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MicroSourcing Driving Business Growth

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MicroSourcing Survey: How outsourcing has helped our clients

MicroSourcing recently conducted a survey on its clients all over the world. It aims to get insights on the impact of outsourcing to their operations and to have a better understanding of how MicroSourcing can help business owners through outsourcing to the Philippines. This survey was initiated by MicroSourcing Australasia General Manager Ash Truscott.

These are some of the highlights: 

  • With technologies such as the cloud, Skype-reliable web, etc., small and medium-sized enterprises (SMEs) are now accessing productive levers that were once the domain of multinationals - tapping affordable and flexible talent from offshore destinations.
  • Offshore staff leasing proves to be a viable solution among businesses as about 43% of SMEs want to grow their operations, and majority (75%) of clients are looking to expand when establishing offshore teams through MicroSourcing instead of replacing staff.
  • Majority of clients (82%) have not downsized home teams, while over 40% are actually expanding their operations.
  • Introducing an offshore team to a traditional structure has its challenges. However, with strong commitment and appetite, the results speak for themselves, as 80% said offshore staff leasing has had a positive impact to their business.
  • Majority of companies that incorporate offshore teams into their structure are adding greater flexibility and accessing affordable talent, fueling the growth/reinvestment cycle of their businesses.


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Survey Says CIOs Optimistic about 2011 Growth

by @ MicroSourcing.com News Feed

A new survey among chief information officers (CIOs) in the US insurance market released today reveals that US CIOs are more optimistic about growth this year, with most executives relying on targeted ITO (information technology outsourcing) and BPO (business process outsourcing) to sustain growth in their companies.

Celent, a research and consulting firm with a focus on global financial services, released its 8th annual US Insurance CIO Survey, covering 32 executives from the property and casualty sectors of the insurance market.

�[The industry] is cruising along and making some progress,� explains Celent consultant Donald Light, author of the report. Among the report's findings are:

-- SOA (service-oriented architecture) and web services have become industry standards;
-- Specialized reliance on ITO and BPO for infrastructure development and maintenance;
-- Combination of core functions from those supplied internally and from vendors; and
-- Emergence of SaaS (software-as-a-service) and social networking.

Light warns, though, that the report does not offer a complete overview of the insurance industry, but rather a confirmation of what their consultancy firm has gathered from their clients.


BPO Workers: Be more Considerate during Typhoon Period

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Employees in the BPO sector appeal for more understanding and sympathy during natural disasters

As the country is currently recovering from the most recent typhoon and southwest monsoon tandem, workers in the business process outsourcing (BPO) sector are asking BPO firms to be more understanding and sympathetic to the health and safety of employees during such harrowing times.

One main concern that was pointed out by the BPO Industry Employees Network (BIEN) Philippines is the attendance requirement of BPO firms during massive flooding.

Ian Porquia, spokesperson for BIEN Philippines said for numerous call centers, the show must go on and employees had to report to work. Moreover, the organization said call centers are very strict with regards to attendance and that failure to comply could lead to termination of an agent.

The organization appealed that they are aware of the consequences of failing to meet the demand of clients, but on days with massive flood and heavy rains, BPO executives should prioritize the welfare of employees.

The Metropolitan Manila Development Authority (MMDA) reported that last Tuesday, nearly 50 percent of Metro Manila, where more than half of the 700,000 estimated BPO employees had to report to work, was flooded.

BIEN is also urging the Information Technology and Business Process Association of the Philippines (IBPAP), to take action and inform member-businesses to ensure the welfare of outsourcing workers during the typhoon period.


PH IT-BPO Climbs 17% in 2013

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Foreign Businesses Prefer the Philippines for IT-BPO

According to Information Technology and Business Process Association of the Philippines (IBPAP), a 17- percent growth in revenues was posted by the information technology and business process outsourcing (IT-BPO) sector of the Philippines last year. It was found that the country is still a preferred destination for foreign companies that are looking to expand operations.

Jose Mari Mercado, IBPAP’s President and Chief Executive Officer, said the IT-BPO sector earned $15.5 billion last year, 17 percent higher than $13.2 billion posted in 2012.

Meanwhile, the sector was seen employing 900,000 last year. In 2012, it employed 777,000.

The executive pointed out that clients have been gradually increasing work sent to the Philippines based on the performance of Filipino workers. Moreover, he noted that the country is the top choice for companies looking for voice services, and is the second outsourcing destination for non-voice services.

For this year, he anticipates that revenues from local IT-BPO sector will be 17-percent strong and will continue to grow. Their target for the number of individuals employed in the sector this year is 1.4 million.

It is anticipated that healthcare is one of the segments that will fuel the growth of the sector.


Ovum Says BPO Sector to Recover in 2011

by @ MicroSourcing.com News Feed

After facing the challenges brought about by the global economic downturn, things are looking up for the business process outsourcing (BPO) sector, as contracts will likely be scheduled for renewal and will open new business opportunities. This is according to global analyst and consulting company Ovum.

New opportunities for BPO sector

In the “2011 Trends to Watch: BPO” report by Ovum, more than 200 BPO contracts, with a total contract value of US$12.2 billion, are set to expire next year. Thirty-one percent of expiring contracts come from the manufacturing sector; 24 percent are from the banking sector. Ovum predicts that because of the contract renewals, the BPO market will see a five percent growth this year, and will grow by 6.3 percent next year.

