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October 2012 | Outsourcing Blog | BPO Industry Updates and Articles

Things to Consider Before your Outsourcing Contract Expires

by: Sarah Joson

Wednesday, October 31, 2012 | Comments (0)

Category: Outsourcing News

Review your Existing Outsourcing Contract

Every outsourcing relationship is bound to be renewed, if not terminated. Several things can happen during a renewal of an outsourcing contract. This could mean new providers, ones that are not familiar with the operation, will be undertaking what has been left by their predecessors. Another is miscommunication with old management and having new providers will result to failure and additional costs as the transition will take a toll on the budget and time of the internal management.

An article at info.ISG-One.com tackles five ways companies can circumvent problems in case the current provider is not inclined to renew the contract.

Get a head start.
Reinforce your internal competency before a contract expires, so in case something goes wrong, your organization is already built around finance and legal experts, as well as important clients. This is especially significant to companies with several delivery centers across the globe. In other words, formulate a contingency plan.

Closely observe evolution of the industry.
Create a list of critical factors that you would like to be covered in your new service level agreement. Observe if your previous business model still complies with the updates and current industry standards in terms of technological capacity, delivery models that are available, and rates. Focusing too much on the price might derail the main goal of the pending operation.

Review your sourcing policies.
Service providers are known to have several supplier contacts. Do some research if it’s more affordable and convenient to go straight to the supplier or if it is better to have the provider handle the sourcing processes.
See what is out there.
Businesses can typically learn from new providers by issuing a request for proposal (RFP). You will be able to see outsourcing in a new perspective as the providers with whom you haven’t worked before will bring new ideas to the table.

Show your company’s worth.
Large contracts that are well above the US$100 million bracket can be more valuable if properly presented to your account executive’s organization. This can help you retain certain strengths as well as keep business continuity if the provider decides to stay.

Why Choose the Philippines as an Outsourcing Destination

by: Sarah Joson

Tuesday, October 30, 2012 | Comments (0)

Category: Outsourcing News

Why outsourcing to the Philippines is good for your business

The Philippines is currently one of the major players in the global outsourcing industry and is the current leader for voice-based processes. Here are several reasons many companies from all over the world choose to outsource business processes to the Philippines.

Why Outsource to the Philippines

What’s in Store for the Tech Industry in 2013?

by: Sarah Joson

Tuesday, October 30, 2012 | Comments (0)

Category: Outsourcing News

With the rapidly changing information technology environment, renowned technology and research consultancy firm Gartner shares its top 10 IT trends for 2013 at ComputerWorld.co.nz

Tech industry in 2013

The list includes specific segments that are seen to influence not only the internal processes of an organization, but the behaviour of the market as well.

1) Mobile devices showing strong activity 
Although mobile devices have nearly taken over IT departments, Gartner says it will not completely wipe out the use of PCs as not all divisions are required to use mobile applications, for now. As other platforms such as the Apple-based medium and Android arise, Windows will no longer be the only platform for companies.

According to an expert, in 2015, media tablets will soon catch up with laptop shipments, and Windows will be the last, lagging behind Apple and Android.

2) The evolution of HTML5
Native apps will still proliferate due to the recent developments in HTML5.

3) Users will be more inclined to use the cloud.
Because the uses and capabilities of the cloud are endless, more and more users will be inclined to store data and get information using the cloud and it will be long before a company or application surpasses it.

4) Everything will be connected through the internet.
Things will be made easier as processes will be more digitized and interconnected. It will be the dawn of the simplification of things.

5) Cloud services will also evolve.
With the continuous adoption of the cloud, more services will be designed for its usage, and of course, security.

6) Big data in the big picture
Big data projects are now more manageable and more ideal for companies since servers and CPUs have become more affordable.

7) More accurate metrics
Metrics like analytics will be used more to map out future strategies and point out which areas need to be improved based on past projects. 

8) Faster in-memory computing
Information can be stored on a computer for a specific purpose and this is called in-memory computing.  It will be more important in the coming years as users will be looking for real-time answers to their questions and needs.
9) Virtual appliances
Like everything that is becoming digitized, virtual appliances will gain more traction to respond to the increasing demand for virtual applications but not necessarily take over physical appliances. 

