 Dec 2011 00:00:00 -0800

A recent survey by consulting and outsourcing services provider Capgemini, together with Harris Interactive, revealed that executives of Fortune 1000 companies face the negative impact of delayed client payments to their outsourcing growth, recruitment process, and revenues.

Based on the Executive Insight Survey which was done online in September, twenty nine percent of respondents said delayed cash flow affects growth. Other areas that affect payment delays are hiring capabilities (27 percent) as well as revenues (20 percent). Late payments also affect the ability to offer wage increases, support on innovation, and investment in research and development.

Almost half (45 percent) of Fortune 1000 executives stated that they have experienced an increase in deferred payments from their clients, while 15 percent said they've seen a 25-percent increase in late payments last year.

There are several strategies companies can do to deal with payment delays. One of these is outsourcing cash collections. Majority of the companies that do so reported that it reduced their bad debt loss. They've also posted a 34-percent increase in profitability, and 32-percent growth in all points of the revenue cycle.

Source:
http://www.marketwatch.com/

Gartner Sees Growth in Affordable Cloud Computing

Tue, 13 Dec 2011 00:00:00 -0800

According to IT analyst firm Gartner, low-cost cloud computing will be popular in the next few years. With this forecast, there's a possibility that companies will change their views in pricing and value in the marketplace.

Gartner assumes that revenues from outsourcing IT infrastructure will be greatly affected. The growing popularity of low-cost cloud computing will have a negative impact to the IT services market. Moreover, due to the increase in demand and usage of mobile devices and applications globally, companies are now shifting from desktop clients to web-based services.

Gartner also predicts that with better information security, majority of the top-1,000 companies worldwide are determined to store valuable sensitive data in the public cloud. Nevertheless, the firm believes that the number of cybercrimes will still grow. It is estimated to increase by 10 percent annually.

According to a document published by the Financial Times, there are proposals to the European Commission that involve fining companies if there are breaches in data security.

Source:
http://hosting.onestopclick.com/

PH Expected to Post 4% GDP Growth Rate this Year

Mon, 12 Dec 2011 00:00:00 -0800

Businessmen in the country believe that the Philippine economy will see a four percent increase in its gross domestic product (GDP) this year.

The outgoing president of the Philippine Chamber of Commerce and Industry (PCCI), Ambassador Francis Chua, said this prediction of four percent growth is lower than the revised 2011 growth target which is 4.5 to 5.5 percent. He also said that businessmen should be happy that the local economy remained positive despite the economic crisis in Europe and the US. He added that if not for the natural disasters that negatively affect the growth of the country's agricultural produce during the fourth quarter, the growth rate might be higher.

Chua is confident for 2012, with the implementation of the Public Private Partnership program and other projects, OFW remittances, as well as this year's top contributors: tourism, business process outsourcing (BPO), and mining. These industries will be revenue generators for the economy next year.

Source:
http://www.mb.com.ph/

Everest Says Outsourcing in China will Continue to Grow

Sat, 10 Dec 2011 00:00:00 -0800

It is evident that hearsays don't stop business owners from outsourcing to China. In fact, industry analyst firm Everest Group said China's business process outsourcing (BPO) industry has grown almost three times from $1.2 billion in 2007 to $3.5 billion in 2010. More than half (65 percent) of it came from IT outsourcing.

Everest added that outsourcing in China will continue to flourish. The country's BPO market could hit the $10 billion mark by 2015 and may well become an ideal offshore ITO service provider in the near future.

China's already large workforce (5.8 million in 2010) has been reinforced with engineering and management graduates. However, signing contracts with BPO companies in China is harder than with their counterparts in India and the Philippines. Everest likewise stated that China doesn't offer a clear advantage like the other two - higher labor costs and lack of enough workers with English communication skills in the country are seen as drawbacks by investors.

On the other hand, companies see China as a great way to tap emerging markets in Japan, Hong Kong, and Korea.

Source:
http://www.supplychaindigital.com/

US Anti-outsourcing Bill to Affect Offshore Call Centers

Fri, 9 Dec 2011 00:00:00 -0800

In an effort to bring jobs home, Rep. Tim Bishop (D-N.Y.) and Rep. David McKinley (R-W.Va.) introduced the bipartisan bill that is set to reprimand US companies which are sending call center work offshore, making them ineligible for government-regulated benefits such as grants and loans. Aside from that, the US Call Center Worker and Consumer Protection Act mandates firms that are planning to outsource offshore to inform the Labor Department 120 prior to filing. Bishop added that the bill covers all industries.

The bill also states that call center agents will be required to reveal their location when asked and give customers the option for their calls to be transferred to a local representative.

It is a known fact that labor rates are lower in India and the Philippines. USA Today recently reported that the Philippines' call center sector has overtaken India's, although some call center jobs are seen to flow back into the US.

On behalf of 700,000 workers, 150,000 of whom are customer service representatives, the Communications Workers of America (CWA) strongly supports the call center bill. The union's Chief of Staff, Ron Collins, said Americans are missing out on call center jobs due to offshoring and praised AT&T for bringing 5,000 jobs back home.

On the other hand, free-trade GOP members are not expected to support the said bill but due to incessant complaints from unhappy customers, majority of Republicans as well as Democrats would probably respond more positively with call center agents based in the US.

Source:
http://www.huffingtonpost.com/

Call Centers' Absenteeism Rate Higher in PH and Asia Pacific

Thu, 8 Dec 2011 00:00:00 -0800

Business process outsourcing (BPO) employees in the Philippines and rest of Asia Pacific are more likely to take leaves of absence than in other countries due to erratic working schedules. Nevertheless, call centers in Asia scored 100 percent when it comes to customer satisfaction as agents in this area, particularly in the Philippines, are known to be �more patient�.

According to a report done by Dimension Data, the Asia Pacific region posted a higher absenteeism rate at 15.5 percent than the rest of the world at 14.9 percent.

Dimension Data's General Manager for customer interactive solutions Nagi Kasinadhuni said graveyard work shift is the reason call center agents in Asia have a higher absenteeism rate. However, the region had posted a lower attrition rate.

Kasinadhuni added that Asian contact centers are shifting their service offerings to becoming customer management centres as they are expanding from being just a contact center. Also, the study showed that improvement of service will entail a lot of upgrades for call centers and that customer service is now more mobile as smartphones become more popular.

The Philippine call center sector posted an annual growth rate of 21 percent in the last five years, from $2.6 billion in 2006 to $6.2 billion last year.

Source:
http://www.manilastandardtoday.com/

DTI to Develop Industry Roadmaps for Competitiveness, Growth

Wed, 7 Dec 2011 00:00:00 -0800

The Department of Trade and Industry (DTI) is eyeing the development of industry roadmaps to boost competitiveness and economic growth. DTI Undersecretary for Industry Development and Trade Policy Adrian S. Cristobal Jr. recently announced that consolidating industry roadmaps will be done to determine key strategies, essentials when it comes to investments, and policy support needed towards competitiveness and growth.

The Philippines got the 75th spot in the World Economic Forum's Global Competitiveness Report involving 142 countries.

Local business organizations are expected to provide an all-inclusive development plan that shows how the government can sufficiently support each industry. DTI will also collaborate with the private sector through several organizations such as the National Competitiveness Council (NCC), Federation of Philippine Industries (FPI), and Joint Foreign Chambers of the Philippines.

DTI eyes developing roadmaps for the following:

� electronics, ICT/BPO/call centers, shipbuilding, steel fabrication, mining, and plantation farming.
� small and medium enterprises (SMEs) agribusiness, tourism, processed food, handicraft, and manufacturing businesses.
� car/tire manufacturing and other industries with large scale potential.

According to Cristobal, DTI will help further develop the existing roadmaps of IT/BPO and electronics industries.

Source:
http://www.interaksyon.com/

ETON Properties to Bank on the BPO Sector

Tue, 6 Dec 2011 00:00:00 -0800

170,000 square meters - that's the total leasable space that ETON Properties Philippines currently has, and knowing that there is an increasing demand for BPO office space, the firm is even planning on expanding to accommodate the growing business process outsourcing (BPO) sector. Its current properties at Eton Cyberpod Corinthians and the two new buildings at Eton Centris cover almost 70,000sqm or seven hectares.

Danilo Ignacio, Eton's President, said that the second BPO building at Eton Centris has started its leasing contracts early this year, while the other two buildings will be launched in 2012. These buildings are made for companies that want to take advantage of the labor pool in the northern part of the Metro. He added that the company is focusing more on BPO buildings and is developing the upcoming sites in accordance to the standards of offshore outsourcing companies.

With the high demand for office space, Ignacio said the two BPO buildings may be available for leasing even if the construction is not yet finished. Moreover, he said that if all goes well, they might opt to add another BPO building instead of a residential one in Sta. Rosa, Laguna.

Source:
http://www.malaya.com.ph/

PH Call Center Sector Expects up to 25% Growth until 2016

Mon, 5 Dec 2011 00:00:00 -0800

Benedict Hernandez, President of the Contact Center Association of the Philippines (CCAP), predicts a faster growth rate for the country's call center industry - at an annual growth rate of 20 to 25 percent. This was lower than the initial growth forecast of only 15-20 percent, though he said the sector is more sustainable now. According to CCAP's mid-year evaluation for 2011, the 15 to 20 percent growth in revenue and workers are attainable.

This year, the sector is expected to post $7.1 billion in revenues with more than 400,000 in the workforce. In 2010, it employed 344,000 workers and generated $6.2 billion in revenues.

Hernandez said this projected growth will driven by expansion of companies and new investments. He also sees �captive� models as one of the most sought after solutions as businesses consider outsourcing amidst the financial crisis.

Hernandez identified the financial crisis in the US during 2008 and 2009 as the worst hurdle for the industry. However, he added that during those times, larger global companies began outsourcing their manpower offshore to manage costs, which contributed to the �significant� growth of the sector and that businesses are always open to other options for cost reduction.

Meanwhile, the Commission on Higher Education and CCAP recently signed an agreement to improve college curricula and offer diverse training programs. Hernandez further explained that courses related to BPO will be available in universities as part of the educational programs by 2012-2013.

Source:
http://www.malaya.com.ph/

Philippines Beats India in Voice-based Operations

Fri, 2 Dec 2011 00:00:00 -0800

Westerners who are transacting with their local airlines, telecoms, and financial institutions are probably speaking with a call centre agent from the Philippines. This is due to the fact that the Philippines has overtaken India in the call centre sector.

Contact Centre Association of the Philippines Executive Director Jojo Uligan said India, the pioneer in offshore call centre operations, provided 350,000 agents, but was overturned by the Philippines even if it was less populated.

The Philippines became a favourite among BPO providers due to the fast evolution of the outsourcing industry and English speaking skills of workers in the country which customers prefer and understand more. Filipinos are also accustomed to mainstream Western culture, whereas Indians are more inclined to the British culture. Industry experts also noted that Filipino agents were able to assist complainants who said they were having a hard time understanding Indian agents.

Other advantages of putting up shop in the Philippines are better utility infrastructure, less power interruptions, and safer environments for employees.

The outsourcing industry in the Philippines contributed $9 billion or 4.5 percent to the country's gross domestic product, a major improvement from figures reported in 2000. The industry also gets strong government support through training programs and tax breaks.

Industry leaders expect that the Philippine outsourcing industry will show continuous growth and expand service offerings, tapping business processes such as accounting and insurance claims processing.

Source: http://timesofindia.indiatimes.com/

ADB Says PH Shouldn't Depend on BPOs

Fri, 25 Nov 2011 00:00:00 -0800

The Asian Development Bank (ADB) said depending too much on the services sector, specifically business process outsourcing (BPO), in the Philippines will not drive growth, contrary to what the government was saying in its inclusive growth plan.

It is apparent that the country is still troubled with the high unemployment rates, even if the BPO sector began to grow incessantly from 2001, said ADB senior country economist Norio Usui. He added that there are two important prerequisites to simplify the country's growth. These are services and manufacturing.

In Usui's recent presentation at the Federation of Philippine Industries (FPI)-organized First Philippine Manufacturers and Producers Summit, he said that the Philippine economy will not grow without manufacturing. This, together with modern services, will drive economic growth.

He later on added that even if the BPO sector has grown into a $10-billion industry, contributed 4.8 percent average economic growth, and employed half a million people from 2000 to 2009, there is low activity in the manufacturing sector. Also, investments are believed to have weakened because the country focused too much on services. Moreover, Usui said that while the BPO industry greatly helps the economy, it only provides job opportunities to those who have proper education.

According to Josef T. Yap, President of the Philippine Institute for Development Studies (PIDS), the contribution of the country's manufacturing sector to the GDP dwindled to 21.4 percent in 2009 from 22.2 percent in 2000 and 25.7 percent in 1980.

Manufacturing sectors in other countries in Southeast Asia reinforced economic growth. In fact, Indonesia's manufacturing GDP increased 26.4 percent in 2009 from 13.5 percent in 1980. Thailand's sector grew from 21.5 percent to 34.1 percent. Malaysia also posted an increase - from 21.6 percent to 25.1 percent.

Source:
http://www.abs-cbnnews.com/

Globe Business Reiterates Support to PH BPO

Thu, 24 Nov 2011 00:00:00 -0800

Globe Telecom's corporate division, Globe Business, issued a statement that they are fully supporting the growth and development of the IT-BPO industry.

In her �Sustaining a 24/7 Innovative Culture� presentation to the delegates from various countries, Grace Jarin-Castillo, Globe Business' Enterprise Segments Head, recapped the firm's plans of providing not only technological options for the entire industry but strong partnerships for business solutions as well.

Jarin-Castillo said that Globe is fairly known for having employees who are assertive and innovative for the sake of improving a customer's experience. Globe believes that one of their strongest assets is its people. As a matter of fact, the firm provides their team members with ample tools and training to encourage them to provide better customer service. She added that �The Globe Way� usually helps the employees to be kept on track with the firm's values and commitment of putting customers' needs first.

Meanwhile, the Philippines was recently dubbed as the �rock of the BPO industry� by BPO leaders worldwide. It is projected to post $11 billion in revenues this year and $25 billion by 2016, in accordance to the IT-BPO Road Map 2011-2016.

Source:
http://www.mb.com.ph/

MicroSourcing Set to Open New Office at MOA Complex

Wed, 23 Nov 2011 00:00:00 -0800

After opening a delivery center in Cebu City, MicroSourcing is set to open another office in January next year - this time at the Mall of Asia (MOA) Complex in Pasay City, Metro Manila.

This new office occupies the 10th floor of TwoE-comCenter, a modern structure that is designed for business process outsourcing (BPO) companies. Its features include an iconic archway that connects the two buildings. This creates a large window, offering a breathtaking view of Manila Bay.

TwoE-comCenter is registered under the Philippine Economic Zone Authority (PEZA), with 100% backup electricity, 20 elevators, smoke detectors, sprinkler systems, and a cabling system provided by the country's leading telecommunications companies. It is also environment-friendly, making use of insulated glass units and energy-saving air conditioning systems.

The building was developed primarily for the corporate sector, but it also has features and facilities for recreation and entertainment. It will soon be home to several establishments where employees and guests can shop. They can also eat and relax at fine dining restaurants located at the fourth level.

Gartner Predicts Global IT Spending to Reach $3.7 Trillion this Year

Wed, 23 Nov 2011 00:00:00 -0800

According to research and advisory firm Gartner, the global Information Technology (IT) spending will hit the $3.7 trillion mark this year, with $1.01 trillion coming from emerging markets. It is also predicted that India will see growth in IT spending. In 2012, it is predicted that IT spending will increase by 9.1% to $79.8 billion.

This can be attributed to enterprises which are investing more on IT systems amidst global financial woes. However, according to a separate report, the US market is now becoming saturated. Two-thirds of the yearly revenues of India's IT industry come from US companies.

Senior Vice-president and Global Head of Research Peter Sondergaard said firms are getting more interested in IT outsourcing to address challenges or improve certain processes such as customer support, supply chain management, etc. He added that IT has become one of the main processes and functions that companies need to expand nowadays, with more or less 350 companies around the world investing more than $1 billion this year in IT for business growth.

Source:
http://www.livemint.com/

New Wave Cities and Urban Areas Ready for BPO Tenants

Tue, 22 Nov 2011 00:00:00 -0800

Robinsons Land Corporation (RLC) announced that their mall-based business process outsourcing (BPO) offices in New Wave Cities in Luzon and Mindanao are now ready for occupancy.

New office spaces in malls in Paco, Davao City and Tarlac City, an additional 21,000 sqm, are now available for BPOs for leasing, said Arlene Magtibay, RLC's Business Unit General Manager of Commercial Centers Division. She added that if the BPO market demands additional office space, they can proceed with the construction in Tacloban and Dumaguete, which can be customized based on the requirements of potential tenants.

According to Henry Yap, Business Unit General Manager for Office Buildings Division, more RLC BPO buildings are in the construction phase in the Ortigas Business District, adding a total of 80,000sqm to its portfolio. This makes RLC one of the leading lessors in the Philippines.

Having offices within Robinsons Malls not only provides tenants shopping and dining convenience - it also boasts proper accreditation from the Philippine Economic Zone Authority or PEZA, armed with 24/7 support facilities and 100 percent power backup.

Industry reports state that there is a rising demand for BPO office space, and vacancy rates in Metro Manila stay low even though rents are increasing.

Source:
http://www.mb.com.ph/articles/

BPO to Play a Huge Role in PH Growth Plan

Mon, 21 Nov 2011 00:00:00 -0800

President Benigno Aquino III's Philippine Development Plan strategy (PDP 2011-2016) highlights the business process outsourcing (BPO) sector as a huge factor in the country's economic growth. Cayetano Paderanga, Director-General Secretary of the National Economic Development Authority (NEDA), said that some industries were overlooked in previous economic growth reports.

President Aquino's strategy for the country includes �Social Contract with the Filipino People�, focusing on �Good Governance and Anti-Corruption� to �Achieve Inclusive Growth, Create Employment Opportunities, and Reduce Poverty.�

Paderanga said during the PDP's visit in Davao City, the BPO industry can help the country achieve the growth goal. In an industry that is rapidly growing, it is no longer right to say that BPO is only about call center work. He added that the sector has actually diversified when it comes to service offerings such as backroom operations and graphics.

Also, BPO hubs have emerged in other locations aside from Metro Manila. These include cities like Cebu, Davao, Cagayan de Oro, and even Pangasinan. Panderanga also said that provided that a location has good educational institutions, BPOs will definitely develop in the area.

Source:
http://www.pia.gov.ph/

Everest: China's Services Exports Revenue to Reach US$9.5-10bn by 2015

Fri, 18 Nov 2011 00:00:00 -0800

Advisory and global services research firm Everest Group predicts that by 2015, China's global services exports may reach a compound annual growth rate (CAGR) of 20-25 percent, valued at US$9.5 billion, from US$3.5 billion in 2010.

A study done by the Everest Group entitled �Global Locations Compass: China� showed that the country's global services exports grew from US$1.2 billion in 2007 to US$3.5 billion in 2010. The report also indicated that more than half (65 percent) of the country's total export revenues were from IT outsourcing services while 35 percent came from business process outsourcing (BPO).

China's market growth in 2010 had positioned itself as a leading outsourcing destination after India and the Philippines. Vice-president - Global Sourcing Amneet Singh said China may not have an advantage in terms of cost and English communication skills compared to India and the Philippines, but the country can still be seen by the US and European markets as an alternative to reduce risks.

The report also showed that additional delivery centers were developed under the Tier-1 and Tier-2 cities in a span of 12 months. The government's promotion initiatives and incentives also contributed to the growth of the market.

Source:
http://www.marketwatch.com/

Expert Shares Key Factors for IT Outsourcing

Thu, 17 Nov 2011 00:00:00 -0800

A lot of companies nowadays are looking to outsource IT operations by means of the cloud platform. However, the main concerns of the business companies that are adopting the new technology are still to reduce costs and gain access to more flexible contracts. IT groups, on the other hand, are having issues with the security and service levels.

For businesses that are planning to avail of cloud services, IT expert Michael Robert from BusinessComputingWorld.co.uk shared five important factors to take into consideration:

Business owners should look into the requirements of their IT infrastructure and operation. They should also check if their processes are compatible with the cloud. Since businesses have sensitive information and are ruled by strict regulations, it may be best to keep the processes in-house.

Robert said businesses should look into additional costs for future development and unpredictable scenarios. Also, businesses need to consider the different benefits of the process and not to focus only on cost reduction because IT outsourcing serves other purposes like support for the current IT structure.

His fourth rule focused on the preparedness of the current/in-house networks and bandwidth capacity. He said these things should be well thought of to avoid problems. Lastly, Robert said that businesses should research about the service provider and know the vital areas where they excel or fail.

Source:
http://www.ihotdesk.com/

MicroSourcing Opens New Office in Cebu City

Wed, 16 Nov 2011 00:00:00 -0800

Outsourcing and offshoring solutions provider MicroSourcing had set another milestone as it officially opened a new office in Cebu City yesterday. This is the company's first delivery center outside the Metro Manila area.

MicroSourcing's new office has a capacity of 210 seats and is located at 12th Floor TGU Tower, Asiatown IT Park, Lahug, Cebu City.

Asiatown IT Park covers 24 hectares of industrial land at the northern district of Cebu City. It has an underground telecommunications setup with high-speed Asynchronous Transfer Mode (ATM) backbone, 23 kv underground power supply, two back-up water deep wells aside from the local water supply, and centralized sewage treatment. Moreover, the IT park offers not only business space but also areas for recreation and entertainment.

The IT park is a Special Economic Zone which offers government incentives for developers, IT park facilities/utilities providers, and IT enterprises registered under the Philippine Economic Zone Authority (PEZA).

Weeks prior to the official opening, the Manpower Acquisition Department launched a Recruitment Caravan in select establishments throughout the city to find suitable candidates for various positions, primarily Computer-Aided Drawing Technicians who are needed by one of MicroSourcing's largest clients. The company is also looking for individuals who can fill positions in the fields of IT, Human Resources, and Finance.

NASSCOM Predicts Significant Growth for India's IT-BPO Industry

Wed, 16 Nov 2011 00:00:00 -0800

Premier trade body for India's IT-BPO industry National Association of Software and Services Companies (NASSCOM) says the country's IT-BPO industry is likely to surpass growth projections for the incoming year. Moreover, NASSCOM President Som Mittal said the software industry is doing well and can possibly reach current growth targets.

Meanwhile, a 16-18 percent growth rate valued at $68-70 billion is expected for the software and services export sector in the conclusion of the current fiscal year. The domestic market is currently valued at 15-17 percent, reaching Rs 90,000-92,000 crore.

During the FICCI conference about cyber security, Mittal said it is very likely that the IT-BPO industry will post double digit growth in 2012-2013. While it may be too early to say the exact figures, he is confident that it would be a significant increase. He also said that the cloud is gaining popularity for transformational IT projects. Customers tap developing markets to be competitive. Because of this, there is a need to provide new products and have new service offerings.

Source:
http://www.thehindubusinessline.com/

BPAP, CHEd Form Partnership to Improve Talent Supply

Tue, 15 Nov 2011 00:00:00 -0800

The Business Processing Association of the Philippines (BPAP) and Commission on Higher Education (CHEd) recently sealed a five-year partnership by signing a Memorandum of Cooperation at Eastwood City Cyberpark, Quezon City. Both groups pitched their proposal that could help future graduates land a job in the IT and business process outsourcing (IT-BPO) industry. The proposal aims to revise college curricula, develop a training program for teachers, and provide a tool to evaluate the skills of graduates.

Due to the issues in the quality of the country's talent pool, it is stressed that improvement in human resource processes will definitely help achieve IT-BPO's medium-term goals. The 2016 Road Map aims to create 4.5 million jobs and generate $25 billion in revenue. BPAP Chairman Alfredo I. Ayala is confident that working with CHEd will greatly help BPAP efforts in addressing talent issues of the BPO industry.

Meanwhile, CHEd Chairperson Patricia B. Licuanan pledged full support to the industry, saying that it will help create jobs and eventually alleviate poverty. She added that this partnership can provide more opportunities for graduates so they will no longer have to leave the country to get better jobs abroad.

According to BPAP External Affairs Executive Director Martin Antonio S. Crisostomo, the proposal also states that students, whatever course they are taking, can include �BPO 101� in their core curriculum. They are likewise allowed to take service management as their minor course and can be trained for the BPO culture, finding solutions, and other analytical skills.

Source:
http://www.bworldonline.com/

India Losing Traction in IT-enabled Services

Mon, 14 Nov 2011 00:00:00 -0800

According to Ramesh Bhandari, MD of Pegasys Information Technologies Pvt. Ltd, India is believed to be losing traction on IT-enabled Services (ITeS) due to expensive rates. Tight competitors such as Brazil, the Philippines, and Sri Lanka are gaining from India's loss and are offering more affordable services.

In the Business Orientation Program of IMT Hyderabad where a group of 120 students and faculty members participated, Bhandari discussed ITeS & Cloud Computing, stating that India's IT outsourcing industry posted a 6.1% growth during 2010 and is predicted to grow by 19% in 2011. In India, ITeS contributes to the country's economic growth and is responsible for nearly 5.66% of the country's GDP and provides jobs to 2.3 million people. Bhandari also noted that cloud computing has drastically changed the industry by making way for new opportunities for businesses involved with IT/ITeS and traditional services.

Cloud computing basically means delivering hosted services over the internet without making use of additional hardware and software. It is also affordable and can be easily set up.

Services exports such as ITeS-BPO account for 85% of the country's revenues. In fact, during 2009-2010, the total ITeS revenue amounted to $14.7 billion, a huge increase from 2004's $2 billion.

Source:
http://indiaeducationdiary.in/

Report: India to Keep Top Spot in the KPO Market

Fri, 11 Nov 2011 00:00:00 -0800

A report from technology analyst firm Ovum states that India will remain as the leader of the knowledge process outsourcing (KPO) industry and is likely to stay as an influential force in the sector.

The report also states that new KPO sourcing locations are developing in the Asia-Pacific region. These countries are China, the Philippines, and Sri Lanka. Although there are new opportunities for vendors, these countries do not come close to India's performance in the KPO market.

According to Ed Thomas, Ovum analyst and author of the report, having different service delivery centers enables clients to reduce risks, compared to situations when business operations are done in a single location. It also allows clients to gain access to a new pool of talent.

During the early stages of KPO, providers only offered research and analytics services. Now, the sector continues to evolve, expanding service offerings that include legal process outsourcing, clinical trial management, etc.

The Philippines is also making its mark in the KPO market, positioning itself in healthcare outsourcing by offering services catering to the requirements of companies and professionals in the field of healthcare.

On the other hand, Sri Lanka is working on improving their talent pool's KPO skills to meet the demand in accounting and other knowledge-intensive processes.

Source:
http://articles.timesofindia.indiatimes.com/

PH Dubbed as Top Outsourcing Destination in Asia

Thu, 10 Nov 2011 00:00:00 -0800

According to a report done by real estate advisory firm CB Richard Ellis (CBRE), the Philippines is Asia's most cost-effective location for outsourcing.

In terms of location with the lowest lease rates, Jakarta ranked first with $16.3, followed by the Philippines with $19.1 per square foot/annum. As for office rental yields in Asia for Q3 2011, India got 11 percent, followed by the Philippines at 10 percent.

CBRE chairman and CEO Rick Santos said the country has the most cost-effective real estate market in the region. For instance, compared to the Philippines, it is 12 times more expensive to get office space in Hong Kong and Singapore. Also, the continuous growth of the BPO industry contributes to the increase in demand for office space and services.

The country's business process outsourcing (BPO) sector is expected to benefit from the global financial crisis that prompted US and Europe to increase offshore outsourcing activity.

The Philippines' BPO office occupancy ranges from 250,000 to 350,000 square meters in the last five years and continues to expand because of the BPO sector's demand for office space in Metro Manila.

Makati still offers the largest leasable BPO space with almost a million square meters, followed by Quezon City with 784,308 square meters. Majority of BPO office space in Quezon City are from Eastwood City, UP-Techno Hub, and Cubao.

Source:
http://www.abs-cbnnews.com/

PH IT-BPO Sector Remains Strong

Wed, 9 Nov 2011 00:00:00 -0800

The study and 2011-2016 IT-BPO Road Map commissioned by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) state that the Philippines' IT-BPO sector is on the right track and can be maximized to its full potential with an estimated 20% or higher annual growth rate.

Over 179 shared services executives in over 20 IT-BPO and shared services sectors participated in the study and stated that extra efforts should be given in promoting or marketing the services of the IT-BPO industry to probable candidates and investors. They also believe that the local government plays an important role in achieving the industry's goals.

Also, there are signs of a drastic shift from low-value, voice-based process services to high-value, knowledge-based services. However, respondents say that there's still an issue in the manpower-supply-side due to poor internal visibility of the sector to potential employees and their influencers. This is believed to cause setbacks in attracting clients and investors, specifically in non-traditional outsourcing services.

Respondents also believed that comprehensive marketing communications initiatives should be instigated by the IT-BPO sector to make it more attractive to potential candidates and investors. The sector should be able to showcase clearly the kinds of jobs it offers, and the career opportunities available to students by means of working with the academe.

The survey results and the plans indicated in the IT-BPO Road Map are congruent with the survey results, stating that IT-BPO should be branded more effectively to increase awareness for local potential candidates and their influencers. This group includes students, parents, teachers, and other professionals in other industries.

Also, the sector should be able to create a positive image and promote the Philippines as a dynamic BPO provider that excels not only in voice-based work but also in complex, knowledge-intensive services. This, however, should be prioritized as India is vigorously working on besting in non-voice services, and recognizes the Philippines as a tough competition when it comes to providing voice-based services.

Source:
http://www.mb.com.ph/

Everest: Number of Outsourcing Contracts Decreases in Q3 2011

Tue, 8 Nov 2011 00:00:00 -0800

The outsourcing market appears to be weakening as the number of signed contracts during this year's July-September period dwindled to 472, compared to 503 deals posted by last year's Q3 and 516 contracts of 2011's Q2, according to advisory and research firm Everest.

Amneet Singh, Vice President (Global Sourcing) at Everest, said the decline in global transaction volumes indicates a slowdown in outsourcing activity. However, even if there were fewer contracts this year, the global transaction volumes amounted to USD 2.7 billion in annual contract value (ACV) for this year's third quarter mainly because of large contracts.

Meanwhile, the number of valid transactions in IT outsourcing and BPO markets decreased by seven percent and 12 percent, accordingly. Nevertheless, IT outsourcing's ACV was up 14 percent during Q3 2011, whereas BPO decreased by 50 percent.

Everest stated in its Market Vista report that some of the sectors which contributed significantly are the Banking Financial Services and Insurance (BFSI) sector and manufacturing, distribution, and retail (MDR) segment. Contracts from the public sector decreased by 31 percent in volume and 48 percent in ACV.

On the other hand, the number of captives increased in Q3 with 20 new centers, compared to only four captive centers and nine expansions during the same period of last year.

Source:
http://zeenews.india.com/

Bill for the Creation of ICT Dept. Approved by Congress

Fri, 4 Nov 2011 00:00:00 -0800

In an effort to develop the ICT sector as the business process outsourcing (BPO) industry posts continuous growth, the House of Representatives has approved the bill that deals with the creation of the Department of Information and Communications Technology or DICT.

The new department will assume the telecommunication responsibilities of the Department of Transportation and Communications (DoTC) under House Bill (HB) 4667. It will be mainly responsible for promoting and developing the ICT sector of the country. The House Bill also indicates that the DICT will be the one to undertake the functions of the Commission on Information and Communications Technology under the Office of the President.

Eastern Samar Rep. Ben P. Evardone, Vice-chairman of the ICT committee and author of one of the DICT bills, said the DICT will help the country to be more competitive in the ICT industry and on a global scale, ensuring that government regulations will be in accordance to the trends in the industry.

The Business Processing Association of the Philippines (BPAP) and the Joint Foreign Chambers have been campaigning for the creation of the department that will focus on the ICT sector and promote the IT and BPO capabilities of the country.

Source:
http://www.bworldonline.com/

MicroSourcing Kicks Off Journey towards ISO Certification

Thu, 3 Nov 2011 00:00:00 -0800

A total of 35 employees of MicroSourcing, consisting of representatives of the management team and the departments, started the journey towards ISO 9001 and 27001 Certification in a whole day event at Eastwood Richmonde Hotel last October 26.

Led by Sophie Woo, Head of Operational Excellence, and advised by Peter Duran and Richard Regalado, both experienced Quality and Information Security Management consultants, the certification has been identified as one of the company's main objectives for the first half of next year. After CEO Philip Kooijman explained the importance and benefits of establishing and maintaining a good quality and information security management system (QISMS) for MicroSourcing being a fast-growing global outsourcing solutions provider that sees significant growth each year, the kick-off was followed by training and interactive workshops.

Two teams were created for this initiative: the ISO Task Force and the ISO Project Team. The former is composed of senior management who will determine the ISO Project direction, approve ISO deliverables, and assign resources to the Project. On the other hand, the ISO Project Team is composed of representatives of the company's departments who will be responsible for documenting and auditing the company's processes and procedures in compliance with the ISO standards. They will likewise undergo a series of training courses to have a deeper understanding of both the ISO 9001 (Quality) and ISO 27001 (Information Security) management system standards.

With full support and cooperation from the management team and employees involved in this initiative, the company aims to be ISO certified by February 2012.

MicroSourcing Holds Halloween "Spooktacular" Treat or Treat Event

Wed, 2 Nov 2011 00:00:00 -0800

Last October 28, MicroSourcing held the �Halloween Spooktacular Treat or Treat: No Tricks, Just Treats� event at its headquarters in Eastwood City as well as at the Picadilly office in Taguig.

Employees invited their relatives (seven years and below) who all donned brightly colored and sometimes scary costumes. As part of the Halloween tradition, kids roamed around the entire office for the trick and treat in different departments. After filling the bags and buckets with candies and chocolates, everyone proceeded to MS Caf� for the awarding ceremony which was facilitated by the Human Capital Strategy and Delivery Group.

Eyob Kooijman (son of VP for Operational Excellence Sophie Kooijman) and Yumi Sison (daughter of Business Development Associate Reggie Sison) got the awards for best child �spooktacular� costume.

Meanwhile, members of the Manpower Acquisition Department got the best themed team/department �spooktacular� costume award as they dressed up and performed as the cast of popular TV series Glee.

Other employees also joined the event wearing costumes of famous movie characters such as Harry Potter, Death Eaters, Edward from Twilight, and Sailor Moon. Of course, the event would not be complete without employees who wore masks and dressed up as witches and vampires.

MicroSourcing to Hold a Recruitment Caravan in Cebu

Fri, 28 Oct 2011 00:00:00 -0800

As MicroSourcing gears up for the opening of its new office in Cebu City, the Manpower Acquisition Department is set to launch a Recruitment Caravan from November 2 - 9 in select establishments throughout the city.

Take note of the following dates and venues of the Recruitment Caravan:

Nov. 2: Jollibee - 12 point IT Park, AsiaTown IT Park, Lahug
Nov. 3: Jollibee - Gorordo Ave. cor. Maxilon Ave.
Nov. 3: Chowking - M.Velez cor. Rama Ave., Guadalupe
Nov. 4: Chowking - Fortune Square Bldg. Mandaue
Nov. 4: McDonald's - EMSU Bldg. Cebu City
Nov. 7: McDonald's - North Reclamation
Nov. 8: McDonald's - Retail Strip Asiatown IT Park, Lahug
Nov. 8: Jollibee - MJ Cuenco Ave.
Nov. 9: Shakey's - The Walk Asiatown IT Park, Lahug
Nov. 9: Chowking - Gaisano Mall, Banilad

MicroSourcing is looking for talented individuals who will work as Computer-Aided Drawing Technicians in our office in Cebu. If you have the following requirements, then join the caravan and get hired immediately:

Proficiency with Game Controllers is a big plus
At least a graduate of any vocational or degree course
Must have good Spatial / 3D Visualization skills
Average English communication skills (you will be directly coordinating with our engineers in the US)
Basic computer skills (Windows XP, Office applications)
Must be keen and attentive to detail
Fresh graduates/Entry level applicants are encouraged to apply
Willingness to work night shifts / in a shifting schedule is a must

There are also great job opportunities in the fields of IT, Human Resources, and Finance. Just bring your comprehensive resum� and the Manpower Acquisition Department will process your application. Apply now!

MicroSourcing's Cebu office is located at 12th Floor TGU Tower, Asiatown IT Park, Lahug, Cebu City.

PH Software Dev't Industry Posts Growth in Revenues, Employment

Thu, 27 Oct 2011 00:00:00 -0800

The Philippines' software development industry had seen an increase in export revenues and employment last year, based on a report by Tholons, a services and investment advisory firm.

In 2010, the industry posted $725 million in export revenues. More than half (57 percent) were from the US market, while one-fourth of this figure came from the United Kingdom. Other markets that contributed to this growth include Canada, Japan, Europe, Australia, Middle East, and countries in the Asia-Pacific.

When it comes to job opportunities, a total of 44,962 were employed in the industry in 2010, up by 27.60 percent compared to 2008 and 2009 with only 35,300 full-time workers. Top services for foreign clients were application maintenance, software testing, and custom application development. In the local scene, sources of revenue were product engineering and system infrastructure support service.

This Tholons study was done to assess the current situation of the local software industry. It was commissioned by the Philippine Software Industry Association (PSIA), with funding from the Commission on Information and Communications Technology (CICT). According to PSIA President Nora Terrado, despite the financial crisis, the software development industry remains committed to reaching the goal of the Philippines to become the outsourcing location of choice.

Source:

http://www.philstar.com

S&P: Top Indian IT Firms Strong Enough to Face Uncertain Demand

Tue, 25 Oct 2011 00:00:00 -0800

At this time of economic instability, India-based Tata Consultancy Services (TCS), Infosys, and Wipro will be able to keep their credit ratings even if there is uncertainty in the demand. This is according to credit rating agency Standard and Poor's (S&P).

S&P's Credit Analyst Abhishek Dangra said these top Indian Information Technology (IT) firms have cost advantage and effective service delivery models. These will help them in times of demand uncertainty.

Based on the S&P report, these IT companies will post faster growth rates than the industry as a whole in the next few years. Next year, it is expected that these firms will post double-digit growth and stay in the lead when it comes to EBITDA margins.

Both TCS and Infosys have BBB+ and Stable credit rating, while Wipro has a BBB and positive rating.

These IT firms rely on the US and European markets. As their economies slow down, companies may lower their IT outsourcing budgets. However, S&P said cancellation of contracts will not have much impact compared to what happened in 2008-2009. The challenge, though, would come in as foreign service providers in India expand their operations in the country. This would lessen the cost advantages of Infosys, Wipro, and TCS.

Source:

http://economictimes.indiatimes.com

ADB to PH: Do not Rely on BPO to Alleviate Poverty

Mon, 24 Oct 2011 00:00:00 -0800

The business process outsourcing (BPO) industry has become one of the key revenue and employment generators for the Philippine economy. However, a recent study from the Asia Development Bank Institute (ADB) states that the government should not rely on the industry in dealing with the poverty situation in the country.

In a study by F. Tech Tschang, Associate Professor of Strategic Management at the Singapore Management University, he looked at the information technology (IT)-enabled services industries in China, India, and the Philippines. He said IT-BPO cannot be considered as a solution to lessen poverty since it does not help those who are poor and less educated. He added that while the impact of the BPO industry to the economy is significant, it is much less on a �per-person basis�.

In the State of the Nation Address of President Benigno Aquino III, it was reported that the BPO industry generated more than 30,000 jobs early this year, and more job opportunities are expected for the rest of 2011. However, Mr. Tschang said this does not help a large part of the population. Only those with better education benefit from the industry. This increases the difference between people who have better education and those who don't.

Meanwhile, Socioeconomic Planning Chief Cayetano Paderanga said the BPO industry does not directly reduce poverty, but since it generates jobs, it still has a huge effect on the situation. He added that the government has direct programs to ensure that �nobody will be left behind�.

Source:

http://www.bworldonline.com

Study Shows Sectors Spending More on IT Outsourcing

Sat, 22 Oct 2011 00:00:00 -0800

According to a study by sourcing advisory firm TPI, international sectors like retail, manufacturing, telecoms and media in Europe, the Middle East, and Africa (Emea) increased spending on IT outsourcing on the three quarters of this year compared to the whole period of 2010.

For this year's third quarter, the manufacturing industry posted �1.5bn in IT outsourcing spending, compared to only �1.4bn in the same period last year. Consequently, for the first three quarters of 2011, the sector spent �5.8bn compared to �5.6bn in all of 2010.

As for the retail sector, it had already invested �1.4bn. This was higher than the figures posted last year.

On the other hand, the financial services industry, the sector that posted minimal spending in 2010, has reduced expenditures on IT outsourcing services, spending only 48% of last year's total. According to TPI, during the third quarter of 2011, Emea financial services sector invested �1.6bn in IT outsourcing, a far cry from the �2.7bn of 2010. Reduced IT spending was also seen in energy, healthcare, and pharmaceutical sectors.

According to Martyn Hart, Chairman at the National Outsourcing Association, IT outsourcing has become a way for sectors like retail to maximize efficiency and entice consumers. A significant increase in outsourcing activity was seen in the retail sector as companies aim to be more competitive through advanced IT solutions and upgraded infrastructure that outsourcing can provide at low risk.

Source:
http://www.computerweekly.com/

TESDA to Provide Training for 65,000 IT-BPO Candidates

Fri, 21 Oct 2011 00:00:00 -0800

More opportunities await 65,000 Filipino job seekers who wish to enter the Information Technology-Business Process Outsourcing (IT-BPO) workforce, thanks to the P500-million budget approved by President Benigno Aquino III.

The funding will be used by the Technical Education and Skills Development Authority (TESDA) and the Business Processing Association of the Philippines (BPAP) for a training program that will enhance the workers' skills needed in the industry.

BPAP Chairman Alfredo Ayala said Filipinos are already known as world-class workers and the country is considered as the top call center destination. The goal is to be number one in IT-BPO services. The training program will help the industry in getting talent with the right skill set.

Non-voice BPO such as legal, health care information management, publishing, animation, game development, and software development will be highlighted in the training program.

Other organizations such as the Animation Council of the Philippines, Call Center Association of the Philippines, Game Development Association of the Philippines, Healthcare Information Management Association of the Philippines, National ICT Confederation of the Philippines, and the Philippine Software Industry Association are selected to collaborate with TESDA and BPAP.

The government sees the training program as a significant factor to realize the IT-BPO industry's Roadmap for 2016, which is to generate 4.5 million jobs and post $25 billion in export revenues.

Source:
http://www.abs-cbnnews.com/

BPAP: 2012 PH BPO Revenue may Reach $14B

Tue, 18 Oct 2011 00:00:00 -0800

By 2012, business process outsourcing (BPO) firms in the country can post revenues reaching US$14 billion.

Fred Ayala, Chairman of industry body Business Processing Association of the Philippines (BPAP), said non-traditional outsourcing services such as engineering, sales and advertising, game development, and other knowledge-process outsourcing services are making the mark in the local outsourcing scene. He added that this year, they are expecting the industry to post about $11 billion in revenues, with a 20-percent growth next year as BPO firms expand service offerings that include new knowledge-intensive processes.

Meanwhile, BPAP Senior Executive Director Gillian Joyce Virata said the country's BPO industry may post P2- P3 billion more if they continue to offer non-voice outsourcing services.

Voice-based outsourcing gets the lion's share of the entire Philippine BPO industry. In fact, the country is now considered the top call center destination. Virata said that while voice-based work will still grow or even double in the next few years, its portion in the industry will decrease since non-voice services are growing faster.

Finding the right talent remains a challenge, which is why BPAP continues to ramp up its initiatives to further improve the skills of available workers in the country.

Source:
http://www.manilastandardtoday.com/

BPO Leaders, Execs Gather at International Outsourcing Summit 2011

Fri, 14 Oct 2011 00:00:00 -0800

The International Outsourcing Summit 2011 was held last October 11-12 at Sofitel Philippine Plaza in Manila. In this event, leaders, executives, and players of the business process outsourcing (BPO) industry convened to tackle global issues, challenges, and opportunities about and related to IT-BPO.

With the theme �Global Market Leaders Addressing Global Market Issues�, sessions covered topics including the state of the Philippine BPO industry and the need to offer more non-voice and complex services while staying competitive when it comes to providing call center work.

The IT-BPO Roadmap 2011-2016 was also presented in the event by the Business Processing Association of the Philippines (BPAP). It was discussed that the country should be the top IT-BPO location of choice, which can be achieved by having a large number of workers who have better education. Government support is likewise necessary, particularly in implementing laws related to data security and welfare of workers. BPAP said they are confident that the industry will meet its accelerated goal of US$25 billion in export revenues by 2016 through a strong partnership between the private sector and the government.

President Benigno Aquino III expressed his gratitude to the summit participants. He had approved the funds for training programs that will help address the challenge of finding the right talent for the BPO industry.

Source:

http://www.sunstar.com.ph

Global BPO Industry Predicted to Reach $280.7B by 2017

Thu, 13 Oct 2011 00:00:00 -0800

In a report by Global Business Analysts Inc. (GIA), it is predicted that the global business process outsourcing (BPO) industry will reach US$280.7 billion by 2017.

Business owners opted to outsource non-core functions to deal with the impact of the global financial crisis. This resulted to high outsourcing activity in destinations such as India and China.

Outsourcing has become a solution for companies, especially those in the US and UK, to resolve problems like lack of talent and the increasing operational expenses. Aside from cost reduction, outsourcing to service providers enables business owners to adapt to constant changes in the economy, make use of new technologies, and benefit from the emergence of newer media.

The market research entitled "Business Process Outsourcing (BPO): A Global Strategic Business Report" also states that finance and accounting outsourcing will likely post the fastest growth rate, to be driven by companies that need to keep costs aligned and stay competitive. Organizations in the fields of financial services, manufacturing, travel, as well as logistics are expected to avail of finance and accounting outsourcing services.

GIA is a leading market research publisher, covering market and technology trends worldwide.

Source:

http://www.sfgate.com

PH BPO Optimistic in Reaching $25B Revenue Goal by 2016

Wed, 12 Oct 2011 00:00:00 -0800

The business process outsourcing (BPO) industry of the Philippines remains confident that it will meet its accelerated revenue goal of $25 billion by 2016.

In the International Outsourcing Summit being held at Sofitel Philippine Plaza, Business Processing Association of the Philippines (BPAP) Chairman Alfredo Ayala said this 25-percent growth rate can be reached through a strong partnership between the government and the private sector.

Based on the BPAP 2016 master plan, the accelerated case scenario for the country's BPO industry is $25 billion. In the best case scenario, the target is $20 billion which translates to a growth rate of only 15 percent.

Ayala said BPAP had met its 2011 goal when it comes to demand generation. The challenge is still meeting that demand by finding enough talent with the right skill set.

Department of Trade and Industry Secretary Gregory Domingo said the industry has been dealing with the talent issue since 2003. With the current situation, meeting the target of 80,000 to 100,000 new employees for the industry may be difficult.

To resolve the problem, the government is working with the academe and related organizations. Aside from the initiatives in the education system, the Congress is also helping the industry through the passage of the Data Protection and Privacy Law, as well as the Republic Act that focuses on the welfare of BPO workers especially those who work at night.

Source:

http://www.mb.com.ph

Forrester: Global IT Spending to Slow Down in 2012

Tue, 11 Oct 2011 00:00:00 -0800

From 11.5 percent in 2011, the growth rate of global IT spending will weaken at 5.5 percent next year. This is due to the current economic downturn in the US and Europe, based on the recent Forrester Research report �Global Tech Market Outlook for 2011 & 2012�.

Slower growth rates are predicted in the US and European countries in 2012. For instance, the US will likely post 6.4 percent, while a 12-percent growth rate is expected in the markets of Eastern Europe, Middle East, Africa, as well as Latin America. Andrew Bartels, Vice President and Principal Analyst of the global IT market research firm, said the global IT market will grow, though at a moderate pace as the financial crisis becomes a cause of worry.

Despite this forecast, India's industry body Nasscom President Som Mittal said there are still no signals of reduced IT budgets from companies. Software exports to the US and Europe account for almost 90 percent of the IT industry's $70 billion revenue.

2011 would post better IT market growth than 2012, thanks to the strong IT demand in the first two quarters of the year before the financial crisis kicked off in the middle of 2011. That resulted in slower growth in the last quarter.

Source:

http://www.deccanherald.com

DOLE, BPO, ICT Form Code of Good Practices

Mon, 10 Oct 2011 00:00:00 -0800

Together with the Department of Labor and Employment Region 3 (DOLE3), the business process outsourcing (BPO) sector and Information Communication Technology (ICT) groups formed an agreement called Voluntary Code of Good Practices. This symbolizes DOLE's effort in preserving camaraderie among firms in Central Luzon. The code involves the TC-BPO/ICT or the Tripartite Council in BPO and ICT and includes voluntary compliance to labor standards and occupational safety and health standards.

Geraldine Panlilio, Assistant Regional Director of DOLE3, said the Voluntary Code of Good Practices covers benchmarking, policy consultations, training programs, and social dialogues to encourage cooperative growth among BPOs and ICTs.

Other objectives of the code are related to health, safety, security, and the environment. It also covers factors such as strengthening DOLE's collaboration and partnership with different government agencies for unified strategies, approaches, and programs in the advancement of BPO-ICTs, among others.

Those who support the code are expected to follow proper monitoring mechanisms through self-regulation, best practice/s recognition, and benchmarking.

Leopoldo De Jesus, DOLE's Regional Director, said this is an initiative that aims to establish and maintain good relationships between labor and management in businesses in the area.

Source:
http://www.pia.gov.ph/

Asia-Pacific Region Expected to Turn into Biggest MES Market

Fri, 7 Oct 2011 00:00:00 -0800

The market-expansion services (MES) sector of the Asia-Pacific region can surpass Europe's and be the largest in the world by 2015. This is based on a report from DKSH and Roland Berger Strategy Consultants. From 2010 to 2015, the MES market in the Asia-Pacific region is predicted to grow 11.3 percent annually and will be valued at around US$853 billion. On the other hand, Europe's total MES market is expected to grow 4.3 percent annually, valued at US$759 billion by 2015.

As renowned companies focus more on core competency, productivity, and building their global brand image, and recession is still taking its toll in Europe and the United States, doors have opened for Asia to become a market-expansion services (MES) location. In fact, small and medium-sized firms are looking for partners that can provide leads and access to the global market.

Over 100 executives in Asia, the US, and Europe participated in DKSH and Roland Berger's study, where the rapid emergence of the middle classes was identified as the key driver of Asia-Pacific MES growth. The middle class is comprised of families who are able to make ends meet and earn between US$10 and US$100 per person, daily. Charles Toomey, executive vice president and global business unit head for healthcare, DKSH Hong Kong said, the increasing number of middle-class consumers and the inclination of business owners to outsource certain processes will drive the growth of Asia's market-expansion services sector.

Source:
http://www.chinapost.com.tw/

PH Allocates P500M for Training Program of BPO Workers

Thu, 6 Oct 2011 00:00:00 -0800

The Philippine government will provide P500 million to the Technical Education and Skills Development Authority (TESDA) to help fund a training program for students and teachers in state universities and colleges (SUCs) and meet the demand of the business process outsourcing (BPO) industry in terms of talent.

According to Budget Secretary Florencio B. Abad, the government is planning on tapping several industries for the training. With the P500 million budget, the program can train about 62,000 applicants who can be part of the BPO workforce. About 37,000 will definitely get jobs in the industry. A total of 150 teachers will also be hired to train the applicants. Abad said the training program is designed to better prepare the students at SUCs for the BPO demand.

Abad said they are also looking into providing training projects for other industries such as tourism, agriculture and fisheries, construction and infrastructure development, as well as semiconductors and electronics.

Source:
http://www.bworldonline.com/

PH BPO Industry Recognized at Unctad Event

Wed, 5 Oct 2011 00:00:00 -0800

The rapidly growing business process outsourcing industry (BPO) of the Philippines was recognized at the United Nations Conference on Trade and Development (Unctad) meet held in Geneva, Switzerland. The event covered the effects of non-equity modes of international production such as outsourcing.

Foreign investors look at the country's cost effectiveness, available workforce, strong public-private partnerships, and telecommunications setup , said Cristino Panlilio, Trade Undersecretary for Industry and Investments.

He also said the country's outsourcing industry contributes more than half (60%) of the total services exports. The BPO industry is composed primarily of call center functions, while non-voice services include finance, accounting, and transcription.

The Philippines, now just a spot behind India for BPO services, posted revenues worth $9 billion and employed 530,000 workers. Panlilio said that it is predicted to bring in $11 billion as services export revenues and employ 640,000 people. If issues are resolved, revenues can reach $25 billion and 1.3 million will be employed in the industry by year 2016.

Ambassador Evan P. Garcia, the Philippines' permanent representative to the UN and other International Organizations during the meet in Geneva, said the IT-BPO services from India, the Philippines, and China are responsible for 65% of the global export revenues in 2009.

Source:
http://www.abs-cbnnews.com/

IT-BPO still Main Revenue Generator for PH Services Sector

Mon, 3 Oct 2011 00:00:00 -0800

For the second quarter this year, the Philippines' Information Technology and business process outsourcing (IT-BPO) industry posted revenues reaching US$657 million. The Bangko Sentral ng Pilipinas (BSP) said this is more than 100 percent higher than gains posted in the same quarter last year, amounting to US$324 million.

It is likewise proof that the industry is still a main driver in the services sector of the country. According to Raymond Lacdao, Industry Affairs Executive Director of the Business Processing Association of the Philippines (BPAP), what the IT-BPO industry can bring to the country's services sector is a good indication that the former is taking the right path towards a stronger sector. With more gains posted in the second quarter, Lacdao said the industry will continue to help for economic growth. This means more business and job opportunities for the country.

The IT-BPO industry aims to reach US$25 billion in revenues by 2016. BPAP said it is crucial to have stronger ties between the government and the industry to meet this goal. The annual International Outsourcing Summit which will be held this month will be a venue for BPO leaders and players to talk about the future of the industry.

Source:

http://www.philstar.com

BPO Firm Pledges to Invest More in PH

Fri, 30 Sep 2011 00:00:00 -0800

Convergys Corp. President and CEO Jeffery Fox held a courtesy call for President Benigno Aquino III at the Guggenheim Room of the Omni Berkshires Hotel in New York, where he guaranteed the President his commitment to putting more investments and providing more jobs to the Philippines.

Fox said Convergys is aware of the opportunities investing in the Philippines has to offer and that he is definitely planning on reinforcing his current partnership with the country.

He was also happy to have been given the opportunity to talk and personally thank the President for the government support to the business process outsourcing (BPO) industry.

EXL Services' Executive Vice-president Bill Bloom also met with the President, saying that they chose the country as the location for their clients who have �higher end� requirements. These include processes that are usually provided to medical professionals, lawyers, and accountants.

Source:
http://www.manilatimes.net/

Gartner: Strategic Document Outsourcing in North America to Grow 2.8%

Thu, 29 Sep 2011 00:00:00 -0800

A 2.8 percent growth, from $17.2B (2010) to $17.6B (2011), is expected for North America's strategic document outsourcing (SDO) market, according to global IT research and advisory firm Gartner, Inc.

SDO is a subcategory of business process outsourcing (BPO) that involves publication of customer communications, as well as content creation, multimedia presentation, and incoming document processing. The documents can be produced as hard copies or digitally, or a combination of both.

Gartner's research director Pete Basiliere said the business climate of the rest of 2011 and next year will have an impact to the SDO market. If the financial crisis continues, companies may be forced to stop their in-house operations and decide to outsource, which equates to more revenues for service providers. The downside is companies may have concerns on transitioning. Closing an SDO deal at a time when they couldn't afford to face any problems in the current operations is something that can also have an effect on the SDO sector.

Due to the demand for automated workflows, reasonably-priced long-term SDO contacts, and providers' ability to supply inbound services revenue along other value-added SDO services, the inbound services segment anticipates resilient growth that started with a five-percent increase in 2010 to 2011, and an average of 6.5 percent revenue growth up to 2015.

Source:
http://www.4-traders.com/

Ovum Predicts Global BPO Revenue to Reach $93.4B in 2015

Tue, 27 Sep 2011 00:00:00 -0800

Ovum predicts a $93.4B revenue for the global business process outsourcing (BPO) market in 2015, based on a compound annual growth rate (CAGR) of 5.4 percent and the $71.92B it reached back in 2010.

One of the key factors for the strong developments in global BPO is the active participation of emerging economies such as India and China � countries that are showcasing the benefits of BPO. Ovum also stated that from the end of 2010 to the end of 2015, the BPO market of Greater China will grow at a CAGR of more than 16 percent, while India's market will post a 15.7 percent increase.

Ovum analyst Hansa Iyengar said outsourcing enables companies that try to reduce costs to invest in people who will manage non-core business functions. This process cuts costs and increases efficiency. They now have more time to work on their core processes. Enterprises also learned that aside from back office functions, they can also outsource human resources tasks, engineering, design, as well as research and development. Iyengar added that developed economies will be the ones that can take advantage of these new BPO sectors.

She also noted that vendors need to focus more on pricing contracts as these are important during negotiations. Businesses tend to spread out their investments, and small and medium-sized companies are now open to outsourcing. Service providers need a plan to meet the requirements of clients. There is a need to offer outsourcing solutions that can be customized and are low-cost and very scalable.

Source:
http://articles.timesofindia.indiatimes.com/

NASSCOM: Indian Cloud Computing Industry to Reach $16B by 2020

Mon, 26 Sep 2011 00:00:00 -0800

The cloud computing market of India could reach $16 billion by 2020. This is based on a study entitled �Deconstructing the �CLOUD� by software industry body NASSCOM, in association with Deloitte.

It is said that cloud computing technology will likely affect the services and business models of the IT-BPO industry. NASSCOM President Som Mittal said cloud computing could provide new service opportunities, introducing changes to the way IT services was normally offered and done.

As businesses become aware of what cloud computing can do and with an increasing number of people who intend to adopt the cloud, the Indian IT outsourcing industry needs to focus on competency building to benefit from the technology. It also presents opportunities to non-traditional IT companies.

The study also indicated that even if the current cloud service is making use of and is creating new spaces for IT-BPO companies, it also presents opportunities to be combined with the new cloud offerings. For instance, Software as a Service (SaaS), seen as the largest segment, will gain more providers offering solutions that are tailored to meet the needs per industry, geography, and/or business function. SaaS is expected to reach $244 billion by 2020, followed by IaaS which is predicted to post $143 billion for the same period.

Source:
http://www.itpro.in/

DOLE Resolves Job and Skills Mismatch in PH Industries

Fri, 23 Sep 2011 00:00:00 -0800

The Department of Labor and Employment (DOLE) recently released a study that shows incongruity in skills of job seekers and jobs needed in various industries. According to Usec. Danilo Cruz, this is actually a major issue that the government is looking to resolve.

During a discussion on Talking Points, a radio program aired over Radyo ng Bayan and PTV-4, Cruz stated that majority of applicants nowadays do not possess the knowledge, skills, and capabilities that certain industries need. Because of this mismatch, DOLE and the government are looking at ways to teach students when it comes to planning their careers as well as taking courses that meet the demands of industries.

According to an evaluation by DOLE, mining, business process outsourcing (BPO), and agriculture are the industries that offer a lot of job opportunities. To address the problem, DOLE launched �Project Jobs Fit,� back in October 2009 in hopes of figuring out which skills are needed by the industries. A career guide was developed together with the Department of Education. Also, 3rd year and 4th year high school students all over the country participated in career guidance counselling.

Moreover, career guide seminars are held before the school year ends, targeting senior students to educate them on which courses to take so they could get a job faster.

On the other hand, Cruz recommended that students who cannot afford to go to college can approach Technical Education and Skills Development Authority (TESDA) and inquire about their special programs that can prime them with industrial proficiencies which are recognized in some colleges.

Source:
http://www.pia.gov.ph/

Ovum: Asia-Pacific BPO Industry to Reach $17B by 2015

Thu, 22 Sep 2011 00:00:00 -0800

The business process outsourcing (BPO) market of the Asia-Pacific region can post revenues reaching $17.4 billion by 2015, with a growth rate of 9.3 percent from $11.1 billion posted last year. BPO industries in India, Greater China, and South Korea will all contribute to the growth of the region. Specifically, China's BPO market will grow by 16.1 percent, while India will post 15.7 percent growth. On the other hand, South Korea's market will grow by 14.6 percent.

Hansa Iyengar, an analyst from Ovum, said developed economies will take advantage of these new BPO areas. She added that the industry is tapping other processes including human resources as well as research and development.

Iyengar likewise said BPO vendors should pay more attention to contract pricing as this is one of the key concerns when closing a deal. �Enterprises are moving away from multi-billion dollar, single vendor deals, and spreading out their investments and risks. Vendors need to be prepared with a game plan to meet this segment's demand for low-priced, highly-flexible, and scalable solutions, which are accompanied by the option to customise offerings and personalised customer service.�

Source:
http://www.business-standard.com/

PH can be Outsourcing Hub for Mobile Apps

Wed, 21 Sep 2011 00:00:00 -0800

With the growing popularity of mobile communication devices worldwide, the Philippines can definitely cash in and become an outsourcing location for mobile applications development. There is a need, therefore, for local developers to focus on mobile applications.

According to Ramon Pastor of Numlock Solutions in a Power Mac Center mobile app development seminar, even if the country is far behind other mobile-app-developing hubs, local developers have what it takes to meet the demand for mobile apps both locally and in the global scene. He said local developers can take advantage of the demand for mobile applications, turning the Philippines into the location of choice for this service.

Pastor sees opportunities in mobile apps development, knowing that mobile devices are used not only for making calls, sending text messages and emails, etc. He believes that the demand will grow significantly in the next few years. He also said that many companies do not know that local developers can do mobile apps development projects. He's hoping that the country will soon be able to benefit from the growing demand.

Source:
http://www.mb.com.ph/

Bill for the Protection of BPO Workers Proposed

Tue, 20 Sep 2011 00:00:00 -0800

The House Bill 5218 that aims to protect the welfare of BPO employees was recently submitted by former President and current Pampanga 2nd District Congresswoman, Gloria Macapagal-Arroyo, and son, Camarines Sur Rep. Diosdado "Dato" Arroyo.

According to the bill or the proposed Magna Carta for Call Center Workers Act of 2011, since the State is associated to an International Labor Organization (ILO) convention concerning Freedom of Association and Protection of the Right to Organize, the parties involved should recognize �the right of workers, without distinction whatsoever, to establish and -- subject to the rules of the organization concerned,-- to join organizations of their own choosing without previous authorization.�

Also indicated in the bill are essential factors to call center employees' civil liberties such as the right to a safe and healthy working environment that is said to support physical and mental health towards responsibilities at work.