Ovum principal analyst Patrick O’Brien said companies now have more options when it comes to service providers. According to the report, Middle East and Latin America are positioning themselves as locations for BPO work.



PH Healthcare BPO to Post $1B Revenues by 2016

by @ MicroSourcing.com News Feed

The robust healthcare information management outsourcing sector of the Philippines is anticipated to contribute $1 billion worth of revenues and employ 100,000 Filipinos full-time by 2016.

During the 3rd Healthcare Information Management Outsourcing Services Congress in Makati last Tuesday, the immediate past president of the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), Myla Reyes, said highly-skilled English-speaking talent pool, first-rate telecommunications infrastructure, and economical business solutions in the Philippines could have propelled the sector.  She added that the Philippines is rapidly evolving into a pioneer in the healthcare outsourcing segment.

According to Reyes, the workforce of the industry has gradually increased from 14,000 in 2010 to 24,700 in 2011, and is expected to reach 43,000 this year. Revenues contributed by the healthcare outsourcing sector were also seen growing for the past three years from $102 million in 2010, $277 million in 2011, and is expected to reach $433 million this year.

In fact, the government considers it as one of the top priority growth industries, falling under the IT-BPO division. Programs are geared towards the improvement of the healthcare BPO sector by the Department of Science and Technology and HIMOAP.


Ovum: Asian Governments will Invest in the Cloud this Year

by @ MicroSourcing.com News Feed

This year, government agencies in Asia will be embracing the cloud-based approach to service delivery and outsourcing. This is the IT trend in the recent report from global analyst and consulting firm Ovum.

"Asian governments will continue to invest in local cloud computing capabilities to boost the competitiveness of their ICT industries in the region. However Australia stays asleep at the wheel on the need to link the government procurement and industry development agendas", said Dr. Steve Hodgkinson, Research Director.

Jessica Hawkins, Ovum analyst and author of the report, said agencies will be considering the cloud, though they will remain cautious in terms of privacy and security. Also, IT vendors must be able to help agencies in understanding how this technology can help them. While BPO opportunities, shared services, as well as on-demand access will be �more open in 2011 than ever before�, Hawkins said governments should look into how changes in service delivery can bring efficiency, and not just a way to reduce costs.


PH BPO Workers Influencing Market Trends

by @ MicroSourcing.com News Feed

According to a study done by Nielsen Philippines, business process outsourcing (BPO) employees in the Philippines collectively earning P250 billion per year are said to have changed the market trends in the country.

Stuart Jamieson, Managing Director at Nielsen Philippines, said the fact that BPO employees are earning more than the average Filipino generally influences the market. They are frontrunners in the growing middle-class population and are showing strong signs of purchasing power which is stimulating consumer spending.

Nielsen's Outcall study shows that BPO employees can adjust the way they spend to fit the demands of their job.

Jamieson then advised marketers and entrepreneurs to tap opportunities incited by this large market, one of which is by establishing shops near BPO offices. Examples of these would be fastfood franchises and convenience stores that are highly patronized by call center employees and night shift workers.

BPO employees were also found to consume processed and pre-packed food as it is accessible and can be quickly purchased. Other products include breakfast cereals, gum and hard candies, biscuits, and chocolates.

In the additional data used to complement Nielsen's findings, respondents said they prefer instant food because it can be prepared and consumed easily, whether they are at home or at the office. Candies and gum, on the other hand, help keep them awake during the wee hours of the night. Biscuits are consumed as fillers during breaks and long shifts.


DOST Pledges Support to BPM Industry

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Philippine Outsourcing Industry Supported by DOST

Department of Science and Technology (DOST) Secretary Mario Go Montejo addressed the bullish information technology-business process management (IT-BPM) of the Philippines. He said the local government will continue to support and help in the development of the sector.

The Information and Communications Technology (ICTO), a sub-organization of DOST, recently joined forces with the Information Technology and Business Process Association of the Philippines (IBPAP) and TeamAsia and formed the strategic communications division for the IT-BPM Road Map 2012-2016.

In Montejo’s speech, read by ICTO Deputy Executive Director Monchito Ibrahim, he emphasized the role of the government in helping the sector grow as well as fostering an environment where it will be able to sustain its competitive edge. He added that the entire IT-BPM sector can grow to US$240-250 billion by 2016.

BPM is formerly known as business process outsourcing (BPO), an industry that provides countless opportunities for over half a million Filipinos.

According to Senior Executive Director of the Business Process Association of the Philippines (BPAP), Gillian Joyce G. Virata, the change from "outsourcing" to "management" was done to address the management aspect of the sector, rather than outsourcing.


UK Outsourcing Spending Decreases by 50%

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Outside the United States, UK is no longer the top market when it comes to outsourcing. This is based on a report from outsourcing advisory firm TPI.

UK saw a 24 percent decline in the number of contracts. Its outsourcing expenses reached only �800m in the first three months of 2010. This was 50 percent lower than �1bn spent by Germany and �2bn by France, while Sweden had doubled the total value of outsourcing contracts in the country. This can be attributed to a mega outsourcing deal with a company that was not disclosed by TPI. However, a different report said ABB, a Swedish engineering firm, and IBM signed a new agreement.

