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Outsourcing News for June 2010 | MicroSourcing

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Increasing demand for IT specialists in the BPO sector

Concentrix Institute recently opened a test center for IT training and certification in Davao, the first of its kind in Mindanao. According to Concentrix site director Gary Dumael, this was done to meet the increasing demand for IT specialists in the BPO sector. The number of graduates in the IT field is not enough to meet this requirement.

Concentrix Institute’s 33-day training course includes classroom discussion and hands-on training. It makes use of state-of-the-art equipment and facilities. With this newly-opened test center, graduates from Mindanao no longer have to go to Cebu or Manila to take the Cisco Certified Network Associate (CCNA) certification exam. 

"We are helping the academe cope with this gap by providing our own training course and opening a certification window through Pearson VUE as its Authorized Test Center for the Cisco Certified Network Associate," Dumael said.


Maximizing Outsourcing Contracts

In the latest study, “From Cost to Value”, by global consultancy firm KPMG International, clients may be putting more pressure on their service providers as they aim to get more value out of their outsourcing deals.

Out of the 450 Chief Information Officers (CIOs) who took part in the survey, more than two-thirds said they would bring more pressure on service providers to get more value out of their contracts, while 81 percent said their top priority would be to get more value from IT.

"Understandably, CIOs are pursuing value by reviewing outsourcing arrangements and retaining a firm focus on cost optimization, for example," KPMG's UK advisory partner, Bryan Cruickshank, said.

The survey also reveals that 58 percent of respondents put cost optimization as second on their priority list, followed by portfolio management (51 percent).




As offshoring destinations like the Philippines gain traction and onshoring activity in Latin America picks up, business process outsourcing (BPO) companies in India are forced to focus on global delivery models and set up new overseas delivery centers.

BPO firms shift to nearshoring

Nearshoring is also picking up. According to Deepak Patel, CEO, Aditya Birla Minacs, a BPO firm needs to have both nearshoring and offshoring solutions in order to stay competitive.

Industry experts said this shift to near-shore option can be attributed to the fact that from low-cost business models, new ones now focus more on value instead of cost. This is another factor that pushes Indian BPO firms to set up new global delivery centers. “The next-generation business models are no more about cost, but value. Just because something is cheaper does not mean it has value,” Patel said.





IBM Brings Cloud Computing Technology to RP

by: Karen Cayamanda

Monday, June 21, 2010 | Outsourcing News | Comments (0)

Cloud computing enables business owners to gain access to company data virtually anywhere

Cloud computing, the technology that enables people to gain access to services and storage via the Internet cloud, is now in the Philippines, thanks to global information technology pioneer IBM.

“Cloud computing is an important new consumption and delivery model for and business services. Based on two years of research, [this could] help clients turn complex business processes into simple services," said Daryl Tan, IBM regional service platform manager.

According to IBM, cloud computing can help reduce a company’s expenses in hardware and software maintenance by 40 percent. With cloud computing, business owners can gain access to company data virtually anywhere as long as there is an Internet connection. Remote employees can also access business information of clients, making the technology an ideal tool for financial firms and companies in the business process outsourcing sector.


For Information Technology solutions company Microsoft, focusing on Cebu’s manufacturing, export, and outsourcing industries will drive the growth of the company this year.

According to John Bessey, Microsoft Philippines, Inc. managing director, the company can provide the technology tools that people need. “We are also seeing a trend in the demand for cloud computing and products that can make collaboration easier. We are proud to say that we have just about all the products needed for personal computing, mobile computing, and browsing,” Bessey said.

Aside from providing what Mike Tuohy, general manager for the Asia Pacific Region, said as new wave products such as Office 2010, Vision 2010, and Sharepoint 2010, Microsoft also plans to facilitate more information campaigns to educate people about the importance of buying and using licensed and legitimate software.  

Cebu as a major outsourcing hub

Cebu City recently launched the IP Seal campaign to increase awareness on intellectual property rights (IPR) protection, further improve the IT sector, and boost the position of Cebu as a major outsourcing hub.





Bacolod Moves Up in the IT-BPO Location List

From the 5th spot last year, Bacolod moved up two notches to No. 3 in the list of Top Ten Next Wave Cities for IT and BPO. This is based on infrastructure, business environment, crime rate, and other factors.

According to Mayor Evelio Leonardia, this recognition can be attributed to the continued trust of businessmen in the government, infrastructure, among others. Bacolod was also named as the country’s Most Business-friendly City. Recognizing the big role of outsourcing in the local economy, Leonardia said they will continue to initiate programs that will help provide more job opportunities in the IT industry for the people of Bacolod.

This recognition for Bacolod was awarded by the Commission on Information and Communications Technology, Business Process Outsourcing Association of the Philippines, as well as the Department of Trade and Industry.

Here’s the list of Top Ten Next Wave Cities for IT and BPO:

  1. Davao
  2. Sta. Rosa
  3. Bacolod
  4. IloIlo
  5. Metro Cavite
  6. Lipa
  7. Cagayan de Oro
  8. Malolos
  9. Baguio
  10. Dumaguete




Egypt Poised to become Key Outsourcing Destination

by: Karen Cayamanda

Wednesday, June 9, 2010 | Outsourcing News | Comments (0)

Egypt Emerging as Outsourcing Location

Having the key factors needed for outsourcing, Egypt is ready to become a major outsourcing hub. According to Hossam Megahed, board member for Egypt's Information Technology Industry Development Agency (ITIDA), the country’s infrastructure, business environment, and pool of multilingual workers have attracted investors to outsource business processes in Egypt.

"The presence of high-profile companies like IBM, Microsoft and Vodafone in Egypt today highlights ITIDA's continued success at building the country's reputation as a global service delivery location," Megahed said.

The 11.3 percent growth rate of the Information and Communication Technology (ICT) industry in Egypt propelled the economy to reach a growth rate of 5.8 percent in the first quarter.




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