In addition to that, BPO employees should be permitted to take one-hour breaks for every eight working hours, right to rest in a comfortable area within the office premises until it is safe to go home, and the right to privacy. The proposed bill also seeks to address the issues regarding health dangers that come along with working in the BPO industry.

Source:
http://www.abs-cbnnews.com/

IT Revenue in India Grew 19 Percent in 2010-11

Fri, 16 Sep 2011 00:00:00 -0800

The flagship publication of CyberMedia, Dataquest, recently released a study about the state of the country's IT industry, stating that the 19 percent growth is higher than the rate posted in 2009-2010 as it felt the impact of the global economic downturn which made companies halt IT spending plans.

The report said that 66.4 percent of the market is made up of exports, while the outstanding 33.6 percent is composed of domestic entities.

In line with that, the domestic market's revenues increased by 23 percent (Rs.1, 47,152 crore) and the exports grew by 17 percent (Rs.2, 91,144 crore).

Other sectors in the country also developed. IT services exports grew at 21 percent, engineering services exports grew at 22 percent, and business process outsourcing (BPO) exports at seven percent. The total of India's revenues from the previous year is $64 billion, which included earnings from IT software/services and BPO.

The top three IT companies which posted the highest revenues were TCS (Rs.29,801 crore), Cognizant(Rs.25,477 crore) and Wipro (Rs.21,393 crore).

Source:
http://www.inewsone.com/

Global BPO Industry to Grow 6.4% in 2011

Tue, 13 Sep 2011 00:00:00 -0800

In recent times, almost all of the business sectors benefit from the BPO market. Even manufacturing industries worldwide depend on the ability of the services sector to satisfy and meet the demands of customers and organize them as leads by applying proper CRM strategies. This enabled the BPO industry to start a trend in establishing revenue-generating businesses by tapping into unchartered countries, both developed and developing ones.

One of the areas that successfully benefitted from BPO is the Asia-Pacific region. Proof of that is India, a country known in the outsourcing industry. It is still growing and has an expected revenue figure amounting to $110 billion for the period of 2010-11. Prominent market research firms estimate that the industry in the Asia-Pacific region will grow 17.9% while the global BPO market will grow 6.4% in 2011.

Also, the demand for customer support services from the US, UK, and other European countries is rapidly growing. This prompted BPO firms in the Asia-Pacific region (India/Philippines/China) to further improve their skills and bring in more business to their country.

Source:
http://your-story.org/

BPAP: Solid Government Support Needed to Reach US$25B

Mon, 12 Sep 2011 00:00:00 -0800

The Business Processing Association of the Philippines (BPAP) is currently working on reinforcing partnerships with the local government and the education sector for further developments in the IT-BPO industry and to properly allocate skills to job openings.

According to BPAP Industry Affairs Executive Director Raymond Lacdao, talent management, certification, and outreach initiatives are being prioritized in the IT-BPO sector. The US$25 billion revenue target will be a threefold increase over the course of five years.

�Support from the government is a big step towards meeting the industry's US$25-billion expansion by 2016. He also said that if the industry reaches that goal, about 1.3 million will be employed and its revenues will make up 12.5 percent of the gross domestic product.

The mismatch in the skills needed and available talent remains a challenge. Lacdao said there is a need for a robust pool of workers who have leadership skills, English proficiency, as well as skills in strategic thinking, comprehension, and teamwork.

He also pointed out that in the upcoming Third International Outsourcing Summit (IOS) at the Sofitel Philippine Plaza, Manila, talent will be one of the main topics that will be discussed among top level executives and industry experts.

Source:
http://www.philstar.com/

Forrester: 20% of UK & US Firms Say No to Outsourcing

Fri, 9 Sep 2011 00:00:00 -0800

Forrester Consulting said approximately 20 percent of Fortune 500 companies included in the survey are still not outsourcing business functions. As stated at Forrsights, these firms are missing out on the advantages of outsourcing such as having a testing centre of excellence, managed testing services or testing-as-a-service (Taas) if they do not see the basic things outsourcing can do for them in the first place.

A report commissioned by Forrester Consulting on behalf of testing major AppLabs stated that 93 percent of the survey participants are looking at Taas, which shows that they are willing to outsource through a service provider to accommodate their business processes.

The report also included that some issues that large firms look into include security breaches, increased regulatory requirements, and pressures to ensure business continuity. This is why they take testing commercially sensitive and business critical software, services, and applications seriously.

Source:
http://www.mydigitalfc.com/

Economic Concerns Likely to Affect Outsourcing Demand

Thu, 8 Sep 2011 00:00:00 -0800

While it is too early to say what the impact of the current economic situation will be, analysts believe market uncertainties may affect the demand for outsourcing.

Krishna Baidya, Industry Manager for Asia-Pacific ICT practice at business research and consulting firm Frost & Sullivan, said the global outsourcing market may not be that stable and businesses would reevaluate their outsourcing relationships, halt making decisions, and be watchful on the state of the economy.

When it comes to service providers, they will likely go for smaller and shorter outsourcing contracts and deal with inquiries from potential clients on how to get more at a lower price. Baidya also said getting more value will make businesses outsource work to service providers that can give them long-term business and financial benefits.

According to Baidya, innovation and consistency in service offerings are crucial to stay competitive at this time of economic uncertainty. Meanwhile, Principal Analyst Jens Butler of global analyst and consulting firm Ovum said service providers in Asia are becoming less reliant on the Western market and are now tapping markets closer to home. Liu Chu Tzer, Senior Vice President and Managing Director at HiSoft Singapore, said less dependence on the US and UK markets is crucial in establishing a more diversified company portfolio and keeping businesses insulated from the impact of an economic downturn.

Source:

http://www.zdnetasia.com

ITO Providers Aiming for Growth

Wed, 7 Sep 2011 00:00:00 -0800

According to a study done by IT consultancy firm Gartner Inc., growth is once again included in the IT outsourcing (ITO) providers' objectives.

Sixty-two percent said growth is their number one goal and they are planning to achieve that by making use of aggressive marketing plans and investments in cloud, utility, and 'as a service' offerings.

Vice-President and distinguished analyst at Gartner, Rolf Jester, said, "It is clear that providers are optimistic despite considerable uncertainty in the global economies. However, we predict the ITO services market will reach USD 313.2 billion in 2011, a growth of 6.9 percent from 2010, and will reach 4.6 percent compound annual growth rate through 2015."

Survey participants, consisting of 47 ITO providers or 62 percent of the total ITO segment, came from all major geographies and all types of ITO services which include infrastructure, cloud services, and applications.

Half of the outsourcing providers who participated said they would allot 2 to 5 percent of their 2011 earnings to marketing, a figure higher than the usual 1 to 3 percent for IT services providers.

Source:
http://economictimes.indiatimes.com/

PH BPO Urged to Go Beyond Voice Services

Tue, 6 Sep 2011 00:00:00 -0800

Senator Edgardo Angara urged stakeholders of the business process outsourcing (BPO) industry in the country to expand offerings and develop high-value services to stay competitive and protect the industry.

The chair of the Senate committee on Science and Technology said that for IT-BPO to remain a sunrise industry, there is a need to offer more than just voice-based processes. The pool of professionals must be skilled and knowledgeable in knowledge-intensive processes such as legal research, financial analytics, software development, creative content, and medical transcription.

The Philippines is now considered as the top call center destination, beating India in 2010. However, Angara said the aim now should be to be more than just a location of choice for voice-based work. He urged IT-BPO stakeholders to take part in the initiatives in terms of talent availability and development. One of these is the program of the Technical Education and Skills Development Authority (TESDA) and Business Processing Association of the Philippines (BPAP) designed to train more than 2000 scholars to improve their skills and meet the BPO demand.

Source:

http://newsbytes.ph

Survey Shows Mid-sized Firms Get More out of Outsourcing

Mon, 5 Sep 2011 00:00:00 -0800

Medium-sized companies enjoy more gains from IT outsourcing deals than large companies, according to a recent survey from outsourcing analyst firm HfS Research and the London School of Economics.

Out of 277 companies that outsource, more than half (63%) of mid-sized firms said outsourcing had been a successful initiative to cut costs. Compared to 30 percent of large firms, 42 percent of mid-sized companies said their outsourcing contracts were very effective in terms of meeting compliance and regulatory requirements.

Smaller companies get more out of IT outsourcing because they take the �big bang� approach. According to HfS Research founder Phil Fersht, they put several business functions together to make a large outsourcing deal, unlike larger firms that tend to outsource in a step-by-step process. Fersht added that these companies do not usually adopt the way mid-sized firms outsource since they are large enough to tell service providers how they would like transfer business processes.

While service providers tend to target large clients, Fersht said they also need to tap medium-sized businesses so they can establish a balanced client portfolio.

Source:

http://www.cio.com

Indian BPOs See PH as a Threat

Thu, 1 Sep 2011 00:00:00 -0800

Numerous BPO service providers worldwide have been striving hard to be the best in the industry. But India remains as one of the biggest and toughest contenders with an annual growth rate of 16-18 percent. Be that as it may, Indian BPOs still feel threatened by the Philippines when it comes to offshore outsourcing.

Genpact's Vice President Pramod Bhasin said in a statement, �I think it's a serious issue for India. It's about calibre and quality of people coming out of colleges. Earlier, Philippines was mainly into non-voice, but now it has expanded into finance and accounting. We have to review our education and skills training.� He added that BPO firms outside the Philippines welcome the competition.

Indian firms were warned by Spa�nco BPO and Hinduja Global Solutions about the Philippines as a competitor. Global CEO of Hinduja Global Solutions, Partha Desarkar, said the Philippines is seen as a big contender. This is the reason they have established operations in Manila.

Meanwhile, Nasscom President Som Mittal said it is about making the most out of the outsourcing opportunities, although India has a lot of issues such as maintaining safety and security and elaborate taxation policies.

Source:
http://www.mydigitalfc.com/

Excessive Holidays Affect PH BPO Industry

Wed, 31 Aug 2011 00:00:00 -0800

As the Philippines becomes one of the strongest outsourcing destinations globally, the Business Processing Association of the Philippines (BPAP) pleaded once again to the local government: �We don't like more holidays.�

Raymund Lacdao of BPAP is hoping that the Aquino administration will respond accordingly to their call that too many holidays affect the outsourcing sector's earnings. Since there are 22 holidays every year, he says BPO companies, especially the ones that operate 24/7, are forced to increase budgets for operational and labor costs. �The [declared] holidays in the Philippines has huge impact to our operations. We are serving other countries. It costs us a lot of money.� Another factor he says is the 60-day maternity leave for women and the impending approval of its extension in Congress. This will then increase the impact to the �cost of doing business� in the country.

The outsourcing sector is one of the major industries that helps in keeping the Philippine economy to stay afloat, and the government should look into the internal problems to reinforce the country's weaknesses.

The diminishing talent pool as well as cut-throat competition are also alarming issues that may put off potential clients. Lacdao said it is possible for the sector to employ at least 4.5 million people in the next six years due to the growth of complex export services such as accounting, human resources, and financial services, among others. However, industry growth is somewhat threatened by issues faced by local BPO companies and lack of consideration by the government.

Source:
http://www.philstar.com/

Indian BPO Unfazed by US Economic Woes

Thu, 25 Aug 2011 00:00:00 -0800

If the US economic slowdown will have an impact to the business process outsourcing (BPO) industry in India, it will be a positive one, according to industry leaders and analysts at the annual BPO strategy meet of Nasscom, trade body and chamber of commerce of IT-BPO industries of the country.

The $17-billion industry will actually benefit from the situation as it will push Western companies to outsource work to India to reduce costs.

Nasscom President Som Mittal believes the industry will not be affected since it is not directly linked to global challenges. During the 2008 economic crisis, adjustments in pricing models were effectively made and clients have offered more flexibility. Rating agency Crisil said the BPO sector grew by 20 percent and the IT sector expanded by seven percent. Nasscom remains optimistic about the 16-18 percent growth rate this year and in 2012.

The Indian BPO industry gets the lion's share of the global outsourcing market at 37 percent.

Source:

http://www.business-standard.com

PH Gov't, BPAP Team Up to Improve Quality of Talent

Wed, 24 Aug 2011 00:00:00 -0800

The Philippine government is partnering with industry body Business Processing Association of the Philippines (BPAP) to further improve the skills of workers who are entering the business process outsourcing (BPO) workforce and help the industry in reaching its revenue goals.

In a statement by Department of Budget and Management (DBM) Secretary Florencio Abad, a Training-for-Work Scholarship Program will be launched this year and in 2012. A total of 37,000 out of 58,000 scholars who will take part in the program will get jobs - guaranteed. BPAP Chairman Alfredo Ayala said this will need P350 million worth of investments per year. A faculty trainer development program will also be implemented. This will require P150 million in investments.

These initiatives will help in making sure that the country's outsourcing industry will remain a major revenue generator for the economy. "For the employment and the revenue potential of the industry, we see this as a reasonable investment that the government should consider," Mr. Abad said.

By 2016, BPAP expects that the industry will have 3.15 million job opportunities and post revenues reaching $25 billion.

Source:

http://www.bworldonline.com

Asian BPOs Expected to Grow 17.9% in 2011

Tue, 23 Aug 2011 00:00:00 -0800

A study done by industry research firm Gartner shows that the global business process outsourcing (BPO) market is estimated to expand by 6.3 percent and 17.9 percent in the Asia-Pacific region this year.

Gartner Research Vice-President Cathy Tornborn said BPOs still serve as a solution for cost reduction and to keep businesses going.

It is expected that there will be an increase in demand for various services including customer management, human resources, as well as banking and finance in the next few years. Growth is also predicted in vertical markets such as retail, healthcare, transportation, as well as utilities.

"We also see an increase in transaction volumes, especially in payroll, recruiting, accounts payable and customer data analytics and knowledge process outsourcing (KPO) activities," Tornborn said.

Gartner stated that scalability, the infusion of new processes, and technology are crucial elements for the growth of outsourcing in the region. The firm also foresees a 3.8 percent growth in North America's BPO market in 2011. Western Europe, on the other hand, is predicted to grow 8.9 percent in US dollars terms. When it comes to Latin America, Gartner predicts a 14.7 percent growth in US dollar terms this year.

Source:
http://economictimes.indiatimes.com

Gov't Official Calls for Stronger Alliances within Asia

Mon, 22 Aug 2011 00:00:00 -0800

According to a Cabinet official, country members of the Association of Southeast Asian Nations (ASEAN) can be protected from economic turmoil of Europe and the US by reinforcing alliances within the region.

During the Credit Suisse ASEAN+India Conference in Singapore, Finance Secretary Cesar V. Purisima said "What is becoming very clear is that [for] countries like the Philippines and other members of ASEAN, we'll have to look ... at how we can continue to pursue our growth strategy with domestic consumption within our own country, within ASEAN and intra-Asia."

Purisima highlighted that the region is becoming independent from advanced countries and that a part of the dealings are made within Asia, having US as the fifth trading partner - behind China and Japan.

Though India is responsible for only 2.5% of ASEAN trade, Purisima said that having an ASEAN engagement with India will be very crucial. He also said that the Philippines is heading in the right direction to strengthening partnerships with India. The Philippines is currently ranked third in the list of outsourcing destinations. �We're seeing increased engagement of Philippine-based companies with Indian companies and Indian companies competing in the Philippine BPO space.� He added that there is a need to work together so both countries can take part in the direction the global economy is heading.

Source:
http://www.bworldonline.com/

Study Shows Progression of Business Services Worldwide

Fri, 19 Aug 2011 00:00:00 -0800

According to a recent study from PwC US and HfS Research, �The Evolution of Global Business Services: Enhancing the Benefits of Shared Services and Outsourcing�, 97 percent of the 347 respondents specified that they participate in outsourcing relationships, while nine out of ten use shared services.

The report also stated that 44 percent of establishments are planning to lessen reliance on in-house delivery processes by looking for other options like outsourcing (73 percent) and shared services (59 percent).

Dr. Charles Aird, US and Global Leader of PwC's Shared Services and Outsourcing Advisory Practice, said "Organizations need to focus on aligning corporate strategy, improving investment portfolio decisions and reallocating current spending. To do so, they are adopting global business service models."

Some of the crucial factors highlighted in the study are:

*Corporate, global, and enterprise strategies should coincide with each other.

*Strategies should be flexible enough to adapt to the trends and changes in the industry.

*Invest wisely and contemplate whether you need to focus on in-house innovation or innovation from service providers.

*Find a system that works well for urgent situations and problems.

* Create long-term goals.

* Team leaders/Management should be skilled in handling situations.

* Take down important notes about service providers for future references.

*Select leaders who can be role models and live out strategies by being good examples.

Dr. Aird said corporate strategies of organizations are different. Therefore, global business services cannot be considered �one-size-fits-all�. Also, different corporate strategies will lead to different strategies in terms of global business services.

Source:
http://www.prnewswire.com/

Rent for Office Spaces still on the Rise

Thu, 18 Aug 2011 00:00:00 -0800

According to consultancy firm CBRE Philippines, rents for business process outsourcing (BPO) and traditional offices continue to rise, due to strong corporate expansionary demand that typically affects leasing requirements. Rick M. Santos, chairman and chief executive of CBRE Philippines, said in a statement, �We believe this is just the start of the projected up-cycle for the Philippine property market as determined by real demand and strong macroeconomic fundamentals.�

Multinational and local companies' high demand for office space in Makati and Ortigas is believed to support the increase in rental levels.

Office locations in BPO-dominant business districts of Alabang and Quezon City experience a more aggressive increase in office rents. From January to March, rent for office spaces in Makati increased 2.65% or P809 per square meter, whereas in Ortigas, rent increased to P554 per sq. m.

Monthly office rent in Alabang surged to P501 per sq. m. and P516 per sq. m. in Quezon City. Meanwhile, rates in Bonifacio Global City and Mckinley also grew with an average monthly rent of P698 per sq. m.

Mr. Santos added that because of supply pressures, office vacancy rates decreased even thought rents continue to rise. The most noticeable drop in vacancy rates is in the Fort Bonifacio district which is now at 1.48%, while Alabang is at 3.08%, Quezon City at 2.79%, Ortigas at 2.96%, and Makati at 4.6%.

Source:
http://www.bworldonline.com/

3rd International Outsourcing Summit to Highlight Non-voice BPO

Wed, 17 Aug 2011 00:00:00 -0800

Seventy expert speakers and panellists and 300 delegates will come together for the third annual International Outsourcing Summit (IOS) to be held in the Philippines on October 11-12.

According to the event organizer, Business Processing Association of the Philippines (BPAP), it is a great opportunity for all sectors in the IT-BPO industry to evaluate the improvement based on the IT-BPO Road Map 2011-2016, a study that shows estimated annual growth of up to 20% over the next five years, US$25 billion in revenues, as well as 1.3 million direct jobs and 3.2 million indirect jobs.

BPAP's Industry Affairs Executive Director Raymond Lacdao said voice-based BPO significantly contributes to the industry's growth, but non-voice, complex services will drive it to its maximum potential. �IOS 2011 was designed to focus attention of the industry on the potential of non-voice, complex IT-BPO services, and to increase the global visibility of the Philippines' capability for delivering these services,� said Lacdao.

Lacdao added that leadership skills in the industry and reforming of new services will also be discussed in this year's conference.

Philippine President Benigno S. Aquino III will deliver the keynote address, and president and CEO of LiveIt Investments Ltd. and BPAP Chairman Alfredo Ayala will moderate an �Emerging Markets� discussion during the first day of the summit.

Source:
http://www.prweb.com/

PH BPOs Express Concern over Strong Peso

Mon, 15 Aug 2011 00:00:00 -0800

The rise of the peso is worrying the BPO industry, and further appreciation might put off expansion plans of BPO companies.

According to Philippine Chamber of Commerce and Industry (PCCI) Chair Sergio Ortiz-Luis, BPOs need to reformulate business strategies if the exchange rate comes to P40:$1. The exchange rate is currently at P42.50 range. This is six percent higher compared to last year.

Ortiz said in a consultation meeting with the Business Processing Association of the Philippines (BPAP) along with other exporters, �They can still live lower than P42:$1 but a lot of the BPO expansion will be put on hold�. He also said that this will have an impact on the image of BPOs of having a competitive edge during the medium term.

According to a report done by PCCI, BPOs' labor arbitrage will decline if the peso remains strong, which may cause clients to take business elsewhere. PCCI also conducted an industry study which showed that an exchange rate below P37:$1 will take a toll on the BPO industry's competitive advantage.

A 20-percent growth valued at $25 billion is predicted by BPAP's medium-term road map which will begin next year up to 2016.

Source:
http://www.mb.com.ph/

Eastwood City Set to Open New BPO Building

Fri, 12 Aug 2011 00:00:00 -0800

TechnoPlaza Two is the newest addition to Eastwood Cyberpark, the largest IT-BPO hub in the Philippines. The office building has a gross floor area of 34,000 sqm, with seven floors of office space. It will also have a supermarket at the ground floor and various establishments at the second floor. A bridge way will connect TechnoPlaza Two with the Eastwood Mall.

Megaworld FVP for Business Development Jericho Go said, �As the local BPO industry is forecast to generate US$11 billion this year in revenues, up from $9 billion in 2010, the country's first and largest cyberpark continues to help the industry grow faster.� With this expansion of facilities, Megaworld aims to help the local outsourcing industry in reaching its revenue goal of $25 billion by 2016.

The Philippines, currently the 2nd top business process outsourcing destination, is predicted to surpass India's $12.4 billion BPO industry this year. Proof of this is the country's compounded annual growth rate (CAGR) at 27.6% in 2008, compared to India's 11.92%.

Source:
http://www.philstar.com/

IT Budgets in Asia-Pacific Expected to Grow in 2012

Thu, 11 Aug 2011 00:00:00 -0800

According to a report done by independent industry analyst and consultancy firm Ovum, 53% of insurers in the Asia-Pacific region are eager to increase internal and external IT budgets for 2011/2012. This is 6% higher than in 2010-2011 period.

Ovum's Insurance Technology Principal Analyst Barry Rabkin said, �Coming out of the post-financial crisis economic situation, the Asia-Pacific region is in a growth mode. Although Asia-Pacific insurers are struggling with having more insurance business operating systems than they want, they are planning to increase IT budgets in 2012.�

The report also showed that 51% of Asia-Pacific insurers use business process outsourcing (BPO), while 56% use information technology outsourcing (ITO) for IT work such as network services, desktop management, IT security, applications development, and application management. Asia-Pacific insurers are also seen to cash in on the web 2.0 market place such as service-orientated architecture (SOA), software-as-a-service (SaaS), and rich Internet applications (RIAs).

Rabkin said outsourcing service providers need to closely watch those who are not confident about outsourcing and those who intend to bring certain processes back in-house. He added that this is a good time for an insurance company in Asia-Pacific, considering that the region is growing and insurers are willing to increase their IT budgets. They are also open to adopting new technologies such as the Cloud. In fact, 43% said they have deployed or are looking into the adoption of this technology.

Source:
http://www.newsmaker.com.au/

Manpower Acquisition Dept.'s Referral Program Winners Revealed

Wed, 10 Aug 2011 00:00:00 -0800

Company nurse Elizabeth Tamayo and IT Engineer Christian Dela Rosa were the winners of the recently concluded referral program for their successful employee referrals of three Clinical Abstractors and five Onsite Schedulers, respectively. This program was facilitated by the Manpower Acquisition Department.

Each winner got a brand new iPad2 (16gb). Aside from that, Ms. Tamayo received a total of Php15,000 as incentives while Mr. Dela Rosa got Php10,000.

From June 6 to July 9, all employees were encouraged to refer their friends and apply to MicroSourcing. For each successful referral submitted to MicroRefer.com, the employee would get one point, and the top prize would be given to the employee with the most number of hired referrals. Incentives were also given per successful employee referral for the following positions: Clinical Abstractor, Onsite Scheduler, Production Manager, and VP of Operations.

PH Game Development Industry Eyes Faster Growth in 2012

Tue, 9 Aug 2011 00:00:00 -0800

The Game Developers Association of the Philippines (GDAP) is optimistic that the country's game development industry will grow faster in 2012 at a rate of 60-70 percent. This year, the projected growth rate is 55.56 percent or $14 million.

Darwin Tardio, president of GDAP, said they are looking at a faster growth rate despite the recent Standard & Poor's US credit rating downgrade. He added that the global gaming industry managed to perform well even during the recession.

Game development is considered as one of the faster-growing segments of the business process outsourcing (BPO) industry. Earlier this year, the Business Processing Association of the Philippines (BPAP) said they aim to increase the number of game developers this year to 1,600 from 1,200 in 2010.

Tardio said it will not be too difficult for the game development industry to flourish especially since there is a demand for mobile phones and other handheld devices, which are popular platforms for gaming.

Source:

http://www.bworldonline.com

MicroSourcing Launches In-house Pharmacy

Mon, 8 Aug 2011 00:00:00 -0800

MicroSourcing launched a full-service pharmacy located at the company headquarters in Eastwood City last August 5. This is in partnership with UniLab, the Philippines' leading pharmaceutical company.

With the in-house pharmacy, MicroSourcing employees can buy medicines and other health-related items at reduced prices.

According to Ramie Rosima, Human Capital Strategy and Delivery Group (HCSDG) Manager, payments will be done through salary deduction. Each employee can purchase health-related items worth up to Php2500 each month, which will then be deducted from their salaries.

Several activities were held throughout the launch of the pharmacy which was facilitated by HCSDG. Many employees received free medical consultation and skin analysis. Free lunch was also served and UniLab gift packs were given to winners and participants of the games.

Pres. Aquino: Gov't Committed to Supporting BPO Industry

Fri, 5 Aug 2011 00:00:00 -0800

President Benigno Aquino III said the government will help the Philippine business process outsourcing (BPO) industry for its further growth and to enable it to generate more jobs to Filipinos.

�So you can expect from government, in cooperation with CHED (Commission on Higher Education) and DepEd (Department of Education) and the basic sector that we are gearing all our education towards training the people for the jobs available when they do graduate instead of chasing after jobs that are currently and will no longer be existent by the time they graduate,� he said during the 5th International Contact Center Conference and Expo (ICCCE) 2011 in Pasay City. With government support, the President aims to provide graduates better opportunities to get the type of work that they want.

According to the Contact Center of the Philippines (CCAP), the country's voice-based sector posted $2.6 billion in revenues in 2006 and about $6.2 billion last year. It is also projected that the call center sector of the country will be able to increase investments and generate more jobs in the next few years.

Source:

http://www.zamboangatoday.ph

Everest: Captives still Expanding and Evolving

Wed, 3 Aug 2011 00:00:00 -0800

Captives continue to expand and evolve in the outsourcing and offshoring industry, according to a study by global services advisory firm Everest Group. This is in contrast to the perception that captives no longer thrive.

The captive model for offshoring involves more sophisticated processes and requires highly skilled manpower. Based on the Everest study "Captives are Staying Alive", many large-scale captive operations have grown and expanded their service offerings. In 2010, 10 captive were set up while 13 expanded.

Everest Group's Managing Director Eric Simonson said there are two reasons captives will be an important part of offshoring. "First, it is a large part of the market, representing about 25 percent of delivery within India. Second, the model is different from third-party models and that is not widely understood. A captive can not only deliver the typical services of a [third-party] service provider, but also many other services which are just part of the normal business."

Everest Group said IT and business processes of captives were worth about $8 billion in 2006. In 2009, a 10 percent compound annual growth rate was seen in captive center activities.

Source:

http://news.idg.no

PH Call Center Industry to Flourish in the next 5 Years

Tue, 2 Aug 2011 00:00:00 -0800

The Philippines is currently the top destination for voice-based work, and in the next five years, it is predicted that the call center industry of the country will see a 15 percent annual growth.

In five years, the industry is predicted to employ more than 800,000 and post revenues amounting to $14.7 billion. With this growth, Contact Center Association of the Philippines (CCAP) President Benedict Hernandez said the country will remain as the top call center destination, as long as the industry keeps offering high quality services.

To see continuous growth, the CCAP is focusing on meeting the demand for qualified manpower and improving employee welfare and the business environment. These initiatives will be done through the public-private partnership (PPP). CCAP is also working with the Commission on Higher Education and the Department of Education for the improvement of the curriculum and implementation of training programs for workers.

CCAP is optimistic about the industry, but finding qualified talent remains a challenge. Other concerns include the strong peso which is hurting the industry, and employee retention.

Source:

http://www.malaya.com.ph

German Firms not Aware of PH as BPO Destination

Mon, 1 Aug 2011 00:00:00 -0800

Lack of brand awareness and the fact that German firms do not know where the Philippines is are reasons these companies do not invest in the country, according to the German Chamber of Commerce.

India, not the Philippines, is the top destination that German firms consider as far as business process outsourcing (BPO) is concerned, said Nadine Fund, Business Development Manager of the German-Philippine Chamber of Commerce and Industry Inc. (GPCCI).

The Business Processing Association of the Philippines (BPAP) said there is a need to tap the UK market, which is estimated at $40 billion, especially since all other BPO destinations are targeting US, the largest market of the Philippine BPO industry.

The GPCCI and the Department of Industry are taking initiatives to establish the brand of the country as a BPO destination in Europe. For instance, the DTI is taking part in corporate events to introduce the Philippines as a destination for business investment.

Source:

http://www.gmanews.tv

TPI: Outsourcing Spending Increases, Contract Values Decrease

Fri, 29 Jul 2011 00:00:00 -0800

Outsourcing consultancy firm TPI said compared to 2010, businesses spent more on outsourcing in the second quarter this year. However, the average value of IT outsourcing contracts decreased for the same period.

Based on the TPI Index, while the total value of deals posted a 13 percent increase or �7.6 billion, the value of the global outsourcing industry decreased by 18 percent as the number of mega deals declined. In other words, there is an increase in IT and BPO spending, but the contracts have lower value.

�We have actually seen the pace of UK public sector activity increase in 2011, but contract values have declined,� said Duncan Aitchison, a partner at TPI. Increase in demand for outsourcing is seen in the UK, particularly in the Netherlands and France.

Source:

http://www.itpro.co.uk

PH Warned against too much Reliance on BPO

Thu, 28 Jul 2011 00:00:00 -0800

While the business process outsourcing industry is greatly contributing to the Philippine economy, the United Nations Conference on Trade and Development (Unctad) said the country should not depend too much on BPO since it is an example of non-equity modes (NEMs) which are attained and lost easily.

According to University of Asia and the Pacific Economics Prof. Jovi C. Dacanay who presented the World Investment Report 2011, non-equity modes are types of foreign direct investments (FDIs) and contractual deals that do not have high fixed assets. Aside from BPO, other examples of NEMs are contract manufacturing, franchising, and contract farming. Unctad said governments need to establish regulations on NEMs to make the most out of them and mitigate the risks.

Unctad said there are four areas to focus on to maximize the advantages that developing economies can get out of NEMs. These are: creation of policies embedded in development strategies, government support to initiatives in establishing domestic productive capacity, a strong legal and institutional framework, and creation of policies directed to the negative impact and risks brought about by NEMs.

Source:
http://www.abs-cbnnews.com

Forrester: Traditional Outsourcing �on its Deathbed�

Wed, 27 Jul 2011 00:00:00 -0800

Traditional outsourcing will be a thing of the past as the shift to innovation and emergence of technologies such as the Cloud take over. This is according to independent technology and market research firm Forrester Research.

�IT outsourcing as traditionally understood is on its deathbed,� said Ellen Daley, vice-president and practice leader at Forrester Research.

A Forrester study, involving 568 companies, reveals that expectations on costs savings are not met and more and more clients are not satisfied with the quality of work. Without cost reduction which is a primary reason companies outsource, clients are considering better technologies such as the Cloud.

Daley said there is a significant decrease in client spending on aspects that are usually present in corporate IT outsourcing budgets such as enterprise resource planning and human capital management software. On the other hand, the study reveals an increase in client spending when it comes to aspects such as business intelligence.

Source:
http://www.livemint.com

PNoy: More Job Opportunities Available in the Philippines

Tue, 26 Jul 2011 00:00:00 -0800

In President Benigno Aquino III's second State of the Nation Address (SONA) delivered yesterday, he said that there are more jobs available in the country for Filipino workers. He added that the workforce is slowly embracing the idea of working in the country and not in a foreign land.

There may be more job opportunities and thousands of graduates every year, but PNoy stated that the jobs mismatch remains a challenge that local industries are facing. He asked the government units and agencies concerned to address this problem. The Department of Labor and Employment (DOLE), Commission on Higher Education (CHED), the Technical Education and Skills Development Authority, and the Department of Education (DepEd) are called on to analyze the present curriculum and guide students in choosing courses that will help them land jobs in industries that are in need of workers.

The business process outsourcing (BPO) industry has been working with the academe and government agencies to help improve the skills of students, especially when it comes to English proficiency. According to Julito Vitriolo, CHED executive director, they are taking steps to improve the communication skills of students to make them globally competitive and meet the demands of the BPO sector and other industries.

Source:
http://www.gmanews.tv

Social Media Seen to Play Crucial Role in Customer Care Operations

Mon, 25 Jul 2011 00:00:00 -0800

Survey findings from outsourcing services provider Capgemini show that social media is a critical part of customer care operations of many businesses from various industries.

Out of 302 senior executives from Fortune 1000 companies, more than half (52 percent) said they are using social media as part of their customer care operations. Fifty-seven percent said they are keeping track of social media activities, while 36 percent are monitoring the value of using social media in their customer care strategies.

More than half of survey participants see social media as a tool to gain customer feedback on their products and services, generate leads, and measure customer satisfaction. While social media is perceived as an integral part of customer care operations, 73 percent of senior executives are not aware of the number of employees who are monitoring online conversations of customers. Forty-one percent said their companies are keeping track of customer's social media activities. However, they are only answering questions and responding to complaints of customers, and are therefore not getting the most out of social media.

�The use of social media as part of a strategic customer operations strategy is still emerging, but it presents companies with a clear opportunity to engage with current customers, find new ones and build brand awareness in an increasingly competitive landscape,� said David Poole, Vice President and Head of Americas Business Process Outsourcing, Capgemini.

Source:
http://www.businesswire.com

New Site Version Launched

Fri, 22 Jul 2011 00:00:00 -0800

MicroSourcing recently launched the new version of its site, www.MicroSourcing.com. This was done to provide visitors and clients a more in-depth look of what the company can offer.

One major change in this version is the addition of new pages focusing on the offshoring and outsourcing solutions MicroSourcing can provide to various business segments: start-ups and small companies, medium-sized businesses, and large corporations. This aims to inform site visitors that outsourcing is an effective solution for businesses of any size, and MicroSourcing has the capability to meet their requirements. Moreover, the new site version now has sections covering the delivery centers which were recently opened at Bonifacio Global City in Taguig.

The new version likewise has an updated and more comprehensive Outsourcing Services Finder. This feature is designed to help foreign companies in quickly finding the outsourcing delivery model that suits their requirements. Site visitors may also want to take the MicroSourcing Virtual Tour to have a good look at the company's facilities and offices.

PH Takes Third Spot in Global Outsourcing

Thu, 21 Jul 2011 00:00:00 -0800

According to a report by Canadian-based ICT research and advisory body XMG Global, India will capture 42.5% (US$61.5 billion), followed by China with 31.5% (US$45.7 billion), and the Philippines securing the third spot with 7.4% (US$10.7 billion) for the US$464 billion global outsourcing revenue.

XMG Global Chief Analyst Lauro Vives said, �The US economy, which remains to be a large market for offshoring, is still on the road to recovery with a forecasted 2011 GDP growth rate of 2.6%, slowing down from last year's 2.9%.�

Providers from India and the Philippines that cater to the US market are greatly affected by the devaluation of the US dollar, where providers from China are less affected because their clients are mostly based in East Asia.

Seventy-five percent of China's outsourcing earnings come from the domestic market, and are used as leverage in competing globally. This is probably the reason Indian providers such as Tata, Infosys, Wipro and Satyam, which are known to avoid the said market, seem to be heading towards the trend to expand the market. The Philippines, on the other hand, saw an opportunity in the non-English speaking market.

Source:
http://www.mb.com.ph/

Global Outsourcing Growth Weakens

Wed, 20 Jul 2011 00:00:00 -0800

According to the 2011 review of the global outsourcing sector done by Canadian-based ICT research and advisory committee XMG Global, the global outsourcing industry had a higher growth rate in 2010 compared to 2011. It brought in $374 billion in 2009, grew 13.9 percent at $425 billion last year, while it is predicted to post a 9.2 percent growth rate with $464 billion in 2011.

Arch rivals for the top offshoring destination title, China and India, continue to best each other in probing different markets, save for Europe and US.

XMG Global also predicts that the offshoring segment will bring in $144.8 billion in revenues, wherein the offshore market will be led by India with 42.5 percent ($61.5 billion) in revenues, followed by China with 31.5 percent ($45.7 billion), and Philippines at the third spot, with a revenue of $10.7 billion or 7.4 percent share.

Lauro Vives, XMG Global's chief analyst, said �The US economy, which remains to be a large market for offshoring, is still on the road to recovery with a forecasted 2011 GDP growth rate of 2.6 percent, slowing down from last year's 2.9 percent.�

The report also showed that the devaluation of the US dollar is affecting Philippine and Indian providers, which are dependent on the US market. Conversely, China is unscathed by the matter for it exports services to East Asian clients, even if Japan is at the wake of the 2011 earthquake.

XMG added that China is cashing in on the domestic BPO market to excel globally, and that major service providers in India that depended on high earnings from US and UK, namely Tata, Infosys, Wipro and Satyam, are looking into the growing domestic market.

The Philippines is also trying to increase its offshoring market shares by capitalizing on multilingual services. Proof of this is the Board of Investments partnership with IBM Philippines to improve programs locally for business process outsourcing.

Source:
http://newsbytes.ph/

Research: Demand for HR Outsourcing Increases

Fri, 15 Jul 2011 00:00:00 -0800

According to the research 'Talent2 APAC Market Pulse Study' commissioned by Talent2 and conducted by Galaxy Research, HR outsourcing was seen as a viable solution by most HR executives (80-90%) who participated in the survey.

A total of 579 HR executives participated in the online survey from countries like Australia, China, Singapore, and Hong Kong. They cited HR outsourcing as the solution to manpower-related issues such as search and recruitment (64%), and employee retention (50%).

John Rawlinson, CEO of Talent2Group, pointed out: "This research reinforces that ongoing skills shortages are hampering organisations across Asia from finding the people they need to drive top line business growth. What's interesting here is that HR executives are focusing on different ways to address these challenges - namely through outsourcing, and investment in learning and development."

Other important issues for HR outsourcing in Australia are the following:

- Other than recruitment, employee development and HR consulting are the processes that may be outsourced.
- More than half of respondents say that outsourcing enables them to focus on their core business functions.
- Sixty-three percent (63%) say that service providers' lack of detailed information about the business is a major disadvantage of outsourcing business processes.

Source:
http://au.ibtimes.com/

PH Moving Up to Become Leader in Multilingual BPO

Thu, 14 Jul 2011 00:00:00 -0800

After dominating the global industry of call center work, the Philippines is striving to become a location of choice for multilingual business process outsourcing (BPO) services.

Board of Investments (BoI) Managing Head Cristino Panlilio said they recently teamed up with IBM in hopes of making the country the leading source of multilingual candidates especially since increase in BPO activity is seen from companies in regions such as Europe and Asia-Pacific.

As stated in the DTI's briefer, "The Philippines as the Global Leader in Multilingual BPO", the number of multilingual talents in the country is increasing 8.7 percent yearly, with local multilingual candidates outnumbering foreign multilingual talents. Also, multilingual candidates in the country typically work on non-sales services like tech support and teaching.

Panlilio said the upcoming training center in Ortigas will harbor the partnership's plan of spawning Nihongo, French, German and Spanish-speaking graduates. Other plans include process integration of work permits and visas for both foreign and local talents to improve and simplify multilingual services.

IBM Philippines' General Manager James Velasquez said, �IBM's capabilities and best practices in multilingual BPO business, coupled with strong and strategic cooperation from the BoI, will further establish the Philippines as an upcoming leader in the global multilingual BPO arena."

Source:
http://www.malaya.com.ph/

PH Govt Fully Supports BPO Industry's Expansion

Tue, 12 Jul 2011 00:00:00 -0800

President Aquino recently said in a statement during the inauguration of NetworkLabs, Nokia Siemens Network's (NSN) research and development facility, that the government will fully support the developments in the BPO industry.

The President said that some of the things the administration is looking into are: business registration processes, efficiency of tax ruling procedures, and reduction of required documents for bidding in public works. The government also intends to draw investors by proposing tax incentives like income tax holidays for BPO-related investments, which enabled the BPO sector to gain net margins that are higher than those in India for 2010.

�We want to see more businesses opening, and to see many more skilled Filipinos being employed. More businesses open, the more opportunities our countrymen will have to show what they are capable of," said President Aquino.

NSN NetworkLabs is the first R&D facility in Southeast Asia that services and supports R&D teams globally. He added that it is an honor to be chosen as the facility's location, because it proves that the Philippines is a leader in the BPO industry.

Source:
http://www.gmanews.tv/

Gartner: BPO Companies to Increase Spending this Year

Mon, 11 Jul 2011 00:00:00 -0800

Fifty-four percent (54%) of the 600 mid-to-large companies that were surveyed declared that they are planning to add 5% or more to fund their BPO projects, while 20% are planning to escalate BPO budgets by 10%, showing that opportunity to expand BPO or IT outsourcing has indeed returned since the recession.

Teresa Jones, principal research analyst at Gartner, said, "Many of these budget increases are driven by the fact that BPM is focused on improving business outcomes and explicitly meets the objectives of many organisations' return-to-growth strategies.�

This could be advantageous for the key players in the international BPO market -- India and the Philippines. Twenty-five percent of the participants in the Asia Pacific region were planning to increase BPO expenditures by more than 10%, which shows that �return to growth� trend is more aggressive than the 20% rate globally.

Also, companies turn towards BPO expansion rather than IT outsourcing, for they see that BPO offers more opportunities.

Source:
http://rtn.asia/

World Bank Predicts 5% Growth for the Philippine Economy

Thu, 7 Jul 2011 00:00:00 -0800

According to the Philippines Quarterly Update (PQU) released by World Bank, "growth could potentially be higher as the strong focus and early gains of President Aquino's administration in tackling corruption and improving the investment climate could boost domestic investment."

The much anticipated increase in exports to Japan and the rise of jobs in the outsourcing sector will also strengthen the economic growth of the Philippines.

World Bank Senior Economist Eric Le Borgne stated, "Prospects on the supply side remain favorable with manufacturing and construction projected to benefit from the end of the trade disruption linked to Japan's post-disaster reconstruction, as well as the solid growth forecast for the business process outsourcing."

However, the Philippines needs to persevere in creating a comprehensive improvement aimed at reducing 30 percent of the poverty rate. The World Bank added that the Philippine government should also take action in creating sources of income for the poor, and fund education, health and social protection services.

Another factor pointed out by the World Bank is to improve tourism in the country that can provide work for the less fortunate and more opportunities for small enterprises.

On the other hand, Benjamin Diokno, Economics professor at the University of the Philippines, said, the targeted growth forecast should be scaled back at around five to six percent, and predicts that it will dwindle to 4.9 percent due to the disaster in Japan and conflicts between the Middle East and North Africa.

Source:
http://www.philstar.com/

CICT Downgrade to have Negative Impact on PH BPO

Tue, 5 Jul 2011 00:00:00 -0800

Following President Benigno Aquino III's decision to downgrade the Commission on Information and Communications Technology (CICT) and make it an office of the Department of Science and Technology, Senator Edgardo Angara said this could have a negative impact on the growth of the country's business process outsourcing (BPO) industry.

Angara noted that this move of downgrading CICT to Information and Communications Technology Office �sends the wrong signal� about how we think of ICT, which is an industry that can open opportunities for jobs and investment. This might slow down the growth of companies in the BPO industry. By 2016, it is expected that the industry will employ 1.3 million workers, and revenues could hit the $26 billion mark.

He has filed a bill to establish a Department of Communications Technology. The senator as well as the IT and BPO sectors are all for the creation of a department which will serve as the government body that addresses their needs and issues.

Source:
http://www.sunstar.com.ph

Outsourced Work not Included in India's Data Privacy Rules

Mon, 4 Jul 2011 00:00:00 -0800

India's new data protection and privacy rules, which involve asking for a written consent to collect data, do not apply to personal information from clients that outsource work to the country. This is according to CEO Kamlesh Bajaj of the Data Security Council of India, a company established by IT body National Association of Software and Service Companies (Nasscom) to set data security and privacy standards for outsourcing players.

Based on the new Information Technology Rules 2011, companies need to get a written consent to individuals that they would be collecting personal information. Bajaj said the government will soon clarify that the rules do not cover personal data from companies in other countries.

On the other hand, analysts think the country had gone overboard when it comes to implementing stringent data privacy rules to impress outsourcing buyers and investors. According to London-based law firm Lawrence Graham LLP, the new rules posed concerns on how this initiative could be implemented. Also, companies that outsource work to India need to look into their practices in collecting data to ensure that these are in accordance to India's own data privacy rules.

Source:
http://www.pcworld.com

PH Economy, Property Sector to Earn More with BPO Revenues

Fri, 1 Jul 2011 00:00:00 -0800

The increase in business process outsourcing (BPO) industry revenues, low interest rates, and improved investor confidence are factors that will extend gains of the property sector and the country's economy as a whole.

According to Rick Santos, Philippine chairman of property services company CB Richard Ellis, said the demand for office space in the BPO industry will increase and will reach more than 300,000 sqm. this year, as US firms outsource more processes to the Philippines and because rents in the country are much less expensive compared to other Asian cities. "We see that as a huge metric whereas places like Singapore, who also have a very hot market, take up there is just about 150,000 square meters. So we're looking at office take up in the Philippines double that of a place like Singapore."

The administration also boosts investor confidence. Santos said foreign investors see great improvements in the next few years.

Source:
http://www.abs-cbnnews.com

MicroSourcing Taps Healthcare, Financial Services Sectors

Wed, 29 Jun 2011 00:00:00 -0800

MicroSourcing has long been providing services for clients from IT & Internet and creative sectors, and the rapid expansion of the company, not to mention the constant flow of client inquiries, are evidences that MicroSourcing can deliver on time and within the clients' budget. This year, the company started tapping two new segments: healthcare and financial services.

The company was contacted by a US-based health information solutions provider. They specialize in forming partnerships with various organizations that need help in healthcare data analytics. This client needs about 200 Clinical Abstractors who are responsible for complete diagnostic coding, abstraction of pharmaceutical studies, as well as review of medical records.

When it comes to the financial services segment, MicroSourcing recently signed a contract with a US-based company that deals with processes involving Point of Sale (POS) payment and debit and credit card transactions. The client requires Sales-driven Account Associates who are in charge primarily of converting all phone calls into sales transactions.

MicroSourcing's PR Department Launched

Tue, 28 Jun 2011 00:00:00 -0800

Knowing that social media platforms have become excellent online marketing tools for a lot of businesses of any type and size, MicroSourcing recently formed a Public Relations (PR) department that will implement strategies on Facebook, Twitter, LinkedIn, and other similar sites. This is primarily to increase brand awareness and attract more visitors to the company website.

Headed by Nona Tajanlangit-Kooijman, the department is responsible for making the company's presence known in the world of social media. Specifically, they are in charge of managing MicroSourcing's social media profiles across various platforms including LinkedIn, Facebook, Twitter, and YouTube, developing and executing acquisition and retention strategies, generating and monitoring content, responding to comments, questions, and suggestions of friends, followers, and contacts, monitoring the strategies of competitors, and staying up-to-date on the latest social media trends and techniques. The department is also in charge of creating and publishing press releases to further promote what the company can offer.

BPO Firm Partners with DepEd to Improve English Skills of Students

Mon, 27 Jun 2011 00:00:00 -0800

The Philippines' Department of Education (DepEd) formed partnership with business process outsourcing (BPO) company Wipro BPO Philippines to help teachers in public high schools be more proficient in the English language and eventually produce high quality, English-speaking talent. This is through the Communication Excellence for Public Education (CEPE) program.

In the CEPE, launched two months ago in Cebu, Wipro will be facilitating training and refresher courses to public high school teachers who will be nominated by DepEd. This is to address the lack of English oral and written skills in students. A total of 60 teachers from Cebu were already trained since the CEPE launch. DepEd 7 Director Recaredo Borgonia said that students need to improve their English communication skills so they can meet the requirements of various industries, including BPO, in their province.

CEPE was first rolled out in Cebu, but according to Wipro BPO Philippines Ltd. country head Romit Gupta, the company is planning to facilitate the program in Manila.

Source:
http://www.sunstar.com.ph

Increase in Demand for Office Space Seen due to BPO Growth

Thu, 23 Jun 2011 00:00:00 -0800

Due to the incessant expansion of business process outsourcing (BPO) companies in the country's central business districts (CBDs), Rick M. Santos, chairman of the local property consultancy firm CB Richard Ellis Philippines, Inc., predicted an increase in demand for office space, saying that leasing in the Philippines is much cheaper - only one-twelfth of the rates in Hong Kong.

Mr. Santos sees a 30% or roughly 350,000 sq. m. increase in office space leasing compared to 2010. �Last year, we hit 275,000 sq. m. It will be up this year because BPOs will expand,� he said.

Bonifacio Global City in Taguig, Pasay, and Eastwood City in Quezon City will still remain as �growth areas� for both BPO and KPO companies.

According to the quarterly report of CB Richard Ellis entitled �Market View: Asia Pacific Offices�, office space rent in Metro Manila (about $20.22 per square feet in the first quarter) is still the second cheapest in Asia Pacific.

Also, Mr. Santos said 20% of the Zuellig Building is now reserved for office use. This is the first ever US Green Building Council's Leadership in Energy and Environmental Design (LEED)-certified structure in the country.

Source:
http://www.bworldonline.com/

PH BPOs Aim to Tap New Markets in Asia-Pacific Region

Tue, 21 Jun 2011 00:00:00 -0800

To further promote the business process outsourcing (BPO) industry of the Philippines and reach the target annual growth rate of 30 percent, BPO firms in the country are eyeing to tap new markets in the Asia-Pacific region.

According to Senior Executive Director Gigi Virata of the Business Processing Association of the Philippines (BPAP), the country's BPO industry can enter new markets such as China, Sri Lanka, and India as it has maintained its competitiveness in BPO for call center work and non-voice functions.

However, talent that meets client requirements remains a challenge for the industry. To improve the quality of recruitment and increase the hiring rate in the industry, BPO firms are working together with the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) to implement training and recruiting development programs.

Meanwhile, businessmen think computerized training and increased use of English in local TV can further improve the English communication skills of Filipino workers who wish to enter the BPO workforce.

Source:
http://www.mb.com.ph

Poor Service Remains a Concern with Outsourcing Vendors

Fri, 17 Jun 2011 00:00:00 -0800

Based on the 2011 IDG Enterprise Outsourcing and Service Providers online survey answered by 1,176 IT leaders, substandard service quality is the main concern of most CIOs, even though 44 percent of the respondents said service level agreements (SLAs) are now stricter compared to SLAs three years ago. Other risks mentioned were security issues, loss of internal IT knowledge, and hidden fees.

Barr Snyderwine, CIO of a special events company called Hargrove, had an outsourcing strategy which started out smooth - low costs and decent service, but when it comes to IT outsourcing, the situation was different. He said that if there is a server problem, the provider will send someone over, but that still takes some time. �If you're buying a box or replacing a drive, SLAs work great. But when you're outsourcing services, it's still all about people. Governance is key," said Snyderwine.

More than 25 percent of survey participants rated their service delivery management and measurement practices as very effective, while 43 percent said they were average, and 12 percent said they weren't effective at all. "The mentality all too often is, I have a contract in place, we've told them what we want, now they can do it all for us," says Snyderwine.

Apparently, quality issues will not hinder outsourcing operations. As a matter of fact, 36 percent of IT leaders plan to add third party IT services in the coming year. The top reasons are: lack of skills and know-how (52 percent), to lessen costs (50 percent), and supply different needs of the company (44 percent).

Source:
http://www.computerworld.com/

Canadian Small Companies still don't Want to Outsource

Thu, 16 Jun 2011 00:00:00 -0800

According to an Angus Reid survey done by the American Express Small Business Monitor last April, 38 percent of owners choose to avert difficult tasks but are having issues when it comes to trusting the quality of other people's work. Meanwhile, twenty-four percent do not want to endure the difficulties of finding and managing new people.

Subsequently, majority of the survey participants say outsourcing is costly and are unwilling to surrender control of their business. The result clearly proves that small business proprietors in Canada would rather resolve tech issues on their own, even if they lack the expertise, than employ support.

Forty percent chose to be independent by doing office repairs, cleaning, and administrative tasks.

However, a lot of owners admitted that they are incapable of doing it all, particularly technology-related issues. In fact, 59 percent said they gave in to outsourcing and hired outsiders for at least one of their tasks in a span of six months. Some of the most outsourced processes are website-related and technical support.

According to a monthly report by the National Federation of Independent Business, even small business owners at the south of the border are unwilling to hire, not due to management control issues but because of the weak economy and political uncertainty.

Source:
http://www.theglobeandmail.com/

Nasscom Chief: Indian IT Outsourcing Model becoming Outcome-based

Wed, 15 Jun 2011 00:00:00 -0800

Chief Som Mittal of Nascomm, India's IT industry body, said the country's traditional information technology outsourcing (ITO) model is shifting into result-based form. He also predicted that the industry will post double-digit growth rate figures and revenues will increase, more or less 15%, valued at $70 billion by the end of this year, as clients from the US and Europe resume IT spending.

�We've now moved to an outcome-based model - being paid on performance, rather than one based solely on the number of people deployed on any one job, that is giving outsourcers an incentive to be more efficient,� Mittal said.

In addition to that, HCL Technologies Director Bindi Bhullar said buyers are now looking for pricing models that are outcome-based.

However, some experts believe that the increase in number of above-average wage earners in India may pose a problem later on. Arup Roy, Gartner's principal analyst, said salaries increase 15% annually, which means that India's title as a low-cost destination is "depleting with every passing year" and added that investors need to change their usual expectation of seeing a 20-25 percent growth rate.

Source:
http://itservices.cbronline.com/

PH Recognized as One of the Leading Global Service Exporters

Tue, 14 Jun 2011 00:00:00 -0800

World Bank recently recognized the Philippines as one of the leading global service exporters, thanks to the business process outsourcing (BPO) industry. They also noted that for the country to progress, travel and tourism should also be developed.

According to World Bank senior trade economist Sebastian Saez, the factors that affect the services sector are infrastructure, manpower, and excellence of institutions. �The experience of exporting outsourced business services in the Philippines shows that by creating an enabling environment where the private sector can deploy its creativity, developing countries can reap the benefits that services exports opportunities are opening,� Saez said.

Services exports increased 3.6 percent per year, from nine percent in 1999 to 21 percent in 2009.

The Philippines holds 15 percent of the global BPO industry, with India (37%) at the top spot and followed by Canada (27%).

According to Business Processing Association Philippines (BPAP) chairman Fred Ayala, during 2010, the country's BPO industry employed around 500,000 people and yielded $9 billion worth of services. The industry plans to reach $25 billion in revenue by 2016 and employ 1.3 million.

World Bank study also emphasized that the tourism sector should be cultivated and reforms outlined in the National Tourism Development Plan (NTDP) should be addressed to maximize the sector's potential and in the long run, help resolve poverty issues in the country.

Source:
http://www.abs-cbnnews.com/

UAE Seen as Major Outsourcing Location of Choice

Mon, 13 Jun 2011 00:00:00 -0800

According to a study, companies worldwide are taking advantage of prime locations that offer advanced technology and tax-free environments for business process outsourcing (BPO) operations. The UAE's Dubai Outsource Zone (DOZ) seems to be living up to clients' expectations and has become an influential contender in the global outsourcing industry. As a matter of fact, DOZ is currently housing call and IT center operations that focus on banking, travel, financial, and IT sectors.

Lindsey McDonald, Frost and Sullivan consultant who co-authored the report with DOZ, said, "Now, what we're seeing is a new outsourcing mega trend." The DOZ currently oversees 5,000 workers from 58 nations. She added that the region is seen as one of the most stable despite the economic downturn.

"Growth witnessed by the cluster in such a short time signifies the role it has played in developing the emirate's outsourcing industry. Obviously one of the main criterions is the political stability. We know we are on the radar of many companies who are revamping their strategies," said Malek Al Malek, managing director of Dubai Internet City and DOZ.

Source:
http://gulfnews.com/

BPO Predicted to Outshine OFW Remittances by 2016

Fri, 10 Jun 2011 00:00:00 -0800

Senator Edgardo Angara, along with the Business Processing Association of the Philippines (BPAP), predicted that by 2016, the business process outsourcing (BPO) industry can outdo the remittances from overseas Filipino workers.

At present, the BPO industry employs (more or less) 500,000 Filipinos and is valued at US$9 billion. According to BPAP, it can grow from US$18.8 billion in 2010 up to US$26 billion by 2016, employing 1.3 million people.

Senator Angara said during a recent hearing of the Senate Committee on Science and Technology, the BPO industry is in dire need of the government's support in terms of data security and establishment of an ICT-dedicated government entity to regulate operations. Angara said this could be achieved by establishing a government division called Department of Information and Communication Technology (DICT), and implementing data privacy laws.

According to Angara, the creation of DICT under the Medium Term Philippine Development Plan is also supported by The National Economic and Development Authority (NEDA).

Source:
http://www.pia.gov.ph/

PH IT-BPO Exports could Hit $55B Mark in 2020

Thu, 9 Jun 2011 00:00:00 -0800

According to a study done by World Bank consultant Raja Mitra, improvements in the information technology outsourcing (ITO) industry could help increase export revenues, from $30 billion to $55 billion by 2020, and relatively surpass the $9 billion it measured in medium-term export revenues during 2010.

Mitra also estimated that the low-end medium-term export revenue could amount to $30 billion, the medium-end at $45 billion and lastly, the high-end could be valued at $55 billion.

�While not a panacea...expanding the scale and scope of exports of IT-BPO services as well as domestic industry development and use of ICT [information and communication technology] will offer new avenues that can help the economy to be more productive and accelerate efforts to achieve inclusive growth within the country and to interface and catch up with the rest of the world,� Mitra said.

In 2010, the IT-BPO industry contributed five percent to the country's gross domestic product (GDP), but Mitra predicts that it could reach as much as 11 percent in 2020. Mitra likewise predicted that the number of employees in the sector will reach 6.8 million by 2020. However, he said that these are only estimates and that there are more areas to work on like the lack of infrastructure in most IT-BPO services.

In terms of voice-based outsourcing services, Mitra said the Philippines had surpassed India and that Metro Manila is currently the city that has the most number of employees in the BPO industry.

Source:
http://www.abs-cbnnews.com/

India's Affordable BPO Services Attract Investors Worldwide

Wed, 8 Jun 2011 00:00:00 -0800

Ernst and Young recently reported that India's ability to offer affordable business process outsourcing (BPO) services draws global investors albeit regulatory disputes in the country.

Mr Srinivasa Rao, Partner and National Director -Tax & Regulatory Services at Ernst & Young, said, �The survey clearly establishes India as one of the leading economies where foreign capital will flow into in the coming years. In addition to the overall strong macro-economic fundamentals, India's navigation of the economic downturn over the last couple of years has been strong and steady.�

Industry body Nasscom recounted that during fiscal 2011, India's IT and BPO exports account for 26 percent of the country's overall exports and 11 percent in earnings. This is an 18.7 percent increase valued at $59 billion.

IT services are expected to increase 16-18 percent to $68-70 billion. Consequently, the IT sector matured faster at 22.7 percent than BPO at 14 percent.

Over 800 global companies were surveyed on their opinions about the future of global investment. The findings were then combined with an analysis of international investments in Europe.

Source:
http://www.thehindubusinessline.com/

MicroSourcing Opens New Office at Bonifacio Global City

Tue, 7 Jun 2011 00:00:00 -0800

As part of the company's expansion to meet the needs of clients, MicroSourcing opened a new office last June 1 at Bonifacio Global City in Taguig.

MicroSourcing's new office has 200 production seats divided over two work floors, 21 management and shared services seats, two conference rooms, a server room, and a restaurant. It occupies the entire 18th floor of Picadilly Star Building, home to a long list of multinational companies including Mindshare/Ogilvy, InContact, and DOCOMO interTouch.

Bonifacio Global City lies at the center of Metro Manila, right next to the Makati central business district. It is a high-end location with a lot of new luxury residential and commercial buildings. It is the location of choice for most multinational financial institutions such as HSBC, JP Morgan and Deutsche Bank.

The emergence of the new PEZA-accredited building has sparked an increase in the number of business process outsourcing (BPO) companies that are starting to set up their delivery centers in Fort Bonifacio. Moreover, the availability of 24/7 services catering to the average BPO worker is improving rapidly. This further makes the area a very conducive environment for BPO companies.

Global Outsourcing Industry Estimated to Reach $479B by 2016

Tue, 7 Jun 2011 00:00:00 -0800

Based on a report done by Dubai Outsource Zone (DOZ), in partnership with research and consulting firm Frost and Sullivan, the global outsourcing sector is predicted to reach $479.3 billion by 2016 due to a significant change in the industry.

The special study, entitled �Outsourcing Opportunities in the MENA Region�, was released during DOZ's fourth anniversary.

The report highlighted that the UAE and the wider MENA region are prime outsourcing destinations. Moreover, it showed that $370 billion from the global outsourcing market will be reflected as an 8.35 percent compound annual growth rate (CAGR). On the other hand, the MENA region is expected to show a CAGR of eight percent during the period of 2009-2016, while the UAE is expected to gain a 10 CAGR during the same forecast period.

The developments in the industry are also said to be caused by the financial crisis, which also encouraged companies to change policies, practices, and to outsource.

As Dubai becomes the favoured outsourcing destination because it poses as a gateway to the entire Middle East, Africa, and Asia, the MENA region, on the other hand, is known as the second largest outsourcing market after Egypt.

Frost & Sullivan Consultant for Middle East and North Africa Information and Communication Technologies Lindsay McDonald said, �The entire outsourcing industry was based on low cost activities. But now clients are ready to pay a premium if they are assured of high quality services. Due to this trend, governments of well-established outsourcing destinations are in the process of re-aligning their outsourcing industry and its development strategies.�

Source:
http://www.khaleejtimes.com/

PH Tagged as the �Next Asian Dragon� in the BPO Industry

Mon, 6 Jun 2011 00:00:00 -0800

Investors consider the Philippines as the �next Asian dragon�, taking note of the 25-percent-a-year growth rate of the country's IT-BPO industry.

According to Commissioner Ivan John Enrile Uy of the Commission on Information and Communications Technology (CICT), this growth rate is attributed to the world's biggest firms that establish business operations in the Philippines. Based on last year's data, approximately 525,000 workers were part of the IT-BPO workforce and US$9.1 billion in export revenues were posted.