�Even though this is only one quarter's results, it does appear that the key countries contributing to Europe's outsourcing performance are shifting to the less mature continental markets," said TPI Emea president Duncan Aitchison.


Asia-Pacific Sees Slow Outsourcing Activity in First Half of 2010

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APAC Posts Lower Outsourcing TCV

The Asia-Pacific region posted a total contract value (TCV) of US$2.3 billion for the first six months of the year. This is significantly lower than 2009’s US$5.5 billion TCV for the same period.

According to TPI Index Asia-Pacific, this can be attributed to the slow outsourcing activity in the region, particularly the significant drop in the number of mega deals and contracts amounting to more than US$200 million, though Michael Rehkopf, partner and director of North Asia at TPI, said the market can still improve the figures. "In order to reach 2009 level, the industry will require a record US$8.7 billion TCV in the second half of 2010."

The region needs to close several mega outsourcing deals worth over US$200 million within the year to reach US$11 billion. While the industry had secured 18 BPO contracts and another 10 deals will be awarded within the year, these are considered small contracts when it comes to calculating TCV.



PH Property Developer Launches 2nd BPO Hub in Cebu

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Two World Center BPO Hub Cebu

Megaworld Corporation recently launched Mactan Newton, a 16-hectare multipurpose development in Mactan Island, Cebu. The site is set to have the company’s second business process outsourcing (BPO) building and is said to be similar to Eastwood City, one of Megaworld’s premier developments in Quezon City, known for a "live-work-play" atmosphere.  

According to Jerico Go, Vice-president at Megaworld, the One World Center, Cebu, is expected to accommodate 2,000 employees. The five-storey building is already leased out and some of the tenants include EnfraUSA and Results Manila.     

Two World Center was launched the same day, and will be established to supply the growing demand for office spaces in the area. At 7,500 square meters, it will have a larger office space than One World Center which only has 6,000 square meters.

Three more 15-storey residential buildings are expected to be launched in three years. The first few floors of these buildings will be occupied by retail stores and will be used for more BPO operations.



DOST Seeks to Improve PH Internet Connectivity

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According to data gathered by Ookla, an Internet broadband testing company, out of 190 countries they surveyed, the Philippines ranked 160th, a dismal position in terms of download speed. In addition to that, they found that the country is on the receiving end of the most expensive service among 64 nations in the median price range with $26.60 per Mbps.

The Department of Science and Technology (DOST) stated that one of the solutions that could help improve the cost of Internet broadband services is to introduce more competition. During a briefing, DOST-Information and Communications Technology Office Deputy Executive Director Monchito Ibrahim said the telecom industry, which is dominated by two providers - PLDT Group and Globe Telecom - needs more players.

He noted that the smaller telecom companies underestimated the growth of the sector. Another issue that is found to affect the slow progress of the telecom provider space is the painstaking process to register for a franchise and the restrictions to foreign ownership. The law has imposed a restriction on foreign ownership for public utilities such as land and other key industries to 40 percent.

Ibrahim stated that the country would need to come up with provisions that will make it easier for foreign telco companies to operate franchises in the country. While others believe that the government is all there is to blame for the slow internet connection speed, Ibrahim explained that the industry's progress has long been in the influences of the private sector from the time of its deregulation back in 1995.

One of the contributors to the economy's growth is the business process outsourcing sector (BPO), but they are not affected by the snail-paced connectivity because they are able to purchase enterprise internet packages that offer larger bandwidth.


Cebu Relies on Anti-piracy Drive to become Global Outsourcing Hub

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The IP Seal campaign was launched in Cebu City as part of the anti-piracy campaign to increase awareness on intellectual property rights (IPR) protection. This initiative also aims to further improve the IT sector and boost the position of Cebu as a major outsourcing hub.

According to Nelia V. F. Navarro, Department of Trade and Industry (DTI) Cebu provincial director, IPR protection is crucial in improving the IT sector to attract more investors. "There's a positive correlation between growth in trade and intellectual property rights protection. Investors want to go to countries where there are legal remedies when IP rights are infringed," Navarro said.

The IP Seal is given to businesses that support IPR protection efforts and use only licensed software. According to Numeriano Rodriguez, Jr., IP Coalition secretary-general, the IP Seal means that the business respects and adheres to the IPR laws of the country.


Gartner Reports 2010's Top 10 BPO Locations in Asia Pacific

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Philippines Named as one of Gartner's Top 10 Outsourcing Locations in APAC

India is still the number one location of choice for offshore IT and business process outsourcing (BPO) services, followed by China. This is according to the latest research “10 Leading Locations for Offshore Services in Asia Pacific and Japan for 2010” by global IT research and advisory firm Gartner. Australia, New Zealand, Singapore, Malaysia, Indonesia, the Philippines, Thailand, and Vietnam also made it to the top 10 list.

“Countries such as Malaysia, the Philippines, and Vietnam have continued to strengthen their position against leading alternatives, while Indonesia has entered the top 10 for the first time,” said Jim Longwood, Gartner research vice-president. “Some of these countries have invested considerably and leveraged increased demand for lower-cost services. The global financial crisis forced many organizations to place a greater emphasis on cost optimization.”

These countries were ranked based on the following factors: language, government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, globalization and legal maturity, and data and intellectual property security and privacy.