10) Apps for enterprises
Companies will need to purchase apps that are specifically made for large companies. They would have to acquire licenses to maximize the potential of the app in an enterprise setting. IT departments will be the ones that will scout for app developers and of course, this is part of the sales talk.

The Challenges in the Philippine Animation Industry

by: Sarah Joson

Wednesday, October 24, 2012 | Comments (0)

Category: Outsourcing News

An article at ph.news.Yahoo.com points out some of the country’s challenges in developing the local animation and gaming industry. 

The article highlights a report from MarketsandMarkets, an international research firm. The report predicts that the global animation and gaming market will accrue a compound annual growth rate (CAGR) of 12.94 percent from 2010 to 2016, which translates to $242.93 billion.

Animation industry an emerging market

According to the Business Processing Association of the Philippines (BPAP), animation is one of the emerging markets that the Philippine information technology-business process outsourcing (IT-BPO) industry should look into, apart from the more popular call center industry. Revenues amounting to $142 million were posted by the local animation sector during 2011, according to the Department of Trade and Industry (DTI).
In retrospect, animation in the Philippines began in the 1980s and proliferated as foreign organizations based in Canada, Australia, and the US started hiring Filipino artists who eventually became animators. This resulted to a talent shortage in the country, one of the key challenges that local organizations are currently trying to solve. Also, the Philippines lacks the necessary technology to progress in the field, unlike its Asian counterparts such as Thailand, China, Singapore, and Malaysia.

Additional Programs to Reinforce Talent Supply
The Animation Council of the Philippines, Inc. (ACPI) and BPAP are forming partnerships with several government bodies and educational organizations to improve the talent supply. Fifty multinational companies are affiliates of ACPI, with nearly 10,000 employees who work as Flash animators and web designers, graphic and art designers, mobile application creators, full 3D and 2D animators, etc.

The Technical Education and Skills Development Authority (TESDA) and ACPI designed a curriculum for the TESDA’s Training for Work Program which provides 2D and 3D animation courses for trainers.

Another program was launched in 2007. Animahinasyon is a festival that showcases original animation creations from students and professionals. Dimaranan said the entries with original content are promoted in other countries and she hopes that these will soon be shown on TV.

The Industry Needs Support
It is obvious that budget is an issue for the sector to grow. For instance, Dimaranan said the funding they get from different organizations, such as the P3 million from the National Commission for Culture and the Arts and the Film Development Council of the Philippines, can only create a trailer and not an entire film. She is hopeful that other firms and agencies will provide funds to complete an animated film.

Dimaranan noted that organizations perceive animated content creation as too risky and would cost a lot of money. But if done properly, it could be dubbed in different languages and marketed to foreign companies.

Dimaranan is hopeful for the Philippine animation industry and is confident that one day, the country will be a renowned destination for animation.

Benefits of Outsourcing Community Management

by: Sarah Joson

Tuesday, October 23, 2012 | Comments (0)

Category: Outsourcing News

Community Management Outsourcing

Having a strategy for social media and other community channels is the newest and one the most relevant ways of marketing services and products, as well as getting in touch with consumers.

Since it is relatively new, some executives are doubtful as they are not familiar with the ins and outs of the process. Some may feel that it is not relevant. So how can businesses go about using social media for the benefit of their organizations? There are several options that, if used properly, will help a business grow. One of which is outsourcing community management to a service provider.

Here are the benefits of outsourcing community management according to EConsultancy.com:   

1. Community management service providers will help you focus on your goal.
Handling a social media account such as Twitter or Facebook is easy, but managing profiles for businesses is far different from handling personal profiles. Businesses usually do not have enough time to manage their profiles. With outsourcing, that’s one less thing to worry about and businesses can concentrate on their core processes.

Outsourcing community management to service providers will enable businesses to make the most out of online platforms. Providers can take on the tasks and alleviate the pressure from the employees who also work as community managers for companies.

2. Community managers are aware of the social media trends.

Community managers can be considered as innovators in the online marketing segment.  Since they have more hands-on experience, they can bring a wider perspective to the table in terms of which campaigns are effective.

3. Community managers can be considered as points of contact.
Since there are several online media channels that can be utilized by a company, they can assign a specific community manager (and a team) to properly manage all the company’s profiles. In this way, the campaign in each profile will coincide with the overall strategy.

