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Outsourcing News for December 2009 | MicroSourcing

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Rise of Airline Outsourcing Industry

A $3 billion investment was made by Indian business process outsourcing (BPO) firm, InterGlobe Enterprises Pvt. Ltd., last week in Bonifacio Global City, Taguig.

According to Business Mirror, the investment follows an expected rise in airline industry outsourcing due to hiking jet fuel prices, labor disputes, and online ticketing among others in the US. InterGlobe CEO, Vipul Doshi, said the company will make additional investments in the next 12 to 18 months to increase available seats.

“Our establishment here reflects our confidence on the airline industry that is coming out slowly from recession. The last few months are fairly good months for the United States airline business,” Doshi said.
The company will be looking to capitalize on increased sales of airplanes for both international and domestic travel and leverage lower costs on several management items including back-office operations.   




India Loses Voice-related BPO Jobs to RP

by: Karen Cayamanda

Monday, December 28, 2009 | Outsourcing News | Comments (0)

India is falling behind the Philippines when it comes to voice-related tasks. According to Pramod Bhasin, president & CEO of Genpact, India’s largest BPO company, service providers and customers prefer the Philippines for voice-based work because Filipino workers are more proficient in English compared to their counterparts in India.

In the Philippines, BPO players do not have to deal with problems that exist in India. These include security, power back-up in BPO offices, and transport of employees.

Philippines a natural choice for providing outsourcing services

Aside from English proficiency, the geographical location of the Philippines proves to be working in its favor as far as outsourcing is concerned. According to Prabhakar Bisen, head of the Philippines operations of WNS, “the country’s time zone advantages make the Philippines a natural choice for providing 24x7 service to global companies, particularly those based in the US.”



Iloilo Lacks Enough Space to Meet BPO Demand

by: Karen Cayamanda

Thursday, December 24, 2009 | Outsourcing News | Comments (0)

Not Enough BPO Office Space in Iloilo

With the expected rise in the number of BPO locators in Iloilo City next year, Jessraf S. Palmares, Acting Chairman of the Iloilo Federation for Information Technology (IFIT), said the Philippine’s third New Wave City lacks enough space for outsourcing.

“We have no more developed sites for BPOs,” said Palmares in the recently concluded Commission on Information and Communications Technology (CICT) Convergence 2009. “The four buildings which BPOs currently use are malls whose top floors had been converted into cyberparks.” He said they are encouraging the private sector to convert empty lots into cyberparks.

Palmares added that Iloilo produces 20,000 graduates annually, and they want to “bring the work where the talent is.” However, only 5,000 of the total number of graduates have taken IT and IT-related courses and the city needs more to meet the BPO demand. He said it is necessary to conduct training programs and train graduates to be more competent in web management and development.



Philippines Expected to Lead Creative Process Outsourcing

With the talent and skills of Filipinos in the fields of animation and creative design, the Philippines is now targeting to take the lead in the global industry of Creative Process Outsourcing (CPO). This is according to Weng Bagadion, President of the Animation Council of the Philippines.

“I am personally advocating to the various agencies like BPAP [Business Processing Outsourcing of the Philippines], DTI [Department of Trade and Industry], and DFA [Department of Foreign Affairs] that the Philippines should claim CPO. We want our own brand of animation. If one is familiar with Maslow’s hierarchy of needs, the Filipino industry has matured to a point where we are now seeking for self-actualization,” Bagadion said.

Aside from the innate talent in creative design, Filipino workers are also proficient in English and they deliver high quality outputs at lower costs.

CPO encompasses a wide range of fields including animation, game development, industrial design, film, advertising, photography, publishing, and corporate communication.






Europe is Top Spender in Outsourcing

According to the report entitled “TPI Momentum Market Trends and Insights” by TPI, an outsourcing advisory company, Europe now holds the title as the world’s highest spender in outsourcing this year, moving past the US.

The report shows that the most successful companies based in Europe spend more on outsourcing deals by the end of third quarter, with a total annual contract value (ACV) of $30.6 billion. This is compared to those companies located in the US and Canada which spend $28.4 billion in outsourcing.

Last year, the most successful companies in the US and Canada spent an ACV of $29.6 billion, while Europe-based companies registered an ACV of $28.7 billion spent in outsourcing deals.




PH Outsourcing Employees Need to Up their Game in Selling

Local outsourcing companies need to train their people better in the service and sales aspects of the business, an industry expert said.


Datacraft Asia general manager for converged communications and customer interactive solutions Nagi Kasinadhuni said Asian contact center agents are not trained enough in multi-functional services.


"In Asia, only 30.3% of agents are able to sell as well as service customers in a call so we see that there is difficulty on the part of agents to serve customers in multiple ways during a call. If customers ask about their billing problems, the agent can answer the question but cannot sell other higher-value services to customers," he said.


Asian contact centers, including those in the Philippines, are not equipped to sell higher-value service, with Kasinadhuni noting that the ability to serve customers in multiple ways creates customer loyalty and retention.


In a Datacraft study, Asia is shown to be leading the way in measuring customer satisfaction with a 78.6% rating compared with the 64.7% in other parts of the world.


Source: www.bworldonline.com


Filinvest said it plans to take advantage of the expected growth of the “Next Wave Cities” (NWCs) by expanding its Northgate Cyberzone in order to attract more BPO locators.

Proposed expansion for more BPO locators

The Northgate Cyberzone, a Peza-registered IT and BPO hub located south of Manila, currently serves 20 major locators with a combined work force of around 13,500. These locators include HSBC, Genpact, Convergys, eTelecare and Apac.

The proposed expansion will include the construction of tow new IT building within the zone. The buildings have a combined floor area of 40,000 square meters and can accommodate roughly 5,700 call-center seats. Northgate Cyberzone plans seven more buildings in the future.

“Currently, we don’t see any decline in demand,” said Maricel Lirio, vice president and project group head of Northgate Cyberzone. “While there is a stable supply of spaces, there is definitely going to be a need for more in the future.”

The local BPO industry is confident that 2010 will prove to be a rebound year, despite growing concerns over diminishing BPO opportunities in the wake of the global recession. Local BPO executives have been quoted as saying they estimate the industry grew 23-percent in terms of overall revenue in 2009.



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