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Sec. Roxas Lauded for �Turning Point� of PH IT-BPM

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In his speech during the recent IT-BPM summit, President Benigno Aquino III lauded Department of Interior and Local Government Secretary Manuel "Mar" Roxas II for the success of the IT-BPM (information technology and business process management) sector of the country. Roxas became Interior Secretary in 2012 after his term as the Secretary of Trade and Industry.

Pres. Aquino pointed out that during the early stages of IT-BPM in the country, the Philippines only employed a few thousand workers and posted annual revenues of a few million dollars. He also said no one took action in maximizing the benefits of the sector. The "turning point" led by Roxas fuelled the sector and resulted to success after success and growth. The IT-BPM sector has greatly evolved over the last 10 years, and sustains its bullish streak. He added that the partnership between public and private organizations, and the skilled, English-speaking workforce reinforced the country's position in the global IT-BPM space.

Pres. Aquino also cited major IT-BPM milestones such as Manila taking the second spot in the 2014 Tholons Top 100 Outsourcing Destinations Report. Cebu, Davao, Sta Rosa, Bacolod, Iloilo, and Baguio were likewise included in the list. Also, the employee count of the sector hit the 1-million mark this year.


DTI Supports PH Reps in CommunicAsia 2014 Summit

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2014 CommunicAsia Summit

In an effort to boost the Philippines’ image as one of the e-services hubs and global position in the information technology and business process management (IT-BPM) in CommunicAsia 2014, the Department of Trade and Industry (DTI) through the Philippine Trade and Investment Center (PTIC) in Singapore expressed their full support to the country’s representatives.

DTI Undersecretary Ponciano C. Manalo Jr. said as the Philippines is set to participate in Asia’s largest integrated information and communications technology (ICT) exhibit, the country will be able to showcase its position in high-value IT-BPM processing space which includes applications and software development, creative content and game development, and big data and business analytics.

The event is scheduled from June 17-20 at the Marina Bay Sands in Singapore. The representatives to the summit will be led by the Department of Science and Technology-Information and Communications Technology Office (DOST-ICT Office), the main agency for government-driven ICT efforts, as well as the Information Technology and Business Process Association of the Philippines (IBPAP), the main organization of the IT-BPM industry in the Philippines.  

Some of the key segments that will be showcased in the event are information technology, cloud computing, mobile, wireless solutions, broadband, managed services, internet, IT-enabling services, data center, international gateway facility (IGF) services, contact center services, back office, data processing solutions, and employment screening services.

Meanwhile, DOST Undersecretary and ICT Office Executive Director Louis Napoleon C. Casambre said the DOST-ICT Office is continuously striving to enable local innovative ICT companies to become globally competitive and to make them more attractive to foreign investors. He added that through CommunicAsia 2014, he’s hoping that there would be more opportunities for the Philippines and that it would become a major ICT hub.

Manalo then noted that as the Philippines maintains its image as the leading e-services hub of Asia with its existing cyber parks and IT companies, it remains as a key outsourcing services provider for companies based in the US, Japan, and Europe.


BPAP, CHEd Form Partnership to Improve Talent Supply

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The Business Processing Association of the Philippines (BPAP) and Commission on Higher Education (CHEd) recently sealed a five-year partnership by signing a Memorandum of Cooperation at Eastwood City Cyberpark, Quezon City. Both groups pitched their proposal that could help future graduates land a job in the IT and business process outsourcing (IT-BPO) industry. The proposal aims to revise college curricula, develop a training program for teachers, and provide a tool to evaluate the skills of graduates.

Improvement in HR processes to help achieve IT-BPO goals

Due to the issues in the quality of the country’s talent pool, it is stressed that improvement in human resource processes will definitely help achieve IT-BPO’s medium-term goals. The 2016 Road Map aims to create 4.5 million jobs and generate $25 billion in revenue. BPAP Chairman Alfredo I. Ayala is confident that working with CHEd will greatly help BPAP efforts in addressing talent issues of the BPO industry.

Meanwhile, CHEd Chairperson Patricia B. Licuanan pledged full support to the industry, saying that it will help create jobs and eventually alleviate poverty. She added that this partnership can provide more opportunities for graduates so they will no longer have to leave the country to get better jobs abroad.

According to BPAP External Affairs Executive Director Martin Antonio S. Crisostomo, the proposal also states that students, whatever course they are taking, can include “BPO 101” in their core curriculum. They are likewise allowed to take service management as their minor course and can be trained for the BPO culture, finding solutions, and other analytical skills.


Indian outsourcing facing difficult times

by @ MicroSourcing.com News Feed

After consistently posting double-digit growth in recent years, the Indian BPO industry has hit a rough patch with its leaders further predicting difficult years ahead. India's revenues have dropped sharply amid a global economic recession that, according to Richard Gordon, head of global forecasting at Gartner consultancy, has yet to fully take effect: "The full impact of the global recession on the IT services and telecommunications sectors is still emerging."

Top Indian outsourcing body, Nasscom (National Association of Software and Service Companies), has predicted 4 to 7 percent growth � far below the initially predicted 16% from last year, and the 30% rise it posted regularly in the past.

"Worldwide information technology spending growth is expected to come down further in 2009 and 2010," said Som Mittal, head of Nasscom.

Noshir Kaka, director and global leader for outsourcing and offshoring practice, McKinsey & Company, cites new business models and focusing on new areas such as healthcare as possible solutions for the slump.


