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.
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.
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.
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.
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.
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.