MicroSourcing.com News Feed

JP Morgan Expects more Foreign Investments to PH this Year

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

JP Morgan predicts a four-percent increase in the country's gross domestic product (GDP). The inflation rate is likewise expected to be at four percent by the end of 2012.

Gilbert Lopez, the Philippines equity strategist of JP Morgan, anticipates a 10 to 12 percent growth rate for this year's revenues, citing banks and conglomerates as sound choices for investments. The Bank of the Philippine Islands, Metrobank, Security Bank, Ayala Corp., and Metro Pacific are likely to become the largest gainers.

Bangko Sentral Governor Amando Tetangco Jr. said capital funds were allotted to government securities and local stocks last year. These led to positive effects to the market's liquidity and funding. Meanwhile, Tetangco noted that sectors should not be comfortable with the country's economic standing and large number of investors, saying it is important to be prepared in case the business environment changes.

He added that regardless of the economic issues in Europe, remittances from overseas Filipino workers may reach $21 billion this year.

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

PH IT-BPO Eyes Top Spot in other Outsourcing Areas

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

About five percent of the Philippine GDP last year was from the IT-BPO industry. Moreover, with the Philippines' recent domination of the voice-based services segment, $11 billion worth of export revenues, 640,000 direct jobs, and around 1.5 million indirect jobs contributed by the IT-BPO sector, BPAP wants the country to maintain and reinforce its position.

Speaking in behalf of DOST-ICTO, Deputy Executive Director Alejandro Melchor wishes to take over the British and Australian markets as well as develop the country to become the frontrunner in the four niches. Furthermore, he says the Philippines' market share for Information Technology Outsourcing, Engineering Services Outsourcing, and Multilingual BPO will be doubled in 2016.

BPAP Chairman Alfredo Ayala is confident that the 2016 target of $25 billion in revenues, 1.3 million direct jobs, and more than three million indirect jobs can be attained with stronger partnership with the government.

Source:
http://manilatimes.net/

PH BPO Revenues Predicted to Reach $25B by 2016

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

Department of Science and Technology-Information & Communication Technology Office (DOST-ICTO) Secretary Mario G. Montejo said there's a great possibility that the Philippines can lead worldwide, while Deputy Executive Director Alejandro P. Melchor III said the BPO industry is resilient against challenges in the economy - whether it is recession or politics. Furthermore, he highlighted that the industry grew 26% in 2008 and 17% in 2009, even during the global economic downturn.

In 2011, the industry was valued at $10.9 billion and employed 640,000.

Business Processing Association of the Philippines (BPAP) Chairman Fred Ayala is optimistic that the BPO industry will reach its goals this year. He added that it is important to stay competitive since there are other destinations that are poised to make a mark in the outsourcing arena.

The Philippines is already the top provider for voice-based processes, but it is believed that tapping other mainstream niches such as healthcare information management, finance and accounting, human resources, and creative process will greatly contribute to the growth of the industry.

Meanwhile, programs such as the ICT Workforce Capability Development Program, Next Wave Cities Program, and the Domestic ICT Industry Development Program were created by DOST-ICTO to address talent issues and further improve the industry.

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

PH BPO Sector Unfazed by Obama's Anti-outsourcing Efforts

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

Martin Crisostomo, BPAP's Spokesperson, stated that business process outsourcing is no longer a mere tool or a solution for businesses to stay afloat, but is now considered as a major factor to stay competitive. Furthermore, he strongly believes that outsourcing is here to stay and is now part of globalization.

In his State of the Union address, Pres. Obama said companies that are providing jobs to US citizens should be rewarded and prioritized, and not those businesses that transfer processes to offshore locations. Benefits such as tax deduction shouldn't be given to firms that outsource work overseas, but should be given to companies that bring jobs back home.

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

India's Nasscom Predicts Slow Activity in Software Exports

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

According to a Nasscom official, there's a possibility that the growth rate prediction for this year will not be surpassed, though a double-digit growth for 2012's fiscal year would still be attainable.

For this year, Nasscom members such as Infosys, Tata Consultancy Services, and Wipro are believed to be having a hard time in explaining the situation and are still in the process of negotiating, when in fact the organization's officials are usually ready with a forecast by this time of the year.

Another Nasscom official added that they are still waiting for the revenue forecasts from companies, saying it does not look clear, and goal revisions may be in order this year.

There may be a slowdown, but the industry can reach the target for 2011-12. It is expected to post a 16-18 percent growth rate or $70 billion. On the other hand, IT research and advisory firm Gartner has reduced its IT spending predictions from 4.6 percent to 3.7 percent.

Meanwhile, Infosys Chief Financial Officer V Blakrishnan assumed that clients are now more cautious when it comes to IT spending. This has led to an indefinite forecast for the sector.

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

Gadget Rush Referral Promo Winners Announced

MicroSourcing's Manpower Acquisition Department named Eve Hashalene Ostonal (MMP) and Junette Abrera (WGP) as the winners of the Gadget Rush Referral Promo.

They got a brand new Samsung Galaxy Tab 10.1 each for submitting qualified referrals for Senior .Net Developer and Senior Mobile Applications Developer positions.

The Gadget Rush Referral Promo was launched to increase MicroSourcing's pool of qualified candidates and help in meeting the hiring requirements of the company and its clients by strategically tapping the employees' network of referrals.

From November 15 to December 23, 2011, employees were encouraged to refer their friends and acquaintances who might be qualified for the following positions: PHP Developers, .NET Developers, C++ Developers, Java Developers, Android App Developers, and iOS App Developers.

There is a corresponding point for every job profile, and the employee with the most number of points at the end of the promo period would get the prize.

UK Investments to Strengthen Outsourcing in SE Asia

As firms look out for the status of Europe's dwindling economy, BusinessMirror anticipates that private investments, particularly outsourced finance and legal services made by UK-based firms to the Philippines, India, and other Southeast Asian countries, will dramatically increase.

Southeast Asia is being eyed by UK firms as a refuge for diversified investments, said an official of the UK Trade and Investment. The official added that it is improbable for UK officials to restrict private companies from outsourcing overseas, like the pending bill in US that discourages companies to move business functions offshore.

Meanwhile, Filipino nurses in the UK were reassured by the official that amidst the crisis, jobs will not be lost. Nearly 600,000 business process outsourcing (BPO) employees in the Philippines are concerned over the result of the anti-outsourcing bill, which is strongly supported by US President Obama.

Indian firm Infosys got 14 European clients, with two being the largest deals in the $500-million range. TCS landed a total of 10 large deals, including four European contracts. HCL, on the other hand, got 18 large contracts valued at $1 billion.

Source:
http://www.bpowatchindia.com/

Barack Obama Urges US firms to Insource

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

The President harked back to the day before recession immobilized the economy, when technology was merely being used by firms and then was gradually adopted, resulting to loss in job opportunities. He said the country will not go back to a weak economy brought about by outsourcing, debt, and fake profits.

Obama shared a proposition wherein firms that are providing jobs will be rewarded and those that are outsourcing offshore will not get benefits like tax deductions.

However, software coding and computer hardware management jobs will likely be outsourced offshore since majority of US' talent pool are not equipped with such skills.

Som Mittal , President of Indian software industry body Nasscom, said the IT industry of India greatly helps in building innovation to the US economy, and he is hopeful that rebuilding US would lead to desired results.

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

PH Foreign Investments could Reach $75B this Year

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

The group presented 471 recommendations to boost the growth of the Philippine economy, including the seven major industries, to Malaca�ang. The recommendations identified agribusiness, business process outsourcing (BPO), creative industries, infrastructure, manufacturing and logistics, mining and tourism, medical travel, and retirement as the �Seven Big Winner Sectors� of the country's economy.

Senior Adviser of the American Chamber of Commerce John Forbes believes that flow of foreign investments to the country will improve this year. In fact, there is already growth in the number of inquiries from other countries.

He added that one of the key factors that clearly help lift investor confidence to the Philippines is the unwavering support shown by the government, specifically the recommendations entitled Arangkada Philippines 2010 submitted by the JFC.

JFC is set to present a 130-page First Anniversary Assessment which will show the progress of the Arangkada 2010 and 471 recommendations at the Grand Ballroom of Marriott Hotel.

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

Talent Supply Remains a Challenge for PH IT-BPO Growth

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

This may even result to a monotonous growth predicted to be between 19 and 21 percent for 2012, whereas the Business Processing Outsourcing Association of the Philippines (BPAP) assessed a 20-percent growth for the previous year.

Vives said since the country's BPO sector is in the process of moving towards providing high-end services, companies nowadays turn to hiring non-Filipino candidates to fill higher-value positions. He added that experienced local IT workers are beginning to see and grab more opportunities in other ASEAN countries like Malaysia, which can lead to an increase in labor costs in the country.

XMG also predicts that due to the high attrition rate among high school and college students, a one-percent decline in the number of educated candidates is possible within the next five years.

Meanwhile, global recession is anticipated to have a minimal effect on the country's call center sector, and the economic woes in Europe may push companies to invest in outsourcing to the Philippines.

BPAP and CHEd have both signed a five-year partnership to improve the country's curricula and provide training programs for teachers. A �BPO 101� class is proposed to be included to the educational system and a standard global competitive test (GCAT) for call center hopefuls is set to be implemented as an added measure.

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

PH BPO Revenues to Match OFW Remittances by 2016

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

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

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

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

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

Global Outsourcing Market Posts 7% TCV Growth

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

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

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

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

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

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

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

Popular Websites Go Black in SOPA Protest

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

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

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

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

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

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

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

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

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

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

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

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

Source:

http://www.bworldonline.com/

Iloilo Making a Mark in the BPO Industry

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

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

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

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

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

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

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

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

ILO: Asian BPO Markets may Ease Impact of US Bill

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

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

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

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

Source:

http://www.gmanetwork.com/

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

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

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

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

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

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

Forrester Predicts IT Market Transitions in 2012-2013

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

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

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

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

Source:

http://www.information-management.com

BPO Jobs Primed for Skilled Graduates

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

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

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

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

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

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

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

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

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

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

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

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

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

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

US Firms Urged to Bring Jobs Back rather than Outsource Offshore

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

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

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

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

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

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

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

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

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

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

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

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

DOLE to Carefully Monitor PH BPO Activities

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

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

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

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

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

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

MicroSourcing Extends Help to Typhoon Sendong Victims

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

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

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

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

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

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

Solon Says US Anti-outsourcing Bill to Affect PH BPO

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

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

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

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

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

Source:

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

BPO Remains Revenue Generator for Cebu

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

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

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

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

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

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

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

Source:

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

IAOP's Outsourcing Predictions for 2012

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

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

The top outsourcing trends for 2012 are as follows:

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

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

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

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

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

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

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

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

PH BPO Posts Highest Number of Job Vacancies this Year

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

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

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

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

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

Source:

http://www.gmanetwork.com/

TESDA to Provide Finishing Courses for Call Center Agents

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

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

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

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

Source:

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

Everest Predicts Global Procurement Outsourcing to Grow 20%

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

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

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

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

Indian BPO Sector Posts Big M&A Deals throughout 2011

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

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

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

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

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

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

MicroSourcing Takes Part in My Dream in a Shoebox Outreach Program

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

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

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

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

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

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

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

Everest Study: Enterprise Crowdsourcing Offers 70% Cost Advantage

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

Other vital results of the study are:

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

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

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

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

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

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

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

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

PH Becoming a Prime Location for Investors

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

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

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

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

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

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

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

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

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

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

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

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

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

Survey Shows Late Client Payments Affect Outsourcing Growth

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

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

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

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

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

Gartner Sees Growth in Affordable Cloud Computing

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

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

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

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

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

PH Expected to Post 4% GDP Growth Rate this Year

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

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

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

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

Everest Says Outsourcing in China will Continue to Grow

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

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

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

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

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

US Anti-outsourcing Bill to Affect Offshore Call Centers

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

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

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

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

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

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

Call Centers' Absenteeism Rate Higher in PH and Asia Pacific

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

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

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

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

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

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

DTI to Develop Industry Roadmaps for Competitiveness, Growth

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

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

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

DTI eyes developing roadmaps for the following:

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

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

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

ETON Properties to Bank on the BPO Sector

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

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

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

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

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

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

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

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

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

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

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

Philippines Beats India in Voice-based Operations

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

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

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

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

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

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

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

ADB Says PH Shouldn't Depend on BPOs

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

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

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

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

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

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

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

Globe Business Reiterates Support to PH BPO

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

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

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

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

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

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

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

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

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

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

MicroSourcing Set to Open New Office at MOA Complex

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

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

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

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

New Wave Cities and Urban Areas Ready for BPO Tenants

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

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

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

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

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

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

BPO to Play a Huge Role in PH Growth Plan

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

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

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

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

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

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

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

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

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

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

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

Expert Shares Key Factors for IT Outsourcing

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

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

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

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

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

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

MicroSourcing Opens New Office in Cebu City

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

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

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

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

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

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

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

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

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

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

BPAP, CHEd Form Partnership to Improve Talent Supply

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

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

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

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

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

India Losing Traction in IT-enabled Services

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

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

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

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

Source:
http://indiaeducationdiary.in/

Report: India to Keep Top Spot in the KPO Market

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

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

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

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

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

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

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

PH Dubbed as Top Outsourcing Destination in Asia

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

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

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

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

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

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

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

PH IT-BPO Sector Remains Strong

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

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

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

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

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

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

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

Everest: Number of Outsourcing Contracts Decreases in Q3 2011

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

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

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

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

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

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

Bill for the Creation of ICT Dept. Approved by Congress

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

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

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

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

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

MicroSourcing Kicks Off Journey towards ISO Certification

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

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

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

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

MicroSourcing Holds Halloween "Spooktacular" Treat or Treat Event

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

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

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

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

Other employees also joined the event wearing costumes of famous movie characters such as Harry Potter, Death Eaters, Edward from Twilight, and Sailor Moon. Of course, the event would not be complete without employees who wore masks and dressed up as witches and vampires.

MicroSourcing to Hold a Recruitment Caravan in Cebu

As MicroSourcing gears up for the opening of its new office in Cebu City, the Manpower Acquisition Department is set to launch a Recruitment Caravan from November 2 - 9 in select establishments throughout the city.

Take note of the following dates and venues of the Recruitment Caravan:

Nov. 2: Jollibee - 12 point IT Park, AsiaTown IT Park, Lahug
Nov. 3: Jollibee - Gorordo Ave. cor. Maxilon Ave.
Nov. 3: Chowking - M.Velez cor. Rama Ave., Guadalupe
Nov. 4: Chowking - Fortune Square Bldg. Mandaue
Nov. 4: McDonald's - EMSU Bldg. Cebu City
Nov. 7: McDonald's - North Reclamation
Nov. 8: McDonald's - Retail Strip Asiatown IT Park, Lahug
Nov. 8: Jollibee - MJ Cuenco Ave.
Nov. 9: Shakey's - The Walk Asiatown IT Park, Lahug
Nov. 9: Chowking - Gaisano Mall, Banilad

MicroSourcing is looking for talented individuals who will work as Computer-Aided Drawing Technicians in our office in Cebu. If you have the following requirements, then join the caravan and get hired immediately:

Proficiency with Game Controllers is a big plus
At least a graduate of any vocational or degree course
Must have good Spatial / 3D Visualization skills
Average English communication skills (you will be directly coordinating with our engineers in the US)
Basic computer skills (Windows XP, Office applications)
Must be keen and attentive to detail
Fresh graduates/Entry level applicants are encouraged to apply
Willingness to work night shifts / in a shifting schedule is a must

There are also great job opportunities in the fields of IT, Human Resources, and Finance. Just bring your comprehensive resum� and the Manpower Acquisition Department will process your application. Apply now!

MicroSourcing's Cebu office is located at 12th Floor TGU Tower, Asiatown IT Park, Lahug, Cebu City.

PH Software Dev't Industry Posts Growth in Revenues, Employment

The Philippines' software development industry had seen an increase in export revenues and employment last year, based on a report by Tholons, a services and investment advisory firm.

In 2010, the industry posted $725 million in export revenues. More than half (57 percent) were from the US market, while one-fourth of this figure came from the United Kingdom. Other markets that contributed to this growth include Canada, Japan, Europe, Australia, Middle East, and countries in the Asia-Pacific.

When it comes to job opportunities, a total of 44,962 were employed in the industry in 2010, up by 27.60 percent compared to 2008 and 2009 with only 35,300 full-time workers. Top services for foreign clients were application maintenance, software testing, and custom application development. In the local scene, sources of revenue were product engineering and system infrastructure support service.

This Tholons study was done to assess the current situation of the local software industry. It was commissioned by the Philippine Software Industry Association (PSIA), with funding from the Commission on Information and Communications Technology (CICT). According to PSIA President Nora Terrado, despite the financial crisis, the software development industry remains committed to reaching the goal of the Philippines to become the outsourcing location of choice.

Source:

http://www.philstar.com

S&P: Top Indian IT Firms Strong Enough to Face Uncertain Demand

At this time of economic instability, India-based Tata Consultancy Services (TCS), Infosys, and Wipro will be able to keep their credit ratings even if there is uncertainty in the demand. This is according to credit rating agency Standard and Poor's (S&P).

S&P's Credit Analyst Abhishek Dangra said these top Indian Information Technology (IT) firms have cost advantage and effective service delivery models. These will help them in times of demand uncertainty.

Based on the S&P report, these IT companies will post faster growth rates than the industry as a whole in the next few years. Next year, it is expected that these firms will post double-digit growth and stay in the lead when it comes to EBITDA margins.

Both TCS and Infosys have BBB+ and Stable credit rating, while Wipro has a BBB and positive rating.

These IT firms rely on the US and European markets. As their economies slow down, companies may lower their IT outsourcing budgets. However, S&P said cancellation of contracts will not have much impact compared to what happened in 2008-2009. The challenge, though, would come in as foreign service providers in India expand their operations in the country. This would lessen the cost advantages of Infosys, Wipro, and TCS.

Source:

http://economictimes.indiatimes.com

ADB to PH: Do not Rely on BPO to Alleviate Poverty

The business process outsourcing (BPO) industry has become one of the key revenue and employment generators for the Philippine economy. However, a recent study from the Asia Development Bank Institute (ADB) states that the government should not rely on the industry in dealing with the poverty situation in the country.

In a study by F. Tech Tschang, Associate Professor of Strategic Management at the Singapore Management University, he looked at the information technology (IT)-enabled services industries in China, India, and the Philippines. He said IT-BPO cannot be considered as a solution to lessen poverty since it does not help those who are poor and less educated. He added that while the impact of the BPO industry to the economy is significant, it is much less on a �per-person basis�.

In the State of the Nation Address of President Benigno Aquino III, it was reported that the BPO industry generated more than 30,000 jobs early this year, and more job opportunities are expected for the rest of 2011. However, Mr. Tschang said this does not help a large part of the population. Only those with better education benefit from the industry. This increases the difference between people who have better education and those who don't.

Meanwhile, Socioeconomic Planning Chief Cayetano Paderanga said the BPO industry does not directly reduce poverty, but since it generates jobs, it still has a huge effect on the situation. He added that the government has direct programs to ensure that �nobody will be left behind�.

Source:

http://www.bworldonline.com

Study Shows Sectors Spending More on IT Outsourcing

According to a study by sourcing advisory firm TPI, international sectors like retail, manufacturing, telecoms and media in Europe, the Middle East, and Africa (Emea) increased spending on IT outsourcing on the three quarters of this year compared to the whole period of 2010.

For this year's third quarter, the manufacturing industry posted �1.5bn in IT outsourcing spending, compared to only �1.4bn in the same period last year. Consequently, for the first three quarters of 2011, the sector spent �5.8bn compared to �5.6bn in all of 2010.

As for the retail sector, it had already invested �1.4bn. This was higher than the figures posted last year.

On the other hand, the financial services industry, the sector that posted minimal spending in 2010, has reduced expenditures on IT outsourcing services, spending only 48% of last year's total. According to TPI, during the third quarter of 2011, Emea financial services sector invested �1.6bn in IT outsourcing, a far cry from the �2.7bn of 2010. Reduced IT spending was also seen in energy, healthcare, and pharmaceutical sectors.

According to Martyn Hart, Chairman at the National Outsourcing Association, IT outsourcing has become a way for sectors like retail to maximize efficiency and entice consumers. A significant increase in outsourcing activity was seen in the retail sector as companies aim to be more competitive through advanced IT solutions and upgraded infrastructure that outsourcing can provide at low risk.

Source:
http://www.computerweekly.com/

TESDA to Provide Training for 65,000 IT-BPO Candidates

More opportunities await 65,000 Filipino job seekers who wish to enter the Information Technology-Business Process Outsourcing (IT-BPO) workforce, thanks to the P500-million budget approved by President Benigno Aquino III.

The funding will be used by the Technical Education and Skills Development Authority (TESDA) and the Business Processing Association of the Philippines (BPAP) for a training program that will enhance the workers' skills needed in the industry.

BPAP Chairman Alfredo Ayala said Filipinos are already known as world-class workers and the country is considered as the top call center destination. The goal is to be number one in IT-BPO services. The training program will help the industry in getting talent with the right skill set.

Non-voice BPO such as legal, health care information management, publishing, animation, game development, and software development will be highlighted in the training program.

Other organizations such as the Animation Council of the Philippines, Call Center Association of the Philippines, Game Development Association of the Philippines, Healthcare Information Management Association of the Philippines, National ICT Confederation of the Philippines, and the Philippine Software Industry Association are selected to collaborate with TESDA and BPAP.

The government sees the training program as a significant factor to realize the IT-BPO industry's Roadmap for 2016, which is to generate 4.5 million jobs and post $25 billion in export revenues.

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

BPAP: 2012 PH BPO Revenue may Reach $14B

By 2012, business process outsourcing (BPO) firms in the country can post revenues reaching US$14 billion.