RP 29 largest BPOs generate $2 billion

by @ MicroSourcing.com News Feed

According to Catanduanes Rep. Joseph Santiago House Information and Communications technology, the 29 largest business process outsourcing (BPO) service providers in the Philippines reported combined revenues of P94.4 billion in 2008. The number is a 21% increase from the P78.3 billion reported the previous year.

The 29 major providers on the list were mostly contact center driven; with Customer Care Management Philippines Inc. (P8.1 billion), Convergys Philippines Services Corp. (P8 billion),  and eTelecare Global Solutions Inc. (P7.9 billion) posting the highest revenues. The 29 companies are among 400 other outsourcing providers in the Philippine outsourcing industry with annual revenues between a few million pesos to 1 billion, Santiago noted.

�The Philippines has definitely secured its position as a leading player in the global BPO market, judging from the sustained double-digit revenue growth of the local branches of mostly multinational BPO providers,� he said.  


PH Economy Seen to Grow 6% Annually up to 2020

by @ MicroSourcing.com News Feed

Research firm IHS Global Insight expects the Philippine economy to post gross domestic product (GDP) growth of about six percent annually from this year until 2020.

IHS Global Insight Asia-Pacific Chief Economist Rajiv Biswas said the country will be able to continue its growth streak until 2020 if the next administration will still aim for economic reforms and strengthen institutional governance. Biswas added that under President Benigno Aquino III's term, the economy posted an average of six percent growth.

According to estimates by the research firm, the country's economy could reach $700 billion by 2025, and even $1 trillion by 2030. This year, it is expected to post $300 billion. With these figures, Biswas said the Philippines will be one of the leading emerging markets in the region.

As the IT-business process outsourcing (BPO) industry continues to grow and remains a key revenue-generator for the economy, the country's GDP growth rate is expected to reach an average of 5.3 percent between this year and 2025.

In 2015, the BPO industry posted $22 billion in revenues and employed 1.2 million direct workers.  This year, it is expected to reach $25 billion and add more than 200,000 job opportunities, especially with the rapid growth of the healthcare sector.


PH Dethrones India as No. 1 BPO Destination

by @ MicroSourcing.com News Feed

The Philippines is now the global leader when it comes to business process outsourcing (BPO) and shared services, overtaking India for the first time in these business support functions. This is according to the 2010 Annual Report - Global Location Trends by IBM.

Both India and the Philippines offer similar business environments. However, labor costs in the latter have not increased as much compared to India.

According to the Contact Center Association of the Philippines (CCAP), the country has also become the call center capital of the world, employing 350,000 call center employees. Voice outsourcing accounts for 70 percent of the country's outsourcing industry.

Here's the list of leading BPO destinations based on the report from IBM:

1. The Philippines
2. India
3. United States
4. Poland
5. China
6. Britain
7. Columbia
8. Costa Rica
9. Fiji
10. Ireland
11. South Africa
12. Sri Lanka
13. Hungary
14. Australia
15. Egypt
16. Chile
17. France
18. Canada
19. Singapore
20. The Netherlands


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Positive Outlook Seen for PH Economy

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Japan Credit Rating Agency Ltd.  recently released a statement affirming its �BBB' score for the Philippines. The agency pointed out that the ratings mirror the resilience of the Philippine economy against external shocks, its strong consumption reinforced by remittances from overseas Filipino workers (OFW), and the nation's continuously improving financial capability.

But the agency also noted that there are still drawbacks brought about by the country's unstable investment environment. For instance, the country still lacks certain improvements in infrastructure. However, roads are being constructed which improve the accessibility of provinces.

In line with that, JCR predicts that the growth of the Philippine economy will go beyond six percent this year due to strong domestic demand. Moreover, it anticipates that enhanced tax collection productivity and validation of fiscal rewards will aid in improving the fiscal position of the Philippines.

As for surplus in balance of payments, the robust inflows of OFW remittances and revenues from the business process outsourcing and tourism sectors help buoy the country's expenses.

JCR also advised that for the country to sustain a positive economic growth rate, it would have to develop its infrastructure and improve the investment environment. The firm said they would be keeping an eye on how the Philippine government will act on the challenges and how much the situation would improve.


Buyers Taking Slow Approach to Outsourcing

by @ MicroSourcing.com News Feed

Outsourcing Buyers Taking their time in Making Decisions

According to 1Q10 Advisor and Business/IT Service Provider Pulse Survey by EquaTerra, buyers recognize that outsourcing can reduce costs, but are “slow, deliberate, and risk averse” and are cautiously weighing their options. This leads to delay in outsourcing deals.

“They [buyers] understand the problems and are painstakingly sorting through solutions and weighing options. Many are faced with reduced staff to support new projects, further stalling the process,” said Stan Lepeak, managing director of global research for EquaTerra. 

Other key findings include:

•    Forty-six percent of EquaTerra advisors cited increased demand in BPO/ITO. This is an eight percent decline quarter-over-quarter and three percent for the year.
•    Forty-six percent of service providers said the economic condition is still a major factor in outsourcing. This is an eight percent increase year-over-year but 10 percent lower compared to last quarter.
•    Sixty-four percent of service providers expect increase in current contract scope. This is 20 percent lower quarter-over-quarter and 21 percent for the year.