Meanwhile, Uy praised Bacolod in Negros Occidental for being ranked as the 3rd Next Wave City in the country, and 100th city globally according to Tholons International. He added that CICT aims to further prepare cities and areas outside Metro Manila to meet the needs of IT-BPO companies to �decongest Metro Manila, spread economic growth opportunities to other parts of the country, and capitalize on the abundant and globally competitive workforce available in many parts of the country."

Source:
http://www.abs-cbnnews.com

Eastwood City Cyberpark Remains No.1 IT Park in the Philippines

Thu, 2 Jun 2011 00:00:00 -0800

In terms of employment figures and salaries, Eastwood City Cyberpark in Quezon City is still the number 1 IT park in the country. This is based on the data from the Philippine Economic Zone Authority (PEZA).

In 2010, Eastwood City Cyberpark's PEZA-registered locators employed 19, 395 individuals. This is a 15 percent increase from 2009 figures and is the highest number among all registered IT parks in the country. On the other hand, the salaries and wages paid out in PEZA-registered firms reached Php7.93 billion, a 15 percent increase from Php6.72 billion posted in 2009.

Eastwood City Cyberpark also posted an increase in the exports category, reaching US$354.19 million from its companies that belong to the outsourcing and offshoring industry.

Jericho Go, FVP for Business Development of property developer Megaworld Corporation, shared this recognition to the cyberpark's locators and partners that contribute to achieving the goal of providing career growth opportunities for Filipino employees.

Source:
http://www.mb.com.ph

Clients Miss Opportunities as They Focus Too Much on SLAs

Wed, 1 Jun 2011 00:00:00 -0800

A recent study done by Accenture and Shared Services and Outsourcing Network (SSON) stated that outsourcing providers and clients are mostly consumed by service level agreements (SLAs) and are forgetting business strategies in contracts.

Forty-two percent (42%) of the 600 respondents said their time is spent discussing SLAs rather than business outcomes. On the other hand, 25 percent said they used to do the same thing but have changed the process.

According to Tom Pettit, managing director of North America business process outsourcing at Accenture, although SLAs are vital for IT and BPO contracts, they can also confuse both parties from future developments. "SLAs are an important part of any managed service engagement. They set expectations and necessary service performance targets. However, the overwhelming majority of SLAs are focused on measuring process inputs, rather than business outcomes."

Cutting costs may be the driving force for clients and providers to overlook operational metrics. Fifty-eight percent (58%) of the respondents said they outsource work because they wanted to cut costs, 19 percent did it because they wanted access and capacity, and 12 percent did it for risk reduction.

It is also stated in the study that most of the outsourcing customers fail to gratify some members of the management team, which has become a problem. "The centralization of services, whether in an internal shared services model or in an outsourced model, involves shifts in power and influence, changes in roles and responsibilities, and disruption of familiar ways of working. These are notoriously difficult and often deeply personal issues that require focused and sustained management attention over extended periods of time," said Pettit.

Source:
http://www.cio.com/

US Firms to Invest $100M, Create 10,000 BPO Jobs in the Philippines

Tue, 31 May 2011 00:00:00 -0800

With a total of $100 million worth of investments, six US-based companies are outsourcing non-voice business process outsourcing (BPO) work to the Philippines, generating 10,000 job opportunities for Filipino workers. According to Cristino Panlilio, managing head of the Board of Investments (BoI), these American firms are new outsourcing players, though the names remain undisclosed.

In an earlier report, BoI said AETNA, US-based insurance company, will hire Filipino nurses to provide two kinds of services: clinical support and home care for American patients. BoI Executive Director Fe Reyes-Agoncillo said there are 250 nurses who are already providing clinical support, and the firm needs a total of 500 for that service. On the other hand, 250 nurses are needed to provide home care services for patients. This number is expected to reach 1000 in the next two years.

Source:
http://www.mb.com.ph

Cebu's BPO Industry Empowered by New IT Locators

Mon, 30 May 2011 00:00:00 -0800

The business process outsourcing (BPO) industry of Cebu continues to expand as new IT buildings and sites emerge to cater to the influx of IT firms that are interested in establishing operations in the province.

Cebu Property Ventures and Development Corporation (CPVDC) and Ayala Land Inc. (ALI) have teamed up in managing Asian i-Office Properties Inc. (AiO), a company that recently led the topping out of eBloc Tower 2 at the Asiatown IT Park.

Francis Monera, CPVDC President, said, �Cebu's booming BPO sector is ripe for the expansion of new and existing IT locators. The opening of an eBloc Tower 2 will open the door to more investments and job opportunities in the area.�

eBloc Tower 2 is a follow-up to the eBloc Tower which was completed in 2009. The 16-level office building is situated at a 4,383-square meter lot, and is predicted to become the best location for BPO, IT, and IT-enabled services (ITES) business locators.

Monera also said that various BPO companies are very interested in leasing office space. Sixty-five percent (65%) of the total occupancy were already reserved for upcoming operations, and once occupancy rate has reached 70%, AiO will begin the construction of the third tower.

ALI senior vice president and Visayas-Mindanao group head Emilio Tumbocon said that eBloc Tower 2 only accounts for one of Ayala's 13 new projects to be launched this year. �With these strategic directions, we will take on new ventures and maximize the potential of the BPO industry, particularly in the Visayas and Mindanao areas,� he said.

Source:
http://www.mb.com.ph/

Telco Company Seeks Call Center Agents with British Accent

Fri, 27 May 2011 00:00:00 -0800

According to Business Inquirer Manila, a British company has considered entering the Philippines' business process outsourcing (BPO) market, and even train call center employees to speak like a British.

Presidential spokesperson Edwin Lacierda said that representatives from prominent companies Convergys (Philippines) and Everything and Everywhere (Britain) contacted President Benigno Aquino III and presented the plan. The British company is looking to hire employees and establish foothold here in the country. �And since this is a British BPO, there's also a need for the Filipinos to be trained in the British accent, which we are not familiar with,� he added.

Lacierda said, �They are very, very bullish. They are interested and they are very open to the situation here in the Philippines. We're the No. 1 BPO destination in the world and they recognize our ability. They recognize we have the infrastructure to maintain our status as the No. 1 BPO destination in the world,�

In line with that, Trade Undersecretary Zenaida Maglaya said that Everything and Everywhere is working on a partnership with Convergys in hopes of penetrating Philippines' BPO market.

Source:
http://www.bpowatchindia.com/

Job Opportunities for Nurses in the Philippine BPO Industry

Wed, 25 May 2011 00:00:00 -0800

Thousands of unemployed nursing graduates may consider working for business process outsourcing (BPO) companies in the Philippines, where they can perform jobs that are related to their educational background.

According to Fe Agoncillo-Reyes, assistant secretary of the Department of Trade and Industry (DTI), a New York-based company, Aetna Insurance, has a unit in the Philippines called EXL Service Philippines. This company, which started out with 250 nurses at an office in SM Mall of Asia, is now looking to hire 1,000 nurses to provide basic clinical support like assessing and approving insurance claims. Other services include calling home-care patients based in the US.

The healthcare BPO sector provided jobs to 14,000 healthcare professionals in 2010, and produced $102 million in revenue, an 11% increase from 2009. Today, medical transcription is no longer the solitary work available in the healthcare BPO sector according to the Healthcare Information Management Outsourcing Association of the Philippines (formerly Medical Transcription Industry Association of the Philippines Inc.), Reyes added.

In line with this, the sector is preparing for the increasing demand for healthcare services in the United States due to changes in US healthcare regulations.

On the other hand, Business Processing Association of the Philippines (BPAP) reported that the Philippine IT-BPO industry grew 26 percent in 2010 to $8.9 billion and employed 525,000 professionals. BPAP also projected a 15% baseline increase in the next few years. The projection would then account for 900,000 total direct jobs, 1.7 million indirect jobs, and $20 billion in revenues.

Source:
http://www.malaya.com.ph/

Indian BPOs Expand Service Offerings to Meet Demand

Mon, 23 May 2011 00:00:00 -0800

The shift in the trends and demands in the outsourcing industry encouraged large BPO firms in India to expand vertical or sectoral expertise. BPO companies are known to have been focusing on horizontal services like customer support and back office functions that are used in various industry verticals. Industry body Nasscom assessed that horizontal services make up 70% of the Indian BPO industry.

Nonetheless, clients are now demanding for specific services wherein they can contain costs and focus on their core functions. Some of the functions clients are looking for are mortgage processing, core banking, supply chain, and healthcare insurance.

According to the group CEO of Aditya Birla Minacs Deepak Patel, banking clients and insurance clients are now outsourcing core processes in finance and are requesting for a study regarding loans and loan distribution.

Although BPO vertical focus is similar to the IT outsourcing industry, Indian BPOs manage each vertical differently. Two ways of putting up a vertical are: looking for a country that offers the specific expertise needed and buying out other service providers. An example of the latter is the recent acquisition of a finance and accounting outsourcing service provider, Outsource Partners International, by BPO firm EXL Service Holdings. Other companies that are looking to acquire specific services in other regions are Tech Mahindra , TCS, and Aegis.

Group CEO of WNS Global Services, Keshav Murugesh, said, "When clients interact with us, they interact with people with specialized knowledge and work skills from the same industry. Our core area of investment now lies in sales and new verticals."

Source:
http://articles.timesofindia.indiatimes.com/

Everest Group Examines Prominent FAO Service Providers Worldwide

Wed, 18 May 2011 00:00:00 -0800

Everest Group examined 20-plus FAO service providers and released data about the increasing progression of Finance and Accounting Outsourcing (FAO) service providers worldwide. The Global FAO Service Provider Landscape report states that 65% of the market by Annual Contract Value (ACV) and 55% of the number of contracts are represented by six of the leading FAO service providers.

However, several major service providers are quickly catching up, a phenomenon similar to that of the pre-recession era. The report includes analyses of provider dynamics, market share, performance, capabilities, and trends.

One of the factors of the survey is the PEAK (Performance/Experience/Ability/Knowledge) matrix. More than 20 FAO service providers were categorized as Leaders, bagged by known service providers like IBM and Genpact, as well as Capgemini, Infosys BPO, and HP. The Major Contenders are TCS, Wipro, WNS, and ACS-Xerox.

Others providers ranked in this category are Cognizant, EXL Services-OPI, iGate-Patni, Intelenet, Steria, Sutherland Global Services, and Vengroff Williams & Associates. Meanwhile, the Emerging Players are Aditya Birla Minacs, HCL, and KPIT Cummins Infosystems.

Last year, Accenture, Genpact, IBM, TCS, and WNS were hailed as 2010 FAO Market Star Performers, and were recently examined by the Everest Group. These were the fastest year-on-year developing companies, according to the report.

Saurabh Gupta, vice president for Research said, �Now that buyers have snapped out of the recessionary lull in spending, competitive intensity is driving service providers to innovate and push the boundaries of traditional FAO solutions to capture market share. In response, service providers are investing in technology, maturity models, new markets, and differentiated offerings to deliver greater value in the market.�

Leading FAO providers are now offering flexible products and services to meet the demands of the market, which accounts for their growth, according to the report. Service vendors are also targeting diverse market sectors like India and the Middle East.

Source:
http://eon.businesswire.com/

Gartner: Indian IT Service Providers Grow by 19%

Tue, 17 May 2011 00:00:00 -0800

Research firm Gartner recently released information about the 19.9 percent growth of the ten leading IT providers in India, with a 5.8 increase in IT service revenues. Five IT firms, namely: TCS, Infosys, Wipro, Cognizant, and HCL took the lead in the list.

TCS, ranked 24th in the global IT services list in 2009, moved up three spots to 21st. The company is said to be constantly reformulating strategies and improving their Business Process Outsourcing (BPO) portfolio.

Chief executive of TCS, N Chandrasekaran, said in an interview that various strategies and organizational structure help their company grow and yield a stable future for their organization.

The company Cognizant, which ranked 34th globally, had the strongest revenue growth for 2010, even though the company's revenues have dropped 10.2 percent.

In the case of Infosys, Gartner stated that the company's high-value services faced the hypercompetitive market and aggressive selling tactics of the competition, and as they stick to their business stand of not �compromising with profitability�, the company had lost some of its business to the competition. Infosys is the 2nd largest IT services firm in India with 5.33 billion dollars in revenue.

Wipro, on the other hand, posted a 16.4 percent growth and is the third largest firm in India. HCL reported a 26.7 percent growth in 2010 and it ranked 48th in the world.

"Global IT service companies have a larger base and hence it is irrational to expect their growth rates to be similar to those reported by Indian IT service firms which are comparatively smaller in size. Moreover, Indian players have a great deal of mindshare among global clients who are looking at offshoring in a big way.", said Arup Roy, principal research analyst at Gartner, and added that companies should be able to adjust and change to keep up with the demands of the market.

Source:
http://www.siliconindia.com/

ManAcq Dept. Takes Part in 2nd Job Fest and Career Fair 2011

Mon, 16 May 2011 00:00:00 -0800

The Manpower Acquisition Department of MicroSourcing participated in the recently concluded 2nd Job Fest and Career Fair 2011. This event was held last May 9-10 at the Glorietta Activity Center in Makati City.

Numerous companies from the business process outsourcing sector and other industries took part in the event, offering various types of jobs including marketing, accounting, customer service, clerical work, retail, administrative, etc. Moreover, different career talks and activities were done during the event. Recruitment Specialist Dan Katipunan provided some job hunting tips to help applicants in looking for work that is suitable for their knowledge and skill set.

Joining different job fairs is one of the major initiatives of the department to attract fresh graduates and unemployed individuals to join the MicroSourcing workforce and increase company awareness. According to Mr. Katipunan, the department is planning to participate in other job fairs to find new talent needed by clients of the company.

Survey Says Data Centers Outsource to Deal with Capacity Issues

Fri, 13 May 2011 00:00:00 -0800

An increasing number of large companies are starting to outsource to the cloud due to a potential congestion of in-house data centers, and to avert additional construction costs.

The first ever data annual assessment from Uptime Institute shows that 36% of large companies which took part in the survey are likely to exhaust their data center storage within the coming months.

The survey also exhibited that companies boost their capacity through server consolidation and power and cooling equipment upgrades, though 29% have opted to move workload to the cloud. It's actually a new feat because according to Matt Stansberry, a research analyst from the Uptime Institute, large companies are known to have always kept IT operations in-house. He also said �This is a trend we've been seeing," referring to the occurrence that more companies are now outsourcing IT operations.

According to a different study commissioned by Digital Realty Trust, a company that builds and operates data centers for third parties, 60% of the respondents who are looking to expand data center capacities in 2011 opted to lease space from a third party rather than construct their own.

Michael Foust, Digital Realty's CEO, said "Increasingly, enterprises appear to be favoring the lease model, as fewer companies are choosing to go it alone on these capital-intensive projects.�

A total of 525 large data center operators participated in Uptime's assessment process last March and April, and included "typically conservative organizations" like banks, insurance companies, collocation providers, and government agencies. On the other hand, Digital Realty's study had 300 IT executives directly involved in data center decision-making at large corporations in North America.

Source:
http://www.computerworld.com/

IAOP Names Leading International Outsourcing Providers, Advisors

Tue, 10 May 2011 00:00:00 -0800

The International Association of Outsourcing Professionals (IAOP) recently released the �Global Outsourcing Top 100� list for 2011.

Majority of the top 10 leading companies are based in the United States. These are: Accenture, which has been awarded the top spot for four consecutive years; Convergys, which came in at 5th place; CB Richard Ellis at 6th; CSC at 7th; 8th place was bagged by NCR; and Johnson Controls at the 10th spot. Alsbridge, on the other hand, was awarded as the top advisor.

The remaining spots were given to ISS, Denmark at 2nd place, Sodexo, France at 3rd, Infosys Technologies, India at 4th, and Wipro Technologies took the 9th spot.

The lists prove that the outsourcing industry remains strong, even with the economic depression with a 10 percent growth in revenue, and 4.5 percent increase in employment. In addition to that, it shows how flexible the outsourcing industry is, with its various sectors such as IT, HR, and R&D (among others), and worldwide operations and job provisions.

The ranking is based on how customers grade the service providers and advisors. Some of the factors are weighted average of size and growth rate, customer references, demonstrated competencies, and management capabilities.

The leader of the judge's panel and IAOP Chairman Michael Corbett said "These firms on the Global Outsourcing 100 are today's leaders and tomorrow's rising stars. The applicants companies went through a rigorous process that will help them better understand what customers are looking for and present themselves in the best light to win business."

The up and coming companies based in Latin and South America were ranked 76th to 100th. These were also recognized under the Rising Stars category which gives customers an idea of which countries are feasible as future outsourcing destinations. The top 10 companies in the Rising Stars category are: (76) Intetics, U.S.; (77) Scicom, Malaysia; (78) Auriga, Russia; (79) CIeNET International, China; (80) Globant, Buenos Aires; (81) Xceed, Egypt; (82) Global eProcure, U.S.; (83) Synygy, U.S.; (84) Bleum, China; and (85) Grupo ASSA, Argentina.

Source:
http://www.stockhouse.com/

MicroSourcing Lets the Good Times Roll at Mardi Gras Company Outing

Mon, 9 May 2011 00:00:00 -0800

Donning bright-colored bead necklaces, MicroSourcing employees and members of the management team got together for the Mardi Gras-themed company outing at Momarco Resort in Tanay, Rizal last May 7.

The highlight of the event was obviously the Amazing Race to the Next Level where four teams needed to finish eight tasks designed to test teamwork and cooperation. The IT team (with Ms. Krissy Cabiling and Marshal Dan Katipunan) was the first to finish the race. They won Php8000 and gained the all-important bragging rights.

Aside from the race, two other contests made the event even more fun and exciting. In the eating contest, four employees were given a whole roasted chicken each and the fastest to eat all of it would be declared the winner. Web Developer Gerald Villacarlos from WGP rose to the occasion and got the award worth Php1000.

Meanwhile, PHP Programmer Dan Calpatura from the Creative Services Group (CSG) proved that he could hold his liquor. In the drinking contest, he was the fastest to finish gulping a liter of beer and four shots of vodka without throwing up. He also received Php1000.

EV Malupetiks Claims Championship Title at Basketball Tournament

Mon, 9 May 2011 00:00:00 -0800

EV Malupetiks ended the finals game against EV Street View at 78-68, and finally claimed the championship title at MicroSourcing's Sports fest 2011 - Basketball Tournament which concluded last April 27. Malupetiks received Php10000 while Street View got Php5000.

A total of eight teams (EV Warframes, WGP Lynx, WGP Ninja, MMP Trojans, EV Good Vibes, Management Microbyo, EV Street View, and EV Malupetiks) took part in the tournament which officially started last March 19.

EV Malupetiks: Team captain Jimross Dellomos, Ivan De Ramon, Ranier Jimenez, Marlon Macaraeg, Clark Espanol, Jeffrey Caducano, Adrian Lizardo, Wilbert Aban, Edwin Isip, Ferdie Serapio, Momo Moit, Marion Christopher Ma�alac, Paolo Cenina, Greggy Reyes, Ruben Tumacder Jr., Julius Inocencio

EV Street View: Team captain Alfie Pe�a, James Dela Cruz, Alvin Bornasal, Eduardo Aban Jr., Christian Lee Santos, Aaron Tolentino, Dindo Masong, Larry Masong, Wilson Aban, Michael Cruz, David Santos, Samuel Peralta, Ray San Diego, Roy Regis, Melvin Bendictos, Arnold Atanante, Alex Marable

BPO to Outpace IT Services

Fri, 6 May 2011 00:00:00 -0800

Outsourcing companies based in India are gobbling up other companies to widen their portfolio of services as they scale up their growth in the global marketplace, especially with rising competition from other outsourcing destinations such as the Philippines and China.

For example, Aegis Ltd. has spent up to USD 400 million in acquiring 18 companies for the past few years. Early this year, Genpact bought Headstrong for USD 550 million, while US-listed EXL Service Holdings Inc. announced on Tuesday their acquisition of Outsource Partners International for USD 91 million.

According to Gaurav Gupta, a managing partner at outsourcing consulting firm Everest Group, the fast growth of IT-related services in the outsourcing sector was only a short-term trend. "[Information-technology] services has bounced back strongly and is growing much faster than BPO. In the long-term, however, especially given that the [infotech] services market is very well penetrated, it is BPO which will outpace growth."

EXL Service president and CEO Rohit Kapoor agrees with Gupta. "A data point that we have considered suggests that worldwide IT outsourcing spend is growing at 4% while BPO is growing or will grow at 6-8%," he explained. "Look at the actual IT spend of companies. That is growing at only around 2%, reflecting their actual growth."

"[BPO] is a much larger market and it is not that well-penetrated, so the long-term road ahead is clear," Kapoor concluded.

Source:

http://online.wsj.com

IT Takes the Lead in UK Outsourcing Industry

Wed, 4 May 2011 00:00:00 -0800

According to the 2009 data from the Oxford Economics research, commissioned by the Business Services Association, IT and data-related services got the top spot in the list of most outsourced business processes. The IT outsourcing sector has contributed 20 percent or �41.7 billion to the outsourcing industry's �207 billion total revenue.

Much of the outsourcing industry's revenue came from the private sector, with revenues amounting to �125 billion (60 percent). The public sector, on the other hand, contributed a modest �82 billion (40 percent). When it comes to IT outsourcing, the private sector contributed �35 billion while the public sector posted just �6.7 billion.

Richard Holway, an analyst from TechMarketView, shared in his blog, �It shows how important outsourcing is to the UK economy. Indeed, it is far more advanced here than in any other European country.�

Also, Bindi Bhullar, director of global IT services provider and outsourcer HCL Technologies, added: �Until now, there has been a reluctance to openly discuss the core benefits outsourcing brings to the UK economy. It is great to finally see credible research highlighting the significance of IT and IT-related BPO (Business Process Outsourcing) into context. This report shows how IT outsourcing has fully developed into a mature market.�

Source:
http://www.computerworlduk.com/

BSP Survey Reports Strong Outsourcing Sales Growth

Fri, 29 Apr 2011 00:00:00 -0800

In the midst of a global economic slowdown, the Philippine outsourcing industry was able to maintain its steady pace of growth, the country's central bank reported yesterday.

The Bangko Sentral ng Pilipinas (Central Bank of the Philippines) presented the results of the 2009 Survey of Information Technology-Business Process Outsourcing (IT-BPO) Services, which surveyed 736 companies involved with the outsourcing industry's subsectors of contact centers, transcription, animation, software development, and �other BPOs.�

Total revenues in 2009 rose to USD 8.3 billion, up by 30.6% from USD 6.3 billion earned in 2008. All IT-BPO subsectors earned double-digit growth in revenues, according to the BSP. Voice-based services made up half of industry earnings, growing with an annual rate of 48.2% to post USD 4.207 billion in revenues. Software development sales increased by 18.4% to earn USD 1.672 billion, while transcription sales posted the highest growth at 66.8% to earn USD 57 million.

According to the BSP report, the US stays on top of the local outsourcing industry's clients, followed by Japan, Europe, Australia and New Zealand. The total workforce employed by the industry grew by 25.3% for a total of 444,811 workers in 2009, the BSP report showed.

Source:
http://www.bworldonline.com

CSG Hosts Paint your Eggs Contest

Tue, 26 Apr 2011 00:00:00 -0800

As part of the tradition of the Easter celebration, the Creative Services Group (CSG) of MicroSourcing hosted an on-the-spot Paint your Eggs contest yesterday.

CSG members and some employees from the Manpower Acquisition Department were given a chicken egg each and a set of colored pens, sponsored by CSG Manager Mikaela Arce. A total of 11 participants put their own creativity and resourcefulness in painting and designing their Easter eggs.

After much deliberation, the judges decided that the Easter egg design of Flash Designer Joanne Mina was the most creative. She received a Php500 cash prize.

PHP Developer Ruel Mendoza's Masked Rider Black egg entry and ASP Programmer Carole Monteloyola's bee-inspired Easter egg were named 2nd and 3rd runner-up, respectively.

CanCham, BPAP Name Leading Companies in the PH BPO Industry

Mon, 25 Apr 2011 00:00:00 -0800

The Business Processing Association of the Philippines (BPAP) and Canadian Chamber of Commerce (CanCham) awarded the best BPO companies in the Philippines in a ceremony held at the Dusit Thani Hotel.

Filipino-owned SPi Global Solutions bagged the BPO Company of the Year award. SPi Global Solutions is a locally-owned and led outsourcing vendor. Global Solutions President Maulik Parekh proudly stated that while majority of BPO companies in the Philippines are run by foreigners, most of the management members in SPi answer to Filipino executives and bosses.

Other awards were given to: Teleperformance (BPO Employer of the Year and a finalist in three categories), IBM (Fastest Growing BPO of the Year Award and a finalist in two categories), Hewlett-Packard (Non-Voice Excellence of the Year award), and the ICT Individual Contributor of the year award was given to Genpact's country manager Danilo Sebastian Reyes.

�Over the last five years, we have seen a tremendous focus on and passion for excellence in the Philippine BPO industry. Today, the top awards are no longer reserved for the biggest companies with global resources. Very quickly, we are seeing new and smaller companies demonstrating efficiencies and effectiveness that put them at par with the world's best,� said Richard Mills, chairman of the International ICT Awards.

On the other hand, a special presentation was given to outgoing BPAP CEO Oscar Sa�ez who said �You have made the task easier because of your own desire to promote our country as the world's BPO destination of choice and I will always remember you in my heart of hearts.� He also thanked ICT partners for their cooperation and support throughout the years.

Source:
http://www.philstar.com

Favorable Global BPO Opportunities from the Financial Services Sector

Tue, 19 Apr 2011 00:00:00 -0800

Everest Group, an international consulting and research firm, shared data about the potential of the financial services sector in business process outsourcing (BPO) to expand. Currently, the said sector is valued at US$16-18 billion, 40 percent of the entire US$40 billion global sourcing market. It is expected to grow 15 times its current market size.

The report entitled �Role of Global Sourcing in Financial Services BPO� tackles topics such as what made the financial service BPO what it is today and how fast it got there. It also includes analysis of data from clients and service providers, strategies done by financial services companies, as well as factors that affect the demand in various financial sectors such as the banking sector and insurance BPO.

Research Vice-president Saurabh Gupta said, �In the current economic scenario where financial services companies are facing competitive pressures and are reconsidering their cost bases, BPO across industry-specific processes in banking, capital markets, and insurance is generating much interest. Our analysis finds the medium to long-term growth outlook to be significant and robust,� he added.

Rajesh Ranjan, research director and co-author of the report, said �Despite significant challenges, such as constraints in the United States associated with the Troubled Asset Relief Program (TARP) and new data protection measures in the European Union, the impact on global sourcing has been minimal,� and asserted, �Financial services firms and service providers have adapted and properly mitigated against new and emerging challenges.�

The participants in the research done by Everest Group were (strongest global sourcing capabilities): Banking BPO - Genpact, HP and TCS; Capital Markets BPO - Infosys BPO, TCS, and Wipro; Insurance BPO - Accenture, EXL Services, and WNS; and other Services - Capgemini, CSC, eClerx, HCL, Intelenet, Syntel and Xchanging.

Source:
http://www.businesswire.com/

Study Reveals Trends that Drive BPO Competition

Mon, 18 Apr 2011 00:00:00 -0800

A study done by an Information Services Group (ISG) company called TPI stated the major services that attract new clients and make existing ones renew contracts. The key factor in the shift of the trend in outsourcing was the rise of Cloud Computing technology last year. It resulted to tighter competition amongst BPO service providers as well as reduced values and shorter durations of contracts. This trend is predicted to continue all the way through the end of 2011.

Paul Reynolds, Chief Research Officer of TPI Momentum, said, �For service providers to increase pipelines and improve profitability in 2011, they will need an accurate reading of current client preferences and market trends, an appropriate strategy to respond, and disciplined execution in the face of strong competition.� �This report provides the information they need to understand the size and scope of opportunity in the global outsourcing market,� he added.

According to additional data collected by exclusive sources and TPI advisors from around the world, majority of the clients are predicted to embrace Cloud Computing and include Cloud-based services in contracts. This prompted service providers to reformulate services related to the said trend, and bolster their portfolios.

Other factors in the restructuring and change in strategic plans of BPO firms are shorter contracts and multisourcing. Proof of that was a large number of contracts that expired last year and over 500 more are expected to expire this 2011. In addition to that, clients who spend $50 million annually in outsourcing acquire the services of two or more BPO firms.

The TPI Momentum Market Trends and Insights 2010 Annual Report also includes data in IT and business process outsourcing like, geographic regions, vertical industries, client company sizes, service provider market share, etc., tips for services providers regarding multisourcing, as well as factors that affect Cloud Computing services.

Source:
http://www.prnewswire.com

PH BPO Industry Attracts Top Financial Firms

Thu, 14 Apr 2011 00:00:00 -0800

The Philippine business process outsourcing (BPO) sector is getting ready to deal with the global demands of multinational financial firms that have flocked to the country, says the Business Processing Association of the Philippines (BPAP), the country's private association of BPO service providers.

"Based on the 2010 report of Everest Consultancy Institute, the Philippines generated revenues of $5.7 billion in the call center or voice sector compared with India, which had only $5.58 billion revenues last year," says Martin Antonio Crisostomo, BPAP executive director for external affairs.

Crisostomo comments that the country's BPO companies are already providing services to global financial firms JP Morgan and Deutsche Bank. JP Morgan is currently employing 10,000 BPO workers from a pioneering staff of 200, the BPAP officer explains.

The exponential growth of the BPO industry in the country has even attracted competing Indian BPO firms, opines Crisostomo, citing Indian companies Tata Group and Gen Pact as examples of multinational, Indian-owned companies that have either transferred or started up operations here.

The BPAP officer says the association expects the non-voice sector of the BPO industry to improve revenues this year, especially in the animation and game development areas. "There is a film being made by DreamWorks animation and some portions of PlayStation 3 which are being done by Filipinos here," says Crisostomo.

At present, the Philippine BPO industry employs around 530,000 workers, according to the BPAP.

Source:
www.malaya.com.ph

India's BPO Industry Predicted to Grow 23.2 Percent

Wed, 13 Apr 2011 00:00:00 -0800

According to a study done by Gartner, a global IT research firm, the Indian BPO industry is projected to grow 23.2% in 2011 and will incessantly expand until 2014.

Gartner's research director T.J. Singh said "Changing demographics, increasing affluence and economic growth in Asia-Pacific continues to drive shared services and BPO adoption, especially in Australia, India, Southeast Asia and China," and added "Buyers continue to invest in services that deliver scalable and consistent services across their geographical presence."

The study also stated that India is one of the fastest growing BPO markets in Asia. Australia, on the other hand, is the second largest consumer of BPO services.

Some of the most rendered services in India's outsourcing industry are banking and financial services, communications, government (both local and federal), technology, and travel and transportation.

In recent years, some of the BPO service providers in India namely Omnia, Kenkei, Androemeda, Genpact, Magus, MphasiS, Intelenet Global Services, Tech Mahindra, Aegis, Spanco and HTMT, have been focusing on the international offshore market, but are now slowly transitioning and concentrating on the domestic market.

Source:
http://economictimes.indiatimes.com

PH BPO Sees Faster Growth Rate in the next 5 Years

Mon, 11 Apr 2011 00:00:00 -0800

With a 26 percent revenue growth rate in 2010, which translated to almost $9 billion, the Business Processing Association of the Philippines (BPAP) sees stronger growth, reaching 25 percent a year, for the industry. In the roadmap created for 2010-2016, it is estimated that the outsourcing industry of the country will reach a growth rate of 15 percent.

Last year, BPAP and associations reported that 525,000 individuals comprised the IT/BPO workforce, and $8.9 billion in revenues were generated. With a faster growth rate, BPAP Chairman Alfredo Ayala said the industry can post $25 billion in revenues by 2016 and employ 1.3 million direct jobs and 3.2 million indirect jobs. When it comes to the projected growth rate of 15 percent, the industry is capable of employing 900,000 direct jobs, 1.7 million jobs, and posting revenues reaching $20 billion.

The Philippines had already taken the lead in providing voice-based or call center services. This sector alone grew by more than 20 percent last year. On the other hand, the non-voice sector, which includes back office functions and knowledge process outsourcing (KPO), posted a 30 percent growth rate in 2010.

Source:
http://www.malaya.com.ph

PH BPO Sector Gets 26% Revenue Growth

Thu, 7 Apr 2011 00:00:00 -0800

The Philippine business process outsourcing (BPO) industry posted a year-on-year growth of 26%, earning $8.9 billion for 2010, the domestic industry association announced yesterday.

The Business Processing Association of the Philippines (BPAP) said the contact center sub-sector made the highest growth at 21%, generating $6.1 billion in earnings. The growth enabled the Philippines to overtake India in voice-based services. According to Benedict Hernandez, president of the Contact Center Association of the Philippines (CCAP), "The Philippines now leads the world in voice-based customer service."

Employment among BPO companies also increased by almost a quarter, for a total of 525,000 employees for 2010, according to BPAP records. "We achieved robust growth in all major sectors of the industry: voice-based BPO, non-voice business support and complex services, and information technology," announced BPAP chairman Alfredo Ayala.

BPAP said they expect an annual growth of 15% until 2016 � by that time the industry would involve two million jobs generating $20 billion in revenues. "But with greater collaboration from all stakeholders, including government and the academe, we have the potential to grow at 25% a year. This would create 1.3 million direct jobs, 3.2 million indirect jobs, and $25 billion in export revenues," Ayala opined.

Source:
http://www.abs-cbnnews.com

Everest Group Says HR Outsourcing will Grow 8-10% in 2011

Tue, 5 Apr 2011 00:00:00 -0800

This year, the multi-process Human Resources Outsourcing (MPHRO) will grow by 8-10 percent, mainly due to stronger economy and as contract activity bounces back. This is based on the Human Resources Outsourcing Annual Report 2011 by global services firm Everest Group.

Research Director Rajesh Ranjan said cost reduction is still the primary reason companies adopt human resources outsourcing, though technology access, keeping HR and business aligned, and managing compliance are becoming more crucial. Aside from the projected growth rate of the market, it is also expected that there will be increased adoption of MPHRO by industries like insurance and technology, as well as mid-market companies.

Report also reveals that North America is the no. 1 adopter while Europe accounts for 33 percent of MPHRO deals. On the global scale, India is the leading offshoring destination. Also, payroll processing and benefits are the most common functions included in human resources outsourcing deals.

Source:
http://insurancenewsnet.com

Organizers Ready for Top PH Outsourcing Event

Thu, 31 Mar 2011 00:00:00 -0800

The International Outsourcing Summit, the Philippines' top outsourcing event, is gearing up for its third year, to be held later this year from October 11 to 12 at Sofitel Philippine Plaza in Pasay City.

The industry group Business Processing Association of the Philippines (BPAP) has renewed their contract with events organizing firm TeamAsia. This year's summit will revolve around the theme �Global Market Leaders Addressing Global Issues.�

�The IT-BPO Road Map 2011-2016 identified key opportunities and risks for the Philippines to take advantage of the growth in the IT-BPO industry. Likewise, existing and emerging locators are on the road to successfully replicating the Philippines' success, making competition in the industry fiercer, not only in terms of costs, but more importantly, in terms of labor provision and talent management, technology and service innovation, and specialization,� says BPAP senior executive director Gillian Joyce G. Virata.

�This year's Summit reviews the Road Map and its implications on the Philippines' position as the new leader in voice � and how it affects the even faster-growing non-voice segment for all locators,� Virata explains.

According to BPAP executive director for industry affairs Raymond Lacdao, the summit will focus on innovation and value creation. �The industry is moving up the value chain rapidly, and clients expect services providers to be their partners in enhancing value for their customers.�

Lacdao says that for this year, they expect to see around 400 executives from the IT-BPO and shared services sectors of 20 countries to participate in the summit's exhibits, gala dinners, and site tours.

Source:
http://newsbytes.ph

Frost & Sullivan Predicts Dev't for Russian Call Centre Outsourcing

Wed, 30 Mar 2011 00:00:00 -0800

Because of the increased demand for broadband services in Russia, the contact centre outsourcing market focused more on customer care services. This strategy became a factor for the said sector to recover, and develop over the past couple of years.

According to Iwona Petruczynik, a Research Analyst for Frost & Sullivan ICT group, �There is an increasing trend toward the use and deployment of interactive voice response (IVR) and automated service technologies," and adds �It has proven to be a very effective way to reduce cost and enable outsourcing companies to provide more services with the same number of agents.�

On the other hand, majority of consumers are still not comfortable with the new technologies that are being used for customer support operations. But, according to the observations of Frost & Sullivan, IVR is becoming more and more recognized by technology-literate consumers.

The local Russian call centre (customer support) market is also worried that knowledgeable and qualified employees will be scarce in the upcoming years. Petruczynik brought light to the situation. "Market participants have concerns that there will not be enough young employees to fill in-house call centres and a number of companies will be forced to outsource their services. However, this situation may create a conundrum, as the lack of agent talent could result in in-house centres competing with outsourcers for employees."

Another concern is the deficiency or lack of tools needed for the contact centre industry in Russia to grow substantially. The Russian Government strategized and declared a new policy that supports funding and developing contact centre operation sites in Novosibirsk, Nizhny Novgorod, St. Petersburg, and Dubna.

Now, BPO companies in Russia are working on improving their infrastructure for multimedia contacts, so that they will be able to accommodate the high demands in customer support. But, even with the new technological advancements, �human� and voice-based services still lead the outsourcing industry.

Source:
http://www.marketwire.com/

Microbyo Wins at MicroSourcing's 7-a-side Football Cup 2011

Mon, 28 Mar 2011 00:00:00 -0800

The Microbyo (Management and EV) team claimed victory in the recently concluded 7-a-side Football Cup held last March 26 at the Marikina Sports Park football field. This was part of MicroSourcing's Sports Fest for 2011. The winning team received the award worth Php10,000.

Four teams took part in the football cup. The event kicked off with MMP United defeating MMP Ninja at 4-0. In the second game, the combined efforts of players from Management and EV successfully prevented the MMP Trojans from making a goal, and finished the game with a score of 7-0. They also won against MMP United at 4-1. Meanwhile, MMP Ninja redeemed themselves as they beat the Trojans, 4-0.

MMP United turned out to be a strong contender as they defeated the Trojans, but the former did not have enough members to play. They've decided to forfeit the game so in the end, Microbyo came out undefeated, with an overall score of 11.

Microbyo: Team captain Christian Malubag, Mia Espinosa, Chino Perilla, Ryan Del Mendo, Carole Monteloyola, Elvis Garcia, Stephen Pe�a, Dan Katipunan, Adam Jamis, Chris Torio, Abner Salvador, Napoleon Dela Cruz, Melden Benedictos

MMP United: Team captain Dmitri Kurjanov, John Edmonds, Arvin Brian Brotarlo, Michael Rebueno, Mary Anne Castello, Bhav Karnani, Benson Go, Diane Nicdao, Audine Tabangay

MMP Ninja: Team captain Mark Bandillo, Lou Anthony Garcia, Custer Frianeza, Serafin Encia Jr, Paulo Xavier Cabantog, Eliseo Diokno Jr, Peter Indiola, Julius Caamic, Romeo Lao To, Daryll Jann Bumanlag, Ryan Causon, John Ray Garcia, Gerald Villacarlos, Jan Ezra Undag

MMP Trojans: Team captain Peter van Yren, Mark Gubagaras, Lucille de la Cruz, Consuelo Lucero, Alyssa Pabellano, Joannah Aguas, Moses Linsangan, Paolo Jonathan A�ana, Roan Isturis, Michael Aguila, Maricel Salao

Subic Free Port Steps Up Development

Fri, 25 Mar 2011 00:00:00 -0800

The Subic Bay Metropolitan Authority (SBMA), a former US military base in the northern Philippines, is bent on becoming the region's hub for the services and logistics sectors as they accelerate plans on developing priority investment zones in the sprawling free port complex.

�We are very proud of the fact that we have attracted cumulative investments worth more than $7.16 billion and almost 1,500 investment projects as of 2010. Unfortunately, these investments won't bring any economic benefit to us if they do not materialize for lack of space,� explains Armand Arreza, SBMA administrator.

Among the zones to be redeveloped is the Subic Gateway Park, which already hosts several business process outsourcing (BPO) companies. Arreza comments that the Subic Gateway Park is �emerging to be primarily our business process outsourcing (BPO) center within the next few years.'

Arreza says a 16-hectare area adjacent to the Subic Gateway Park will be developed into the new Gateway Business District, which will offer additional office space to the country's expanding BPO industry.

Source:
http://www.mb.com.ph

PH Congress Oks Data Privacy Bill

Thu, 24 Mar 2011 00:00:00 -0800

The Philippine Congress is set to enact House Bill 4115, or the Data Privacy Act of 2011, as the bill passed its third and final reading this week. The country's booming business process outsourcing (BPO) industry is expected to benefit from the measure, which aims to protect and regulate recording of personal data in information and communication systems in the public and private sectors.

"The bill will also contribute to the promotion and development of electronic commerce in the Philippines and protect the consumers. It will also promote consumer trust and user confidence in electronic commerce through the issuance of clear, transparent, predictable, and enforceable rules to clarify and ensure the protection of personal data in information and communications systems in both the private sector and the government sector," explains Rep. Roman Romulo, author of the bill.

Bill co-author Rep. Susan Yap explained that the state needed to protect the fundamental human right to privacy of communication. "The State recognizes the vital role of information and communications technology in nation building and its inherent obligation to ensure that personal information in information and communications systems in the government and the private sector are secure and protected," the legislator said.

Once signed into law, the bill's provisions on guaranteed security for personal data will be enforced by the Commission on Information and Communications Technology (CICT). Among the responsibilities outlined for the CICT include the selection and recommendation of the most secure technologies available to protect government databases from cyber attacks. The bill also protects the CICT from criminal or civil suits that may happen in the course of the commission's protection of personal data.

The bill prescribes that data controllers and processors must use techniques in protecting personal data against accidental or illegal misuse, destruction, disclosure, alteration, or even illegal processing. At the same time, the bill makes it illegal to share personal data with third parties. Violators will be fined by as much as PHP5 million (USD 115,000), the bill prescribes.

The Business Processing Association of the Philippines (BPAP) had earlier lauded the data privacy bill when it passed second reading last month. �The approval of the Data Privacy Act on second reading sends the right signals not only to existing foreign locators in the business process outsourcing industry but also to the many global players which are just deciding whether to invest in our country and participate in the IT-BPO space,� said Martin Crisostomo, BPAP executive director for external affairs.

A counterpart bill was filed in August of last year at the Philippine Senate by Sen. Miriam Defensor Santiago.

Source:

http://www.pia.gov.ph

Everest Group Projects 15-20% Growth Rate in F&A Outsourcing

Wed, 23 Mar 2011 00:00:00 -0800

Global services advisory and research firm Everest Group says the Finance & Accounting Outsourcing (FAO) will grow by 15-20 percent this year, as total contract values (TCV) of new deals and contract extensions reach an all-time high. This translates to US$4 billion in annual contract value (ACV) for this year.

�Last year saw a strong rebound in multi-process FAO adoption, which we expect to continue this year as buyers look to reduce costs and optimize processes,� said Saurabh Gupta, vice president, Research. He added, however, that clients still opt for a more phased approach than �big-bang solutions�.

Everest report also states that 70-75 percent of total FAO spending in 2010 can be attributed to strong adoption of FAO across different industries including financial services, manufacturing, travel and logistics, and retail. More than half of total FAO spending last year came from the US, but Asia-Pacific posted the fastest growth rate. The report also shows that accounts payable and receivable, as well as general ledger are the most outsourced business processes.

Source:
http://www.businesswire.com

EV Employee Wins Top Prize in New Year, New Gear Referral Program

Tue, 22 Mar 2011 00:00:00 -0800

Samuel Peralta from EV bagged the grand prize in the recently concluded New Year, New Gear Special Employee Referral Program by the Manpower Acquisition Department. Mr. Peralta won a brand new 32-inch LCD TV and a DVD Home Entertainment System.

The New Year, New Gear, which ran from December 24 to February 28, is a special employee referral program that aims to encourage MicroSourcing employees to refer their friends and win exciting prizes.

There were three ways to win or get incentives: an instant cash reward wherein the employee automatically got Php300 cash for every walk-in referral who got hired. The employee also had the option to either claim the cash incentive or accumulate the rewards for points that will enable the employee to choose a prize from the gadget catalog. All employees with successful referrals automatically got a raffle stub per referral for the grand prize reward.

The other employees who got consolation prizes are from the EV project:

LG DVD Player:

Anthony Se�a
Arvin San Juan

USB Flash Drive:

Bob Santillan
Marlon Macaraeg
Aaron Tolentino
Lionel Ambagan
Princeton John Sinag
Kareem Liwag
Michael Cruz
Julie Ann Garcia

According to Back Office Specialist Jenna Arnaiz, the department was able to hire a total of 189 employees (at the time of writing), and 1101 referrals were received through this program.

BPAP CEO Says Outsourcing Industry will grow 20% per Year

Mon, 21 Mar 2011 00:00:00 -0800

According to CEO Oscar Sa�ez of the Business Processing Association of the Philippines (BPAP), an annual growth rate of 20 percent will be seen in the country's outsourcing industry in the next five years. If this happens, business process outsourcing (BPO) revenues will reach US$25 billion by 2016. Last year, the industry generated approximately $9 billion in revenues.

Sa�ez is also optimistic about the non-voice sector of the Philippines, saying that it will grow five times in size, as stated in the Roadmap 2016.

The country has long been known as an ideal destination for voice-based or call center work, and it has already dethroned India in that aspect. The industry is now offering non-voice services in the fields of media, health care, finance, accounting, and supply chain management. The Philippines may be considered as the no. 1 location for outsourced call center processes, but overall, India remains the top destination when it comes to outsourcing and offshoring.

Source:
http://www.abs-cbnnews.com

PH to Ink Free Trade Deal with EU

Fri, 18 Mar 2011 00:00:00 -0800

The Philippine government expects to improve and enhance business relationships with European Union countries, especially with the United Kingdom (UK), via a proposed EU-Philippines free trade agreement, reports Adrian S. Cristobal Jr., Philippine trade and industry undersecretary for international trade group.

�Our English-speaking business environment, multicultural sensitivities, and strategic location in Asia are attractive for British companies seeking to expand its business in Southeast Asia,� the official says.

The Philippines is already known in the UK as a viable offshoring destination for outsourced work, especially since the country's BPO industry has bagged the Offshoring Destination of the Year Award for the years 2007, 2009, and 2010. The awards were given by UK-based National Outsourcing Association (NOA).

�As we work towards the EU-Philippines FTA, we hope that more business and investment opportunities will open up for both countries,� comments Cristobal.

The Philippines already plays host to some of the UK's biggest companies � HSBC, BP, LogicaCMG, and Shell.

Source:
http://www.mb.com.ph

PH to Join Indo-ASEAN FTA

Thu, 17 Mar 2011 00:00:00 -0800

The Philippines is about to ratify this month the free trade agreement (FTA) between India and the Association of South East Asian Nations (ASEAN). The FTA, signed in 2009, will lift the tariff on 4,000 items � in effect making the Indo-ASEAN FTA one of the world's biggest free trade areas.

According to Gregory Domingo, the country's trade and industry secretary, �We need to do it when the Congress is not in session. All internal processes are complete, and only the President has to sign it. I am hopeful that it will happen by the end of this month.� The Philippine Congress will be adjourning their session this March 25.

Negotiations are also ongoing for a parallel agreement on services and investment. At present, trade in the services sector between India and ASEAN countries (Cambodia, Brunei, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) stands at $50.34 billion. An FTA could boost this trade to around $70 billion by next year.

Indian commerce and industry Minister Anand Sharma said they expect an agreement on services and investments by the end of the year, expanding the current FTA to a Comprehensive Economic Partnership Agreement. Domingo, on the other hand, said there were still issues. �We are going to try and complete negotiations for the services and investment agreement, and we are already trying to resolve the issues. There is a possibility (of meeting the timeline) but it may be difficult.�

The Philippines, at first, was wary of the domestic effects of a services agreement. However, Domingo explained that better bilateral relations, especially in the services sector, could improve existing economic relationships, considering that major Indian IT companies, such as Tata Consultancy Services, Infosys, Wipro, and Aditya Birla Minacs, have already set up offices in the country.

�Our linkage with India hasn't been that strong and, across the board, trade and investment is under-represented. We need to purse this issue more vigorously. But in the BPO and call-centre sectors, a lot of large Indian players are in the Philippines. This is the first step and we are starting to build it up from there,� Domingo explained.

Source:
http://www.business-standard.com

PLDT: Japan Quake did not Disrupt PH BPO Operations

Wed, 16 Mar 2011 00:00:00 -0800

Calls from the Philippines to the United States were not affected by the recent and devastating 8.9- magnitude earthquake in Japan, according to a statement by the Philippines' largest telecommunications firm - Philippine Long Distance Telephone Co. (PLDT).

There were minimal telecommunication problems across Asia after the earthquake, but PLDT was able to re-route their cable system called Asia-America Gateway (AAG) immediately and it is up and running 100% ever since. The AAG is a multimillion dollar project made up of fiber optic cables that go thousands of kilometers - connecting numerous countries in Asia (including the Philippines) to Guam, Hawaii, and the US West Coast.

�To ensure business continuity and vital resiliency particularly for our BPO and Call Center clients who are US-centric, the performance of AAG affirms the immense value of PLDT's $50M investment in this critical cable system to ensure business continuity especially for our Enterprise customers,� said Jovy Hernandez, PLDT VP and Head of Corporate Business Group and SMART Enterprise Sales & Marketing. �We are deeply saddened by this tragedy, especially as PLDT has deep Japanese affiliation due to its relationship with NTT.�

Source:
http://www.abs-cbnnews.com

Survey Reveals 2011 Major Trends in Dutch IT Outsourcing

Mon, 14 Mar 2011 00:00:00 -0800

Last February 2011, a UK-based nearshore IT outsourcing (ITO) research and advisory company named IT Sourcing Europe conducted an online survey and collected data from approximately 469 Dutch companies from different industries and proportions. The survey displayed that less than half of the total number of participants outsource a small number of IT-related functions and software development nearshore and the larger percentile (55%) conducted the said processes in-house.

This indicates that the Dutch ITO sector has matured and developed this 2011(from 2010), because more and more Dutch companies have now considered outsourcing as a viable platform for software development.

Here are some of the evidences of the said development:

- 10% increase in �0-49K projects
- 4% drop in �50-199K projects
- 2 % drop in �200-499K projects
- 5% drop in �500+K projects

The study also showed that from 2010-2011, Dutch companies have increased their offshore/nearshore - fixed priced projects and operations for software development by 34%. Other services that are starting to be outsourced rigorously are mobile computing, casual games-development, social media, 3D animation, and augmented reality which showed a 32% increase from 2010.

Most of the companies who have opted to outsource these services are small and start-up companies. These would mean that they are more in control of the management processes of the projects and they are trying their very best to foresee ITO agenda even if it is impossible for this kind of setup.

All in all, a 20.4% increase from last year is a strong indication that Dutch ITO buyers are satisfied with outsourcing even if there was a 5.1% increase in unhappy ITO buyers.

Source:
http://pr-usa.net

Aussie Firms Prefer PH for Offshore Work

Fri, 11 Mar 2011 00:00:00 -0800

The Philippines is the top choice of Australian companies for outsourced work, reveals a study released today.

According to the Australian Contact Centre Outsourcing Market Study 2011, although 81% of all Australian outsourcing was still done domestically, 19% of all outsourced work is now being shifted offshore to the Philippines. The study, released by Callcentres.net with the help of Aegis Australia, divided outsourcing into five categories - customer interaction (contact centers), back office processing, IT, finance, and HR.

In all categories, the study showed that the Philippines was on top - 20% of customer interaction, 33% of back office processing, 18% of IT work, and 25% of finance.

�As Australian businesses continue to have a strong focus on reducing operational costs there is continued growth in the outsourcing of business and customer related processes. There will also be an increase in the amount of work that will go off-shore. Service work will continue to be outsourced and off-shored to where it is most economically comparatively advantageous to perform. We call this the Services Shift,� says Dr. Catriona Wallace, director of callcentres.net. �Although only 1 in 5 Australian and New Zealand consumers state that they are happy to speak to an off-shored customer service representative, they may soon have to get used to it.�

According to Denice Pitt, Aegis Australia president, �This trend to the Philippines is consistent from what we are seeing in the market. It is becoming prohibitively expensive for companies to keep all operations in-house because it requires agility, scalability, training and technology that could be better employed elsewhere.�

�The ability to provide blended offshore and onshore solutions such as those in the Philippines enables companies to create efficient outsource programs whilst reducing their costs. By leveraging our global resources we are able to offer our clients complex, yet flexible, tailored outsourcing solutions that deliver scope and high value,� the Aegis executive adds.

Source:
http://www.itwire.com

Survey Says CIOs Optimistic about 2011 Growth

Thu, 10 Mar 2011 00:00:00 -0800

A new survey among chief information officers (CIOs) in the US insurance market released today reveals that US CIOs are more optimistic about growth this year, with most executives relying on targeted ITO (information technology outsourcing) and BPO (business process outsourcing) to sustain growth in their companies.

Celent, a research and consulting firm with a focus on global financial services, released its 8th annual US Insurance CIO Survey, covering 32 executives from the property and casualty sectors of the insurance market.

�[The industry] is cruising along and making some progress,� explains Celent consultant Donald Light, author of the report. Among the report's findings are:

-- SOA (service-oriented architecture) and web services have become industry standards;
-- Specialized reliance on ITO and BPO for infrastructure development and maintenance;
-- Combination of core functions from those supplied internally and from vendors; and
-- Emergence of SaaS (software-as-a-service) and social networking.

Light warns, though, that the report does not offer a complete overview of the insurance industry, but rather a confirmation of what their consultancy firm has gathered from their clients.

Source:
http://www.propertycasualty360.com

HP Launches IT Solutions to Address Problems of PH Firms

Wed, 9 Mar 2011 00:00:00 -0800

IT products and services company Hewlett-Packard (HP) recently introduced its new IT storage solutions designed to solve data problems of companies in the Philippines, especially those in the telecommunications and banking industries, as well as business process outsourcing (BPO).

According to Hans Bayaborda, country manager of HP Philippines' Enterprise Servers, Storage, and Networking (ESSN), the StoreOnce D2D434 BackupSystem and P4800 SAN Solution with SAM/IQ 9.0 Software are HP's answers to the problems brought about by the rapidly increasing volume of data.

Following the �converged infrastructure� concept, these storage solutions also aim to streamline business processes and make them more efficient. "Companies today need an infrastructure that delivers efficiency and simplicity of operations without having to duplicate data that wastes storage capacity," Bayaborda said.

Source:
http://www.philstar.com

PPPs Needed by PH BPO to Stay Competitive

Tue, 8 Mar 2011 00:00:00 -0800

Creating Public Private Partnerships (PPPs) would help the business process outsourcing (BPO) industry to stay competitive and continue to flourish. That is why Senator Edgardo Angara urged the Philippine government to speed up the process of improving ties with the BPO industry and academe to maintain its competitiveness as an ideal outsourcing destination.

Angara mentioned a recent World Bank report saying that the BPO industry of the Philippines will continue to grow, capitalizing on the improved skill level of available manpower.

�The study found that the industry can grow from $9 billion in annual revenues and approximately 500,000 direct employees today to $20 billion and 900,000 employees by 2016 if current conditions are sustained and with a lot of hard work,� said Oscar Sa�ez, CEO of the Business Processing Association of the Philippines (BPAP). However, he noted that the country can see a faster growth rate if the Private Public Partnership with the government will be strengthened. PPPs will pave the way for coordination between the industry and the academe in the goal of improving the number and quality of human resources.

Sa�ez also said that the industry is tapping other fields that require specialized skills. Angara said that if job requirements in areas such as IT, medical, and legal will not be met by highly skilled workers, the industry may �lose its momentum� and fail to establish a strong non-voice or knowledge-based sector.

Source:
http://newsbytes.ph

Indian IT-BPO Firm Reports Hike Despite Weak 2011 Q1

Fri, 4 Mar 2011 00:00:00 -0800

Indian IT and BPO firm MphasiS finally published their verticals and average realization rates after pressure from investors and analysts. The company had stopped publication of these figures, stating that this was due to changes to its organizational structure.

MphasiS had been criticized earlier due to its lack of proper disclosure and transparency about the work they do for HP, which owns 60% stake in the firm. The Indian company earns 69% revenue from HP. Concerns over corporate governance and a weak 2011 quarter ending led to the Indian stock exchange's biggest fall last February 25.

The firm reported a 47.2 percent hike in their ITO services, while their BPO services fell by 17.4 percent.

Source:
http://timesofindia.indiatimes.com/

PH BPO Driving Office Leasing Growth

Thu, 3 Mar 2011 00:00:00 -0800

The country's business process outsourcing (BPO) sector is driving growth in the local office leasing market with an estimated average yearly demand for office space of 250,000 square meters.

The growth is expanding to other cities, aside from the large business districts of the metropolis, says Lindsay Orr, chief operating officer of real estate leasing firm JLLL.

�With the growth of the BPO sector, office developments are certain to improve in quality, thanks to strong demand and healthy competition. BPOs are looking for locations that can offer them more: Retail amenities for employees and extras such as security access card and modern intrusion detection systems,� explains Orr.

Among the benefits that attract prospective employees to a BPO company is its strategic location, especially to public transportation, says Philip Ano�uevo, JLLL associate director.

With the continued expansion of the country's BPO sector, real estate developers have to offer more than the standard fare of telecom infrastructure and emergency gensets.

Source:
http://www.mb.com.ph

Indian IT-BPO �Disappointed� with Union Budget

Wed, 2 Mar 2011 00:00:00 -0800

The IT-BPO industry of India was disappointed with the imposition of the 18.5% Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) and stoppage of tax breaks in the Software Technology Parks of India (STPI), as mentioned by Finance Minister Pranab Mukherjee in his budget speech. These are both negative news for the $76 billion industry of the country, according to IT software industry body National Association of Software and Services Companies (Nasscom).

Small and medium-sized IT firms in STPIs are allowed to have a 10-year tax holiday with the goal of encouraging export-oriented economic growth.

Keshav R. Murugesh, Group CEO of WNS Global Services said government support is crucial to keep the current position of India in the global outsourcing market. He added that other outsourcing destinations such as China and the Philippines can pose a threat to India's BPO advantage as they enjoy support from the government in terms of tax benefits.

Source:
http://www.hindustantimes.com

Survey Says Cloud-based Outsourcing is the Next Big Thing

Tue, 1 Mar 2011 00:00:00 -0800

Cloud computing will take center stage in the world of outsourcing. In a survey conducted by the International Association of Outsourcing Professionals (IAOP), about two-thirds of the outsourcing companies said they intend to pursue cloud computing this year to improve management of customer relations and business operations.

According to Michael Corbett, chairman of IAOP, cloud-based outsourcing is likely to be one of the biggest changes in the industry. �Speed and flexibility are the biggest benefit customers see in these solutions.�

From more than 110,000 IAOP members, 62 percent indicated that they outsource to support their business opportunities in the future, while 80 percent said they plan to have new outsourcing ventures. Survey participants are also optimistic about the growth of this business solution.

Source:
http://www.mis-asia.com

PH BPO Revenues to Reach $25bn in 2016

Mon, 28 Feb 2011 00:00:00 -0800

The business process outsourcing (BPO) industry in the Philippines is likely to grow and post $25 billion in revenues in 2016, according to Maulik Parekh, CEO of BPO firm Spi. This forecast is almost three times higher than the industry's revenues of $9 billion every year.

The Philippines is currently battling it out with countries such as Vietnam and Malaysia. Parekh said higher value services will be needed to beat the competition. He added that from 43 percent last year, non-voice services will grow by 58 percent.

Meanwhile, the Commission on Information and Communications Technology (CICT) is optimistic about the country's BPO industry, even though there is a proposed US bill that will impose taxes on calls received from offshore call centers. In fact, CICT predicts the industry will grow by 26 percent.

CICT Chairman Ray Anthony Roxas-Chua said more than 440,000 Filipinos have entered the BPO workforce since 2010, and demand and job opportunities are expected to increase in the near future.

Source:
http://outsourceportfolio.com

Indian BPOs mulling mergers, acquisitions

Fri, 25 Feb 2011 00:00:00 -0800

The professional clash between pure BPO companies and integrated IT-BPO players is coming to a head, as rumors swirl in the large Indian outsourcing industry of mergers and acquisitions among pure play BPO firms.

The Hindu Business Line interviewed outsourcing experts to share their views about these M&A rumors. �I think it is more about speculation and investment horizon of PEs and less to do with performance of a sector or even integrated versus pure play BPO debate,� comments Sid Pai, managing director of outsourcing consultancy TPI India.

�Theoretically, it is rare for PE (private equity) firms to stay invested in companies for very long, and so naturally, when there is a recovery in valuations they may mull an exit,� Pai explained.

Nikhil Rajpal, partner at Everest Group, shared the same opinion. �I do not think it reflects any preference for an integrated approach at all. From an industry point of view, in companies where PE firms are invested in, there is generally an investment lifecycle. So 5-8 years is, typically, seen as a right maturity time for them to exit or cash out.�

On the other hand, Keshav R. Murugesh, group CEO of WNS, argued that buyers in the market for IT and BPO services were different clients. �We have gone for a vertical approach where we have people with deep domain knowledge, speaking to clients. As opposed to that there are integrated players, predominantly IT players for whom BPO is just a fraction of the business,� he argued.

Source:
www.thehindubusinessline.com

Dell, Gartner Reveal Top Data Center Predictions

Wed, 23 Feb 2011 00:00:00 -0800

In a recent Dell-Gartner media briefing that tackled top data center technologies for this year, it is predicted that most companies will focus on data center efficiency and automation. Enterprises will also improve their IT architecture and data center spending will bounce back.

According to Craig Slattery, director for enterprise platforms and solutions marketing for the Asia-Pacific and Japan of Dell Global B.V. (Singapore), organizations will be gearing towards data center efficiency. �To talk about the virtual era, virtualization is really the inflection point to drive new levels of efficiency. Efficiency in an organization is highly flexible, has low capital expenditure and has been optimized the IT manager. That is how you drive data center efficiency,� he said.

Meanwhile, global IT research firm Gartner said about 40 percent of companies with more than 1000 employees in Asia-Pacific will move towards investing in the cloud.

In 2009, Software-as-a-Service (SaaS) increased by nine percent of the total enterprise applications software spending. It is projected to grow by 14 percent in 2014.

Source:
http://www.philstar.com

Gartner Says KPO Opens Opportunities for Indian BPOs

Mon, 21 Feb 2011 00:00:00 -0800

There are good business opportunities for business process outsourcing (BPO) firms in India from the knowledge process outsourcing (KPO) industry, according to global IT research firm Gartner.

"KPO service offerings is a good opportunity for Indian BPO providers to provide high value services and thereby enabling them to develop higher margin work," said Arup Roy, Gartner's Principal Research Analyst. IT firms in India such as Infosys, TCS, Wipro, and Cognizant provide different KPO services. Based on a recent Gartner research paper, KPO services would involve �a combination of better processing methodology and an intellectually skilled workforce based predominantly in an offshore location�.

