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Outsourcing News for September 2010 | MicroSourcing

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New jobs in the BPO industry secured for Filipinos

President Benigno Aquino III’s working visit to the US resulted to at least 43,000 new jobs for Filipinos in the next three years, primarily in the business process outsourcing (BPO) industry. This is worth more than US$2 billion worth of investments from foreign companies tapped by Pres. Aquino.

According to Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz, the top in-demand jobs are the following: call center agent, customer service assistant, technical support staff, forklift operator, accounting clerk, mechanical engineer, sales clerk, driver, cashier, and production worker. "It is good news, and that will really help in job generation... and address the poverty that continues to confront us," Baldoz said.

Senate finance committee chair Franklin Drilon said these new investments mean foreign investors are confident in the Aquino administration.




Republicans Block Passage of US Anti-outsourcing Bill

by: Karen Cayamanda

Wednesday, September 29, 2010 | Outsourcing News | Comments (0)

In a 53-45 vote, the Republicans had prevented the passage of the anti-outsourcing bill that would stop US companies from getting tax breaks and outsourcing work to other countries.

Increased taxes on revenues from offshore operations

The Creating American Jobs and End Offshoring Act includes exempting firms that move jobs to US from payroll tax. However, it also involves increasing taxes on the companies’ profits from offshore operations. "Desperate times call for desperate measures and the majority is showing how desperate they are with a bill that increases the tax burden on job creators and ship much-needed US jobs overseas," said Republican senator Orrin Hatch.

On the other hand, Democrat senator Harry Reid said the goal of the bill is “to keep American jobs in America”, and that the US must stop granting tax breaks to companies that move jobs overseas.




RP BPO Feels Impact of Strong Peso

by: Karen Cayamanda

Tuesday, September 28, 2010 | Outsourcing News | Comments (0)

Stronger Philippine Peso's Imapct to BPOs

According to Oscar Sañez, president of the Business Processing Association of the Philippines (BPAP), the BPO industry in the country is starting to feel the effect of the strong peso, at around 43 to the dollar.

Small companies may stop their operations. For BPO companies with contracts struck at 46php to a dollar, revenues will decrease. Sañez said having a strong peso will have a negative impact to the industry. This can also affect investor perception of the country as an ideal outsourcing location. "If you listen to the pronouncements of government, it actually prefers a strong peso. That is dangerous because the economy is dependent on OFWs (remittances) and exports of product and services," he said.

While the country’s BPO industry is worried about this issue, Sañez said BPAP remains on track in reaching the revenue goal this year. The problem would be how to keep this momentum despite the impact of the strong peso.



BPAP Asks RP BPO Firms to Hire Workers Outside Manila

by: Karen Cayamanda

Monday, September 27, 2010 | Outsourcing News | Comments (0)

BPAP urges BPO industry to hire more workers outside Metro Manila

Recognizing the availability of competent talent pools in provinces, an official of the Business Processing Association of the Philippines (BPAP) said firms in the business process outsourcing (BPO) industry must hire more workers outside Metro Manila.

BPAP executive director Ma. Jamea S. Garcia said that out of 400,000 graduates every year, only 25 percent are from Metro Manila, illustrating the competent talent pool available in other regions. “Talents are always there, the companies just need to find the applicants who will perfectly match their expectations." She added that the perception of not having enough talent in the provinces must be changed.

Garcia said the country’s BPO industry is aiming to reach the $12-billion revenue target by 2011. Based on a different report, Commission on Information and Communications Technology (CICT) Chairman Ivan Uy said the BPO industry will likely hit the $9 billion revenue mark this month or in October, and may even close the year with revenue that is close to $10 billion.



Eastwood City Cyberpark Named Top RP BPO Location

by: Karen Cayamanda

Friday, September 24, 2010 | Outsourcing News | Comments (0)

Eastwood Top BPO Hub in the Philippines

Among all registered IT parks and buildings in the Philippines, Eastwood City Cyberpark in Libis, Quezon City posted the highest employment figure of 16,856 in 2009. This is a 22-percent increase compared to 2008 figures, making it the top BPO location in the country.

Aside from the rise in number of employees, Eastwood City Cyberpark also posted improvements in exports of Offshoring & Outsourcing (O&O) locators reaching US$348.31 million, as well as in salaries from PEZA-registered companies at P6.72 billion. According to developer Megaworld Corporation, non-BPO establishments in Eastwood have provided jobs to more than 30,000.

“We are pleased that despite the global economic challenges of 2009, Eastwood City Cyberpark still managed to post increases in the number of employees, exports and salaries. As the economy improves further this year, we expect 2010 to be another banner year for Eastwood City Cyberpark,” Megaworld FVP for business development Jericho Go said.




BPO market share of India decreases

India’s BPO market share decreases. China is already closing the gap and may even surpass the former as the top outsourcing destination. This is according to a new report from Ovum, a technology consulting firm.

“Both countries are often touted as the low cost delivery location of choice, with many non-domestic vendors investing millions of dollars to set up operations in multiple locations in both countries”, said Jens Butler, Ovum principal analyst. He added that with the growing influence of India and China as centers of political and economic power, both countries will go head-to-head in the BPO arena.

To stay at the top, stability and government support will play a big role, and these must be sustained in the future since other outsourcing hubs such as the Philippines, South Africa, and Latin America may take BPO market share from China and India.



India, US Vow to Resolve Issues before Obama Visit

by: Karen Cayamanda

Wednesday, September 22, 2010 | Outsourcing News | Comments (0)

India Hopes to Resolve Issues for IT Workers

In a joint statement, India and the US vowed to put an end to issues such as the outsourcing ban of Ohio and the increase in visa fees before the visit to India of US president Barack Obama.

Indian Minister of Commerce and Industry Anand Sharma aired India’s concerns about the anti-outsourcing moves of the US, saying that the trend “had created an avoidable feeling of negativity in the service sector." Sharma said, "when the global economy is still reeling from the aftershocks of the economic crisis and coming out of the recession any inward looking step of protectionist measure would slow down the pace of recovery and deepen the recession."

It was reported earlier that India criticized the passage of a US bill stating that visa fees for IT workers coming to the US will increase. This was followed by the issuance of an executive order in Ohio, banning the transfer of government IT and back office projects offshore.



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