PH ICT-BPO Firms Urged to Join ICT Awards

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ICT Awards for the Philippines' top BPO Providers

With the upcoming 9th International ICT Awards Philippines, information communication technology and business process outsourcing (ICT-BPO) companies in Davao City are urged to participate in the event.

The annual event seeks to recognize the most promising and innovative information technology-business process management (IT-BPM) organizations in the country.

The event is headed by the Canadian Chamber of Commerce of the Philippines (Cancham), together with the Information Technology and Business Process Association of the Philippines (IBPAP).

In a press conference, Cancham President Julian Payne said they look forward to getting more entries and nominations from Mindanao-based or Mindanaoan-owned ICT-BPO companies for the awards. They also expect nominations from upcoming ICT hubs such as Cebu City, Bacolod City, Dumaguete City, and Cagayan de Oro City.

Payne also said they will be rolling out promotional campaigns in Cebu City and Davao to reach out and educate more people about the event. Other cities, through their specified business chambers, are expected to attend the event.

The promotional campaign is scheduled until November 25, which is the official launch of the opening for nominations and self-nominations. Nomination period is open until January 2015.


CBRE: Global Interest for Office Space in PH Remains High

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PH Real Estate Industry Driven by Miltinational Firms and BPOs

Real estate services and consultancy agency CBRE Philippines recently said the Philippines is one of the countries with rising occupancy rates, and it continues to draw strong interest from multinational companies including business process outsourcing (BPO) firms.

CBRE Global Research found that the cost for premium office properties had increased an average of 2.3 percent globally since 2000. Their report also noted that the Philippines is one of the top 12 out of 52 countries with the largest annual increase in real estate rates with an estimated 9.3 percent. In addition to that, it is found that within Southeast Asia, it is among the top five growth markets when it comes to rising prime office rates.

Factors that are considered in computing the annual percentage increase are domestic costs of prime office take-up and sheer volume - graded within a 12-month percentage increase which started in the first quarter this year.

However, CBRE stressed that even with the rising rates for prime office in the Philippines, it is still one of the most competitive in Asia with $35.90 per square foot per annum. The cities listed in the report as having the most expensive office properties are Mumbai, New Delhi, Hong Kong, Beijing, Tokyo, Shanghai, Singapore, Guangzhou, Ho Chi Minh, Brisbane, and Taipei. Rates in these cities are from $66 to $241.92 per square foot annually.

CBRE Chairman, founder, and Chief Executive Officer Rick Santos said the country is ready to accommodate multinational companies that are looking to expand, as well as potential clients in the business process outsourcing (BPO) sector.


European Firms Expected to Expand PH BPO Operations

by @ MicroSourcing.com News Feed

As the Philippines' business process outsourcing (BPO) industry shows significant growth, European BPO players will likely expand their outsourcing operations in the country, according to Guy Ledoux, European Union Ambassador to the Philippines.

Considered as the number one outsourcing location of choice for voice-based processes with more than half a million in the workforce as of 2011, the Philippines is poised to grow by 20 percent this year despite the anti-outsourcing efforts in the US. With this growth, Ledoux said European companies, which make up 10 percent of the total number of firms with BPO operations in the country, are predicted to expand as a means to be more competitive.

In addition to expansion in the BPO sector, the EU Ambassador said European firms are looking into renewable energy sources, stating that renewable energy comprised 70 percent of Europe's new power generation capacity in 2011.

Ledoux said when it comes to foreign funds, how attractive the Philippines' business climate is to investors matters more than the current state of the European economy. Both Europe and the Philippines are exerting efforts to ensure that the flow of EU investments to the country will remain strong.


RP BPO Expects 26% Growth Rate this Year

by @ MicroSourcing.com News Feed

From a 17 percent increase posted in 2009, the business process outsourcing (BPO) sector is eyeing a growth rate of 26 percent this year.

According to Ray Anthony Roxas-Chua, chairman of the Commission on Information and Communications Technology (CICT), the sector earned $7.2 billion last year, and demand for outsourced work is increasing as global economy continues to bounce back from the recession. "This year, with the global economy coming back, we're expecting a growth of 26 percent. We're building a name for ourselves as a preferred offshore destination," Roxas-Chua said. He added that the country needs to focus on developing talent to stay competitive.

As for the proposed US bill that will impose tax on customer service calls and encourage firms to bring call center jobs back to the US, Roxas-Chua is confident that it would not push through as many American companies will not support it.


BPOs Continue to Flock Ortigas CBD

by @ MicroSourcing.com News Feed

Sheila Lobien, Director and Head of Project Leasing at real estate services agency JLL Philippines, shared that the Ortigas Central Business District remains as one of the preferred hubs for business process outsourcing (BPO) firms because of its accessibility and availability of large talent pool.

The executive added that the numerous commercial establishments such as malls, restaurants that operate 24/7, and other places for leisure make Ortigas a strong contender in the BPO marketplace. It is likewise close to different types of transport since it is near Manila's main roads like Ortigas Avenue, Shaw Boulevard, and EDSA.

New BPO-ready office towers like the 26-storey Robinsons Cyberscape Alpha continue to sprawl in the area. These types of offices are attractive to BPO locators because of the modern design and advanced infrastructure. In terms of office space, buildings like the Cyberscape Alpha have 2,033 square meters, perfect for companies that are looking to expand and maximize space

Superior real estate solutions in the rapidly growing BPO sector have been increasing at an average rate of 20 percent annually. Lobien pointed out that seven towers offering a total of 150,200 sqm of office space supply were launched this year, and almost 70 percent or 105,500 sqm are already reserved.