The multi-billion dollar KPO industry covers services on legal processes, marketing, as well as banking. In the future, it is estimated that the industry will be worth more than US$15 billion.

Source:
http://economictimes.indiatimes.com

Asian Companies Considering R&D Outsourcing

Fri, 18 Feb 2011 00:00:00 -0800

Companies based in Asia are seriously considering outsourced services for their core competencies in an effort to streamline their operations, reports the Economist Corporate Network (ECN). Industry watchers are warning, though, that these companies should carry out intensive due diligence before making any decision.

The ECN study covers more than 130 companies among different verticals. Companies belonging to the IT sector comprise about 2.4 percent of those surveyed.

Although the report indicated that companies were least likely to outsource product development and product design, companies studying the advantages of R&D outsourcing rival those who are also considering the outsourcing of human resource administration, finance and accounting.

ECN provides members with in-depth studies on business and economic trends. Study author Ross O'Brien, director of ECN Hong Kong, says that most of their large multinational clients �deploy in-region R&D to help them create a virtuous cycle.�

�[A] locally-developed product, which responds to application needs, form factors and price-points of Asian markets, is increasingly needed as tech companies depend on sales in Asia to shore up their global growth objectives,� O'Brien explains.

Rolf Jester, Gartner's Distinguished Analyst and Asia-Pacific vice president for IT services, comments that outsourcing R&D may not be for any company. �Each company competes on different characteristics. R&D and the ability to truly design innovative things may or may not be one of those characteristics, and each company needs to make that decision,� opines Jester.

Source:
www.zdnetasia.com

Data Privacy Bill to Benefit PH BPO Sector

Thu, 17 Feb 2011 00:00:00 -0800

In a legislative move to further support the growing BPO industry in the country, the Philippine Congress has approved on its second reading the proposed Data Privacy Act of 2011.

The bill, �An Act Protecting Individual Personal Data in Information and Communications Systems in the Government and the Private Sector, Providing Penalties in Violation Thereof�, will cover the governance and management of private individual data collected by the government and private companies such as banking institutions and credit card facilities. The bill states that personal data should only be collected for legitimate reasons, and these must be determined first before any collection is undertaken. The government and the private sector will have to erase the collected personal data after processing.

The bill mandates that data controllers and processors must employ measures in safeguarding personal data against accidental or illegal misuse, destruction, disclosure, alteration, or even illegal processing. Also, the bill makes it illegal to share personal data with third parties. Companies that fail to safeguard personal data will be fined by as much as PHP5 million (USD 115,000), the bill states.

�The approval of the Data Privacy Act on second reading sends the right signals not only to existing foreign locators in the business process outsourcing industry but also to the many global players which are just deciding whether to invest in our country and participate in the IT-BPO space,� commented Martin Crisostomo, executive director for external affairs of the Business Processing Association of the Philippines (BPAP).

The bill was filed by Representative Roman Romulo in July of last year. A counterpart bill in the Philippine Senate was filed during the same time.

Source:
http://www.bworldonline.com

Ayala, UP Ink Contract to Build P3bn University Town

Tue, 15 Feb 2011 00:00:00 -0800

Realty firm Ayala Land and the University of the Philippines (UP) signed a contract of lease to build a �University Town�, a hub that combines BPO offices and academic support facilities. Ayala will invest about P3 billion in the development of the 7.4-hectare property, also known as the UPIS campus, located along Katipunan Avenue, Quezon City.

According to Ayala Land, the University Town Project will consist of �mixed-use retail and office components, with firm emphasis on academic support facilities. This will be the first of its kind in the country to reflect a strong collaboration between the academe and the industry."

The 25-year contract can be renewed for another 25 years through a mutual agreement. Ayala added that construction of the project will start this year.

Source:
http://www.gmanews.tv

Valentine's Day at MicroSourcing

Mon, 14 Feb 2011 00:00:00 -0800

I love Valentine's! MicroSourcing celebrated the day of hearts last February 11 at the MS Caf�.

The event was highlighted by a dating game. For the first round, searcher Beth Tamayo from HCSDG got to know the participants namely Dan Oliver Calpatura (CSG), Paulo Cabantog (MMP), and Custer Frianeza (MMP) through a series of questions. In the end, Ms. Tamayo chose Mr. Calpatura.

Meanwhile, it turned out that searcher Stephen Paolo Pe�a (CSG) was more compatible with Geoanna Corneby (Business Development Dept.) than Regine Nario (MMP) or Karen Paraiso (Manpower Acquisition Dept.).

Each pair received a gift certificate worth P2500 from Old Vine Grille, Eastwood City.

Aside from the dating game, a booth was set up by HCSDG for those who want to buy flowers for their loved ones. There was also a message booth wherein employees wrote messages of love and HCSDG personnel delivered them free of charge.

PH Exports Break $50B Mark

Fri, 11 Feb 2011 00:00:00 -0800

Exports reached a three-year high last year, relying on an increasing global demand for electronic products, apparel, coconut oil, woodcraft, furniture, and metal components.

The country's export receipts increased by 33.7 percent, for a total value of $51.39 billion, the National Statistics Office reported recently. This increase exceeds the government-set target of 15 percent for exports.

According to Sergio Ortiz-Luis, president of the Philippine Exporters Confederation, Inc. (Philexport), the value of exports would be higher if the revenues generated from the business process outsourcing (BPO) and services sectors were added.

A strengthening global economy pumped up demand for Philippine exports, with electronic exports increasing by 40.11 percent from 2009, bringing in a total value of $31.07 billion. Most products were shipped to Japan, the United States, and Singapore. Of the three countries, Japan was the Philippines' top importer for 2010, buying Filipino-made products worth $7.8 billion.

Source:
www.philstar.com

PH Eyes P3.8T Investments, $117B Exports

Thu, 10 Feb 2011 00:00:00 -0800

The Philippine government is expecting a cumulative investment of P3.8 trillion over the next six years, with exports reaching $117 billion.

According to Philippine Trade and Industry Secretary Gregory L. Domingo, the said growth targets would be due to improved governance and the implementation of policies that sustain economic growth.

�The Aquino Administration's thrust to improve governance, the implementation of right policies coupled with a strong private sector will provide impetus for the attainment of for high sustained economic growth,� the cabinet official explained.

Domingo, speaking at yesterday's year-end briefing of economic managers, enumerated the following sectors: construction, agro-industry, electronics and semiconductors, tourism, and business process outsourcing (BPO) - as drivers of economic growth for investments and exports.

�But we would like to find a new BPO, meaning a new sunrise industry one that would be able to create half a million or more jobs,� said Domingo. �Perhaps, we can have coconut-based industry as the next sunrise industry also.�

The cabinet official said the BPO industry was very vital in improving the net services trade balance.

The projected P3.8 trillion would represent the total investments generated by the government's investment promotion agencies by the end of Philippine President Benigno Aquino III's term in 2016.

Source:
www.mb.com.ph

Cebu to Train Scholars to Address Talent Shortage in BPO, KPO

Wed, 9 Feb 2011 00:00:00 -0800

Cebu City intends to give 5000 college scholars free training to help address shortage of highly skilled workers who are needed in the knowledge process outsourcing (KPO) sector.

The local government will offer free classes on English proficiency to scholars taking a four-year course to help them qualify for call center jobs. They will also help both BPO and KPO firms in finding highly skilled employees for their operations.

This initiative transpired after a recent study by Tholons, an advisory company on global outsourcing and investments, revealed that shortage of qualified talent remains a major challenge faced by BPO and KPO companies.

Cebu Investment and Promotions Center (CIPC) Managing Director Joel Mari Yu said they will continue to promote the province as an ideal location for call center work, though they need to work on increasing the pool of workers and improving their skills to meet the demand of KPO firms such as Lexmark, IBM, and JP Morgan and Chase. �They need people with special skills and a very much higher level of knowledge, so we need to build capability in this area,� Yu said.

Source:
http://www.sunstar.com.ph

Indian IT-BPO Exports to Reach $175bn by 2020

Tue, 8 Feb 2011 00:00:00 -0800

The National Association of Software and Services Companies (Nasscom), India's software industry body, predicts that revenues in the country's IT-BPO exports will reach $175 billion by the end of 2020.

Opportunities outside core markets, verticals, and customers are expected to drive 80 percent of the incremental growth. �The new mantra is to innovate, redesign and reinvent. We have an opportunity of tapping $175 billion in export revenues by 2020. The only constraint to tap this opportunity is not the demand but our ability to address it,� said Nasscom President Som Mittal.

Last year, export revenues reached $59 billion and it is estimated that the industry had grown by 19 percent this financial year.

India gets the lion's share of the global sourcing market - about 55 percent in 2010. Mittal said that amidst the challenges, India's success can be attributed to its position in the industry as a global outsourcing hub.

Source:
http://www.business-standard.com

A.T.Kearney: PH BPO Ranking Falls to No. 9

Mon, 7 Feb 2011 00:00:00 -0800

The Philippines dropped two places from no. 7 to no. 9 in the Global Services Location Index (GSLI) for 2011 by management consulting firm A.T. Kearney. GSLI lists down the countries which are attractive offshore outsourcing destinations.

Be that as it may, A.T. Kearney said the country remains a key outsourcing player with workforce consisting of about 500,000 workers and $7.2 billion revenues generated in 2009. It is still strong when it comes to call center work. �The Philippines, an early entrant into the service sector, is also relatively well-rounded. It has had more than a decade to hone its capabilities, and by now has moved into ITO [information technology outsourcing] from being primarily a contact-center hub.�

India got the top spot, followed by China and Malaysia, mainly for talent availability and low costs in these destinations. Other countries which made it to the top 10 are Egypt, Indonesia, Mexico, Thailand, Vietnam, and Chile.

Source:
http://www.abs-cbnnews.com

Nasscom: Egypt Turmoil May Affect IT Sector

Fri, 4 Feb 2011 00:00:00 -0800

The current turmoil happening in Egypt may affect the global IT services sector, making for a conservative growth for 2011, says the National Association of Software and Services Companies (Nasscom) of India.

Coupled with the prevailing debt problems of European countries, Nasscomm has projected the revenue of the Indian IT industry to grow by 16 to 18 percent only � a nearly flat estimate compared to last year's 18.7 percent.

"There are some sectors and geographies where uncertainty exists. We think this estimate is realistic," explains Nasscom president Som Mittal.

On the other hand, Indian BPO giant Infosys Technologies Ltd. was more pragmatic about the events happening in North Africa. "There could be a domino effect, clients could stop spending, which could slow down information technology (IT) services," comments Infosys CEO S. Gopalakrishnan.

Despite the crises, Nasscom is still positive about industry growth. Companies have added 240,000 new jobs, with more deals on the pipeline. �India's share in the global sourcing has gone up from 51% in 2009 to 55% in 2010, which is a good sign,� said Mittal.

The Nasscom president says that despite the emergence of the Philippines as the leader in the voice-BPO market, the slowdown of the Indian BPO industry affected the growth of the Indian IT sector.

Source:
www.tradingmarkets.com

PH Growth Accelerates by 7.3%

Thu, 3 Feb 2011 00:00:00 -0800

The last quarter of 2010 saw the Philippine economy accelerating to a 7.3 percent growth � the fastest since 1976, reports the National Statistical Coordination Board.

Economists, surveyed earlier by Bloomberg News, had forecasted a median growth of about 6 percent.

�This is an extension of the optimism that has followed the new government,� says Radhika Rao, an economist with Singapore-based Forecast Pte. �The central bank has managed to maintain benign inflation and that has contributed to better spending trends and positive consumption. Remittances haven't taken a hit and these things contribute to strong domestic demand.�

In November, the peso climbed to its highest value in two years, but has since decreased after the central bank intervened by relaxing rules on foreign-exchange outflows and by capping the dollar supply in the market.

�Unless the government can carry out a more aggressive stimulus program and encourage the private sector to invest, it will be a big challenge to replicate the performance last year,� comments Emilio Neri, economist at the Bank of the Philippine Islands, one of the country's oldest and biggest banks.

Philippine president Benigno Aquino III has extended the tenure of the incumbent central bank governor, with Aquino saying that he had �confidence� in the governor. The central bank has managed to keep inflation below 5 percent for the past two years.

Source:
www.bloomberg.com

Indian IT-BPO Firms Facing Major Employee Attrition

Wed, 2 Feb 2011 00:00:00 -0800

Employee retention becomes a key challenge for IT and BPO firms in India, as the industry faces large-scale employee attrition especially in key positions within the organization.

Fidelity National Financial India Country Head Sameer Dhanarajani said "the macro effect is balanced by one company losing its critical staff to another and a company getting critical resources in return." The challenge is to keep them aligned to the organization. Moreover, a new employee, regardless of his or her place in the corporate ladder, comes with hiring, training, and maintenance costs. "There has been an increased investment to retain the right talent and to keep the customer operations smooth,� Dhanarajani said.

He added that there has been an increase in demand for outsourcing as companies recover from the financial turmoil, cost of operations, and rising unemployment rates. While India remains the top location of choice, other outsourcing destinations such as the Philippines, China, and Vietnam pose a threat.

Source:
http://economictimes.indiatimes.com

Eastwood City Cyberpark Launches New BPO Building

Tue, 1 Feb 2011 00:00:00 -0800

Eastwood City Cyberpark has recently launched a new building, Global One Center, to help the business process outsourcing (BPO) industry in the country reach its $11 billion revenue target for 2011.

The cyberpark, located in bustling Quezon City, is home to several BPO service providers.

The new Global One Center is a 21-storey building that has a total floor area of 32,000 square meters, says Jericho Go, vice president for business development of Megaworld Corporation, the company that owns and develops Eastwood City Cyberpark. �More than inaugurating new buildings, we are delighted that Megaworld, together with our BPO partners and locators, is able to help thousands of Filipinos to not just get jobs, but gain long-term careers in the BPO sector,� Go explains.

According to 2009 data from the Philippine Economic zone Authority, outsourcing and offshoring locators based in Eastwood City Cyberpark have brought in $348.31 million - a 7.8% hike from 2008. With Global One Center being the Cyberpark's 10th BPO building, it is estimated that people working at Eastwood City will number to about 35,000.

Source:
www.philstar.com

New Grads Urged to Work in Local Outsourcing Firms

Tue, 25 Jan 2011 00:00:00 -0800

After seeing a decrease in the number of job applicants in local outsourcing companies, the business process outsourcing (BPO) industry of Dumaguete City, Negros Oriental urged new graduates to apply in local firms instead of finding work in major locations such as Metro Manila or Cebu.

The BPO industry of the province has launched a campaign to cite the advantages of working locally. Suzanne Lu-Bascara of Spi Global based in Bacong town said while wages are higher in Manila or Cebu, it is still better to work in the province, considering that a BPO employee working in Manila would have to spend a big part of his/her salary on rent, food, and transportation.

It is estimated that the province needs more than 2000 full-time BPO employees this year. Dana Fortunato of BPO firm Student Universe said they need to get workers locally instead of looking for manpower outside the province. She added that the industry as well as local government units and schools must work together to meet the manpower needs of the province this year.

Source:
http://www.mb.com.ph

PH BPO Industry Growth to Reach 30% this Year

Mon, 24 Jan 2011 00:00:00 -0800

SPi Global president and CEO Malik Parekh predicts that the Philippine business process outsourcing (BPO) industry will grow by 30 percent this year. Figures also reveal that the industry shows a faster growth rate compared to others around the world.

More than 500,000 workers are currently employed in the country's BPO industry. Parekh predicts that the workforce will stand at 1.3 million employees by 2016. This can be attributed to the emergence of new markets in the Asia-Pacific region and Western Europe.

BPO companies in the Philippines reported that more than half (58 percent) of their revenues come from non-voice services, and 42 percent come from voice-based work.

The industry is continuously growing, but Parekh said Filipinos should work on further improving their skills to meet client requirements, especially those in the non-voice sector.

Parekh also predicted that global BPO revenues will reach US$124 billion by 2016.

Source:
http://www.pia.gov.ph

Global TPI Index Shows Companies Moving to Multi-Sourcing

Fri, 21 Jan 2011 00:00:00 -0800

A decade of data on the outsourcing industry shows that companies are moving towards smaller contracts and multi-sourcing deals, according to research released today by sourcing data and advisory firm TPI.

According to the 4Q10 Global TPI Index, the number of large companies relying on multiple outsourcing service providers increased from 30 percent in 2000 to 53 percent last year. Data shows that almost half of these companies relied on more than three service providers, and not a single one returned to single-sourcing.

�As they have grown disillusioned with single-source arrangements, global organizations are increasingly opting to employ multi-sourcing strategies,� said John Keppel, Partner and President-Information Services & Chief Marketing Officer, TPI. �By using multiple providers, they can customize their sourcing solutions and leverage the skills of the best in each market. We expect the preference of companies to multi-source will continue to grow as it allows them to tap the best talent possible for their needs.�

The index, which is on its 33rd quarterly release, covers commercial outsourcing deals that are worth more than $25 million. For 2010, data shows that total contract value (TCV) worldwide amounted to $79 billion � a decrease of 11 percent from the previous year.

Information technology outsourcing (ITO) continued to drive the outsourcing market, despite a decline of 4 percent from last year. Business process outsourcing (BPO) fell by 31 percent, while human resources outsourcing fared better, recording its best TCV in three years.

�Looking forward to the first quarter of 2011, as we consider mixed signals from financial analysts, service providers and industry pipelines, we do not anticipate a significant uptick in the market,� Keppel said.

Source:
http://www.tpi.net

High Attrition Hampers PH BPO Growth

Thu, 20 Jan 2011 00:00:00 -0800

Manpower problems will slow down the aggressive growth of the Philippine business process outsourcing (BPO) industry if high attrition rates continue, warns Maulik Parekh, president and CEO of SPi Global Solutions, a Philippines-based BPO firm.

Parekh explained that BPO companies could avert the labor shortage and reduce attrition by offering value-added services over cost savings to client-companies, improving working conditions for employees, and encouraging innovation through entrepreneurship. Around 84,800 employees resign from their BPO jobs yearly, the CEO pointed out.

If the BPO industry did not immediately address the attrition issue, Parekh said that �the industry will be short of 400,000 workers by 2016.�

Business Processing Association of the Philippines chairman Alfredo Ayala had earlier announced that the BPO industry would earn $25 billion by 2016, even with �zero investment� from the government. Parekh explained, however, that with the current exit rate of workers standing at 16 percent, the industry could only bring $18 billion, which he said was �not acceptable�.

Source:
http://www.businessmirror.com.ph

Firms Urged to Avoid Common Outsourcing Pitfalls

Tue, 18 Jan 2011 00:00:00 -0800

Luxoft, a leading offshore software development company, urged businesses to plan accordingly to avoid the common mistakes when it comes to transferring IT processes and delegating responsibilities.

According to Luxoft's president and CEO Dmitry Loschinin, these pitfalls include failure to match requirements with what the provider can actually deliver, and choosing a company which does not have the capability for high-performance outsourcing. Also, he said that many firms underestimate how important having an effective communication is in an outsourcing relationship. "Without clear roles, responsibilities, and collaboration in place, the client and outsourcer teams may adopt divergent strategies that can dilute the value of the outsourcing engagement," he claimed.

Loschinin said companies must conduct regular transparency checks to ensure that both parties follow the workflow process and avoid problems later on.

Source:
http://www.ihotdesk.com

Study Reveals Outsourcing Impact on Consumers, Competition

Mon, 17 Jan 2011 00:00:00 -0800

Companies can reduce costs through outsourcing, but a new research reveals that the process hurts consumers and tends to soften the competition among rivals in the industry.

In a research co-written by Yunchuan "Frank" Liu, a business administration professor in the University of Illinois, it is said that outsourcing leads to loss of jobs and higher prices. "If a firm outsources production to a low-cost country, there's a cost-saving effect, but there's also a weakening among on the competition," Liu said. "If the competition is softened and the production costs become lower, businesses don't have an incentive to pass those savings along to consumers." He added that in some cases, consumers pay higher prices.

Before outsourcing, the competition was more intense and businesses were more consumer-centric. According to Liu, when firms start outsourcing business functions to low-cost countries, the competition softens as more companies enter the scene.

Liu co-wrote the research with economist Rajeev Tyagi at the University of California. The study will be published in the journal called Management Science.

Source:
http://www.eurekalert.org

WB Says PH to Continue Steady Growth

Fri, 14 Jan 2011 00:00:00 -0800

The economy of the Philippines will continue to grow steadily for 2011 and 2012, says the World Bank (WB) in its latest Global Economic Prospects 2011 report.

The report, which the WB publishes twice annually, estimates that the country's 6.8 percent growth in 2010 will stabilize to 5 percent in 2011 then 5.4 percent in 2012.

During the launch of the GEP 2011, Eric Le Borgne, World Bank Senior Economist for the Philippines, commented that, "GDP growth has been stronger than expected, reflective of rapid recovery and election-related spending amidst a strong external position which has led to a sovereign credit rating upgrade in November by Standard and Poor's."

The senior economist explains that the continued economic growth of the Philippines relies on the assumption that the strong investor confidence will be supported by the government in much-needed reforms and in improving the overall investment climate.

Although the country faces risks from the economic downturn of developed countries, Le Borgne says the outlook for the country's top performing sectors remains positive. The electronics and semiconductor sector will remain strong, while the services sector, led by the business process outsourcing (BPO) industry, will continue to grow, explains Le Borgne.

Source:
http://www.mmdnewswire.com

Reinvestments of Foreign Companies in PH Increases

Thu, 13 Jan 2011 00:00:00 -0800

The Bangko Sentral ng Pilipinas (Central Bank of the Philippines) reports that multinational companies with Philippine operations have reinvested USD 259 million into the country during the first 10 months of 2010 - five times more than during the same period in 2009.

The central bank says the reinvestments propped up the rate of foreign direct investments (FDI) to USD 1.07 billion for that period. However, the institution reports that the FDI rate actually declined from 2009, when it totaled USD 1.68 billion.

In their report, the central bank says, �Notwithstanding the favorable growth prospects in the domestic economy, investor sentiment remained cautious amid concerns on the sustainability of recovery of advanced economies, particularly of the United States where the outlook continued to be fragile given the high government fiscal deficit and tepid employment conditions.�

Within the same period, subsidiaries and affiliates of multinational companies increased their loans from overseas headquarters for short- and medium-term local economic operations.

The central bank calls these activities as �intercompany loan availments from affiliates abroad.�

Source:
http://www.businessmirror.com.ph

Ovum: Asian Governments will Invest in the Cloud this Year

Tue, 11 Jan 2011 00:00:00 -0800

This year, government agencies in Asia will be embracing the cloud-based approach to service delivery and outsourcing. This is the IT trend in the recent report from global analyst and consulting firm Ovum.

"Asian governments will continue to invest in local cloud computing capabilities to boost the competitiveness of their ICT industries in the region. However Australia stays asleep at the wheel on the need to link the government procurement and industry development agendas", said Dr. Steve Hodgkinson, Research Director.

Jessica Hawkins, Ovum analyst and author of the report, said agencies will be considering the cloud, though they will remain cautious in terms of privacy and security. Also, IT vendors must be able to help agencies in understanding how this technology can help them. While BPO opportunities, shared services, as well as on-demand access will be �more open in 2011 than ever before�, Hawkins said governments should look into how changes in service delivery can bring efficiency, and not just a way to reduce costs.

Source:
http://www.koreaittimes.com

MicroSourcing Launches MS University

Mon, 10 Jan 2011 00:00:00 -0800

The Human Capital Strategy and Delivery Group (HCSDG) launched MicroSourcing University (MSU) last January 7.

MSU is the official learning portal of MicroSourcing, containing relevant and useful content designed to further improve the skills and competencies of employees. �It is the venue for employees to take a variety of training and developmental courses in modularized form while at work,� HCSDG said.

MSU's courses are categorized into the following:

Compulsory - courses and module sets which are necessary for all employees; including Human Capital practices and MicroStatus walkthroughs and simulations

Free-for-All - involves a wide range of topics that can help introduce or refresh various job function competencies such as communication and organizational skills

Development - module sets designed for career progression, development, and acquisition of management skills; includes the General Orientation for Leadership Development (GOLD)

Client-specific - courses developed for specific client functions, tasks, systems, and procedures

The launch of MSU coincided with the Free Food Friday, a company-wide event held every first Friday of the month.

Indian BPOs Testing IT Waters to Survive

Fri, 7 Jan 2011 00:00:00 -0800

Leading Indian BPO companies are enhancing their IT skills and expertise to ensure their survivability in the global market and retain existing contracts, which are at risk of being won over by IT firms that offer integrated IT-BPO services, reports Indian newspaper The Economic Times.

Industry giants IBM and Accenture, which have been reported by Horses for Sources as one of the Big 4 cornering major multimillion dollar deals, are threatening the client portfolios of standalone BPO companies, says the newspaper.

Deepak Patel, CEO of one of India's biggest global outsourcing firms, Aditya Birla Minacs, tells the newspaper that the BPO industry is "evolving from being process-oriented to becoming more technology-intensive as customers look for the entire value chain of services."

The company has begun offering enterprise application support, RIM, ADM, and business analytics, alongside their usual BPO offerings.

Source:
The Economic Times

Research Shows �Big 4' Dominating F&A BPO Market

Thu, 6 Jan 2011 00:00:00 -0800

Research firm Horses for Sources (HfS) says their market analysis of the global finance & accounting BPO market sees three large outsourcing service providers cornering more than fifty percent of the market.

The report, soon to be released by HfS, indicates that BPO newcomers are �clearly struggling to take any significant share away from the �Big 4' incumbent providers; Accenture, IBM,Genpact and Capgemini.�

HfS says the Big 4 has managed to close multimillion dollar deals during the past years, leveraging on existing contracts and renewing them. The firm says Accenture has been the most active in winning large enterprise clients. Most newcomers, HfS reports, close deals that fall under the sub-$5m category.

The HfS data, beginning with 2004 lasting through 2010, shows average contract deals steadily decreasing. The firm advises BPO newcomers to �stay the course,� winning smaller deals and growing them, and at the same time, turning a profit.

HfS advises that common technology platforms, common process workflows, and reliance on the Cloud will definitely help providers with their multi-client shared-service capability, but �flexible, ample, people-delivery resources� are still important in closing a deal.

Source:
www.horsesforsources.com

IAOP Says Outsourcing Seen as Vital Business Asset Worldwide

Wed, 5 Jan 2011 00:00:00 -0800

The International Association of Outsourcing Professionals (IAOP), a leading outsourcing industry body, said organizations around the world see outsourcing as a vital business asset. It is �one of the most powerful tools available today� when it comes to establishing better companies and economies.

According to IAOP Chairman Michael Corbett, about four million people are employed in the top 200 companies in the global outsourcing industry. "It's time for us in developed economies to realize the value of outsourcing and to start investing and competing for a share of the global, multi-trillion pound outsourcing industry," Corbett said.

Outsourcing is increasingly viewed as a vital and �mature� business practice. IAOP said the 10 percent revenue increase in 2010 indicates that more companies are outsourcing work and they are becoming more confident in the industry and economy.

Source:
http://www.ihotdesk.com

Gartner: Indian BPO Industry Likely to See Consolidation Wave

Tue, 4 Jan 2011 00:00:00 -0800

Global research firm Gartner said India's $12 billion BPO industry will likely see a consolidation wave very soon as a result of the fast changing dynamics of the industry.

"A consolidation wave in business process outsourcing (BPO) sector is likely (in the coming months). Since it is challenging to cope with changing dynamics, some existing entities may move to different lines of business," Senior Research Analyst Arup Roy said. He added that the process management sector, which is likely to flourish in the coming years and is expected to reach $1.7 billion in 2014, means good business for domestic BPO companies. However, Roy said the industry is currently facing certain issues such as increase in labor and IT costs.

In a Gartner report, it is stated that many Indian BPO firms consider expanding their service offerings in an effort to stay competitive and be able to provide end-to-end services.

Source:
http://economictimes.indiatimes.com

PH BPO Industry Predicts 2011 Revenues will Reach US$11bn

Mon, 3 Jan 2011 00:00:00 -0800

The Philippine business process outsourcing (BPO) industry aims to hit the US$11 billion revenue mark for 2011. Business Processing Association of the Philippines (BPAP) President Oscar Sa�ez said this will be equivalent to about 110,000 new job opportunities this year.

Sa�ez said BPAP will continue to promote the industry by tapping US, European, and Australian markets. "We have to increase the awareness of our potential employees of job opportunities in IT and BPO companies, including those in the knowledge process outsourcing and other non-voice sectors."

BPAP also supports the K+12 program (adding a Grade 7 in elementary and 5th year in high school) proposed by the Department of Education to improve the quality of education in the country and address the recruitment issues that the BPO industry is currently facing. Moreover, Sa�ez urged the Congress to work on the amendments in the current Labor Code, data privacy problems, as well as the passage of the cybercrime bill.

Source:
http://www.sunstar.com.ph

DOLE Sees PH BPO Industry as Main Job Generator in 2011

Wed, 29 Dec 2010 00:00:00 -0800

2011 will be a good year in terms of local job opportunities. According to the Department of Labor and Employment (DOLE), more than a million job openings are expected next year, and the business process outsourcing (BPO) industry will be the main employment generator for Filipinos.

DOLE Secretary Rosalinda Baldoz said the agency is coordinating with other concerned agencies so the country will be able to supply enough manpower for the BPO industry. To prepare those who want to join the BPO workforce, the Technical Education and Skills Development Authority (TESDA) will provide free English language communication training. �We also had an agreement with BPOs to ensure 100 percent absorption or hiring once the skills training is completed,� Baldoz said. The government also called for a national congress with the goal of strengthening the job facilitation services of DOLE.

Source:
http://www.philstar.com

Trade Body Predicts Indian IT-BPO Industry will Reach $70bn

Tue, 28 Dec 2010 00:00:00 -0800

By the end of the current fiscal year, India's IT-BPO industry will hit the $70 billion mark as demand for software technology products picked up. This is according to National Association of Software and Service Companies (Nasscom), the country's IT industry and business process outsourcing (BPO) sector trade body.

From $12.8 billion in 2009, Nasscom expects a 14 percent compounded annual growth rate for the domestic IT-BPO services sector over the next two years. IT industry revenues rose by 5.5 percent as demand in US markets increased this year. The country's top software services firm Tata Consultancy Services (TCS) as well as its competitor Infosys Technologies Ltd. reported good revenues in 2010.

Moreover, expansion of workforce is expected during this fiscal year with TCS planning to hire more than 50,000 people. Infosys, on the other hand, is expected to employ about 20,000 workers early next year.

Source:
http://www.ibtimes.com

Gartner Says India Remains No.1 Outsourcing Location

Thu, 23 Dec 2010 00:00:00 -0800

When it comes to offshore outsourcing, India stays on top of the list, according to the recent offshore services report from IT consultancy firm Gartner.

Based on the report, India gets high scores in all 10 criteria namely: language, support from the government, manpower availability, infrastructure, educational system, cost, environment (political and economic), cultural compatibility, global and legal maturity, as well as IT security.

India remains the top outsourcing destination, but Gartner said the Philippines, Vietnam, and Indonesia pose as tough competitors in terms of service competitiveness and cost efficiency. "Attractive cost structures in the Philippines, Vietnam, and Indonesia create tough competition for India, while China remains the most prominent challenger in terms of scale." The Philippines, on the other hand, remains attractive to foreign firms due to its young manpower pool, good English communication skills, and cultural affinity with Western companies.

Source:
http://arabnews.com

Gartner Says some Outsourcing Hubs may not have IT Security

Tue, 21 Dec 2010 00:00:00 -0800

In the 30 Leading Locations for Offshore Services 2010-2011 report, IT research and advisory firm Gartner warned UK IT managers of the relative immaturity of some outsourcing destinations, saying these may lack data security as well as IP protection.

Report author Ian Marriott said some outsourcing locations such as Vietnam still need to improve their legal system to meet data security requirements. �If a firm used to outsource to India and has built up certain expectations then they may be in for an unpleasant surprise. However, they may be in for a pleasant surprise, but it must be well managed and some companies are not doing this. It's all about the due diligence.�

Marriott said getting the necessary information about the possible outsourcing destination by talking to government representatives and industry groups is crucial before deciding whether or not to outsource.

While countries like Bulgaria, Poland, Hungary, Egypt, and Czech Republic are relatively mature service providers, Marriott said these may be suitable only for certain business operations. Poland, for instance, specializes in business processes, while Egypt focuses on contact centers.

Source:
http://www.v3.co.uk

MicroSourcing Hosts Deck Da Club Christmas Party

Mon, 20 Dec 2010 00:00:00 -0800

Employees, members of the management team, and clients got together last December 18 at Manor Superclub, Eastwood City for MicroSourcing's Deck Da Club Christmas Party.

To set the hip hop mood and get everyone so pumped up, the hip hop-themed celebration kicked off with a performance number from the dance group called Excess Baggage. After the delicious dinner, CEO Philip Kooijman and wife Nona, together with Business Development Manager Rafael Verheij and wife Gilda, facilitated a rap quiz which was won by the team from WGP.

The crowd went wild during the hip hop dance competition. Three teams - Saksi ni Ronald (Creative Services Group or CSG), Super IT Dudes (IT Department), and MicroMovers (Management) showcased their moves and stunts amidst loud cheers and applause. In the end, CSG was named the best hip hop dance group of the night and got the Php 10000 prize.

The celebration became even more meaningful with a video presentation that gave everyone a chance to take a glimpse of the company events that happened this year. Another touching video showed some of MicroSourcing's clients as they sent holiday cheers and wishes. Numerous gift packs and certificates were also given throughout the program.

Industry Groups Say Cyber Sex is not Part of the BPO Industry

Thu, 16 Dec 2010 00:00:00 -0800

After the release of news reports that compared girls who are involved in cyber sex with call center agents working shifts, the Business Processing Association of the Philippines (BPAP) and the Commission on Information and Communications Technology (CICT) said cyber sex is not BPO. The illegal practice is happening in different parts of the world and is not being outsourced to the country.

BPAP President and CEO Oscar Sa�ez said cyber sex is online porn and not part of the industry. "Cyber sex and illegal sex dens as reported recently is pervasive on the worldwide web. We should not attribute or compare cyber porn with our flourishing BPO industry," said CICT Chair Secretary Ivan Uy.

Industry groups said they were alarmed by the �wrong association� as this could have a negative impact to the image of the country which is now considered as the no. 1 offshore outsourcing destination.

Source:
http://www.abs-cbnnews.com

MMP Employees Win Big at Wild Gadgets Palooza Referral Program

Wed, 15 Dec 2010 00:00:00 -0800

Richard Rian and Albert Bautista from MicroSourcing Managed Projects (MMP) won first and second prize, respectively, in the Wild Gadgets Palooza Referral Program by the Manpower Acquisition Department.

From the prize categories, Mr. Rian chose the Canon DSLR Kit while Mr. Bautista got the Nokia E72 Mobile Phone. Aside from the gadgets, they have also received the MicroRefer monetary incentives. The prizes were given during the monthly Free Food Friday last Dec. 3.

Gift certificates worth P500 were also given to employees who have submitted at least five valid referrals. Recipients of GCs from various establishments were Junnette Abrera, Michael Rebueno, Richard Rian, and Lhady Kris Dizon.

In this program, all employees were encouraged to refer their friends to earn points and get a chance to win cool gadgets. Each hired referral has corresponding points depending on the position the referral applied for. At the time of writing, the department was able to hire a total of seven (7) Sales-driven Website promoters as a result of this initiative, and at least 280 referrals were received through this program.

IT Outsourcing to see Further Growth in 2011

Tue, 14 Dec 2010 00:00:00 -0800

Research company Horses for Sources predicted that IT outsourcing will see further growth in 2011, the �banner year� for managed services. This can be attributed to the high speed transfer of operational software processes to offshore service providers.

The research company also predicted that firms will focus more on service integration. This is because more companies aim to set unified goals for sales, general, and administrative processed. "The only way [for firms] to start achieving new thresholds of productivity is to integrate the management, orchestration, and delivery of their sourced operations." It added that companies intend to expand their outsourcing scope in 2011.

Source:
http://www.codestone.net

Business Group Says PH must Make Doing Business Easier

Mon, 13 Dec 2010 00:00:00 -0800

The Philippine government must amend the Labor Code to make doing business in the country easier. This is what the Joint Foreign Chambers said in the report �Arangkada Philippines 2010: A Business Perspective�.

�The Labor Code should be amended to remove the prohibition against female employees working at night, to allow subcontracting, and to make it easier to terminate employees,� the report said. Aside from amending legislations, there is also a need to reduce the number of holidays in the country since every non-working holiday means millions of dollars lost in the BPO industry.

The business group said the Philippines' large pool of English-speaking workers, low-cost telecom, and government support must be strengthened and reforms must be done to reach �high growth potential�. The business group said leaders in both the private and public sectors should establish a national culture of competitiveness, and recommended reduction in business costs, as well as creation of an annual presidential report on competitiveness.

Source:
http://www.philstar.com

PH Creative Content Industry to become Top Dollar-earner

Thu, 9 Dec 2010 00:00:00 -0800

In the next five years, the Philippine business process outsourcing (BPO) industry, particularly the creative content sector, is expected to exceed the remittances from overseas Filipino workers, making the former the country's top dollar-earner.

Commission on Information and Communications Technology (CICT) Secretary Ivan John Uy said the remittances from OFWs will hit $17 billion, while the creative content sector's revenues will likely reach $9 billion this year. However, if the government gives support to the animation sector, revenues can reach $25 billion by 2016. "Creative content will be the driver of economic growth in our interconnected world. It accounts for majority of IT use from gaming to social networking and has the highest value added," Uy added.

According to Animation Council of the Philippines, Inc. Managing Director Grace Dimaranan, the Philippine animation industry currently consists of 100 firms and employs about 10,000 artists-animators, background artists, graphic artists, and digital painters.

Source:
http://www.philstar.com

PH Dethrones India as No. 1 BPO Destination

Mon, 6 Dec 2010 00:00:00 -0800

The Philippines is now the global leader when it comes to business process outsourcing (BPO) and shared services, overtaking India for the first time in these business support functions. This is according to the 2010 Annual Report - Global Location Trends by IBM.

Both India and the Philippines offer similar business environments. However, labor costs in the latter have not increased as much compared to India.

According to the Contact Center Association of the Philippines (CCAP), the country has also become the call center capital of the world, employing 350,000 call center employees. Voice outsourcing accounts for 70 percent of the country's outsourcing industry.

Here's the list of leading BPO destinations based on the report from IBM:

1. The Philippines
2. India
3. United States
4. Poland
5. China
6. Britain
7. Columbia
8. Costa Rica
9. Fiji
10. Ireland
11. South Africa
12. Sri Lanka
13. Hungary
14. Australia
15. Egypt
16. Chile
17. France
18. Canada
19. Singapore
20. The Netherlands

Source:
http://www.allvoices.com

Aquino Admin Allocates P62M for IT-BPO Industry

Thu, 2 Dec 2010 00:00:00 -0800

PH President Benigno Aquino III pledged support to the country's IT-BPO industry by allocating P62 million through a public-private partnership between the Business Processing Association of the Philippines (BPAP) and the Commission on Information and Communications Technology (CICT).

Pres. Aquino said the industry was able to reach over P9 billion in revenues and had employed about 550,000 workers in 2009. "You have contributed 10.2 percent of the growth of the Services sector, which comprises about 49.5 percent of the country's Gross Domestic Product (GDP). In the second quarter of 2010, you have already contributed 3.2 percent to the GDP growth," Aquino said. He added that by 2020, the industry can generate revenues of as much as US$100 billion. This accounts for about 20 percent of the global market share.

The Philippines was named Offshoring Destination of the Year three times by UK body National Outsourcing Association.

Source:
http://www.mb.com.ph

Investors, Firms Urged to Expand Operations Outside Manila

Wed, 1 Dec 2010 00:00:00 -0800

Investors and companies in the Philippines were encouraged to expand business process outsourcing (BPO) operations in key sites outside Metro Manila.

In the 3rd National ICT Summit in L'Fisher Hotel in Bacolod City, ICT Cyberservices Group head Ivan John Enrile Uy said the common goal is to promote the country as the global IT-BPO location of choice, and they are preparing the cities and regions outside Metro Manila area to become more attractive to investors. By expanding operations in other key sites, opportunities for economic growth will be spread out and not concentrated only in Metro Manila. This will also capitalize on skilled talent available in other areas. Uy added that about 20 percent of the country's outsourcing industry is located in sites outside Metro Manila and Cebu, and this is expected to increase.

Bacolod City ranked third in the Top 10 Next Wave Cities for 2010. Acting Mayor Jude Thaddeus Sayson said the city currently has 14 IT parks and buildings, and is considered as the BPO hub of the Western Visayas Region.

Source:
http://www.visayandailystar.com

Gartner Lists Trends that will Change IT and Business

Wed, 24 Nov 2010 00:00:00 -0800

Cloud computing, impact of social networking platforms, context aware computing, and pattern-based strategy - these are the top four trends that will bring about changes in the IT and economy in the next 10 years, according to research firm Gartner.

In his keynote speech at the Gartner Symposium/ITxpo in Australia, senior vice president and global head of research Peter Sondergaard said cloud computing will continue to affect the world of technology. In the IT industry, �it will alter the financial model upon which investors look at technology providers, and it will change vertical industries, making the impact of the Internet on the music industry look like a minor bleep.�

Social networking platforms will also have an impact on the business culture and attitude, saying there will be less separation when it comes to business and personal computing. �Social computing, not Facebook, or Twitter, or LinkedIn, but the technologies and principals behind them will be implemented across and between all organizations, it will unleash yet to be realized productivity growth, it will contribute to economic growth.�

In the case of context aware computing, wireless technologies as well as the increasing use of devices such as tablet PCs will have an impact to the IT industry in the coming years. Lastly, Sondergaard discussed pattern-based strategy that builds on technologies such as social network analysis, context aware technologies, and predictive analytic tools.

Sondergaard said these four trends will greatly change the face of the IT industry, significantly changing the way enterprises do business.

Source:
http://www.onwindows.com

NASSCOM Says Yes to Flexible BPO Atmosphere for Women

Tue, 23 Nov 2010 00:00:00 -0800

Indian IT and BPO industry body National Association of Software and Services Companies (NASSCOM) favored a flexible work atmosphere for women who are raising their own families. This is to reduce the drop-out rates and increase the number of Indian female workers in mid- and senior management level positions in IT-BPO companies.

According to NASSCOM chairman Harsh Manglik, there are instances when female workers take a break from work to raise their families. The �biggest barrier� arises when they come back to work after quite some time and they feel outdated and disconnected from the work atmosphere. They also feel �left behind� when it comes to technology competency. Manglik noted in the Diversity and Inclusivity Summit 2010 that the industry must offer an opportunity or a flexible atmosphere to keep them engaged. NASSCOM added that there are 600,000 women who are employed in the IT-BPO industry in India, but less than four percent have senior level positions.

Source:
http://timesofindia.indiatimes.com

Gartner Says Asia-Pacific IT Spending to Reach $312bn in 2011

Mon, 22 Nov 2010 00:00:00 -0800

Research firm Gartner projected that IT spending by companies in the Asia-Pacific region will reach $312.3 billion next year, a 7.6 percent increase compared to 2010 figures.

Software is the fastest growing segment in the region with 11.3 percent. Hardware got 10.1 percent, IT services with 9.3 percent, and telecommunications segment with 7.6 percent. "Growth in 2010 has been strong, due in part to pent-up demand following budget freezes in 2009 and the need to replace ageing hardware," Gartner Senior Vice-President and Global Head (Research) Peter Sondergaard said.

Sondergaard also said after slowing down in 2009 as a result of the global financial crisis, manufacturing and supply chain industries in countries such as China and India showed an increase in activity in 2010. Moreover, it is projected that the healthcare sector, utilities, and education will show the strongest IT spending growth rate in the region.

Source:
http://economictimes.indiatimes.com

Everest Says RPO Market to Grow 25-30% in 2011

Fri, 19 Nov 2010 00:00:00 -0800

The rapid growth of the recruitment process outsourcing (RPO) market in 2010 can result to a 25-30 percent growth rate in 2011. This is based on the �Recruitment Process Outsourcing Annual Report 2010 - A Year of Rapid Growth and Intense Competition� by global services advisory firm Everest Group.

It is projected that the annual contract value (ACV) of the RPO market will reach US$1.38 to 1.45 billion in 2011. According to research director Rajesh Ranjan, the market is seeing rapid growth with new contracts - smaller deals, fewer employees, and buyers going for the selective approach. �Beyond direct cost impact, we expect to see more buyers look to achieve business impact by taking a more strategic approach with RPO and look for total workforce solutions, but adoption will be gradual due to lack of integrated solution availability. While the market is dominated by large buyers, we expect the mid-market to grow as these buyers look to scale up in an improving economy.�

Moreover, the report reveals that North America is ahead of the pack in RPO adoption, and buyers go for the multi-vendor approach due to lack of comprehensive global RPO services.

Source:
http://www.businesswire.com

China Narrows Gap with India as Top Outsourcing Destination

Thu, 18 Nov 2010 00:00:00 -0800

Canada-based ICT research and advisory firm XMG Global said China is consistently narrowing the gap with India as the no.1 outsourcing location of choice.

China is expected to end 2010 with US$35.76 billion in outsourcing revenues, a 28.7 percent global market share. On the other hand, India's outsourcing industry still has the lion's share of the market with 43.7 percent.

China posted a 30 percent growth rate, while India only increased by 14 percent. XMG chief analyst Lauro Vives said the revenue gap between these countries is getting smaller. "India's weakening lead is due to the substantial efforts of China, the Philippines, and other offshoring destinations in building their capacity to attract significant amount of investment," Vives said, adding that India maintains its lead, but other offshore outsourcing destinations are starting to mature.

By the end of this year, the global outsourcing market is expected to post US$425 billion estimated total revenue.

Source:
http://economictimes.indiatimes.com

PH BPO Likely to Miss 2010 Growth Target

Mon, 15 Nov 2010 00:00:00 -0800

The Business Processing Association of the Philippines or BPAP forecasted that the BPO sector would end 2010 with $9 billion in revenues or a year-on-year growth rate of 26 percent. However, Canada-based XMG Global Inc. said revenues would only reach $8.85-billion. This accounts for only 23 percent growth rate, though it is faster compared to 20 percent seen in 2009.

On a global scale, outsourcing revenues would increase 13.9 percent this year - from $373.1 billion to $425 billion. XMG chief analyst Lauro Vives said the slower growth rate this year is �indicative of slow investment expansion in off shoring destinations and conservative increase in outsourcing demand from the US and European region.�

Vives added that India, China, and the Philippines still dominate the offshore outsourcing arena. For this year's global revenues, India would get 43.7 percent share, China would have 28.7 percent, while the Philippines would get 7.1 percent.

Source:
http://www.istockanalyst.com

Davao Aims to Tap Non-voice BPO Sector

Fri, 12 Nov 2010 00:00:00 -0800

Knowing that the non-voice BPO sector is growing in the global market, the Top Next Wave City is looking at expanding service offerings to include non-voice processes.

Davao got the number 1 spot in the Top Ten Next Wave Cities list of the Business Processing Association of the Philippines (BPAP) and the Commission of Information Communication and Technology (CICT). Jason Magnaye, head of the Davao City Investment and Promotions Center, said the city has communication facilities, infrastructure, and manpower needed in the industry. He added that investments do not come to the province because clients are not interested in expanding operations outside Metro Manila, that is why they are focusing on the strong points of the city to attract IT investors.

According to BPAP, 20 outsourcing firms operate in Davao, with workforce consisting of 8,500 employees.

Source:
http://www.pia.gov.ph

Paradigm Shift of IT-BPO: From Optimization to Transformation

Thu, 11 Nov 2010 00:00:00 -0800

From optimization to transformation: Infosys BPO CEO and Managing Director Swaminathan Dandapani said the IT-BPO industry is undergoing a paradigm shift. Executives in the outsourcing industry said their clients think that transformation of business is the �most compelling� benefit of outsourcing.

In the International Outsourcing Summit 2010 held last month, Dandapani said clients expect their service providers to identify new business opportunities and improve processes, adding that IT-BPO companies must think about ways on how to increase clients' revenues.

On the other hand, Everest Group Managing Partner (India) Gaurav Gupta said the Philippines needs to increase awareness that it can deliver more complex services, and must be promoted as a destination for transformative processes. �Companies view the Philippines as the world leader in voice BPO. What they don't realize is that it is also a significant provider of non-voice, complex services.�

Source:
http://www.mb.com.ph

Everest Says Indian Buyers Granting Larger Outsourcing Contracts

Wed, 10 Nov 2010 00:00:00 -0800

Indian buyers granted 26 IT and business process outsourcing (BPO) contracts in third quarter of this year, adding up to the annual contract value (ACV) of $290 million. According to global research firm Everest, this is more than double of the $129 million ACV posted in the same period last year.

�Indian companies are maturing to a level where they are handing out large outsourcing deals, transformational in nature. Companies are going global and at the same time competing in local market with MNCs (multi-national corporations), and hence they are looking to aggressively leverage technology for growth,� said Amneet Singh, Vice President-Global Sourcing, Everest.

Prominent deals granted to service providers include IBM's outsourcing deal with Bharti Airtel and Jet Airways, and Wipro's contract with Central Bank of India as well as UCO Bank.

Source:
http://www.thehindubusinessline.com

BPAP Supports DepEd's K+12 Education Plan

Tue, 9 Nov 2010 00:00:00 -0800

As the K+12 education program of the Department of Education (DepEd) faces opposing views from parents, students, and teachers, it has found an ally in the Business Processing Association of the Philippines (BPAP).

The Kindergarten +12 plan will set six years of elementary education. This will be followed by four years of junior high school and two years of senior high school. According to BPAP President Alfredo Ayala, this plan, once implemented, can improve the quality of workforce in the BPO or call center industry. He said that recruiting applicants as call center agents is difficult because of workers' inadequate communication skills that resulted from lack of educational training, the workers have only finished two years in college or they cannot be hired even if they are qualified because of the age limit.

DepEd Secretary Armin Luistro welcomed this support from the BPAP. �This would erase all doubts about the program and pave the way for its acceptance by the public, especially the parents.�

Source:
http://www.mb.com.ph

Obama Addresses Outsourcing Concerns in India

Mon, 8 Nov 2010 00:00:00 -0800

The US is seeing an increasing level of unemployment. Last month, it reached 9.6 percent. In his India visit, President Barack Obama said shifting work to outsourcing destinations such as India has cost Americans their jobs.

This is a major blow to the Indian IT industry, since about 60 percent of its $60 billion IT and IT-enabled services exports come from the US.

The US is increasing visa fees and implementing other protectionist measures as the country bounces back from the economic downturn and faces high unemployment levels. "As we look to India today, the US sees a potential to sell exports in one of the fastest growing markets in the world. For Americans, this is a job threat as we recover from recession," Pres. Obama said.

Source:
http://www.hindustantimes.com

DOLE, BPO to Create Voluntary Code of Best Practices

Fri, 5 Nov 2010 00:00:00 -0800

A voluntary code of industry best practices will be crafted to address the concerns faced by the outsourcing industry and create more efficient policies concerning the welfare of both employers and workers. This was agreed upon by the Department of Labor and Employment (DOLE) and its tripartite partners in the business process outsourcing (BPO) industry during the consultative meeting organized by DOLE-National Capital Region.

Regional Director Raymundo Agravante said the best practices code could address industry-related issues including difficulties of availing transportation services and potential danger of working at night, workers getting deprived of socialization opportunities, impact of working on graveyard shifts to the health of call center agents, and exposure to insulting remarks in business encounters.

The creation of the BPO industry tripartite council (BPO-ITC) and the effects of the House Bill No. 2592, An Act Ensuring the Welfare and Protection of Business Process Outsourcing Workers and the Recognition of their Rights were also discussed during the consultative meeting.

Source:
http://www.pia.gov.ph

PH Set to Beat India this Year as World's Call Center Capital

Thu, 4 Nov 2010 00:00:00 -0800

Research firm Everest and the Business Processing Association of the Philippines (BPAP) said the Philippines will likely overtake India as the world's capital for voice-based work.

This year, the Philippine BPO industry will post voice-based revenues that will reach almost $5.70 billion. This is higher compared to India's $5.58 billion. Also, companies like Cisco, HSBC, and BT PLC outsource voice-based work to the Philippines and establish an alternate support hub to avoid the impact of high staff turnover rate in India. �In standalone voice business, the Philippines will undoubtedly beat India this year to become the call centre capital of the world,� said Nikhil Rajpal, partner, Everest Research India.

Firms choose the Philippines for their call center work because of the country's better cultural compatibility with the US, higher tax incentives, and the absence of competing industries for skilled workers.

Experts added that if this pace continues, the country can beat India's BPO industry worth $12.4 billion in five years.

Source:
http://economictimes.indiatimes.com

BPAP Holds International Outsourcing Summit 2010

Wed, 3 Nov 2010 00:00:00 -0800

The International Outsourcing Summit: Global Market Leaders Addressing Global Issues was held last October 26-27 at Sofitel Philippine Plaza.

Organized by the Business Processing Association of the Philippines (BPAP), the summit became the appropriate event for addressing global outsourcing issues as the industry faces more complex challenges, as well as to take advantage of new business opportunities and partnerships. In this two-day summit, CEOs and business leaders from the outsourcing industry tackled major global issues in different areas such as health services, business development, banking and finance, marketing, and talent acquisition.

One of the main points discussed was the importance of getting the right talent to meet the demands in the industry. In the academe panel on specialized talent and language acquisition, it was said that talent is what drives the outsourcing industry. According to BPAP's Executive Director for Talent Development Atty. Jamea Garcia, over 70,000 new BPO jobs were created in the Philippines last year, noting that the country has a large pool of English-speaking talent with competitive salaries. However, the challenges include finding workers who have the right skills for the job, and removing the negative perception that outsourcing or BPO is mainly call center work.

MicroSourcing Celebrates Halloween

Tue, 2 Nov 2010 00:00:00 -0800

Employees and kids got together last October 29 for the trick-or-treat and other activities to celebrate Halloween.

In line with the theme �Famous People throughout History�, many employees changed into costumes to portray personalities such as Neil Armstrong, Elvis Presley, Cleopatra, Cyndi Lauper, Madonna, Michael Jackson, Dalai Lama, Olivia Newton-John, Frida Kahlo, and Adolf Hitler. There was also Jesus Christ and a couple of centurions. The employees' kids, nephews, and nieces also dressed up for the occasion and walked around the office for the trick-or-treat. Their bags and baskets were soon filled with candies and chocolates from different departments and projects.

The event also included a Best in Costume contest to recognize the employees and kids who gave the best portrayal of famous people. For the male category, IT department's Chris Torio got the award as he effectively imitated Neil Armstrong. On the other hand, Business Development department's Pearl Sy, who dressed up as Madonna, won the award for the female category. When it comes to the kids category, John Joseph Cruz (nephew of Precy Cruz - EV) and Anneghelica Marie Chua (daughter of Angel Lynn Chua - MMP) won the awards.

Roadmap: RP BPO Annual Revenues can Reach $25bn by 2016

Fri, 29 Oct 2010 00:00:00 -0800

If the BPO industry can stay competitive and leverage support from the government, the Philippines can post annual revenues reaching $25 billion and employ 1.3 million Filipinos by 2016.

This is based on the �IT-BPO Roadmap 2011-2016: Driving Global Leadership�, funded by the Commission on Information and Communications Technology (CICT) and developed by Everest Group and Outsource2Philippines for the Business Processing Association of the Philippines (BPAP).

�We found that the industry can grow to $20 billion in annual revenues by 2016 if current conditions are sustained,� BPAP CEO Oscar Sa�ez said. He added that the industry's revenues can reach $25 billion if the positive conditions are sustained and the government gives new support to the BPO industry.

The country's outsourcing industry stays competitive, thanks to the strong demand, government support, and strong language skills of workers. Sa�ez said its value proposition can still be improved depending on the initiatives on educational reform, enhanced visibility of the country on the global stage, and if the Filipinos will better appreciate and take advantage of the job opportunities being offered by the industry.

Source:
http://www.sunherald.com

Ovum Says BPO Sector to Recover in 2011

Thu, 28 Oct 2010 00:00:00 -0800

After facing the challenges brought about by the global economic downturn, things are looking up for the business process outsourcing (BPO) sector, as contracts will likely be scheduled for renewal and will open new business opportunities. This is according to global analyst and consulting company Ovum.

In the �2011 Trends to Watch: BPO� report by Ovum, more than 200 BPO contracts, with a total contract value of US$12.2 billion, are set to expire next year. Thirty-one percent of expiring contracts come from the manufacturing sector; 24 percent are from the banking sector. Ovum predicts that because of the contract renewals, the BPO market will see a five percent growth this year, and will grow by 6.3 percent next year.

Ovum principal analyst Patrick O'Brien said companies now have more options when it comes to service providers. According to the report, Middle East and Latin America are positioning themselves as locations for BPO work.

Source:
http://www.mis-asia.com

RP Wins Offshoring Destination of the Year Award for the 3rd Time

Wed, 27 Oct 2010 00:00:00 -0800

The Philippines was named Offshoring Destination of the Year by the National Outsourcing Association (NOA). This is the third time that the country won the prestigious award. The first time was in 2007 and the second was just last year. Philippine Trade Attache Mike Ignacio and Marketing Officer Vic Casim received the award in behalf of the country during the NOA 2010 Awards held last October 21 at the Park Plaza Riverbank in London.

NOA is the only outsourcing trade association in the UK, representing the end users, vendors, and companies that support outsourcing.

According to a news release from External Affairs Executive Director Martin Crisostomo of the Business Processing Association of the Philippines (BPAP), 2009 export revenues of the Philippine BPO industry reached US$7.2 billion, with workforce consisting of almost 450,000 employees. By the end of 2010, BPAP expects that revenues will reach US$9.5 billion and number of BPO employees will increase to 650,000.

ILO Chief Tells RP Grads to Fill In Manpower Gaps in BPO

Wed, 27 Oct 2010 00:00:00 -0800

International Labor Organization (ILO) chief Lawrence Jeff Johnson said that instead of waiting for a job overseas, Filipino graduates should get employed in the business process outsourcing (BPO) sector to fill in the labor market gaps. �There's lack of takers in the available jobs in the labor market even if there are graduates who could fill in these [jobs]. These graduates without jobs must take advantage of the labor market gaps."

He added that the demand has exceeded manpower supply since 2007. For instance, the industry needs 60,012 engineers, accountants, and skilled workers, 178,771 hotel and restaurant workers, and 747,947 employees for voice-based work. On the other hand, the number of nursing graduates is more than the number of jobs available. Johnson said with their medical background, these graduates can temporarily get employed as medical transcriptionists to help fill the gap.

Source:
http://www.gmanews.tv

UK Insurance Outsourcing Costs Set to Increase by 20%

Thu, 21 Oct 2010 00:00:00 -0800

UK and Irish insurance companies and those that provide intermediary/broking services are exempted from VAT, but under the new EU directive, they will soon face a 20 percent increase in costs on outsourcing business processes.

According to international VAT and IPT provider TMF, many companies have opted to outsource tasks such as claims handling and IT. �As a result, a supply industry has grown up which is divorced from the VAT-exempt insurance activity � has stretched the original scope of the exemption, and � has proved problematic to police.�

EU countries think that the popularity of the outsourcing industry poses a threat to jobs as it offers an option for companies to get things done offshore. TMF advised insurance companies to review their outsourcing strategy.

Source:
http://www.insurancedaily.co.uk

India to Discuss Outsourcing Concerns with Obama

Wed, 20 Oct 2010 00:00:00 -0800

India will discuss the recent US anti-outsourcing moves with President Barack Obama in his visit to the country on November 5. This is according to India's External Affairs Minister S.M. Krishna.

"There are some serious reservations being expressed about India's IT industry about outsourcing and the tightening of visa rules. These are the kind of issues that will be discussed," Krishna said. He added that there may be outsourcing issues between the two countries, but these will not affect their strong relationship.

A US bill was passed a few months ago, stating that visa fees for IT workers coming to the US will increase. This will have an impact on the outsourcing industry specifically those Indian workers who are transferred to the US. Meanwhile, Ohio Governor Ted Strickland issued an executive order that bans the transfer of government IT and back office projects offshore.

Source:
http://economictimes.indiatimes.com

Forrester Says IT Market in the US to Slow Down

Tue, 19 Oct 2010 00:00:00 -0800

According to the US and Global Market Outlook: Q3 report of market research firm Forrester, IT outsourcing from the US will see a slow growth rate of eight percent or $758 billion this year. This is lower compared to the estimate of almost 10 percent in July, while a growth rate of only 7.4 percent is predicted in 2011.

IT outsourcing is expected to fall behind the growth of other IT categories including software and PC equipment purchases. The report also suggests that applications outsourcing will increase by 2.9 percent. Mainframe outsourcing will grow by only 1.5 percent, while desktop support outsourcing will expand by just 1.3 percent. According to Andrew Bartels, VP and principal analyst at Forrester, extreme cases - strong growth or recession - may be seen in the US economy and on a global scale, �growing weakly but not slipping back into recession.�

Source:
http://www.financialexpress.com

Indian Animation Industry to Reach $1bn by 2012

Mon, 18 Oct 2010 00:00:00 -0800

It is expected that the animation industry of India will see a 22 percent compounded yearly growth rate until 2012, which makes the industry likely to reach $1 billion. In 2008, the industry was estimated at $494 million.

"Globally, the animation industry is poised to touch USD 100 billion by 2012 and India's animation industry is expected to hit USD 1 billion by 2012, aided by increased outsourcing and a growing domestic market," Ram Kumar Worrier, head of the Maya Academy of Advanced Cinematics (MAAC) Business, said.

Meanwhile, Ketan Mehta, founder of the MAAC, said technical expertise, telecommunications infrastructure, as well as the pool of English-speaking animators and graphic designers are the factors that make India ideal for animation work. He added that when it comes to animation, the country is heading in the right direction.

Source:
http://economictimes.indiatimes.com

Outsourcing Sector to Benefit from UK Spending Cuts

Fri, 15 Oct 2010 00:00:00 -0800

With government's planned spending cuts, UK will lose half a million jobs in the private sector, while opportunities in the outsourcing industry will increase.

According to Jon Sibson, head of public sector at accountancy firm PricewaterhouseCoopers (PwC), this is not entirely bad news for the graduates. "A sector likely to see growth opportunities from spending cuts is outsourcing, and not only in back-office services." He added that the government and organizations in the public sector will increase the use of private and voluntary sector organizations when it comes to delivery of front-line services in order to lower operational costs.

PwC also said the highest number of job losses (122,000) will probably be seen in London, while the least number of losses will be in Northern Ireland.

