by: Karen Cayamanda
Many IT executives and network administrators felt that outsourcing technology jobs to offshore locations poses risk on network security. This finding is based on a recent survey commissioned by secure file transfer solutions provider VanDyke Software and conducted by Amplitude Research, an independent mail and online survey company.
Of the 350 respondents, 69% said that outsourcing tech jobs offshore has a negative impact on network security. Nine percent (9%) said it has a positive impact while 22% felt that outsourcing has no impact.
"The survey results indicate there is sentiment, as well as initial data, that suggests outsourcing tech jobs offshore is a matter that needs greater scrutiny in the area of network security," said Jeff Van Dyke, VanDyke Software's president and founder.
As India and China registered outsourcing revenues worth US$48 billion and US$28 billion respectively, and the Philippines with an estimated US$7.3 billion by the end of 2009, these countries are the top players in the global outsourcing scene. This is according to a report made by XMG Global, a research firm in Canada.
The world's total revenue for this year is poised to reach US$373 billion. Vincent Altez, XMG Global senior analyst, said that India's market share will reach 44.8 percent, while China will account for 25.9 percent. The Philippines is considered as the third best BPO destination, and the country is expected to generate 6.9 percent of the global outsourcing revenue.
"We are seeing new levels of normalcy in which the recession has provided the opportunity to rationalize, and shift work to other offshore destinations other than India,” Altez said.
The JFC (Joint Foreign Chambers) along with Philippine Government agencies, are in the process of producing a road map that will maximize the growth of key sectors in the Philippines as the global economy shows signs of recovery.
Henry Schumacher, executive vice president of the European Chamber of Commerce in the Philippines, stressed the importance of identifying “who is going to do what and when” in areas that the Philippines has a significant advantage over foreign competitors. These areas are agribusiness, creative industries, information technology-business process outsourcing (IT-BPO), tourism and wellness, infrastructure, manufacturing, and logistics, and mining.
The month-long meetings, which began on September 15, will conclude on October 15. In ensuring the key sectors are primed for the post-crisis, Schumacher voiced concerns regarding legislative functions amid the onset of presidential elections; which take place in 8 months.
“We will have a dialogue with government agencies on what can be done administratively. We want to see some cuts in bureaucratic barriers and come up with administrative innovations,” Schumacher said.
At least one million Filipino workers will be employed in the country's business process outsourcing (BPO) industry by 2010. This is according to a statement from Malacañang which was released last September 20. The Palace is confident that BPO jobs will reach one million next year despite the current global economic slowdown.
The BPO sector is poised to grow further as it offers not only voice-based services but also non-voice work including medical transcription, animation, and software development. With $6.1 billion in revenues generated last year, the sector has become a major factor in helping the economy of the country.
While most BPO companies set up offices in Metro Manila, other provinces such as Cebu, Subic, Baguio, Cagayan de Oro, and Bacolod are emerging as ideal hubs for outsourcing, and the government has launched a training program called PGMA-Training for Work Scholarship Program (PGMA-TSWP) to meet the increasing demand of the growing industry.
Due to the low cost of doing business and availability of talent, Iloilo City is being investigated as a new investment hub for BPO (business process outsourcing) and IT, according to BPAP (Business Process Association of the Philippines) top officer Oscare R. Sañez.
“Iloilo City has much untapped potential, a large graduate pool, and low industry presence. [It] should have more IT-BPO jobs considering the size of its graduate pool,” he sad.
Iloilo was revealed as third among BPAP's list of Top 10 Next Wave Cities (with Metro Laguna and Metro Cavite occupying first and second) in their presentation at Iloilo-Guimaras Investment Forum.
The presentation stressed the need to capitalize on the graduates in the Visayas region which account for 21% of the nation's graduates but only 10% of the IT-BPO jobs (in contrast to the National Capital Region – 25% of graduates holding 80% of IT-BPO jobs). Iloilo currently only has 4,000 workers involved in IT-BPO; a number that Sañez believes will easily grow to 20,000.
by: Karen Cayamanda
Ray Anthony Roxas-Chua, Secretary of the Commission of Information and Communication Technology (CICT), believes that the BPO industry in the Philippines will hit the growth target of 20% for 2009 despite the global economic downturn.
“Despite the current global economic crisis, the IT-BPO industry is expected to grow approximately 20 percent for 2009. While the bulk of revenue still comes from voice services, the industry is now focusing on diversifying into the higher value-added non-voice services, such as software development, which will provide higher paying jobs to Filipinos,” he said.
Roxas-Chua added that the country is on track in reaching the goal, and Cebu will play a role in the growth of the BPO sector since it is now seen as an ideal outsourcing destination. “Cebu has respectable international business community because of its friendly environment."
The BPAP (Business Process Association of the Philippines (BPAP) has organized an effort to divert focus on the Philippines' creative sector; namely digital production and animation after assessing its high potential to boost the local BPO industry.
Content development companies in the Philippines now service big foreign clients like Cartoon Network, Nickelodeon, and a large variety of Japanese animation companies. The Philippines currently reels in 15% of the total creative outsourcing market with India earning 37%.
“In the coming years we foresee a growth in automated creative requirements from other countries, especially in the film-making and gaming sectors,” said BPAP Executive Director for Talent Development, Jamea Garcia.
Garcia further encouraged graphic designers and animators across the nation to continue to augment and apply their talents to land contracts from offshore companies looking to outsource creative requirements.