Fred Ayala, Chairman of industry body Business Processing Association of the Philippines (BPAP), said non-traditional outsourcing services such as engineering, sales and advertising, game development, and other knowledge-process outsourcing services are making the mark in the local outsourcing scene. He added that this year, they are expecting the industry to post about $11 billion in revenues, with a 20-percent growth next year as BPO firms expand service offerings that include new knowledge-intensive processes.

Meanwhile, BPAP Senior Executive Director Gillian Joyce Virata said the country's BPO industry may post P2- P3 billion more if they continue to offer non-voice outsourcing services.

Voice-based outsourcing gets the lion's share of the entire Philippine BPO industry. In fact, the country is now considered the top call center destination. Virata said that while voice-based work will still grow or even double in the next few years, its portion in the industry will decrease since non-voice services are growing faster.

Finding the right talent remains a challenge, which is why BPAP continues to ramp up its initiatives to further improve the skills of available workers in the country.

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

BPO Leaders, Execs Gather at International Outsourcing Summit 2011

The International Outsourcing Summit 2011 was held last October 11-12 at Sofitel Philippine Plaza in Manila. In this event, leaders, executives, and players of the business process outsourcing (BPO) industry convened to tackle global issues, challenges, and opportunities about and related to IT-BPO.

With the theme �Global Market Leaders Addressing Global Market Issues�, sessions covered topics including the state of the Philippine BPO industry and the need to offer more non-voice and complex services while staying competitive when it comes to providing call center work.

The IT-BPO Roadmap 2011-2016 was also presented in the event by the Business Processing Association of the Philippines (BPAP). It was discussed that the country should be the top IT-BPO location of choice, which can be achieved by having a large number of workers who have better education. Government support is likewise necessary, particularly in implementing laws related to data security and welfare of workers. BPAP said they are confident that the industry will meet its accelerated goal of US$25 billion in export revenues by 2016 through a strong partnership between the private sector and the government.

President Benigno Aquino III expressed his gratitude to the summit participants. He had approved the funds for training programs that will help address the challenge of finding the right talent for the BPO industry.

Source:

http://www.sunstar.com.ph

Global BPO Industry Predicted to Reach $280.7B by 2017

In a report by Global Business Analysts Inc. (GIA), it is predicted that the global business process outsourcing (BPO) industry will reach US$280.7 billion by 2017.

Business owners opted to outsource non-core functions to deal with the impact of the global financial crisis. This resulted to high outsourcing activity in destinations such as India and China.

Outsourcing has become a solution for companies, especially those in the US and UK, to resolve problems like lack of talent and the increasing operational expenses. Aside from cost reduction, outsourcing to service providers enables business owners to adapt to constant changes in the economy, make use of new technologies, and benefit from the emergence of newer media.

The market research entitled "Business Process Outsourcing (BPO): A Global Strategic Business Report" also states that finance and accounting outsourcing will likely post the fastest growth rate, to be driven by companies that need to keep costs aligned and stay competitive. Organizations in the fields of financial services, manufacturing, travel, as well as logistics are expected to avail of finance and accounting outsourcing services.

GIA is a leading market research publisher, covering market and technology trends worldwide.

Source:

http://www.sfgate.com

PH BPO Optimistic in Reaching $25B Revenue Goal by 2016

The business process outsourcing (BPO) industry of the Philippines remains confident that it will meet its accelerated revenue goal of $25 billion by 2016.

In the International Outsourcing Summit being held at Sofitel Philippine Plaza, Business Processing Association of the Philippines (BPAP) Chairman Alfredo Ayala said this 25-percent growth rate can be reached through a strong partnership between the government and the private sector.

Based on the BPAP 2016 master plan, the accelerated case scenario for the country's BPO industry is $25 billion. In the best case scenario, the target is $20 billion which translates to a growth rate of only 15 percent.

Ayala said BPAP had met its 2011 goal when it comes to demand generation. The challenge is still meeting that demand by finding enough talent with the right skill set.

Department of Trade and Industry Secretary Gregory Domingo said the industry has been dealing with the talent issue since 2003. With the current situation, meeting the target of 80,000 to 100,000 new employees for the industry may be difficult.

To resolve the problem, the government is working with the academe and related organizations. Aside from the initiatives in the education system, the Congress is also helping the industry through the passage of the Data Protection and Privacy Law, as well as the Republic Act that focuses on the welfare of BPO workers especially those who work at night.

Source:

http://www.mb.com.ph

Forrester: Global IT Spending to Slow Down in 2012

From 11.5 percent in 2011, the growth rate of global IT spending will weaken at 5.5 percent next year. This is due to the current economic downturn in the US and Europe, based on the recent Forrester Research report �Global Tech Market Outlook for 2011 & 2012�.

Slower growth rates are predicted in the US and European countries in 2012. For instance, the US will likely post 6.4 percent, while a 12-percent growth rate is expected in the markets of Eastern Europe, Middle East, Africa, as well as Latin America. Andrew Bartels, Vice President and Principal Analyst of the global IT market research firm, said the global IT market will grow, though at a moderate pace as the financial crisis becomes a cause of worry.

Despite this forecast, India's industry body Nasscom President Som Mittal said there are still no signals of reduced IT budgets from companies. Software exports to the US and Europe account for almost 90 percent of the IT industry's $70 billion revenue.

2011 would post better IT market growth than 2012, thanks to the strong IT demand in the first two quarters of the year before the financial crisis kicked off in the middle of 2011. That resulted in slower growth in the last quarter.

Source:

http://www.deccanherald.com

DOLE, BPO, ICT Form Code of Good Practices

Together with the Department of Labor and Employment Region 3 (DOLE3), the business process outsourcing (BPO) sector and Information Communication Technology (ICT) groups formed an agreement called Voluntary Code of Good Practices. This symbolizes DOLE's effort in preserving camaraderie among firms in Central Luzon. The code involves the TC-BPO/ICT or the Tripartite Council in BPO and ICT and includes voluntary compliance to labor standards and occupational safety and health standards.

Geraldine Panlilio, Assistant Regional Director of DOLE3, said the Voluntary Code of Good Practices covers benchmarking, policy consultations, training programs, and social dialogues to encourage cooperative growth among BPOs and ICTs.

Other objectives of the code are related to health, safety, security, and the environment. It also covers factors such as strengthening DOLE's collaboration and partnership with different government agencies for unified strategies, approaches, and programs in the advancement of BPO-ICTs, among others.

Those who support the code are expected to follow proper monitoring mechanisms through self-regulation, best practice/s recognition, and benchmarking.

Leopoldo De Jesus, DOLE's Regional Director, said this is an initiative that aims to establish and maintain good relationships between labor and management in businesses in the area.

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

Asia-Pacific Region Expected to Turn into Biggest MES Market

The market-expansion services (MES) sector of the Asia-Pacific region can surpass Europe's and be the largest in the world by 2015. This is based on a report from DKSH and Roland Berger Strategy Consultants. From 2010 to 2015, the MES market in the Asia-Pacific region is predicted to grow 11.3 percent annually and will be valued at around US$853 billion. On the other hand, Europe's total MES market is expected to grow 4.3 percent annually, valued at US$759 billion by 2015.

As renowned companies focus more on core competency, productivity, and building their global brand image, and recession is still taking its toll in Europe and the United States, doors have opened for Asia to become a market-expansion services (MES) location. In fact, small and medium-sized firms are looking for partners that can provide leads and access to the global market.

Over 100 executives in Asia, the US, and Europe participated in DKSH and Roland Berger's study, where the rapid emergence of the middle classes was identified as the key driver of Asia-Pacific MES growth. The middle class is comprised of families who are able to make ends meet and earn between US$10 and US$100 per person, daily. Charles Toomey, executive vice president and global business unit head for healthcare, DKSH Hong Kong said, the increasing number of middle-class consumers and the inclination of business owners to outsource certain processes will drive the growth of Asia's market-expansion services sector.

Source:
http://www.chinapost.com.tw/

PH Allocates P500M for Training Program of BPO Workers

The Philippine government will provide P500 million to the Technical Education and Skills Development Authority (TESDA) to help fund a training program for students and teachers in state universities and colleges (SUCs) and meet the demand of the business process outsourcing (BPO) industry in terms of talent.

According to Budget Secretary Florencio B. Abad, the government is planning on tapping several industries for the training. With the P500 million budget, the program can train about 62,000 applicants who can be part of the BPO workforce. About 37,000 will definitely get jobs in the industry. A total of 150 teachers will also be hired to train the applicants. Abad said the training program is designed to better prepare the students at SUCs for the BPO demand.

Abad said they are also looking into providing training projects for other industries such as tourism, agriculture and fisheries, construction and infrastructure development, as well as semiconductors and electronics.

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

PH BPO Industry Recognized at Unctad Event

The rapidly growing business process outsourcing industry (BPO) of the Philippines was recognized at the United Nations Conference on Trade and Development (Unctad) meet held in Geneva, Switzerland. The event covered the effects of non-equity modes of international production such as outsourcing.

Foreign investors look at the country's cost effectiveness, available workforce, strong public-private partnerships, and telecommunications setup , said Cristino Panlilio, Trade Undersecretary for Industry and Investments.

He also said the country's outsourcing industry contributes more than half (60%) of the total services exports. The BPO industry is composed primarily of call center functions, while non-voice services include finance, accounting, and transcription.

The Philippines, now just a spot behind India for BPO services, posted revenues worth $9 billion and employed 530,000 workers. Panlilio said that it is predicted to bring in $11 billion as services export revenues and employ 640,000 people. If issues are resolved, revenues can reach $25 billion and 1.3 million will be employed in the industry by year 2016.

Ambassador Evan P. Garcia, the Philippines' permanent representative to the UN and other International Organizations during the meet in Geneva, said the IT-BPO services from India, the Philippines, and China are responsible for 65% of the global export revenues in 2009.

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

IT-BPO still Main Revenue Generator for PH Services Sector

For the second quarter this year, the Philippines' Information Technology and business process outsourcing (IT-BPO) industry posted revenues reaching US$657 million. The Bangko Sentral ng Pilipinas (BSP) said this is more than 100 percent higher than gains posted in the same quarter last year, amounting to US$324 million.

It is likewise proof that the industry is still a main driver in the services sector of the country. According to Raymond Lacdao, Industry Affairs Executive Director of the Business Processing Association of the Philippines (BPAP), what the IT-BPO industry can bring to the country's services sector is a good indication that the former is taking the right path towards a stronger sector. With more gains posted in the second quarter, Lacdao said the industry will continue to help for economic growth. This means more business and job opportunities for the country.

The IT-BPO industry aims to reach US$25 billion in revenues by 2016. BPAP said it is crucial to have stronger ties between the government and the industry to meet this goal. The annual International Outsourcing Summit which will be held this month will be a venue for BPO leaders and players to talk about the future of the industry.

Source:

http://www.philstar.com

BPO Firm Pledges to Invest More in PH

Convergys Corp. President and CEO Jeffery Fox held a courtesy call for President Benigno Aquino III at the Guggenheim Room of the Omni Berkshires Hotel in New York, where he guaranteed the President his commitment to putting more investments and providing more jobs to the Philippines.

Fox said Convergys is aware of the opportunities investing in the Philippines has to offer and that he is definitely planning on reinforcing his current partnership with the country.

He was also happy to have been given the opportunity to talk and personally thank the President for the government support to the business process outsourcing (BPO) industry.

EXL Services' Executive Vice-president Bill Bloom also met with the President, saying that they chose the country as the location for their clients who have �higher end� requirements. These include processes that are usually provided to medical professionals, lawyers, and accountants.

Source:
http://www.manilatimes.net/

Gartner: Strategic Document Outsourcing in North America to Grow 2.8%

A 2.8 percent growth, from $17.2B (2010) to $17.6B (2011), is expected for North America's strategic document outsourcing (SDO) market, according to global IT research and advisory firm Gartner, Inc.

SDO is a subcategory of business process outsourcing (BPO) that involves publication of customer communications, as well as content creation, multimedia presentation, and incoming document processing. The documents can be produced as hard copies or digitally, or a combination of both.

Gartner's research director Pete Basiliere said the business climate of the rest of 2011 and next year will have an impact to the SDO market. If the financial crisis continues, companies may be forced to stop their in-house operations and decide to outsource, which equates to more revenues for service providers. The downside is companies may have concerns on transitioning. Closing an SDO deal at a time when they couldn't afford to face any problems in the current operations is something that can also have an effect on the SDO sector.

Due to the demand for automated workflows, reasonably-priced long-term SDO contacts, and providers' ability to supply inbound services revenue along other value-added SDO services, the inbound services segment anticipates resilient growth that started with a five-percent increase in 2010 to 2011, and an average of 6.5 percent revenue growth up to 2015.

Source:
http://www.4-traders.com/

Ovum Predicts Global BPO Revenue to Reach $93.4B in 2015

Ovum predicts a $93.4B revenue for the global business process outsourcing (BPO) market in 2015, based on a compound annual growth rate (CAGR) of 5.4 percent and the $71.92B it reached back in 2010.

One of the key factors for the strong developments in global BPO is the active participation of emerging economies such as India and China � countries that are showcasing the benefits of BPO. Ovum also stated that from the end of 2010 to the end of 2015, the BPO market of Greater China will grow at a CAGR of more than 16 percent, while India's market will post a 15.7 percent increase.

Ovum analyst Hansa Iyengar said outsourcing enables companies that try to reduce costs to invest in people who will manage non-core business functions. This process cuts costs and increases efficiency. They now have more time to work on their core processes. Enterprises also learned that aside from back office functions, they can also outsource human resources tasks, engineering, design, as well as research and development. Iyengar added that developed economies will be the ones that can take advantage of these new BPO sectors.

She also noted that vendors need to focus more on pricing contracts as these are important during negotiations. Businesses tend to spread out their investments, and small and medium-sized companies are now open to outsourcing. Service providers need a plan to meet the requirements of clients. There is a need to offer outsourcing solutions that can be customized and are low-cost and very scalable.

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

NASSCOM: Indian Cloud Computing Industry to Reach $16B by 2020

The cloud computing market of India could reach $16 billion by 2020. This is based on a study entitled �Deconstructing the �CLOUD� by software industry body NASSCOM, in association with Deloitte.

It is said that cloud computing technology will likely affect the services and business models of the IT-BPO industry. NASSCOM President Som Mittal said cloud computing could provide new service opportunities, introducing changes to the way IT services was normally offered and done.

As businesses become aware of what cloud computing can do and with an increasing number of people who intend to adopt the cloud, the Indian IT outsourcing industry needs to focus on competency building to benefit from the technology. It also presents opportunities to non-traditional IT companies.

The study also indicated that even if the current cloud service is making use of and is creating new spaces for IT-BPO companies, it also presents opportunities to be combined with the new cloud offerings. For instance, Software as a Service (SaaS), seen as the largest segment, will gain more providers offering solutions that are tailored to meet the needs per industry, geography, and/or business function. SaaS is expected to reach $244 billion by 2020, followed by IaaS which is predicted to post $143 billion for the same period.

Source:
http://www.itpro.in/

DOLE Resolves Job and Skills Mismatch in PH Industries

The Department of Labor and Employment (DOLE) recently released a study that shows incongruity in skills of job seekers and jobs needed in various industries. According to Usec. Danilo Cruz, this is actually a major issue that the government is looking to resolve.

During a discussion on Talking Points, a radio program aired over Radyo ng Bayan and PTV-4, Cruz stated that majority of applicants nowadays do not possess the knowledge, skills, and capabilities that certain industries need. Because of this mismatch, DOLE and the government are looking at ways to teach students when it comes to planning their careers as well as taking courses that meet the demands of industries.

According to an evaluation by DOLE, mining, business process outsourcing (BPO), and agriculture are the industries that offer a lot of job opportunities. To address the problem, DOLE launched �Project Jobs Fit,� back in October 2009 in hopes of figuring out which skills are needed by the industries. A career guide was developed together with the Department of Education. Also, 3rd year and 4th year high school students all over the country participated in career guidance counselling.

Moreover, career guide seminars are held before the school year ends, targeting senior students to educate them on which courses to take so they could get a job faster.

On the other hand, Cruz recommended that students who cannot afford to go to college can approach Technical Education and Skills Development Authority (TESDA) and inquire about their special programs that can prime them with industrial proficiencies which are recognized in some colleges.

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

Ovum: Asia-Pacific BPO Industry to Reach $17B by 2015

The business process outsourcing (BPO) market of the Asia-Pacific region can post revenues reaching $17.4 billion by 2015, with a growth rate of 9.3 percent from $11.1 billion posted last year. BPO industries in India, Greater China, and South Korea will all contribute to the growth of the region. Specifically, China's BPO market will grow by 16.1 percent, while India will post 15.7 percent growth. On the other hand, South Korea's market will grow by 14.6 percent.

Hansa Iyengar, an analyst from Ovum, said developed economies will take advantage of these new BPO areas. She added that the industry is tapping other processes including human resources as well as research and development.

Iyengar likewise said BPO vendors should pay more attention to contract pricing as this is one of the key concerns when closing a deal. �Enterprises are moving away from multi-billion dollar, single vendor deals, and spreading out their investments and risks. Vendors need to be prepared with a game plan to meet this segment's demand for low-priced, highly-flexible, and scalable solutions, which are accompanied by the option to customise offerings and personalised customer service.�

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

PH can be Outsourcing Hub for Mobile Apps

With the growing popularity of mobile communication devices worldwide, the Philippines can definitely cash in and become an outsourcing location for mobile applications development. There is a need, therefore, for local developers to focus on mobile applications.

According to Ramon Pastor of Numlock Solutions in a Power Mac Center mobile app development seminar, even if the country is far behind other mobile-app-developing hubs, local developers have what it takes to meet the demand for mobile apps both locally and in the global scene. He said local developers can take advantage of the demand for mobile applications, turning the Philippines into the location of choice for this service.

Pastor sees opportunities in mobile apps development, knowing that mobile devices are used not only for making calls, sending text messages and emails, etc. He believes that the demand will grow significantly in the next few years. He also said that many companies do not know that local developers can do mobile apps development projects. He's hoping that the country will soon be able to benefit from the growing demand.

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

Bill for the Protection of BPO Workers Proposed

The House Bill 5218 that aims to protect the welfare of BPO employees was recently submitted by former President and current Pampanga 2nd District Congresswoman, Gloria Macapagal-Arroyo, and son, Camarines Sur Rep. Diosdado "Dato" Arroyo.

According to the bill or the proposed Magna Carta for Call Center Workers Act of 2011, since the State is associated to an International Labor Organization (ILO) convention concerning Freedom of Association and Protection of the Right to Organize, the parties involved should recognize �the right of workers, without distinction whatsoever, to establish and -- subject to the rules of the organization concerned,-- to join organizations of their own choosing without previous authorization.�

Also indicated in the bill are essential factors to call center employees' civil liberties such as the right to a safe and healthy working environment that is said to support physical and mental health towards responsibilities at work.

In addition to that, BPO employees should be permitted to take one-hour breaks for every eight working hours, right to rest in a comfortable area within the office premises until it is safe to go home, and the right to privacy. The proposed bill also seeks to address the issues regarding health dangers that come along with working in the BPO industry.

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

IT Revenue in India Grew 19 Percent in 2010-11

The flagship publication of CyberMedia, Dataquest, recently released a study about the state of the country's IT industry, stating that the 19 percent growth is higher than the rate posted in 2009-2010 as it felt the impact of the global economic downturn which made companies halt IT spending plans.

The report said that 66.4 percent of the market is made up of exports, while the outstanding 33.6 percent is composed of domestic entities.

In line with that, the domestic market's revenues increased by 23 percent (Rs.1, 47,152 crore) and the exports grew by 17 percent (Rs.2, 91,144 crore).

Other sectors in the country also developed. IT services exports grew at 21 percent, engineering services exports grew at 22 percent, and business process outsourcing (BPO) exports at seven percent. The total of India's revenues from the previous year is $64 billion, which included earnings from IT software/services and BPO.

The top three IT companies which posted the highest revenues were TCS (Rs.29,801 crore), Cognizant(Rs.25,477 crore) and Wipro (Rs.21,393 crore).

Source:
http://www.inewsone.com/

Global BPO Industry to Grow 6.4% in 2011

In recent times, almost all of the business sectors benefit from the BPO market. Even manufacturing industries worldwide depend on the ability of the services sector to satisfy and meet the demands of customers and organize them as leads by applying proper CRM strategies. This enabled the BPO industry to start a trend in establishing revenue-generating businesses by tapping into unchartered countries, both developed and developing ones.

One of the areas that successfully benefitted from BPO is the Asia-Pacific region. Proof of that is India, a country known in the outsourcing industry. It is still growing and has an expected revenue figure amounting to $110 billion for the period of 2010-11. Prominent market research firms estimate that the industry in the Asia-Pacific region will grow 17.9% while the global BPO market will grow 6.4% in 2011.

Also, the demand for customer support services from the US, UK, and other European countries is rapidly growing. This prompted BPO firms in the Asia-Pacific region (India/Philippines/China) to further improve their skills and bring in more business to their country.

Source:
http://your-story.org/

BPAP: Solid Government Support Needed to Reach US$25B

The Business Processing Association of the Philippines (BPAP) is currently working on reinforcing partnerships with the local government and the education sector for further developments in the IT-BPO industry and to properly allocate skills to job openings.

According to BPAP Industry Affairs Executive Director Raymond Lacdao, talent management, certification, and outreach initiatives are being prioritized in the IT-BPO sector. The US$25 billion revenue target will be a threefold increase over the course of five years.

�Support from the government is a big step towards meeting the industry's US$25-billion expansion by 2016. He also said that if the industry reaches that goal, about 1.3 million will be employed and its revenues will make up 12.5 percent of the gross domestic product.

The mismatch in the skills needed and available talent remains a challenge. Lacdao said there is a need for a robust pool of workers who have leadership skills, English proficiency, as well as skills in strategic thinking, comprehension, and teamwork.

