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Outsourcing News for November 2012 | MicroSourcing

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Cloud Highly Considered in Outsourcing Contracts

by: Sarah Joson

Thursday, November 29, 2012 | Outsourcing News | Comments (0)

Preparing for Cloud Technology in Outsourcing Contracts

According to consultancy firm Information Services Group (ISG), more and more outsourcing contracts during the past two years were seen including provisions for cloud technology. Those with cloud provisions included in the contract grew from nine percent in 2010 to 27 percent in 2012.

Moreover, ISG anticipates 300 contracts with cloud provisions will be closed before 2012 ends. In ISG’s study, it was found out that 25 percent of service providers who participated in the survey highly consider including cloud features in future services and processes.
Meanwhile, ISG Emerging Technology Analyst Stanton Jones said not all of the cloud’s segments are experiencing uniform growth. He cited Software-as-a-Service (SaaS) as having the most growth potential particularly for human resources, customer relationship management, and collaboration. For larger operations, Infrastructure-as-a-Service (IaaS) will trail behind SaaS.

According to the Director and Co-founder of Google Apps and Amazon Web Services reseller Cloudreach, Pontus Noren, ISG’s report shows how the cloud is rapidly growing, and how companies are benefitting from its accessibility and ease of use.



UK IT Outsourcing Activity Slows Down

by: Sarah Joson

Wednesday, November 28, 2012 | Outsourcing News | Comments (0)

Outosurcing Activity Declined

A research done by Oxford Economics shows that the number of employees in the information technology (IT) outsourcing sector decreased, as well as the sector’s total contribution to the UK economy.

It was also found out that in 2010, the UK’s outsourcing industry was only worth £199bn, falling from 2009’s £207bn, which is 7.4 percent of the region’s total production. Furthermore, £38.7bn of the entire value was accounted for by the IT and data-related services segment of the industry, which is £3bn lower than figures from the previous year.
Next to IT was the employment services segment, posting sales worth £33.9bn, followed by property repair and maintenance outsourcing, with revenues of £28.1bn.

Even the number of workers in IT outsourcing fell, from 340,000 in 2009 to 320,000 in 2010. Meanwhile, the industry with the most number of workers was employment services with 742,000. Property maintenance and repair employed 295,000.
UK’s IT and data-related outsourcing segment generated £38.7bn in 2010, nearly £23bn of which was from London and South East and employed 160,000 workers.



Large PH BPOs to Generate 500,000 Jobs

by: Sarah Joson

Monday, November 26, 2012 | Outsourcing News | Comments (0)

500,000 Jobs to be produced by PH BPO Sector from 2013-2016

Large global business process outsourcing (BPO) firms operating in the Philippines are expected to generate over 500,000 jobs in 2013 up to 2016.

A well-known supporter of the sector, House Deputy Majority Leader Roman Romulo said the frontrunners will be hiring more actively in the coming years. He added that since large players have the experience needed in hiring and recruiting, they will be able to supply their clients back office and business support services at the right price.

Meanwhile, the largest BPO organizations seen were Accenture Inc. with 25,000 employees, posting P22.256 billion in revenues for 2011. Convergys Philippines Services Corp. reported P14.400 billion in revenues for 2011 with 30,000 employees, while TeleTech Customer Care Management Philippines Inc. posted P11.250 billion with 20,000 employees.



Growth of IT-BPO in the Philippines

by: Sarah Joson

Friday, November 23, 2012 | Outsourcing News | Comments (0)

The Philippines is now known as the leading country for voice-based processes, and the second most- favoured destination for high-valued processes. Relatively lower operational costs and large supply of talent are some of the factors that make the Philippines an ideal outsourcing destination.

BPAP working hard to sustain BPO sector growth

With the constantly changing environment, the Business Processing Association of the Philippines (BPAP) is working hard to sustain the sector’s growth. BPAP Chairman Alfredo Ayala predicted that the local BPO sector will maintain its position as the leader in voice-based services, and can progress into high-valued services specifically in healthcare management, software, digital, etc., and serve regions outside the US.

At Doing Business 2013, a report from World Bank and the IFC, it shows that Poland has improved in terms processes, specifically in registering property, paying taxes, resolving insolvency, and enforcing contracts. Other countries followed suit. For instance, Malaysia was seen improving process permit applications. Singapore was identified as second in investor protection index, while India has a large supply of workforce like China. Meanwhile, nearshore providers like Latin America have a leg up as these are closer to a major client which is the US.



PH Real Estate to Remain Strong with BPO Demand

by: Sarah Joson

Wednesday, November 21, 2012 | Outsourcing News | Comments (0)

CBRE Philippines identifies the business process outsourcing (BPO) sector as the key growth factor for the country’s real estate industry, particularly for commercial space.

CBRE Chairman and Founder Rick Santos said they are experiencing sustained growth that they have not seen in the last 20 years. He added that in Asia, the Philippines is one of the most economical outsourcing hubs and Manila is an ideal location for international companies.

BPO sector expected to post $25B in revenues

Meanwhile, the Business Processing Association of the Philippines (BPAP) said the sector is anticipated to post revenues worth $25 billion by 2016.

Santos noted that the gaming industry and increased volume of tourists will sustain demand for luxury and leisure properties.



Call Center Agentsí Welfare Probed

by: Sarah Joson

Tuesday, November 20, 2012 | Outsourcing News | Comments (0)

Poor welfare conditions of employees in the call center industry

In a letter sent to Labor and Employment Committee Chairman Senator Jinggoy Estrada, former Senate President Ernesto Maceda insisted that senators look into the poor welfare conditions of employees in the call center industry and immediately address the issues.
Maceda noted that the Department of Labor and Employment (DOLE) should not only focus on the compensation packages received by employees. The organization should also prioritize their health and safety and reinforce their rights.  

Furthermore, Maceda pointed out that the 10 percent night differential is not enough, considering that call center employees work in a high-risk environment. He even cited incidents wherein call center employees were held up or murdered to or from work.



Aquino Admin Expresses Confidence in PH ICT-BPO

by: Sarah Joson

Monday, November 19, 2012 | Outsourcing News | Comments (0)

During the 12th ASEAN Telecommunications and Information Technology Meeting (Telmin12) in Cebu, President Benigno Aquino III said the information and communication technology (ICT) segment now leads the country’s business process outsourcing (BPO) industry. It is in fact a bullish segment which contributed 638,000 new jobs that enabled more Filipinos to attain an easier standard of living. Proof of that would be $11 billion dollars in direct revenues posted by the segment.

PH's ICT Segment Leads BPO Sector

President Aquino’s speech was delivered by Vice-president Jejomar Binay. It also stated that the factors that propelled the ICT sector are positive views on the local government and institutions as well as the improved quality of the local workforce.

Moreover, President Aquino noted that the efforts geared towards the improvement of the industry can now be seen and that the Philippines is ready for more investments and is under new management.

The President expects 1.3 percent growth in the overall ASEAN gross domestic product, brought about by policies that aim to improve internet use and broadband penetration.

Meanwhile, the Department of Science and Technology (DOST) Information and Communications Technology Office (ICTO) is looking into the challenges encountered by the ICT segment. It is also working on an ICT Industry Development Program to help improve the Filipino workers’ skill and competence level. The better equipped the employees are, the better the service that could help attract more investors to the country, said the President.


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