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Outsourcing News for September 2011 | MicroSourcing


BPO Firm Pledges to Invest More in PH

by: Sarah Joson

Friday, September 30, 2011 | Outsourcing News | Comments (0)

Strengthened BPO partnerships with the Philippines

Convergys Corp. President and CEO Jeffery Fox held a courtesy call for President Benigno Aquino III at the Guggenheim Room of the Omni Berkshires Hotel in New York, where he guaranteed the President his commitment to putting more investments and providing more jobs to the Philippines.

Fox said Convergys is aware of the opportunities investing in the Philippines has to offer and that he is definitely planning on reinforcing his current partnership with the country.  

He was also happy to have been given the opportunity to talk and personally thank the President for the government support to the business process outsourcing (BPO) industry.

EXL Services’ Executive Vice-president Bill Bloom also met with the President, saying that they chose the country as the location for their clients who have “higher end” requirements. These include processes that are usually provided to medical professionals, lawyers, and accountants.



PH can be Outsourcing Hub for Mobile Apps

by: Sarah Joson

Wednesday, September 21, 2011 | Outsourcing News | Comments (0)

With the growing popularity of mobile communication devices worldwide, the Philippines can definitely cash in and become an outsourcing location for mobile applications development.  There is a need, therefore, for local developers to focus on mobile applications.

PH as potential mobile app development outsourcing hub

According to Ramon Pastor of Numlock Solutions in a Power Mac Center mobile app development seminar, even if the country is far behind other mobile-app-developing hubs, local developers have what it takes to meet the demand for mobile apps both locally and in the global scene. He said local developers can take advantage of the demand for mobile applications, turning the Philippines into the location of choice for this service.

Pastor sees opportunities in mobile apps development, knowing that mobile devices are used not only for making calls, sending text messages and emails, etc. He believes that the demand will grow significantly in the next few years. He also said that many companies do not know that local developers can do mobile apps development projects. He’s hoping that the country will soon be able to benefit from the growing demand.



Bill for the Protection of BPO Workers Proposed

by: Sarah Joson

Tuesday, September 20, 2011 | Outsourcing News | Comments (0)

The House Bill 5218 that aims to protect the welfare of BPO employees was recently submitted by former President and current Pampanga 2nd District Congresswoman, Gloria Macapagal-Arroyo, and son, Camarines Sur Rep. Diosdado "Dato" Arroyo.

According to the bill or the proposed Magna Carta for Call Center Workers Act of 2011, since the State is associated to an International Labor Organization (ILO) convention concerning Freedom of Association and Protection of the Right to Organize, the parties involved should recognize “the right of workers, without distinction whatsoever, to establish and -- subject to the rules of the organization concerned,-- to join organizations of their own choosing without previous authorization.”

BPO employees' civil liberties

Also indicated in the bill are essential factors to call center employees’ civil liberties such as the right to a safe and healthy working environment that is said to support physical and mental health towards responsibilities at work.

In addition to that, BPO employees should be permitted to take one-hour breaks for every eight working hours, right to rest in a comfortable area within the office premises until it is safe to go home, and the right to privacy. The proposed bill also seeks to address the issues regarding health dangers that come along with working in the BPO industry.


Efforts to Improve Skill - Job Matches in PH BPO

The Business Processing Association of the Philippines (BPAP) is currently working on reinforcing partnerships with the local government and the education sector for further developments in the IT-BPO industry and to properly allocate skills to job openings.  

According to BPAP Industry Affairs Executive Director Raymond Lacdao, talent management, certification, and outreach initiatives are being prioritized in the IT-BPO sector. The US$25 billion revenue target will be a threefold increase over the course of five years.

“Support from the government is a big step towards meeting the industry’s US$25-billion expansion by 2016. He also said that if the industry reaches that goal, about 1.3 million will be employed and its revenues will make up 12.5 percent of the gross domestic product.

