MicroSourcing.com News Feed

Asia-Pacific Sees Slow Outsourcing Activity in First Half of 2010

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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�

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'

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

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

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

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

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

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

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

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

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

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

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

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

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

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%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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�

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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