He also pointed out that in the upcoming Third International Outsourcing Summit (IOS) at the Sofitel Philippine Plaza, Manila, talent will be one of the main topics that will be discussed among top level executives and industry experts.

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

Forrester: 20% of UK & US Firms Say No to Outsourcing

Forrester Consulting said approximately 20 percent of Fortune 500 companies included in the survey are still not outsourcing business functions. As stated at Forrsights, these firms are missing out on the advantages of outsourcing such as having a testing centre of excellence, managed testing services or testing-as-a-service (Taas) if they do not see the basic things outsourcing can do for them in the first place.

A report commissioned by Forrester Consulting on behalf of testing major AppLabs stated that 93 percent of the survey participants are looking at Taas, which shows that they are willing to outsource through a service provider to accommodate their business processes.

The report also included that some issues that large firms look into include security breaches, increased regulatory requirements, and pressures to ensure business continuity. This is why they take testing commercially sensitive and business critical software, services, and applications seriously.

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

Economic Concerns Likely to Affect Outsourcing Demand

While it is too early to say what the impact of the current economic situation will be, analysts believe market uncertainties may affect the demand for outsourcing.

Krishna Baidya, Industry Manager for Asia-Pacific ICT practice at business research and consulting firm Frost & Sullivan, said the global outsourcing market may not be that stable and businesses would reevaluate their outsourcing relationships, halt making decisions, and be watchful on the state of the economy.

When it comes to service providers, they will likely go for smaller and shorter outsourcing contracts and deal with inquiries from potential clients on how to get more at a lower price. Baidya also said getting more value will make businesses outsource work to service providers that can give them long-term business and financial benefits.

According to Baidya, innovation and consistency in service offerings are crucial to stay competitive at this time of economic uncertainty. Meanwhile, Principal Analyst Jens Butler of global analyst and consulting firm Ovum said service providers in Asia are becoming less reliant on the Western market and are now tapping markets closer to home. Liu Chu Tzer, Senior Vice President and Managing Director at HiSoft Singapore, said less dependence on the US and UK markets is crucial in establishing a more diversified company portfolio and keeping businesses insulated from the impact of an economic downturn.

Source:

http://www.zdnetasia.com

ITO Providers Aiming for Growth

According to a study done by IT consultancy firm Gartner Inc., growth is once again included in the IT outsourcing (ITO) providers' objectives.

Sixty-two percent said growth is their number one goal and they are planning to achieve that by making use of aggressive marketing plans and investments in cloud, utility, and 'as a service' offerings.

Vice-President and distinguished analyst at Gartner, Rolf Jester, said, "It is clear that providers are optimistic despite considerable uncertainty in the global economies. However, we predict the ITO services market will reach USD 313.2 billion in 2011, a growth of 6.9 percent from 2010, and will reach 4.6 percent compound annual growth rate through 2015."

Survey participants, consisting of 47 ITO providers or 62 percent of the total ITO segment, came from all major geographies and all types of ITO services which include infrastructure, cloud services, and applications.

Half of the outsourcing providers who participated said they would allot 2 to 5 percent of their 2011 earnings to marketing, a figure higher than the usual 1 to 3 percent for IT services providers.

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

PH BPO Urged to Go Beyond Voice Services

Senator Edgardo Angara urged stakeholders of the business process outsourcing (BPO) industry in the country to expand offerings and develop high-value services to stay competitive and protect the industry.

The chair of the Senate committee on Science and Technology said that for IT-BPO to remain a sunrise industry, there is a need to offer more than just voice-based processes. The pool of professionals must be skilled and knowledgeable in knowledge-intensive processes such as legal research, financial analytics, software development, creative content, and medical transcription.

The Philippines is now considered as the top call center destination, beating India in 2010. However, Angara said the aim now should be to be more than just a location of choice for voice-based work. He urged IT-BPO stakeholders to take part in the initiatives in terms of talent availability and development. One of these is the program of the Technical Education and Skills Development Authority (TESDA) and Business Processing Association of the Philippines (BPAP) designed to train more than 2000 scholars to improve their skills and meet the BPO demand.

Source:

http://newsbytes.ph

Survey Shows Mid-sized Firms Get More out of Outsourcing

Medium-sized companies enjoy more gains from IT outsourcing deals than large companies, according to a recent survey from outsourcing analyst firm HfS Research and the London School of Economics.

Out of 277 companies that outsource, more than half (63%) of mid-sized firms said outsourcing had been a successful initiative to cut costs. Compared to 30 percent of large firms, 42 percent of mid-sized companies said their outsourcing contracts were very effective in terms of meeting compliance and regulatory requirements.

Smaller companies get more out of IT outsourcing because they take the �big bang� approach. According to HfS Research founder Phil Fersht, they put several business functions together to make a large outsourcing deal, unlike larger firms that tend to outsource in a step-by-step process. Fersht added that these companies do not usually adopt the way mid-sized firms outsource since they are large enough to tell service providers how they would like transfer business processes.

While service providers tend to target large clients, Fersht said they also need to tap medium-sized businesses so they can establish a balanced client portfolio.

Source:

http://www.cio.com

Indian BPOs See PH as a Threat

Numerous BPO service providers worldwide have been striving hard to be the best in the industry. But India remains as one of the biggest and toughest contenders with an annual growth rate of 16-18 percent. Be that as it may, Indian BPOs still feel threatened by the Philippines when it comes to offshore outsourcing.

Genpact's Vice President Pramod Bhasin said in a statement, �I think it's a serious issue for India. It's about calibre and quality of people coming out of colleges. Earlier, Philippines was mainly into non-voice, but now it has expanded into finance and accounting. We have to review our education and skills training.� He added that BPO firms outside the Philippines welcome the competition.

Indian firms were warned by Spa�nco BPO and Hinduja Global Solutions about the Philippines as a competitor. Global CEO of Hinduja Global Solutions, Partha Desarkar, said the Philippines is seen as a big contender. This is the reason they have established operations in Manila.

Meanwhile, Nasscom President Som Mittal said it is about making the most out of the outsourcing opportunities, although India has a lot of issues such as maintaining safety and security and elaborate taxation policies.

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

Excessive Holidays Affect PH BPO Industry

As the Philippines becomes one of the strongest outsourcing destinations globally, the Business Processing Association of the Philippines (BPAP) pleaded once again to the local government: �We don't like more holidays.�

Raymund Lacdao of BPAP is hoping that the Aquino administration will respond accordingly to their call that too many holidays affect the outsourcing sector's earnings. Since there are 22 holidays every year, he says BPO companies, especially the ones that operate 24/7, are forced to increase budgets for operational and labor costs. �The [declared] holidays in the Philippines has huge impact to our operations. We are serving other countries. It costs us a lot of money.� Another factor he says is the 60-day maternity leave for women and the impending approval of its extension in Congress. This will then increase the impact to the �cost of doing business� in the country.

The outsourcing sector is one of the major industries that helps in keeping the Philippine economy to stay afloat, and the government should look into the internal problems to reinforce the country's weaknesses.

The diminishing talent pool as well as cut-throat competition are also alarming issues that may put off potential clients. Lacdao said it is possible for the sector to employ at least 4.5 million people in the next six years due to the growth of complex export services such as accounting, human resources, and financial services, among others. However, industry growth is somewhat threatened by issues faced by local BPO companies and lack of consideration by the government.

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

Indian BPO Unfazed by US Economic Woes

If the US economic slowdown will have an impact to the business process outsourcing (BPO) industry in India, it will be a positive one, according to industry leaders and analysts at the annual BPO strategy meet of Nasscom, trade body and chamber of commerce of IT-BPO industries of the country.

The $17-billion industry will actually benefit from the situation as it will push Western companies to outsource work to India to reduce costs.

Nasscom President Som Mittal believes the industry will not be affected since it is not directly linked to global challenges. During the 2008 economic crisis, adjustments in pricing models were effectively made and clients have offered more flexibility. Rating agency Crisil said the BPO sector grew by 20 percent and the IT sector expanded by seven percent. Nasscom remains optimistic about the 16-18 percent growth rate this year and in 2012.

The Indian BPO industry gets the lion's share of the global outsourcing market at 37 percent.

Source:

http://www.business-standard.com

PH Gov't, BPAP Team Up to Improve Quality of Talent

The Philippine government is partnering with industry body Business Processing Association of the Philippines (BPAP) to further improve the skills of workers who are entering the business process outsourcing (BPO) workforce and help the industry in reaching its revenue goals.

In a statement by Department of Budget and Management (DBM) Secretary Florencio Abad, a Training-for-Work Scholarship Program will be launched this year and in 2012. A total of 37,000 out of 58,000 scholars who will take part in the program will get jobs - guaranteed. BPAP Chairman Alfredo Ayala said this will need P350 million worth of investments per year. A faculty trainer development program will also be implemented. This will require P150 million in investments.

These initiatives will help in making sure that the country's outsourcing industry will remain a major revenue generator for the economy. "For the employment and the revenue potential of the industry, we see this as a reasonable investment that the government should consider," Mr. Abad said.

By 2016, BPAP expects that the industry will have 3.15 million job opportunities and post revenues reaching $25 billion.

Source:

http://www.bworldonline.com

Asian BPOs Expected to Grow 17.9% in 2011

A study done by industry research firm Gartner shows that the global business process outsourcing (BPO) market is estimated to expand by 6.3 percent and 17.9 percent in the Asia-Pacific region this year.

Gartner Research Vice-President Cathy Tornborn said BPOs still serve as a solution for cost reduction and to keep businesses going.

It is expected that there will be an increase in demand for various services including customer management, human resources, as well as banking and finance in the next few years. Growth is also predicted in vertical markets such as retail, healthcare, transportation, as well as utilities.

"We also see an increase in transaction volumes, especially in payroll, recruiting, accounts payable and customer data analytics and knowledge process outsourcing (KPO) activities," Tornborn said.

Gartner stated that scalability, the infusion of new processes, and technology are crucial elements for the growth of outsourcing in the region. The firm also foresees a 3.8 percent growth in North America's BPO market in 2011. Western Europe, on the other hand, is predicted to grow 8.9 percent in US dollars terms. When it comes to Latin America, Gartner predicts a 14.7 percent growth in US dollar terms this year.

Source:
http://economictimes.indiatimes.com

Gov't Official Calls for Stronger Alliances within Asia

According to a Cabinet official, country members of the Association of Southeast Asian Nations (ASEAN) can be protected from economic turmoil of Europe and the US by reinforcing alliances within the region.

During the Credit Suisse ASEAN+India Conference in Singapore, Finance Secretary Cesar V. Purisima said "What is becoming very clear is that [for] countries like the Philippines and other members of ASEAN, we'll have to look ... at how we can continue to pursue our growth strategy with domestic consumption within our own country, within ASEAN and intra-Asia."

Purisima highlighted that the region is becoming independent from advanced countries and that a part of the dealings are made within Asia, having US as the fifth trading partner - behind China and Japan.

Though India is responsible for only 2.5% of ASEAN trade, Purisima said that having an ASEAN engagement with India will be very crucial. He also said that the Philippines is heading in the right direction to strengthening partnerships with India. The Philippines is currently ranked third in the list of outsourcing destinations. �We're seeing increased engagement of Philippine-based companies with Indian companies and Indian companies competing in the Philippine BPO space.� He added that there is a need to work together so both countries can take part in the direction the global economy is heading.

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

Study Shows Progression of Business Services Worldwide

According to a recent study from PwC US and HfS Research, �The Evolution of Global Business Services: Enhancing the Benefits of Shared Services and Outsourcing�, 97 percent of the 347 respondents specified that they participate in outsourcing relationships, while nine out of ten use shared services.

The report also stated that 44 percent of establishments are planning to lessen reliance on in-house delivery processes by looking for other options like outsourcing (73 percent) and shared services (59 percent).

Dr. Charles Aird, US and Global Leader of PwC's Shared Services and Outsourcing Advisory Practice, said "Organizations need to focus on aligning corporate strategy, improving investment portfolio decisions and reallocating current spending. To do so, they are adopting global business service models."

Some of the crucial factors highlighted in the study are:

*Corporate, global, and enterprise strategies should coincide with each other.

*Strategies should be flexible enough to adapt to the trends and changes in the industry.

*Invest wisely and contemplate whether you need to focus on in-house innovation or innovation from service providers.

*Find a system that works well for urgent situations and problems.

* Create long-term goals.

* Team leaders/Management should be skilled in handling situations.

* Take down important notes about service providers for future references.

*Select leaders who can be role models and live out strategies by being good examples.

Dr. Aird said corporate strategies of organizations are different. Therefore, global business services cannot be considered �one-size-fits-all�. Also, different corporate strategies will lead to different strategies in terms of global business services.

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

Rent for Office Spaces still on the Rise

According to consultancy firm CBRE Philippines, rents for business process outsourcing (BPO) and traditional offices continue to rise, due to strong corporate expansionary demand that typically affects leasing requirements. Rick M. Santos, chairman and chief executive of CBRE Philippines, said in a statement, �We believe this is just the start of the projected up-cycle for the Philippine property market as determined by real demand and strong macroeconomic fundamentals.�

Multinational and local companies' high demand for office space in Makati and Ortigas is believed to support the increase in rental levels.

Office locations in BPO-dominant business districts of Alabang and Quezon City experience a more aggressive increase in office rents. From January to March, rent for office spaces in Makati increased 2.65% or P809 per square meter, whereas in Ortigas, rent increased to P554 per sq. m.

Monthly office rent in Alabang surged to P501 per sq. m. and P516 per sq. m. in Quezon City. Meanwhile, rates in Bonifacio Global City and Mckinley also grew with an average monthly rent of P698 per sq. m.

Mr. Santos added that because of supply pressures, office vacancy rates decreased even thought rents continue to rise. The most noticeable drop in vacancy rates is in the Fort Bonifacio district which is now at 1.48%, while Alabang is at 3.08%, Quezon City at 2.79%, Ortigas at 2.96%, and Makati at 4.6%.

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

3rd International Outsourcing Summit to Highlight Non-voice BPO

Seventy expert speakers and panellists and 300 delegates will come together for the third annual International Outsourcing Summit (IOS) to be held in the Philippines on October 11-12.

According to the event organizer, Business Processing Association of the Philippines (BPAP), it is a great opportunity for all sectors in the IT-BPO industry to evaluate the improvement based on the IT-BPO Road Map 2011-2016, a study that shows estimated annual growth of up to 20% over the next five years, US$25 billion in revenues, as well as 1.3 million direct jobs and 3.2 million indirect jobs.

BPAP's Industry Affairs Executive Director Raymond Lacdao said voice-based BPO significantly contributes to the industry's growth, but non-voice, complex services will drive it to its maximum potential. �IOS 2011 was designed to focus attention of the industry on the potential of non-voice, complex IT-BPO services, and to increase the global visibility of the Philippines' capability for delivering these services,� said Lacdao.

Lacdao added that leadership skills in the industry and reforming of new services will also be discussed in this year's conference.

Philippine President Benigno S. Aquino III will deliver the keynote address, and president and CEO of LiveIt Investments Ltd. and BPAP Chairman Alfredo Ayala will moderate an �Emerging Markets� discussion during the first day of the summit.

Source:
http://www.prweb.com/

PH BPOs Express Concern over Strong Peso

The rise of the peso is worrying the BPO industry, and further appreciation might put off expansion plans of BPO companies.

According to Philippine Chamber of Commerce and Industry (PCCI) Chair Sergio Ortiz-Luis, BPOs need to reformulate business strategies if the exchange rate comes to P40:$1. The exchange rate is currently at P42.50 range. This is six percent higher compared to last year.

Ortiz said in a consultation meeting with the Business Processing Association of the Philippines (BPAP) along with other exporters, �They can still live lower than P42:$1 but a lot of the BPO expansion will be put on hold�. He also said that this will have an impact on the image of BPOs of having a competitive edge during the medium term.

According to a report done by PCCI, BPOs' labor arbitrage will decline if the peso remains strong, which may cause clients to take business elsewhere. PCCI also conducted an industry study which showed that an exchange rate below P37:$1 will take a toll on the BPO industry's competitive advantage.

A 20-percent growth valued at $25 billion is predicted by BPAP's medium-term road map which will begin next year up to 2016.

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

Eastwood City Set to Open New BPO Building

TechnoPlaza Two is the newest addition to Eastwood Cyberpark, the largest IT-BPO hub in the Philippines. The office building has a gross floor area of 34,000 sqm, with seven floors of office space. It will also have a supermarket at the ground floor and various establishments at the second floor. A bridge way will connect TechnoPlaza Two with the Eastwood Mall.

Megaworld FVP for Business Development Jericho Go said, �As the local BPO industry is forecast to generate US$11 billion this year in revenues, up from $9 billion in 2010, the country's first and largest cyberpark continues to help the industry grow faster.� With this expansion of facilities, Megaworld aims to help the local outsourcing industry in reaching its revenue goal of $25 billion by 2016.

The Philippines, currently the 2nd top business process outsourcing destination, is predicted to surpass India's $12.4 billion BPO industry this year. Proof of this is the country's compounded annual growth rate (CAGR) at 27.6% in 2008, compared to India's 11.92%.

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

IT Budgets in Asia-Pacific Expected to Grow in 2012

According to a report done by independent industry analyst and consultancy firm Ovum, 53% of insurers in the Asia-Pacific region are eager to increase internal and external IT budgets for 2011/2012. This is 6% higher than in 2010-2011 period.

Ovum's Insurance Technology Principal Analyst Barry Rabkin said, �Coming out of the post-financial crisis economic situation, the Asia-Pacific region is in a growth mode. Although Asia-Pacific insurers are struggling with having more insurance business operating systems than they want, they are planning to increase IT budgets in 2012.�

The report also showed that 51% of Asia-Pacific insurers use business process outsourcing (BPO), while 56% use information technology outsourcing (ITO) for IT work such as network services, desktop management, IT security, applications development, and application management. Asia-Pacific insurers are also seen to cash in on the web 2.0 market place such as service-orientated architecture (SOA), software-as-a-service (SaaS), and rich Internet applications (RIAs).

Rabkin said outsourcing service providers need to closely watch those who are not confident about outsourcing and those who intend to bring certain processes back in-house. He added that this is a good time for an insurance company in Asia-Pacific, considering that the region is growing and insurers are willing to increase their IT budgets. They are also open to adopting new technologies such as the Cloud. In fact, 43% said they have deployed or are looking into the adoption of this technology.

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

Manpower Acquisition Dept.'s Referral Program Winners Revealed

Company nurse Elizabeth Tamayo and IT Engineer Christian Dela Rosa were the winners of the recently concluded referral program for their successful employee referrals of three Clinical Abstractors and five Onsite Schedulers, respectively. This program was facilitated by the Manpower Acquisition Department.

Each winner got a brand new iPad2 (16gb). Aside from that, Ms. Tamayo received a total of Php15,000 as incentives while Mr. Dela Rosa got Php10,000.

From June 6 to July 9, all employees were encouraged to refer their friends and apply to MicroSourcing. For each successful referral submitted to MicroRefer.com, the employee would get one point, and the top prize would be given to the employee with the most number of hired referrals. Incentives were also given per successful employee referral for the following positions: Clinical Abstractor, Onsite Scheduler, Production Manager, and VP of Operations.

PH Game Development Industry Eyes Faster Growth in 2012

The Game Developers Association of the Philippines (GDAP) is optimistic that the country's game development industry will grow faster in 2012 at a rate of 60-70 percent. This year, the projected growth rate is 55.56 percent or $14 million.

Darwin Tardio, president of GDAP, said they are looking at a faster growth rate despite the recent Standard & Poor's US credit rating downgrade. He added that the global gaming industry managed to perform well even during the recession.

Game development is considered as one of the faster-growing segments of the business process outsourcing (BPO) industry. Earlier this year, the Business Processing Association of the Philippines (BPAP) said they aim to increase the number of game developers this year to 1,600 from 1,200 in 2010.

Tardio said it will not be too difficult for the game development industry to flourish especially since there is a demand for mobile phones and other handheld devices, which are popular platforms for gaming.

Source:

http://www.bworldonline.com

MicroSourcing Launches In-house Pharmacy

MicroSourcing launched a full-service pharmacy located at the company headquarters in Eastwood City last August 5. This is in partnership with UniLab, the Philippines' leading pharmaceutical company.

With the in-house pharmacy, MicroSourcing employees can buy medicines and other health-related items at reduced prices.

According to Ramie Rosima, Human Capital Strategy and Delivery Group (HCSDG) Manager, payments will be done through salary deduction. Each employee can purchase health-related items worth up to Php2500 each month, which will then be deducted from their salaries.

Several activities were held throughout the launch of the pharmacy which was facilitated by HCSDG. Many employees received free medical consultation and skin analysis. Free lunch was also served and UniLab gift packs were given to winners and participants of the games.

Pres. Aquino: Gov't Committed to Supporting BPO Industry

President Benigno Aquino III said the government will help the Philippine business process outsourcing (BPO) industry for its further growth and to enable it to generate more jobs to Filipinos.

�So you can expect from government, in cooperation with CHED (Commission on Higher Education) and DepEd (Department of Education) and the basic sector that we are gearing all our education towards training the people for the jobs available when they do graduate instead of chasing after jobs that are currently and will no longer be existent by the time they graduate,� he said during the 5th International Contact Center Conference and Expo (ICCCE) 2011 in Pasay City. With government support, the President aims to provide graduates better opportunities to get the type of work that they want.

According to the Contact Center of the Philippines (CCAP), the country's voice-based sector posted $2.6 billion in revenues in 2006 and about $6.2 billion last year. It is also projected that the call center sector of the country will be able to increase investments and generate more jobs in the next few years.

Source:

http://www.zamboangatoday.ph

Everest: Captives still Expanding and Evolving

Captives continue to expand and evolve in the outsourcing and offshoring industry, according to a study by global services advisory firm Everest Group. This is in contrast to the perception that captives no longer thrive.