The mismatch in the skills needed and available talent remains a challenge. Lacdao said there is a need for a robust pool of workers who have leadership skills, English proficiency, as well as skills in strategic thinking, comprehension, and teamwork.

He also pointed out that in the upcoming Third International Outsourcing Summit (IOS) at the Sofitel Philippine Plaza, Manila, talent will be one of the main topics that will be discussed among top level executives and industry experts.



Economic Concerns Likely to Affect Outsourcing Demand

by: Karen Cayamanda

Thursday, September 8, 2011 | Outsourcing News | Comments (0)

Market Uncertainties to Affect BPO Activity

While it is too early to say what the impact of the current economic situation will be, analysts believe market uncertainties may affect the demand for outsourcing.
Krishna Baidya, Industry Manager for Asia-Pacific ICT practice at business research and consulting firm Frost & Sullivan, said the global outsourcing market may not be that stable and businesses would reevaluate their outsourcing relationships, halt making decisions, and be watchful on the state of the economy. 
When it comes to service providers, they will likely go for smaller and shorter outsourcing contracts and deal with inquiries from potential clients on how to get more at a lower price. Baidya also said getting more value will make businesses outsource work to service providers that can give them long-term business and financial benefits.
According to Baidya, innovation and consistency in service offerings are crucial to stay competitive at this time of economic uncertainty. Meanwhile, Principal Analyst Jens Butler of global analyst and consulting firm Ovum said service providers in Asia are becoming less reliant on the Western market and are now tapping markets closer to home. Liu Chu Tzer, Senior Vice President and Managing Director at HiSoft Singapore, said less dependence on the US and UK markets is crucial in establishing a more diversified company portfolio and keeping businesses insulated from the impact of an economic downturn.


PH BPO Urged to Go Beyond Voice Services

by: Karen Cayamanda

Tuesday, September 6, 2011 | Outsourcing News | Comments (0)

Outsourcing Services Beyond Call Center Services

Senator Edgardo Angara urged stakeholders of the business process outsourcing (BPO) industry in the country to expand offerings and develop high-value services to stay competitive and protect the industry.
The chair of the Senate committee on Science and Technology said that for IT-BPO to remain a sunrise industry, there is a need to offer more than just voice-based processes. The pool of professionals must be skilled and knowledgeable in knowledge-intensive processes such as legal research, financial analytics, software development, creative content, and medical transcription.
The Philippines is now considered as the top call center destination, beating India in 2010. However, Angara said the aim now should be to be more than just a location of choice for voice-based work. He urged IT-BPO stakeholders to take part in the initiatives in terms of talent availability and development. One of these is the program of the Technical Education and Skills Development Authority (TESDA) and Business Processing Association of the Philippines (BPAP) designed to train more than 2000 scholars to improve their skills and meet the BPO demand.


Indian BPOs See PH as a Threat

by: Sarah Joson

Thursday, September 1, 2011 | Outsourcing News | Comments (0)

Indian Firms Keep an Eye out for Philippine Outsourcing Providers

Numerous BPO service providers worldwide have been striving hard to be the best in the industry. But India remains as one of the biggest and toughest contenders with an annual growth rate of 16-18 percent. Be that as it may, Indian BPOs still feel threatened by the Philippines when it comes to offshore outsourcing.  

Genpact’s Vice President Pramod Bhasin said in a statement, “I think it’s a serious issue for India. It’s about calibre and quality of people coming out of colleges. Earlier, Philippines was mainly into non-voice, but now it has expanded into finance and accounting. We have to review our education and skills training.” He added that BPO firms outside the Philippines welcome the competition.  

Indian firms were warned by Spa­nco BPO and Hinduja Global Solutions about the Philippines as a competitor. Global CEO of Hinduja Global Solutions, Partha Desarkar, said the Philippines is seen as a big contender. This is the reason they have established operations in Manila.

Meanwhile, Nasscom President Som Mittal said it is about making the most out of the outsourcing opportunities, although India has a lot of issues such as maintaining safety and security and elaborate taxation policies.