Source:
http://www.gradplus.com

ICT-Davao Head Says Schools should Start Offering KPO Courses

Thu, 14 Oct 2010 00:00:00 -0800

Davao City got the top spot in this year's Top 10 Next Wave Cities, but it lacks enough manpower with the skills needed for knowledge process outsourcing (KPO) work. This is why Erriberto Barriga Jr., head of the Information and Communications Technology of Davao (ICT-Davao) said schools should start offering KPO courses like gaming software development.

The Philippines has long secured its place in the global outsourcing industry when it comes to voice-based work, but experts have advised the country to move to KPO, a different BPO segment that requires analytical and design skills. KPO demand may be increasing, but Barriga said there are no locators that offer skills needed to meet KPO requirements.

Barriga said 42 universities in Davao had produced 15,000 graduates earlier this year with skills that are suitable for contact center operations. ICT-Davao expects that they will be able to exceed the 10,000-seat target for call centers this year.

Source:
http://www.bworldonline.com

Indian IT Firms Expected to Post Higher Revenues in Q2

Tue, 12 Oct 2010 00:00:00 -0800

With the increase in IT demand and depreciation of the US dollar, it is expected that Indian software companies will post higher revenues in the second quarter. Analysts from ICICI Securities think that Infosys, TCS, Wipro, and HCL Technologies will post a volume growth rate of five to seven percent.

Volume growth can be attributed to the 1.8 percent rupee depreciation against the US dollar. Meanwhile, US dollar depreciated by 3.9 percent against British pound, 1.5 percent against Euro, and 2.5 percent against the Australian dollar.

"Infosys to post expansion in its EBIT (earnings before interest and tax or operating margin) margins by 175 bps (100 basis points is equal to one per cent) QoQ as wage hikes are behind, the periodic visa cost will be lower, rupee depreciation to the tune of two per cent will cushion margins by 70 bps and higher offshore efforts will aid them," said Srishti Anand of Angel Broking. Wipro is expected to post a 60-bps expansion, while HCL Tech's margins are likely to decline by 239 bps quarter-on-quarter primarily due to salary increases for Q2 FY2011.

Source:
http://indiatoday.intoday.in/

BPO Company Offers Classes to Contact Center Workers

Mon, 11 Oct 2010 00:00:00 -0800

A contact center and BPO company offers classes to call center workers to finish their college education while working.

Telus International Philippines, Inc. opened �Telus International University�, a program that offers courses in economics, management, entrepreneurship, IT, and humanities to call center employees while they are working on graveyard shift. Javier Infante, president and chief executive officer, said 40 percent of their employees do not have college degrees.

Telus formed partnerships with five universities for this program. �The company will subsidize the tuition of the beneficiary. The classes will be held in the two centers of Telus located in Cubao in Quezon City and Taguig. The professors of the universities will teach the standard curriculum but during schedules most suited for our employees who are working at night,� Infante said.

He added that the employees will not be required to sign a contract or bond, and will not be forced to stay with the company after the program.

Source:
http://www.bworldonline.com

Cloud Computing Demand to Grow as Firms Aim to Cut Costs

Thu, 7 Oct 2010 00:00:00 -0800

More and more companies will adopt cloud computing in an effort to reduce IT costs. According to Andy Wright, sales director of UK-based IT solutions provider nonstopIT, the benefits of cloud computing become evident to many firms, resulting to a growing interest in the IT delivery model.

"More and more people, as they're slimming down their IT infrastructure and IT support departments, they're going to want to put more in the cloud," Mr. Wright said. He added that companies are starting to trust the security of cloud computing.

Through an IT outsourcing provider, cloud computing offers ease of deployment and system management. Wright said a cloud-based solution will enable companies to cut costs, and it does not require too much intensive resource in-house.

Source:
http://www.ihotdesk.com

Mobile Apps to Stay Competitive Seen as Outsourcing Trend

Wed, 6 Oct 2010 00:00:00 -0800

As part of the efforts to stay competitive, enterprise customers are expressing interest in using mobile business applications, a trend that's gaining attention in outsourcing discussions.

"With the advent of PDAs and mobile devices, people are seeing that this is yet another way to get ahead of their competitors," said Sury Kant, president of New York-based Tata Consultancy Services (TCS) Ltd. North America.

With mobile business apps, companies can take their enterprise resource planning (ERP) systems to smartphones and people can get the information they need and make decisions anytime, anywhere.

Meanwhile, Steve Hall, a partner and managing director at Woodlands, Texas-based global sourcing advisory firm TPI Inc., said a major concern would be finding a provider that has adequate understanding of a company's enterprise data, requiring deep domain and business knowledge. He added that while using mobile business apps is a strong trend, it remains under the radar �because of the overload of press on cloud computing these days."

Source:
http://searchcio.techtarget.com

Expert Says Egypt can be Top Outsourcing Location of Choice

Mon, 4 Oct 2010 00:00:00 -0800

Denise D'Elia, a Vodafone representative, believes that Egypt has what it takes to be the top outsourcing destination.

Fifty percent of Egypt's population belong to the age bracket of 25 and below, so it has a huge pool of young talent. Egypt has the third largest talent pool in the region, with 330,000 graduates produced annually. Many students also specialized in areas which are suitable for the outsourcing industry. Aside from the huge talent pool, D'Elia said Egypt's aptitude in several European languages gives it a competitive edge.

There are also government initiatives that focus on making the country a more suitable location for outsourcing. These include tax reforms, customs simplification, and infrastructure programs.

Based on an AT Kearny survey last year, Egypt was in the 13th spot in the field of global service delivery. This year, the country got the sixth slot.

Source:
http://www.thedailynewsegypt.com

Government Urged to Give Additional Incentives to BPO SMEs

Fri, 1 Oct 2010 00:00:00 -0800

In the SME panel discussion at the Contact Center Association of the Philippines, small and medium-sized call center companies urged the government to give them more incentives to enable them to compete with large companies.

According to Pacific Hub Chief Executive Officer Beaver Lopez Jr., incentives for SMEs must be different from those given to large companies to help the former in dealing with challenges. These include rising costs of doing business in the country, insufficient government incentives, talent recruitment, and high attrition rate.

Small companies employ up to 1000 workers, while medium-sized firms have 1000 to 5000 employees.

Meanwhile, TrecPacific Corp. president Edith Reilly said aside from giving additional incentives, the government must also improve the quality of education in the country.

Source:
http://www.malaya.com.ph

BPO to Create the most Jobs for RP in the next Three Years

Thu, 30 Sep 2010 00:00:00 -0800

President Benigno Aquino III's working visit to the US resulted to at least 43,000 new jobs for Filipinos in the next three years, primarily in the business process outsourcing (BPO) industry. This is worth more than US$2 billion worth of investments from foreign companies tapped by Pres. Aquino.

According to Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz, the top in-demand jobs are the following: call center agent, customer service assistant, technical support staff, forklift operator, accounting clerk, mechanical engineer, sales clerk, driver, cashier, and production worker. "It is good news, and that will really help in job generation... and address the poverty that continues to confront us," Baldoz said.

Senate finance committee chair Franklin Drilon said these new investments mean foreign investors are confident in the Aquino administration.

Source:
http://www.abs-cbnnews.com

Republicans Block Passage of US Anti-outsourcing Bill

Wed, 29 Sep 2010 00:00:00 -0800

In a 53-45 vote, the Republicans had prevented the passage of the anti-outsourcing bill that would stop US companies from getting tax breaks and outsourcing work to other countries.

The Creating American Jobs and End Offshoring Act includes exempting firms that move jobs to US from payroll tax. However, it also involves increasing taxes on the companies' profits from offshore operations. "Desperate times call for desperate measures and the majority is showing how desperate they are with a bill that increases the tax burden on job creators and ship much-needed US jobs overseas," said Republican senator Orrin Hatch.

On the other hand, Democrat senator Harry Reid said the goal of the bill is �to keep American jobs in America�, and that the US must stop granting tax breaks to companies that move jobs overseas.

Source:
http://profit.ndtv.com

RP BPO Feels Impact of Strong Peso

Tue, 28 Sep 2010 00:00:00 -0800

According to Oscar Sa�ez, president of the Business Processing Association of the Philippines (BPAP), the BPO industry in the country is starting to feel the effect of the strong peso, at around 43 to the dollar.

Small companies may stop their operations. For BPO companies with contracts struck at 46php to a dollar, revenues will decrease. Sa�ez said having a strong peso will have a negative impact to the industry. This can also affect investor perception of the country as an ideal outsourcing location. "If you listen to the pronouncements of government, it actually prefers a strong peso. That is dangerous because the economy is dependent on OFWs (remittances) and exports of product and services," he said.

While the country's BPO industry is worried about this issue, Sa�ez said BPAP remains on track in reaching the revenue goal this year. The problem would be how to keep this momentum despite the impact of the strong peso.

Source:
http://www.malaya.com.ph

BPAP Asks RP BPO Firms to Hire Workers Outside Manila

Mon, 27 Sep 2010 00:00:00 -0800

Recognizing the availability of competent talent pools in provinces, an official of the Business Processing Association of the Philippines (BPAP) said firms in the business process outsourcing (BPO) industry must hire more workers outside Metro Manila.

BPAP executive director Ma. Jamea S. Garcia said that out of 400,000 graduates every year, only 25 percent are from Metro Manila, illustrating the competent talent pool available in other regions. �Talents are always there, the companies just need to find the applicants who will perfectly match their expectations." She added that the perception of not having enough talent in the provinces must be changed.

Garcia said the country's BPO industry is aiming to reach the $12-billion revenue target by 2011. Based on a different report, Commission on Information and Communications Technology (CICT) Chairman Ivan Uy said the BPO industry will likely hit the $9 billion revenue mark this month or in October, and may even close the year with revenue that is close to $10 billion.

Source:
http://www.gmanews.tv

Eastwood City Cyberpark Named Top RP BPO Location

Fri, 24 Sep 2010 00:00:00 -0800

Among all registered IT parks and buildings in the Philippines, Eastwood City Cyberpark in Libis, Quezon City posted the highest employment figure of 16,856 in 2009. This is a 22-percent increase compared to 2008 figures, making it the top BPO location in the country.

Aside from the rise in number of employees, Eastwood City Cyberpark also posted improvements in exports of Offshoring & Outsourcing (O&O) locators reaching US$348.31 million, as well as in salaries from PEZA-registered companies at P6.72 billion. According to developer Megaworld Corporation, non-BPO establishments in Eastwood have provided jobs to more than 30,000.

�We are pleased that despite the global economic challenges of 2009, Eastwood City Cyberpark still managed to post increases in the number of employees, exports and salaries. As the economy improves further this year, we expect 2010 to be another banner year for Eastwood City Cyberpark,� Megaworld FVP for business development Jericho Go said.

Source:
http://www.philstar.com

Consulting Firm Says China Closing in on India in BPO Race

Thu, 23 Sep 2010 00:00:00 -0800

India's BPO market share decreases. China is already closing the gap and may even surpass the former as the top outsourcing destination. This is according to a new report from Ovum, a technology consulting firm.

�Both countries are often touted as the low cost delivery location of choice, with many non-domestic vendors investing millions of dollars to set up operations in multiple locations in both countries�, said Jens Butler, Ovum principal analyst. He added that with the growing influence of India and China as centers of political and economic power, both countries will go head-to-head in the BPO arena.

To stay at the top, stability and government support will play a big role, and these must be sustained in the future since other outsourcing hubs such as the Philippines, South Africa, and Latin America may take BPO market share from China and India.

Source:
http://www.bworldonline.com

India, US Vow to Resolve Issues before Obama Visit

Wed, 22 Sep 2010 00:00:00 -0800

In a joint statement, India and the US vowed to put an end to issues such as the outsourcing ban of Ohio and the increase in visa fees before the visit to India of US president Barack Obama.

Indian Minister of Commerce and Industry Anand Sharma aired India's concerns about the anti-outsourcing moves of the US, saying that the trend �had created an avoidable feeling of negativity in the service sector." Sharma said, "when the global economy is still reeling from the aftershocks of the economic crisis and coming out of the recession any inward looking step of protectionist measure would slow down the pace of recovery and deepen the recession."

It was reported earlier that India criticized the passage of a US bill stating that visa fees for IT workers coming to the US will increase. This was followed by the issuance of an executive order in Ohio, banning the transfer of government IT and back office projects offshore.

Source:
http://timesofindia.indiatimes.com

Low-cost IT could Accelerate as Firms Outsource to Cut Costs

Tue, 21 Sep 2010 00:00:00 -0800

Gartner, Inc.'s report shows that uncertainty in economy and business, increasing competition, and industrialization of IT services can drive businesses to outsource and cut costs, speeding up the increase of low-cost IT.

According to Claudio Da Rold, vice president and analyst at Gartner, the price will remain a deciding factor, and organizations outsource IT processes to reduce costs. The report also shows that with industrialized IT services, service providers can offer �one-to-many� services at a price that's lower compared to IT processes done in-house.

�Cost cutting, restructuring and the move toward offshore outsourcing continue to increase while growth in emerging countries accelerates, widening the gap between high-growth areas (e.g. Asia/Pacific and Brazil, Russia, India and China) and stagnant economies (e.g. Europe, Japan and North America), and low and high-cost IT providers. This trend could drive a prolonged reduction in the unit cost of IT services, significantly affecting the IT services market by 2013,� Da Rold said.

Source:
http://services.tekrati.com

US' Anti-outsourcing Move to Impact Small Indian IT Firms

Mon, 20 Sep 2010 00:00:00 -0800

While experts in the Indian outsourcing industry believe that the recent anti-outsourcing move of Ohio will not have an immediate impact, they think that this will be felt by small IT companies. According to Ameet Nivsarkar, Nasscom Vice President, private companies still see India as their location of choice for outsourcing, though the recent move to ban transfer of government projects offshore, following an increase in fees for H- 1B and L1 visas, is "certainly disturbing".

"This is business is not driven by rhetoric but hardcore commonsense. US companies outsource because it is profitable and not just out of some political compulsions. So, large contracts will not be impacted. However, there may be certain disruption for small contracts and companies," a senior official of global networking giant Cisco said.

With this anti-outsourcing trend from the US, Indian IT firms are now tapping markets in Europe, Latin America, and Middle East.

Source:
http://indiatoday.intoday.in

Cebu's BPO Stakeholders Revive Dept. of ICT Proposal

Fri, 17 Sep 2010 00:00:00 -0800

After three years when the creation of the Department of Information and Communication Technology (ICT) was first proposed, the stakeholders in Cebu's business process outsourcing (BPO) industry raised the said proposal to President Benigno Aquino III.

Cebu Education Development Foundation senior advisor Bonifacio Belen spoke on behalf of the BPO industry, saying that the creation of the Department of ICT would make government processes simple, reduce corruption, and ensure transparency. There is also a need for a national broadband network, and the new department would make it a priority. �At present, our telecommunication companies are only able to provide broadband Internet services to 66 percent of the whole country. Unlike in other countries like South Korea where all nooks already have at least 10 megabytes of broadband service. We need to also do that here especially that we have already started the automated voting,� said Bonifacio.

However, the President said the administration has yet to evaluate the proposal in terms of having many consultants and agencies that may be deemed redundant.

Source:
http://globalnation.inquirer.net

RP to Benefit from Changes in Global Workforce

Wed, 15 Sep 2010 00:00:00 -0800

The diminishing global workforce will be a good thing for the Philippines, but according to Towers Watson regional managing director Bob Charles, strategies such as giving incentives, deferment of early retirement, and establishing a strong leader-team member relationship must be implemented by top managers to retain employees.

Young talent in the country must remain engaged in their work for retention and to prevent them from moving abroad to work. "The primary drivers of engagement for �Generation Y' is career advancement, genuine concern that the company is making a difference, and opportunity to give input," Charles added.

He added that outsourcing work to Asian countries with young talent will be an �increasing trend�. The Philippines, having more births than other countries, can take advantage of the changing face of demographics, with the decreasing birth rates seen in different parts of the world.

Source:
http://www.bworld.com.ph

RP BPO Poised to Exceed 2010 Revenue Goal

Tue, 14 Sep 2010 00:00:00 -0800

The business process outsourcing (BPO) sector of the Philippines will likely hit the $9 billion revenue mark this month or in October, and may even close the year with revenue of almost $10 billion. This is according to Commission on Information and Communications Technology (CICT) Chairman Ivan Uy.

The BPO sector currently employs about 500,000 workers. Uy said this can increase to 600,000 by the end of this year. �All are going up, including the animation industry, the health information management system, software industry and the traditional voice and non-voice that we already have strong presence in,� he added.

Initially known as a leading destination for call center work, the Philippines is now seen to emerge as a major outsourcing location for non-voice business processes.

Source:
http://www.manilastandardtoday.com

Chief Minister Says Ohio's Anti-outsourcing Move to Impact IT Industry

Mon, 13 Sep 2010 00:00:00 -0800

Andhra Pradesh, India's Chief Minister K Rosaiah aired concern following the issuance of an executive order banning outsourcing of government IT and back office projects by Ohio Democratic governor Ted Strickland. Hyderabad, the capital of Andhra Pradesh, is home to more than 2000 software outsourcing companies that get contracts from the US and the UK.

�A majority of the world's top 500 companies outsource work to India, and a major part of it comes to Hyderabad. The Ohio ban is just the beginning. The US government is likely to cut incentives to companies outsourcing IT projects to India and more states and companies may decide against outsourcing. It would become difficult for the IT industry to survive here if outsourcing is banned,� Rosaiah said. He added that this anti-outsourcing move will have an effect not only to Andhra Pradesh but also India as a whole.

Source:
http://economictimes.indiatimes.com

Ohio Governor Bans Offshoring of IT, Back Office Projects

Thu, 9 Sep 2010 00:00:00 -0800

Ted Strickland, Democratic governor of Ohio, issued an executive order banning the transfer of government IT and back office projects offshore.

According to Strickland, "pervasive service delivery problems with offshore providers, including dissatisfaction with the quality of their services and with the fact that services are being provided offshore" prompted him to put a stop to outsourcing government projects to offshore locations.

While this anti-outsourcing move is not made specifically for Indian service providers, it is expected to affect India-based companies which handle big state-level government projects, and especially at a time when Indian firms are already dealing with concerns such as the bill on the increase in visa fees of IT workers coming to the US. "Ohio's ban on outsourcing can only be viewed as counter-productive to the US government thrust on reducing public deficit... It only reinforces our stand on discrimination," National Association of Software and Service Companies (Nasscom) said in a statement.

Source:
http://timesofindia.indiatimes.com

Gartner Says UK Firms will Increase IT Spending this Year

Wed, 8 Sep 2010 00:00:00 -0800

Out of 206 UK organizations that took part in the survey conducted by Gartner Inc. in the first quarter of 2010, 53 percent said they will outsource more IT processes this year, while 40 percent plan to increase IT spending.

While there is an increase in the number of European firms that spend 50-75 percent of IT budget to service providers, Claudio Da Rold, vice president and analyst at Gartner said there is still pressure on capital and IT operating expenses. �Although 40 percent of respondents said that they will increase the external share of their budget, only 24 percent said that they will increase the budget for providers, and almost a quarter of organizations still expect that their IT services budget will continue to decrease in 2010.�

The survey also shows that there is an increase in the number of organizations that are becoming interested in outsourcing. In 2009, 6.1 percent of organizations with IT budgets of less than �1 million have expressed interest in outsourcing. This year, the survey reveals that the percentage of firms rose to 14.7 percent.

Source:
http://www.indiainfoline.com

Pres. Aquino Committed to Support RP BPO Sector

Tue, 7 Sep 2010 00:00:00 -0800

To further enhance the Philippine BPO sector, Pres. Benigno Aguino III said his administration will reduce power costs, upgrade technologies, and increase power availability. This was said during the inauguration of the new 139,000 sq. ft.- center of Convergys located at San Lazaro area in Santa Cruz, Manila and can accommodate 2,400 workers.

�Our administration has also committed to shortening the amount of time and paperwork necessary to start a business, sparing our investors from agonizing lines and costly red tape in securing government permits,� said Pres. Aquino.

The BPO sector employs more than 500,000 Filipinos, and it has become a major growth driver of the economy. For the first six months, the sector had already reached half of the $9.4 billion revenue goal projected for 2010.

Source:
http://www.manilatimes.net

MicroSourcing Starts Monthly Celebration, Energy Conservation Programs

Mon, 6 Sep 2010 00:00:00 -0800

The management and employees of MicroSourcing got together and enjoyed great food and company at MS Caf� last September 3 for the launching of the Monthly Celebration program. This was in line with the company's efforts to enhance employee enhancement. The Energy Conservation program was also launched during the event.

The Monthly Celebration program is the replacement of the complimentary beverages provided by the company to employees. According to Human Capital Strategy and Delivery Group (HCSDG) Manager Rami Rosima Jr., �by redirecting our resources from our monthly beverage funds, we will be able to provide the opportunity to celebrate milestones, get together, and enjoy each other's company.�

Meanwhile, MicroSourcing encouraged employees to help conserve energy by following simple guidelines such as turning off your PC including the monitor before you log out and disposing of garbage properly.

Survey Shows Continuous Growth in Global IT Spending

Fri, 3 Sep 2010 00:00:00 -0800

According to Chief Information Officers (CIOs) who participated in the survey conducted by institutional brokerage CLSA Asia-Pacific Markets along with outsourcing advisory firm TPI, global IT spending shows continuous growth, with the IT spend on the second half of 2010 expected to be the same as in the first six months.

�We are seeing lot of cheer in terms of IT spending across the globe. Thus we are moving steadily to achieve the guidance we gave last quarter,� said Rajan Kohli, chief marketing officer, Wipro Technologies.

India's top three IT services providers, TCS, Wipro, and Infosys, posted six percent growth in revenues, which can be attributed to Western firms which start outsourcing IT processes to cut operational costs.

Things are looking up for the IT sector, but some are concerned about the quality of contracts in terms of tenures and contract values.

Source:
http://www.dnaindia.com

BPA/P to Hold 2nd International Outsourcing Summit in October

Wed, 1 Sep 2010 00:00:00 -0800

On October 25-27, top global BPO industry executives will discuss what the future holds for the BPO industry and look at new opportunities and solutions to address issues at the 2nd annual International Outsourcing Summit at Sofitel Philippine Plaza.

The Business Processing Association of the Philippines (BPA/P) and other government agencies are working together for this three-day event which will be attended by about 300 senior executives from 15 countries.

�Because the Philippines is the number two offshore BPO center globally, this is a logical place to meet. As a result, we're seeing major industry personalities sign on as presenters and panelists as well as a steady stream of delegate registrations. This is an important conversation, and the most influential people in the industry are anxious to participate,� said Oscar Sa�ez, BPA/P CEO.

Source:
http://www.philstar.com

MicroSourcing Launches MicroRefer

Tue, 31 Aug 2010 00:00:00 -0800

MicroRefer.com, the official referral portal of MicroSourcing, was officially launched last August 26-27, facilitated by the Sourcing and Marketing Team of the Manpower Acquisition Department.

MicroRefer.com is an effective recruitment tool to reach suitable candidates for MicroSourcing clients. In fact, more than 52 percent of the company's successful candidates come from employee referrals.

Sourcing and Marketing Specialists Mafel Silva, Mikhail Hauptman, together with Recruitment Specialist Elaine Cruz facilitated the orientation to all employees. To be a recruiter, an employee must register at microrefer.com and start adding and inviting contacts. He/She will be able to view the list of referrals submitted and total referral incentives earned.

�MicroRefer aims to bring in people that no other source of application, if partially, can supply: the quality understood by our employees as needed by the business. We are best aware of what we require from each one of us better than a five-liner from our advertisements. We are also aware of what kind of people we want to work with, and referring can help us achieve these. This is going to be a fantastic initiative as we also get to pay our affiliates for using the tool. You refer, we pay you; we get a much larger, fun, and profitable environment,� said Mr. Hauptman. He added that the department is planning to organize a recruitment party wherein employees can bring in their friends and let them know how MicroSourcing values and recognizes hard work and dedication of its employees.

UK Firms Prefer to Outsource Jobs to India over China

Thu, 26 Aug 2010 00:00:00 -0800

Recent study revealed that India is the preferred outsourcing destination of two-thirds of UK companies, while the rest will outsource call center jobs, IT, and finance work to China. This is based on the Labour Market Outlook research conducted by the Chartered Institute of Personnel and Development (CIPD) and accounting firm KPMG.

According to the study, the decline in qualities of graduates in the UK pushes companies to outsource work offshore. Forty-two percent of British employers said the level of literacy skills went down over the last five years. When it comes to the level of communication and interpersonal skills, 34 percent of respondents said it declined; only 19 percent said it had improved.

Source:
http://timesofindia.indiatimes.com

MicroSourcing Opens MS Caf�

Sun, 22 Aug 2010 00:00:00 -0800

To celebrate the official opening of the MS Caf�, MicroSourcing held a Free Food Friday last August 20. Breakfast, lunch, and snacks were served all day to employees and staff, who also enjoyed free beer and drinks at 6pm.

The MS Caf� is the restaurant of MicroSourcing, with a seating capacity of 100. This is one of the facilities in the new and bigger office of the company at the 6th floor of 1880 building at Eastwood City. Other facilities include a recruitment hub, locker rooms, a clinic, and storage rooms.

Acceptance of Outsourcing Boosts RP BPO

Fri, 20 Aug 2010 00:00:00 -0800

In a recent industry forum and survey, the Philippine BPO industry is benefiting from the increasing acceptance of outsourcing.

BPO executives are confident that the industry will gain momentum in the next 12 months as about 80 percent of BPO firms intend to increase their workforce between six and 80 percent. �Our previous survey showed a return to optimism in the industry. The current survey shows that sentiment achieving momentum,� said Oscar Sa�ez, CEO of Business Processing Association of the Philippines (BPAP).

Aside from the expansion in the workforce, the BPO industry is also seeing an expansion in the service offerings. From process-based, the industry is also offering high-value services including knowledge-based processes.

Moreover, survey respondents expect a stronger and better working relationship with the Aquino administration. The automated election and smooth transition of the administration also had a positive effect on client and investor perception of the country.

Source:
http://www.mb.com.ph

Indian Outsourcing Body Airs Concern over US Visa Fee Increase Bill

Wed, 18 Aug 2010 00:00:00 -0800

The National Association of Software and Services Companies (NASSCOM) criticized the passage of a US bill stating that visa fees for IT workers coming to the US will increase.

Already signed by President Barack Obama, the law is created to tighten security measures at the Mexican border following the immigration concerns in the US. On the side of the Indian outsourcing industry, NASSCOM President Som Mittal said �the US policy in question is sending a signal that is loud and clear that foreign persons are not welcome to the country.�

Many US companies outsource processes to India, and this law will negatively affect the outsourcing industry specifically those Indian workers who are transferred to the US.

Source:
http://www.groundreport.com

Gartner Predicts 11% Growth in Global Security Software Revenue

Tue, 17 Aug 2010 00:00:00 -0800

From $14.8 billion in 2009, the global security software revenue will increase 11 percent to $16.5 billion this year, according to research and advisory firm Gartner.

"Most segments of the security software market will continue to grow over the next few years, although a significant degree of variation is expected between the more-established and less-mature technologies," said principal research analyst Ruggero Contu in a statement. "Overall, security will remain one of the fastest-growing areas within the enterprise software market."

When it comes to security vendors, Contu said those with maintenance and license options, as well as software-as-a-service (SaaS) and outsourcing offerings will have a bright future due to increased competition as a result of lower discretionary budgets.

Source:
http://www.darkreading.com

UK SMEs Prefer IT Freelancers to Full-time Staff

Fri, 13 Aug 2010 00:00:00 -0800

In a research conducted by online firm PeoplePerHour.com, it was found out that small businesses are more likely to avail services of IT freelancers than hire full-time employees.

Out of 360 SME owners who took part in the research, 61 percent said they plan to invest more in IT and web technology. Thirty-eight percent said they intend to increase investment in utilizing IT freelancers. Only 18 percents intend to recruit full-time staff. Also, 43 percent believe that IT is something for freelancers and �not as supplements to in-house IT professionals�.

�The last decade has seen a boom in remote freelance working, facilitated by the internet. This has been led by the IT industry, which lends itself to freelancing,� said Xenios Thrasyvoulou, chief executive of PeoplePerHour.com.

Source:
http://www.channelweb.co.uk

RP Eyes 5% Share of Global Market for Healthcare Info Outsourcing

Wed, 11 Aug 2010 00:00:00 -0800

At a conference conducted by the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), Myla Rose Mundo-Reyes, HIMOAP president, said the Philippines is aiming to get five percent market share of the global healthcare info outsourcing industry. This means a lot of new job opportunities, or more than 100,000 jobs, for the country's nursing and allied medical professional graduates.

"The increased demand for electronic healthcare pens up huge career opportunities for nursing and allied medical professionals for medical coding, PHI entry and management, disease management and patient education and other services related to the administrative functions of a hospital, a home for the aged, and other medical centers," Mundo-Reyes said, adding that there are 400,000 nursing graduates in the country every year, so it is essential to gain this market share to manage the surplus.

The country currently has 50 companies offering medical transcription services including medical coding, medical billing, and claims processing.

Source:
http://www.malaya.com.ph

RP BPO Sees Market Potential in Medical Transcription

Tue, 10 Aug 2010 00:00:00 -0800

After voice-based outsourcing or call center work, medical transcription outsourcing seems to be the next niche to be tapped, considering that the country has a pool of workers with English proficiency and educational background in the field of medicine.

Five years ago, there were more than 100 companies offering medical transcription services in the country. However, Myla Rose M. Reyes, Medical Transcription Industry Association of the Philippines, Inc. (MTIAPI) president and managing director of Total Transcription Solutions, Inc., said that number is now down to 50. The decrease in number of medical transcription companies is due to factors including output quality, competitive market, and the state of the economy. �While the Philippines maintains its reputation for better quality medical transcription, the thinning price points and margins are limiting the local companies' ability to offer attractive career options and compensation packages for medical transcriptionists,� she said.

The training is also another challenge in medical transcription outsourcing. Reyes said workers need several months to acquire the necessary skills, but she is still confident of the market potential of this niche.

Source:
http://www.bworldonline.com

Study Shows BPO Workers' Eating Habits, High Caffeine & Alcohol Intake

Fri, 6 Aug 2010 00:00:00 -0800

A study conducted by the University of the Philippines (UP) Population Institute reveals that many BPO workers in the country do not regularly eat three meals daily and they consume a lot of fast food items, coffee, and alcohol.

The survey entitled �Lifestyle and Reproductive Health Issues of Young Professionals in Metro Manila and Metro Cebu� shows only 47 percent of call center workers regularly eat three meals daily, with female workers getting a higher percentage of those who skip meals. Also, BPO workers regularly eat fried chicken (78 percent), chips (54 percent), fries (53 percent), and burgers (49 percent).

When it comes to caffeine intake, two-thirds of survey respondents drink coffee on a daily basis - call center workers drink 2.3 cups, while non-call center employees drink 1.7 cups daily.

Instead of going to parties and other gimmicks, the study reveals that BPO workers prefer to go drinking. Seventy-two percent of call center workers and 51 percent of non-call center workers said it is their most common leisure activity.

Source:
http://www.abs-cbnnews.com

Everest: Global Outsourcing Contracts Up 6.6% in Q2

Thu, 5 Aug 2010 00:00:00 -0800

The global outsourcing industry ended the second quarter of 2010 with a 6.6 percent increase in number of deals compared to figures posted in the same period last year, according to Everest Group. Q2 outsourcing deals also rose 12.1 percent compared to first quarter of this year.

This increase in global outsourcing activity can be attributed primarily to BPO contracts, while IT deals only had a slight increase. �This is because BPO operations tend to be more in sync with running day-to-day business (functions such as customer support and back-office), while in the case of IT, it is more discretionary and involves project-based work where clients are still cautious,� said Mr. Amneet Singh, Vice-President, Global Sourcing. Everest added that clients arrange IT outsourcing work into smaller deals, which explains the decline in the annual contract value (ACV) of IT contracts.

Source:
http://www.thehindubusinessline.com

RP BPO Sector Expects Significant Growth in 12 Months

Wed, 4 Aug 2010 00:00:00 -0800

A survey conducted by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) reveals that the business process outsourcing (BPO) sector of the country will see significant growth in the next 12 months.

Sixty-five percent of respondents are confident that their business will grow between six and 50 percent, while 15 percent believe their firms will see an even faster growth. Moreover, survey participants are looking forward to more improvements for the industry under the Aquino administration.

BPO companies are optimistic, but lack of qualified workers remains to be a major concern, and this is getting more and more critical as it will greatly affect the growth of the industry. In addition to this, the tight labor market for knowledge workers is another challenge, according to almost 50 percent of the survey respondents.

Source:
http://www.mb.com.ph

ILO: RP BPO Jobs of �Good Quality�

Mon, 2 Aug 2010 00:00:00 -0800

When it comes to wages and working conditions, jobs in the Philippine BPO industry are of �good quality�. This is based on a study from the book �Offshoring and Working Conditions in Remote Work�, written by Jon Messenger, a senior researcher with the Conditions of Work and Employment Programme of the International Labor Organization (ILO), and co-edited by Naj Ghosheh.

According to the study, Filipino BPO employees work 44.7 hours per week, which can be considered as quite reasonable. Meanwhile, BPO workers get an average monthly salary that is 53 percent higher than the minimum salary received by those who work in other industries.

However, the study found out that 47.7 percent of Filipino BPO workers who took part in the survey are experiencing insomnia, and more than half are suffering from fatigue. �Workers, especially in call centers, have also relatively low autonomy. Their jobs typically involve heavy workloads backed by performance targets and tight rules and procedures enforced by electronic monitoring which are known to produce high levels of work-related stress,� the authors said.

Source:
http://www.dole.gov.ph

Nasscom Predicts Indian IT-BPO to Provide 30 Million Jobs by 2020

Fri, 30 Jul 2010 00:00:00 -0800

Trade body Nasscom forecasted that for the next decade, the IT-BPO industry in India will create 30 million jobs -10 million from direct employment and 20 million from indirect employment.

�There has been a 6-fold increase in direct employment. The number of direct employees in 2001 was around 4.3 lakh and now it has zoomed up to 23 lakh in 2010,� said Nasscom president Som Mittal. He added that best practices in the IT-BPO industry must be adopted, and firms must follow ethical hiring and perform background checks for workers.

At present, 37 percent of employees in the IT-BPO industry are women - 26 percent of which are chief wage earners. By 2020, about five million women employees are expected to be employed in the industry.

Source:
http://economictimes.indiatimes.com

Asia-Pacific Sees Slow Outsourcing Activity in First Half of 2010

Thu, 29 Jul 2010 00:00:00 -0800

The Asia-Pacific region posted a total contract value (TCV) of US$2.3 billion for the first six months of the year. This is significantly lower than 2009's US$5.5 billion TCV for the same period.

According to TPI Index Asia-Pacific, this can be attributed to the slow outsourcing activity in the region, particularly the significant drop in the number of mega deals and contracts amounting to more than US$200 million, though Michael Rehkopf, partner and director of North Asia at TPI, said the market can still improve the figures. "In order to reach 2009 level, the industry will require a record US$8.7 billion TCV in the second half of 2010."

The region needs to close several mega outsourcing deals worth over US$200 million within the year to reach US$11 billion. While the industry had secured 18 BPO contracts and another 10 deals will be awarded within the year, these are considered small contracts when it comes to calculating TCV.

Source:
http://www.zdnetasia.com

RP BPO Urged to Penetrate European Outsourcing Market

Tue, 27 Jul 2010 00:00:00 -0800

The European Chamber of Commerce and Industry in the Philippines (ECCP) urged BPO stakeholders in the country to tap and maximize the European outsourcing market.

According to ECCP Executive Vice President Henry Schumacher, the Philippines can have a bigger piece of the market compared to what India currently has. �Since Europe is also aggressively looking at opportunities from emerging countries in the East, now is the time for the entire Philippines to explore Europe since it is also the largest business process outsourcing market.�

Web design, IT, human resources, and back-office functions are some of the processes that can be outsourced to the Philippines. To take advantage of the European outsourcing market, Schumacher said the Philippines must initiate campaigns that will enable Filipino workers to have a better understanding of the European culture. He added that branding and highlighting what Filipinos can do will play a big role to help the country in tapping the foreign market.

Source:
http://www.mb.com.ph

Egypt becoming more and more Attractive to IT Firms

Mon, 26 Jul 2010 00:00:00 -0800

In a relatively short span of time, Egypt has become a very favorable outsourcing location for IT companies.

With its low cost of living and a pool of highly skilled workers, the country now offers value similar to that of India when it comes to outsourcing costs, although the former still has its own advantages such as its geographic location, large number of graduates, and language skills. Banks like HSBC, IT firms such as Microsoft, and telecommunications companies including Vodafone and France Telecom have already set up operations in Egypt.

�Factors such as the stability and growth of the Egypt economy; a concentrated pool of talent in Egypt and our historically strong relationship with the Egyptian government have all led to a favourable environment for the technical support of Microsoft Xbox to be located in Egypt,� said Aly Kamal, a spokesman for Microsoft Egypt.

Source:
http://www.thenational.ae

RP BPO Fuels Expansion of Fastfood Chains

Fri, 23 Jul 2010 00:00:00 -0800

The rapid growth of the business process outsourcing (BPO) industry is driving the expansion of fastfood chains in Metro Manila.

CEO and President of Binalot Food Fiesta Rommel Juan said fastfood chains see a 15 percent sales increase particularly in known BPO areas such as Makati, Libis - Eastwood, Sucat, Ortigas, and Alabang. Surge in sales and expansion can also be attributed to the fact that the industry operates 24/7.

�This has boosted the local economy, creating more jobs and business opportunities not only for services catering to the increasing number of BPO workers,� Juan said.

Based on a different report, the country's BPO industry is on its way to reaching its revenue goal of $9.4 billion for 2010. After six months, the industry had already posted $4.7 billion in revenues.

Source:
http://www.mb.com.ph

BPOs Urged to Reduce Job-related Stress, Stop High Attrition Rate

Thu, 22 Jul 2010 00:00:00 -0800

To stop the high attrition rate, which can be attributed to work-related stress, in the business process outsourcing (BPO) industry of the Philippines, the International Labor Organization (ILO) urged BPO companies in the country to implement policies designed to give employees more flexible decision-making opportunities and eventually reduce stress brought about by their working conditions.

ILO senior researcher John Messenger said there is also a need to implement stringent ways to ensure the health and safety of BPO workers who are on night shifts. "This is a rapidly growing industry worth and approximate $90 billion. A lot has been written about this phenomenon and its implications for economic growth and employment. However, very little is known about the working conditions in the BPO industry," Messenger said.

Messenger added that in the study they have conducted, 49.2 percent of Filipino BPO employees noted that stress is a major concern. This can be due to harassment from clients, too much workload, monotony, and/or night shifts.

Source:
http://www.malaya.com.ph

Survey Reveals Slow IT Outsourcing Growth in Europe

Wed, 21 Jul 2010 00:00:00 -0800

According to the recent survey by sourcing consultancy firm Equaterra, the demand for IT outsourcing in Europe registered a slow growth rate of five percent in the second quarter of 2010.

Compared to 45 percent in the first quarter, only 40 percent of global sourcing advisers surveyed believed that the demand for IT outsourcing in Europe had increased. Moreover, 55 percent (36 percent in the first quarter) said there is slow activity in the economic environment, making business owners think twice about their outsourcing plans.

BPO demand, IT outsourcing and services, and internal process improvements were some of the factors that were considered in this survey.

Source:
http://www.computerweekly.com

RP BPO Reaches Half of Projected Revenue Goal for 2010

Mon, 19 Jul 2010 00:00:00 -0800

According to the Business Processing Association of the Philippines (BPAP), the country's BPO industry had already posted $4.7 billion in revenues for the first half of the year. This is half of the $9.4 billion revenue goal projected for 2010, so the industry is right on track towards achieving that revenue projection.

Oscar Sanez, president of BPAP, is confident that with the present revenue growth, outsourcing will be the biggest service export for the country. He said the Aquino administration needs to find ways to attract foreign investors for the continuous growth of the country's economy. "Over the past years we have fallen behind Asean in FDIs [foreign direct investments]. We need to promote (ourselves more). FDIs will feed our future growth or else we have to rely on what we have," Sanez said.

Sanez added that in a survey conducted in the second quarter, more than half of BPAP members said they are expecting a growth rate of 6-50 percent in revenues and workforce.

Source:
http://www.malaya.com.ph

China Dethrones India as Top Outsourcing Destination

Fri, 16 Jul 2010 00:00:00 -0800

A survey from accounting firm KPMG revealed that for Asia-Pacific firms, China had surpassed India as the top location of choice for offshoring and outsourcing.

Out of 280 senior business leaders in Asia, 42 percent said they have established shared services centers in China, while 41 percent said they have an outsourcing partner in the country.

"Though at the moment the country has still not reached the level of maturity seen in India, the growth of China's outsourcing market is significant. Many Western companies may still see India as their location of choice, but for executives within Asia Pacific the message is clear - China is now leading the way," said Edge Zarrella, global head, IT Advisory, KPMG China.

Singapore was the second most popular outsourcing destination (29 percent), followed by India (25 percent).

Source:
http://english.peopledaily.com.cn

Study Shows most Outsourcing Players do not Manage Associated Risks

Thu, 15 Jul 2010 00:00:00 -0800

In a survey recently conducted by learning-based solutions provider ESI International, it was found out that more than half of outsourcing buyers and service providers are not able to effectively manage associated risks.

Out of the 615 respondents from North and South America, UK, Asia, Middle East, and India, 55 percent said their company is �not very effective� or �somewhat effective� when it comes to risk management. Thirty-five percent said their organization is �effective� and six percent noted that they are �extremely effective� in assessing the risks associated with outsourcing.

The study also reveals that only one-third of organizations define their financial goals to outsourcing partners, while 32 percent said they fail to continually assess outsourced work based on the goals they have set.

�With nearly two-thirds of organizations spending up to half of their budgets on outsourcing, there is a need to refine risk management capabilities in order to positively impact bottom line performance,� ESI International said.

Source:
http://www.property-casualty.com

Everest Report Shows Increase in Offshore Outsourcing Activity

Tue, 13 Jul 2010 00:00:00 -0800

Things are looking up again for the offshore outsourcing industry. As the economy bounces back from the global financial crisis last year, a report by Everest Research Institute shows the industry sees an increase in offshore outsourcing activity.

According to Anand Ramesh [CQ}, research director at Everest, US-based companies are now considering to transfer more work offshore, while other firms that have not outsourced work offshore before are now planning to do so in destinations with relatively low labor costs.

Based on the report, about 75 percent of small and medium-sized companies and 90 percent of large firms intend to expand outsourcing operations by more than 500 full-time employees over the next two years.

Meanwhile, Forrester Research principal analyst Sudin Apte [CQ] said this uptick in offshore outsourcing activity will increase demand for workers in offshoring locations. The Everest report added that more than 70 percent of buyers choose India as the location for their business expansion, followed by the Philippines and China.

Source:
http://www.pcworld.com

BPO Training for Disabled Youth Initiated in India

Mon, 12 Jul 2010 00:00:00 -0800

In an effort provide job opportunities for India's disabled youth and make them self-sufficient, the Samarthanam Trust for the Disabled recently launched a BPO training program for call center work.

According to Mahantesh G Kivadasannavar, founder and managing trustee of Samarthanam, this initiative will be able to train more than 300 disabled individuals, teaching them skills in technical and non-technical areas including accent training, customer service, call management, and client relations. "We want the disabled to be taxpayers of the country. They will not be a liability but an asset."

The BPO training unit, located at the Peenya Industrial Area, has facilities which are designed to cater to the needs of the trainees. Food and accommodation will be provided free of charge, and training sessions will include audio visual aids and simulation software.

Source:
http://timesofindia.indiatimes.com

Davao Eyed as Potential Hub by Major BPO Locators

Fri, 9 Jul 2010 00:00:00 -0800

Davao City ICT President Bert Barriga revealed that Davao is being considered by two of the biggest BPO locators (names were not disclosed) for their business. Should these BPO companies decide to start business operations in the province, they will recruit 20,000 full-time workers.

Aside from this, Barriga said Concentrix and Sutherland, two major BPO firms in Davao, are expected to increase their workforce. "We are now at the 7,000 level and we are expecting to hit the 10,000 mark of BPO workforce this year."

Davao was ranked number 1 in the list of Next Wave Cities for 2010, followed by Sta. Rosa, Bacolod City, Iloilo City, Metro Cavite, Lipa City, Cagayan de Oro City, Malolos City, Baguio City, and Dumaguete City. The list recognizes cities (outside Metro Manila) which have qualities that are suitable for IT-BPO operations.

Source:
http://www.pia.gov.ph

Accenture Initiates BPO Training for India's Underprivileged Youth

Thu, 8 Jul 2010 00:00:00 -0800

In an effort to educate underprivileged youth and enable them to find jobs and contribute to the economy, Accenture will work together with Dr Reddy's Foundation (DRF) and the Nasscom Foundation (NF) to provide training in business process outsourcing (BPO).

For this program, Accenture and DRF will train the facilitators who are selected by Nasscom. After the course, graduates can be hired to work for Accenture.

�Bringing BPO training to disadvantaged youth is part of Accenture's commitment to building skills that will help them sustain their families and their communities,� said Harsh Maglik, chairman and geography managing director, Accenture in India. �This effort is aimed at making a significant, lasting impact on the economic well-being of individuals who might otherwise become marginalized.� Similarly, Jitendra Kalra, CEO Dr Reddy's Foundation, is confident that this initiative of providing BPO training will make a big impact on the lives of underprivileged youth.

Source:
http://www.financialexpress.com

Protests Force Indian IT Firms to Close Down for a Day

Wed, 7 Jul 2010 00:00:00 -0800

Due to the nationwide protests of opposition parties as they criticize fuel price increases, several major IT services firms in India - TCS, Wipro, and Infosys - were forced to cease operations last Monday which turned out to be a holiday to observe the US Independence Day.

Infosys Chief Executive Krish Gopalakrishnan said they stopped operations last Monday, but arrangements were done so those who were assigned to take on BPO projects were still able to work. On the other hand, a Wipro spokesperson said work was not affected.

Nasscom, India's software industry trade body, warned that this had a negative impact on the position of India as an outsourcing destination. According to Sangeeta Gupta, vice president of Nasscom, if the US Independence Day was not observed last Monday, the one-day stoppage of operations would have a much greater impact to the industry. �For the BPOs, the impact was less and the holiday in the US came as a blessing in disguise, but for the IT companies... the business sentiment got hit,� Gupta said.

Source:
http://www.information-age.com

Surge of BPO Seen as ICT Milestone in Arroyo Administration

Thu, 1 Jul 2010 00:00:00 -0800

During the Gloria Macapagal-Arroyo administration, the Philippines had witnessed a dramatic surge of the BPO industry and improvement in the Information and Communication Technology (ICT) sector. This is according to Ray Anthony Chua, Chairman of the Commission on Information and Communication Technology (CICT).

The BPO industry has been a key driver for economic growth. Chua said the industry registered more than US$7 billion in export revenues in 2009. Having been recognized twice by UK's National Outsourcing Association as the Offshoring Destination of the Year, the Philippines has already made its presence known as one of the leaders in the field of ICT. "Now we are seen as the number 2 player in the world next to India which is something for a country of our size and our level of development." The industry currently employs approximately 500,000 workers.

Chua added that the first automated elections held last May and the initiative of providing computer laboratories in 5000 schools are other ICT milestones under Arroyo's watch.

Source:
http://www.pia.gov.ph

Egypt Bags Offshoring Destination of the Year Award

Thu, 1 Jul 2010 00:00:00 -0800

Egypt was recognized as the Offshoring Destination of the Year at the 2010 European Outsourcing Association (EOA) Awards held in Brussels. The award was received by Dr. Hazem Abdelazim, CEO of Egypt's Information Technology Industry Development Agency (ITIDA).

According to Dr. Tarek Kamel, Minister of Communications and Information Technology, Egypt has made its mark in the outsourcing industry. "This award recognizes the outstanding progress Egypt has made in the last year as a global outsourcing destination. The country's credibility is going from strength to strength amongst European companies and has put its mark on the map of favored global services locations.�

With Egypt's multilingual capabilities and infrastructure, EOA Chairman Martyn Hart said the country has secured its place as a strong outsourcing player.

Source:
http://www.prnewswire.com

BPO Firm Opens IT Training Course Center in Davao

Mon, 28 Jun 2010 00:00:00 -0800

Concentrix Institute recently opened a test center for IT training and certification in Davao, the first of its kind in Mindanao. According to Concentrix site director Gary Dumael, this was done to meet the increasing demand for IT specialists in the BPO sector. The number of graduates in the IT field is not enough to meet this requirement.

Concentrix Institute's 33-day training course includes classroom discussion and hands-on training. It makes use of state-of-the-art equipment and facilities. With this newly-opened test center, graduates from Mindanao no longer have to go to Cebu or Manila to take the Cisco Certified Network Associate (CCNA) certification exam.

"We are helping the academe cope with this gap by providing our own training course and opening a certification window through Pearson VUE as its Authorized Test Center for the Cisco Certified Network Associate," Dumael said.

Source:
http://www.pia.gov.ph

CIOs Aim to Get more Value out of Outsourcing Contracts

Thu, 24 Jun 2010 00:00:00 -0800

In the latest study, �From Cost to Value�, by global consultancy firm KPMG International, clients may be putting more pressure on their service providers as they aim to get more value out of their outsourcing deals.

Out of the 450 Chief Information Officers (CIOs) who took part in the survey, more than two-thirds said they would bring more pressure on service providers to get more value out of their contracts, while 81 percent said their top priority would be to get more value from IT.

"Understandably, CIOs are pursuing value by reviewing outsourcing arrangements and retaining a firm focus on cost optimization, for example," KPMG's UK advisory partner, Bryan Cruickshank, said.

The survey also reveals that 58 percent of respondents put cost optimization as second on their priority list, followed by portfolio management (51 percent).

Source:
http://beta.profit.ndtv.com

Cebu Poised to become KPO Hub

Wed, 23 Jun 2010 00:00:00 -0800

Information Technology consultancy firm Tholons and the Cebu Investment Promotions Center (CIPC) signed a memorandum of understanding that aims to craft a road map which will push Cebu to become an ideal outsourcing destination for higher-value services.

Knowledge process outsourcing or KPO means transferring work that requires highly specialized skills and experience to a service provider. This includes IT, research and analysis, as well as financial and legal tasks.

With the province's outsourcing capability, pool of available workers, and other factors suitable for outsourcing, Jonathan D. de Luzuriaga, Tholons managing director for Southeast Asia, said Cebu is poised to become an ideal destination for KPO work. "Cebu is basically ripe for this (KPO). It has all the requisites needed for a city to become a KPO hub.�

The study will include implementation of online tests to determine whether or not the talents of Cebu's workforce are suitable for KPO requirements. According to Joel Mari S. Yu, CIPC managing director, the road map will determine the position of the province in the KPO industry, and match skills of workers with what the industry demands.

Source:
http://www.bworldonline.com

Rivals Force Indian BPOs to Establish Global Delivery Centers

Tue, 22 Jun 2010 00:00:00 -0800

As offshoring destinations like the Philippines gain traction and onshoring activity in Latin America picks up, business process outsourcing (BPO) companies in India are forced to focus on global delivery models and set up new overseas delivery centers.

Nearshoring is also picking up. According to Deepak Patel, CEO, Aditya Birla Minacs, a BPO firm needs to have both nearshoring and offshoring solutions in order to stay competitive.

Industry experts said this shift to near-shore option can be attributed to the fact that from low-cost business models, new ones now focus more on value instead of cost. This is another factor that pushes Indian BPO firms to set up new global delivery centers. �The next-generation business models are no more about cost, but value. Just because something is cheaper does not mean it has value,� Patel said.

Source:
http://economictimes.indiatimes.com

IBM Brings Cloud Computing Technology to RP

Mon, 21 Jun 2010 00:00:00 -0800

Cloud computing, the technology that enables people to gain access to services and storage via the Internet cloud, is now in the Philippines, thanks to global information technology pioneer IBM.

�Cloud computing is an important new consumption and delivery model for and business services. Based on two years of research, [this could] help clients turn complex business processes into simple services," said Daryl Tan, IBM regional service platform manager.

According to IBM, cloud computing can help reduce a company's expenses in hardware and software maintenance by 40 percent. With cloud computing, business owners can gain access to company data virtually anywhere as long as there is an Internet connection. Remote employees can also access business information of clients, making the technology an ideal tool for financial firms and companies in the business process outsourcing sector.

Source:
http://www.gmanews.tv

MicroSourcing Set to Open New Office in Eastwood City

Thu, 17 Jun 2010 00:00:00 -0800

In a few days, it is expected that MicroSourcing will occupy the new and bigger office located at the 6th floor of 1880 Avenue building in Eastwood City.

At 2700sqm, the new office has a capacity of about 500 project workstations and 50 management seats. This is 30 percent larger than the office at eCommerce Plaza building. According to CEO Philip Kooijman, the company aims to use the remaining 900sqm by the end of this year as the company further expands. When it happens, MicroSourcing will occupy the entire 6th floor.

The work floor is now divided with partition walls to provide more privacy to the different projects. It features five conference rooms and a training room that can accommodate 18 people.

The new office also has areas for recreation with TV and video games, as well as a much bigger MS Caf� with a seating capacity of about 100. New facilities include a recruitment hub, locker rooms, a clinic, and storage rooms.

Microsoft to Tap Manufacturing, Export, BPO Markets in Cebu

Wed, 16 Jun 2010 00:00:00 -0800

For Information Technology solutions company Microsoft, focusing on Cebu's manufacturing, export, and outsourcing industries will drive the growth of the company this year.

According to John Bessey, Microsoft Philippines, Inc. managing director, the company can provide the technology tools that people need. �We are also seeing a trend in the demand for cloud computing and products that can make collaboration easier. We are proud to say that we have just about all the products needed for personal computing, mobile computing, and browsing,� Bessey said.

Aside from providing what Mike Tuohy, general manager for the Asia Pacific Region, said as new wave products such as Office 2010, Vision 2010, and Sharepoint 2010, Microsoft also plans to facilitate more information campaigns to educate people about the importance of buying and using licensed and legitimate software.

Cebu City recently launched the IP Seal campaign to increase awareness on intellectual property rights (IPR) protection, further improve the IT sector, and boost the position of Cebu as a major outsourcing hub.

Source:
http://globalnation.inquirer.net

Bacolod Ranked Third in List of Top 10 Next Wave Cities

Tue, 15 Jun 2010 00:00:00 -0800

From the 5th spot last year, Bacolod moved up two notches to No. 3 in the list of Top Ten Next Wave Cities for IT and BPO. This is based on infrastructure, business environment, crime rate, and other factors.

According to Mayor Evelio Leonardia, this recognition can be attributed to the continued trust of businessmen in the government, infrastructure, among others. Bacolod was also named as the country's Most Business-friendly City. Recognizing the big role of outsourcing in the local economy, Leonardia said they will continue to initiate programs that will help provide more job opportunities in the IT industry for the people of Bacolod.

This recognition for Bacolod was awarded by the Commission on Information and Communications Technology, Business Process Outsourcing Association of the Philippines, as well as the Department of Trade and Industry.

Here's the list of Top Ten Next Wave Cities for IT and BPO:

Davao
Sta. Rosa
Bacolod
IloIlo
Metro Cavite
Lipa
Cagayan de Oro
Malolos
Baguio
Dumaguete

Source:
http://www.thenewstoday.info

The 25 Most Dangerous Outsourcing Spots in 2010

Fri, 11 Jun 2010 00:00:00 -0800

In the annual survey conducted by the Datamonitor Group on the riskiest cities for offshore outsourcing, industry buyers and corporate development leaders ranked Karachi, Pakistan as the most dangerous outsourcing location, followed by Medellin, Colombia, and Juarez in Mexico. According to an article by Stephanie Overby, the said cities were labeled as such because of crime rates, corruption, geopolitical risk, and terrorist threats.

Last year, Manila, Philippines was included in the list of riskiest outsourcing locations, but managed to move out of the list as successful service providers gave some positive light to the outsourcing hub.

The 25 Most Dangerous Cities for Offshore Outsourcing

1. Karachi, Pakistan
2. Medellin, Colombia
3. Juarez, Mexico
4. Cali, Columbia
5. Tijuana, Mexico
6. Lahore, Pakistan
7. Jakarta, Indonesia
8. Lagos, Nigeria
9. Dhaka, Bangladesh
10. Chittagong, Bangladesh
11. Amman, Jordan
12. Khulna, Bangladesh
13. Faisalabad, Pakistan
14. Rawalpindi, Pakistan
15. Port-au-Prince, Haiti
16. Managua, Nicaragua
17. Chihuahua, Mexico
18. Ljubljana, Slovenia
19. Tashkent, Uzbekistan
20. Bandung, Indonesia
21. Kingston, Jamaica
22. Tel Aviv, Israel
23. Colombo, Sri Lanka
24. Johannesburg, South Africa
25. Accra, Ghana

Source:
http://www.networkworld.com

Paulo Cabantog Wins Summer Survivor Photo Contest

Thu, 10 Jun 2010 00:00:00 -0800

Senior Software Developer Paulo Cabantog from Web Guide Partner (MicroSourcing Managed Projects) won the Summer Survivor Photo Contest facilitated by HCSDG during the company outing last May 22 at Aguas Azules in Binangonan, Rizal. Mr. Cabantog will receive Php 2000 for his winning photo entry.

Project Manager Christian Malubag (EV), Graphic Designer Stephen Pe�a (CSG), and Flash Designer Elvis Garcia (CSG) judged the photo entries based on the following criteria: innovation, originality, and creativity, relevance to the theme, and image quality and robustness.

According to Employee Relations Officer Mia Espinosa, the photo contest was held to give MicroSourcing employees an avenue to share their talent in photography and their own interpretation of the Summer Survivor experience.

Egypt Poised to become Key Outsourcing Destination

Wed, 9 Jun 2010 00:00:00 -0800

Having the key factors needed for outsourcing, Egypt is ready to become a major outsourcing hub. According to Hossam Megahed, board member for Egypt's Information Technology Industry Development Agency (ITIDA), the country's infrastructure, business environment, and pool of multilingual workers have attracted investors to outsource business processes in Egypt.

"The presence of high-profile companies like IBM, Microsoft and Vodafone in Egypt today highlights ITIDA's continued success at building the country's reputation as a global service delivery location," Megahed said.

The 11.3 percent growth rate of the Information and Communication Technology (ICT) industry in Egypt propelled the economy to reach a growth rate of 5.8 percent in the first quarter.

Source:
http://www.tradearabia.com

Slower Growth Seen in Indian IT Industry

Tue, 8 Jun 2010 00:00:00 -0800

Technology and market intelligence firm Forrester Research warned that India's IT industry will see a slower growth rate in the next few years due to ��disenchantment� with mega deals, as well as lack of strong bounce back effect.

�There is a sense of disenchantment with large-scale IT outsourcing. Companies have realized that whole-scale IT outsourcing leaves you much more exposed. They are likely to go for more granular deals in the future,� said Andrew Bartels, principal analyst at Forrester Research. The industry will see slower growth and there may be no mega outsourcing deals over the next few years.

US IT outsourcing will grow by about six percent. The growth rate of IT consulting and deployment services will reach 6.8 percent, while software will register 11.5 percent growth rate over the next two years.

Source:
http://www.dnaindia.com

Gartner Sees 25-30% Annual Growth Rate for Indian KPO

Mon, 7 Jun 2010 00:00:00 -0800

The growing demand for professional, higher-level services will drive India's KPO market, with current estimated market size of $50-70 million, to reach an annual growth rate of 25-30 percent until 2013. This is according to Gartner, a global research firm.

"The rising demand for profession-based services is expected to drive the growth in the industry. They include research for capital and financial markets, para legal works, editing jobs for international publishing houses among many others," Gartner Research Director (Technology & Service Provider Research) Tervinderjit Singh said.

Singh added that India is still the number one offshoring destination. The Philippines and Indonesia are emerging offshoring locations but �these countries are still not mature enough in high-level professional work which India can provide with the strong skill sets available here."

Source:
http://www.hindustantimes.com

Forrester Predicts 9.3% Increase in Global IT Spending

Fri, 4 Jun 2010 00:00:00 -0800

Technology research firm Forrester predicted an increase of 9.3 percent in the global IT market this year. This will be driven by increase in spending on software and computer equipment, according to Andrew Bartels, vice-president and principal analyst. He said US IT outsourcing services will reach $91 billion this year and grow to $97 billion in 2011.

It is expected that US IT spending will grow 11 percent this year, while an increase of 10.5 percent is predicted in software spending. �The 2009 tech downturn was shallower and shorter than the 2001-02 US tech depression,� Bartels said. He added that professional services companies, financial services firms, and the government sector will be the biggest IT spenders.

On the other hand, Bartels said IT outsourcing will continue to grow, but growth rate will be slower.

Source:
http://economictimes.indiatimes.com

RP BPO Expects 26% Growth Rate this Year

Thu, 3 Jun 2010 00:00:00 -0800

From a 17 percent increase posted in 2009, the business process outsourcing (BPO) sector is eyeing a growth rate of 26 percent this year.

According to Ray Anthony Roxas-Chua, chairman of the Commission on Information and Communications Technology (CICT), the sector earned $7.2 billion last year, and demand for outsourced work is increasing as global economy continues to bounce back from the recession. "This year, with the global economy coming back, we're expecting a growth of 26 percent. We're building a name for ourselves as a preferred offshore destination," Roxas-Chua said. He added that the country needs to focus on developing talent to stay competitive.

As for the proposed US bill that will impose tax on customer service calls and encourage firms to bring call center jobs back to the US, Roxas-Chua is confident that it would not push through as many American companies will not support it.

Source:
http://www.philstar.com

RP Call Centers Air Concern over Proposed US Bill

Wed, 2 Jun 2010 00:00:00 -0800

Contact centers in the Philippines were alarmed at the US bill proposed by Democratic Sen. Charles Schumer as this may force US firms to stop outsourcing voice-based work to foreign locations.

In the proposed bill, companies are required to inform customers that their calls are being outsourced outside the US, and to which country. A $0.25 excise tax will be imposed for every customer service call transferred to another country. In a statement, Schumer said this bill will encourage companies to bring call center jobs back to and maintain current ones in the US.

According to Jojo Uligan, corporate secretary and executive director of the Contact Center Association of the Philippines (CCAP), outsourcing to the country enables US firms to save up to 30 percent. Once passed, the bill might force American companies to stop transferring call center work to a foreign country.

Source:
http://businessmirror.com.ph

Report Shows Drop in IT Security Outsourcing

Tue, 1 Jun 2010 00:00:00 -0800

From 22 percent in 2007, 18 percent of CIOs surveyed said they outsource IT security, and only seven percent plan to outsource in the next two years. This is based on a report recently released by market research firm Ovum.