The captive model for offshoring involves more sophisticated processes and requires highly skilled manpower. Based on the Everest study "Captives are Staying Alive", many large-scale captive operations have grown and expanded their service offerings. In 2010, 10 captive were set up while 13 expanded.

Everest Group's Managing Director Eric Simonson said there are two reasons captives will be an important part of offshoring. "First, it is a large part of the market, representing about 25 percent of delivery within India. Second, the model is different from third-party models and that is not widely understood. A captive can not only deliver the typical services of a [third-party] service provider, but also many other services which are just part of the normal business."

Everest Group said IT and business processes of captives were worth about $8 billion in 2006. In 2009, a 10 percent compound annual growth rate was seen in captive center activities.

Source:

http://news.idg.no

PH Call Center Industry to Flourish in the next 5 Years

The Philippines is currently the top destination for voice-based work, and in the next five years, it is predicted that the call center industry of the country will see a 15 percent annual growth.

In five years, the industry is predicted to employ more than 800,000 and post revenues amounting to $14.7 billion. With this growth, Contact Center Association of the Philippines (CCAP) President Benedict Hernandez said the country will remain as the top call center destination, as long as the industry keeps offering high quality services.

To see continuous growth, the CCAP is focusing on meeting the demand for qualified manpower and improving employee welfare and the business environment. These initiatives will be done through the public-private partnership (PPP). CCAP is also working with the Commission on Higher Education and the Department of Education for the improvement of the curriculum and implementation of training programs for workers.

CCAP is optimistic about the industry, but finding qualified talent remains a challenge. Other concerns include the strong peso which is hurting the industry, and employee retention.

Source:

http://www.malaya.com.ph

German Firms not Aware of PH as BPO Destination

Lack of brand awareness and the fact that German firms do not know where the Philippines is are reasons these companies do not invest in the country, according to the German Chamber of Commerce.

India, not the Philippines, is the top destination that German firms consider as far as business process outsourcing (BPO) is concerned, said Nadine Fund, Business Development Manager of the German-Philippine Chamber of Commerce and Industry Inc. (GPCCI).

The Business Processing Association of the Philippines (BPAP) said there is a need to tap the UK market, which is estimated at $40 billion, especially since all other BPO destinations are targeting US, the largest market of the Philippine BPO industry.

The GPCCI and the Department of Industry are taking initiatives to establish the brand of the country as a BPO destination in Europe. For instance, the DTI is taking part in corporate events to introduce the Philippines as a destination for business investment.

Source:

http://www.gmanews.tv

TPI: Outsourcing Spending Increases, Contract Values Decrease

Outsourcing consultancy firm TPI said compared to 2010, businesses spent more on outsourcing in the second quarter this year. However, the average value of IT outsourcing contracts decreased for the same period.

Based on the TPI Index, while the total value of deals posted a 13 percent increase or �7.6 billion, the value of the global outsourcing industry decreased by 18 percent as the number of mega deals declined. In other words, there is an increase in IT and BPO spending, but the contracts have lower value.

�We have actually seen the pace of UK public sector activity increase in 2011, but contract values have declined,� said Duncan Aitchison, a partner at TPI. Increase in demand for outsourcing is seen in the UK, particularly in the Netherlands and France.

Source:

http://www.itpro.co.uk

PH Warned against too much Reliance on BPO

While the business process outsourcing industry is greatly contributing to the Philippine economy, the United Nations Conference on Trade and Development (Unctad) said the country should not depend too much on BPO since it is an example of non-equity modes (NEMs) which are attained and lost easily.

According to University of Asia and the Pacific Economics Prof. Jovi C. Dacanay who presented the World Investment Report 2011, non-equity modes are types of foreign direct investments (FDIs) and contractual deals that do not have high fixed assets. Aside from BPO, other examples of NEMs are contract manufacturing, franchising, and contract farming. Unctad said governments need to establish regulations on NEMs to make the most out of them and mitigate the risks.

Unctad said there are four areas to focus on to maximize the advantages that developing economies can get out of NEMs. These are: creation of policies embedded in development strategies, government support to initiatives in establishing domestic productive capacity, a strong legal and institutional framework, and creation of policies directed to the negative impact and risks brought about by NEMs.

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

Forrester: Traditional Outsourcing �on its Deathbed�

Traditional outsourcing will be a thing of the past as the shift to innovation and emergence of technologies such as the Cloud take over. This is according to independent technology and market research firm Forrester Research.

�IT outsourcing as traditionally understood is on its deathbed,� said Ellen Daley, vice-president and practice leader at Forrester Research.

A Forrester study, involving 568 companies, reveals that expectations on costs savings are not met and more and more clients are not satisfied with the quality of work. Without cost reduction which is a primary reason companies outsource, clients are considering better technologies such as the Cloud.

Daley said there is a significant decrease in client spending on aspects that are usually present in corporate IT outsourcing budgets such as enterprise resource planning and human capital management software. On the other hand, the study reveals an increase in client spending when it comes to aspects such as business intelligence.

Source:
http://www.livemint.com

PNoy: More Job Opportunities Available in the Philippines

In President Benigno Aquino III's second State of the Nation Address (SONA) delivered yesterday, he said that there are more jobs available in the country for Filipino workers. He added that the workforce is slowly embracing the idea of working in the country and not in a foreign land.

There may be more job opportunities and thousands of graduates every year, but PNoy stated that the jobs mismatch remains a challenge that local industries are facing. He asked the government units and agencies concerned to address this problem. The Department of Labor and Employment (DOLE), Commission on Higher Education (CHED), the Technical Education and Skills Development Authority, and the Department of Education (DepEd) are called on to analyze the present curriculum and guide students in choosing courses that will help them land jobs in industries that are in need of workers.

The business process outsourcing (BPO) industry has been working with the academe and government agencies to help improve the skills of students, especially when it comes to English proficiency. According to Julito Vitriolo, CHED executive director, they are taking steps to improve the communication skills of students to make them globally competitive and meet the demands of the BPO sector and other industries.

Source:
http://www.gmanews.tv

Social Media Seen to Play Crucial Role in Customer Care Operations

Survey findings from outsourcing services provider Capgemini show that social media is a critical part of customer care operations of many businesses from various industries.

Out of 302 senior executives from Fortune 1000 companies, more than half (52 percent) said they are using social media as part of their customer care operations. Fifty-seven percent said they are keeping track of social media activities, while 36 percent are monitoring the value of using social media in their customer care strategies.

More than half of survey participants see social media as a tool to gain customer feedback on their products and services, generate leads, and measure customer satisfaction. While social media is perceived as an integral part of customer care operations, 73 percent of senior executives are not aware of the number of employees who are monitoring online conversations of customers. Forty-one percent said their companies are keeping track of customer's social media activities. However, they are only answering questions and responding to complaints of customers, and are therefore not getting the most out of social media.

�The use of social media as part of a strategic customer operations strategy is still emerging, but it presents companies with a clear opportunity to engage with current customers, find new ones and build brand awareness in an increasingly competitive landscape,� said David Poole, Vice President and Head of Americas Business Process Outsourcing, Capgemini.

Source:
http://www.businesswire.com

New Site Version Launched

MicroSourcing recently launched the new version of its site, www.MicroSourcing.com. This was done to provide visitors and clients a more in-depth look of what the company can offer.

One major change in this version is the addition of new pages focusing on the offshoring and outsourcing solutions MicroSourcing can provide to various business segments: start-ups and small companies, medium-sized businesses, and large corporations. This aims to inform site visitors that outsourcing is an effective solution for businesses of any size, and MicroSourcing has the capability to meet their requirements. Moreover, the new site version now has sections covering the delivery centers which were recently opened at Bonifacio Global City in Taguig.

The new version likewise has an updated and more comprehensive Outsourcing Services Finder. This feature is designed to help foreign companies in quickly finding the outsourcing delivery model that suits their requirements. Site visitors may also want to take the MicroSourcing Virtual Tour to have a good look at the company's facilities and offices.

PH Takes Third Spot in Global Outsourcing

According to a report by Canadian-based ICT research and advisory body XMG Global, India will capture 42.5% (US$61.5 billion), followed by China with 31.5% (US$45.7 billion), and the Philippines securing the third spot with 7.4% (US$10.7 billion) for the US$464 billion global outsourcing revenue.

XMG Global Chief Analyst Lauro Vives said, �The US economy, which remains to be a large market for offshoring, is still on the road to recovery with a forecasted 2011 GDP growth rate of 2.6%, slowing down from last year's 2.9%.�

Providers from India and the Philippines that cater to the US market are greatly affected by the devaluation of the US dollar, where providers from China are less affected because their clients are mostly based in East Asia.

Seventy-five percent of China's outsourcing earnings come from the domestic market, and are used as leverage in competing globally. This is probably the reason Indian providers such as Tata, Infosys, Wipro and Satyam, which are known to avoid the said market, seem to be heading towards the trend to expand the market. The Philippines, on the other hand, saw an opportunity in the non-English speaking market.

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

Global Outsourcing Growth Weakens

According to the 2011 review of the global outsourcing sector done by Canadian-based ICT research and advisory committee XMG Global, the global outsourcing industry had a higher growth rate in 2010 compared to 2011. It brought in $374 billion in 2009, grew 13.9 percent at $425 billion last year, while it is predicted to post a 9.2 percent growth rate with $464 billion in 2011.

Arch rivals for the top offshoring destination title, China and India, continue to best each other in probing different markets, save for Europe and US.

XMG Global also predicts that the offshoring segment will bring in $144.8 billion in revenues, wherein the offshore market will be led by India with 42.5 percent ($61.5 billion) in revenues, followed by China with 31.5 percent ($45.7 billion), and Philippines at the third spot, with a revenue of $10.7 billion or 7.4 percent share.

Lauro Vives, XMG Global's chief analyst, said �The US economy, which remains to be a large market for offshoring, is still on the road to recovery with a forecasted 2011 GDP growth rate of 2.6 percent, slowing down from last year's 2.9 percent.�

The report also showed that the devaluation of the US dollar is affecting Philippine and Indian providers, which are dependent on the US market. Conversely, China is unscathed by the matter for it exports services to East Asian clients, even if Japan is at the wake of the 2011 earthquake.

XMG added that China is cashing in on the domestic BPO market to excel globally, and that major service providers in India that depended on high earnings from US and UK, namely Tata, Infosys, Wipro and Satyam, are looking into the growing domestic market.

The Philippines is also trying to increase its offshoring market shares by capitalizing on multilingual services. Proof of this is the Board of Investments partnership with IBM Philippines to improve programs locally for business process outsourcing.

Source:
http://newsbytes.ph/

Research: Demand for HR Outsourcing Increases

According to the research 'Talent2 APAC Market Pulse Study' commissioned by Talent2 and conducted by Galaxy Research, HR outsourcing was seen as a viable solution by most HR executives (80-90%) who participated in the survey.

A total of 579 HR executives participated in the online survey from countries like Australia, China, Singapore, and Hong Kong. They cited HR outsourcing as the solution to manpower-related issues such as search and recruitment (64%), and employee retention (50%).

John Rawlinson, CEO of Talent2Group, pointed out: "This research reinforces that ongoing skills shortages are hampering organisations across Asia from finding the people they need to drive top line business growth. What's interesting here is that HR executives are focusing on different ways to address these challenges - namely through outsourcing, and investment in learning and development."

Other important issues for HR outsourcing in Australia are the following:

- Other than recruitment, employee development and HR consulting are the processes that may be outsourced.
- More than half of respondents say that outsourcing enables them to focus on their core business functions.
- Sixty-three percent (63%) say that service providers' lack of detailed information about the business is a major disadvantage of outsourcing business processes.

Source:
http://au.ibtimes.com/

PH Moving Up to Become Leader in Multilingual BPO

After dominating the global industry of call center work, the Philippines is striving to become a location of choice for multilingual business process outsourcing (BPO) services.

Board of Investments (BoI) Managing Head Cristino Panlilio said they recently teamed up with IBM in hopes of making the country the leading source of multilingual candidates especially since increase in BPO activity is seen from companies in regions such as Europe and Asia-Pacific.

As stated in the DTI's briefer, "The Philippines as the Global Leader in Multilingual BPO", the number of multilingual talents in the country is increasing 8.7 percent yearly, with local multilingual candidates outnumbering foreign multilingual talents. Also, multilingual candidates in the country typically work on non-sales services like tech support and teaching.

Panlilio said the upcoming training center in Ortigas will harbor the partnership's plan of spawning Nihongo, French, German and Spanish-speaking graduates. Other plans include process integration of work permits and visas for both foreign and local talents to improve and simplify multilingual services.

IBM Philippines' General Manager James Velasquez said, �IBM's capabilities and best practices in multilingual BPO business, coupled with strong and strategic cooperation from the BoI, will further establish the Philippines as an upcoming leader in the global multilingual BPO arena."

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

PH Govt Fully Supports BPO Industry's Expansion

President Aquino recently said in a statement during the inauguration of NetworkLabs, Nokia Siemens Network's (NSN) research and development facility, that the government will fully support the developments in the BPO industry.

The President said that some of the things the administration is looking into are: business registration processes, efficiency of tax ruling procedures, and reduction of required documents for bidding in public works. The government also intends to draw investors by proposing tax incentives like income tax holidays for BPO-related investments, which enabled the BPO sector to gain net margins that are higher than those in India for 2010.

�We want to see more businesses opening, and to see many more skilled Filipinos being employed. More businesses open, the more opportunities our countrymen will have to show what they are capable of," said President Aquino.

NSN NetworkLabs is the first R&D facility in Southeast Asia that services and supports R&D teams globally. He added that it is an honor to be chosen as the facility's location, because it proves that the Philippines is a leader in the BPO industry.

Source:
http://www.gmanews.tv/

Gartner: BPO Companies to Increase Spending this Year

Fifty-four percent (54%) of the 600 mid-to-large companies that were surveyed declared that they are planning to add 5% or more to fund their BPO projects, while 20% are planning to escalate BPO budgets by 10%, showing that opportunity to expand BPO or IT outsourcing has indeed returned since the recession.

Teresa Jones, principal research analyst at Gartner, said, "Many of these budget increases are driven by the fact that BPM is focused on improving business outcomes and explicitly meets the objectives of many organisations' return-to-growth strategies.�

This could be advantageous for the key players in the international BPO market -- India and the Philippines. Twenty-five percent of the participants in the Asia Pacific region were planning to increase BPO expenditures by more than 10%, which shows that �return to growth� trend is more aggressive than the 20% rate globally.

Also, companies turn towards BPO expansion rather than IT outsourcing, for they see that BPO offers more opportunities.

Source:
http://rtn.asia/

World Bank Predicts 5% Growth for the Philippine Economy

According to the Philippines Quarterly Update (PQU) released by World Bank, "growth could potentially be higher as the strong focus and early gains of President Aquino's administration in tackling corruption and improving the investment climate could boost domestic investment."

The much anticipated increase in exports to Japan and the rise of jobs in the outsourcing sector will also strengthen the economic growth of the Philippines.

World Bank Senior Economist Eric Le Borgne stated, "Prospects on the supply side remain favorable with manufacturing and construction projected to benefit from the end of the trade disruption linked to Japan's post-disaster reconstruction, as well as the solid growth forecast for the business process outsourcing."

However, the Philippines needs to persevere in creating a comprehensive improvement aimed at reducing 30 percent of the poverty rate. The World Bank added that the Philippine government should also take action in creating sources of income for the poor, and fund education, health and social protection services.

Another factor pointed out by the World Bank is to improve tourism in the country that can provide work for the less fortunate and more opportunities for small enterprises.

On the other hand, Benjamin Diokno, Economics professor at the University of the Philippines, said, the targeted growth forecast should be scaled back at around five to six percent, and predicts that it will dwindle to 4.9 percent due to the disaster in Japan and conflicts between the Middle East and North Africa.

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

CICT Downgrade to have Negative Impact on PH BPO

Following President Benigno Aquino III's decision to downgrade the Commission on Information and Communications Technology (CICT) and make it an office of the Department of Science and Technology, Senator Edgardo Angara said this could have a negative impact on the growth of the country's business process outsourcing (BPO) industry.

Angara noted that this move of downgrading CICT to Information and Communications Technology Office �sends the wrong signal� about how we think of ICT, which is an industry that can open opportunities for jobs and investment. This might slow down the growth of companies in the BPO industry. By 2016, it is expected that the industry will employ 1.3 million workers, and revenues could hit the $26 billion mark.

He has filed a bill to establish a Department of Communications Technology. The senator as well as the IT and BPO sectors are all for the creation of a department which will serve as the government body that addresses their needs and issues.

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

Outsourced Work not Included in India's Data Privacy Rules

India's new data protection and privacy rules, which involve asking for a written consent to collect data, do not apply to personal information from clients that outsource work to the country. This is according to CEO Kamlesh Bajaj of the Data Security Council of India, a company established by IT body National Association of Software and Service Companies (Nasscom) to set data security and privacy standards for outsourcing players.

Based on the new Information Technology Rules 2011, companies need to get a written consent to individuals that they would be collecting personal information. Bajaj said the government will soon clarify that the rules do not cover personal data from companies in other countries.

On the other hand, analysts think the country had gone overboard when it comes to implementing stringent data privacy rules to impress outsourcing buyers and investors. According to London-based law firm Lawrence Graham LLP, the new rules posed concerns on how this initiative could be implemented. Also, companies that outsource work to India need to look into their practices in collecting data to ensure that these are in accordance to India's own data privacy rules.

Source:
http://www.pcworld.com

PH Economy, Property Sector to Earn More with BPO Revenues

The increase in business process outsourcing (BPO) industry revenues, low interest rates, and improved investor confidence are factors that will extend gains of the property sector and the country's economy as a whole.

According to Rick Santos, Philippine chairman of property services company CB Richard Ellis, said the demand for office space in the BPO industry will increase and will reach more than 300,000 sqm. this year, as US firms outsource more processes to the Philippines and because rents in the country are much less expensive compared to other Asian cities. "We see that as a huge metric whereas places like Singapore, who also have a very hot market, take up there is just about 150,000 square meters. So we're looking at office take up in the Philippines double that of a place like Singapore."

The administration also boosts investor confidence. Santos said foreign investors see great improvements in the next few years.

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

MicroSourcing Taps Healthcare, Financial Services Sectors

MicroSourcing has long been providing services for clients from IT & Internet and creative sectors, and the rapid expansion of the company, not to mention the constant flow of client inquiries, are evidences that MicroSourcing can deliver on time and within the clients' budget. This year, the company started tapping two new segments: healthcare and financial services.

The company was contacted by a US-based health information solutions provider. They specialize in forming partnerships with various organizations that need help in healthcare data analytics. This client needs about 200 Clinical Abstractors who are responsible for complete diagnostic coding, abstraction of pharmaceutical studies, as well as review of medical records.

When it comes to the financial services segment, MicroSourcing recently signed a contract with a US-based company that deals with processes involving Point of Sale (POS) payment and debit and credit card transactions. The client requires Sales-driven Account Associates who are in charge primarily of converting all phone calls into sales transactions.

MicroSourcing's PR Department Launched

Knowing that social media platforms have become excellent online marketing tools for a lot of businesses of any type and size, MicroSourcing recently formed a Public Relations (PR) department that will implement strategies on Facebook, Twitter, LinkedIn, and other similar sites. This is primarily to increase brand awareness and attract more visitors to the company website.

Headed by Nona Tajanlangit-Kooijman, the department is responsible for making the company's presence known in the world of social media. Specifically, they are in charge of managing MicroSourcing's social media profiles across various platforms including LinkedIn, Facebook, Twitter, and YouTube, developing and executing acquisition and retention strategies, generating and monitoring content, responding to comments, questions, and suggestions of friends, followers, and contacts, monitoring the strategies of competitors, and staying up-to-date on the latest social media trends and techniques. The department is also in charge of creating and publishing press releases to further promote what the company can offer.

BPO Firm Partners with DepEd to Improve English Skills of Students

The Philippines' Department of Education (DepEd) formed partnership with business process outsourcing (BPO) company Wipro BPO Philippines to help teachers in public high schools be more proficient in the English language and eventually produce high quality, English-speaking talent. This is through the Communication Excellence for Public Education (CEPE) program.

In the CEPE, launched two months ago in Cebu, Wipro will be facilitating training and refresher courses to public high school teachers who will be nominated by DepEd. This is to address the lack of English oral and written skills in students. A total of 60 teachers from Cebu were already trained since the CEPE launch. DepEd 7 Director Recaredo Borgonia said that students need to improve their English communication skills so they can meet the requirements of various industries, including BPO, in their province.

CEPE was first rolled out in Cebu, but according to Wipro BPO Philippines Ltd. country head Romit Gupta, the company is planning to facilitate the program in Manila.

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

Increase in Demand for Office Space Seen due to BPO Growth

Due to the incessant expansion of business process outsourcing (BPO) companies in the country's central business districts (CBDs), Rick M. Santos, chairman of the local property consultancy firm CB Richard Ellis Philippines, Inc., predicted an increase in demand for office space, saying that leasing in the Philippines is much cheaper - only one-twelfth of the rates in Hong Kong.

Mr. Santos sees a 30% or roughly 350,000 sq. m. increase in office space leasing compared to 2010. �Last year, we hit 275,000 sq. m. It will be up this year because BPOs will expand,� he said.

Bonifacio Global City in Taguig, Pasay, and Eastwood City in Quezon City will still remain as �growth areas� for both BPO and KPO companies.

According to the quarterly report of CB Richard Ellis entitled �Market View: Asia Pacific Offices�, office space rent in Metro Manila (about $20.22 per square feet in the first quarter) is still the second cheapest in Asia Pacific.

Also, Mr. Santos said 20% of the Zuellig Building is now reserved for office use. This is the first ever US Green Building Council's Leadership in Energy and Environmental Design (LEED)-certified structure in the country.

