by: Karen Cayamanda
Market intelligence firm Information Services Group (ISG) said 2014 seems to be one of the strongest years for outsourcing in the EMEA (Europe, the Middle East, and Africa) region.
One of the trends seen this year is that outsourcing went beyond Northern Europe. Year-on-year, the annual contract value (ACV) in France increased by 250%. ACV reached record-highs across the south of the continent.
Also, there is a shift towards getting more out of outsourcing contracts. CIOs are seen moving away from outsourcing simple IT management processes and shifting towards those that will bring about greater value in terms of business alignment. ISG predicted that the outsourcing market will post continuous growth, as businesses begin to regain confidence after the recession.
ISG said outsourcing buyers need to understand how they can get the most out of their contracts and how it would affect the business. It is predicted that this will start to gain momentum in 2015.
According to a survey conducted by consulting and benchmarking agency Aecus, eight out of 10 buyers believed that outsourcing helps them innovate and generate new ideas.
Out of 100 UK outsourcing buyers who participated in the survey, two thirds responded that they offer incentives together with their outsourcing operations to encourage and reward successful innovation. In addition to that, 58 percent believed that they are already equipped with innovative skills and the environment to pave the way for new ideas. Almost half said they are meeting with their provider regularly to talk about innovation.
Paul Morrison, head of outsourcing innovation at Aecus, said within their organization, innovation is defined as the process of creating value by doing things differently - even more so today when budgets are tighter and technologies are constantly developing. What’s important for them is to keep buyers happy through the innovative ideas they get from outsourcing.
The executive pointed out that outsourcing has become crucial to the business outcomes since it provides positivity not only to the buyer-supplier partnership, but the operations as a whole. One of the key perspectives that buyers are looking for these days is digitization - 80 percent responded that they want it in their operations, but only 35 percent have achieved it.
Over 50 percent of the survey participants said they already implemented a multi-channel engagement, while a third are still planning to do it in the next 12 months. As for robotic automation, two-fifths stated that they are planning to do it in the future.
Liberal Party Rep. Roman Romulo of Pasig City, who is likewise the Chairman of the House Committee on Higher and Technical Education, recently said 45 of the Philippines’ largest business process outsourcing (BPO) firms are set to produce over 248,000 new jobs in the next two years. He pointed out that IT-BPO sector is one of the largest employers in the country, and organizations are helping fresh college graduates and unemployed young professionals to find job opportunities.
Romulo also stated that the combined revenues of the top 45 BPO companies operating in the country amount to P250 billion ($5.9 billion) in 2013. Individually, the revenues of the companies included in the list start from P1.963 billion to P32.429 billion:
Romulo also authored the Data Privacy Act of 2012 which aims to protect the confidentiality of personal information collected from clients according to international privacy standards in hopes of encouraging global firms to expand and establish operations in Manila.
The IT-BPO sector directly employs 1.052 million Filipinos. The popular segments under the sector are contact center services, back office services such as medical, legal and data transcription, as well as animation, software development, engineering design, and digital content.
According to the IT and Business Processing Association of the Philippines (IBPAP) which has 229 member-companies, the sector will produce $27 billion in annual revenues and employ 1.3 million Filipinos by 2016.
by: Sarah Joson