Rhonda Ascierto, senior analyst at Ovum, said activity in IT security outsourcing slowed down in IT-related management aspects namely security, IT systems management, and content management. However, this drop does not necessarily mean that service providers cannot meet the needs of buyers. �This doesn't translate into poor performance of outsourcers in this area - it's quite feasible that a number of CIOs chose to cease outsourcing security during the downturn as a way to gain more control and flexibility over their IT operations at a time when their businesses faced considerable change and uncertainty,� Ascierto said.

Source:
http://www.mspmentor.net

Study Reveals Rise in Number of Indian BPO Workers who Smoke

Fri, 28 May 2010 00:00:00 -0800

A new study in India found out that there is an increase in the number of BPO workers who smoke. In this 18-month study with 646 participants, 41 percent were habitual smokers, eight percent of which were women. Seventeen employees opted hookah, while others consumed smokeless kinds of tobacco.

Researchers said that employees find smoking effective in relieving stress and overcoming boredom. Peer pressure and high disposable income also contribute to the growing number of smokers in the BPO sector.

�This group learns to smoke in packs. They largely smoke during break time where smokers and non-smokers intermingle. The non-smokers, because of being in constant touch with the smokers, become passive smokers and eventually active smokers which is the prevailing trend,� said Dr. Gauravi Mishra, lead researcher of the study and consultant department of preventive oncology at Tata Memorial Hospital (TMH).

Source:
http://www.themedguru.com

SME Sector in India and Germany Poses BPO Opportunities

Thu, 27 May 2010 00:00:00 -0800

Indian companies must tap the SME sector in India and Germany for IT, BPO, and engineering services. This is according to the �Opportunities for Indian IT - BPO industry in Germanic Countries� report from the National Association of Software and Services Companies or NASSCOM, in association with consulting firm PricewaterhouseCoopers.

�There is a huge demand in the SME sector that has largely remained untapped, and verticals like automobile, manufacturing, and logistics have emerged as quick-win opportunities for Indian companies,� said Sankar, executive director at PricewaterhouseCoopers.

It was found out that there's a huge BPO opportunity in the mid-market segment of Germany. Indian IT companies with a large pool of technically skilled employees should forge partnerships with German firms from that segment.

India is one of the preferred offshoring destinations of Germanic companies, while Eastern Europe and CIS states are favorable locations for nearshoring.

Source:
http://www.ciol.com

Cebu Business Park Turns into IT Park for more BPO Firms

Wed, 26 May 2010 00:00:00 -0800

With the growing interest of BPO companies to relocate operations in Cebu, Ayala-owned 50-hectare Cebu Business Park was proclaimed as an IT park by the government.

�We realized that a number of BPOs have expressed interest to locate in Cebu because Cebu is the number one destination for BPO firms. We have to take advantage of that by putting up facilities and improving our infrastructure,� said Francis O. Monera, president of Cebu Holdings Inc.

Monera said the province attracts investors because of lower costs of salaries and cost of living. These make setting up a BPO center in Cebu less expensive. As an IT park, lot owners no longer have to get individual approval from the Philippine Economic Zone Authority. �All they have to do now is register with PEZA as IT building developer to be able to avail of government tax and fiscal incentives,� he said.

Source:
http://www.mb.com.ph

Indian BPOs Strengthening Onshore Presence

Tue, 25 May 2010 00:00:00 -0800

After dominating the offshore outsourcing market particularly for clients in the US and UK, Indian BPO companies are now pushing for a much better onshore presence for new business opportunities in financial services and healthcare.

"The BPO industry earlier was almost everything offshore unlike the IT sector, which always maintained a strong onshore presence. For BPOs, offshore will continue to play a critical part because of the cost and quality advantage," Patni senior vice-president and global head BPO Sanjiv Kapur said. "But from a BPO perspective, it is changing from a 95-97 percent offshore model to a 70-75 percent offshore model, with 25 percent of the work being done onshore."

Unlike offshore outsourcing in which tasks are outsourced to a firm located in another country, onshore outsourcing refers to the process of transferring work to a company in the same country.

Source:
http://economictimes.indiatimes.com

MicroSourcing Beats the Heat at Summer Survivor

Mon, 24 May 2010 00:00:00 -0800

MicroSourcing hosted the company outing with the theme �Summer Survivor� at Aguas Azules, Eastridge, Binangonan, Rizal last May 22.

The employees, members of the management team, and clients were welcomed with bracelets fit for the occasion. After the opening remarks from Operations Manager Maricel Salao, the outing kicked off with the company's version of the Amazing Race. Five teams had to stop at stations and do tasks including bucket filling, human knot, neck and knee race, toxic river, and obstacle course. Team 1 came out victorious as they were the fastest to finish eight wet and wild tasks. The winning team received Php 4000 plus gift packs.

Best Dressed awards were handed to Jack Arafat (Ask Staffing) and Tamera Szijarto (WGP). Gift packs were also given to employees who entertained guests with their videoke performances. Of course, a MicroSourcing party would not be complete without free-flowing beer and The Bar courtesy of Emperador Distillers.

After the race and closing remarks from Ramie Rosima Jr., manager of Human Capital Strategy and Delivery Group (HCSDG), most party guests took the plunge and slid their way to the huge swimming pools of the resort, while the others relaxed, drank beer in cabanas, and mingled with employees from other projects and departments.

Race to Summer Winners Announced

Fri, 21 May 2010 00:00:00 -0800

After about two months of finding skilled individuals and referring them to MicroSourcing, John Benedick Cabang (individual category) and Team Maren Lacanilao (team category) were named as the winners of Race to Summer in an awarding ceremony held last May 19. Mr. Cabang received Php 10,000 while Team Maren got Php 50,000.

Facilitated by the Manpower Acquisition Department, Race to Summer was a special referral program for Yell Adworks, one of MicroSourcing's fast-growing clients. Its goal was to find excellent candidates through recommendations of Yell employees.

From March 3 to April 30, the program was able to gather a total of 44 successful referrals out of 346 recommendations.

According to Back Office Team Leader Michelle Sacramento, a referral program like Race to Summer is an effective recruitment tool. �Compared to giving out signing bonuses to new employees, Race to Summer turned out to be more cost-effective and a better strategy in finding good talents. The program is not just a good tool in finding qualified candidates. It also helps hype up a work environment which is a good way to retain employees.�

Aside from the cash prizes, gift certificates from various establishments were also given to 10 Yell employees daily (1 referral = 1 GC).

Ms. Sacramento said the department plans to facilitate more programs like this in which all MicroSourcing employees will be encouraged to participate.

Ayala's Integreon Bags $852M Outsourcing Contract

Wed, 19 May 2010 00:00:00 -0800

Integreon, an Ayala-led BPO unit, had closed a 10-year outsourcing contract worth $852 million with UK-based CMS Cameron McKenna, one of the largest law firms in the world. This is said to be the biggest deal of its kind in the legal outsourcing industry.

According to Duncan Weston, CMS Cameron McKenna managing partner, they chose Integreon because of its worldwide network of experienced professionals.

Some of the tasks that will be outsourced are accounting and finance, HR, marketing and communications, research, and IT.

�By outsourcing nonbillable tasks to Integreon, which is majority owned by LiveIt, Ayala Corp.'s BPO holding company, CMS Cameron McKenna can focus on its core competency - providing high-end legal and tax services,� Ayala Corp. said. "CMS Cameron McKenna's decision to outsource its Middle Office is part of its ambitious and progressive strategy to create a new model for law firms.�

Source:
http://business.inquirer.net

Employers, Labor Groups Keen on Amending Labor Code

Tue, 18 May 2010 00:00:00 -0800

There are provisions in the Labor Code that must be amended, and the Employers Confederation of the Philippines (Ecop) had expressed their willingness to work with the Trade Union Congress of the Philippines (TUCP) to make the necessary changes.

According to Ecop president Miguel Varela, amendments must be made in the Labor Code so companies can be more competitive. One �outdated� provision that they want to be amended is the legal prohibition on night work for female employees. �In the 24-hour-duty cycle of the business process outsourcing, or BPO, industry alone, we now have more than 500,000 workers, the majority of whom are women,� said TUCP secretary general Ernesto Herrera. �The outright ban on night work for women has been rendered outmoded by the rapidly changing times.� TUCP added that the issue on labor subcontracting must also be discussed.

Source:
http://businessmirror.com.ph

Egypt's 5.8% Q1 Growth Rate Driven by ICT Sector

Mon, 17 May 2010 00:00:00 -0800

Egypt's Information and Communications Technology (ICT) sector posted a growth rate of 11.3 percent. This helped the country's economy to grow 5.8 percent in Q1 of 2010.

When it comes to outsourcing, Egypt got big deals from Sykes Enterprise and Stream Global Services and other companies in 2009. "We have had a positive start to the year with new companies investing and local companies developing and expanding their capabilities and services. We are confident that the sector will continue to grow during the remainder of 2010 and that we will see more multinational companies expanding and outsourcing their business to Egypt," said Dr. Hazem Abdelazim, CEO of Egypt's Information Technology Industry Development Agency.

Aside from investing in infrastructure, the country also focuses on reducing piracy, with its rating currently at 59 percent. Abdelazim said this is lower compared to piracy ratings of other destinations.

Source:
http://www.zawya.com

Cebu Relies on Anti-piracy Drive to become Global Outsourcing Hub

Thu, 13 May 2010 00:00:00 -0800

The IP Seal campaign was launched in Cebu City as part of the anti-piracy campaign to increase awareness on intellectual property rights (IPR) protection. This initiative also aims to further improve the IT sector and boost the position of Cebu as a major outsourcing hub.

According to Nelia V. F. Navarro, Department of Trade and Industry (DTI) Cebu provincial director, IPR protection is crucial in improving the IT sector to attract more investors. "There's a positive correlation between growth in trade and intellectual property rights protection. Investors want to go to countries where there are legal remedies when IP rights are infringed," Navarro said.

The IP Seal is given to businesses that support IPR protection efforts and use only licensed software. According to Numeriano Rodriguez, Jr., IP Coalition secretary-general, the IP Seal means that the business respects and adheres to the IPR laws of the country.

Source:
http://www.bworldonline.com

Business Community Expresses Support to Aquino

Wed, 12 May 2010 00:00:00 -0800

As Sen. Benigno Aquino III maintains a wide lead from his closest rival in the presidential race, business groups in the Philippines have started expressing their support to the Aquino administration, and to the new leaders on the local level, GMAnews.tv reported.

"The business community welcomes who the people have chosen. We will work with whomever the people chose. We have to rally behind [Mr. Aquino]," said Francis Chua, president of the Philippine Chamber of Commerce and Industry (PCCI).

Meanwhile, Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation, said that having a strong mandate will be more valuable than experience. The economy will not be a major concern, at least in the first year of the new administration.

The concern right now is how to encourage cooperation between the members of the executive branch and the leaders who are poised to constitute the legislative branch. "It is mixed right now. There is no clear showing that [Aquino] will have control over Congress. It will be a problem that will have to be faced by the new president, how to get cooperation," Ortiz-Luis said.

Source:
http://www.gmanews.tv

Aquino Takes Lead in RP Presidential Race

Tue, 11 May 2010 00:00:00 -0800

Sen. Benigno Aquino III is holding a significant lead in the presidential race of the first ever automated national and local elections held yesterday.

As of 00:50 Philippine Standard Time today, partial official results from poll body Commission on Elections (Comelec) show that Aquino got 10,137,173 votes. This is about 40 percent of the actual number of Filipinos who took part in the elections. Former President Joseph Estrada, Aquino's closest rival, got 6,413,712 votes, while Sen. Manny Villar ranked third. Administration bet Gilberto Teodoro had 2,660,865 votes. At the time of writing, Villar, Teodoro, and two other presidential candidates already accepted defeat and congratulated the son of democracy icon Corazon Aquino.

In the vice-presidential race, Mayor Jejomar Binay takes the lead with 10,072,980 votes, followed closely by Sen. Manuel Roxas with 9,239,205.

Comelec estimated that the turnout would be about 80 percent or 40 million registered voters. Though the May 10 elections were marred by problems in PCOS (precinct count optical scan) machines, the poll automation proved to be an efficient process in delivering results. Filipinos were able to determine their new officials a day after the elections, compared to several days of waiting in the manual polls. Also, officials from the Philippine National Police and Armed Forces of the Philippines said the elections were �generally peaceful�.

Trustworthy Vendor Crucial in Outsourcing Cloud Computing

Fri, 7 May 2010 06:00:00 -0800

When it comes to outsourcing cloud computing technologies, the key is to find a service provider that firms can really trust.

Dan Raywood, online news editor for IT publication SC Magazine, said that firms need to make sure that their vendors can meet requirements on security. "For example, can you guarantee that the provider will match your storage security requirements, and when it comes to changing providers, can you guarantee that they won't retain any of your data - or lose it in months and years to come?"

Cloud computing is basically Internet-based computing that involves delivery of hosted services via the World Wide Web. It makes use of distant servers for storage and management of data.

Source:
http://www.ihotdesk.com

RP BPO Sector Poses Concern over May 10 Elections

Thu, 6 May 2010 00:00:00 -0800

Ninety-three percent of survey respondents said the national and local elections which will be held on May 10 will have an impact on how investors perceive the Philippines as well as its BPO sector. About 49 percent said the effect would be �very significant�. Conducted by TeamAsia, the online survey was commissioned by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P).

Survey findings also showed that the BPO sector is worried about the country's tight labor market, with 34 percent of survey respondents saying that this is their primary concern.

�People issues are still a top concern. In the short term, it is important that the elections take place in a transparent and credible fashion to improve investor perception,� said BPAP CEO Oscar Sa�ez.

Source:
http://thesauce.net.au

Worldwide IT Services Revenue Down 5.3% in 2009

Wed, 5 May 2010 00:00:00 -0800

Global research firm Gartner reported that the worldwide IT outsourcing revenue decreased by 5.3 percent last year, as five of the largest IT services vendors reported decline of up to 11.8 percent in revenue. From $805 billion in 2008, total revenue only reached $763 billion in 2009.

Accenture sales dropped 11.8 percent, while HP reported a 10.4 percent decline, from $38.6 billion in 2008 to $34.6 billion last year. IBM's revenue fell 6.6 percent, CSC with 6.5 percent, while Fujitsu's revenue was 0.4 percent lower than in 2008.

According to Kathryn Hale, research vice president for Gartner's IT services group, IT services providers had made some significant changes as they faced the challenges last year. "Their priorities changed and their business focus rushed from aggressive sales or tactical revenue acquisition, to strategies designed to simply maintain revenue levels, keep a handle on costs and manage profitability."

Source:
http://www.ciozone.com

UK Outsourcing Spending Decreases by 50%

Tue, 4 May 2010 00:00:00 -0800

Outside the United States, UK is no longer the top market when it comes to outsourcing. This is based on a report from outsourcing advisory firm TPI.

UK saw a 24 percent decline in the number of contracts. Its outsourcing expenses reached only �800m in the first three months of 2010. This was 50 percent lower than �1bn spent by Germany and �2bn by France, while Sweden had doubled the total value of outsourcing contracts in the country. This can be attributed to a mega outsourcing deal with a company that was not disclosed by TPI. However, a different report said ABB, a Swedish engineering firm, and IBM signed a new agreement.

�Even though this is only one quarter's results, it does appear that the key countries contributing to Europe's outsourcing performance are shifting to the less mature continental markets," said TPI Emea president Duncan Aitchison.

Source:
http://www.computerweekly.com

RP BPO Firms Set to Expand Workforce this Year

Fri, 30 Apr 2010 06:00:00 -0800

In a survey conducted by the Business Processing Association of the Philippines (BPAP), executives of BPO companies said they are going to expand their workforce from 6-50 percent and offer more complex services this year.

�First, we see a return to optimism and better prospects for rapid growth. Second, the industry is more than just recovering from slower growth in 2009. It is diversifying and transforming as a result of increased demand for non-voice and more complex services,� said BPAP head Oscar R. Sa�ez.

However, many survey respondents are worried that the tight labor market may hinder their expansion plans. Thirty-four percent of BPO executives said that lack of enough qualified workers is their primary concern, and the upcoming elections may affect buyer perception.

A total of 160 BPO executives participated in the survey which was conducted early this year.

Source:
http://www.bworldonline.com

UK Expects Increase in Demand for IT Services

Thu, 29 Apr 2010 00:00:00 -0800

Based on the report released by market intelligence firm International Data Corporation (IDC), there will be an increase in demand for IT services in the UK, Germany, and the Nordics, with an annual growth rate of 3.4 percent between 2010 and 2014.

According to Laura Converso, research manager of IDC European software and services, while demand is expected to increase at the second half of this year, new technologies and price issues will affect the ability of the UK market to bounce back. "We expect the 'growth agenda' to return slowly, bringing investments in business intelligence and industry-specific solutions, as well as the global rollout of applications, when these solutions can support business growth, towards the end of the year."

Source:
http://www.taxassist.co.uk

Nasscom Outlines Ethical Practices for Indian IT-BPO

Wed, 28 Apr 2010 00:00:00 -0800

The Governance and Ethics Committee of the National Association of Software and Service Companies (Nasscom) recently released the key recommendations for India's IT-BPO industry in order to develop highest probity standards and strengthen corporate governance within the industry.

Recommendations included in the report are: ethical practices for contracts, data security, clear accountability, compliance with legal matters, and customer satisfaction.

To ensure that the company and employees are aligned in terms of common goals, Nasscom's recommendations include confidentiality of information, protection of company assets, and adherence to policies. The report also outlined points that will promote a safe working environment for employees as well as clear guidelines to strengthen ethical practices with vendor partners.

Source:
http://beta.thehindu.com

Cebu Lacks Enough Manpower for BPO

Mon, 26 Apr 2010 00:00:00 -0800

The 2009 top emerging outsourcing destination in the world is now facing the problem of not having enough workers. According to Cebu Investment and Promotions Center (CIPC), Cebu does not have enough manpower to meet the demands in the business process outsourcing (BPO) sector.

�Cebu does not have enough economies of scale to supply BPO firms that continue to expand here. We don't have to attract more BPO investors but we must in the short term address the problem on human resource,� said Joel Mari Yu, Managing Director. He added that the province can produce approximately 23,000 graduates annually, and only about five percent will be qualified for BPO work.

At present, there are 60,000 workers in BPO companies in Cebu. Yu said that because of the lack of enough manpower, firms opt to hire workers from nearby provinces or expand operations outside Cebu.

Source:
http://www.mb.com.ph

Call Center Sector still Top Revenue Earner for RP BPO

Fri, 23 Apr 2010 00:00:00 -0800

The National Statistics Office (NSO) reported that the call center sector is still the no. 1 revenue generator for the business process outsourcing (BPO) industry of the Philippines.

Based on the initial results, call centers registered P56.7 billion in revenues in 2006. This comprised 70 percent of the gross revenues of the country's BPO sector which reached P81.8 billion. Meanwhile, the software and consultancy sector hit P11.1 billion in revenues, software publishing with P5 billion, data processing with P4.8 billion, and hardware consultancy registered P28.3 million.

This is amidst the problem of not having enough qualified workers to meet the demand. �Although the lack of qualified people is still a major concern in the BPO industry, I am confident the private sector can craft the solutions,� said LiveIt chief executive officer Alfredo Ayala. The Business Processing Association of the Philippines (BPAP) is initiating programs such as Advanced English Pre-employment Training to equip potential BPO workers.

Source:
http://businessmirror.com.ph

Buyers Taking Slow Approach to Outsourcing

Thu, 22 Apr 2010 00:00:00 -0800

According to 1Q10 Advisor and Business/IT Service Provider Pulse Survey by EquaTerra, buyers recognize that outsourcing can reduce costs, but are �slow, deliberate, and risk averse� and are cautiously weighing their options. This leads to delay in outsourcing deals.

�They [buyers] understand the problems and are painstakingly sorting through solutions and weighing options. Many are faced with reduced staff to support new projects, further stalling the process,� said Stan Lepeak, managing director of global research for EquaTerra.

Other key findings include:

�    Forty-six percent of EquaTerra advisors cited increased demand in BPO/ITO. This is an eight percent decline quarter-over-quarter and three percent for the year.
�    Forty-six percent of service providers said the economic condition is still a major factor in outsourcing. This is an eight percent increase year-over-year but 10 percent lower compared to last quarter.
�    Sixty-four percent of service providers expect increase in current contract scope. This is 20 percent lower quarter-over-quarter and 21 percent for the year.

Source:
http://www.benzinga.com

IAOP Releases 2010 Global Outsourcing 100

Wed, 21 Apr 2010 06:00:00 -0800

The International Association of Outsourcing Professionals (IAOP) released the Global Outsourcing 100 last April 19. It is the list of best outsourcing service providers and advisors in the world.

Accenture was ranked as the world's best outsourcing service provider for the third year running. Completing the top 10 list are Infosys Technologies (India), Sodexo (France), Wipro Technologies (India), IBM (US), ISS (Denmark), Tata Consultancy Services (India), ARAMARK (US), CSC (US), and Convergys (US). On the other hand, TPI got the top spot in the list of best advisors, followed by EquaTerra, Alsbridge, KPMG, Kirkland & Ellis, Quint Wellington Redwood, Morrison & Foerster, Baker & McKenzie, Gartner and Booz & Company.

�These firms on the Global Outsourcing 100 are leaders who are helping the companies that use their services realize greater value and business flexibility, as well as a lower cost structure that will make them stronger in the long term,� said IAOP Chairman Michael Corbett.

Source:
http://www.outsourcingprofessional.org

Davao Ranked as Top Outsourcing City

Tue, 20 Apr 2010 00:00:00 -0800

With Davao's high scores in availability of talent (99 percent) and infrastructure (95 percent), it was hailed as the top outsourcing city in the 2010 Top 10 Next Wave Cities by the Commission on ICT, Business Processing Association of the Philippines (BPAP), and Department of Trade and Industry.

Even though Davao scored low in cost (74 percent) and business environment (76 percent), its high score in the talent criterion, which is 40 percent of the overall ranking, propelled the city to the top of the list. Out of the more than 30 outsourcing cities, Davao produces the highest number of graduates. The city is home to 20 BPO companies and currently has 6,500 agents.

Other areas in the 2010 Top 10 Next Wave Cities list are Sta. Rosa, Laguna, Bacolod City, Iloilo City, Metro Cavite, Lipa City, Cagayan de Oro City, Malolos City, Baguio City, and Dumaguete City.

Source:
http://www.mb.com.ph

Execs Prefer Nearshoring over Offshoring, Survey Shows

Fri, 16 Apr 2010 00:00:00 -0800

In the outsourcing survey released by Advans, IT consultancy and solutions provider, 75 percent of executives said they prefer nearshoring over transfer of business processes to offshoring destinations such as India. Thirty-seven percent of these executives said they would increase outsourced IT projects such as database administration and QA processes next year.

�The results showed that the majority of executives are considering outsourcing strategies that are closer to home. These results will help us refine our services so we can continue to deliver cost-effective solutions that meet the needs of IT executives,� said Paul Angelo, VP of Service Delivery at Advans.

Survey participants also expressed their interest in outsourcing other processes such as HR, operations and monitoring, help desk, and business intelligence.

Source:
http://thesauce.net.au

ManCom Conducts Strategic Planning Session in Tagaytay

Thu, 15 Apr 2010 00:00:00 -0800

The Management Committee (ManCom) conducted an off-site strategic planning session last April 6 in Tagaytay Highlands in order to set strategic goals, ensure that department plans are all aligned with the long-term vision of MicroSourcing, and discuss the future of the company.

The session kicked off with the 2010 Strategic Directions and Expectations report by CEO Philip Kooijman, tackling the company's long-term vision and goals this year. This was followed by presentations of strategic plans per department.

�Some of our main goals for the year will be to increase customer and employee satisfaction, focus even more on the quality of our services and the value for money our clients are getting, and in line with this, continue to climb the value chain and offer more higher added value services,� said Mr. Kooijman.

Organizational Development / Employee Relations (OD/ER) Manager Regina Lomotan said that through this session, ManCom members were able to clarify important and strategic concerns that affect operations. It also gave them time to bond with other managers, as conducting the session off-site enabled them to do leisure activities such as bowling (in which Mr. Kooijman bowled a 207 - an all-time personal best). �This offsite strategic planning session helped strengthen team spirit and camaraderie among members of the management team and communicate department plans for 2010.�

It was a successful and very constructive strategic planning session. Mr. Kooijman said they may conduct another one later this year to determine whether or not they are on schedule with the plans developed during this session.

US IT Spending to Bounce Back this Year

Wed, 14 Apr 2010 00:00:00 -0800

After a five percent decline in 2009, the US IT services market is poised to recover this year and will reach $79 billion. This is according to a report from Forrester Research.

IT consulting remains to be the strongest segment in the US IT services, followed by hardware support/sales and system integration business.

�The cutbacks in tech purchases were in many cases driven by fear. Fear that the economy was headed toward a multiyear recession... and fear that firms would not be able to borrow from banks or the credit market if they needed, resulting in the drive to hoard cash and slash capital investment... As fears ease and prices rebound, the pent-up demand in those industries for IT goods and services will bounce back in 2010,� said the Forrester report.

Forrester report findings matched the projections of research firm Gartner on the global IT spending market, stating that it will grow 5.3 percent this year and will hit $3.4 trillion.

Source:
http://www.dnaindia.com

Davao City Sees BPO Potential in Chat Nursing

Mon, 12 Apr 2010 00:00:00 -0800

ICT players in Davao City are eyeing the chat nursing industry, saying that this will be beneficial for nurses and nursing graduates in the city. Chat nurses are responsible for providing health-related customer support. Individuals can just call through a health desk call center for medical advice or general assessment instead of going to a hospital. With chat nursing, big companies are able to lower employee health costs.

While several things still need to be considered such as looking for a business model suitable for chat nursing and the kind of certification for chat nurses, Lisabel Holganza, President of ICT Davao, said that chat nursing has huge potential. She added that some firms are already discussing the business.

On the other hand, Holganza said that the medical transcription industry will benefit from the US healthcare reform as this will result to more work that can be outsourced. This includes medical coding and billing and insurance processing.

Source:
http://www.pia.gov.ph

Gartner Predicts Indian BPO will Grow 19% through 2013

Thu, 8 Apr 2010 00:00:00 -0800

India's BPO market will show an impressive 19 percent growth rate through 2013. By 2011, it will grow into a $1.2 billion business and about $1.8 billion in 2013. This is based on a latest report by research firm Gartner.

Changes in market trends such as demographics, increasing affluence levels, and focus on service quality will drive the domestic BPO market to post impressive growth figures through 2013. �In the last two years, many established Indian BPO providers and some of the multi-national corporation (MNC) service providers - focusing primarily on the international offshore services market - have shifted greater focus and investments to the Indian domestic market,� said TJ Singh, Gartner research director.

India is still the number one offshore outsourcing nation in the world according to the 2009 Global Services/Tholons Top 50 Emerging Outsourcing Cities report.

Source:
http://voicendata.ciol.com

RP Ranked as World's No. 2 Offshore Outsourcing Nation

Wed, 7 Apr 2010 00:00:00 -0800

According to the 2009 Global Services/Tholons Top 50 Emerging Outsourcing Cities report, the Philippines got the number 2 spot in the list of world's offshore outsourcing nations. On the city level, the National Capital Region (NCR) was ranked number 4, with India's Bangalore, Delhi, and Mumbai securing the top 3 spots.

As the economy recovers from the financial crisis, it is expected that the country's outsourcing industry will grow by 26 percent this year and will post a total of $9.5 billion in revenue. According to Business Processing Association of the Philippines (BPAP) CEO and President Oscar Sanez, the industry had shown strength and resiliency during the crisis. �We are employing 442,000 people, of whom 70,000 entered the workforce in 2009. The industry currently contributes to 5 percent of the Philippines Gross Domestic Product.�

The Philippines accounts for 15 percent of the offshore BPO market. This is less than one-third of the total BPO market share of India.

Source:
http://www.mb.com.ph

Recruitment Sector Likely to Adopt IT Developments

Tue, 6 Apr 2010 00:00:00 -0800

New report claims that IT outsourcing users in the recruitment sector will soon adopt eight emerging technologies which will change the way recruitment firms operate.

Published by the Recruitment and Employment Confederation (REC), the Technology 2020 report predicts that cloud computing, developments in data management, spread of green IT, increase in demand for data security, next-generation mobile communications, use of unified communications, social media, and nano hardware are the IT innovations that will have an impact on the business practices of the recruitment sector.

"It is vital that the recruitment industry seriously reviews the far-reaching implications of the latest technological advances. Those that modify their business practices first are likely to be best placed to win more business," said Kevin Green, chief executive of the REC.

Source:
http://www.ihotdesk.com

IT Outsourcing Rises but Offshoring Falls, UK Survey Shows

Wed, 31 Mar 2010 06:00:00 -0800

In a survey by PeoplePerHour.com, Europe's biggest online business marketplace, results show that 60 percent of UK-based companies outsource business processes more now than they did two years ago, and 61 percent choose IT outsourcing over offshoring.

More companies choose outsourcing in order to reduce costs during the recession. However, the decrease in the number of companies which are willing to transfer processes overseas can be attributed to the rise in the �freelance economy� which has become an attractive alternative in the UK as well as the growing number of IT professionals.

�You might have expected offshoring to grow through the recession as UK businesses looked to cut costs by outsourcing IT requirements to cheaper overseas suppliers. However, responses to our survey and analysis of transactions on the site points to one conclusion: outsourcing is growing and offshoring is falling,� said PeoplePerHour.com founder Xenios Thrasyvoulou.

Source:
http://www.onrec.com

HCSDG Conducts Pain Management Awareness Program

Tue, 30 Mar 2010 00:00:00 -0800

To create awareness among MicroSourcing employees about pain management and inform them of the pros and cons of taking medicine for pain relief, the Human Capital Strategy and Delivery Group or HCSDG (formerly known as Human Resources Department) conducted the Pain Management Awareness Program last March 29. This was the first in a series of health awareness programs by the group.

Joan Esguerra and Julie Ann Maniquis, nurses of the company, found out that last year, painkillers were the medicines most utilized by employees. Since pain is a big factor that can affect the productivity of an employee, awareness on how to manage pain is important.

About 50 employees from Small Projects, CSG, and the management took part in the program. It will be conducted again at a different time slot for other employees. Painkillers were distributed to participants after the program.

Companies could Save �60,000 through Back Office Outsourcing

Sat, 27 Mar 2010 00:00:00 -0800

According to InsideOut, outsourcing specialists to the recruitment sector, more and more companies are considering back office outsourcing. Instead of handling back office functions in-house, transferring those to a service provider can translate into savings of about �60,000 a year.

As the economy bounces back from recession, outsourcing back office processes is an economical option for recruiters, and will enable them to focus on core tasks. �Employing a couple of people in your accounts department means not only is there the cost of salaries, but also training, office space, office supplies and infrastructures like IT,� said Paris Sheppard, InsideOut Managing Director. �For around �10,000 a year, recruiters could be outsourcing their payroll and invoicing and not only saving money on paying salaries.�

Source:
http://www.personneltoday.com

Gartner Reports 2010's Top 10 BPO Locations in Asia Pacific

Fri, 26 Mar 2010 00:00:00 -0800

India is still the number one location of choice for offshore IT and business process outsourcing (BPO) services, followed by China. This is according to the latest research �10 Leading Locations for Offshore Services in Asia Pacific and Japan for 2010� by global IT research and advisory firm Gartner. Australia, New Zealand, Singapore, Malaysia, Indonesia, the Philippines, Thailand, and Vietnam also made it to the top 10 list.

�Countries such as Malaysia, the Philippines, and Vietnam have continued to strengthen their position against leading alternatives, while Indonesia has entered the top 10 for the first time,� said Jim Longwood, Gartner research vice-president. �Some of these countries have invested considerably and leveraged increased demand for lower-cost services. The global financial crisis forced many organizations to place a greater emphasis on cost optimization.�

These countries were ranked based on the following factors: language, government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, globalization and legal maturity, and data and intellectual property security and privacy.

Source:
http://www.gartner.com

Indian BPOs to Benefit from US Healthcare Reform

Thu, 25 Mar 2010 00:00:00 -0800

As the US House of Representatives passed the healthcare bill that will bring about 32 million Americans under insurance cover once it becomes a law, it is expected that work such as insurance and claim processing tasks will be transferred to Indian BPO service providers. Insurance companies will be looking for outsourcing service providers that will take on back-office tasks including member database management, claims and new member enrollment processing, and support services.

��All existing IT systems including the electronic medical records, patient information systems and other technology platforms are going to stay untouched, barring some minor to medium tweaking, which will mean some additional work for existing providers like IBM, Accenture and EDS (HP). It's possible that minor portions of these might get shifted to India as well, but the sizable opportunity is for BPOs,� said Dr. Saji Salam, healthcare expert in Minneapolis.

Source:
http://timesofindia.indiatimes.com

UK Firms �Disappointed' with Quality of Outsourced Work

Wed, 24 Mar 2010 00:00:00 -0800

Majority (75%) of UK organizations said they are disappointed with the quality of outsourced work. This is based on the research released by Valueshore Spain, Spanish Government-backed group of IT consultancies.

The research further shows that of the 200 UK IT directors surveyed, 78 percent still use day rates to calculate outsourcing costs, and that majority of organizations look at cost instead of quality of work when it comes to making outsourcing decisions.

Companies should change their perception of what offshore outsourcing can do for them. "Taking a cost-only approach can have a detrimental effect on the quality of work received. Businesses also need to open their eyes towards the 'hidden' costs. The cheapest option doesn't always provide to the biggest overall savings, as quality concerns can often result in more management time being required and increased travel and troubleshooting costs," said Daniel Naoum, co-founder of Valueshore Spain. By failing to consider the hidden costs, companies will lose opportunities for cost savings and pay an outsourcing bill that's more expensive than what was initially planned.

Source:
http://www.freshbusinessthinking.com

Firms to Outsource rather than Establish Data Center

Wed, 24 Mar 2010 00:00:00 -0800

Expert predicts that companies will outsource IT services rather than set up a full data center, considering that large-scale capital will be required for a new data center compared to funds for operational expenses should they opt to outsource.

Two years ago, firms were open to the idea of setting up their own data centers, but according to Matt Munson, group technical director for IT services provider BlueSquare Data, an increasing number of companies choose to just pay for the operational costs. �So, certainly from what we can see for the next two years, it's going to be people outsourcing. It's massively expensive to set up a data center,� Munson said.

Munson added that data centers nowadays use different technologies such as cloud computing and blade servers, unlike before when companies used numerous rack servers.

Source:
http://www.ihotdesk.com

Accenture to open BPO center in Kenya

Tue, 23 Mar 2010 09:45:00 -0800

Accenture has piloted a project in Kenya that will likely lead to the establishment of an outsourcing center there in the near future, The Industry Standard reported. The new pilot project is part of the NetHope summet, which supports humanitarian agencies with outsourcing and shared solutions.

Accenture has worked with the Kenyan government for two years to investigate means of improving market and technical conditions in its growing IT export sector � set for a significant boost with the opening of an outsourcing park along Nairobi's Mombosa Road.

"It means a lot to Kenya for Accenture to set up its base here; it is a leading outsourcing company and is likely to pull other outsourcing companies," stated CEO of Kenya ICT Board, Paul Kukubo.

Source:

http://www.thestandard.com/

Report Predicts Rise in Global Outsourcing Contracts in 2010

Mon, 22 Mar 2010 00:00:00 -0800

As the economy recovers from the financial crisis, it is predicted that the number of global outsourcing contracts will increase this year due to acceptance to cloud computing, multi-sourcing, and focus on governance and risk management. However, these factors will also drive down value and duration of outsourcing projects. These findings are based on the Momentum Market Trends & Insights 4Q09 Annual Report by TPI, the world's largest sourcing data and advisory firm.

"With the outlook of the global economy still uncertain, clients are clearly turning toward smaller, lower-risk transactions that focus on short-term cost savings," said John Keppel, Partner and Managing Director, TPI Research. The report further predicts that large contracts signed when the global economy was still stronger will be broken up and granted in smaller deals. This is also another factor that will boost the volume of outsourcing contracts this year.

Source:
http://www.prnewswire.com

New study confirms outsourcing's strong year in 2010

Fri, 19 Mar 2010 13:30:00 -0800

After speaking with 1,055 senior executives involved in outsourcing services, CEO of Horses for Sources, Phil Fersht, published a new report confirming the positive outlook for the global outsourcing industry in 2010. Entitled, �The IT Outsourcing and Business Process Outsourcing Industry Landscape in 2010�, the study offers insights into which subsectors are most promising and the main drivers for outsourcing adoption.

The report reveals that software applications, call center, engineering management, finance and accounting, analytics, and human resources are the key areas to look out for this year. Mid-size companies were singled out as potentially creating the most activity.

According to the report, over 70% of small organizations (less than $750 million), about half of mid-size organizations (between $750 million and $3 billion), and nearly 60% of large organizations (more than $3 billion) said creating more effective operations at a global level was very important business driver behind their outsourcing decisions. Furthermore, 50% of firms surveyed said they are looking to expand their existing IT outsourcing partnerships.

Source:

http://advice.cio.com/

More Firms to Outsource IT after Recession, Study Shows

Thu, 18 Mar 2010 00:00:00 -0800

In a recent study by IT industry analyst Ovum, more companies will outsource IT processes this year as economic conditions improve after the crisis. One-third of chief information officers (CIOs) said that they will increase their 2010 budgets, though only between one and five percent.

According to Ovum senior analyst Patrick O'Brien, companies avoided long-term outsourcing contracts during the economic crisis, but activity in IT outsourcing is predicted to improve this year. "I really do expect in 2010 for outsourcing to pick up. The markets already expect that as well, judging by the fact that the share prices of outsourcing companies have outperformed the general market over the last six months."

It was reported that outsourcing spending, specifically on IT, is expected to increase this year as the economy recovers from recession.

Source:
http://www.ihotdesk.com

RP has most job openings in outsourcing industry

Wed, 17 Mar 2010 11:00:00 -0800

An industry report indicates that the Philippines' outsourcing industry comprised the majority of the new jobs opened last month, BusinessWorld said. The data, gathered from the industry's top 40 firms, was disclosed by Jon E. Kaplan, president of consultancy, recruitment and training outfit, TeleDevelopment Services Inc.

�There were 25,700 new job openings for the sector in the month of February alone. Of these jobs, 72% were in the Philippines,� Kplan said at a contact center outsourcing and BPO training event.

The firms surveyed each generated 100 to 3,000 jobs. Kaplan added that new contact center outsourcing jobs were created following expansion initiatives of numerous companies.

The Philippine outsourcing industry generated 70,000 jobs in 2009. The majority of the industry's employees belonged to contact center outsourcing, reeling in 280,000 agents.

Source:

http://www.bworldonline.com

EV2 Team Completes Sweep in Basketball Tournament

Tue, 16 Mar 2010 00:00:00 -0800

The scores are in: EV2 team reigned supreme, 76-65, against the Bolero team at the Best of 3 finals of MicroSourcing's basketball tournament which concluded last March 15.

After winning Game 1 last March 12, EV2's captain Roden Castillo and the rest of the team were determined to put an end to the tournament as they battled it out against Bolero players, so much so that after a few minutes in the first quarter, EV2 did not give Bolero a chance to take the lead. After four quarters of excitement and ear-splitting screams from the supporters of both teams, EV2 ended the game with an 11-point lead.

EV2 team members: Moses Moit, Buboy Bonavente, Marlon Macaraeg, Bob Santillan, Jimross Dellomos, Ferdie Serapio, Gerbert Ballon, Paolo Cenina, Ron Romero, Sherwin Dimakiling, Clark Espanol, Kenneth Edillo

Bolero team members: Dan Fresco (captain), Elixir Francisco, Paul Lave, Mark Leodones, Adam Jamis, Jeff Catubay, Ian Dacasin, John Baltazar, Tom Toledo, Lem Catabay, Chino Perilla, Carlo Rivera, Paulo Sulanoy

A total of eight (8) basketball teams from different projects and departments participated in the month-long tournament which was facilitated by the Organizational Development / Employee Relations (OD/ER) Department.

RP BPO targets $4 trillion Spanish-speaking market

Mon, 15 Mar 2010 11:00:00 -0800

A memorandum of understanding was recently signed between the Department of Education and Spain's Ministry of Education, Cervantes Institute and the Spanish Agency for International Cooperation and Development (AECID), PIA Daily reported. For the nation's business process outsourcing (BPO) industry, the signing signifies a step towards catering to around 21 Spanish-speaking countries with economic activities worth $4 trillion.

"Aside from its direct link to our cultural heritage, learning Spanish in the 21st century can be a very potent tool for the Filipinos to compete in the global job market," commented Education Secretary Jesli A. Lapus.

The implementation of the agreement in local schools will occur in two different phases: school years 2009-2010 and 2013-2014. The pilot phase began in June last year and has already reintroduced the language in 15 secondary schools � involving 35 teachers and affecting over 1,000 students.

The agreement could possibly open up a large new revenue stream for the contact center outsourcing industry in the Philippines, which employed 280,000 people last year and grew 22% to $5 billion.

Source:

http://www.pia.gov.ph/?m=12&r=&y=&mo=&fi=p100313.htm&no=59

Companies can Benefit from Outsourced Contact Centers

Fri, 12 Mar 2010 00:00:00 -0800

Outsourcing can be beneficial for companies when it comes to making contact center operations more efficient and aligning processes with business goals. This is according to The Contact Centre Business Transformation report by business information and market analysis firm Datamonitor.

With outsourcing, companies will be able to reduce expenses in infrastructure and operational costs, while improving service delivery and eliminating business risks. "In light of escalating costs and service demands we are seeing a focus on new and innovative contact centre operating models," said Peter Ryan, Datamonitor's lead analyst for call centres and business process outsourcing.

Teleperformance UK's Chairman and Chief Executive Jeff Smith said that companies with outsourced contact centers and operating within a reduced budget can also maintain communication with their customers.

Source:
http://www.ihotdesk.com

BPAP lowers employment growth target

Thu, 11 Mar 2010 14:00:00 -0800

The Business Process Association of the Philippines (BPAP) has said that it will lower its employment target in favor of higher revenues. Having originally targeted an outsourcing employment count of 900,000 for 2011, BPAP has lowered it to 620,000 � diverting focus to its export revenue target of $12 billion, Malaya reported.

Insights into BPAP's 2011 outsourcing industry roadmap were made by BPAP president, Oscar Sanez, during the recent launch of the association's National Competency Test (BNCT).

"Employment is the secondary objective. The main objective is export revenues," Sanez said.

Sanez explained that the industry met its $7.2 billion revenue target last year despite generating only 436,000 workers � well below the 600,000 jobs they deemed was necessary for reaching the revenue target. The $12 billion revenue goal for 2011 was originally marked for 2010 but suffered a setback due to the global financial crisis. Last year's outsourcing revenues registered a 20% growth from the previous year.

Source:
http://www.malaya.com.ph

BPO executives voice concern over upcoming elections

Wed, 10 Mar 2010 13:30:00 -0800

An industry survey conducted by TeamAsia for Outsource2Philippines and the Business Process Outsourcing Association of the Philippines (BPA/P) indicates that BPO executives believe credible elections are a critical factor that can shape investors' perception of the country, Manila Bulletin said.

Responding to the statement: �In terms of investor and client perception of the Philippines, it is important that the national election is conducted in a peaceful, credible, and transparent matter�, 90% of executives responded �very significantly� (49%), �significantly� (31%), or �somewhat significantly� (13%), and the remaining six percent responded �somewhat� (4%) or �not at all� (2%).

Many issues currently loom over the upcoming presidential elections as an automated voting process has raised concerns regarding a lack of audit trail, possible hacker intrusion, and reliability of data transmission.

The full results of the survey will reportedly be presented at a CEO Breakfast briefing two weeks before the election. The briefing will gather outsourcing executives and possibly representatives of presidential candidates.

Source:

http://www.mb.com.ph

BPAP Launches National Competency Test

Tue, 9 Mar 2010 00:00:00 -0800

The Business Processing Association of the Philippines launched the BPAP National Competency Test (BNCT) for college students and applicants who wish to enter the BPO workforce.

The BNCT is designed to determine the applicant's proficiency in English, verbal and numerical skills, service orientation, computer literacy, and perceptual speed and accuracy. Outsourcing companies use different ways to gauge applicants so there will be no passing grade.

"The test will streamline the recruitment process of the industry. With the test, companies can now pre-select applicants who do well on the competencies they value and no longer have to do initial testing on so many applicants," said BPAP CEO Oscar Sa�ez.

The initial rollout of the test will be on April 12. It will be available at BPAP partner universities such as Jose Rizal University, Far Eastern University, Centro Escolar University, and University of Makati, as well as accredited testing centers. Test results will be stored and can be accessed at a BPAP-hosted site.

Source:
http://www.bworldonline.com

Women Working in Public Sector more Satisfied than those in BPO

Mon, 8 Mar 2010 00:00:00 -0800

Results of the study conducted by the Associated Chamber of Commerce and Industry of India (Assocham) show that women who work in public sector undertakings (PSUs) are more satisfied than those who are engaged in business process outsourcing (BPO) and knowledge process outsourcing (KPO) sectors. This is due to the healthy working environment, good annual income, convenient working hours, and job security being offered by the public sector.

"It is found that women employed in this particular sector feel lack of personal growth and development since they perceive less room in the decision-making process and less flexibility in working hours, besides pressures to perform and deliver targets," said Assocham President Swati Piramal.

Respondents of the said study work in different areas such as banking, power, finance, petroleum, and consultancy across 11 states.

Source:
http://timesofindia.indiatimes.com

Execs Take Part in 2010 Outsourcing World Summit

Sat, 6 Mar 2010 08:00:00 -0800

The International Association of Outsourcing Professionals (IAOP) brought together more than 550 outsourcing executives from different organizations around the world in the recently concluded 2010 Outsourcing World Summit held in Florida.

�This year's Summit was particularly timely and relevant to organizations as the economy shows signs of rebounding,� said IAOP Chairman Michael Corbett. �Companies learned how outsourcing can help create change, enable growth and add value to their organizations.�

Joshua R.Jewett, senior vice president of Information Technology and procurement, and chief information officer, Family Dollar Stores, Inc.; Dmitry A. Loschinin, president and chief executive officer, Luxoft; and the late Dewang Mehta, past president, NASSCOM® were inducted into IAOP's Outsourcing Hall of Fame. Meanwhile, Johnson & Johnson's Julia Santos and commercial real estate executive Rich Etzkorn were recognized as �Members of the Year� at the Summit Awards Luncheon held last Feb. 16.

IAOP's official publication �Globalization Today� was also launched during the event. This aims to tap insights of individuals from around the world and create �the best and largest informational resource on outsourcing�.

Source:
http://www.outsourcingprofessional.org

RP BPO gets bandwidth expansion boost

Fri, 5 Mar 2010 11:00:00 -0800

The Philippine's largest telecom provider, Philippine Long Distance Telephone Co. (PLDT) announced the completion of a digital fiber optic network (DFON) expansion project worth P600 million. As a result of the project, six network loops across the nation will get an additional 320 gigabytes per second (Gbps) and increase the company's DFON operating capacity to over 1,000 Gbps, Business Mirror said.

PLDT had previously completed a third fiber optic cable leg to Baguio. They expect the completion of a third 1,220-kilometer line connecting Lucena and Cebu to Bicol, Masbate, Panay and Negros by the middle of the year.

�These projects will spur growth in local economies by making these locations more attractive investment areas, especially for business process outsourcing (BPO) locators. Moreover, this will expand broadband coverage so that more Filipinos, including those in rural areas, can connect to the world through the Internet,� said PLDT president, Napoleon Nazareno.

PLDT is reportedly also working to install loops within loops to enhance network resiliency to protect existing businesses and potentially open new IT-enabled revenue sources in the outsourcing industry

Source:

http://www.businessmirror.com.ph

Cebu City Ranked as Top Asian Outsourcing City

Thu, 4 Mar 2010 00:00:00 -0800

For the second time, global outsourcing advisory firm Tholons ranked Cebu City as the no. 1 outsourcing city in Asia. This is based on the quality of workforce and infrastructure, as well as business growth, risk profile, cost of living, and quality of life. Pasig City, Quezon City, and Mandaluyong City were also included in the list of top 18 Asian outsourcing cities.

Shanghai and Beijing in China ranked second and third respectively, followed by Ho Chi Minh, Vietnam and Krakow, Poland.

Cebu produces many graduates from its 10 universities and colleges. However, the low hiring rate of applicants and turnover after being employed for one or two years hinder the province from meeting the BPO demand. This leads BPO recruiters to look for qualified talents in nearby provinces.

When it comes to global rankings, Metro Manila got the fourth spot. The top three global outsourcing sites are Bangalore, Delhi, and Mumbai.

Source:
http://goodnewspilipinas.com

Swedish outsourcing doubles

Wed, 3 Mar 2010 11:15:00 -0800

Data from PAC's Worldwide Deal Tracker revealed that Swedish IT outsourcing contracts reached 46% in 2009 � double the 23% recorded the previous year, Waters News reported. The data covered all publicly disclosed IT service deals worldwide worth at least $1.35 million.

According to PAC London consultant, Dominic Trott, Swedish firms are becoming increasingly aware of the effectiveness of outsourcing non-core activities to offshore locations:

"The use of global delivery for IT outsourcing contracts in Sweden had been limited up until 2008, with challenges such as language difficulties and proximity to the customer preventing wider take-up," he said.

"However, the global economic crisis proved to be a significant disruptive factor for companies in Sweden, and the growing requirement for cost reductions meant that the issue was re-visited. The benefits available through global delivery, such as 24/7 support, labor arbitrage reductions and wider skill sets, were viewed as means by which efficiencies could be achieved."

The majority of outsourcing processes involved applications outsourcing - accounting for 65% of Swedish IT outsourcing contracts signed in the last two years.

Source:

http://www.watersnews.com

Global FAO Expenses to Increase by 20% this Year

Tue, 2 Mar 2010 00:00:00 -0800

In the Everest Research Institute report, it was predicted that $3.7bn will be spent on finance and accounting outsourcing (FAO) this year. This is a 20 percent increase year-on-year in 2010.

According to the report, "2010 promises to be a stronger year for FAO than 2009. There is a significant pent-up demand in financial services, which could be a key growth driver in 2010.� The report added that the 20 percent increase in global expenditure is a sign that the period of low activity in FAO is now over.

In 2009, FAO had seen a slow growth in total annual value of contracts - only 11 percent compared to 20 percent annual increase from 2006 to 2008. Also, there were only 65 new FAO contracts that were signed in 2009, compared to 82 in 2008.

FAO involves outsourcing capital budget and internal audit, processing of payroll, and general accounting.

Source:
http://www.silicon.com

MicroSourcing inks new contract with PLDT

Mon, 1 Mar 2010 14:00:00 -0800

MicroSourcing held a contract signing event with PLDT Business Solutions for an upgrade of its international data connectivity requirement.

The signing signifies a step in the evolution of the company, having started as an offshore delivery center in the Philippines in 2004. MicroSourcing has since expanded its services to include Knowledge Process Outsourcing (KPO), Business Process Outsourcing (BPO), as well as Virtual/Hybrid Captive services � making significant infrastructure improvements along the way.

The signing was attended by PLDT AVP and Head of Corporate Relationship Business Precy Katigbak, PLDT VP and Head of Corporate Relationship Management Jovy Hernandez, MicroSourcing Chief Executive Officer Philip Kooijman, MicroSourcing IT Manager Stanley Tan-Cardoso, and, PLDT Relationship Manager, Jun Coronel.

"PLDT has been our telecom provider ever since the days we had a small office with a simple DSL connection and a single telephone line. Now that our company has grown substantially, it is good to see that PLDT has reliable products and services that can support our current and future growth," commented MicroSourcing CEO, Philip Kooijman.

MicroSourcing's partnership with PLDT utilizes I-Gate � providing fully managed and fully redundant global Internet connectivity. The connectivity solution delivers a high degree of reliability, resiliency and scalability to meet customer requirements � a critical factor amid growing data connectivity requirements in the outsourcing/offshoring industry.

Most Multinational Firms Outsource IT, Study Shows

Fri, 26 Feb 2010 00:00:00 -0800

Out of more than 600 IT decision makers from different multinational corporations surveyed by Orange Business Services, 93 percent said they are doing partial outsourcing or out-tasking projects. Data center-related tasks comprised 30 percent of projects being outsourced, followed by desktop management (14 percent) and data networks (14 percent).

Survey results also reveal that the top reason why multinational firms outsource projects is to gain access to specialized IT skills. This is followed by cost savings, while the third reason is to improve service delivery to end users.

When asked about the factors that hinder them from outsourcing, 65 percent of respondents answered �loss of control�, while security concerns ranked fourth. The firm said this shows that companies are �now focused on the more practical issues around moving to an outsourced model�.

According to Eric M.K. Ng, Vice-President, Global Communications Solutions, Asia Pacific, Orange Business Services, these results are very encouraging when it comes to the way companies view the outsourcing model. "Decision-makers clearly understand the benefits such models bring and have moved on from concerns around security and are now focused on ensuring that any investments realize not only the cost savings, but also the knowledge transfer promised by third party providers."

Source:
http://www.itworldcanada.com

Outsourcing sees uptick in contract renegotiations

Thu, 25 Feb 2010 16:30:00 -0800

A survey by Gartner Inc. indicates that out of 1,073 outsourcing organizations surveyed worldwide, almost 50% of them experienced a sharp increase in contract renegotiations. The survey further revealed that the majority of the renegotiations involved bids to cut costs due to the recession. Gartner analyst, Allie Young, warned that these renegotiations only leave room for mistakes on both ends of an outsourcing deal.

Young says that the major complaints he hears from CIOs is the lack of innovation from outsourcing deals. �My question is, What did you think you were going to get? There is no provision in the contract for innovation� Young commented in response.

Young further explained that successful outsourcing contracts depend on documentation. Citing Apple's $100 million investment in an outsourcing provider in hopes of acquiring innovative services, Young argued that the documentation of innovation is very difficult and rare in the industry. "About the best we have been able to do is dedicate a pool of resources from the supplier side, whose job is to sit in the client's business and look for new opportunities to bring new projects to bear," stated Young.

Source:

http://searchcio.techtarget.com

India may get Mega Deals this Year

Wed, 24 Feb 2010 00:00:00 -0800

Outsourcing contracts worth $1 billion may be granted to India this year as companies from different industries such as retail, banking, and telecom and utilities aim to cope with increased service demand and to reduce operational costs.

Early this year, British Petroleum's IT outsourcing contract worth $1.5 billion was awarded to TCS, Infosys, and Wipro.

�We see both large and small deals coming back to the table. Although the traditional verticals like telecom, financial services and manufacturing have gained volume, it has been observed that new verticals like retail, media and entertainment, healthcare are also driving growth,� said Suresh Sundaram, HCL Technologies global head for marketing and strategy.

�Deal pipeline has picked up and 2010 is certainly a strong year compared with 2009,� said Managing Director Sid Pai of TPI, a global sourcing advisory firm. According to the most recent TPI Index, outsourcing contracts increased by 47 percent in the fourth quarter of 2009 compared to third quarter of the same year.

Source:
http://economictimes.indiatimes.com

Manila posts $6.2b account surplus despite crisis

Tue, 23 Feb 2010 10:30:00 -0800

The central bank reports that the current account surplus in 2009 totaled $6.2 billion due mainly to income from foreign investments in the business process outsourcing (BPO) and tourism sectors. The surplus was recorded despite the global financial crisis and is a stark contrast to the $4.9 billion deficit posted in 1997 at the start of the Asian currency crisis, Manila Standard Today said.

According to Bangko Sentral Deputy Governor, Diwa Guinigundo, the total marks a 48 percent increase from the $4.2-billion surplus recorded in 2008 - up 3.8 percent from the gross domestic product of the same year.

The Philippines suffered a merchandise trade deficit of $4.09 billion throughout the majority of 2009 but that was offset by the $7.3 billion in revenue from the business process outsourcing (BPO) sector.

According to the Toursim Department, the surplus was supplemented by tourists infusing $3 billion to $5 billion in receipts yearly.

The peso is expected to trade at 46 to 48 against the dollar this year as a result of the account surplus.

Source:
http://www.manilastandardtoday.com

BPO Firm Says Training is Crucial to Sustain Growth

Mon, 22 Feb 2010 00:00:00 -0800

According to TeleDevelopment Services Inc. (TDS), the business process outsourcing (BPO) industry must focus on providing training to supervisors or frontline leaders. This is to improve productivity and sustain the growth of the industry which is estimated to increase by 25 percent this year.

�The industry is growing to the tune of 2,000 new hires every week. It's going to grow in ways we've never seen over the last few years in terms of more sophisticated BPO and knowledge process outsourcing services,� said TDS President Jon Kaplan. He added that supervisors can have a key role in minimizing turnover and increasing performance.

The country's outsourcing sector currently employs 500,000 workers. With revenues reaching $7.3 billion in 2009, RP President Gloria Arroyo reported recently that the country is closely behind India's outsourcing industry worth $9 billion.

Source:
http://balita.ph

7 new locations to be added to RP Next Wave Cities

Fri, 19 Feb 2010 12:30:00 -0800

According to the Commission on Information and Communications Technology (CICT), the Philippines' business process outsourcing (BPO) sector will spawn 5 to 7 new outsourcing cities this year. This will bring the Philippines' Next Wave Cities count from 35 in 2009, to over 40, ABS-CBN reported.

Last year's next wave cities list included Metro Laguna, Metro Cavite, Iloilo, Davao, Bacolod City, Bulacan East and Bulacan West, Cagayan De Oro, and Lipa City in Batangas.

Although CICT Commissioner, Monchito Ibrahim, would not name which cities in particular were to be added to the list, he explained that the goal was to have the Next Wave Cities reel in 35% of the total outsourcing investments in the Philippines � with the other 65% belonging to Metro Manila.

"Ideally we want a 50-50 percent ratio, but that might take another 2 to 3 years to accomplish," said Ibrahim.

The current ratio in outsourcing investments is currently 75% to 25% in favor of Metro Manila � short of the 2009 goal for a 70% to 30% ratio. According to Ibrahim, this is due mainly to cities having ceased investments in their ICT, which he hopes will change this year.

"The challenge is how to attract more locators. If there's anything those aspiring to become Next Wave Cities should focus on, it's improving the manpower to supply the demand from the firms," said Ibrahim.

Source:
http://www.abs-cbnnews.com

EU Introduces Updated Data Outsourcing Rules

Thu, 18 Feb 2010 00:00:00 -0800

In response to the changes in data management of businesses and for greater transparency, the European Commission had updated the standard contractual clauses on outsourcing data processing work outside the European Union.

Under the updated clauses, outsourcing companies that provide personal data processing services to clients in EU should get a written consent first before subcontracting data processing work to another company. European market research firms that transfer data processing operations overseas such as in India will be affected by the updated rules.

�This updated version of the standard contractual clauses takes account of new business models and the growing trends to global processing and outsourcing. The updated standard contractual clauses ensure a balance between global business needs and protection of EU citizens' personal data,� said Jacques Barrot, vice-president of the Commission.

Source:
http://www.globalservicesmedia.com

Asian ITO spending trend to be reversed

Wed, 17 Feb 2010 16:30:00 -0800

Experts predict that Asia's spending on information technology outsourcing will grow faster than their western counterparts this year, Financial Times reports. Dell Services chairman, Jim Champy sees this as a reversed trend in outsourcing spending from the recent trend of western groups buying services from Asian outsourcing locations such as India and China.

"We see, as most providers do, the Asian markets growing faster - clearly more than Europe, and certainly faster than the US," stated Champy. "What it would feel like to me is two to three times faster, percentage-wise."

A report by KPMG and Asian-Oceanian Computing Industry Organization projected a significant increase in Asia's share of global IT services spending � an estimated 26.3% compared to the current 20% in global IT and business process outsourcing services consumption.

The trend represents a complete reversal of the trend of Asian IT companies sending executives to developed markets to purchase business from western outsourcing consultancies.

Source:
http://www.ft.com

MicroSourcing Forms Partnership with STI

Tue, 16 Feb 2010 00:00:00 -0800

As part of the company's initiative to increase brand awareness and reach a large pool of graduates who might be suitable candidates for clients' requirements, MicroSourcing had formed a corporate tie-up this month with Systems Technology Institute (STI). This is the second time that the company partnered with a member of the academe - the first one was with AMA University last December.

With this partnership, Manpower Acquisition Department's Sourcing & Marketing Specialist Ron Quijano said STI will act as a sourcing channel for MicroSourcing in getting a pool of good candidates. �For our end, the usual benefits apply: access to their career portal, regular campus/career fair updates, and on-the-job trainees (OJTs). On the other hand, STI will have the chance to provide employment/OJT opportunities for their alumni/students.�

In a demographics survey Mr. Quijano conducted among MicroSourcing employees late last year, results show that STI ranked fourth in the list of schools where MicroSourcing employees graduated from. AMA University got the top spot, followed closely by the University of Santo Tomas (UST) and Polytechnic University of the Philippines (PUP). These survey results helped the company in identifying which schools can provide graduates who might have the skills needed by clients.

MicroSourcing Spreads the Love with Haiti Fundraiser

Mon, 15 Feb 2010 00:00:00 -0800

Employees across all projects and departments took part in "Spread the Love! - MicroSourcing's Sports and Charity Event" held last February 12. This was spearheaded by the Organizational Development / Employee Relations (OD/ER) Department.

Aside from welcoming the Chinese New Year and celebrating Valentine's Day, this event marked the launch of a fundraiser for Haiti Support Fund in partnership with Yell Adworks. The proceeds from sales of roses, gerberas, chocolates, and Chinese delicacies would go directly to the Haiti Support Fund. Voluntary pledges and donations were also accepted through salary deductions. According to Ms. Ma. Regina Lomotan, OD/ER Manager, this is the company's way of expressing gratitude for the support MicroSourcing employees had received during the typhoon Ondoy relief drive last year.

It was also through this event that the OD/ER Department encouraged employees to participate in the Sports Activities - Basketball and Bikram Yoga Program which started last February 8 and will run until March 8. Sessions are held everyday at Bikram Yoga Eastwood while the basketball elimination round will start today at 6pm.

India outsourcing exports projected at $50 billion

Thu, 11 Feb 2010 09:45:00 -0800

India's National Association of Software and Service Companies say the country's revenues from IT and Business Process Outsourcing (BPO) are set to increase 5.5% to $49.7 billion in the fiscal year leading up to March 31, 2010, PC World reported.

The figure encompasses Indian services and software development subsidiaries of multinational companies (eg Dell, Microsoft, Oracle, etc) in addition to exports by Indian outsourcing providers.

India's outsourcing companies are expected to register direct employment of 2.3 million by March 31, 2010 with over 90,000 being added before year-end.

The 5.5% growth rate is a stark contrast to the 16% Nasscom predicted in 2009, before the outsourcing industry was hampered by the recession and a Satyam Computer Services scandal. India nonetheless remains the top outsourcing destination offering the full range of outsourcing services to the US and UK among others.