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

PH BPOs Aim to Tap New Markets in Asia-Pacific Region

To further promote the business process outsourcing (BPO) industry of the Philippines and reach the target annual growth rate of 30 percent, BPO firms in the country are eyeing to tap new markets in the Asia-Pacific region.

According to Senior Executive Director Gigi Virata of the Business Processing Association of the Philippines (BPAP), the country's BPO industry can enter new markets such as China, Sri Lanka, and India as it has maintained its competitiveness in BPO for call center work and non-voice functions.

However, talent that meets client requirements remains a challenge for the industry. To improve the quality of recruitment and increase the hiring rate in the industry, BPO firms are working together with the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) to implement training and recruiting development programs.

Meanwhile, businessmen think computerized training and increased use of English in local TV can further improve the English communication skills of Filipino workers who wish to enter the BPO workforce.

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

Poor Service Remains a Concern with Outsourcing Vendors

Based on the 2011 IDG Enterprise Outsourcing and Service Providers online survey answered by 1,176 IT leaders, substandard service quality is the main concern of most CIOs, even though 44 percent of the respondents said service level agreements (SLAs) are now stricter compared to SLAs three years ago. Other risks mentioned were security issues, loss of internal IT knowledge, and hidden fees.

Barr Snyderwine, CIO of a special events company called Hargrove, had an outsourcing strategy which started out smooth - low costs and decent service, but when it comes to IT outsourcing, the situation was different. He said that if there is a server problem, the provider will send someone over, but that still takes some time. �If you're buying a box or replacing a drive, SLAs work great. But when you're outsourcing services, it's still all about people. Governance is key," said Snyderwine.

More than 25 percent of survey participants rated their service delivery management and measurement practices as very effective, while 43 percent said they were average, and 12 percent said they weren't effective at all. "The mentality all too often is, I have a contract in place, we've told them what we want, now they can do it all for us," says Snyderwine.

Apparently, quality issues will not hinder outsourcing operations. As a matter of fact, 36 percent of IT leaders plan to add third party IT services in the coming year. The top reasons are: lack of skills and know-how (52 percent), to lessen costs (50 percent), and supply different needs of the company (44 percent).

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

Canadian Small Companies still don't Want to Outsource

According to an Angus Reid survey done by the American Express Small Business Monitor last April, 38 percent of owners choose to avert difficult tasks but are having issues when it comes to trusting the quality of other people's work. Meanwhile, twenty-four percent do not want to endure the difficulties of finding and managing new people.

Subsequently, majority of the survey participants say outsourcing is costly and are unwilling to surrender control of their business. The result clearly proves that small business proprietors in Canada would rather resolve tech issues on their own, even if they lack the expertise, than employ support.

Forty percent chose to be independent by doing office repairs, cleaning, and administrative tasks.

However, a lot of owners admitted that they are incapable of doing it all, particularly technology-related issues. In fact, 59 percent said they gave in to outsourcing and hired outsiders for at least one of their tasks in a span of six months. Some of the most outsourced processes are website-related and technical support.

According to a monthly report by the National Federation of Independent Business, even small business owners at the south of the border are unwilling to hire, not due to management control issues but because of the weak economy and political uncertainty.

Source:
http://www.theglobeandmail.com/

Nasscom Chief: Indian IT Outsourcing Model becoming Outcome-based

Chief Som Mittal of Nascomm, India's IT industry body, said the country's traditional information technology outsourcing (ITO) model is shifting into result-based form. He also predicted that the industry will post double-digit growth rate figures and revenues will increase, more or less 15%, valued at $70 billion by the end of this year, as clients from the US and Europe resume IT spending.

�We've now moved to an outcome-based model - being paid on performance, rather than one based solely on the number of people deployed on any one job, that is giving outsourcers an incentive to be more efficient,� Mittal said.

In addition to that, HCL Technologies Director Bindi Bhullar said buyers are now looking for pricing models that are outcome-based.

However, some experts believe that the increase in number of above-average wage earners in India may pose a problem later on. Arup Roy, Gartner's principal analyst, said salaries increase 15% annually, which means that India's title as a low-cost destination is "depleting with every passing year" and added that investors need to change their usual expectation of seeing a 20-25 percent growth rate.

Source:
http://itservices.cbronline.com/

PH Recognized as One of the Leading Global Service Exporters

World Bank recently recognized the Philippines as one of the leading global service exporters, thanks to the business process outsourcing (BPO) industry. They also noted that for the country to progress, travel and tourism should also be developed.

According to World Bank senior trade economist Sebastian Saez, the factors that affect the services sector are infrastructure, manpower, and excellence of institutions. �The experience of exporting outsourced business services in the Philippines shows that by creating an enabling environment where the private sector can deploy its creativity, developing countries can reap the benefits that services exports opportunities are opening,� Saez said.

Services exports increased 3.6 percent per year, from nine percent in 1999 to 21 percent in 2009.

The Philippines holds 15 percent of the global BPO industry, with India (37%) at the top spot and followed by Canada (27%).

According to Business Processing Association Philippines (BPAP) chairman Fred Ayala, during 2010, the country's BPO industry employed around 500,000 people and yielded $9 billion worth of services. The industry plans to reach $25 billion in revenue by 2016 and employ 1.3 million.

World Bank study also emphasized that the tourism sector should be cultivated and reforms outlined in the National Tourism Development Plan (NTDP) should be addressed to maximize the sector's potential and in the long run, help resolve poverty issues in the country.

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

UAE Seen as Major Outsourcing Location of Choice

According to a study, companies worldwide are taking advantage of prime locations that offer advanced technology and tax-free environments for business process outsourcing (BPO) operations. The UAE's Dubai Outsource Zone (DOZ) seems to be living up to clients' expectations and has become an influential contender in the global outsourcing industry. As a matter of fact, DOZ is currently housing call and IT center operations that focus on banking, travel, financial, and IT sectors.

Lindsey McDonald, Frost and Sullivan consultant who co-authored the report with DOZ, said, "Now, what we're seeing is a new outsourcing mega trend." The DOZ currently oversees 5,000 workers from 58 nations. She added that the region is seen as one of the most stable despite the economic downturn.

"Growth witnessed by the cluster in such a short time signifies the role it has played in developing the emirate's outsourcing industry. Obviously one of the main criterions is the political stability. We know we are on the radar of many companies who are revamping their strategies," said Malek Al Malek, managing director of Dubai Internet City and DOZ.

Source:
http://gulfnews.com/

BPO Predicted to Outshine OFW Remittances by 2016

Senator Edgardo Angara, along with the Business Processing Association of the Philippines (BPAP), predicted that by 2016, the business process outsourcing (BPO) industry can outdo the remittances from overseas Filipino workers.

At present, the BPO industry employs (more or less) 500,000 Filipinos and is valued at US$9 billion. According to BPAP, it can grow from US$18.8 billion in 2010 up to US$26 billion by 2016, employing 1.3 million people.

Senator Angara said during a recent hearing of the Senate Committee on Science and Technology, the BPO industry is in dire need of the government's support in terms of data security and establishment of an ICT-dedicated government entity to regulate operations. Angara said this could be achieved by establishing a government division called Department of Information and Communication Technology (DICT), and implementing data privacy laws.

According to Angara, the creation of DICT under the Medium Term Philippine Development Plan is also supported by The National Economic and Development Authority (NEDA).

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

PH IT-BPO Exports could Hit $55B Mark in 2020

According to a study done by World Bank consultant Raja Mitra, improvements in the information technology outsourcing (ITO) industry could help increase export revenues, from $30 billion to $55 billion by 2020, and relatively surpass the $9 billion it measured in medium-term export revenues during 2010.

Mitra also estimated that the low-end medium-term export revenue could amount to $30 billion, the medium-end at $45 billion and lastly, the high-end could be valued at $55 billion.

�While not a panacea...expanding the scale and scope of exports of IT-BPO services as well as domestic industry development and use of ICT [information and communication technology] will offer new avenues that can help the economy to be more productive and accelerate efforts to achieve inclusive growth within the country and to interface and catch up with the rest of the world,� Mitra said.

In 2010, the IT-BPO industry contributed five percent to the country's gross domestic product (GDP), but Mitra predicts that it could reach as much as 11 percent in 2020. Mitra likewise predicted that the number of employees in the sector will reach 6.8 million by 2020. However, he said that these are only estimates and that there are more areas to work on like the lack of infrastructure in most IT-BPO services.

In terms of voice-based outsourcing services, Mitra said the Philippines had surpassed India and that Metro Manila is currently the city that has the most number of employees in the BPO industry.

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

India's Affordable BPO Services Attract Investors Worldwide

Ernst and Young recently reported that India's ability to offer affordable business process outsourcing (BPO) services draws global investors albeit regulatory disputes in the country.

Mr Srinivasa Rao, Partner and National Director -Tax & Regulatory Services at Ernst & Young, said, �The survey clearly establishes India as one of the leading economies where foreign capital will flow into in the coming years. In addition to the overall strong macro-economic fundamentals, India's navigation of the economic downturn over the last couple of years has been strong and steady.�

Industry body Nasscom recounted that during fiscal 2011, India's IT and BPO exports account for 26 percent of the country's overall exports and 11 percent in earnings. This is an 18.7 percent increase valued at $59 billion.

IT services are expected to increase 16-18 percent to $68-70 billion. Consequently, the IT sector matured faster at 22.7 percent than BPO at 14 percent.

Over 800 global companies were surveyed on their opinions about the future of global investment. The findings were then combined with an analysis of international investments in Europe.

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

Global Outsourcing Industry Estimated to Reach $479B by 2016

Based on a report done by Dubai Outsource Zone (DOZ), in partnership with research and consulting firm Frost and Sullivan, the global outsourcing sector is predicted to reach $479.3 billion by 2016 due to a significant change in the industry.

The special study, entitled �Outsourcing Opportunities in the MENA Region�, was released during DOZ's fourth anniversary.

The report highlighted that the UAE and the wider MENA region are prime outsourcing destinations. Moreover, it showed that $370 billion from the global outsourcing market will be reflected as an 8.35 percent compound annual growth rate (CAGR). On the other hand, the MENA region is expected to show a CAGR of eight percent during the period of 2009-2016, while the UAE is expected to gain a 10 CAGR during the same forecast period.

The developments in the industry are also said to be caused by the financial crisis, which also encouraged companies to change policies, practices, and to outsource.

As Dubai becomes the favoured outsourcing destination because it poses as a gateway to the entire Middle East, Africa, and Asia, the MENA region, on the other hand, is known as the second largest outsourcing market after Egypt.

Frost & Sullivan Consultant for Middle East and North Africa Information and Communication Technologies Lindsay McDonald said, �The entire outsourcing industry was based on low cost activities. But now clients are ready to pay a premium if they are assured of high quality services. Due to this trend, governments of well-established outsourcing destinations are in the process of re-aligning their outsourcing industry and its development strategies.�

Source:
http://www.khaleejtimes.com/

MicroSourcing Opens New Office at Bonifacio Global City

As part of the company's expansion to meet the needs of clients, MicroSourcing opened a new office last June 1 at Bonifacio Global City in Taguig.

MicroSourcing's new office has 200 production seats divided over two work floors, 21 management and shared services seats, two conference rooms, a server room, and a restaurant. It occupies the entire 18th floor of Picadilly Star Building, home to a long list of multinational companies including Mindshare/Ogilvy, InContact, and DOCOMO interTouch.

Bonifacio Global City lies at the center of Metro Manila, right next to the Makati central business district. It is a high-end location with a lot of new luxury residential and commercial buildings. It is the location of choice for most multinational financial institutions such as HSBC, JP Morgan and Deutsche Bank.

The emergence of the new PEZA-accredited building has sparked an increase in the number of business process outsourcing (BPO) companies that are starting to set up their delivery centers in Fort Bonifacio. Moreover, the availability of 24/7 services catering to the average BPO worker is improving rapidly. This further makes the area a very conducive environment for BPO companies.

PH Tagged as the �Next Asian Dragon� in the BPO Industry

Investors consider the Philippines as the �next Asian dragon�, taking note of the 25-percent-a-year growth rate of the country's IT-BPO industry.

According to Commissioner Ivan John Enrile Uy of the Commission on Information and Communications Technology (CICT), this growth rate is attributed to the world's biggest firms that establish business operations in the Philippines. Based on last year's data, approximately 525,000 workers were part of the IT-BPO workforce and US$9.1 billion in export revenues were posted.

Meanwhile, Uy praised Bacolod in Negros Occidental for being ranked as the 3rd Next Wave City in the country, and 100th city globally according to Tholons International. He added that CICT aims to further prepare cities and areas outside Metro Manila to meet the needs of IT-BPO companies to �decongest Metro Manila, spread economic growth opportunities to other parts of the country, and capitalize on the abundant and globally competitive workforce available in many parts of the country."

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

Eastwood City Cyberpark Remains No.1 IT Park in the Philippines

In terms of employment figures and salaries, Eastwood City Cyberpark in Quezon City is still the number 1 IT park in the country. This is based on the data from the Philippine Economic Zone Authority (PEZA).

In 2010, Eastwood City Cyberpark's PEZA-registered locators employed 19, 395 individuals. This is a 15 percent increase from 2009 figures and is the highest number among all registered IT parks in the country. On the other hand, the salaries and wages paid out in PEZA-registered firms reached Php7.93 billion, a 15 percent increase from Php6.72 billion posted in 2009.

Eastwood City Cyberpark also posted an increase in the exports category, reaching US$354.19 million from its companies that belong to the outsourcing and offshoring industry.

Jericho Go, FVP for Business Development of property developer Megaworld Corporation, shared this recognition to the cyberpark's locators and partners that contribute to achieving the goal of providing career growth opportunities for Filipino employees.

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

Clients Miss Opportunities as They Focus Too Much on SLAs

A recent study done by Accenture and Shared Services and Outsourcing Network (SSON) stated that outsourcing providers and clients are mostly consumed by service level agreements (SLAs) and are forgetting business strategies in contracts.

Forty-two percent (42%) of the 600 respondents said their time is spent discussing SLAs rather than business outcomes. On the other hand, 25 percent said they used to do the same thing but have changed the process.

According to Tom Pettit, managing director of North America business process outsourcing at Accenture, although SLAs are vital for IT and BPO contracts, they can also confuse both parties from future developments. "SLAs are an important part of any managed service engagement. They set expectations and necessary service performance targets. However, the overwhelming majority of SLAs are focused on measuring process inputs, rather than business outcomes."

Cutting costs may be the driving force for clients and providers to overlook operational metrics. Fifty-eight percent (58%) of the respondents said they outsource work because they wanted to cut costs, 19 percent did it because they wanted access and capacity, and 12 percent did it for risk reduction.

It is also stated in the study that most of the outsourcing customers fail to gratify some members of the management team, which has become a problem. "The centralization of services, whether in an internal shared services model or in an outsourced model, involves shifts in power and influence, changes in roles and responsibilities, and disruption of familiar ways of working. These are notoriously difficult and often deeply personal issues that require focused and sustained management attention over extended periods of time," said Pettit.

Source:
http://www.cio.com/

US Firms to Invest $100M, Create 10,000 BPO Jobs in the Philippines

With a total of $100 million worth of investments, six US-based companies are outsourcing non-voice business process outsourcing (BPO) work to the Philippines, generating 10,000 job opportunities for Filipino workers. According to Cristino Panlilio, managing head of the Board of Investments (BoI), these American firms are new outsourcing players, though the names remain undisclosed.

In an earlier report, BoI said AETNA, US-based insurance company, will hire Filipino nurses to provide two kinds of services: clinical support and home care for American patients. BoI Executive Director Fe Reyes-Agoncillo said there are 250 nurses who are already providing clinical support, and the firm needs a total of 500 for that service. On the other hand, 250 nurses are needed to provide home care services for patients. This number is expected to reach 1000 in the next two years.

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

Cebu's BPO Industry Empowered by New IT Locators

The business process outsourcing (BPO) industry of Cebu continues to expand as new IT buildings and sites emerge to cater to the influx of IT firms that are interested in establishing operations in the province.

Cebu Property Ventures and Development Corporation (CPVDC) and Ayala Land Inc. (ALI) have teamed up in managing Asian i-Office Properties Inc. (AiO), a company that recently led the topping out of eBloc Tower 2 at the Asiatown IT Park.

Francis Monera, CPVDC President, said, �Cebu's booming BPO sector is ripe for the expansion of new and existing IT locators. The opening of an eBloc Tower 2 will open the door to more investments and job opportunities in the area.�

eBloc Tower 2 is a follow-up to the eBloc Tower which was completed in 2009. The 16-level office building is situated at a 4,383-square meter lot, and is predicted to become the best location for BPO, IT, and IT-enabled services (ITES) business locators.

Monera also said that various BPO companies are very interested in leasing office space. Sixty-five percent (65%) of the total occupancy were already reserved for upcoming operations, and once occupancy rate has reached 70%, AiO will begin the construction of the third tower.

ALI senior vice president and Visayas-Mindanao group head Emilio Tumbocon said that eBloc Tower 2 only accounts for one of Ayala's 13 new projects to be launched this year. �With these strategic directions, we will take on new ventures and maximize the potential of the BPO industry, particularly in the Visayas and Mindanao areas,� he said.

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

Telco Company Seeks Call Center Agents with British Accent

According to Business Inquirer Manila, a British company has considered entering the Philippines' business process outsourcing (BPO) market, and even train call center employees to speak like a British.

Presidential spokesperson Edwin Lacierda said that representatives from prominent companies Convergys (Philippines) and Everything and Everywhere (Britain) contacted President Benigno Aquino III and presented the plan. The British company is looking to hire employees and establish foothold here in the country. �And since this is a British BPO, there's also a need for the Filipinos to be trained in the British accent, which we are not familiar with,� he added.

Lacierda said, �They are very, very bullish. They are interested and they are very open to the situation here in the Philippines. We're the No. 1 BPO destination in the world and they recognize our ability. They recognize we have the infrastructure to maintain our status as the No. 1 BPO destination in the world,�

In line with that, Trade Undersecretary Zenaida Maglaya said that Everything and Everywhere is working on a partnership with Convergys in hopes of penetrating Philippines' BPO market.

Source:
http://www.bpowatchindia.com/

Job Opportunities for Nurses in the Philippine BPO Industry

Thousands of unemployed nursing graduates may consider working for business process outsourcing (BPO) companies in the Philippines, where they can perform jobs that are related to their educational background.

According to Fe Agoncillo-Reyes, assistant secretary of the Department of Trade and Industry (DTI), a New York-based company, Aetna Insurance, has a unit in the Philippines called EXL Service Philippines. This company, which started out with 250 nurses at an office in SM Mall of Asia, is now looking to hire 1,000 nurses to provide basic clinical support like assessing and approving insurance claims. Other services include calling home-care patients based in the US.

The healthcare BPO sector provided jobs to 14,000 healthcare professionals in 2010, and produced $102 million in revenue, an 11% increase from 2009. Today, medical transcription is no longer the solitary work available in the healthcare BPO sector according to the Healthcare Information Management Outsourcing Association of the Philippines (formerly Medical Transcription Industry Association of the Philippines Inc.), Reyes added.

In line with this, the sector is preparing for the increasing demand for healthcare services in the United States due to changes in US healthcare regulations.

On the other hand, Business Processing Association of the Philippines (BPAP) reported that the Philippine IT-BPO industry grew 26 percent in 2010 to $8.9 billion and employed 525,000 professionals. BPAP also projected a 15% baseline increase in the next few years. The projection would then account for 900,000 total direct jobs, 1.7 million indirect jobs, and $20 billion in revenues.

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

Indian BPOs Expand Service Offerings to Meet Demand

The shift in the trends and demands in the outsourcing industry encouraged large BPO firms in India to expand vertical or sectoral expertise. BPO companies are known to have been focusing on horizontal services like customer support and back office functions that are used in various industry verticals. Industry body Nasscom assessed that horizontal services make up 70% of the Indian BPO industry.

Nonetheless, clients are now demanding for specific services wherein they can contain costs and focus on their core functions. Some of the functions clients are looking for are mortgage processing, core banking, supply chain, and healthcare insurance.

According to the group CEO of Aditya Birla Minacs Deepak Patel, banking clients and insurance clients are now outsourcing core processes in finance and are requesting for a study regarding loans and loan distribution.

Although BPO vertical focus is similar to the IT outsourcing industry, Indian BPOs manage each vertical differently. Two ways of putting up a vertical are: looking for a country that offers the specific expertise needed and buying out other service providers. An example of the latter is the recent acquisition of a finance and accounting outsourcing service provider, Outsource Partners International, by BPO firm EXL Service Holdings. Other companies that are looking to acquire specific services in other regions are Tech Mahindra , TCS, and Aegis.

Group CEO of WNS Global Services, Keshav Murugesh, said, "When clients interact with us, they interact with people with specialized knowledge and work skills from the same industry. Our core area of investment now lies in sales and new verticals."

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

Everest Group Examines Prominent FAO Service Providers Worldwide

Everest Group examined 20-plus FAO service providers and released data about the increasing progression of Finance and Accounting Outsourcing (FAO) service providers worldwide. The Global FAO Service Provider Landscape report states that 65% of the market by Annual Contract Value (ACV) and 55% of the number of contracts are represented by six of the leading FAO service providers.

However, several major service providers are quickly catching up, a phenomenon similar to that of the pre-recession era. The report includes analyses of provider dynamics, market share, performance, capabilities, and trends.

One of the factors of the survey is the PEAK (Performance/Experience/Ability/Knowledge) matrix. More than 20 FAO service providers were categorized as Leaders, bagged by known service providers like IBM and Genpact, as well as Capgemini, Infosys BPO, and HP. The Major Contenders are TCS, Wipro, WNS, and ACS-Xerox.

Others providers ranked in this category are Cognizant, EXL Services-OPI, iGate-Patni, Intelenet, Steria, Sutherland Global Services, and Vengroff Williams & Associates. Meanwhile, the Emerging Players are Aditya Birla Minacs, HCL, and KPIT Cummins Infosystems.