Global Outsourcing Market Posts Second-Highest Q3

by: Sarah Joson

Thursday, October 18, 2012 | Comments (0)

Category: Outsourcing News

Second Highest Q3 for the Global Outsourcing Market

Technology research and consultancy firm Information Services Group (ISG) recently released the 3Q12 Global TPI Index report of the global outsourcing market in an article at SacBee.com.

The report analyzed deals with annual contract value (ACV) of $5 million and above, reaching a total of $4.8 billion. This would be the second-highest Q3 total, but it was also found out that the same quarter fell six percent from Q3 2011, and 10 percent from this year’s second quarter. 

A three-percent growth in ACV was identified during 2012’s Q1 to Q3, which now has a total of $14.8 billion. The key drivers for the past three quarters are the active outsourcing contracts in the Asia-Pacific, more mega deals found in emerging markets, and the ongoing increase of business process outsourcing (BPO) deals worldwide. Moreover, contracts with an ACV of $100 million and above this year have already surpassed the total value of the mega deals in 2011.
According to ISG Partner & President for Research and Managed Services John Keppel, this is an upset compared to Q2’s performance this year, but he said it is a known fact that Q3s are usually the weakest. Amidst the decline in figures, he said the global market is gradually becoming more familiarized with other important segments. He also expected that the market will surpass 2011’s $20 billion in ACV, through the larger deals that are waiting to be closed.

The BPO segment’s ACV in 3Q12, which has a total of $1.6 billion, is 12 percent higher than same period of last year. However, it fell 32 percent from this year’s Q2. IT outsourcing (ITO), on the other hand, posted $3.2 billion in ACV, which is 13 percent lower in terms of year-over-year. However, it increased 8 percent from Q2.

The Asia-Pacific region is gaining momentum in 2012 among other emerging markets. In Q3, it posted an ACV of almost $700 million. It declined 51 percent sequentially but increased 55 percent year-over-year. The ACV of the region from Q1 to Q3 reached $2.5 billion, a 72 percent increase over 2011.

Meanwhile, the US posted $1.6 billion in total ACV for Q3, an 11 percent decline from Q3 2011 and eight percent from Q2. The EMEA region (Europe, Middle East, and Africa) posted $2.5 billion of ACV, 12 percent lower from Q3 2011 and a 14-percent increase from Q2.

Ways to Secure Company Data

by: Sarah Joson

Tuesday, October 16, 2012 | Comments (0)

Category: Outsourcing News

Some organizations are able to map out their strategies by calculating the future, using modern technology. But some events are highly unpredictable which, in some cases, leave businesses with arduous problems. So what do these organizations do? They plan and learn from the experiences of others.

On the other hand, it was found out that most of the technical problems seen in companies are not because of natural disasters and unforeseen events, but due to negligence of the managers. This leads to data loss, hardware failure, and other technical glitches.

Ways to secure company data

In a post at info.ISG-One.com, Cindy LaChapelle shares five things that can help companies update and reinforce backup and recovery solution strategies.

1) Perform an annual review of the company’s backup strategies.
Everything is constantly evolving. The industry, competitors, consumer behavior, among others, which is why businesses should update their data protection strategies as the competition is getting tighter. This is will also help avoid any problems in the future as companies will come equipped with the necessary tools in case a problem comes up.

2) Create a clear backup plan.
When it comes to data, a more important point to look at is the ability of the system to recover lost files or the data considered as collateral damage.  Having a clear backup plan also gives businesses a leg up in case a disaster happens.

3) Do an audit so that you could easily point out areas that need improvement.
One thing managers should try to avoid is the bottleneck in the system. Try to identify which areas are highly susceptible to bottlenecks as these can lead to more problems in the future.

4) Delete unnecessary files.
Older files can become corrupted or can simply become outdated. These items take up space and in some cases, attention. It is ideal to sort all data and delete the ones that you no longer need and update/restore the ones that are vital to the business, then store them properly.

5) Look for platforms that can help optimize the operation.
Look into several options for storage that can work as contingency plans. Moreover, look for the ones that can be easily adapted to cloud-based solutions. These will cut the processing time and will allow easier access.

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