Source:
http://www.pcworld.com/

Employers Turn to HR Outsourcing as Economy Recovers

Wed, 10 Feb 2010 00:00:00 -0800

As the economy slowly bounces back from the crisis, human resources (HR) outsourcing has become the answer for thousands of small and medium-sized employers who want to reduce employment costs and HR risks, as well as improve employee performance. This is based on a recent white paper entitled �Preparing for the Rebound: How Human Resources Outsourcing Can Help Business Through Uncertain Economic Times� from CPEhr, a leading HR outsourcing firm.

"Reports indicate that as the economy begins to recover and employers look to rehire lost personnel, their priorities will continue to focus on cost-containment and improving efficiencies," says Ari Rosenstein, CPEhr's Director of Internet Marketing. "Our research points to outsourcing human resources as a cost effective and efficient way to reach those goals in 2010."

The said white paper aims to determine the role of HR outsourcing in supporting three major employment factors: lowering operational costs, reducing employment risks, and improving efficiency.

Source:
http://finance.yahoo.com

RP BPO posts $7.2B in revenues

Tue, 9 Feb 2010 14:30:00 -0800

The Philippine Business Process Outsourcing industry generated over $7.2 billion in revenues for 2009 � a 19% improvement from $6.1 billion in 2008, Philippine Daily Inquirer reported. The outsourcing industry, known as the country's sunshine industry, created 70,000 new jobs, bringing the total to 442,164 jobs at the end of the year.

Industry data for the outsourcing sector was revealed by Gillian Joyce Virata, executive director for information and research at the Business Process Association of the Philippines.

�We had a very difficult last quarter of 2008 and early 2009, but recovery started to kick in in the second half [of 2009]. We expect fast build-up within the first semester [of 2010],� Virata said.

The revenues were mainly accounted for by contact services which grew 22% to $5 billion. This was followed by back-office or non-voice outsourcing which posted $1.1 billion � 35% higher than 2008. Call center operations also accounted for the majority of the jobs, hiring 280,000 people, with the back-office sector and IT outsourcing sectors employing 86,000 and 35,300 respectively.

Virata also listed priority programs for 2010 which includes the creation of a virtual BPO university, the rollout of the National Assessment Competency Program to an initial 10,000 students, the provision of P350 million worth of scholarships under the Pangulong Gloria Scholarship fund, the launch of a local and international campaign on the Filipino knowledge worker, and the conduct of the 2nd International Outsourcing Summit.

Source:
http://business.inquirer.net/

Malaysia's Outsourcing Revenues to Grow 20-25%

Mon, 8 Feb 2010 00:00:00 -0800

Things are looking up for the outsourcing industry of Malaysia. From about $1.1 billion reported in 2009, David Wong Nan Fay, Chairman of Outsourcing Malaysia, said revenues are expected to increase by 20-25 percent this year.

Contributions will be coming from retail, healthcare, financial and insurance, oil and gas, supply chain services, and engineering sectors, as well as business process outsourcing (BPO) and information technology (IT) processing.

However, a research report shows the country still has to work on other sectors that are lagging behind. "For instance, in the BPO segment, we are still on the mild-side as we have just created a foothold in outsourcing such as for human resources and customer care." This is in contrast to the multiple outsourcing segment which is already thriving in the Philippines.

Source:
http://www.business-standard.com

RP challenging India for BPO supremacy, PGMA says

Fri, 5 Feb 2010 17:00:00 -0800

President Gloria Macapagal-Arroyo is confident the Philippines is poised to take over as the leading destination for Information and Communication Technology-Business Process Outsourcing (ICT-BPO), Philippine Daily Inquirer reported.

Arroyo's statements regarding the performance of her nation's ICT outsourcing sector were made during a speech at the John B. Lacson Foundation Maritime University in Iloilo City as part of her Cyber Corridor tour.

Iloilo is currently ranked as the third fastest growing outsourcing location among the top 10 next-wave outsourcing cities next to Metro Laguna and Metro Cavite. Iloilo's ranking is followed by Davao, Bacolod City, Bulacan East, Bulacan West, Cagayan de Oro, Lipa City and Pampanga Central.

�Today, the Philippines with 90 million people has challenged India's 1 billion population for BPO supremacy. Compared to $.02 B in 2001, which is almost nothing, our BPO industry has earned more than $7 billion in 2009. And that is not far behind India's $9 billion (earnings) for call centers,� Ms. Arroyo stated.

According to the President, the growth of the Philippines' outsourcing sector has shown positive growth trends due to services that include offshoring and outsourcing processes such as accounting, legal, medical, personnel and administration services.

Source:

http://business.inquirer.net/

BPO firms open in Taguig, add 3,000 jobs

Thu, 4 Feb 2010 13:00:00 -0800

American firms, CSS Crop. And UST Global have unveiled their new Business Process Outsourcing (BPO) centers in Fort Bonifacio, Taguig City. The pair are looking to hire over 3,000 workers this year, Manila Standard Today reported.

�We are looking at hiring around 1,000 people in the next 12 months,� said UST Global chief executive, Sajan Pillai in a briefing.

CSS and UST each have capacities of 1,000 workers and 400 seats. Pillai says UST Global expects its current workforce to increase to between 3,000 and 5,000 in the next three years, with revenues reaching an annual $150 million. CSS on the other hand, is looking to go from 400 to 2,000 employees this year.

�On the BPO part of our business, we see that our Philippine delivery center will contribute 20 percent to 25 percent in our revenues in the next few years,� stated CSS chief executive, Nick Sharma.

Sharma added that CSS could possibly expand to provinces for a second outsourcing facility in the Philippines. Its center in Taguig is the second-largest of its outsourcing facilities next to its center in Chennai, India.

Source:

http://www.manilastandardtoday.com/

Pres. Arroyo Starts Cyber Corridor Visit

Wed, 3 Feb 2010 00:00:00 -0800

RP Pres. Gloria Arroyo visited Angeles, Pampanga last February 1, marking the start of the week-long tour in cyber corridor. This refers to the ten cities and capital towns that have the qualities and resources needed by companies which are engaged in the business process outsourcing (BPO) and information and communications technology (ICT).

Aside from Pampanga Central, the other so-called cyber corridor areas are Metro Laguna, Metro Cavite, Iloilo, Davao, Bacolod, Bulacan East, Bulacan West, Cagayan de Oro, and Lipa City. According to Presidential Deputy Spokesperson Gary Olivar, the availability of ICT workers, low rent and power costs, telecom access, and government support make these locations conducive to ICT-BPO operations. "It is the intention of the administration that the cyber corridor serve as a one-stop shop for e-services investors who may want to invest in our country," Olivar said.

The cyber corridor areas were identified by the Business Processing Association of the Philippines (BPAP), Commission on Information and Communications Technology (CICT), and Department of Trade and Industry (DTI).

Source:
http://www.pia.gov.ph

RP BPO expecting higher growth rates

Tue, 2 Feb 2010 13:00:00 -0800

The Philippines' outsourcing industry is expected to grow by 30% to 35% this year compared to 2009's 20% growth rate, Business World reported CICT (Commission on Information and Communications Technology) as saying.

Insights into the local outsourcing industry by CICT were made at a forum organized by the University of Amsterdam and the University of the Philippines.

"We are looking to end 2010 with total employment of 600,000 or 650,000,� said CICT commissioner, Monchito B. Ibrahim.

The Philippines' outsourcing industry has been steadily growing amid the global recession, posting revenues of $7.3 billion last year and $6.1 billion in 2008. Mr. Ibrahim noted that the Information Technology BPO sector alone employed 446,000 workers in 2009 � up 19.89% from the 372,000 workers registered in 2008. He further stated that the fastest growing sector is the IT or software subsector and stressed the need to further develop non-voice services.

University of Amsterdam lecturer, Niels Beerepoot, saw the development of higher-end services as a positive indication of the direction the Philippine outsourcing industry is taking:

"It is good to know that there is a lot of awareness that the sector needs to move towards higher value-added activities, compared to the traditional voice-based activities," he told the forum.

Source:

http://www.bworldonline.com/

Outsourcing is �back in vogue�, study shows

Fri, 29 Jan 2010 11:30:00 -0800

According to the Economic Times, Forbes.com reports that "after fizzling out over the past couple years as companies simply slashed jobs rather than move them, outsourcing is back in vogue," referring to a study by Pricewaterhouse Coopers (PWC). The study indicates that outsourcing has been active in countries such as India, China, the Philippines, Costa Rica and even Romania.

"Cost is still the major factor," said PWC shared services practices managing director, Charles Aird. "But people are also looking for greater efficiency, better quality and access to talent."

Forbes remained critical of some processes that have been outsourced in the past stating that �computer customer service that was outsourced to India, for example, was notorious for alienating customers.�

The study by PWC also revealed a growing list of services being outsourced. Forbes warns however, that outsourcing some core services may not be the ideal solution:

�The key is that you've got to tie your sourcing strategy to your business strategy.�

Source:

http://economictimes.indiatimes.com/

Obama to end tax breaks for outsourcers

Thu, 28 Jan 2010 16:00:00 -0800

President Barack Obama said in his State of the Union address that it was time to cease tax breaks for American firms that outsource jobs overseas, helping those that increase employment within the country instead.

�...it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America,� the President said.

"Now, the House has passed a jobs bill that includes some of these steps. As the first order of business this year, I urge the Senate to do the same, and I know they will. They will. People are out of work. They're hurting. They need our help. And I want a jobs bill on my desk without delay."

The President acknowledged, however, that the move would not compensate for the current rate of unemployment.

"But the truth is, these steps won't make up for the seven million jobs that we've lost over the last two years.�

Source:

http://infotech.indiatimes.com

New Outsourcing Areas for RP

Wed, 27 Jan 2010 00:00:00 -0800

Supply management, which refers to �identification, acquisition, access, positioning and management of resources of an organization�, and legal process outsourcing (LPO) are the new outsourcing services that the Philippines can offer.

According to Charlie Villasenor, president and chief executive officer of Transprocure, companies are now planning to outsource supply chain management and procurement to reduce costs and improve efficiency. He added that the country has the potential and capability to offer supply management services.

On the other hand, Judith Lopez, chairman and senior partner of Pricewaterhousecoopers Philippines, said "the Philippines' close alignment to the US legal system attracts a number of LPO businesses from US companies." She added that lower costs and English-speaking workers will be beneficial for the country in meeting the LPO demand.

Source:
http://www.malaya.com.ph

�You get what you pay for' in Outsourcing Deals

Tue, 26 Jan 2010 00:00:00 -0800

After studying different outsourcing deals, researchers at the University of Tennessee found out that there are several mistakes committed by companies when it comes to establishing outsourcing partnerships.

"One of the common mistakes companies make is that their business model and the outsourcing contract are not aligned," said Kate Vitasek, UT lead researcher and supply chain consultant. "Economist Steven Levitt states it best - one of the most powerful laws of the universe is the law of unintended consequences. And a key reason for unintended consequences is that people do what they are paid to do." Vitasek said buyers will only get what they contract for, and service providers will only do what is indicated in the legal agreement.

The research team had identified ten mistakes companies make in outsourcing deals. These include perception on outsourcing only as cost-cutting measure, outsourcing that is purely transactional, and the lack of mature processes to keep track of the service provider's performance.

Source:
http://www.computerworld.com.au

Outsourcing posts highest growth in six quarters

Mon, 25 Jan 2010 10:00:00 -0800

According to Sourcing Focus, recently released data from TPI and Information Services Group indicates that the fourth quarter of 2009 was the best performance the global outsourcing market has had in six quarters.

Data from the 4Q09 Global TPI Index showed the outsourcing market's total contract value is $24.7 billion � a 47% increase successively and 8% year-over-year. This is calculated based on commercial outsourcing contracts worth over $25 million.

�As we anticipated, 2009 marked a low point in outsourcing because of the recession in the general economy,� whilst �the global market bottomed in the first half of the year it now shows signs of recovering slowly and steadily, with the outlook for building on its second-half momentum positive,� commented TPI Global Operations president, Mark Mayo.

IT outsourcing was pegged as the main sector driving outsourcing growth - with Europe, the Middle East, and Africa its key players.

http://www.sourcingfocus.com/

English Only Policy Officially Launched

Fri, 22 Jan 2010 00:00:00 -0800

The Organizational Development / Employee Relations (OD/ER) Department officially launched the English Only Policy (EOP) last January 21. The policy is part of the company's efforts to strengthen the employees' communication skills. Attendees of the launch were members of the operations team, project managers, team leaders, and supervisors across projects.

The English training program for Yell employees have already been started this month. English Only signs were also posted in the workplace to encourage employees to follow the EOP. According to Regina Lomotan, OD/ER Manager, rewards will be given to teams and team leaders who consistently speak English. Employees are also encouraged to give their creative ideas or suggestions that will help in implementing this policy.

The OD/ER Department will keep track of the progress of the policy. �It will succeed only if we are all active in participating and communicating well in English. I hope we can have a successful implementation of the policy and we truly appreciate your full support and cooperation,� said Ms. Lomotan.

RP BPO facing incentives challenges

Thu, 21 Jan 2010 14:00:00 -0800

Business Mirror reports that the Philippine outsourcing industry is going to have to step up its incentives game if it is going to contend with emerging offshoring/outsourcing destinations. A global study by PricewaterhouseCoopers shows that governments of rival outsourcing destinations are already integrating policies and aggressive programs to attract a bigger share of outsourcing investments.

Board of Investments (BOI) managing head, Elmer Hernandez says current laws limit the incentives that the Philippines can offer to outsourcing buyers:

�We can only provide incentives in terms of what is provided in the law. As for the other support, the National Competitiveness Council is working on streamlining business requirements and government red tape.�

Outsourcing destinations like China, Eastern Europe, and Latin America have reportedly already integrated government policies and support programs to supplement their respective IT services sectors.

The Philippines offers income-tax holidays, duty-free importation of capital equipment, and a lower 5 percent tax on gross revenues. It currently has an incentives-rationalization bill pending in Congress.

PWC chairman, Judith Lopez, states that investors are looking for relaxed regulations, cheap labor and low rent in addition to tax breaks. Lopez believes that government support �will definitely tilt the balance on which countries will become the preferred outsourcing destinations�.

Source:

http://www.businessmirror.com.ph/

Demand for FAO Services to Grow in 2010, Survey Shows

Wed, 20 Jan 2010 00:00:00 -0800

Key findings of The WNS Annual CFO Survey 2010 show that this year, the demand for finance and accounting outsourcing (FAO) will continue to grow.

One hundred CFOs from companies with over $3bn in revenues took part in the online survey. More than 75 percent of senior finance executives said they aim for expansion of their outsourcing programs this year, while 85 percent are satisfied with the benefits from outsourcing finance and accounting processes.

"The survey clearly suggests that FAO has become a mainstream tool as 85 percent of respondents say they are satisfied with the benefits. While FAO has been commonly used to reduce cost of operations, it is increasingly becoming more strategic, focusing on transforming F&A operations," said Sulakshana Patankar, Business Unit Leader, WNS Finance and Accounting Solutions. "It is extremely encouraging to note that respondents who outsource plan to increase the scale of their programs in 2010, expanding both processes in scope and adding business units and geographies."

The survey was commissioned by WNS (Holdings) Limited (NYSE: WNS) and conducted by EquaSiis, an EquaTerra company.

Source:
http://money.cnn.com

New groups join push for DICT bill

Tue, 19 Jan 2010 09:00:00 -0800

The National ICT Confederation of the Philippines (NICP) has joined the campaign for legislators to pass the bill to establish a Department of Information and Communications Technology (DICT), Philippine Daily Inquirer reported. NICP chair Jocell Sigue believes the creation of the DICT is a necessary step in fortifying the country's position in the global outsourcing marketplace � especially throughout the current recession.

�It is time that the clamor for a DICT to be heard by the highest law-making bodies of this country. Other Asean governments heeded the call for an ICT department or ministry, and are now closing the gap on our hard-earned and much-valued ICT competitiveness,� Sigue said.

Sigue stressed the importance of ICT in developing the local outsourcing sector, which helped the country post positive numbers throughout the recession. In 2008, the Philippines' IT and Business Process Outsourcing (BPO) sector earned $6 billion in export revenues � employing around 400,000, NICP reported. The House of Representatives passed the DICT bill in the same year. A similar proposal is currently pending in the Senate.

Other groups joining the campaign include the Joint Foreign Chambers, the Business Processing Association of the Philippines, the Contact Center Association of the Philippines, the Management Association of the Philippines, and the Philippine Chamber of Commerce and Industry.

Source:

http://business.inquirer.net

RP BPO Expects $11B Earnings, over 1 Million Workers

Mon, 18 Jan 2010 00:00:00 -0800

For the 10th year of business process outsourcing (BPO) in the country, the sector eyes earnings of at least $11 billion and over one million workers employed in the industry.

According to TeleDevelopment Services (TDS) President Jon Kaplan, 2010 is a big year for the industry as it marks the 10th anniversary of call centers in the country. �As we approach this milestone, it is necessary to evaluate and carefully map our plans for our continued development. We need to resolve training challenges for a more specialized workforce to addressing the increasing demand for high-value and value-added services,� Kaplan said.

He added that outsourcing higher-value services (knowledge process outsourcing or KPO) will be the next revenue earner, so BPO players must be ready to meet the demand and challenges in the next decade.

Source:
http://www.mb.com.ph

WNS unveils delivery center in Manila

Fri, 15 Jan 2010 13:00:00 -0800

Leading global business process outsourcing provider, WNS, announced that it had launched its new outsourcing delivery center in Manila, CNN reported. The delivery center was inaugurated by President Gloria Macapagal-Arroyo, who met with WNS employees after an opening ceremony.

"In a very short time, we have grown ahead of plan and expanded the services we deliver to our global client base from the region. This is truly a testament to the high quality talent in the country and their strong focus on service excellence," stated Group Chief Operating Officer of WNS Global Services and Chairman, WNS Philippines, Anup Gupta.

According to CNN, WNS Philippines has grown to over 1100 employees in only 18 months. WNS formed WNS Philippines early in 2008 in a joint venture with Advanced Contact Solutions. The new outsourcing delivery center will service several industries that include consumer products, travel and financial services, telecommunications, and provide voice and back-office services.

President Arroyo characterized the outsourcing event as a sign that her Cyber Corridor project was �in full swing�. The Cyber Corridor project aims to create interconnected centers for technology-related services in five �super-regions� that include Baguio, Clark, Metro Manila, Cebu, and Davao.

�We are extremely grateful to the government of The Philippines for the support extended to us. We see tremendous opportunities in providing world-class services to our customers as we continue to grow our business,� commented Prabhakar Bisen, CEO of WNS Philippines.

Source:
http://money.cnn.com

Forrester: Security Outsourcing may be Newest Trend in 2010

Thu, 14 Jan 2010 00:00:00 -0800

As the number of companies that outsource their security tasks increases, Forrester Research said network security outsourcing may be the newest trend this year.

The new Forrester report indicated that even though a company outsources security, it is still �accountable for the protection of that data�. Also, service providers must be held responsible in case problems occur. "This is probably the most overlooked aspect of the outsourcing relationship," the Forrester report said. "On paper, you can terminate the relationship with the outsourcer as soon as the contract ends, but in reality, you invest a lot of time, effort and resources in a relationship - and it becomes very hard to change outsourcers quickly."

Security outsourcing is risky, and many companies are still not open to this idea, even as a cost-cutting measure. However, Forrester report said this can be studied by firms which are striving for improved network security at low costs.

Source:
http://www.fiercecio.com

Outsourcing to present �full potential� in 2010

Wed, 13 Jan 2010 17:15:00 -0800

Information and communication technology research and advisory firm, XMG Global, claims in a report that �outsourcing will present its full potential once more in 2010� - with revenues for the year expected to reach $412 billion.

While some predict that affordability will continue to dominate as the driving factor for buyers in the outsourcing industry, XMG says that outsourcing this year will be considered as a business model aimed more towards efficiency and profitability and not simply a means to cut costs.

�In the face of global competition, governments of major outsourcing destinations will formulate new rounds of resolutions to improve business environments and promote new investment locations,� XMG said.

Among other predictions for the year in the report by XMG were India and China being the most preferred outsourcing destinations. XMG warns of a skills shortage by the second quarter and higher levels of competition for workers and customers in the telecommunications sector, Philiippine Daily Inquirer said.

Source:

http://business.inquirer.net/

BPO Vendors to Focus on Innovation, Process Improvement

Tue, 12 Jan 2010 00:00:00 -0800

This year, business process outsourcing (BPO) vendors will concentrate on innovative approaches in operations and marketing, as well as process improvement. According to ValueNotes, a research institute, outsourcing vendors are focusing on innovation in order to boost productivity and reach their target customers.

It is expected that this year, the industry will see an increase in IT spending, emergence of Asia as a major outsourcing destination, large KPOs, multi-service, and shift from process innovation to marketing innovation. Also, large captives will fade away, but according to the research, some may downsize but will still retain operations.

Source:
http://www.financialexpress.com

Outsourcing costs expected to decline in 2010

Mon, 11 Jan 2010 17:00:00 -0800

Industry experts are expecting that the downward trend in prices for IT services during 2009 will continue this year. According to CIO, the main causes for the trend are the global economic slowdown, increased offshoring activity, pricing pressure from buyers, and disaggregated vendor services.

Compass America calculates that the costs for a majority of infrastructure services-desktop, mid-range, and network services will decline at single-digit percentages this year. This excludes storage costs, however, which are expected to decline another 25% this year.

Ben Trowbridge, CEO of outsourcing advisor, Alsbridge, states that although providers will remain focused on cost cutting and avoiding future investments, "price pressure will be tempered by the need to ensure overall deal parameters do not jeopardize success".

Despite the forecasts on the trend prevailing in 2010, some believe that it will not be a �buyer's market� should the economy show signs of recovery. Chris Kalnik, partner and managing director of financial analysis for sourcing advisor TPI quotes:

"If the economy strengthens, TPI believes that the service providers will attempt to recoup some of the price concessions that they have made over the past year."

Source:

http://www.cio.co.uk/

Providers Predict Rapid Expansion in Global Outsourcing Industry

Fri, 8 Jan 2010 08:00:00 -0800

In a recent survey from Duke University's Offshoring Research Network and PricewaterhouseCoopers, service providers think that the demand for the services they offer is rapidly expanding so they are increasing their workforce and adding new service offerings.

Survey results show that 62 percent of 514 providers in 50 countries plan to offer more services. Also, many providers said they expect to start new contracts on IT and software development in the next 18-36 months.

India is still at the forefront when it comes to outsourcing, but new destinations are tapping the global market. "Growing competition has transformed the outsourcing industry into a global race for market share," said PwC Managing Director Dr. Charles Aird. "India's success as the world's back office has motivated other developing countries with well-educated and underemployed populations to seek to duplicate their experience."

Source:
http://www.prnewswire.com

RP hosts e-Services Global Sourcing Conference

Thu, 7 Jan 2010 13:30:00 -0800

The 10th e-Services Global Sourcing Conference and Exhibition is being held in the Philippines having been recently dubbed as �Best Outsourcing Destination of the Year�. The Philippines won the award as part of the 6th annual National Outsourcing Association Awards in the United Kingdom � its second since winning the award in 2007.

According to Philippine Star, the event is an annual trade show spanning two days to bring together outsourcing providers from around the globe. This year's show promises 200 exhibitors and more than 2,000 trade buyers. The Department of Trade and Industry is preparing for the event through the Center for International Trade Expositions as part of the continuing effort to promote the Philippines as the premiere outsourcing destination.

Research by UK Trade & Investment indicates that the Philippines has moved to 9th among the top markets for global investors in 2009 � up 14 spots from last year. The e-Services event will be held on February 8 and 9 at the SMX Convention Center in Pasay City, Philippines.

Source:

http://www.philstar.com

Research Shows Underinvestment in IT Hurts Companies

Wed, 6 Jan 2010 00:00:00 -0800

Business executives from 13 countries said underinvestment in IT had taken its toll on company operations during the global financial crisis. This may be a reason why there is a need for IT outsourcing.

In an Enterprise Intelligence survey by BT Global Services, 61 percent of CIOs and 63 percent of senior executives said ageing IT infrastructure hindered them to �think globally�. Also, 25 percent of business leaders said lack of enough funds for technology had negatively affected innovation while 23 percent said this prevented them from getting new deals.

"This research � should act as a call to action on key issues such as the role IT plays in driving global business success. The research also highlights that, in the current climate, CIOs face key decisions about how they approach the upturn," said Hanif Lalani, CEO of BT Global Services.

Source:
http://www.mcsolutions.co.uk

RP welcomes Carbon Accounting Outsourcing

Tue, 5 Jan 2010 11:45:00 -0800

Carbon accounting work has become a major obstacle for companies worldwide due to increasing regulatory and market forces, E-Commerce News reported. Carbon accounting outsourcing (CAO) may be the next big thing in the global outsourcing industry as companies worldwide adjust to an increasingly �carbon constrained� economy. The UN climate summit in December magnified the issue, discussing emission cuts on greenhouse gases.

The Philippines became the first offshore destination to offer Carbon Accounting Outsourcing solutions when global outsourcing service provider, ADEC Solutions, opened FirstCarbon facilities in the Philippines in June 2009. While there are green consultancies that offer advice on carbon reporting, FirstCarbon's facilities in the Philippines is the first to undertake the complex work necessary to collect and report on energy use and carbon emissions.

"ADEC's experience in BPO means we already understand how to handle much of the data that will be required, such as accounts payable information and fuel costs," said company director, Ian McGowan. "And by using our facilities in the Philippines we would expect to offer cost savings of 35 to 40 percent compared with doing the work in-house."

The global market for carbon accounting, collecting data and consulting services is expected to reach $7 billion to $9 billion by 2012.

Source:
http://www.ecommercetimes.com/

Cebu Poised for Economic Rebound this Year

Mon, 4 Jan 2010 00:00:00 -0800

Economic experts are confident that this year will be a good one for the economy of Cebu, with business process outsourcing (BPO), tourism, and export as primary economic drivers. This is despite the impact of the global economic downturn that the province will still face in the next two years.

�We are poised and prepared for the economic rebound in 2010. Our export sector has showed positive developments towards last quarters of 2009. Even in the midst of global recession Cebu's economic performance continued to be robust and sound,� said National Economic and Development Authority (NEDA-7) regional director Marlene Rodriguez.

This year, it is expected that Cebu will attract more BPO investors. According to Joel Mari S. Yu, Managing Director of Cebu Investment and Promotions Center (CIPC), the province is starting to get inquiries for voice-based and non-voice BPO work.

Source:
http://www.philstar.com

Airline outsourcing opens in Taguig

Tue, 29 Dec 2009 08:00:00 -0800

A $3 billion investment was made by Indian business process outsourcing (BPO) firm, InterGlobe Enterprises Pvt. Ltd., last week in Bonifacio Global City, Taguig.

According to Business Mirror, the investment follows an expected rise in airline industry outsourcing due to hiking jet fuel prices, labor disputes, and online ticketing among others in the US. InterGlobe CEO, Vipul Doshi, said the company will make additional investments in the next 12 to 18 months to increase available seats.

�Our establishment here reflects our confidence on the airline industry that is coming out slowly from recession. The last few months are fairly good months for the United States airline business,� Doshi said.

The company will be looking to capitalize on increased sales of airplanes for both international and domestic travel and leverage lower costs on several management items including back-office operations.

Source:

http://www.businessmirror.com.ph

India Loses Voice-related BPO Jobs to RP

Mon, 28 Dec 2009 00:00:00 -0800

India is falling behind the Philippines when it comes to voice-related tasks. According to Pramod Bhasin, president & CEO of Genpact, India's largest BPO company, service providers and customers prefer the Philippines for voice-based work because Filipino workers are more proficient in English compared to their counterparts in India.

In the Philippines, BPO players do not have to deal with problems that exist in India. These include security, power back-up in BPO offices, and transport of employees.

Aside from English proficiency, the geographical location of the Philippines proves to be working in its favor as far as outsourcing is concerned. According to Prabhakar Bisen, head of the Philippines operations of WNS, �the country's time zone advantages make the Philippines a natural choice for providing 24x7 service to global companies, particularly those based in the US.�

Source:
http://economictimes.indiatimes.com

Iloilo Lacks Enough Space to Meet BPO Demand

Thu, 24 Dec 2009 00:00:00 -0800

With the expected rise in the number of BPO locators in Iloilo City next year, Jessraf S. Palmares, Acting Chairman of the Iloilo Federation for Information Technology (IFIT), said the Philippine's third New Wave City lacks enough space for outsourcing.

�We have no more developed sites for BPOs,� said Palmares in the recently concluded Commission on Information and Communications Technology (CICT) Convergence 2009. �The four buildings which BPOs currently use are malls whose top floors had been converted into cyberparks.� He said they are encouraging the private sector to convert empty lots into cyberparks.

Palmares added that Iloilo produces 20,000 graduates annually, and they want to �bring the work where the talent is.� However, only 5,000 of the total number of graduates have taken IT and IT-related courses and the city needs more to meet the BPO demand. He said it is necessary to conduct training programs and train graduates to be more competent in web management and development.

Source:
http://www.mb.com.ph

RP Bids to be Global Leader in Creative Process Outsourcing

Wed, 23 Dec 2009 00:00:00 -0800

With the talent and skills of Filipinos in the fields of animation and creative design, the Philippines is now targeting to take the lead in the global industry of Creative Process Outsourcing (CPO). This is according to Weng Bagadion, President of the Animation Council of the Philippines.

�I am personally advocating to the various agencies like BPAP [Business Processing Outsourcing of the Philippines], DTI [Department of Trade and Industry], and DFA [Department of Foreign Affairs] that the Philippines should claim CPO. We want our own brand of animation. If one is familiar with Maslow's hierarchy of needs, the Filipino industry has matured to a point where we are now seeking for self-actualization,� Bagadion said.

Aside from the innate talent in creative design, Filipino workers are also proficient in English and they deliver high quality outputs at lower costs.

CPO encompasses a wide range of fields including animation, game development, industrial design, film, advertising, photography, publishing, and corporate communication.

Source:
http://businessmirror.com.ph

Europe Takes Lead as World's Highest Outsourcing Spender

Tue, 22 Dec 2009 00:00:00 -0800

According to the report entitled �TPI Momentum Market Trends and Insights� by TPI, an outsourcing advisory company, Europe now holds the title as the world's highest spender in outsourcing this year, moving past the US.

The report shows that the most successful companies based in Europe spend more on outsourcing deals by the end of third quarter, with a total annual contract value (ACV) of $30.6 billion. This is compared to those companies located in the US and Canada which spend $28.4 billion in outsourcing.

Last year, the most successful companies in the US and Canada spent an ACV of $29.6 billion, while Europe-based companies registered an ACV of $28.7 billion spent in outsourcing deals.

Source:
http://www.silicon.com

MicroSourcing, AMA University Sign MOA

Fri, 18 Dec 2009 00:00:00 -0800

CEO Philip Kooijman and HR Manager Julius Burton of MicroSourcing, as well as Mr. Bobby Bausanta, Sr. AVP for Alumni Affairs and Mr. Arnel Hibo, FVP - AMA Computer University signed a Memorandum of Agreement (MOA) last December 17. This is part of the company's initiative to tap alumni who might qualify for the needs of clients and to increase brand awareness.

Through this MOA, MicroSourcing will gain access to AMA University's alumni database from year 2000 onwards, and OJTs can be added to its workforce. In return, the educational institution requires the company to accept a certain number of OJTs, hire at least one AMA graduate per year, and conduct seminars for their students. "We strongly believe that our partnership with AMA University will be mutually beneficial by providing AMA students and alumni interesting internship and job opportunities at MicroSourcing and at the same time, it will help us in our pursuit of finding the best talent available in the Philippines. We look forward to working with them for years to come," Mr. Kooijman said.

Mr. Ron Quijano, Sourcing & Marketing Specialist, is the one who handles campus partnerships for MicroSourcing and has been working very hard to form partnerships with various educational institutions. Part of this initiative was the demographic survey he conducted among the employees of MicroSourcing. "The purpose of that checklist is to find out the school demographics of the employees. We will identify which schools are worth establishing partnerships with based on the data we've gathered," Mr. Quijano said.

MicroSourcing throws Aloha-lidays Christmas party

Wed, 16 Dec 2009 15:30:00 -0800

MicroSourcing successfully hosted the Hawaiian Luau-themed Christmas party entitled," Aloha-lidays", last Saturday, December 12. Held at the Palladium Village in Mandaluyong, the Aloha-lidays party was among the biggest of the company's annual Christmas celebrations. Featuring musical performances from individual departments, free flowing food and drinks, and a swimming pool, the party was definitely one to remember � even if many had trouble doing so the next morning.

CEO, Philip Kooijman attended the party along with MicroSourcing's party-faithful employees and a few clients. Following opening remarks, the party was well underway with lei'd guests in luau outfits crowding the buffet tables for some of that Lechong Baboy - and San Miguel Beer and mixed drinks from The Bar filling cups left and right.

Party guests were treated to performances from MicroSourcing's own talent of musicians with Yell Adworks putting together a rousing set with songs form Gin Blossoms and Parokya ni Edgar. EV's band, Rastafire kicked it up another notch with rock-reggae flavors from Sublime, 311, and Dishwalla getting heads bobbing and hips swaying.

The night also featured raffle prizes that included a 22� Samsung LCD TV (won by Dolores Torralba), and an overnight stay at Punta de Fabian (scooped up by Antonette Lim). Of course, no beach-themed party is a party without a limbo rock contest � which Creative Services Group member, Wilson Alcantara won with surprising ease. Awards were also handed for Best Luau Outfit for both male and female. The contest proved quite controversial with the crowd's cheers apparently indicating a tie between Kent Riveta and Rodeny Polec for best male, and Angie Flores being declared best female.

For those interested in viewing more pictures from this party to relive its good vibes, swing over MicroSourcing's Multiply site here: http://microsourcing.multiply.com/photos/album/5/ALOHA-lidays_Microsourcing_Christmas_Party

Cloud Computing Tops List of IDC 2010 Tech Predictions

Tue, 15 Dec 2009 00:00:00 -0800

Cloud computing got the top spot in the list of 2010 Technology Predictions of IDC, a global market intelligence firm.

"[Cloud computing] will move from an amorphous buzzword to a more tactile reality as service providers come to grips with the challenges of providing public cloud and organizations realize the flexibility that implementing a cloud infrastructure internally can provide," said Simon Piff, Head of Asia/Pacific Predictions Committee for 2010. He added that transformation and recovery are two major factors that will affect the top technology predictions for next year.

IDC Technology Predictions for 2010:

1.    Cloud computing
2.    Business analytics
3.    Adoption of social media in enterprises
4.    Converged fabric solutions
5.    SaaS to KaaS
6.    Growth of mobile segment
7.    Dawn of the enterprise appliance
8.    Chargeback functionality
9.    �Intelligent� initiatives and tenders in Asia
10. Machine-to-Machine (M2M)

Source:
http://www.techworld.com.au

China emerging as RP BPO rival

Mon, 14 Dec 2009 13:30:00 -0800

According to Socio Economic Planning Secretary, Augusto Santos, China is an outsourcing destination that will prove as a key challenge for the Philippine Business Process Outsourcing (BPO) sector.

According to the Philippine Daily Inquirer, Santos stated in a briefing that the Philippines �may be overtaken� if precautionary methods are not undertaken. The briefing followed a meeting of the National Economic Development Authority (Neda) board and the National Anti-Poverty Commission in Malaca�ang.

Santos exhibited recent developments in China, namely its continuing effort to improve its English proficiency levels.
�We are part of the global community and there is economic competition among countries. If we want to increase our competitiveness, we have to continuously improve our proficiency in English,� Santos stated.

The Philippines' advantage as an outsourcing destination was partly affected upon integration of a new minimum wage law. Along with India, the Philippines has been facing competition from outsourcing destinations such as Vietnam, Malaysia and Sri Lanka � who have all been aggressively marketing themselves as BPO destinations; the Inquirer said.

Source:

http://business.inquirer.net/

Local BPO's need to train staff how to sell better

Fri, 11 Dec 2009 00:00:00 -0800

Local outsourcing companies need to train their people better in the service and sales aspects of the business, an industry expert said.

Datacraft Asia general manager for converged communications and customer interactive solutions Nagi Kasinadhuni said Asian contact center agents are not trained enough in multi-functional services.

"In Asia, only 30.3% of agents are able to sell as well as service customers in a call so we see that there is difficulty on the part of agents to serve customers in multiple ways during a call. If customers ask about their billing problems, the agent can answer the question but cannot sell other higher-value services to customers," he said.

Asian contact centers, including those in the Philippines, are not equipped to sell higher-value service, with Kasinadhuni noting that the ability to serve customers in multiple ways creates customer loyalty and retention.

In a Datacraft study, Asia is shown to be leading the way in measuring customer satisfaction with a 78.6% rating compared with the 64.7% in other parts of the world.

Source: www.bworldonline.com

Filinvest banking on New Wave cities to fuel BPO growth

Thu, 10 Dec 2009 00:00:00 -0800

Filinvest said it plans to take advantage of the expected growth of the �Next Wave Cities� (NWCs) by expanding its Northgate Cyberzone in order to attract more BPO locators.

The Northgate Cyberzone, a Peza-registered IT and BPO hub located south of Manila, currently serves 20 major locators with a combined work force of around 13,500. These locators include HSBC, Genpact, Convergys, eTelecare and Apac.

The proposed expansion will include the construction of tow new IT building within the zone. The buildings have a combined floor area of 40,000 square meters and can accommodate roughly 5,700 call-center seats. Northgate Cyberzone plans seven more buildings in the future.

�Currently, we don't see any decline in demand,� said Maricel Lirio, vice president and project group head of Northgate Cyberzone. �While there is a stable supply of spaces, there is definitely going to be a need for more in the future.�

The local BPO industry is confident that 2010 will prove to be a rebound year, despite growing concerns over diminishing BPO opportunities in the wake of the global recession. Local BPO executives have been quoted as saying they estimate the industry grew 23-percent in terms of overall revenue in 2009.

Source:

www.businessmirror.com.ph

Cebu firm to ramp up development of IT park

Tue, 8 Dec 2009 00:00:00 -0800

Cebu Property Ventures Development Corp. (CPVDC) said it would fast track the development of an IT Park in the city to accommodate more BPO operations.

CPVDC President Francis Monera said the company has earmarked P200 million for the initial stage of the project, which aims to further develop the Asiatown IT Park that currently houses 60 call centers that employ 13,000 people. The new development initially called the enclave, is located at the far corner of the 24-hectare facility.

Monera said CPVDC also plans at least three major vertical developments in Asiatown for 2010 when two BPO buildings and one residential-hotel building will be constructed.

Source:

http://www.businessmirror.com.ph

BPO Firm Says RP Needs Standardized Training for Competency

Mon, 7 Dec 2009 00:00:00 -0800

According to Future Perfect Director of Communications Hayley McCarthy, BPO companies in the Philippines must adopt a standardized training program to measure and evaluate competency of BPO workers in order to stay competitive in the outsourcing industry.

�Call centers have specific requirements for communication assessment and training. Currently these are not being adequately met: an over-reliance on school-book approaches and error-counting is threatening the growth of outsourcing in the Philippines,� McCarthy said.

She added that if there is a standardized set of training materials designed to improve the communication skills of call center agents, the country will be more attractive as an ideal destination for BPO services.

Source:
http://businessmirror.com.ph/

European BPO to set up Iloilo facility

Mon, 7 Dec 2009 00:00:00 -0800

European outsourcing firm Transcom announced that it will set up an 800 seat facility in Iloilo City in January 2010.

Transcom vice-president and regional manager for North America and Asia PacificDuncan H. Cowie said the firm would initially employ more than 800 Ilonggos when the new facility opens next month, adding that the company plans to increase set capacity to eventually employ 2000 people by the end of 2010.

Cowie said the construction of a new power plant in the city was a key factor in the firm's decision to set up an Iloilo site, because call centers need a constant supply of power. Transcom's facility will be at the Amigo Plaza Mall on Iznart Street in downtown Iloilo City, which is a PEZA accredited building for Information Technlogy.

He added that the quality of available manpower was also a key factor for Transcom, citing Ioilo hiring rate of 40%-45% as double that of the national average of 2%-25&. Transcom began hiring and training employees more than a month ago. Chris Mason, vice-president for implementation and solutions, said the firm did not meet any difficulty in hiring employees, particularly for the management level.

"Hiring management level officers is usually the hardest process but here in Iloilo, we did not find it hard to get the people we need. It's primarily because of the numerous universities in Iloilo," Mr. Mason said.

Transcom employs more than 6,000 local employees and is primarily engaged in customer care, sales and support, credit management and additional customer-related services. It has 75 sites in 29 countries.

Source:

http://www.bworldonline.com/

BPO execs name tight labor market as top concern

Thu, 3 Dec 2009 00:00:00 -0800

A survey conducted by Outsource2Philippines and the Business Process Association of the Philippines (BPA/P) � the Philippines' governing outsourcing body � showed that 54% of BPO executives believe the tight market for qualified outsourcing workers could limit the local outsourcing industry's growth.

According to the Philippine Daily Inquirer, 46% of the executives polled claimed that retaining workers in the Knowledge Process Outsourcing subsector was also a major concern. Those surveyed named complex training requirements (34 percent), high competitive wages (30 percent), and inadequate education infrastructure (29 percent) as other major challenges that the Philippine outsourcing industry faces.

Among others listed were government corruption (21%) and, consequently, the negative perception of the Philippines (15%). However, 52% of the executives indicated that as an outsourcing destination, the Philippines was not as risky as India. Furthermore, the majority of those surveyed said they would ramp up employees by %6 to 50% in the next year.

Source:

http://business.inquirer.net/

Bayan to support Next Wave Cities

Fri, 27 Nov 2009 14:30:00 -0800

Bayan Telecommunications have announced that they plan to fully support the offshoring & outsourcing industry in the Philippines and explore business opportunities in its list of Next Wave Cities.

The Philippines is expected to own 10 percent of the global offshoring & outsourcing market share by 2010. The country will need an estimated 1 million new employees in the industry in order to meet the goal.

Bayan said it seeks to help achieve that goal by supporting outsourcing companies in alternate locations outside Manila. Bayan was in attendance in Iloilo for Covergence 2009 � a project of the Commission on Information and Communications Technology (CICT).

�In line with our thrust of bringing out the best in the lives of Filipinos, Bayan hopes to have highlighted the regional capabilities of the country to attract investors and locators for various outsourcing and offshoring services as part of the Philippine cyberservices corridor,� Bayan Managing Director, Fred Bernardo stated.

The Philippines' Next Wave Cities in the outsourcing sector are Iloilo, Metro Laguna, Metro Cavite, Davao, Bacolod, Pampanga Central, Bulacan Central, Cagayan de Oro, Bulacan South and Lipa.

Source:
http://www.philstar.com/

Iloilo City Urged to Attract more BPO Investments

Thu, 26 Nov 2009 00:00:00 -0800

Commission on Information and Communications Technology (CICT) Secretary Ray Anthony Roxas-Chua III said the people of Iloilo City must work harder in order to attract more IT-BPO investments and provide more job opportunities. The city is considered one of the top new wave cities in the Philippines.

"Iloilo is number three, but you can do much to further improve," Secretary Chua said at the opening of the Convergence 2009 in the city. He added that the presence of many business outsourcing companies in the country is concrete evidence of the accolades given to the Philippines. The most recent award is the Best Offshoring Destination of the Year title given by UK's National Outsourcing Association (NOA).

At present, the Philippines ranks second, next to India, in the list of key outsourcing destinations in the world. Based on the CICT report, the BPO industry in the country employed about 400,000 workers in 2008, and reported US$6.1 billion in export revenues.

Source:
http://www.pia.gov.ph

Advocacy group formed for $6B BPO sector

Wed, 25 Nov 2009 11:45:00 -0800

The Call Center Agents of the Philippines (ACCAP) was officially launched at a press briefing last Tuesday, November 24. The group is reportedly non-profit and will work to unite the increasingly large community of call center and Business Process Outsourcing (BPO) workers in the Philippines.

According to ACCAP secretary general, Kevin Carreon, workers in the Philippines' outsourcing industry have grown to close to 800,000.

�Over the past 10 years, the country has become a significant outsourcing destination and extremely competitive due to the highly trained English-speaking Filipino agents. This is the reason more and more US and UK companies prefer the Philippines to outsource jobs,� said Carreon.

The ACCAP also launched its own website designed to connect call center and other outsourcing workers throughout the nation, and to help them find new jobs and skills development opportunities.

Source:

http://www.businessmirror.com.ph

e-Services Event to Highlight KPO Services

Tue, 24 Nov 2009 00:00:00 -0800

Outsourcing services which are considered high-end and analytic-intensive will be highlighted in the 10th e-Services Global Sourcing Conference & Exhibition. This will be held on February 8-9, 2010 at the SMX Convention Center, Mall of Asia Complex, Metro Manila.

"In light of the global economic downturn, emerging trends reflect a movement up the value curve [away from voice-based services] towards what is called knowledge process outsourcing (KPO) with functions involving greater business complexity," the Center for International Trade Expositions (CITEM) said. These outsourcing services refer to tasks from the fields of medicine, engineering, and finance. CITEM added that cloud computing technology will also be discussed in the event.

The upcoming e-Services event aims to promote the Philippines as the ideal outsourcing destination. About 200 local and foreign IT service providers and 2,000 buyers are expected to take part in the event.

Source:
http://www.bworldonline.com

IT Outsourcing in Europe �not working�

Mon, 23 Nov 2009 13:00:00 -0800

A recent survey conducted by Forrester Research indicates that outsourcers in Continental Europe feel the outsourcing model utilized by Indian IT service providers is �not working�. The survey was conducted during the last quarter and the first month of this quarter. A large portion of the firms surveyed indicated that they sourced hardware, software and people from different locations. 60% of the firms, however, said they still outsource to companies in India. Principal Analyst of Forrester Research, Sudin Apte, commented on their findings:

�Although Europe offers a lucrative opportunity, the success rate for Indian companies has been low and ramp-up of operations has been slow.�
The majority of the outsourcing firms surveyed said they did not expect IT budgets to be any cheaper in the UK, France and Germany � with �even fewer� considering India as an offshoring option.

The study by Forrester research cites a �highly federated decision making process�, complex procurement processes, and language barriers as the major challenges outsourcing service providers face in Europe.

�Most companies in Europe are more pan-European than global,� said Apte. �Many Indian IT companies confuse cultural compatibility with local presence.�

Source:
http://www.sourcingmag.com/

'RP BPO workers should take graduate studies'

Thu, 19 Nov 2009 00:00:00 -0800

Consulting firm Watson Wyatt Worldwide said there is a need for Filipinos working in the business process outsourcing industry to take graduate studies since other countries might surpass the position of the Philippines in the world of BPO.

�The Philippines has an excellent supply of graduates of college degrees, but it does not have an excellent supply with professional degrees, or those with master's degree,� said J. Michael Orszag, head of research at Watson.

While the country produces a lot of graduates every year, he said the BPO sector needs more in the future, and workers must have management skills. It is also necessary to urge workers to aspire for managerial positions.

Orszag added that the country must focus not only on how to stay afloat amidst the current economic downturn but also on long-term solutions such as addressing the problems on education and infrastructure.

Source:
http://businessmirror.com.ph

Dutch outsourcing facility opened in Cebu

Wed, 18 Nov 2009 11:00:00 -0800

Lighthouse Holdings B.V. Recently began outsourcing operations in Cebu. The new facilities, located at the Mactan Export Zone (MEZ-2), is the second outsourcing facility for Lighthouse Holdings after opening a center in China. The Netherlands-based company has reportedly invested upwards of 250,000 Euro since being established in Cebu, with the company stating they expect to invest over a million Euro in a year.

The new facility will be focusing on software development as part of the company's pursuit of corporate Intellectual Property services. CEO Geert Lagemaat claimed that the Philippines was chosen as an outsourcing destination for the availability of quality software developers and impressive government support:

�We're here because we need a qualified team. So far we have found very good people. Culturally, it's much easier to operate here [compared to people in China].�

Cebu's software outsourcing sector has averaged revenues of $60 million a year - a number that is expected to double this year.

Source:

http://www.philstar.com/

CDO Cited as 'Most Competitive' Outsourcing City in Mindanao

Tue, 17 Nov 2009 00:00:00 -0800

With more room for business process outsourcing and a large pool of skilled workers, Information and Communications Technology (ICT) companies recognized Cagayan de Oro (CDO) as the most competitive city in Mindanao for outsourcing work.

Elpidio Paras, Chairman of the CDO ICT Business Council, told industry leaders and ICT students in the recently concluded Convergence 2009 ICT Roadshow at Pryce Plaza Hotel that Cagayan de Oro has several potential outsourcing sites including the Phividec [Philippine Veterans Investment Development Corp.], the new Lim Ket Kai Gateway Tower, and the SM City-CdO IT Building.

The low power cost in the city is also another plus for ICT companies. Paras said there is enough power supply from sustainable resources. �Utility rates here are lower by at least 30% compared with Manila's rates, management costs are also low, and salaries are low- to mid-level. Cagayan de Oro is also typhoon-free,� he added.

Source:
http://www.bworldonline.com

Gov't needs �wake-up call� on provincial call centers

Mon, 16 Nov 2009 17:15:00 -0800

Joey de Venecia III, a pioneer in the Philppines' IT (Information Technology) outsourcing industry, reiterated the importance of the local Business Process Outsourcing (BPO) industry in keeping up with increasing competitiveness from rival Asian destinations. The call center industry in the Philippines has drawn billions of dollars in investments from major multinational firms and currently employs over half a million.

�It is not enough that we produce world-class BPO workers. The world has to be constantly reminded of this,� said De Venecia. �The Philippines must remain on top of their minds where this key industry is concerned. Their role in developing the regions should not be underestimated.�

The Business Process Association of the Philippines (BPA/P), the Philippines primary governing body for outsourcing operations, expressed similar sentiments claiming that developments in upcoming competing nations such as Vietnam, Malaysia and Sri Lanka �should serve as a wake up call for the government�.

The Philippines has been aggressively marketing their outsourcing services as of late - with ads appearing in major publications such as Time, Forbes and Fortune magazines; and commercials airing worldwide in networks like CNN and CNBC.
Source:

http://mb.com.ph/

Companies Urged to Organize IT Infrastructure Before Outsourcing

Fri, 13 Nov 2009 00:00:00 -0800

David Kline, CIO of Discovery Communications, said companies should �clean� their IT infrastructure first through virtualization and consolidation before transferring it to a service provider.

"You could do an offshore � where your management staff is saying, 'It's over there. It's not my problem anymore.' And that's not true. IT's still your mess. Get it as clean as you can get it," Kline said in a keynote address at the Global Sourcing Forum and Expo. "Know yourself. Know your limitations. It is a huge proposition to do global sourcing."

Security credentials of the service providers must also be taken into account before the transfer of IT tasks. According to a VanDyke Software report, 61 percent of the IT professionals who took part in the survey said there was an intrusion in the IT systems that they outsourced within the past two years.

Source:
http://www.eweekeurope.co.uk

Hollywood outsourcing expands in Cebu

Thu, 12 Nov 2009 10:45:00 -0800

The outsourcing of Hollywood movie production is expanding its outsourcing operations in Cebu amid increasing demand for offshore graphic artists and animators.

Hirota Paint Industries (HPI) is among such companies that are currently having to expand outsourcing operations. HPI provides visual effects editing and animation outsourcing solutions for Hollywood movies like G.I. Joe, Ninja Assasin, and Australia among others; the Philippine Star reported. The company currently employs six graphic artists for animation outsourcing solutions; a number HPI claims it is going to double within the next months.

Hollywood outsourcing firm, VersaGrafx Designs Philippines Inc., is reportedly looking to establish the Graphic Arts Academy in Cebu to further enhance the talent pool of artists in the Philippines. The academy will contain around 100 seats and will reach completion before early 2010.

VersaGrafix creative director, Junny D. Mahilum, expressed concerns that graphic artists are �overlooked by educational institutions despite it being among the most globally in-demand jobs.

Source:
http://www.philstar.com

Cam Sur Holds English Proficiency Program for Job Seekers

Wed, 11 Nov 2009 00:00:00 -0800

The provincial government of Camarines Sur (Cam Sur) is implementing a free, 100-hour English Proficiency Program (EPP). This aims to improve oral communication skills of job seekers in the call center sector, make them more competent, and increase their chances of getting hired.

According to Governor Luis Raymond Villafuerte, the said program, now on its second year, covers not only English literacy but also technical skills necessary in call centers.

Villafuerte added that there are more job opportunities for people in Cam Sur as the Embarcadero Business and IT Park recently opened in Legazpi City. This will soon employ 24,000 call center agents from the province.

Since its inception, 5,876 individuals have already benefited from EPP, and most of them have jobs in BPO companies in the province including Sutherland Global Services, an international company that currently employs almost 1,000 agents.

Source:
http://businessmirror.com.ph

Clark Freeport opens more than 3,000 jobs

Tue, 10 Nov 2009 17:45:00 -0800

Fourteen major locators are offering 3,255 jobs at the Clark Freeport in Pampanga; the Clark Development Corporation (CDC) announced. According to the Manila Bulletin, the outsourcing companies intend to fill up the vacancies before Christmas Eve.

The announcement was made following increasing outsourcing activity at Clark; with CDC President and CEO Benigno N. Ricafort stating that operations are expected to continue to grow. CDC calculates that the total investments for outsourcing in the Clark Freeport area has amounted to P68.63 billion; with a reported 3,000 additional jobs to open next year.

�To address the effects of the world financial crisis, the CDC is working hand-in-hand with its locators and investors through the continuous holding of dialogue. Because of these regular consultations with Clark stakeholders we continue to improve our services,� stated Ricafort.

The low tax rate and freeport status of Clark were cited by Ricafort as major advantages Clark has over other outsourcing locations in the Philippines.

Source:

http://mb.com.ph

World Bank Says RP's BPO Boom doesn't Reduce Poverty

Mon, 9 Nov 2009 00:00:00 -0800

Business process outsourcing, considered as one of the largest elements of the services sector, plays a major role in improving the Philippine economy. However, the country fails to boost economic growth by developing the sectors that directly contribute in poverty reduction.

Chief Economist Eric LeBorgne from World Bank-Philippines said that since the country fails to focus more on improving sectors such as industry or agriculture, Filipino workers tend to apply for jobs in the services sector. �Industry was unable to absorb the rapidly growing labor force, including migrants from the rural areas, leaving the service sector as the safety valve. Services account for 65 percent of the gross domestic product and nearly half of employment, but anecdotal evidence suggests that the bulk of the service sector simply masks severe urban underemployment with very low productivity,� the World Bank said.

LeBorgne added that the BPO sector hires individuals who are educated, skilled, and are not considered poor or near-poor. These workers are able to help reduce poverty in the country only through tax collection that enables the government to conduct social-spending programs.

Despite the success of the outsourcing sector, LeBorgne said improving the education system in the country will greatly help the economy. He added that even applicants in BPO companies still need to hone their technical skills and undergo English training. �The education level of these applicants does not make them readily trained for BPO sectors. The government needs to improve the quality of the education system.�

Source:
http://businessmirror.com.ph

RP dubbed �destination of choice� by UK-based firm

Fri, 6 Nov 2009 15:00:00 -0800

Northgate Arsino (NGA) CEO, Mike Ettling commended the Philippines as a voice hub at a CEO Forum at the Tower Club in Makati City. NGA is a business process outsourcing (BPO) company from the UK and is one of the world's five largest HR software service providers.

�From our perspective, the Philippines has been a very successful venue for our business,� Ettling commented. �The Philippines is the business destination of choice for our voice services because of the high quality of education and English fluency, its affinity with the United States market and service-oriented approach.�

Ettling described the nature of NGA's service delivery as requirng more empathy and a more emotive response; as well as being far more complex. Filipinos were described by Ettling as having a �psyche of service� as they are naturally accommodating and have a solid work ethic.

Source:

http://www.businessmirror.com.ph/

RP to Focus more on Higher-value Offshoring Services

Thu, 5 Nov 2009 00:00:00 -0800

Higher-value services such as finance and accounting, architectural and engineering work, animation, software development, game development, as well as medical and legal transcription will be highlighted in trade shows and exhibitions of the Department of Trade and Industry. This initiative aims to attract more businesses during these tough financial times and boost the outsourcing industry.

One of these trade shows is the upcoming 10th e-Services Global Sourcing Conference and Exhibition which will be held at the SMX Convention Center in Pasay City. �The e-Services 2010 is geared toward carving a bigger niche for the country in the global offshoring business given the unique possibilities presented by the recession,� DTI said.

The said event is part of the trade promotion program in an effort to further promote the country as the ideal outsourcing destination in Asia Pacific.

Source:
http://businessmirror.com.ph

RP 29 largest BPOs generate $2 billion

Wed, 4 Nov 2009 00:00:00 -0800

According to Catanduanes Rep. Joseph Santiago House Information and Communications technology, the 29 largest business process outsourcing (BPO) service providers in the Philippines reported combined revenues of P94.4 billion in 2008. The number is a 21% increase from the P78.3 billion reported the previous year.

The 29 major providers on the list were mostly contact center driven; with Customer Care Management Philippines Inc. (P8.1 billion), Convergys Philippines Services Corp. (P8 billion), and eTelecare Global Solutions Inc. (P7.9 billion) posting the highest revenues. The 29 companies are among 400 other outsourcing providers in the Philippine outsourcing industry with annual revenues between a few million pesos to 1 billion, Santiago noted.

�The Philippines has definitely secured its position as a leading player in the global BPO market, judging from the sustained double-digit revenue growth of the local branches of mostly multinational BPO providers,� he said.

Source:
http://www.businessmirror.com.ph

MicroSourcing Hosts Halloween Party

Tue, 3 Nov 2009 00:00:00 -0800

MicroSourcing celebrated Halloween with contests and trick-or-treat for the kids last October 30.

With the theme �Hollywood Halloween�, employees took part in the Best in Area Decoration contest by adorning their respective work areas based on their favorite Hollywood movie or character. Similarly, some dressed up as movie characters and participated in the Best in Costume contest.

Employees' kids also participated in the event. Wearing costumes of their favorite Halloween and Hollywood movie characters, they collected candies and chocolates from different departments.

Winners:

Best in Area Decoration: Creative Services Group (CSG)

Best in Costume:
Female - Ricci Meryl dela Paz (EV)
Male - Stephen Pe�a (CSG)
Kid - Rhys Arianne Natividad (IT Manager Rommel Natividad's daughter)

CEO Philip Kooijman, Nona Kooijman, and Rafael Verheij served as judges in the competitions.

Outsourcing Buyers Choose Cost Savings over IT Security

Thu, 29 Oct 2009 00:00:00 -0800

IT managers are concerned about IT security, but companies still opt for providers that offer low-cost services even if they cannot prove their IT security credentials.

According to the YouGov survey commissioned by the NCC Group, 20% of survey participants said the IT processes that they outsource are less secure compared to those done in-house. On a separate PA International Outsourcing Survey 2009, 31% said they will outsource more IT processes over the next year. These results show that low costs outweigh IT security when it comes to outsourcing.

�The security industry and IT managers are calling for suppliers to prove they are secure, yet companies choosing to outsource business critical systems simply aren't asking the right questions, and are putting business critical functions at risk as a result,� said John Redeyoff, head of 365 Assured, a new security and performance certification program from NCC Group. �Businesses that fail to check their suppliers' credentials, choosing cost and convenience over security, are investing in false economy.�

Source:
http://www.infosecurity-magazine.com

Global outsourcing market up 40%

Wed, 28 Oct 2009 11:00:00 -0800

The global outsourcing market recorded a total contract value (TCV) of $24.7 billion in the 3rd quarter; up 40% from the same quarter of last year. The Global TPI Index, conducted by advisory firm, TPI (Technology Partners International), created the quarterly report based on outsourcing contracts worth at least $25 million.

Asia-Pacific earned 24 outsourcing contracts in the third quarter, totaling $6.4 billion. The Americas earned 47 contracts ($12 billion). Europe, West Asia and Africa earned a total of 68 contracts worth $6.5 billion.

As many as 139 transactions were recorded this quarter with the strong numbers being caused mostly by network outsourcing (Telco-to-Telco) contracts. TPI noted that Telco-to-Telco contracts represented over 30 percent of the total market value. Excluding these contracts, the global outsourcing market showed sluggish growth patterns that have typified the last four quarters.

Megadeals both inside and outside network outsourcing deals supplemented growth; with BPO demand remaining high as the current context proves IT outsourcing more feasible than large finance and accounting, HR, and facilities management outsourcing transactions.

Source:
http://www.thehindubusinessline.com

Outsourcing Experts Seek more Cooperation

Tue, 27 Oct 2009 00:00:00 -0800

In the third Global Outsourcing Summit held in Jiangsu, East China, government leaders and outsourcing executives said more cooperation is necessary towards a new economy.

"Outsourcing is a gateway leading to a new economy," said Dominique de Villepin, former French Prime Minster and current global president of the Asia-Pacific CEO Association. "We should be committed to improving operating efficiencies through strengthening dialogue in order to create a shared, bright future for all of us."

He added that infrastructure and education are two crucial elements in outsourcing, that is why government support will play an important role in the growth of the industry.

Executives from multinational outsourcing companies also shared their insights in a forum held at the said summit.

Source:
http://www.chinadaily.com.cn

McKinley Hill Cyberpark employs 8,000

Mon, 26 Oct 2009 14:00:00 -0800

Within one year of opening, Megaworld's McKinley Hill Cyberpark has expanded operations to 29 corporate locators - employing over 8,000 outsourcing workers. The IT park is Philippines Economic Zone Authority (PEZA) accredited; joining current PEZA-accredited IT outsourcing leader, Eastwood City Cyberpark. Of the 29 locators at McKinley, 19 are reported to have grown into premiere business process outsourcing (BPO) firms.

The park boasts a unique open-plan office layout for multiple modular workspaces. Within three months of operations, McKinley Hill Cyberpark had already registered $10.7 million in outsourcing service exports. Among the major outsourcing players investing in the park are Accenture, Thomson Reuters, 3M and Colgate-Palmolive.

�The initial figures, which we have generated by polling out locators for their employment figures, prove how successful McKinley Hill Cyberpark is. This is proof of its great location and great concept as a vital jobs generator,� quoted Jericho Go, Megaworld FVP of business development.

Source:
http://mb.com.ph/

Engineering, MBA Talents Sought to Meet KPO Demand

Sat, 24 Oct 2009 09:00:00 -0800

Knowledge process outsourcing (KPO) is poised to emerge as the next focus of the outsourcing sector, and the Philippines must have enough engineering and MBA talents that will meet the demand of KPO firms.

According to Larry Jones, CEO of StarTek, Inc., the country has what it takes to be an ideal KPO destination and meet the increasing demand in the industry that involves analytic-intensive tasks such as planning and research.