Last year, Accenture, Genpact, IBM, TCS, and WNS were hailed as 2010 FAO Market Star Performers, and were recently examined by the Everest Group. These were the fastest year-on-year developing companies, according to the report.

Saurabh Gupta, vice president for Research said, �Now that buyers have snapped out of the recessionary lull in spending, competitive intensity is driving service providers to innovate and push the boundaries of traditional FAO solutions to capture market share. In response, service providers are investing in technology, maturity models, new markets, and differentiated offerings to deliver greater value in the market.�

Leading FAO providers are now offering flexible products and services to meet the demands of the market, which accounts for their growth, according to the report. Service vendors are also targeting diverse market sectors like India and the Middle East.

Source:
http://eon.businesswire.com/

Gartner: Indian IT Service Providers Grow by 19%

Research firm Gartner recently released information about the 19.9 percent growth of the ten leading IT providers in India, with a 5.8 increase in IT service revenues. Five IT firms, namely: TCS, Infosys, Wipro, Cognizant, and HCL took the lead in the list.

TCS, ranked 24th in the global IT services list in 2009, moved up three spots to 21st. The company is said to be constantly reformulating strategies and improving their Business Process Outsourcing (BPO) portfolio.

Chief executive of TCS, N Chandrasekaran, said in an interview that various strategies and organizational structure help their company grow and yield a stable future for their organization.

The company Cognizant, which ranked 34th globally, had the strongest revenue growth for 2010, even though the company's revenues have dropped 10.2 percent.

In the case of Infosys, Gartner stated that the company's high-value services faced the hypercompetitive market and aggressive selling tactics of the competition, and as they stick to their business stand of not �compromising with profitability�, the company had lost some of its business to the competition. Infosys is the 2nd largest IT services firm in India with 5.33 billion dollars in revenue.

Wipro, on the other hand, posted a 16.4 percent growth and is the third largest firm in India. HCL reported a 26.7 percent growth in 2010 and it ranked 48th in the world.

"Global IT service companies have a larger base and hence it is irrational to expect their growth rates to be similar to those reported by Indian IT service firms which are comparatively smaller in size. Moreover, Indian players have a great deal of mindshare among global clients who are looking at offshoring in a big way.", said Arup Roy, principal research analyst at Gartner, and added that companies should be able to adjust and change to keep up with the demands of the market.

Source:
http://www.siliconindia.com/

ManAcq Dept. Takes Part in 2nd Job Fest and Career Fair 2011

The Manpower Acquisition Department of MicroSourcing participated in the recently concluded 2nd Job Fest and Career Fair 2011. This event was held last May 9-10 at the Glorietta Activity Center in Makati City.

Numerous companies from the business process outsourcing sector and other industries took part in the event, offering various types of jobs including marketing, accounting, customer service, clerical work, retail, administrative, etc. Moreover, different career talks and activities were done during the event. Recruitment Specialist Dan Katipunan provided some job hunting tips to help applicants in looking for work that is suitable for their knowledge and skill set.

Joining different job fairs is one of the major initiatives of the department to attract fresh graduates and unemployed individuals to join the MicroSourcing workforce and increase company awareness. According to Mr. Katipunan, the department is planning to participate in other job fairs to find new talent needed by clients of the company.

Survey Says Data Centers Outsource to Deal with Capacity Issues

An increasing number of large companies are starting to outsource to the cloud due to a potential congestion of in-house data centers, and to avert additional construction costs.

The first ever data annual assessment from Uptime Institute shows that 36% of large companies which took part in the survey are likely to exhaust their data center storage within the coming months.

The survey also exhibited that companies boost their capacity through server consolidation and power and cooling equipment upgrades, though 29% have opted to move workload to the cloud. It's actually a new feat because according to Matt Stansberry, a research analyst from the Uptime Institute, large companies are known to have always kept IT operations in-house. He also said �This is a trend we've been seeing," referring to the occurrence that more companies are now outsourcing IT operations.

According to a different study commissioned by Digital Realty Trust, a company that builds and operates data centers for third parties, 60% of the respondents who are looking to expand data center capacities in 2011 opted to lease space from a third party rather than construct their own.

Michael Foust, Digital Realty's CEO, said "Increasingly, enterprises appear to be favoring the lease model, as fewer companies are choosing to go it alone on these capital-intensive projects.�

A total of 525 large data center operators participated in Uptime's assessment process last March and April, and included "typically conservative organizations" like banks, insurance companies, collocation providers, and government agencies. On the other hand, Digital Realty's study had 300 IT executives directly involved in data center decision-making at large corporations in North America.

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

IAOP Names Leading International Outsourcing Providers, Advisors

The International Association of Outsourcing Professionals (IAOP) recently released the �Global Outsourcing Top 100� list for 2011.

Majority of the top 10 leading companies are based in the United States. These are: Accenture, which has been awarded the top spot for four consecutive years; Convergys, which came in at 5th place; CB Richard Ellis at 6th; CSC at 7th; 8th place was bagged by NCR; and Johnson Controls at the 10th spot. Alsbridge, on the other hand, was awarded as the top advisor.

The remaining spots were given to ISS, Denmark at 2nd place, Sodexo, France at 3rd, Infosys Technologies, India at 4th, and Wipro Technologies took the 9th spot.

The lists prove that the outsourcing industry remains strong, even with the economic depression with a 10 percent growth in revenue, and 4.5 percent increase in employment. In addition to that, it shows how flexible the outsourcing industry is, with its various sectors such as IT, HR, and R&D (among others), and worldwide operations and job provisions.

The ranking is based on how customers grade the service providers and advisors. Some of the factors are weighted average of size and growth rate, customer references, demonstrated competencies, and management capabilities.

The leader of the judge's panel and IAOP Chairman Michael Corbett said "These firms on the Global Outsourcing 100 are today's leaders and tomorrow's rising stars. The applicants companies went through a rigorous process that will help them better understand what customers are looking for and present themselves in the best light to win business."

The up and coming companies based in Latin and South America were ranked 76th to 100th. These were also recognized under the Rising Stars category which gives customers an idea of which countries are feasible as future outsourcing destinations. The top 10 companies in the Rising Stars category are: (76) Intetics, U.S.; (77) Scicom, Malaysia; (78) Auriga, Russia; (79) CIeNET International, China; (80) Globant, Buenos Aires; (81) Xceed, Egypt; (82) Global eProcure, U.S.; (83) Synygy, U.S.; (84) Bleum, China; and (85) Grupo ASSA, Argentina.

Source:
http://www.stockhouse.com/

MicroSourcing Lets the Good Times Roll at Mardi Gras Company Outing

Donning bright-colored bead necklaces, MicroSourcing employees and members of the management team got together for the Mardi Gras-themed company outing at Momarco Resort in Tanay, Rizal last May 7.

The highlight of the event was obviously the Amazing Race to the Next Level where four teams needed to finish eight tasks designed to test teamwork and cooperation. The IT team (with Ms. Krissy Cabiling and Marshal Dan Katipunan) was the first to finish the race. They won Php8000 and gained the all-important bragging rights.

Aside from the race, two other contests made the event even more fun and exciting. In the eating contest, four employees were given a whole roasted chicken each and the fastest to eat all of it would be declared the winner. Web Developer Gerald Villacarlos from WGP rose to the occasion and got the award worth Php1000.

Meanwhile, PHP Programmer Dan Calpatura from the Creative Services Group (CSG) proved that he could hold his liquor. In the drinking contest, he was the fastest to finish gulping a liter of beer and four shots of vodka without throwing up. He also received Php1000.

EV Malupetiks Claims Championship Title at Basketball Tournament

EV Malupetiks ended the finals game against EV Street View at 78-68, and finally claimed the championship title at MicroSourcing's Sports fest 2011 - Basketball Tournament which concluded last April 27. Malupetiks received Php10000 while Street View got Php5000.

A total of eight teams (EV Warframes, WGP Lynx, WGP Ninja, MMP Trojans, EV Good Vibes, Management Microbyo, EV Street View, and EV Malupetiks) took part in the tournament which officially started last March 19.

EV Malupetiks: Team captain Jimross Dellomos, Ivan De Ramon, Ranier Jimenez, Marlon Macaraeg, Clark Espanol, Jeffrey Caducano, Adrian Lizardo, Wilbert Aban, Edwin Isip, Ferdie Serapio, Momo Moit, Marion Christopher Ma�alac, Paolo Cenina, Greggy Reyes, Ruben Tumacder Jr., Julius Inocencio

EV Street View: Team captain Alfie Pe�a, James Dela Cruz, Alvin Bornasal, Eduardo Aban Jr., Christian Lee Santos, Aaron Tolentino, Dindo Masong, Larry Masong, Wilson Aban, Michael Cruz, David Santos, Samuel Peralta, Ray San Diego, Roy Regis, Melvin Bendictos, Arnold Atanante, Alex Marable

BPO to Outpace IT Services

Outsourcing companies based in India are gobbling up other companies to widen their portfolio of services as they scale up their growth in the global marketplace, especially with rising competition from other outsourcing destinations such as the Philippines and China.

For example, Aegis Ltd. has spent up to USD 400 million in acquiring 18 companies for the past few years. Early this year, Genpact bought Headstrong for USD 550 million, while US-listed EXL Service Holdings Inc. announced on Tuesday their acquisition of Outsource Partners International for USD 91 million.

According to Gaurav Gupta, a managing partner at outsourcing consulting firm Everest Group, the fast growth of IT-related services in the outsourcing sector was only a short-term trend. "[Information-technology] services has bounced back strongly and is growing much faster than BPO. In the long-term, however, especially given that the [infotech] services market is very well penetrated, it is BPO which will outpace growth."

EXL Service president and CEO Rohit Kapoor agrees with Gupta. "A data point that we have considered suggests that worldwide IT outsourcing spend is growing at 4% while BPO is growing or will grow at 6-8%," he explained. "Look at the actual IT spend of companies. That is growing at only around 2%, reflecting their actual growth."

"[BPO] is a much larger market and it is not that well-penetrated, so the long-term road ahead is clear," Kapoor concluded.

Source:

http://online.wsj.com

IT Takes the Lead in UK Outsourcing Industry

According to the 2009 data from the Oxford Economics research, commissioned by the Business Services Association, IT and data-related services got the top spot in the list of most outsourced business processes. The IT outsourcing sector has contributed 20 percent or �41.7 billion to the outsourcing industry's �207 billion total revenue.

Much of the outsourcing industry's revenue came from the private sector, with revenues amounting to �125 billion (60 percent). The public sector, on the other hand, contributed a modest �82 billion (40 percent). When it comes to IT outsourcing, the private sector contributed �35 billion while the public sector posted just �6.7 billion.

Richard Holway, an analyst from TechMarketView, shared in his blog, �It shows how important outsourcing is to the UK economy. Indeed, it is far more advanced here than in any other European country.�

Also, Bindi Bhullar, director of global IT services provider and outsourcer HCL Technologies, added: �Until now, there has been a reluctance to openly discuss the core benefits outsourcing brings to the UK economy. It is great to finally see credible research highlighting the significance of IT and IT-related BPO (Business Process Outsourcing) into context. This report shows how IT outsourcing has fully developed into a mature market.�

Source:
http://www.computerworlduk.com/

BSP Survey Reports Strong Outsourcing Sales Growth

In the midst of a global economic slowdown, the Philippine outsourcing industry was able to maintain its steady pace of growth, the country's central bank reported yesterday.

The Bangko Sentral ng Pilipinas (Central Bank of the Philippines) presented the results of the 2009 Survey of Information Technology-Business Process Outsourcing (IT-BPO) Services, which surveyed 736 companies involved with the outsourcing industry's subsectors of contact centers, transcription, animation, software development, and �other BPOs.�

Total revenues in 2009 rose to USD 8.3 billion, up by 30.6% from USD 6.3 billion earned in 2008. All IT-BPO subsectors earned double-digit growth in revenues, according to the BSP. Voice-based services made up half of industry earnings, growing with an annual rate of 48.2% to post USD 4.207 billion in revenues. Software development sales increased by 18.4% to earn USD 1.672 billion, while transcription sales posted the highest growth at 66.8% to earn USD 57 million.

According to the BSP report, the US stays on top of the local outsourcing industry's clients, followed by Japan, Europe, Australia and New Zealand. The total workforce employed by the industry grew by 25.3% for a total of 444,811 workers in 2009, the BSP report showed.

Source:
http://www.bworldonline.com

CSG Hosts Paint your Eggs Contest

As part of the tradition of the Easter celebration, the Creative Services Group (CSG) of MicroSourcing hosted an on-the-spot Paint your Eggs contest yesterday.

CSG members and some employees from the Manpower Acquisition Department were given a chicken egg each and a set of colored pens, sponsored by CSG Manager Mikaela Arce. A total of 11 participants put their own creativity and resourcefulness in painting and designing their Easter eggs.

After much deliberation, the judges decided that the Easter egg design of Flash Designer Joanne Mina was the most creative. She received a Php500 cash prize.

PHP Developer Ruel Mendoza's Masked Rider Black egg entry and ASP Programmer Carole Monteloyola's bee-inspired Easter egg were named 2nd and 3rd runner-up, respectively.

CanCham, BPAP Name Leading Companies in the PH BPO Industry

The Business Processing Association of the Philippines (BPAP) and Canadian Chamber of Commerce (CanCham) awarded the best BPO companies in the Philippines in a ceremony held at the Dusit Thani Hotel.

Filipino-owned SPi Global Solutions bagged the BPO Company of the Year award. SPi Global Solutions is a locally-owned and led outsourcing vendor. Global Solutions President Maulik Parekh proudly stated that while majority of BPO companies in the Philippines are run by foreigners, most of the management members in SPi answer to Filipino executives and bosses.

Other awards were given to: Teleperformance (BPO Employer of the Year and a finalist in three categories), IBM (Fastest Growing BPO of the Year Award and a finalist in two categories), Hewlett-Packard (Non-Voice Excellence of the Year award), and the ICT Individual Contributor of the year award was given to Genpact's country manager Danilo Sebastian Reyes.

�Over the last five years, we have seen a tremendous focus on and passion for excellence in the Philippine BPO industry. Today, the top awards are no longer reserved for the biggest companies with global resources. Very quickly, we are seeing new and smaller companies demonstrating efficiencies and effectiveness that put them at par with the world's best,� said Richard Mills, chairman of the International ICT Awards.

On the other hand, a special presentation was given to outgoing BPAP CEO Oscar Sa�ez who said �You have made the task easier because of your own desire to promote our country as the world's BPO destination of choice and I will always remember you in my heart of hearts.� He also thanked ICT partners for their cooperation and support throughout the years.

Source:
http://www.philstar.com

Favorable Global BPO Opportunities from the Financial Services Sector

Everest Group, an international consulting and research firm, shared data about the potential of the financial services sector in business process outsourcing (BPO) to expand. Currently, the said sector is valued at US$16-18 billion, 40 percent of the entire US$40 billion global sourcing market. It is expected to grow 15 times its current market size.

The report entitled �Role of Global Sourcing in Financial Services BPO� tackles topics such as what made the financial service BPO what it is today and how fast it got there. It also includes analysis of data from clients and service providers, strategies done by financial services companies, as well as factors that affect the demand in various financial sectors such as the banking sector and insurance BPO.

Research Vice-president Saurabh Gupta said, �In the current economic scenario where financial services companies are facing competitive pressures and are reconsidering their cost bases, BPO across industry-specific processes in banking, capital markets, and insurance is generating much interest. Our analysis finds the medium to long-term growth outlook to be significant and robust,� he added.

Rajesh Ranjan, research director and co-author of the report, said �Despite significant challenges, such as constraints in the United States associated with the Troubled Asset Relief Program (TARP) and new data protection measures in the European Union, the impact on global sourcing has been minimal,� and asserted, �Financial services firms and service providers have adapted and properly mitigated against new and emerging challenges.�

The participants in the research done by Everest Group were (strongest global sourcing capabilities): Banking BPO - Genpact, HP and TCS; Capital Markets BPO - Infosys BPO, TCS, and Wipro; Insurance BPO - Accenture, EXL Services, and WNS; and other Services - Capgemini, CSC, eClerx, HCL, Intelenet, Syntel and Xchanging.

Source:
http://www.businesswire.com/

Study Reveals Trends that Drive BPO Competition

A study done by an Information Services Group (ISG) company called TPI stated the major services that attract new clients and make existing ones renew contracts. The key factor in the shift of the trend in outsourcing was the rise of Cloud Computing technology last year. It resulted to tighter competition amongst BPO service providers as well as reduced values and shorter durations of contracts. This trend is predicted to continue all the way through the end of 2011.

Paul Reynolds, Chief Research Officer of TPI Momentum, said, �For service providers to increase pipelines and improve profitability in 2011, they will need an accurate reading of current client preferences and market trends, an appropriate strategy to respond, and disciplined execution in the face of strong competition.� �This report provides the information they need to understand the size and scope of opportunity in the global outsourcing market,� he added.

According to additional data collected by exclusive sources and TPI advisors from around the world, majority of the clients are predicted to embrace Cloud Computing and include Cloud-based services in contracts. This prompted service providers to reformulate services related to the said trend, and bolster their portfolios.

Other factors in the restructuring and change in strategic plans of BPO firms are shorter contracts and multisourcing. Proof of that was a large number of contracts that expired last year and over 500 more are expected to expire this 2011. In addition to that, clients who spend $50 million annually in outsourcing acquire the services of two or more BPO firms.

The TPI Momentum Market Trends and Insights 2010 Annual Report also includes data in IT and business process outsourcing like, geographic regions, vertical industries, client company sizes, service provider market share, etc., tips for services providers regarding multisourcing, as well as factors that affect Cloud Computing services.

Source:
http://www.prnewswire.com

PH BPO Industry Attracts Top Financial Firms

The Philippine business process outsourcing (BPO) sector is getting ready to deal with the global demands of multinational financial firms that have flocked to the country, says the Business Processing Association of the Philippines (BPAP), the country's private association of BPO service providers.

"Based on the 2010 report of Everest Consultancy Institute, the Philippines generated revenues of $5.7 billion in the call center or voice sector compared with India, which had only $5.58 billion revenues last year," says Martin Antonio Crisostomo, BPAP executive director for external affairs.

Crisostomo comments that the country's BPO companies are already providing services to global financial firms JP Morgan and Deutsche Bank. JP Morgan is currently employing 10,000 BPO workers from a pioneering staff of 200, the BPAP officer explains.

The exponential growth of the BPO industry in the country has even attracted competing Indian BPO firms, opines Crisostomo, citing Indian companies Tata Group and Gen Pact as examples of multinational, Indian-owned companies that have either transferred or started up operations here.

The BPAP officer says the association expects the non-voice sector of the BPO industry to improve revenues this year, especially in the animation and game development areas. "There is a film being made by DreamWorks animation and some portions of PlayStation 3 which are being done by Filipinos here," says Crisostomo.

At present, the Philippine BPO industry employs around 530,000 workers, according to the BPAP.

Source:
www.malaya.com.ph

India's BPO Industry Predicted to Grow 23.2 Percent

According to a study done by Gartner, a global IT research firm, the Indian BPO industry is projected to grow 23.2% in 2011 and will incessantly expand until 2014.

Gartner's research director T.J. Singh said "Changing demographics, increasing affluence and economic growth in Asia-Pacific continues to drive shared services and BPO adoption, especially in Australia, India, Southeast Asia and China," and added "Buyers continue to invest in services that deliver scalable and consistent services across their geographical presence."

The study also stated that India is one of the fastest growing BPO markets in Asia. Australia, on the other hand, is the second largest consumer of BPO services.

Some of the most rendered services in India's outsourcing industry are banking and financial services, communications, government (both local and federal), technology, and travel and transportation.

In recent years, some of the BPO service providers in India namely Omnia, Kenkei, Androemeda, Genpact, Magus, MphasiS, Intelenet Global Services, Tech Mahindra, Aegis, Spanco and HTMT, have been focusing on the international offshore market, but are now slowly transitioning and concentrating on the domestic market.

Source:
http://economictimes.indiatimes.com

PH BPO Sees Faster Growth Rate in the next 5 Years

With a 26 percent revenue growth rate in 2010, which translated to almost $9 billion, the Business Processing Association of the Philippines (BPAP) sees stronger growth, reaching 25 percent a year, for the industry. In the roadmap created for 2010-2016, it is estimated that the outsourcing industry of the country will reach a growth rate of 15 percent.

Last year, BPAP and associations reported that 525,000 individuals comprised the IT/BPO workforce, and $8.9 billion in revenues were generated. With a faster growth rate, BPAP Chairman Alfredo Ayala said the industry can post $25 billion in revenues by 2016 and employ 1.3 million direct jobs and 3.2 million indirect jobs. When it comes to the projected growth rate of 15 percent, the industry is capable of employing 900,000 direct jobs, 1.7 million jobs, and posting revenues reaching $20 billion.

The Philippines had already taken the lead in providing voice-based or call center services. This sector alone grew by more than 20 percent last year. On the other hand, the non-voice sector, which includes back office functions and knowledge process outsourcing (KPO), posted a 30 percent growth rate in 2010.

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

PH BPO Sector Gets 26% Revenue Growth

The Philippine business process outsourcing (BPO) industry posted a year-on-year growth of 26%, earning $8.9 billion for 2010, the domestic industry association announced yesterday.

The Business Processing Association of the Philippines (BPAP) said the contact center sub-sector made the highest growth at 21%, generating $6.1 billion in earnings. The growth enabled the Philippines to overtake India in voice-based services. According to Benedict Hernandez, president of the Contact Center Association of the Philippines (CCAP), "The Philippines now leads the world in voice-based customer service."