As for price points, the average rent for office space in Ortigas is P625/sqm per month, which is more economical compared to Makati CBD and Bonifacio Global City's rates starting from P850 to P1,200/sqm monthly.


'RP BPO workers should take graduate studies'

by @ MicroSourcing.com News Feed

Consulting firm Watson Wyatt Worldwide said there is a need for Filipinos working in the business process outsourcing industry to take graduate studies since other countries might surpass the position of the Philippines in the world of BPO.

“The Philippines has an excellent supply of graduates of college degrees, but it does not have an excellent supply with professional degrees, or those with master’s degree,” said J. Michael Orszag, head of research at Watson.

BPO sector needs more graduates

While the country produces a lot of graduates every year, he said the BPO sector needs more in the future, and workers must have management skills. It is also necessary to urge workers to aspire for managerial positions.

Orszag added that the country must focus not only on how to stay afloat amidst the current economic downturn but also on long-term solutions such as addressing the problems on education and infrastructure.




RP Bids to be Global Leader in Creative Process Outsourcing

by @ MicroSourcing.com News Feed

Philippines Expected to Lead Creative Process Outsourcing

With the talent and skills of Filipinos in the fields of animation and creative design, the Philippines is now targeting to take the lead in the global industry of Creative Process Outsourcing (CPO). This is according to Weng Bagadion, President of the Animation Council of the Philippines.

“I am personally advocating to the various agencies like BPAP [Business Processing Outsourcing of the Philippines], DTI [Department of Trade and Industry], and DFA [Department of Foreign Affairs] that the Philippines should claim CPO. We want our own brand of animation. If one is familiar with Maslow’s hierarchy of needs, the Filipino industry has matured to a point where we are now seeking for self-actualization,” Bagadion said.

Aside from the innate talent in creative design, Filipino workers are also proficient in English and they deliver high quality outputs at lower costs.

CPO encompasses a wide range of fields including animation, game development, industrial design, film, advertising, photography, publishing, and corporate communication.






Bill Proposed to Protect PH BPO Workers

by @ MicroSourcing.com News Feed

Kabataan Party list Representative Terry Ridon recently proposed the House Bill 1180 or the Workers' Welfare and Protection Act of 2013. The bill is set to protect the rights of Filipinos working in the business process outsourcing (BPO) sector.  

If the law is ratified, it will pave the way for additional benefits which cover issues and work-related problems that are common in the BPO sector.  

Ridon cited regularization issues for employees who have been with a company for more than six months or have passed the prescribed probation period. He said some companies use various strategies to avoid granting workers their regularization contract.
Moreover, Ridon said this would be the third time they petition for this bill to be approved. He anticipates support not only from call center owners but also from executives because he believes it will help in the productivity of employees and minimize a business' attrition rate. 

Ridon noted data from the Labor Organization study created in 2010, stating that globally, the Philippines is the second largest BPO destination with revenues amounting to $13 billion and a workforce of 700,000 Filipinos in 2012.

However, for 2013, it is projected to contribute $15 billion in gross revenues and employ 1 million Filipinos.



PH Stays Resilient despite Lower Costs from Competitors

by @ MicroSourcing.com News Feed

Despite the ongoing threats from competitors offering services at lower costs, the Philippines is still recognized as the preferred destination for call center operations and healthcare services.

According to Benedict Hernandez, President of Contact Center Association of the Philippines (CCAP), the country's strong brand reinforced its position in the contact center space. He added that the country's key strengths such as excellent English communication skills, genuine aspiration to deliver, and affinity with Western culture make it an ideal outsourcing destination.

Moreover, Hernandez said strong peso versus the dollar can hurt the local industry because it makes services in India even less expensive. He added that a weaker peso is more favourable.

Meanwhile, H. Karthik, Everest Group Vice-president for global sourcing and one of the 62 CEOs who attended the CEO Forum at the International Contact Center Conference and Expo (ICCCE) 2013 in Cebu, said non-voice and IT processes are the segments affected by the weak peso. However, he said the Philippines has competitive advantage in skill, cultural affinity, and quality.

The executive noted that contact centers in the Philippines should offer differentiated services and become more economical to maintain its top position.


PH BPO Sector to Post 15% Revenue Increase this Year

by @ MicroSourcing.com News Feed

The business process outsourcing (BPO) sector of the Philippines is considered as a key contributor to the growth of the local economy. This is because it is a source of foreign currency earnings and it makes the country an ideal investment destination. However, competition is getting tougher as nearby countries such as Vietnam, Malaysia, and Indonesia are gaining traction in the BPO space in Southeast Asia.    

Seven of the Philippines’ thriving cities were recently included in Tholons’ "2013 Top 100 Outsourcing Destinations". Manila ranked second and Cebu is steadfast at 8th place. The rest of the Philippine cities were newcomers in the list: Santa Rosa, Davao City, Bacolod, Baguio, and Iloilo.    