While the country has a constant supply of young and skilled individuals, Jones said lack of enough workers from the engineering and MBA fields poses a problem. Aside from education issues, �lack of assertiveness and accountability� of potential KPO workers must be addressed.

Source:
http://www.abs-cbnnews.com

Contact Centers may Soon Hire Agents based on Computer Skills

Fri, 23 Oct 2009 00:00:00 -0800

With the increasing number of customers who prefer to use the internet instead of the phone in different transactions, computer literacy of applicants will be a more significant requirement than voice talent when it comes to hiring call center agents. This is what a BPO executive said in the International Outsourcing Summit held last Wednesday.

"There is more use of the Web and customers, especially younger customers, are using the phone less and are increasingly going on the Web. This means that agents may soon be hired based on their technical skill and computer literacy than voice skill," said Larry Jones, CEO of StarTek, Inc.

He added that while the employees will still undergo the same training, being computer-savvy will increase your chance of landing a contact center job.

Source:
http://www.bworldonline.com

NOA Cites RP as Best Offshoring Destination of the Year

Tue, 20 Oct 2009 00:00:00 -0800

The National Outsourcing Association (NOA) in Britain awarded the �Best Offshoring Destination of the Year� title to the Philippines at the 6th Annual National Outsourcing Destination Awards held at the Park Plaza Riverbank Hotel in Central London. This was the second time that the country received the award - the first was in 2007.

�The award highlights the tremendous achievement of the BPO industry which was attained in a very short time. It is a testament to the country's healthy economic environment that attracts foreign business to locate their operations in the country,� said Peter Favila, Secretary of the the Department of Trade and Industry.

The Philippines had outdone Egypt, Malaysia, Russia, and Sri Lanka in terms of advantages and appeal of the country to companies in the UK, level of market penetration, as well as availability of outsourcing areas.

NOA is an independent body in UK that is involved in all aspects of outsourcing.

Source:
http://businessmirror.com.ph

Eagle View crowned Counterstrike champs

Mon, 19 Oct 2009 17:00:00 -0800

MicroSourcing's official Counterstrike tournament concluded on Friday, October 16th with Eagle View project team, Counter-Terro beating MicroSourcing management team, Harry and Friends by a landslide. Both teams had yet to face any real challenge heading into the final with Counter-Terro boasting a record of 53 wins 26 losses and Harry and Friends entering the final with 52 wins and only 12 losses.

Both teams immediately sensed the challenge that Counter-Terro's marksmanship and organization posed to Harry and Friends during practice rounds. It was a challenge that Harry and Friends never looked like overcoming with the first round ending a decisive 22 and 3. Every HaF victory throughout the game was wildly celebrated as if a miracle had been witnessed with some on-lookers seeming to cheer sarcastically.

It looked as though things would change during the second round with Harry and Friends once pulling within 1 win of a deadlock. Counter-Terro, constantly barking orders to each other, caught on, however, and quickly pulled the gap to 4 wins - and never looked back. At one point, Kooijman had joked that the opposition might still win if they were armed with only knives; and, late in the game, with Counter-Terro running around the map in a knifing frenzy, it looked a grim reality.

Counter-Terro thuroughly impressed; putting up a clinic that could only be described as "magical". Prizes await both teams at the trophy presentation at the MS Cafe on Friday, October 30th.

Peso hits new 2009 high

Thu, 15 Oct 2009 13:00:00 -0800

The peso climbed to 46.43 per dollar on Wednesday; it's strongest since it reached 46.45 per dollar on January 7. Wednesday garnered a massive turnover of $1.2 billion � 85% higher than last session's $647.5 million. The Bangko Sentral ng Pilipinas spurred debate over it spending heavily to slow the USD's slide as the peso moved back to 46.45 at the end of the session.

Remittances are predicted to register especially high numbers with offshore workers sending relief money back to the Philippines following typhoons, Pepeng and Ondoy. The Philippine's Business Process Outsourcing industry is among the 8 �sunshine industries� expected to generate a collective $80 to $90 billion worth of revenues for the country to remain on course to recovery following the national calamities.

Study Shows Demand in IT Outsourcing Increases

Wed, 14 Oct 2009 00:00:00 -0800

Majority of service providers said there is an increasing demand for IT outsourcing. This is based on the recent study of EquaTerra entitled �Advisor and Business/IT Service Provider Pulse Survey�. Also, 68 percent predicted that they will see this market trend up to the end of this year.

"The bulk of outsourcing demand is still defensive, aimed at short-term cost-cutting and cost-containment strategies," said Stan Lepeak, managing director of global research.

The survey also found out that with the current global economic crisis, outsourcing has become a cost-cutting measure for more buyers.

Source:
http://www.ihotdesk.com

BPOs now outsourcing facilities management

Tue, 13 Oct 2009 00:00:00 -0800

A study by Jones Lang Lasalle on eight leading global organizations in the business process outsourcing (BPO) industry has revealed BPO companies are, themselves, outsourcing. In the Philippines, this is practiced in areas such as housekeeping, security maintenance, and car fleet management.

According to head of Integrated Facilities Management in Southeast Asia, Marina Krishnan, companies are outsourcing due to the high �cost of a seat� in these areas. In addition to saving on costs for maintaining administration, outsourcing companies are able to avail of expertise and innovations that are not their core competency:

�Our clients in the Philippines � like a global pioneer in outsourced solutions and technology services and a leading financial services company � have outsourced management of services like reception and mail room services, as well as critical facilities like data services, networking and telephone systems that support around-the-clock operations,� commented Krishnan.

Krishnan further added that �the aim of facilities management is to maximize opportunities for a facilities portfolio. This includes engaging in proactive analysis, contingency planning and preventative maintenance programs to reduce facility downtime and mitigate risks.�

Source:
http://mb.com.ph/

Indian IT Firms Focusing on New Geographies, Domestic Market

Mon, 12 Oct 2009 00:00:00 -0800

According to a report by Ernst & Young, IT companies in India are expanding operations to new geographies. Due to the global economic crisis, local tech firms are also focusing more on large projects in the domestic market, making India's outsourcing industry to reach a compound average growth rate of 38 percent.

"The entire Indian IT export industry has been severely impacted due to developments in the U.S. and U.K., and as a result, offshore services providers have started addressing newer markets in Europe, Asia and Latin America that are relatively insulated from recession," said Sudip Saha, senior research analyst of services at Springboard Research, in an email interview.

The increase in demand from banking, telecom, government, and other sectors will also boost growth of the domestic BPO market. Ernst & Young said that the domestic outsourcing market in India registered a growth rate of more than 50 percent over the last five years.

Source:
http://www.zdnetasia.com

KPO Firms in RP to Increase Employee Base

Thu, 8 Oct 2009 00:00:00 -0800

The Philippines sees a rising demand for knowledge process outsourcing services. Sixty percent of KPO firms said that their employee base will increase between 11 and 200 percent this year, and 94 percent of respondents see continuous growth. This is based on the survey conducted last August 6-24 by the Business Processing Association of the Philippines (BPAP).

Of the 131 industry executives who participated in the survey, 43 percent said that it is �less risky� to outsource operations to the Philippines than to India, while 13 percent said that it is �much less risky�.

Respondents were executives from companies that offer services such as back-office KPO, animation, advertising, as well as financial and legal KPO.

Source:
http://businessmirror.com.ph

Gartner Predicts Some BPO Vendors Won't Make it in 2012

Wed, 7 Oct 2009 00:00:00 -0800

A quarter of service providers today may no longer exist come 2012, according to a recent Gartner research.

Robert Brown, VP for research, said that the current economic crisis, loss-making contracts, and failure to adapt to standardized delivery models are factors that will affect service providers in their efforts to keep the business going. "Some will be acquired and some will exit the market completely to be replaced by dynamic new partners delivering BPO as automated, utility services."

Gartner noted that BPO buyers must take caution before venturing into any new outsourcing contract, and should be aware of these signs: unprofitable outsourcing deals, inability to get new projects, loss of major contracts, inability to get enough capital to bid on new BPO deals, exposure to banking sector, and increasing levels of contract cancellation.

Source:
http://wistechnology.com

Global outsourcing revenues 14.4% higher than 2008

Tue, 6 Oct 2009 13:00:00 -0800

Canadian-based ICT research and advisory firm, XMG Global, has calculated that the global offshoring and outsourcing industry will close out the year with a total of US $373 billion; 14.4% higher than the $326 billion registered last year.

The forecast includes inshore and offshore services. In terms of offshore destinations, India, China, and the Philippines were named as top three performers with India and China expecting revenues of up to US $ 48 billion and $ 28 billion respectively.

The Philippines, third on the list, is looking at closing the year with $7.3 billion at 21.7% growth; lower than the expected 24% due to the delay in the development of IT services and captive expansion plans.

The double-digit growth of the outsourcing and offshoring industry amid economic recession is, according to XMG Global, a testament to the change in how it is viewed by the global economy:

�In an industry where double digit growth is not ordinarily seen during a global recession proves that offshoring and outsourcing is part of a natural ongoing economic revolution notwithstanding a financial crisis,� said XMG senior analyst, Vincent Altez.

Source:
http://mb.com.ph/

Communication Best Practices Neglected in Outsourcing

Mon, 5 Oct 2009 00:00:00 -0800

The first of four-part Best Practices Series of Outsourcing Center shows that best practices in communication between buyers and service providers are often overlooked, thus creating problems that affect outsourcing relationships.

Outsourcing buyers who participated in the study noted that communication problems arise from root cause analysis, not being able to understand the buyer's priorities, agreeing (or not) on the importance of �noise� or customer's feedback/complaints, and the provider's failure to listen to the buyer. The study further reveals that communication problems exist even to those with effective outsourcing relationships.

To achieve the goal of communication which is shared understanding and avoid these communication problems, organizations must keep these four best practices in mind:

1. Service providers must take the �noise� into consideration.
2. Create a communication plan for the period after the transition phase.
3. Outsourcing contract should be �crystal clear�.
4. Mutual trust must be established. Buyer and service provider should demonstrate that they truly listen and understand each other.

Source:
http://www.outsourcing-center.com

DBS bank analyzes Philippine peso vs. Indian rupee

Fri, 2 Oct 2009 16:00:00 -0800

Southeast Asia's largest bank, DBS, released its Asian Currency Research report on September 24 which involved a cross-analysis of the currencies of leading outsourcing destinations, the Philippines and India. Studies indicated the Philippine peso had appreciated against the Indian rupee during three of the last four years; a trend that is expected to continue in the remaining year.

While India proved more resilient amid the economic recession, it also suffered record trade deficits and growth in the negative on its overall current account. The Philippines, on the other hand, recorded current-account surpluses which, as DBS currency strategist, Philip Wee points out, is the determining factor in the behavior of the peso in comparison to India when attracting business process outsourcing (BPO) investments.

Wee also noted that India will have to increase external loans to compensate in domestic savings shortages:

�Herein lies one important difference between India and the Philippines. When both countries were achieving high growth rates before the global crisis, India's external debt was rising and catching up with its foreign reserves, while foreign reserves were rising and closing its gap with external debt in the Philippines.�

The Philippines was assessed as having a more manageable budget gap of 2.7 percent of GDP in the second quarter of this year (vs. India's 7.3 percent), and a stronger international liquidity position overall.

Source:
http://www.businessmirror.com.ph/

MicroSourcing extends help to typhoon victims

Thu, 1 Oct 2009 00:00:00 -0800

MicroSourcing, its managers, employees, and clients, all joined the effort to rebuild the lives that were affected by "Ondoy", the tropical storm that ravaged the eastern coast of Luzon on Saturday, September 26th, 2009. The storm was the worst in the Philippines' recorded history with a month's worth of rain (17 inches) falling in less than 12 hours � twice the amount of Hurricane Katrina; which hit the United States in 2005.

Employees were accommodated in the offices as well as at the nearby condo of CEO Philip Kooijman when the storm hit unexpectedly on Saturday afternoon. Flooding across 25 provinces did not sufficiently die down until Tuesday, upon which time work resumed and the Emergency Relief Committee (ERC) was formed.

The ERC, composed of members of the MicroSourcing management team, was tasked with furthering the effort of confirming the status of all affected and missing employees, assessing their needs, and identifying those hit hardest by the storm. Trucks were sent out today to deliver relief goods to employees as well as to help clean out streets that have been filled with mud and wreckage. The ERC has further assisted victims by providing emergency salary loans, assisting them in filing for SSS and Pag-Ibig loans, and offering counseling to those dealing with emotional trauma.

The company has put together a MicroSourcing Relief Fund of which clients, employees, the company, and business partners have all contributed. The fund is expected to grow to at least Php 500,000 and will hopefully increase over time as many lives remain effectively derailed following the national calamity.

MicroSourcing is currently working to establish a temporary shelter for families that have lost their homes.

IT Execs Say Outsourcing Poses Network Security Risk

Wed, 30 Sep 2009 00:00:00 -0800

Many IT executives and network administrators felt that outsourcing technology jobs to offshore locations poses risk on network security. This finding is based on a recent survey commissioned by secure file transfer solutions provider VanDyke Software and conducted by Amplitude Research, an independent mail and online survey company.

Of the 350 respondents, 69% said that outsourcing tech jobs offshore has a negative impact on network security. Nine percent (9%) said it has a positive impact while 22% felt that outsourcing has no impact.

"The survey results indicate there is sentiment, as well as initial data, that suggests outsourcing tech jobs offshore is a matter that needs greater scrutiny in the area of network security," said Jeff Van Dyke, VanDyke Software's president and founder.

Source:
http://www.vandyke.com

RP BPO growth at 22% despite crisis

Fri, 25 Sep 2009 00:00:00 -0800

Although the global economic crisis has slowed down inshore and offshore outsourcing markets, the sector has still managed to post double-digit growth in a time where there is virtually no growth elsewhere to be had.

The Philippines will close the year with likely 21.7% growth, which amounts to US$7.3 billion according to ICT research advisory firm XMG Global. The slackened pace of IT services and delay of expansions of several captive players have been cited as reasons for it not reaching its expected 24% growth XMG projected.

Source:
http://mb.com.ph/

India, China, and RP Named as Top BPO Players

Thu, 24 Sep 2009 00:00:00 -0800

As India and China registered outsourcing revenues worth US$48 billion and US$28 billion respectively, and the Philippines with an estimated US$7.3 billion by the end of 2009, these countries are the top players in the global outsourcing scene. This is according to a report made by XMG Global, a research firm in Canada.

The world's total revenue for this year is poised to reach US$373 billion. Vincent Altez, XMG Global senior analyst, said that India's market share will reach 44.8 percent, while China will account for 25.9 percent. The Philippines is considered as the third best BPO destination, and the country is expected to generate 6.9 percent of the global outsourcing revenue.

"We are seeing new levels of normalcy in which the recession has provided the opportunity to rationalize, and shift work to other offshore destinations other than India,� Altez said.

Source:
http://www.zdnetasia.com

RP primed for post-crisis

Wed, 23 Sep 2009 00:00:00 -0800

The JFC (Joint Foreign Chambers) along with Philippine Government agencies, are in the process of producing a road map that will maximize the growth of key sectors in the Philippines as the global economy shows signs of recovery.

Henry Schumacher, executive vice presdient of the European Chamber of Commerce in the Philippines, stressed the importance of identifying �who is going to do what and when� in areas that the Philippines have a significant advantage over foreign competitors. These areas are agribusiness, creative industries, information technology-business process outsourcing (IT-BPO), tourism and wellness, infrastructure, manufacturing, and logistics, and mining.

The month-long meetings, which began on September 15, will conclude on October 15. In ensuring the key sectors are primed for the post-crisis, Schumacher voiced concerns regarding legislative functions amid the onset of presidential elections; which take place in 8 months.

�We will have a dialogue with government agencies on what can be done administratively. We want to see some cuts in bureaucratic barriers and come up with administrative innovations,� Schumacher said.

Source:
http://www.businessmirror.com.ph/

BPO Industry to Employ a Million Workers in 2010

Tue, 22 Sep 2009 00:00:00 -0800

At least one million Filipino workers will be employed in the country's business process outsourcing (BPO) industry by 2010. This is according to a statement from Malaca�ang which was released last September 20. The Palace is confident that BPO jobs will reach one million next year despite the current global economic slowdown.

The BPO sector is poised to grow further as it offers not only voice-based services but also non-voice work including medical transcription, animation, and software development. With $6.1 billion in revenues generated last year, the sector has become a major factor in helping the economy of the country.

While most BPO companies set up offices in Metro Manila, other provinces such as Cebu, Subic, Baguio, Cagayan de Oro, and Bacolod are emerging as ideal hubs for outsourcing, and the government has launched a training program called PGMA-Training for Work Scholarship Program (PGMA-TSWP) to meet the increasing demand of the growing industry.

Source:
http://www.philstar.com

Iloilo, Guimaras dubbed as next BPO hubs

Fri, 18 Sep 2009 00:00:00 -0800

Due to the low cost of doing business and availability of talent, Iloilo City is being investigated as a new investment hub for BPO (business process outsourcing) and IT, according to BPAP (Business Process Association of the Philippines) top officer Oscare R. Sa�ez.

�Iloilo City has much untapped potential, a large graduate pool, and low industry presence. [It] should have more IT-BPO jobs considering the size of its graduate pool,� he sad.

Iloilo was revealed as third among BPAP's list of Top 10 Next Wave Cities (with Metro Laguna and Metro Cavite occupying first and second) in their presentation at Iloilo-Guimaras Investment Forum.

The presentation stressed the need to capitalize on the graduates in the Visayas region which account for 21% of the nation's graduates but only 10% of the IT-BPO jobs (in contrast to the National Capital Region � 25% of graduates holding 80% of IT-BPO jobs). Iloilo currently only has 4,000 workers involved in IT-BPO; a number that Sa�ez believes will easily grow to 20,000.

Source:
http://business.inquirer.net/

RP's BPO Industry Poised to Reach Growth Target this Year

Thu, 17 Sep 2009 00:00:00 -0800

Ray Anthony Roxas-Chua, Secretary of the Commission of Information and Communication Technology (CICT), believes that the BPO industry in the Philippines will hit the growth target of 20% for 2009 despite the global economic downturn.

�Despite the current global economic crisis, the IT-BPO industry is expected to grow approximately 20 percent for 2009. While the bulk of revenue still comes from voice services, the industry is now focusing on diversifying into the higher value-added non-voice services, such as software development, which will provide higher paying jobs to Filipinos,� he said.

Roxas-Chua added that the country is on track in reaching the goal, and Cebu will play a role in the growth of the BPO sector since it is now seen as an ideal outsourcing destination. �Cebu has respectable international business community because of its friendly environment."

Source:
http://www.philstar.com

RP digital production and animation in high demand

Wed, 16 Sep 2009 00:00:00 -0800

The BPAP (Business Process Association of the Philippines (BPAP) has organized an effort to divert focus on the Philippines' creative sector; namely digital production and animation after assessing its high potential to boost the local BPO industry.

Content development companies in the Philippines now service big foreign clients like Cartoon Network, Nickelodeon, and a large variety of Japanese animation companies. The Philippines currently reels in 15% of the total creative outsourcing market with India earning 37%.

�In the coming years we foresee a growth in automated creative requirements from other countries, especially in the film-making and gaming sectors,� said BPAP Executive Director for Talent Development, Jamea Garcia.

Garcia further encouraged graphic designers and animators across the nation to continue to augment and apply their talents to land contracts from offshore companies looking to outsource creative requirements.

Source:

http://mb.com.ph/

BPO Firms View RP's Negative Publicity as Risk Factor

Tue, 15 Sep 2009 00:00:00 -0800

In a survey conducted by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) with BPO executives as respondents, results show that the negative perception of the country is a significant risk factor when it comes to outsourcing business operations to the Philippines.

Fifty-one percent (51%) of respondents viewed negative publicity as either level one, two or three risk factor, with 20% ranking it as level one.

Another factor that poses a threat to the BPO sector is the tight labor market. Forty-nine percent (49%) ranked the increasing insufficiency of knowledge workers as either a top concern, level two or level three risk factor.

Executives still think that the BPO industry will thrive despite these risk factors. In fact, BPAP Chief Executive Oscar Sa�ez said in a statement that the industry is on its way to reaching 20% growth rate this year.

Source:
http://www.philstar.com

MicroSourcing hosts Counter-Strike tournament

Mon, 14 Sep 2009 00:00:00 -0800

MicroSourcing successfully hosted the initial leg of its first official in-house Counter-Strike tournament. The opening of the tournament coincided with a monthly party with free food and drinks at MicroSourcing's newly opened employee lounge, MS Cafe; courtesy of CEO Philip Kooijman.

The tournament bracket currently features 8 teams, each with 5 members, and is played on a list of random maps that includes Assault and Dust 2.

The teams are divided according to what department or project team members belong in. Philip Kooijman, who himself is a participant in the tournament, assembled his own team that, quite controversially, includes premiere players from multiple projects/departments. Although Kooijman's team (strangely entitled Harry and Friends) are strong favorites to win, the first day of a 3 leg tournament produced awe-inspiring performances by leg winners SG Borges and Monkey Eating Eagles to the Max with results at an astonishing 24 - 6 and 24 - 3.

The final is set to be played on Friday, October 2nd.

KPO Firm Seeks Filipino Nurses to Work as Medical Butlers

Fri, 11 Sep 2009 00:00:00 -0800

Life Stage Communication, a subsidiary of Fly Free for Health Group of Companies in the Philippines, is looking for 100 registered Filipino nurses who will work as medical butlers. This is an opportunity for nursing graduates who are thinking about finding work overseas.

According to Wei Siang Yu, founder and CEO, the company will invest $2-4 million to set up two training facilities and a contact center in the country to address the health needs of patients abroad. �Instead of nurses leaving the Philippines to work in a hospital outside the country, Filipino nurses can now stay here and still tap the global, borderless healthcare and medical tourism market.�

He added that Filipino health professionals are suitable for medical outsourcing because of their English communication skills, good educational background, and hospitality.

Source:
http://www.manilatimes.net

RP on course for �solid recovery�

Thu, 10 Sep 2009 00:00:00 -0800

Citing a business process outsourcing (BPO) industry that �continues to boom� and a tourism industry that is �way up�, President Arroyo reiterated her confidence of the Philippines being well on its way to economic recovery.

�Overall, I am quite bullish about our prospects for solid recovery,� said the President at the closing ceremonies of the Mindanao Island Cluster Conference of the League of Municiplaites of the Philippines at the Clark Free Port Zone in Pampanga.

�Our manufacturing sector that slowed down during the recession is picking up again. New construction continues unabated. If you pass through metro Manila, you will see a lot of construction cranes. Our hotels are full of businessmen from around the world,� the President said.

The Philippines has recorded a 1.5 percent growth during the second quarter which exceeded expectations and further strengthened the government's confidence in attaining its 0.8 to 1.8 percent growth for the year.

Source:
http://mb.com.ph/

Megaworld to Open New BPO Buildings in Fort Bonifacio

Wed, 9 Sep 2009 00:00:00 -0800

Megaworld Corp., the leading BPO office lessor, is set to open five new buildings this year at the McKinley Hill Cyberpark in Fort Bonifacio, the largest IT park of the company.

According to Jericho Go, VP of business development, opening new buildings for outsourcing companies will meet the needs of the ever growing BPO industry in the country. �We are hoping that with these new buildings, which are designed according to the specific requirements of BPO firms, we will be able to help the industry achieve its growth target of at least 23 percent this year.�

Go added that the buildings, which have 75,000 sq. m. of office space, feature 91% floor efficiency ratio to maximize space for BPO operations and an advanced variable refrigerant air conditioning system that will help lower electricity costs.

Source:
http://businessmirror.com.ph

SaaS, the new rage in the BPO sector

Tue, 8 Sep 2009 00:00:00 -0800

It seems more and more big BPO companies are jumping on the SaaS (software as a service) bandwagon. The process allows businesses to pay for the use of software �on demand� rather than purchasing the whole suite. SaaS providers host the software on the web or download it onto the consumer device and disable it upon expiration of the service contract.

The popularity of SaaS is due, more than anything, to the need to cut costs amid the financial crisis; of which the BPO industry has thrived upon. As such, experts are predicting that call centers will increasingly move towards the direction of SaaS, also known as �cloud computing� and �hosted solution�.

Philippine call center operator, Transcom, has already signed a multi-million dollar contract with Australian call center technology vendor, Call Design, that involves the latter delivering a hosted workforce management solution. Accenture has also supported SaaS as a solution for companies eager to expand without investing in too much capital.

Source:
http://mb.com.ph/

Kabataan party reveals �repressive� call center industry

Fri, 4 Sep 2009 00:00:00 -0800

In a privelege speech, Kabataan party-list Rep. Raymond Palatino revealed alarming aspects of the call center industry that he believed inhibited the rights of its workers. Among the issues tackled were the prohibition of its employees from forming unions, the use of punitive attendance policies, and various health issues based on DoLE (Department of Labor and Employment) studies.

�A starting salary of P15,000 on average is indeed attractive, not to mention the signing bonus and incentives for good work performance. But its repressive practice is a clear violation of the Philippine Labor Law,� stated Palatino.

Call center workers are prohibited from forming unions; something Palatino stressed was contradictory to a country that permits freedoms of expression and speech. Foreign employees have already warned they will leave the Philippines should unions be allowed.

He also addressed attendance polices that curtail employees' rights to absences regardless of health problems related to their work. Studies conducted by DoLE and the DoH (Dept. of Health) validate these claims revealing several serious health risks associated with call center work.

Source:
http://mb.com.ph/

RP Economy to Hit Growth Goal through BPO, Remittances

Thu, 3 Sep 2009 00:00:00 -0800

With the increasing flow of revenue from the business process outsourcing industry and remittances from overseas Filipino workers, it is projected that in the second semester, the country's economy will meet or even surpass the 1.5% growth registered in the first half of the year. This indicates that the economy is on its way to reaching the 0.8-1.8% target growth rate for 2009.

According to Deputy Governor Diwa Guinigundo of Bangko Sentral ng Pilipinas (BSP), the BPO industry is projected to grow between 20% and 30% this year, taking advantage of the global economic downturn which pushes companies that are affected by financial crisis to outsource business processes in order to stay afloat.

Another major factor that helps the economy in reaching its growth goal is the OFW remittances. In contrast to the projection of the BSP that the economy will see a flat growth rate in remittances this year, the $8.5 billion registered in the first half is 2.9% higher than last year's figures.

Source:
http://business.inquirer.net

Joint Foreign Chambers fight Bill on labor tenure

Wed, 2 Sep 2009 00:00:00 -0800

The Joint Foreign Chambers (JFC) have organized an effort to prevent the induction of House Bill 6532; which seeks, among other things, to place a cap on the number of casual and contractual employees that a company can hire or engage. The JFC believes that by needlessly trying to further secure the tenure of workers, the bill threatens to significantly diminish foreign investments in the Philippines and cause hundreds of thousands to abruptly lose their jobs.

�We regret to advise that House Bill 6532 is counterproductive to the objective of enhancing employment and employability in the Philippines. If passed into law, the bill will discourage investment and businesses and result in the loss of jobs,� claimed the JFC letter addressed to Speaker Prospero Nograles. The letter was signed by heads of respective chambers in the US, Europe, Korea, Canada, Australia-New Zealand, and the Philippine Association of Multinational companies Regional headquarters Inc.

Source:
http://www.businessmirror.com.ph/

Advisory Firm Identifies Key Challenges in Multisourcing

Tue, 1 Sep 2009 00:00:00 -0800

Gartner, Inc., the leading IT research and advisory firm in the world, has identified three key challenges that companies with outsourcing operations will face as they aim to achieve an efficient sourcing environment. These are:

outsourcing deals are difficult to establish and manage
outsourcing deals often fail to meet expectations since providers promise more than what they can actually deliver
outsourcing deals are not structured in a way that they are able to adapt quickly to changes

�Organizations that excel in sourcing have seamlessly integrated all providers, aligned all parties behind one goal, developed an agile sourcing environment, and achieved business impact through targeted IT spending,� said Frank Ridder, Gartner research director. �Others who lack the right competencies are more likely to experience sourcing inefficiencies caused by misalignment, idle resources, unnecessary processes, overloaded operations, a heavy inventory, or a lack of focus.�

Source:
http://pr-canada.net

Companies Must Focus on Strategic Contract Management

Fri, 28 Aug 2009 00:00:00 -0800

Fifty-five percent (55%) of businesses do not give enough attention on the strategic management of outsourcing contracts. Instead, they focus more on the operational aspect. This is based on a Gartner survey of companies from different industries worldwide.

According to Frank Ridder, Gartner research director, "many organizations struggle to develop an effective and efficient sourcing environment, which is necessary to achieve positive sourcing outcomes." He added that companies fail to manage outsourcing relationships effectively because service providers usually tell buyers that they can deliver more than what they are actually capable of.

To have an efficient and long-lasting outsourcing relationship, Ridder suggested that sourcing activities must be in line with business goals and a flexible sourcing environment must be established to be able to adapt to the market and organization.

Source:
http://www.v3.co.uk

India and RP unite vs. EU, US anti-outsourcing policies

Thu, 27 Aug 2009 00:00:00 -0800

The Business Process Association of the Philippines (BPAP) is scheduled to meet with members of India's National Association of Software and Services Companies (Nasscom) for a unified effort against plans of anti-outsourcing policies in the United States and in Europe.

The US and the European Union have gathered plans to enact protectionist legislations that would deter companies from outsourcing jobs offshore. Nasscom, India's main body representing the Indian software industry, has already been actively lobbying against this and has recently talked to BPAP to gain the Philippines' support.

�The Philippines and India are both BPO superpowers, so we need to have a common stand. We need to be ahead of the curb,� said Jonathan de Luzuriaga, BPAP's executive director.

�Nasscom said we are No. 2 BPO destination in the world so we should help them out. It's just a matter of educating some geographies that outsourcing is now a reality and a global trend,� he further added.

The meeting will involve plans to come up with a common position paper to be sent to the US and Europe. Nasscom and BPAP have agreed to explain the benefits of outsourcing directly to American and European companies should their efforts to stop protectionist legislation fail.

Source:
http://www.businessmirror.com.ph

Executives See Outsourcing as Key to Overcome Crisis

Wed, 26 Aug 2009 00:00:00 -0800

According to the the Capgemini Executive Outsourcing Survey, majority (74%) of North America's business leaders agree that outsourcing can assist a company in staying afloat amidst the current global economic crisis. Conducted by Harris Interactive and commissioned by Capgemini, a leader in providing consulting, technology and outsourcing services, the survey was done to determine how public perception of outsourcing in times of economic downturn affects business leaders in making decisions.

Conducted last April 29 - May 15, the telephone survey further reveals that 79% of the 151 senior executives from Fortune 1000 companies agree that outsourcing has a poor public perception. However, public opinion has little or no effect on the executives' decision-making process when it comes to outsourcing IT, finance and accounting, and HR and procurement tasks.

Source:
http://www.us.capgemini.com

ExcelAsia opens site in Eastwood, largest in the RP

Tue, 25 Aug 2009 00:00:00 -0800

As a result of numerous requests by its top clients to open a facility in Eastwood, ExcelAsia, the industry's top human resources (HR) solutions firm, has just opened a new site in Eastwood; its largest in the Philippines. It joins among 4 other ExcelAsia facilities found in Cebu, Makati, Bacolod and Alabang.

Boasting an 80% success rate, ExcelAsia has helped train over 20,000 people within a wide range of BPO jobs. As well as HR and training, ExcelAsia conducts sourcing, recruitment, and business consultancy.

It also announced the launch of its new website, ExcelAsiaJOBs.com; a new database of employment opportunities for Filipinos looking for work in the Philippine BPO industry.

According to ExcelAsia President, Rita Trillo-Ugarte, the new site in Eastwood will help the firm form new partnerships with BPO service providers in the area:

�The Eastwood site will make it easier for applicants as well as our clients to leverage our various training programs. Aside from the strategic location, our new site will allow us to extend partnerships with BPO service providers with multiple sites,� she said.

Source:
http://mb.com.ph

Many Companies in Europe don't Know Outsourcing Value

Mon, 24 Aug 2009 00:00:00 -0800

A survey among 250 Chief Information Officers (CIOs) and Chief Financial Officers (CFOs) of Europe's largest companies reveals that many businesses have little understanding on the value of outsourcing and its impact on their companies. This was commissioned by Cognizant, a leading global IT and BPO services provider, and developed by Warwick Business School.

Less than half (43%) of CIOs and CFOs who participated in the survey have attempted to measure the return on investment of outsourcing to their companies. Thirty-seven percent (37%) did not try to measure the value of outsourcing, while 20% do not know if they have tried to determine the ROI or not.

According to Sanjiv Gossain, Vice President and Managing Director, UK and Ireland, of Cognizant, "Outsourcing has clear, long- and short-term benefits for businesses, but the research shows that many companies could be missing out by failing to adequately measure outsourcing's impact."

Source:
http://pharmtech.findpharma.com

Report Shows Increase in Number of US Service Buyers

Thu, 20 Aug 2009 00:00:00 -0800

Based on the fifth annual report of the Duke Offshoring Research Network, in collaboration with The Conference Board, the number of US companies with offshore operations increased from 22% in 2005 to more than 50% in 2008. The report also shows that more than half of these service buyers have plans to expand their operations overseas.

According to Ton Heijman, senior advisor at The Conference Board, companies that have successful offshoring practices are able to cut costs, meet target service levels, and have better relations with service providers. The said report further indicates that because of the tough competition for highly skilled domestic workers, small and medium-sized businesses (SMBs) are opting to transfer some of their business tasks overseas and are finding new talent in Brazil, Sri Lanka, Egypt, and Russia.

Source:
http://www.industryweek.com

MicroSourcing to Focus on Outsourcing Solutions for SMBs

Tue, 18 Aug 2009 00:00:00 -0800

As a response to the specific requirements and challenges of small and medium-sized businesses (SMB), MicroSourcing, a premiere Philippines-based outsourcing solutions provider, will concentrate on providing customized outsourcing services to the SMB client segment.

�The outsourcing industry still seems to revolve around large providers providing solutions to large clients. This leaves a wide open marketplace for small to medium-sized solutions designed for small to medium-sized businesses,� says Philip Kooijman, General Manager of MicroSourcing. �SMBs are perfect clients in many ways. The deals are typically smaller in size and therefore much easier and quicker to close. The client is typically highly involved with the day to day operations which makes it a very personal engagement where the client, their offshore staff, and their contacts at MicroSourcing work together very closely. The benefits of offshore outsourcing can furthermore have a huge impact on the success of a small business. It can give them the manpower flexibility they need in their start-up and growth phase and it can provide them access to highly skilled professionals whom they might not be able to afford or attract in their domestic markets. The money saved by outsourcing part of their operations can be used to increase the client's marketing and sales efforts which are crucial as they try to grow their business.�

The success of penetrating this client segment relies on service delivery models specifically designed to meet the needs of SMB clients. Any service provider targeting the SMB market will need to be flexible enough to take on small projects and properly manage them.

MicroSourcing aims to offer various delivery models that are easy to understand and small enough in size that small businesses can give them a try without making any large scale commitments. �For the smallest projects, we will typically use our own staff and simply charge the client per hour, per deliverable or for the project as a whole. The most powerful SMB solution we have is offshore staff leasing whereby we enable them to have one or more handpicked employees work for them exclusively. In this way, a small business can start up a small, low-cost operation in the Philippines. Our website has a solutions finder that will aid companies in finding their perfect service delivery model within a minute. In general, our value proposition for SMBs is really great but the challenge will be to reach these companies and make them understand what outsourcing could mean for them,� Mr. Kooijman added.

CICT, BPAP return from successful overseas mission

Mon, 17 Aug 2009 00:00:00 -0800

The Commission on Information and Communications Technology (CICT), along with the Business Processing Association of the Philippines (BPAP), concluded a week of outsourcing trade missions in the US and Canada. The mission was conducted to further supplement the growth of the Philippine BPO sector amid the economic crisis. According to the BPAP, mergers, disruptions, corporate restructuring, cost containment needs, and business changes needs of overseas companies are the causes for the majority of outsourcing investments in the Philippines.

The Philippines was represented during the trip as a major sponsor at the �World BPO forum 2009� in New Jersey with Globe Telecom, Animation Council of the Philippines (ACPI), Philippine Long Distance Telephone Company (PLDT), and Sencor and Multi-Rational Corporation in attendance. The missions further included trips to New York � with over a hundred companies signifying interest � and Toronto, which attracted over 80 attendees.

Pointwest Technologies and the National ICT Confederation of the Philippines (NICP), SPI-Bpo, Peregrine, DPC DATA, DTSI , Cybercity Teleservices and Affinity Express were among other members included in the Canada-US mission.

Source:
http://www.mb.com.ph/

OD/ER Team Kicks Off Second English Training Program

Fri, 14 Aug 2009 00:00:00 -0800

The Organizational Development / Employee Relations Team started the 2nd English Training Program last Wednesday, August 12. This aims to improve verbal communication skills of employees and enable them to speak English fluently.

The training program will be held every Wednesday at two time slots: 5:45-6:45PM and 7-8PM. Ms. Anna Kathrina Amul is the resource speaker and facilitator of activities for this training program. She has more than three years of experience in conducting English training classes and developing refresher plans for employees in different call centers.

According to Ms. Ma. Regina Lomotan, Organizational Development Manager, new topics will be covered in this month's training program. Participants will learn how to communicate effectively by identifying the barriers to communication, improve grammar skills, and tips for intonation and stress. There will also be informal speeches and simulation of a TV talk show.

European businesses unaware of outsourcing value

Thu, 13 Aug 2009 00:00:00 -0800

Research indicates that businesses are spending billions of pounds on IT outsourcing contracts despite having little knowledge of exactly how much they spend or get for their money; as indicated by research conducted by Warwick Business School, UK.

Among 263 plus companies that were surveyed across Europe with revenues between $500 and $1 billion, only 8% knew how much money and time they actually spend on their IT outsourcing contracts.

Associate professor of Information Systems at Warwick, Julia Kotlarsky, sheds light on the situation: "The report flags a critical gap in managerial knowledge and some businesses clearly have to do better in justifying their significant outsourcing spend to the board."

67% of the CFOs (Chief Financial Officers) expressed that CIOs (Chief Information Officers) do not effectively communicate the pros and cons of outsourcing.

The research further indicates that less than half of the businesses surveyed actually measure the financial benefits or disadvantages of their outsourcing contracts - only 19% of the business that actually have, are confident of the results of their calculations.

Source:
http://www.computerweekly.com

BPO, Tourism to Drive Cebu towards Economic Recovery

Wed, 12 Aug 2009 00:00:00 -0800

Business process outsourcing and tourism are the two industries that will enable Cebu to recover in the current global economic downturn. This is according to economists and business leaders who took part in the recently concluded One Cebu Business Summit held at Mandaue City with surviving the economic meltdown and business recovery as the overall theme.

Cayetano Paderanga, Jr., UP Economics professor and guest at the event, said that both industries show resilience in these tough times as positive, though slower, growth continues to be seen in the province.

For the first semester of this year, Cebu had an increase of almost 9% in the number of foreign tourists who arrived in the province. On the other hand, 50,000 workers are employed in the BPO industry and there are no job losses.

Source:
http://businessmirror.com.ph

Indian outsourcing facing difficult times

Tue, 11 Aug 2009 00:00:00 -0800

After consistently posting double-digit growth in recent years, the Indian BPO industry has hit a rough patch with its leaders further predicting difficult years ahead. India's revenues have dropped sharply amid a global economic recession that, according to Richard Gordon, head of global forecasting at Gartner consultancy, has yet to fully take effect: "The full impact of the global recession on the IT services and telecommunications sectors is still emerging."

Top Indian outsourcing body, Nasscom (National Association of Software and Service Companies), has predicted 4 to 7 percent growth � far below the initially predicted 16% from last year, and the 30% rise it posted regularly in the past.

"Worldwide information technology spending growth is expected to come down further in 2009 and 2010," said Som Mittal, head of Nasscom.

Noshir Kaka, director and global leader for outsourcing and offshoring practice, McKinsey & Company, cites new business models and focusing on new areas such as healthcare as possible solutions for the slump.

Source:
http://www.expressindia.com

Research Firm Advises Hospitals to Outsource IT Tasks

Mon, 10 Aug 2009 00:00:00 -0800

According to Frost & Sullivan, a business research and consulting firm that provides market analysis and reports, hospitals and healthcare agencies will gain financial benefits if they join the IT outsourcing bandwagon. Aside from outsourcing IT tasks such as data management, cloud computing service can be another alternative for the healthcare sector.

"It allows hospitals and healthcare agencies to focus exclusively on their core competencies of providing patient care," said Konstantinos Nikolopoulos, programme manager of Frost & Sullivan. He added that outsourcing IT requirements will be relatively inexpensive and though there is still no widespread acceptance of IT outsourcing, the healthcare sector is slowly changing its mindset about it.

Source:
http://www.qas-experian.com.au

RP targets $5 billion outsourcing market in Japan

Fri, 7 Aug 2009 00:00:00 -0800

The Philippines is gearing up to earn a piece of the $5 billion outsourcing industry in Japan according to the Commission on Information and Communications. This is part of an effort to grow from other locations other than the recession-plagued US, which currently occupies the majority of local BPO operations. Europe, New Zealand, and Australia are also locations that are said to have a high potential for future BPO investments.

�We are continuously looking for new markets and we have identified Japan, Europe, Australia, and New Zealand as possible markets,� said CICT commissioner, Mon Ibrahim. He also noted that the Philippine BPO sector has grown despite the global economic meltdown; with emerging cities Metro Cebu, Laguna, Cavite, Bacolod, and Cagayan de Oro among others establishing a presence in the industry.

�This year, there are 100,000 to 150,000 jobs available and it's just a matter of qualified applicants,� Ibrahim said regarding the problem of a lack of qualified applicants due to a lack of English and computer literacy among graduates in the provinces.

BPO service exports are expected to reach $7.5 billion to $8 billion from only $6.1 billion last year.

Source:
www.businessmirror.com.ph

BPAP to Hold International BPO Conference in October

Thu, 6 Aug 2009 00:00:00 -0800

Around 500 senior BPO executives from major service providers worldwide will head to Manila, Philippines on October 20-21 for the first international conference of the Business Processing Association of the Philippines (BPAP).

According to Jonathan de Luzuriaga, BPAP executive director for industry affairs, the said conference aims to tackle strategies that will keep the BPO industry going despite the global economic crisis.

Aside from voice-based work, there is also an increasing demand for non-voice services such as knowledge processing and back office functions. This evolution in the industry will also be discussed in the conference.

Executives from different major BPO companies and research groups will be the speakers in the upcoming event.

Source:
http://technology.inquirer.net

Outsourcing Professionals Get Good Pay, Compensations

Tue, 4 Aug 2009 00:00:00 -0800

In the Outsourcing Professionals Salary Survey conducted by the International Association of Outsourcing Professionals (IAOP), 95% of the participating companies indicated that their outsourcing professionals in high-level positions get good salaries and their compensations can reach six figures. The said report shows that the annual compensation for employees who hold senior-level positions starts at $51,000.

According to IAOP Chairman Michael Corbett, outsourcing professionals are well compensated since their work involves �setting strategic direction and overseeing some of the most important aspects of their company's operations.�

IAOP's Advocacy & Outreach Committee, in association with the Human Capital Institute, conducted the survey to look at the number of outsourcing professionals, compensation levels, incentive plans, and job opportunities.

The IAOP is the global, standard-setting organization and advocate for the outsourcing profession.

Source:
http://outsourcingprofessional.org

MicroSourcing launches new website

Mon, 3 Aug 2009 00:00:00 -0800

In an effort to better service its clients, MicroSourcing has launched a new website with its beta version having gone live on July 24th, 2009. The site currently features Live Chat, Search, and the Outsourcing Solutions Wizard - originally coined as the "Outsourcerer". The new website is a step towards creating a more interactive environment where MicroSourcing and its clients are given the exact information they need.

The website's previous version, launched in 2008, was centered on introducing clients to outsourcing, providing a wealth of information. As outsourcing and offshore service providers have become increasingly common in the global business arena, the new website has evolved to become more straightforward and practicable for its visitors.

Philip Kooijman, MicroSourcing's CEO and pioneer of the Solutions Wizard, quotes
�I think this new version of our website will help small and medium sized businesses understand the concepts behind offshore outsourcing better and it will hopefully make them understand that it is easier and more accessible to them than they think. The Solutions Finder will furthermore make it easier for our prospective clients to find a service delivery model that fits their requirements. I am also very proud of the fact that the site was completely designed and developed in-house. Even all the pictures were all taken inside our offices using our own in-house photographers. It will hopefully further establish our reputation as a transparent solutions provider.�

The website is also a means of introducing MicroSourcing's newfound Creative Services and Project Services groups along with several new disciplines.

MaxLifestyle.net Celebrates 5th Anniversary

Mon, 3 Aug 2009 00:00:00 -0800

MaxLifestyle.net marked its fifth anniversary with an enjoyable dinner at Sofitel Philippine Plaza in Roxas Blvd., Pasay City last July 31. Attendees of the said event were: Mr. Philip Kooijman (founder and CEO of MicroSourcing), Maricel Salao, Fe Nu�ez, Elvis Garcia, Harry Ignacio, Karen Cayamanda, Carole Monteloyola, Grace Salao, Carla Silvestre, Eileen Gutierrez, Stephen Pe�a, and Vera Quita.

MaxLifestyle.net is a network of lifestyle-related websites providing information about different outdoor sports and forms of recreation. It all started as a small company with three writers who created and managed content of sites. Through the years, MaxLifestyle.net grew into a comprehensive portal of everything you need to know about popular sports and activities such as snowboarding, skiing, rock climbing, and yoga.

RP Boosts English Proficiency of Potential BPO Workers

Fri, 31 Jul 2009 00:00:00 -0800

As a major outsourcing and offshoring destination and with the increasing number of job opportunities in the business process outsourcing (BPO) sector, the Philippines is initiating training programs to further improve the English language skills of potential BPO workers.

The Technical Education and Skills Development Authority (TESDA) and the Business Processing Association of the Philippines (BPAP) created Advanced English Proficiency Program which will help students to speak English more fluently. Other programs include IBM's Service, Science, Management and Engineering (SSME), Oracle Academy, and Cisco Networking Academy. These training programs also aim to equip students with the skills that IT companies need.

Source:
http://technology.inquirer.net

BPO workers prioritizing non-cash incentives

Thu, 30 Jul 2009 00:00:00 -0800

A study conducted by XMG Global indicates that BPO workers are now placing more importance on non-cash incentives such as flexible work hours and paid time off when considering their employment options. The study was conducted on top flight offshoring destinations India, the Philippines, and China in an effort to map the industry's challenges of retaining talent.

The study indicates workers' prioritization of incentives that emphasize the "quality of life" of employees have grown to �an astounding� 18 percent. These interests include flexible work hours, additional paid time off, telecommuting, stress management and family counseling.

XMG's research indicates that not just successful retention, but high performance is achieved by work environments that consider quality of life as opposed to cash rewards for quality output:

�As health and family related issues are on the rise, most particularly due to work-related stress and working the graveyard shifts, the respondents indicated they are willing to devote more to a company that recognizes and respects their personal needs and life circumstances,� said XMG founder and chief analyst, Lauro Vives.

Source:
http://www.gmanews.tv

Pres. Arroyo Urges Lawmakers to Pass DICT Bill

Wed, 29 Jul 2009 00:00:00 -0800

In Pres. Gloria Arroyo's State of the Nation Address (SONA) last Monday, July 27, she urged the Congress to pass the bill regarding the creation of the Department of Information and Communications Technology (DICT), as she highlighted the role of the business process outsourcing (BPO) sector in our economy.

Pres. Arroyo pointed out that the BPO sector is resilient enough to bring wealth to the economy amidst the global economic downturn. "With earnings of US$6 billion and employment of 600,000, the BPO phenomenon speaks eloquently of our competitiveness and productivity," she said.

At present, the Commission on Information and Communications Technology (CICT) is the coordinating body which is responsible for the management and implementation of ICT-related initiatives of the government. However, Oscar Sa�ez, Chief Executive of Business Processing Association of the Philippines (BPAP), said that having a separate department is necessary in implementing national strategic plans in terms of infrastructure and IT education.

Source:
http://technology.inquirer.net

Philippines eyes game development outsourcing

Tue, 28 Jul 2009 00:00:00 -0800

In an effort to claim a larger share of the global game development outsourcing market, the Game Development Association of the Philippines (GDAP) has established a network of foreign developers and clients. Research shows that game outsourcing is set to grow to $1.1 billion this year and $2.5 billion by 2010. Outsourcing will then represent 40% of the total budget for video game creation.

Collision Studios, an award winning US game development firm, is among several companies outsourcing to Filipino service providers. In a forum on trends in the video game industry, Philippe Erwin, Collision CEO, commended the visual arts skills of the Filipinos and cited their English fluency as a major advantage quoting: �It's easier to deal with someone who can also speak the language.�

Darrell Benvenuto, president of game development services provider, Digital Octane Inc., predicts that the Philippines is poised to capitalize on the rapidly growing demand for outsourcing in the industry with major game developers already outsourcing to neighboring countries Korea, India and China.

Source:
http://www.inquirer.net/

MicroSourcing Officially Opens MS Cafe

Mon, 27 Jul 2009 00:00:00 -0800

The MS Cafe was officially opened last Friday, July 24 at around 6PM with a ribbon-cutting ceremony which was led by CEO Philip Kooijman.

Designed to provide more room for employees to relax and enjoy their meals during break time, the MS Cafe is a rest and leisure area which is equipped with a flat screen TV and other gadgets used in recreational activities. Employees can watch movies and play online games on a Friday night.

According to Mr. Kooijman, the management intends to hold a company-wide event at the MS Cafe once a month.

Members of the management team and employees from different projects took part in the said event.

Eastwood Cyberpark retains billing as top IT exporter

Thu, 23 Jul 2009 00:00:00 -0800

The Philippine Economic Zone Authority (Peza) calculates that, having produced $323.17 million in services export revenues in 2008, Eastwood City Cyberpark is still the number one IT employer and export-revenue generator in the country. Among 87 registered IT zones, the Cyberpark ranked far ahead of its competitors with the second and third ranked zones earning $216 milion and $173.3 million respectively.

Upon its development by Megaworld Corp. in late 1999, the Eastwood Cyberpark became the first Business Process Outsourcing (BPO) park in the country.

�We are proud that the Eastwood City Cyberpark contributed much-needed dollar earnings to help steady the Philippine economy in the midst of the global recession,� said Megaworld vice president for business development, Jericho Go.

Eastwood housed a personnel average of 13,774 last year � 10% higher than 2007. It currently has the highest total salaries paid at P5.054 billion which is 15% higher than 2007.

Go attributes Eastwood's success to: its location, the amount of BPO buildings and locators (over 60 ) as well as the lifestyle that only Eastwood City can offer.

Source:
http://www.businessmirror.com.ph

OD Team to Conduct more Training Programs

Wed, 22 Jul 2009 00:00:00 -0800

Following the successful leadership training program and English refresher course held recently, the Organizational Development (OD) team will hold another series of training programs which will be facilitated by Ms. Regina Lomotan, Organizational Development Manager.

The leadership training program will be held every Tuesday and Thursday, 5:30-6:30PM from August 4-27 and will be open to team leaders and managers from all projects. This program aims to develop the management skills of participants and train them to be effective team leaders. Some of the topics that will be covered are core management skills, strategic management skills, and personality/attitude/values formation.

Meanwhile, the English refresher course will take place every Wednesday, 5:45-6:45PM and 7-8PM from August 4-26. This aims to improve verbal communication skills of employees and enable them to speak English fluently. As a BPO solutions provider which deals with Western clients and in accordance to the existing "English only" policy, the company believes that being able to speak English effectively is of utmost importance. Informal speeches, voice coaching, and activities to strengthen verbal communication are areas that will be covered in the program.

While the OD team focuses on leadership training and English proficiency, Ms. Lomotan said that the company has plans of conducting other programs that focus on the social and physical well-being of the employees. Sports-related programs and Bikram Yoga classes are some of the activities that are being considered.

India Still Number One in Outsourcing - AT Kearney

Sun, 12 Jul 2009 00:00:00 -0800

According to the 2009 Global Services Location Index (GSLI) of AT Kearney, a global management consultancy, India is still the world's leading location of choice for companies which consider offshoring their non-core business processes.

With its low costs of labor, large pool of skilled workers, and attractive business environment, India has secured its place at the top of the list.

China and Malaysia claimed the second and third spots, respectively. Other key outsourcing players which made it to the top 10 are Thailand, Indonesia, Egypt, the Philippines, Chile, Jordan, and Vietnam.

Conducted by AT Kearney and established in 2004, the GSLI is an analysis on the top 50 countries which provide outsourcing services.

Source:
http://www.businessweek.com

Proposals Now Accepted for Outsourcing World Summit

Tue, 7 Jul 2009 00:00:00 -0800

The program committee of The Outsourcing World Summit 2010 is now accepting proposals for presentations which will be delivered in the said event.

With the event's theme �Using Outsourcing to Emerge as a Leader in the New Global Economy�, the proposed presentation must showcase new business insights and approaches. It should present solutions to the problems that businesses currently face. It can also be a case study about actual experiences and lessons learned.

Both International Association of Outsourcing Professionals (IAOP) members and non-members can submit their proposals to https://www.outsourcingprofessional.org on or before July 10, 2009.

Presented by IAOP together with FORTUNE® Custom Projects , The Outsourcing World Summit 2010 will be held at the Disney's Yacht & Beach Club Convention Center in Lake Buena Vista, Florida on February 15-17.

RP Outsourcing Still Strong Despite Global Crisis

Mon, 6 Jul 2009 00:00:00 -0800

Industry players who attended the recently concluded State of the BPO Industry Mid-Year Report Conference agreed that the outsourcing industry in the Philippines continues to see growth despite the current global economic downturn. The said conference was held in Makati City and was organized by the Business Processing Association of the Philippines (BPAP).

While the impact of the financial crisis may have slightly affected the growth of the outsourcing industry, the Philippines has secured its place in the world of outsourcing as an ideal BPO destination.

According to Neil Elias, country manager of Logica, an outsourcing firm, the fourth quarter of last year was the best quarter for Philippine outsourcing. There was also an increase in the recruitment rate for skilled Filipino workers - from 4-5% to 9-10%.

Source:
http://www.infinit-o.com

The Outsourcing World Summit 2010 in Florida

Sun, 5 Jul 2009 00:00:00 -0800

With the theme �Using Outsourcing to Emerge as a Leader in the New Global Economy�, The Outsourcing World Summit 2010 will be held at the Disney's Yacht & Beach Club Convention Center in Lake Buena Vista, Florida on February 15-17. This is the 13th edition of The Outsourcing World Summit Conference Series and is presented by the International Association of Outsourcing Professionals (IAOP) together with FORTUNE® Custom Projects.

The said event will provide new business insights and ideas to outsourcing executives across industries and from different parts of the world. In these tough times, it is essential for businesses to be well-positioned to face challenges and be flexible enough to create new services and business models that will suit today's outsourcing demands.

The summit speakers are from within and outside the world of outsourcing. There will also be educational sessions and case studies that will showcase new outsourcing insights and opportunities.

The Outsourcing World Summit is held once a year and is open to IAOP members and non-members.

Source:
http://www.outsourcingprofessional.org

MicroSourcing Takes Part in Job Fairs

Fri, 3 Jul 2009 00:00:00 -0800

To reach more job applicants and increase brand awareness, the Human Resources team of MicroSourcing participated in a series of job fairs held at different malls around Metro Manila.

The HR team first took part in the �Urban Job Fair: Employment Opportunities in Pasig City� at SM Megatrade Hall 3, SM Megamall, Mandaluyong City last April 17-18. They also participated in the 4th Trabaho sa Turismo Fair '09 last May 22-23 at SMX Convention Center, Mall of Asia, Manila. This was spearheaded by the Department of Tourism in cooperation with JobsDB.com. Lastly, the team took part in the job fair held at the Trinoma Activity Center, Quezon City last July 1 and 2.

According to Mr. Dean Carlo Rivera, Employee Relations Officer, participating in job fairs is a great opportunity for the company not only to reach a larger number of applicants but also to increase awareness about what MicroSourcing is and the services it offers.

Ms. Rita Erika Enciso, Recruitment Specialist, said that in the job fairs they took part in, it is harder to find qualified applicants for the IT-related jobs that MicroSourcing offers since most people sought employment in call centers. In any case, Ms. Enciso said that the company will continue to participate in job fairs primarily to establish the company brand and increase awareness.

Software Development Deemed as Next BPO Battleground

Tue, 30 Jun 2009 00:00:00 -0800

Software development is the next big thing in the business process outsourcing (BPO) industry. This is based on a report entitled �The Role of Proprietary Software in BPO� by Samad Masood, IT Services senior analyst for Ovum, a global analyst and consulting company.

According to Masood's report, the role of software development in BPO is further valued as service providers use it for more efficient service delivery and to enable them to use cloud computing technologies.

Masood added that proprietary software development will play a major role in providing BPO services �as it can significantly reduce the cost and/or requirement for significant technology platform transformation when transitioning to a BPO services provider.�

Source:
http://www.abs-cbnnews.com

MicroSourcing to Focus on Outsourcing Services for SMBs

Wed, 20 May 2009 00:00:00 -0800

As a response to the specific requirements and challenges of small and medium-sized businesses, MicroSourcing, a premiere Philippines-based BPO service provider, will concentrate on providing customized outsourcing services to the SMB client segment.

The outsourcing industry is growing rapidly, and the competition is getting more and more intense. This pushes large service providers to target small and mid-market firms. The success of penetrating this client segment is dependent on the contract framework specifically designed to meet the needs of SMB clients. Service providers must be flexible enough to accommodate SMB requirements in terms of offerings, deliverables, and management model.

For more details about MicroSourcing and the services it can provide for small and medium-sized companies, please visit http://www.microsourcing.com.

Growth of India's Outsourcing Market to Slow Down

Tue, 21 Apr 2009 00:00:00 -0800

According to Gartner, a research firm, the offshore outsourcing industry of India will likely to experience slow growth due to the emergence of other ideal outsourcing locations and the looming US policy against shipping work offshore.

As the leading offshore destination, India is on top of the list of most clients who want to outsource their non-core business operations as a cost-cutting approach. However, countries like the Philippines, Brazil, Mexico, and Vietnam are emerging as ideal BPO alternative locations.

Another factor that will pose a challenge to India's outsourcing market is the US policy against outsourcing jobs. The current global economic downturn resulted in an increase in the unemployment rate of the US, and outsourcing in India will not help the nation in its effort to bring the economy back on track.

Source:
http://www.networkworld.com

Report Shows Economic Impact on Outsourcing Recruitment

Thu, 9 Apr 2009 00:00:00 -0800

Based on the research report �RPO in 2009: Driving Cost and Quality Improvements� by Aberdeen Group, a Harte-Hanks Company, those companies which outsource recruitment are reaping significant performance gains in key cost, quality, and efficiency. Substantial gains include cost savings, increased hiring manager satisfaction, decrease in time-to-fill, and improved new hire retention.

According to Jayson Saba, Senior Research Associate and co-author of the report, the findings will enable them to determine if recruitment process outsourcing (RPO) is a valid option for organizations. The report also shows that organizations which seek gains in their recruitment quality and efficiency must consider RPO.

The said report focuses on the policies and processes that organizations implement to manage RPO initiatives, especially during the global economic downturn.

Source:
http://www.marketwatch.com

Prices of BPO Services to Drop 20% in 2010

Wed, 25 Mar 2009 00:00:00 -0800

According to Gartner, a research and advisory company, the outsourcing prices will decline between five and 20 percent in 2010. This is due to the increased competition from vendors, economic downturn, budget constraints, and overall �market consciousness�.

In North America and Europe, prices for data center services would drop between five and 15 percent in 2010, while the prices for help desk services would fall between five and 10 percent.

This may be good news for those companies which intend to outsource some of their business operations, but according to Gartner, low prices of outsourced services will have an impact on the quality of service and business relations of buyers and vendors.

Source:
http://www.itpro.co.uk

BPO Sector Expects Increase in Employment Rate for 2009

Sun, 8 Mar 2009 00:00:00 -0800

In these tough times when outsourcing becomes an ideal solution for companies as a cost-cutting approach and to stay afloat, the country's business process outsourcing (BPO) sector sees an employment growth rate of 200%. This is based on an online survey conducted by the Business Process Association of the Philippines (BPAP).

According to Gigi Virata, BPAP research director, 95 percent of companies which participated in the survey expect employment growth, and half of the respondents expect a 15 percent increase in their workforce requirements. Thirty-three percent of companies with 5000-10000 employees expect an increase of 11-15 percent in employment rate, while companies with 1000-15000 employees as well as small and medium-sized businesses expect the number of jobs to increase by 6-10 percent.

Source:
http://www.abs-cbnnews.com

Philippines to Emerge as Non-voice BPO Destination

Tue, 3 Feb 2009 00:00:00 -0800

As more and more clients look beyond India to outsource non-core business operations, the Philippines is poised to emerge as an ideal destination for non-voice BPO work. This is according to a research done by the Everest Research Institute.

With the success of the voice sector or the call center industry in the Philippines, the country has long been established as an offshoring location for voice-based services. While there is significant growth in the non-voice sector for the past three years, clients are not yet aware that the country can provide other BPO services aside from voice-based work. Based on the research, medical transcription and finance and accounting outsourcing are the two non-voice BPO services currently being offered by service providers in the country.

While the Philippines will not likely replace India as the top offshoring destination, significant growth in the Philippine non-voice sector is expected, as the government focuses on developing the non-voice BPO industry and providers expand their service offerings.

Source:
http://www.businesswire.com

Key Outsourcing Trends to Watch Out For in 2009

Fri, 2 Jan 2009 00:00:00 -0800

The International Association of Outsourcing Professionals (IAOP) predicted the top five outsourcing trends for 2009: nearshoring, outsourcing volatility, professional expertise to be further valued, success of strategic outsourcing companies, and emphasis on social responsibility.

Nearshoring - Companies do not have to outsource business operations in far-off countries. Outsourcing closer to home will be a trend since there will be a large pool of skilled workers as a result of layoffs in different industries.

Outsourcing volatility due to global uncertainty - The outsourcing industry will experience slow growth this year. Companies will work on shorter contracts and with few outsourcing partners.

Pressure on outsourcing professionals - Experts in organizations will be valued to manage the outsourcing process.

Success of strategic companies - Strong and strategic companies can take advantage of the current economic crisis. These businesses will also be increasingly valued in the outsourcing industry.

Social responsibility- Welfare programs and working on socially responsible environments will be outsourcing themes this year.

IAOP, the global, standard-setting organization and advocate for the outsourcing professionals, came up with these key outsourcing trends based on analysis of the global factors that have an impact on the outsourcing industry.

Source:
http://outsourcingprofessional.org