Employment among BPO companies also increased by almost a quarter, for a total of 525,000 employees for 2010, according to BPAP records. "We achieved robust growth in all major sectors of the industry: voice-based BPO, non-voice business support and complex services, and information technology," announced BPAP chairman Alfredo Ayala.

BPAP said they expect an annual growth of 15% until 2016 � by that time the industry would involve two million jobs generating $20 billion in revenues. "But with greater collaboration from all stakeholders, including government and the academe, we have the potential to grow at 25% a year. This would create 1.3 million direct jobs, 3.2 million indirect jobs, and $25 billion in export revenues," Ayala opined.

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

Everest Group Says HR Outsourcing will Grow 8-10% in 2011

This year, the multi-process Human Resources Outsourcing (MPHRO) will grow by 8-10 percent, mainly due to stronger economy and as contract activity bounces back. This is based on the Human Resources Outsourcing Annual Report 2011 by global services firm Everest Group.

Research Director Rajesh Ranjan said cost reduction is still the primary reason companies adopt human resources outsourcing, though technology access, keeping HR and business aligned, and managing compliance are becoming more crucial. Aside from the projected growth rate of the market, it is also expected that there will be increased adoption of MPHRO by industries like insurance and technology, as well as mid-market companies.

Report also reveals that North America is the no. 1 adopter while Europe accounts for 33 percent of MPHRO deals. On the global scale, India is the leading offshoring destination. Also, payroll processing and benefits are the most common functions included in human resources outsourcing deals.

Source:
http://insurancenewsnet.com

Organizers Ready for Top PH Outsourcing Event

The International Outsourcing Summit, the Philippines' top outsourcing event, is gearing up for its third year, to be held later this year from October 11 to 12 at Sofitel Philippine Plaza in Pasay City.

The industry group Business Processing Association of the Philippines (BPAP) has renewed their contract with events organizing firm TeamAsia. This year's summit will revolve around the theme �Global Market Leaders Addressing Global Issues.�

�The IT-BPO Road Map 2011-2016 identified key opportunities and risks for the Philippines to take advantage of the growth in the IT-BPO industry. Likewise, existing and emerging locators are on the road to successfully replicating the Philippines' success, making competition in the industry fiercer, not only in terms of costs, but more importantly, in terms of labor provision and talent management, technology and service innovation, and specialization,� says BPAP senior executive director Gillian Joyce G. Virata.

�This year's Summit reviews the Road Map and its implications on the Philippines' position as the new leader in voice � and how it affects the even faster-growing non-voice segment for all locators,� Virata explains.

According to BPAP executive director for industry affairs Raymond Lacdao, the summit will focus on innovation and value creation. �The industry is moving up the value chain rapidly, and clients expect services providers to be their partners in enhancing value for their customers.�

Lacdao says that for this year, they expect to see around 400 executives from the IT-BPO and shared services sectors of 20 countries to participate in the summit's exhibits, gala dinners, and site tours.

Source:
http://newsbytes.ph

Frost & Sullivan Predicts Dev't for Russian Call Centre Outsourcing

Because of the increased demand for broadband services in Russia, the contact centre outsourcing market focused more on customer care services. This strategy became a factor for the said sector to recover, and develop over the past couple of years.

According to Iwona Petruczynik, a Research Analyst for Frost & Sullivan ICT group, �There is an increasing trend toward the use and deployment of interactive voice response (IVR) and automated service technologies," and adds �It has proven to be a very effective way to reduce cost and enable outsourcing companies to provide more services with the same number of agents.�

On the other hand, majority of consumers are still not comfortable with the new technologies that are being used for customer support operations. But, according to the observations of Frost & Sullivan, IVR is becoming more and more recognized by technology-literate consumers.

The local Russian call centre (customer support) market is also worried that knowledgeable and qualified employees will be scarce in the upcoming years. Petruczynik brought light to the situation. "Market participants have concerns that there will not be enough young employees to fill in-house call centres and a number of companies will be forced to outsource their services. However, this situation may create a conundrum, as the lack of agent talent could result in in-house centres competing with outsourcers for employees."

Another concern is the deficiency or lack of tools needed for the contact centre industry in Russia to grow substantially. The Russian Government strategized and declared a new policy that supports funding and developing contact centre operation sites in Novosibirsk, Nizhny Novgorod, St. Petersburg, and Dubna.

Now, BPO companies in Russia are working on improving their infrastructure for multimedia contacts, so that they will be able to accommodate the high demands in customer support. But, even with the new technological advancements, �human� and voice-based services still lead the outsourcing industry.

Source:
http://www.marketwire.com/

Microbyo Wins at MicroSourcing's 7-a-side Football Cup 2011

The Microbyo (Management and EV) team claimed victory in the recently concluded 7-a-side Football Cup held last March 26 at the Marikina Sports Park football field. This was part of MicroSourcing's Sports Fest for 2011. The winning team received the award worth Php10,000.

Four teams took part in the football cup. The event kicked off with MMP United defeating MMP Ninja at 4-0. In the second game, the combined efforts of players from Management and EV successfully prevented the MMP Trojans from making a goal, and finished the game with a score of 7-0. They also won against MMP United at 4-1. Meanwhile, MMP Ninja redeemed themselves as they beat the Trojans, 4-0.

MMP United turned out to be a strong contender as they defeated the Trojans, but the former did not have enough members to play. They've decided to forfeit the game so in the end, Microbyo came out undefeated, with an overall score of 11.

Microbyo: Team captain Christian Malubag, Mia Espinosa, Chino Perilla, Ryan Del Mendo, Carole Monteloyola, Elvis Garcia, Stephen Pe�a, Dan Katipunan, Adam Jamis, Chris Torio, Abner Salvador, Napoleon Dela Cruz, Melden Benedictos

MMP United: Team captain Dmitri Kurjanov, John Edmonds, Arvin Brian Brotarlo, Michael Rebueno, Mary Anne Castello, Bhav Karnani, Benson Go, Diane Nicdao, Audine Tabangay

MMP Ninja: Team captain Mark Bandillo, Lou Anthony Garcia, Custer Frianeza, Serafin Encia Jr, Paulo Xavier Cabantog, Eliseo Diokno Jr, Peter Indiola, Julius Caamic, Romeo Lao To, Daryll Jann Bumanlag, Ryan Causon, John Ray Garcia, Gerald Villacarlos, Jan Ezra Undag

MMP Trojans: Team captain Peter van Yren, Mark Gubagaras, Lucille de la Cruz, Consuelo Lucero, Alyssa Pabellano, Joannah Aguas, Moses Linsangan, Paolo Jonathan A�ana, Roan Isturis, Michael Aguila, Maricel Salao

Subic Free Port Steps Up Development

The Subic Bay Metropolitan Authority (SBMA), a former US military base in the northern Philippines, is bent on becoming the region's hub for the services and logistics sectors as they accelerate plans on developing priority investment zones in the sprawling free port complex.

�We are very proud of the fact that we have attracted cumulative investments worth more than $7.16 billion and almost 1,500 investment projects as of 2010. Unfortunately, these investments won't bring any economic benefit to us if they do not materialize for lack of space,� explains Armand Arreza, SBMA administrator.

Among the zones to be redeveloped is the Subic Gateway Park, which already hosts several business process outsourcing (BPO) companies. Arreza comments that the Subic Gateway Park is �emerging to be primarily our business process outsourcing (BPO) center within the next few years.'

Arreza says a 16-hectare area adjacent to the Subic Gateway Park will be developed into the new Gateway Business District, which will offer additional office space to the country's expanding BPO industry.

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

PH Congress Oks Data Privacy Bill

The Philippine Congress is set to enact House Bill 4115, or the Data Privacy Act of 2011, as the bill passed its third and final reading this week. The country's booming business process outsourcing (BPO) industry is expected to benefit from the measure, which aims to protect and regulate recording of personal data in information and communication systems in the public and private sectors.

"The bill will also contribute to the promotion and development of electronic commerce in the Philippines and protect the consumers. It will also promote consumer trust and user confidence in electronic commerce through the issuance of clear, transparent, predictable, and enforceable rules to clarify and ensure the protection of personal data in information and communications systems in both the private sector and the government sector," explains Rep. Roman Romulo, author of the bill.

Bill co-author Rep. Susan Yap explained that the state needed to protect the fundamental human right to privacy of communication. "The State recognizes the vital role of information and communications technology in nation building and its inherent obligation to ensure that personal information in information and communications systems in the government and the private sector are secure and protected," the legislator said.

Once signed into law, the bill's provisions on guaranteed security for personal data will be enforced by the Commission on Information and Communications Technology (CICT). Among the responsibilities outlined for the CICT include the selection and recommendation of the most secure technologies available to protect government databases from cyber attacks. The bill also protects the CICT from criminal or civil suits that may happen in the course of the commission's protection of personal data.

The bill prescribes that data controllers and processors must use techniques in protecting personal data against accidental or illegal misuse, destruction, disclosure, alteration, or even illegal processing. At the same time, the bill makes it illegal to share personal data with third parties. Violators will be fined by as much as PHP5 million (USD 115,000), the bill prescribes.

The Business Processing Association of the Philippines (BPAP) had earlier lauded the data privacy bill when it passed second reading last month. �The approval of the Data Privacy Act on second reading sends the right signals not only to existing foreign locators in the business process outsourcing industry but also to the many global players which are just deciding whether to invest in our country and participate in the IT-BPO space,� said Martin Crisostomo, BPAP executive director for external affairs.

A counterpart bill was filed in August of last year at the Philippine Senate by Sen. Miriam Defensor Santiago.

Source:

http://www.pia.gov.ph

Everest Group Projects 15-20% Growth Rate in F&A Outsourcing

Global services advisory and research firm Everest Group says the Finance & Accounting Outsourcing (FAO) will grow by 15-20 percent this year, as total contract values (TCV) of new deals and contract extensions reach an all-time high. This translates to US$4 billion in annual contract value (ACV) for this year.

�Last year saw a strong rebound in multi-process FAO adoption, which we expect to continue this year as buyers look to reduce costs and optimize processes,� said Saurabh Gupta, vice president, Research. He added, however, that clients still opt for a more phased approach than �big-bang solutions�.

Everest report also states that 70-75 percent of total FAO spending in 2010 can be attributed to strong adoption of FAO across different industries including financial services, manufacturing, travel and logistics, and retail. More than half of total FAO spending last year came from the US, but Asia-Pacific posted the fastest growth rate. The report also shows that accounts payable and receivable, as well as general ledger are the most outsourced business processes.

Source:
http://www.businesswire.com

EV Employee Wins Top Prize in New Year, New Gear Referral Program

Samuel Peralta from EV bagged the grand prize in the recently concluded New Year, New Gear Special Employee Referral Program by the Manpower Acquisition Department. Mr. Peralta won a brand new 32-inch LCD TV and a DVD Home Entertainment System.

The New Year, New Gear, which ran from December 24 to February 28, is a special employee referral program that aims to encourage MicroSourcing employees to refer their friends and win exciting prizes.

There were three ways to win or get incentives: an instant cash reward wherein the employee automatically got Php300 cash for every walk-in referral who got hired. The employee also had the option to either claim the cash incentive or accumulate the rewards for points that will enable the employee to choose a prize from the gadget catalog. All employees with successful referrals automatically got a raffle stub per referral for the grand prize reward.

The other employees who got consolation prizes are from the EV project:

LG DVD Player:

Anthony Se�a
Arvin San Juan

USB Flash Drive:

Bob Santillan
Marlon Macaraeg
Aaron Tolentino
Lionel Ambagan
Princeton John Sinag
Kareem Liwag
Michael Cruz
Julie Ann Garcia

According to Back Office Specialist Jenna Arnaiz, the department was able to hire a total of 189 employees (at the time of writing), and 1101 referrals were received through this program.

BPAP CEO Says Outsourcing Industry will grow 20% per Year

According to CEO Oscar Sa�ez of the Business Processing Association of the Philippines (BPAP), an annual growth rate of 20 percent will be seen in the country's outsourcing industry in the next five years. If this happens, business process outsourcing (BPO) revenues will reach US$25 billion by 2016. Last year, the industry generated approximately $9 billion in revenues.

Sa�ez is also optimistic about the non-voice sector of the Philippines, saying that it will grow five times in size, as stated in the Roadmap 2016.

The country has long been known as an ideal destination for voice-based or call center work, and it has already dethroned India in that aspect. The industry is now offering non-voice services in the fields of media, health care, finance, accounting, and supply chain management. The Philippines may be considered as the no. 1 location for outsourced call center processes, but overall, India remains the top destination when it comes to outsourcing and offshoring.

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

PH to Ink Free Trade Deal with EU

The Philippine government expects to improve and enhance business relationships with European Union countries, especially with the United Kingdom (UK), via a proposed EU-Philippines free trade agreement, reports Adrian S. Cristobal Jr., Philippine trade and industry undersecretary for international trade group.

�Our English-speaking business environment, multicultural sensitivities, and strategic location in Asia are attractive for British companies seeking to expand its business in Southeast Asia,� the official says.

The Philippines is already known in the UK as a viable offshoring destination for outsourced work, especially since the country's BPO industry has bagged the Offshoring Destination of the Year Award for the years 2007, 2009, and 2010. The awards were given by UK-based National Outsourcing Association (NOA).

�As we work towards the EU-Philippines FTA, we hope that more business and investment opportunities will open up for both countries,� comments Cristobal.

The Philippines already plays host to some of the UK's biggest companies � HSBC, BP, LogicaCMG, and Shell.

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

PH to Join Indo-ASEAN FTA

The Philippines is about to ratify this month the free trade agreement (FTA) between India and the Association of South East Asian Nations (ASEAN). The FTA, signed in 2009, will lift the tariff on 4,000 items � in effect making the Indo-ASEAN FTA one of the world's biggest free trade areas.

According to Gregory Domingo, the country's trade and industry secretary, �We need to do it when the Congress is not in session. All internal processes are complete, and only the President has to sign it. I am hopeful that it will happen by the end of this month.� The Philippine Congress will be adjourning their session this March 25.

Negotiations are also ongoing for a parallel agreement on services and investment. At present, trade in the services sector between India and ASEAN countries (Cambodia, Brunei, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) stands at $50.34 billion. An FTA could boost this trade to around $70 billion by next year.

Indian commerce and industry Minister Anand Sharma said they expect an agreement on services and investments by the end of the year, expanding the current FTA to a Comprehensive Economic Partnership Agreement. Domingo, on the other hand, said there were still issues. �We are going to try and complete negotiations for the services and investment agreement, and we are already trying to resolve the issues. There is a possibility (of meeting the timeline) but it may be difficult.�

The Philippines, at first, was wary of the domestic effects of a services agreement. However, Domingo explained that better bilateral relations, especially in the services sector, could improve existing economic relationships, considering that major Indian IT companies, such as Tata Consultancy Services, Infosys, Wipro, and Aditya Birla Minacs, have already set up offices in the country.

�Our linkage with India hasn't been that strong and, across the board, trade and investment is under-represented. We need to purse this issue more vigorously. But in the BPO and call-centre sectors, a lot of large Indian players are in the Philippines. This is the first step and we are starting to build it up from there,� Domingo explained.

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

PLDT: Japan Quake did not Disrupt PH BPO Operations

Calls from the Philippines to the United States were not affected by the recent and devastating 8.9- magnitude earthquake in Japan, according to a statement by the Philippines' largest telecommunications firm - Philippine Long Distance Telephone Co. (PLDT).

There were minimal telecommunication problems across Asia after the earthquake, but PLDT was able to re-route their cable system called Asia-America Gateway (AAG) immediately and it is up and running 100% ever since. The AAG is a multimillion dollar project made up of fiber optic cables that go thousands of kilometers - connecting numerous countries in Asia (including the Philippines) to Guam, Hawaii, and the US West Coast.

�To ensure business continuity and vital resiliency particularly for our BPO and Call Center clients who are US-centric, the performance of AAG affirms the immense value of PLDT's $50M investment in this critical cable system to ensure business continuity especially for our Enterprise customers,� said Jovy Hernandez, PLDT VP and Head of Corporate Business Group and SMART Enterprise Sales & Marketing. �We are deeply saddened by this tragedy, especially as PLDT has deep Japanese affiliation due to its relationship with NTT.�

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

Survey Reveals 2011 Major Trends in Dutch IT Outsourcing

Last February 2011, a UK-based nearshore IT outsourcing (ITO) research and advisory company named IT Sourcing Europe conducted an online survey and collected data from approximately 469 Dutch companies from different industries and proportions. The survey displayed that less than half of the total number of participants outsource a small number of IT-related functions and software development nearshore and the larger percentile (55%) conducted the said processes in-house.

This indicates that the Dutch ITO sector has matured and developed this 2011(from 2010), because more and more Dutch companies have now considered outsourcing as a viable platform for software development.

Here are some of the evidences of the said development:

- 10% increase in �0-49K projects
- 4% drop in �50-199K projects
- 2 % drop in �200-499K projects
- 5% drop in �500+K projects

The study also showed that from 2010-2011, Dutch companies have increased their offshore/nearshore - fixed priced projects and operations for software development by 34%. Other services that are starting to be outsourced rigorously are mobile computing, casual games-development, social media, 3D animation, and augmented reality which showed a 32% increase from 2010.

Most of the companies who have opted to outsource these services are small and start-up companies. These would mean that they are more in control of the management processes of the projects and they are trying their very best to foresee ITO agenda even if it is impossible for this kind of setup.

All in all, a 20.4% increase from last year is a strong indication that Dutch ITO buyers are satisfied with outsourcing even if there was a 5.1% increase in unhappy ITO buyers.

Source:
http://pr-usa.net

Aussie Firms Prefer PH for Offshore Work

The Philippines is the top choice of Australian companies for outsourced work, reveals a study released today.

According to the Australian Contact Centre Outsourcing Market Study 2011, although 81% of all Australian outsourcing was still done domestically, 19% of all outsourced work is now being shifted offshore to the Philippines. The study, released by Callcentres.net with the help of Aegis Australia, divided outsourcing into five categories - customer interaction (contact centers), back office processing, IT, finance, and HR.

In all categories, the study showed that the Philippines was on top - 20% of customer interaction, 33% of back office processing, 18% of IT work, and 25% of finance.

�As Australian businesses continue to have a strong focus on reducing operational costs there is continued growth in the outsourcing of business and customer related processes. There will also be an increase in the amount of work that will go off-shore. Service work will continue to be outsourced and off-shored to where it is most economically comparatively advantageous to perform. We call this the Services Shift,� says Dr. Catriona Wallace, director of callcentres.net. �Although only 1 in 5 Australian and New Zealand consumers state that they are happy to speak to an off-shored customer service representative, they may soon have to get used to it.�

According to Denice Pitt, Aegis Australia president, �This trend to the Philippines is consistent from what we are seeing in the market. It is becoming prohibitively expensive for companies to keep all operations in-house because it requires agility, scalability, training and technology that could be better employed elsewhere.�

�The ability to provide blended offshore and onshore solutions such as those in the Philippines enables companies to create efficient outsource programs whilst reducing their costs. By leveraging our global resources we are able to offer our clients complex, yet flexible, tailored outsourcing solutions that deliver scope and high value,� the Aegis executive adds.

Source:
http://www.itwire.com

Survey Says CIOs Optimistic about 2011 Growth

A new survey among chief information officers (CIOs) in the US insurance market released today reveals that US CIOs are more optimistic about growth this year, with most executives relying on targeted ITO (information technology outsourcing) and BPO (business process outsourcing) to sustain growth in their companies.

Celent, a research and consulting firm with a focus on global financial services, released its 8th annual US Insurance CIO Survey, covering 32 executives from the property and casualty sectors of the insurance market.

�[The industry] is cruising along and making some progress,� explains Celent consultant Donald Light, author of the report. Among the report's findings are:

-- SOA (service-oriented architecture) and web services have become industry standards;
-- Specialized reliance on ITO and BPO for infrastructure development and maintenance;
-- Combination of core functions from those supplied internally and from vendors; and
-- Emergence of SaaS (software-as-a-service) and social networking.

Light warns, though, that the report does not offer a complete overview of the insurance industry, but rather a confirmation of what their consultancy firm has gathered from their clients.

Source:
http://www.propertycasualty360.com

HP Launches IT Solutions to Address Problems of PH Firms

IT products and services company Hewlett-Packard (HP) recently introduced its new IT storage solutions designed to solve data problems of companies in the Philippines, especially those in the telecommunications and banking industries, as well as business process outsourcing (BPO).

According to Hans Bayaborda, country manager of HP Philippines' Enterprise Servers, Storage, and Networking (ESSN), the StoreOnce D2D434 BackupSystem and P4800 SAN Solution with SAM/IQ 9.0 Software are HP's answers to the problems brought about by the rapidly increasing volume of data.

Following the �converged infrastructure� concept, these storage solutions also aim to streamline business processes and make them more efficient. "Companies today need an infrastructure that delivers efficiency and simplicity of operations without having to duplicate data that wastes storage capacity," Bayaborda said.

Source:
http://www.philstar.com

PPPs Needed by PH BPO to Stay Competitive

Creating Public Private Partnerships (PPPs) would help the business process outsourcing (BPO) industry to stay competitive and continue to flourish. That is why Senator Edgardo Angara urged the Philippine government to speed up the process of improving ties with the BPO industry and academe to maintain its competitiveness as an ideal outsourcing destination.

Angara mentioned a recent World Bank report saying that the BPO industry of the Philippines will continue to grow, capitalizing on the improved skill level of available manpower.

�The study found that the industry can grow from $9 billion in annual revenues and approximately 500,000 direct employees today to $20 billion and 900,000 employees by 2016 if current conditions are sustained and with a lot of hard work,� said Oscar Sa�ez, CEO of the Business Processing Association of the Philippines (BPAP). However, he noted that the country can see a faster growth rate if the Private Public Partnership with the government will be strengthened. PPPs will pave the way for coordination between the industry and the academe in the goal of improving the number and quality of human resources.

