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Outsourcing News for July 2009 | MicroSourcing

Supplying English Skills to Potential BPO Workers in the Philippines

As a major outsourcing and offshoring destination and with the increasing number of job opportunities in the business process outsourcing (BPO) sector, the Philippines is initiating training programs to further improve the English language skills of potential BPO workers.

The Technical Education and Skills Development Authority (TESDA) and the Business Processing Association of the Philippines (BPAP) created Advanced English Proficiency Program which will help students to speak English more fluently. Other programs include IBM's Service, Science, Management and Engineering (SSME), Oracle Academy, and Cisco Networking Academy. These training programs also aim to equip students with the skills that IT companies need.



Pres. Arroyo Urges Lawmakers to Pass DICT Bill

by: Karen Cayamanda

Wednesday, July 29, 2009 | Outsourcing News | Comments (0)

President Urges Congress to pass DICT Bill

In Pres. Gloria Arroyo's State of the Nation Address (SONA) last Monday, July 27, she urged the Congress to pass the bill regarding the creation of the Department of Information and Communications Technology (DICT), as she highlighted the role of the business process outsourcing (BPO) sector in our economy.

Pres. Arroyo pointed out that the BPO sector is resilient enough to bring wealth to the economy amidst the global economic downturn. "With earnings of US$6 billion and employment of 600,000, the BPO phenomenon speaks eloquently of our competitiveness and productivity," she said.

At present, the Commission on Information and Communications Technology (CICT) is the coordinating body which is responsible for the management and implementation of ICT-related initiatives of the government. However, Oscar Sañez, Chief Executive of Business Processing Association of the Philippines (BPAP), said that having a separate department is necessary in implementing national strategic plans in terms of infrastructure and IT education.


Video Game outsourcing in the Philippines

In an effort to claim a larger share of the global game development outsourcing market, the Game Development Association of the Philippines (GDAP) has established a network of foreign developers and clients. Research shows that game outsourcing is set to grow to $1.1 billion this year and $2.5 billion by 2010. Outsourcing will then represent 40% of the total budget for video game creation.

Collision Studios, an award winning US game development firm, is among several companies outsourcing to Filipino service providers. In a forum on trends in the video game industry, Philippe Erwin, Collision CEO, commended the visual arts skills of the Filipinos and cited their English fluency as a major advantage quoting: “It's easier to deal with someone who can also speak the language.”

Darrell Benvenuto, president of game development services provider, Digital Octane Inc., predicts that the Philippines is poised to capitalize on the rapidly growing demand for outsourcing in the industry with major game developers already outsourcing to neighboring countries Korea, India and China.


Eastwood Cyberpark: First BPO Hub in the philippines

The Philippine Economic Zone Authority (Peza) calculates that, having produced $323.17 million in services export revenues in 2008, Eastwood City Cyberpark is still the number one IT employer and export-revenue generator in the country. Among 87 registered IT zones, the Cyberpark ranked far ahead of its competitors with the second and third ranked zones earning $216 milion and $173.3 million respectively.

Upon its development by Megaworld Corp. in late 1999, the Eastwood Cyberpark became the first Business Process Outsourcing (BPO) park in the country.

“We are proud that the Eastwood City Cyberpark contributed much-needed dollar earnings to help steady the Philippine economy in the midst of the global recession,” said Megaworld vice president for business development, Jericho Go.

Eastwood housed a personnel average of 13,774 last year – 10% higher than 2007. It currently has the highest total salaries paid at P5.054 billion which is 15% higher than 2007.

Go attributes Eastwood's success to: its location, the amount of BPO buildings and locators (over 60 ) as well as the lifestyle that only Eastwood City can offer.


India Remains as Top Outsourcing Destination

According to the 2009 Global Services Location Index (GSLI) of AT Kearney, a global management consultancy, India is still the world's leading location of choice for companies which consider offshoring their non-core business processes.

With its low costs of labor, large pool of skilled workers, and attractive business environment, India has secured its place at the top of the list.

China and Malaysia claimed the second and third spots, respectively. Other key outsourcing players which made it to the top 10 are Thailand, Indonesia, Egypt, the Philippines, Chile, Jordan, and Vietnam.

Conducted by AT Kearney and established in 2004, the GSLI is an analysis on the top 50 countries which provide outsourcing services.


The program committee of The Outsourcing World Summit 2010 is now accepting proposals for presentations which will be delivered in the said event.

Proposed presentation can be a case study

With the event's theme “Using Outsourcing to Emerge as a Leader in the New Global Economy”, the proposed presentation must showcase new business insights and approaches. It should present solutions to the problems that businesses currently face. It can also be a case study about actual experiences and lessons learned.

Both International Association of Outsourcing Professionals (IAOP) members and non-members can submit their proposals to https://www.outsourcingprofessional.org on or before July 10, 2009.

Presented by IAOP together with FORTUNE® Custom Projects , The Outsourcing World Summit 2010 will be held at the Disney's Yacht & Beach Club Convention Center in Lake Buena Vista, Florida on February 15-17.

Philippine Economy Stands Strong

Industry players who attended the recently concluded State of the BPO Industry Mid-Year Report Conference agreed that the outsourcing industry in the Philippines continues to see growth despite the current global economic downturn. The said conference was held in Makati City and was organized by the Business Processing Association of the Philippines (BPAP).

While the impact of the financial crisis may have slightly affected the growth of the outsourcing industry, the Philippines has secured its place in the world of outsourcing as an ideal BPO destination.

According to Neil Elias, country manager of Logica, an outsourcing firm, the fourth quarter of last year was the best quarter for Philippine outsourcing. There was also an increase in the recruitment rate for skilled Filipino workers - from 4-5% to 9-10%.