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Outsourcing News for March 2009 | MicroSourcing


Prices of BPO Services to Drop 20% in 2010

by: Karen Cayamanda

Wednesday, March 25, 2009 | Outsourcing News | Comments (0)

Decline in outsourcing prices

According to Gartner, a research and advisory company, the outsourcing prices will decline between five and 20 percent in 2010. This is due to the increased competition from vendors, economic downturn, budget constraints, and overall “market consciousness”.

In North America and Europe, prices for data center services would drop between five and 15 percent in 2010, while the prices for help desk services would fall between five and 10 percent.

This may be good news for those companies which intend to outsource some of their business operations, but according to Gartner, low prices of outsourced services will have an impact on the quality of service and business relations of buyers and vendors.


200% Growth in BPO Jobs Predicted for the Philippines

In these tough times when outsourcing becomes an ideal solution for companies as a cost-cutting approach and to stay afloat, the country's business process outsourcing (BPO) sector sees an employment growth rate of 200%. This is based on an online survey conducted by the Business Process Association of the Philippines (BPAP).

According to Gigi Virata, BPAP research director, 95 percent of companies which participated in the survey expect employment growth, and half of the respondents expect a 15 percent increase in their workforce requirements. Thirty-three percent of companies with 5000-10000 employees expect an increase of 11-15 percent in employment rate, while companies with 1000-15000 employees as well as small and medium-sized businesses expect the number of jobs to increase by 6-10 percent.