Sa�ez also said that the industry is tapping other fields that require specialized skills. Angara said that if job requirements in areas such as IT, medical, and legal will not be met by highly skilled workers, the industry may �lose its momentum� and fail to establish a strong non-voice or knowledge-based sector.

Source:
http://newsbytes.ph

Indian IT-BPO Firm Reports Hike Despite Weak 2011 Q1

Indian IT and BPO firm MphasiS finally published their verticals and average realization rates after pressure from investors and analysts. The company had stopped publication of these figures, stating that this was due to changes to its organizational structure.

MphasiS had been criticized earlier due to its lack of proper disclosure and transparency about the work they do for HP, which owns 60% stake in the firm. The Indian company earns 69% revenue from HP. Concerns over corporate governance and a weak 2011 quarter ending led to the Indian stock exchange's biggest fall last February 25.

The firm reported a 47.2 percent hike in their ITO services, while their BPO services fell by 17.4 percent.

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

PH BPO Driving Office Leasing Growth

The country's business process outsourcing (BPO) sector is driving growth in the local office leasing market with an estimated average yearly demand for office space of 250,000 square meters.

The growth is expanding to other cities, aside from the large business districts of the metropolis, says Lindsay Orr, chief operating officer of real estate leasing firm JLLL.

�With the growth of the BPO sector, office developments are certain to improve in quality, thanks to strong demand and healthy competition. BPOs are looking for locations that can offer them more: Retail amenities for employees and extras such as security access card and modern intrusion detection systems,� explains Orr.

Among the benefits that attract prospective employees to a BPO company is its strategic location, especially to public transportation, says Philip Ano�uevo, JLLL associate director.

With the continued expansion of the country's BPO sector, real estate developers have to offer more than the standard fare of telecom infrastructure and emergency gensets.

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

Indian IT-BPO �Disappointed� with Union Budget

The IT-BPO industry of India was disappointed with the imposition of the 18.5% Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) and stoppage of tax breaks in the Software Technology Parks of India (STPI), as mentioned by Finance Minister Pranab Mukherjee in his budget speech. These are both negative news for the $76 billion industry of the country, according to IT software industry body National Association of Software and Services Companies (Nasscom).

Small and medium-sized IT firms in STPIs are allowed to have a 10-year tax holiday with the goal of encouraging export-oriented economic growth.

Keshav R. Murugesh, Group CEO of WNS Global Services said government support is crucial to keep the current position of India in the global outsourcing market. He added that other outsourcing destinations such as China and the Philippines can pose a threat to India's BPO advantage as they enjoy support from the government in terms of tax benefits.

Source:
http://www.hindustantimes.com

Survey Says Cloud-based Outsourcing is the Next Big Thing

Cloud computing will take center stage in the world of outsourcing. In a survey conducted by the International Association of Outsourcing Professionals (IAOP), about two-thirds of the outsourcing companies said they intend to pursue cloud computing this year to improve management of customer relations and business operations.

According to Michael Corbett, chairman of IAOP, cloud-based outsourcing is likely to be one of the biggest changes in the industry. �Speed and flexibility are the biggest benefit customers see in these solutions.�

From more than 110,000 IAOP members, 62 percent indicated that they outsource to support their business opportunities in the future, while 80 percent said they plan to have new outsourcing ventures. Survey participants are also optimistic about the growth of this business solution.

Source:
http://www.mis-asia.com

PH BPO Revenues to Reach $25bn in 2016

The business process outsourcing (BPO) industry in the Philippines is likely to grow and post $25 billion in revenues in 2016, according to Maulik Parekh, CEO of BPO firm Spi. This forecast is almost three times higher than the industry's revenues of $9 billion every year.

The Philippines is currently battling it out with countries such as Vietnam and Malaysia. Parekh said higher value services will be needed to beat the competition. He added that from 43 percent last year, non-voice services will grow by 58 percent.

Meanwhile, the Commission on Information and Communications Technology (CICT) is optimistic about the country's BPO industry, even though there is a proposed US bill that will impose taxes on calls received from offshore call centers. In fact, CICT predicts the industry will grow by 26 percent.

CICT Chairman Ray Anthony Roxas-Chua said more than 440,000 Filipinos have entered the BPO workforce since 2010, and demand and job opportunities are expected to increase in the near future.

Source:
http://outsourceportfolio.com

Indian BPOs mulling mergers, acquisitions

The professional clash between pure BPO companies and integrated IT-BPO players is coming to a head, as rumors swirl in the large Indian outsourcing industry of mergers and acquisitions among pure play BPO firms.

The Hindu Business Line interviewed outsourcing experts to share their views about these M&A rumors. �I think it is more about speculation and investment horizon of PEs and less to do with performance of a sector or even integrated versus pure play BPO debate,� comments Sid Pai, managing director of outsourcing consultancy TPI India.

�Theoretically, it is rare for PE (private equity) firms to stay invested in companies for very long, and so naturally, when there is a recovery in valuations they may mull an exit,� Pai explained.

Nikhil Rajpal, partner at Everest Group, shared the same opinion. �I do not think it reflects any preference for an integrated approach at all. From an industry point of view, in companies where PE firms are invested in, there is generally an investment lifecycle. So 5-8 years is, typically, seen as a right maturity time for them to exit or cash out.�

On the other hand, Keshav R. Murugesh, group CEO of WNS, argued that buyers in the market for IT and BPO services were different clients. �We have gone for a vertical approach where we have people with deep domain knowledge, speaking to clients. As opposed to that there are integrated players, predominantly IT players for whom BPO is just a fraction of the business,� he argued.

Source:
www.thehindubusinessline.com

Dell, Gartner Reveal Top Data Center Predictions

In a recent Dell-Gartner media briefing that tackled top data center technologies for this year, it is predicted that most companies will focus on data center efficiency and automation. Enterprises will also improve their IT architecture and data center spending will bounce back.

According to Craig Slattery, director for enterprise platforms and solutions marketing for the Asia-Pacific and Japan of Dell Global B.V. (Singapore), organizations will be gearing towards data center efficiency. �To talk about the virtual era, virtualization is really the inflection point to drive new levels of efficiency. Efficiency in an organization is highly flexible, has low capital expenditure and has been optimized the IT manager. That is how you drive data center efficiency,� he said.

Meanwhile, global IT research firm Gartner said about 40 percent of companies with more than 1000 employees in Asia-Pacific will move towards investing in the cloud.

In 2009, Software-as-a-Service (SaaS) increased by nine percent of the total enterprise applications software spending. It is projected to grow by 14 percent in 2014.

Source:
http://www.philstar.com

Gartner Says KPO Opens Opportunities for Indian BPOs

There are good business opportunities for business process outsourcing (BPO) firms in India from the knowledge process outsourcing (KPO) industry, according to global IT research firm Gartner.

"KPO service offerings is a good opportunity for Indian BPO providers to provide high value services and thereby enabling them to develop higher margin work," said Arup Roy, Gartner's Principal Research Analyst. IT firms in India such as Infosys, TCS, Wipro, and Cognizant provide different KPO services. Based on a recent Gartner research paper, KPO services would involve �a combination of better processing methodology and an intellectually skilled workforce based predominantly in an offshore location�.

The multi-billion dollar KPO industry covers services on legal processes, marketing, as well as banking. In the future, it is estimated that the industry will be worth more than US$15 billion.

Source:
http://economictimes.indiatimes.com

Asian Companies Considering R&D Outsourcing

Companies based in Asia are seriously considering outsourced services for their core competencies in an effort to streamline their operations, reports the Economist Corporate Network (ECN). Industry watchers are warning, though, that these companies should carry out intensive due diligence before making any decision.

The ECN study covers more than 130 companies among different verticals. Companies belonging to the IT sector comprise about 2.4 percent of those surveyed.

Although the report indicated that companies were least likely to outsource product development and product design, companies studying the advantages of R&D outsourcing rival those who are also considering the outsourcing of human resource administration, finance and accounting.

ECN provides members with in-depth studies on business and economic trends. Study author Ross O'Brien, director of ECN Hong Kong, says that most of their large multinational clients �deploy in-region R&D to help them create a virtuous cycle.�

�[A] locally-developed product, which responds to application needs, form factors and price-points of Asian markets, is increasingly needed as tech companies depend on sales in Asia to shore up their global growth objectives,� O'Brien explains.

Rolf Jester, Gartner's Distinguished Analyst and Asia-Pacific vice president for IT services, comments that outsourcing R&D may not be for any company. �Each company competes on different characteristics. R&D and the ability to truly design innovative things may or may not be one of those characteristics, and each company needs to make that decision,� opines Jester.

Source:
www.zdnetasia.com

Data Privacy Bill to Benefit PH BPO Sector

In a legislative move to further support the growing BPO industry in the country, the Philippine Congress has approved on its second reading the proposed Data Privacy Act of 2011.

The bill, �An Act Protecting Individual Personal Data in Information and Communications Systems in the Government and the Private Sector, Providing Penalties in Violation Thereof�, will cover the governance and management of private individual data collected by the government and private companies such as banking institutions and credit card facilities. The bill states that personal data should only be collected for legitimate reasons, and these must be determined first before any collection is undertaken. The government and the private sector will have to erase the collected personal data after processing.

The bill mandates that data controllers and processors must employ measures in safeguarding personal data against accidental or illegal misuse, destruction, disclosure, alteration, or even illegal processing. Also, the bill makes it illegal to share personal data with third parties. Companies that fail to safeguard personal data will be fined by as much as PHP5 million (USD 115,000), the bill states.

�The approval of the Data Privacy Act on second reading sends the right signals not only to existing foreign locators in the business process outsourcing industry but also to the many global players which are just deciding whether to invest in our country and participate in the IT-BPO space,� commented Martin Crisostomo, executive director for external affairs of the Business Processing Association of the Philippines (BPAP).

The bill was filed by Representative Roman Romulo in July of last year. A counterpart bill in the Philippine Senate was filed during the same time.

Source:
http://www.bworldonline.com

Ayala, UP Ink Contract to Build P3bn University Town

Realty firm Ayala Land and the University of the Philippines (UP) signed a contract of lease to build a �University Town�, a hub that combines BPO offices and academic support facilities. Ayala will invest about P3 billion in the development of the 7.4-hectare property, also known as the UPIS campus, located along Katipunan Avenue, Quezon City.

According to Ayala Land, the University Town Project will consist of �mixed-use retail and office components, with firm emphasis on academic support facilities. This will be the first of its kind in the country to reflect a strong collaboration between the academe and the industry."

The 25-year contract can be renewed for another 25 years through a mutual agreement. Ayala added that construction of the project will start this year.

Source:
http://www.gmanews.tv

Valentine's Day at MicroSourcing

I love Valentine's! MicroSourcing celebrated the day of hearts last February 11 at the MS Caf�.

The event was highlighted by a dating game. For the first round, searcher Beth Tamayo from HCSDG got to know the participants namely Dan Oliver Calpatura (CSG), Paulo Cabantog (MMP), and Custer Frianeza (MMP) through a series of questions. In the end, Ms. Tamayo chose Mr. Calpatura.

Meanwhile, it turned out that searcher Stephen Paolo Pe�a (CSG) was more compatible with Geoanna Corneby (Business Development Dept.) than Regine Nario (MMP) or Karen Paraiso (Manpower Acquisition Dept.).

Each pair received a gift certificate worth P2500 from Old Vine Grille, Eastwood City.

Aside from the dating game, a booth was set up by HCSDG for those who want to buy flowers for their loved ones. There was also a message booth wherein employees wrote messages of love and HCSDG personnel delivered them free of charge.

PH Exports Break $50B Mark

Exports reached a three-year high last year, relying on an increasing global demand for electronic products, apparel, coconut oil, woodcraft, furniture, and metal components.

The country's export receipts increased by 33.7 percent, for a total value of $51.39 billion, the National Statistics Office reported recently. This increase exceeds the government-set target of 15 percent for exports.

According to Sergio Ortiz-Luis, president of the Philippine Exporters Confederation, Inc. (Philexport), the value of exports would be higher if the revenues generated from the business process outsourcing (BPO) and services sectors were added.

A strengthening global economy pumped up demand for Philippine exports, with electronic exports increasing by 40.11 percent from 2009, bringing in a total value of $31.07 billion. Most products were shipped to Japan, the United States, and Singapore. Of the three countries, Japan was the Philippines' top importer for 2010, buying Filipino-made products worth $7.8 billion.

Source:
www.philstar.com

PH Eyes P3.8T Investments, $117B Exports

The Philippine government is expecting a cumulative investment of P3.8 trillion over the next six years, with exports reaching $117 billion.

According to Philippine Trade and Industry Secretary Gregory L. Domingo, the said growth targets would be due to improved governance and the implementation of policies that sustain economic growth.

�The Aquino Administration's thrust to improve governance, the implementation of right policies coupled with a strong private sector will provide impetus for the attainment of for high sustained economic growth,� the cabinet official explained.

Domingo, speaking at yesterday's year-end briefing of economic managers, enumerated the following sectors: construction, agro-industry, electronics and semiconductors, tourism, and business process outsourcing (BPO) - as drivers of economic growth for investments and exports.

�But we would like to find a new BPO, meaning a new sunrise industry one that would be able to create half a million or more jobs,� said Domingo. �Perhaps, we can have coconut-based industry as the next sunrise industry also.�

The cabinet official said the BPO industry was very vital in improving the net services trade balance.

The projected P3.8 trillion would represent the total investments generated by the government's investment promotion agencies by the end of Philippine President Benigno Aquino III's term in 2016.

Source:
www.mb.com.ph

Cebu to Train Scholars to Address Talent Shortage in BPO, KPO

Cebu City intends to give 5000 college scholars free training to help address shortage of highly skilled workers who are needed in the knowledge process outsourcing (KPO) sector.

The local government will offer free classes on English proficiency to scholars taking a four-year course to help them qualify for call center jobs. They will also help both BPO and KPO firms in finding highly skilled employees for their operations.

This initiative transpired after a recent study by Tholons, an advisory company on global outsourcing and investments, revealed that shortage of qualified talent remains a major challenge faced by BPO and KPO companies.

Cebu Investment and Promotions Center (CIPC) Managing Director Joel Mari Yu said they will continue to promote the province as an ideal location for call center work, though they need to work on increasing the pool of workers and improving their skills to meet the demand of KPO firms such as Lexmark, IBM, and JP Morgan and Chase. �They need people with special skills and a very much higher level of knowledge, so we need to build capability in this area,� Yu said.

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

Indian IT-BPO Exports to Reach $175bn by 2020

The National Association of Software and Services Companies (Nasscom), India's software industry body, predicts that revenues in the country's IT-BPO exports will reach $175 billion by the end of 2020.

Opportunities outside core markets, verticals, and customers are expected to drive 80 percent of the incremental growth. �The new mantra is to innovate, redesign and reinvent. We have an opportunity of tapping $175 billion in export revenues by 2020. The only constraint to tap this opportunity is not the demand but our ability to address it,� said Nasscom President Som Mittal.

Last year, export revenues reached $59 billion and it is estimated that the industry had grown by 19 percent this financial year.

India gets the lion's share of the global sourcing market - about 55 percent in 2010. Mittal said that amidst the challenges, India's success can be attributed to its position in the industry as a global outsourcing hub.

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

A.T.Kearney: PH BPO Ranking Falls to No. 9

The Philippines dropped two places from no. 7 to no. 9 in the Global Services Location Index (GSLI) for 2011 by management consulting firm A.T. Kearney. GSLI lists down the countries which are attractive offshore outsourcing destinations.

Be that as it may, A.T. Kearney said the country remains a key outsourcing player with workforce consisting of about 500,000 workers and $7.2 billion revenues generated in 2009. It is still strong when it comes to call center work. �The Philippines, an early entrant into the service sector, is also relatively well-rounded. It has had more than a decade to hone its capabilities, and by now has moved into ITO [information technology outsourcing] from being primarily a contact-center hub.�

India got the top spot, followed by China and Malaysia, mainly for talent availability and low costs in these destinations. Other countries which made it to the top 10 are Egypt, Indonesia, Mexico, Thailand, Vietnam, and Chile.

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

Nasscom: Egypt Turmoil May Affect IT Sector

The current turmoil happening in Egypt may affect the global IT services sector, making for a conservative growth for 2011, says the National Association of Software and Services Companies (Nasscom) of India.

Coupled with the prevailing debt problems of European countries, Nasscomm has projected the revenue of the Indian IT industry to grow by 16 to 18 percent only � a nearly flat estimate compared to last year's 18.7 percent.

"There are some sectors and geographies where uncertainty exists. We think this estimate is realistic," explains Nasscom president Som Mittal.

On the other hand, Indian BPO giant Infosys Technologies Ltd. was more pragmatic about the events happening in North Africa. "There could be a domino effect, clients could stop spending, which could slow down information technology (IT) services," comments Infosys CEO S. Gopalakrishnan.

Despite the crises, Nasscom is still positive about industry growth. Companies have added 240,000 new jobs, with more deals on the pipeline. �India's share in the global sourcing has gone up from 51% in 2009 to 55% in 2010, which is a good sign,� said Mittal.

The Nasscom president says that despite the emergence of the Philippines as the leader in the voice-BPO market, the slowdown of the Indian BPO industry affected the growth of the Indian IT sector.

Source:
www.tradingmarkets.com

PH Growth Accelerates by 7.3%

The last quarter of 2010 saw the Philippine economy accelerating to a 7.3 percent growth � the fastest since 1976, reports the National Statistical Coordination Board.

Economists, surveyed earlier by Bloomberg News, had forecasted a median growth of about 6 percent.

�This is an extension of the optimism that has followed the new government,� says Radhika Rao, an economist with Singapore-based Forecast Pte. �The central bank has managed to maintain benign inflation and that has contributed to better spending trends and positive consumption. Remittances haven't taken a hit and these things contribute to strong domestic demand.�

In November, the peso climbed to its highest value in two years, but has since decreased after the central bank intervened by relaxing rules on foreign-exchange outflows and by capping the dollar supply in the market.

�Unless the government can carry out a more aggressive stimulus program and encourage the private sector to invest, it will be a big challenge to replicate the performance last year,� comments Emilio Neri, economist at the Bank of the Philippine Islands, one of the country's oldest and biggest banks.

Philippine president Benigno Aquino III has extended the tenure of the incumbent central bank governor, with Aquino saying that he had �confidence� in the governor. The central bank has managed to keep inflation below 5 percent for the past two years.

Source:
www.bloomberg.com

Indian IT-BPO Firms Facing Major Employee Attrition

Employee retention becomes a key challenge for IT and BPO firms in India, as the industry faces large-scale employee attrition especially in key positions within the organization.

Fidelity National Financial India Country Head Sameer Dhanarajani said "the macro effect is balanced by one company losing its critical staff to another and a company getting critical resources in return." The challenge is to keep them aligned to the organization. Moreover, a new employee, regardless of his or her place in the corporate ladder, comes with hiring, training, and maintenance costs. "There has been an increased investment to retain the right talent and to keep the customer operations smooth,� Dhanarajani said.

He added that there has been an increase in demand for outsourcing as companies recover from the financial turmoil, cost of operations, and rising unemployment rates. While India remains the top location of choice, other outsourcing destinations such as the Philippines, China, and Vietnam pose a threat.

Source:
http://economictimes.indiatimes.com

Eastwood City Cyberpark Launches New BPO Building

Eastwood City Cyberpark has recently launched a new building, Global One Center, to help the business process outsourcing (BPO) industry in the country reach its $11 billion revenue target for 2011.

The cyberpark, located in bustling Quezon City, is home to several BPO service providers.

The new Global One Center is a 21-storey building that has a total floor area of 32,000 square meters, says Jericho Go, vice president for business development of Megaworld Corporation, the company that owns and develops Eastwood City Cyberpark. �More than inaugurating new buildings, we are delighted that Megaworld, together with our BPO partners and locators, is able to help thousands of Filipinos to not just get jobs, but gain long-term careers in the BPO sector,� Go explains.

According to 2009 data from the Philippine Economic zone Authority, outsourcing and offshoring locators based in Eastwood City Cyberpark have brought in $348.31 million - a 7.8% hike from 2008. With Global One Center being the Cyberpark's 10th BPO building, it is estimated that people working at Eastwood City will number to about 35,000.

Source:
www.philstar.com

New Grads Urged to Work in Local Outsourcing Firms

After seeing a decrease in the number of job applicants in local outsourcing companies, the business process outsourcing (BPO) industry of Dumaguete City, Negros Oriental urged new graduates to apply in local firms instead of finding work in major locations such as Metro Manila or Cebu.

The BPO industry of the province has launched a campaign to cite the advantages of working locally. Suzanne Lu-Bascara of Spi Global based in Bacong town said while wages are higher in Manila or Cebu, it is still better to work in the province, considering that a BPO employee working in Manila would have to spend a big part of his/her salary on rent, food, and transportation.

It is estimated that the province needs more than 2000 full-time BPO employees this year. Dana Fortunato of BPO firm Student Universe said they need to get workers locally instead of looking for manpower outside the province. She added that the industry as well as local government units and schools must work together to meet the manpower needs of the province this year.

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

PH BPO Industry Growth to Reach 30% this Year

SPi Global president and CEO Malik Parekh predicts that the Philippine business process outsourcing (BPO) industry will grow by 30 percent this year. Figures also reveal that the industry shows a faster growth rate compared to others around the world.

More than 500,000 workers are currently employed in the country's BPO industry. Parekh predicts that the workforce will stand at 1.3 million employees by 2016. This can be attributed to the emergence of new markets in the Asia-Pacific region and Western Europe.

BPO companies in the Philippines reported that more than half (58 percent) of their revenues come from non-voice services, and 42 percent come from voice-based work.

The industry is continuously growing, but Parekh said Filipinos should work on further improving their skills to meet client requirements, especially those in the non-voice sector.

Parekh also predicted that global BPO revenues will reach US$124 billion by 2016.

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