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Outsourcing News for October 2010 | MicroSourcing

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If the BPO industry can stay competitive and leverage support from the government, the Philippines can post annual revenues reaching $25 billion and employ 1.3 million Filipinos by 2016.

This is based on the “IT-BPO Roadmap 2011-2016: Driving Global Leadership”, funded by the Commission on Information and Communications Technology (CICT) and developed by Everest Group and Outsource2Philippines for the Business Processing Association of the Philippines (BPAP).

BPO industry can grow to $20B in annual revenues

“We found that the industry can grow to $20 billion in annual revenues by 2016 if current conditions are sustained,” BPAP CEO Oscar Sañez said. He added that the industry’s revenues can reach $25 billion if the positive conditions are sustained and the government gives new support to the BPO industry.

The country’s outsourcing industry stays competitive, thanks to the strong demand, government support, and strong language skills of workers. Sañez said its value proposition can still be improved depending on the initiatives on educational reform, enhanced visibility of the country on the global stage, and if the Filipinos will better appreciate and take advantage of the job opportunities being offered by the industry.



Ovum Says BPO Sector to Recover in 2011

by: Karen Cayamanda

Thursday, October 28, 2010 | Outsourcing News | Comments (0)

After facing the challenges brought about by the global economic downturn, things are looking up for the business process outsourcing (BPO) sector, as contracts will likely be scheduled for renewal and will open new business opportunities. This is according to global analyst and consulting company Ovum.

New opportunities for BPO sector

In the “2011 Trends to Watch: BPO” report by Ovum, more than 200 BPO contracts, with a total contract value of US$12.2 billion, are set to expire next year. Thirty-one percent of expiring contracts come from the manufacturing sector; 24 percent are from the banking sector. Ovum predicts that because of the contract renewals, the BPO market will see a five percent growth this year, and will grow by 6.3 percent next year.

Ovum principal analyst Patrick O’Brien said companies now have more options when it comes to service providers. According to the report, Middle East and Latin America are positioning themselves as locations for BPO work.




ILO Chief Tells RP Grads to Fill In Manpower Gaps in BPO

by: Karen Cayamanda

Wednesday, October 27, 2010 | Outsourcing News | Comments (0)

Fresh Grads should try their luck in BPOs

International Labor Organization (ILO) chief Lawrence Jeff Johnson said that instead of waiting for a job overseas, Filipino graduates should get employed in the business process outsourcing (BPO) sector to fill in the labor market gaps. “There’s lack of takers in the available jobs in the labor market even if there are graduates who could fill in these [jobs]. These graduates without jobs must take advantage of the labor market gaps."

He added that the demand has exceeded manpower supply since 2007. For instance, the industry needs 60,012 engineers, accountants, and skilled workers, 178,771 hotel and restaurant workers, and 747,947 employees for voice-based work. On the other hand, the number of nursing graduates is more than the number of jobs available. Johnson said with their medical background, these graduates can temporarily get employed as medical transcriptionists to help fill the gap.




National Outsourcing Association names Philippines Offshoring Destination of the Year

The Philippines was named Offshoring Destination of the Year by the National Outsourcing Association (NOA). This is the third time that the country won the prestigious award. The first time was in 2007 and the second was just last year. Philippine Trade Attache Mike Ignacio and Marketing Officer Vic Casim received the award in behalf of the country during the NOA 2010 Awards held last October 21 at the Park Plaza Riverbank in London.

NOA is the only outsourcing trade association in the UK, representing the end users, vendors, and companies that support outsourcing.

According to a news release from External Affairs Executive Director Martin Crisostomo of the Business Processing Association of the Philippines (BPAP), 2009 export revenues of the Philippine BPO industry reached US$7.2 billion, with workforce consisting of almost 450,000 employees. By the end of 2010, BPAP expects that revenues will reach US$9.5 billion and number of BPO employees will increase to 650,000.


UK Insurance Outsourcing Costs Set to Increase by 20%

by: Karen Cayamanda

Thursday, October 21, 2010 | Outsourcing News | Comments (0)

20% Iminent Increase for UK Insurance Outsourcing

UK and Irish insurance companies and those that provide intermediary/broking services are exempted from VAT, but under the new EU directive, they will soon face a 20 percent increase in costs on outsourcing business processes.

According to international VAT and IPT provider TMF, many companies have opted to outsource tasks such as claims handling and IT. “As a result, a supply industry has grown up which is divorced from the VAT-exempt insurance activity … has stretched the original scope of the exemption, and … has proved problematic to police.”

EU countries think that the popularity of the outsourcing industry poses a threat to jobs as it offers an option for companies to get things done offshore. TMF advised insurance companies to review their outsourcing strategy.




India to Discuss Outsourcing Concerns with Obama

by: Karen Cayamanda

Wednesday, October 20, 2010 | Outsourcing News | Comments (0)

India to Express Outsourcing Woes with US President Obama

India will discuss the recent US anti-outsourcing moves with President Barack Obama in his visit to the country on November 5. This is according to India’s External Affairs Minister S.M. Krishna.

"There are some serious reservations being expressed about India's IT industry about outsourcing and the tightening of visa rules. These are the kind of issues that will be discussed," Krishna said. He added that there may be outsourcing issues between the two countries, but these will not affect their strong relationship.

A US bill was passed a few months ago, stating that visa fees for IT workers coming to the US will increase. This will have an impact on the outsourcing industry specifically those Indian workers who are transferred to the US. Meanwhile, Ohio Governor Ted Strickland issued an executive order that bans the transfer of government IT and back office projects offshore. 





Indian Animation Industry to Reach $1bn by 2012

by: Karen Cayamanda

Monday, October 18, 2010 | Outsourcing News | Comments (1)

Animation Industry in India

It is expected that the animation industry of India will see a 22 percent compounded yearly growth rate until 2012, which makes the industry likely to reach $1 billion. In 2008, the industry was estimated at $494 million.

"Globally, the animation industry is poised to touch USD 100 billion by 2012 and India's animation industry is expected to hit USD 1 billion by 2012, aided by increased outsourcing and a growing domestic market," Ram Kumar Worrier, head of the Maya Academy of Advanced Cinematics (MAAC) Business, said.

Meanwhile, Ketan Mehta, founder of the MAAC, said technical expertise, telecommunications infrastructure, as well as the pool of English-speaking animators and graphic designers are the factors that make India ideal for animation work. He added that when it comes to animation, the country is heading in the right direction.



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