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Outsourcing News for December 2010 | MicroSourcing

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DOLE Sees PH BPO Industry as Main Job Generator in 2011

by: Karen Cayamanda

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

BPO Industry to become Top Job Generator in the Philippines

2011 will be a good year in terms of local job opportunities. According to the Department of Labor and Employment (DOLE), more than a million job openings are expected next year, and the business process outsourcing (BPO) industry will be the main employment generator for Filipinos.

DOLE Secretary Rosalinda Baldoz said the agency is coordinating with other concerned agencies so the country will be able to supply enough manpower for the BPO industry. To prepare those who want to join the BPO workforce, the Technical Education and Skills Development Authority (TESDA) will provide free English language communication training. “We also had an agreement with BPOs to ensure 100 percent absorption or hiring once the skills training is completed,” Baldoz said. The government also called for a national congress with the goal of strengthening the job facilitation services of DOLE.




Software Tech Products to Propel Indian IT-BPO

By the end of the current fiscal year, India’s IT-BPO industry will hit the $70 billion mark as demand for software technology products picked up. This is according to National Association of Software and Service Companies (Nasscom), the country’s IT industry and business process outsourcing (BPO) sector trade body.

From $12.8 billion in 2009, Nasscom expects a 14 percent compounded annual growth rate for the domestic IT-BPO services sector over the next two years. IT industry revenues rose by 5.5 percent as demand in US markets increased this year. The country’s top software services firm Tata Consultancy Services (TCS) as well as its competitor Infosys Technologies Ltd. reported good revenues in 2010.

Moreover, expansion of workforce is expected during this fiscal year with TCS planning to hire more than 50,000 people. Infosys, on the other hand, is expected to employ about 20,000 workers early next year.



India Leads Offshore Outsourcing Segment

When it comes to offshore outsourcing, India stays on top of the list, according to the recent offshore services report from IT consultancy firm Gartner.

Based on the report, India gets high scores in all 10 criteria namely: language, support from the government, manpower availability, infrastructure, educational system, cost, environment (political and economic), cultural compatibility, global and legal maturity, as well as IT security.

India remains the top outsourcing destination, but Gartner said the Philippines, Vietnam, and Indonesia pose as tough competitors in terms of service competitiveness and cost efficiency. "Attractive cost structures in the Philippines, Vietnam, and Indonesia create tough competition for India, while China remains the most prominent challenger in terms of scale." The Philippines, on the other hand, remains attractive to foreign firms due to its young manpower pool, good English communication skills, and cultural affinity with Western companies.




After the release of news reports that compared girls who are involved in cyber sex with call center agents working shifts, the Business Processing Association of the Philippines (BPAP) and the Commission on Information and Communications Technology (CICT) said cyber sex is not BPO. The illegal practice is happening in different parts of the world and is not being outsourced to the country.

Cyber sex not part of BPO industry

BPAP President and CEO Oscar Sañez said cyber sex is online porn and not part of the industry. "Cyber sex and illegal sex dens as reported recently is pervasive on the worldwide web. We should not attribute or compare cyber porn with our flourishing BPO industry," said CICT Chair Secretary Ivan Uy.

Industry groups said they were alarmed by the “wrong association” as this could have a negative impact to the image of the country which is now considered as the no. 1 offshore outsourcing destination.



IT Outsourcing to see Further Growth in 2011

by: Karen Cayamanda

Tuesday, December 14, 2010 | Outsourcing News | Comments (0)

Growth Predicted for the Global IT Outsourcing Sector

Research company Horses for Sources predicted that IT outsourcing will see further growth in 2011, the “banner year” for managed services. This can be attributed to the high speed transfer of operational software processes to offshore service providers.

The research company also predicted that firms will focus more on service integration. This is because more companies aim to set unified goals for sales, general, and administrative processed. "The only way [for firms] to start achieving new thresholds of productivity is to integrate the management, orchestration, and delivery of their sourced operations." It added that companies intend to expand their outsourcing scope in 2011.



Doing Business in the Philippines should be Easy

The Philippine government must amend the Labor Code to make doing business in the country easier. This is what the Joint Foreign Chambers said in the report “Arangkada Philippines 2010: A Business Perspective”.

“The Labor Code should be amended to remove the prohibition against female employees working at night, to allow subcontracting, and to make it easier to terminate employees,” the report said. Aside from amending legislations, there is also a need to reduce the number of holidays in the country since every non-working holiday means millions of dollars lost in the BPO industry.

The business group said the Philippines’ large pool of English-speaking workers, low-cost telecom, and government support must be strengthened and reforms must be done to reach “high growth potential”. The business group said leaders in both the private and public sectors should establish a national culture of competitiveness, and recommended reduction in business costs, as well as creation of an annual presidential report on competitiveness.



Creative Content Creation could bring in $25 B in Earnings

In the next five years, the Philippine business process outsourcing (BPO) industry, particularly the creative content sector, is expected to exceed the remittances from overseas Filipino workers, making the former the country’s top dollar-earner.

Commission on Information and Communications Technology (CICT) Secretary Ivan John Uy said the remittances from OFWs will hit $17 billion, while the creative content sector’s revenues will likely reach $9 billion this year. However, if the government gives support to the animation sector, revenues can reach $25 billion by 2016. "Creative content will be the driver of economic growth in our interconnected world. It accounts for majority of IT use from gaming to social networking and has the highest value added," Uy added.

According to Animation Council of the Philippines, Inc. Managing Director Grace Dimaranan, the Philippine animation industry currently consists of 100 firms and employs about 10,000 artists-animators, background artists, graphic artists, and digital painters.




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