BPO sector one of the main sources of the country's export earnings in hard cash

These cities, as well as the emerging ones, are contributing to the growth of the economy by means of the services exports that they deliver to companies abroad. According to a report from Bangko Sentral ng Pilipinas (BSP), the outsourcing sector was one of the main sources of the country’s hard cash in 2013 with export earnings of $13.3bn.

Meanwhile, the tourism industry posted earnings of $4.8bn, which is much less compared to the $22.5bn foreign exchange receipts from the overseas Filipino workers’ remittances.

Moving forward, the IT and Business Process Association of the Philippines anticipates that 120,000 new jobs will be created in the country’s BPO sector over the next three years, making the total of 1.3 million. Revenues, on the other hand, will double, reaching $27bn as international investors expand their operations.


In-house SEO vs. SEO Outsourcing: What is best for your company?

In-house SEO vs. SEO Outsourcing: What is best for your company?


We discuss the benefits and common challenges of managing SEO in-house, as well as for SEO outsourcing and in-sourcing of SEO function.

RP targets $5 billion outsourcing market in Japan

by @ MicroSourcing.com News Feed

The Philippines is gearing up to earn a piece of the $5 billion outsourcing industry in Japan according to the Commission on Information and Communications. This is part of an effort to grow from other locations other than the recession-plagued US, which currently occupies the majority of local BPO operations. Europe, New Zealand, and Australia are also locations that are said to have a high potential for future BPO investments.

�We are continuously looking for new markets and we have identified Japan, Europe, Australia, and New Zealand as possible markets,� said CICT commissioner, Mon Ibrahim. He also noted that the Philippine BPO sector has grown despite the global economic meltdown; with emerging cities Metro Cebu, Laguna, Cavite, Bacolod, and Cagayan de Oro among others establishing a presence in the industry.

�This year, there are 100,000 to 150,000 jobs available and it's just a matter of qualified applicants,� Ibrahim said regarding the problem of a lack of qualified applicants due to a lack of English and computer literacy among graduates in the provinces.

BPO service exports are expected to reach $7.5 billion to $8 billion from only $6.1 billion last year.


Tholons Cites Talent Shortage, Retention as Issues in SE Asian BPOs

by @ MicroSourcing.com News Feed

Global consultancy firm Tholons stated in its recent study that business process outsourcing (BPO) firms in Southeast Asian countries should focus more on the talent pool shortage as this is vital to IT-BPO and development of the services outsourcing industry. This became more evident as the economic downturn continues to paralyze the US and UK markets, which are then motivated to outsource.  

Recruitment for employees with skills needed in the industry and employee retention were some of the major challenges faced by BPO companies. Tholons also said that to address these issues, service providers exert more effort in training their recruitment teams, as well as in improving the skills of new hires. These, however, incur more costs. 

Training programs for skills development initiated in Manila, for instance, are crucial to the growth of the country's workforce. One of these is the Finishing Courses for Call Center Agents program that is being provided by the Technical Education and Skills Development Authority (TESDA) of the Philippines. 

Moreover, Tholons predicts that current niche specializations will grow and prime the region to providing high-end services.

According to Tholons, the Philippines still reigns in the call center services arena. Malaysia and Singapore, on the other hand, are the top providers for financial and accounting outsourcing and back-office process outsourcing, while Vietnam and Indonesia have made a mark in IT outsourcing.  

Meanwhile, Business Processing Association of the Philippines (BPAP) said the local BPO industry contributed $11 billion in revenues in 2011 and is projected to grow 20% this year. It is also expected that the sector will post $25 billion in revenues by 2016.


Higher Salary Proposed for BPO Graveyard Shift Workers

by @ MicroSourcing.com News Feed

House Bill 4414, which aims to give business process outsourcing (BPO) employees higher graveyard shift pay, was recently filed before the House of Representatives.

The proposed bill is expected to give a 10-25 percent increase on top of the the basic salary of BPO employees who are scheduled to work during the graveyard (10pm-6am) shift.

According to Maguindanao 2nd District Rep. Zajid Mangudadatu, with the numerous risks that BPO workers face during the graveyard shift, proper compensation should be given. He cited the stress experienced by call center agents who deal with angry customers on a daily basis. They are also pressured to make a sale and address other concerns. Likewise, the late work schedule is known to affect the well-being of an employee.

With the success of BPO companies and the advantages these organizations receive because most of them are owned and operated by foreigners and are in PEZA-accredited locations where tax benefits are abundant, Mangudadatu believes that a salary increase is acceptable.

The bill also aims to implement the salary increase in the entire BPO industry of the country, which includes firms operating in information technology centers or accredited by PEZA.


Outsourced Work not Included in India's Data Privacy Rules

by @ MicroSourcing.com News Feed

India's new data protection and privacy rules, which involve asking for a written consent to collect data, do not apply to personal information from clients that outsource work to the country. This is according to CEO Kamlesh Bajaj of the Data Security Council of India, a company established by IT body National Association of Software and Service Companies (Nasscom) to set data security and privacy standards for outsourcing players.

Based on the new Information Technology Rules 2011, companies need to get a written consent to individuals that they would be collecting personal information. Bajaj said the government will soon clarify that the rules do not cover personal data from companies in other countries.

On the other hand, analysts think the country had gone overboard when it comes to implementing stringent data privacy rules to impress outsourcing buyers and investors. According to London-based law firm Lawrence Graham LLP, the new rules posed concerns on how this initiative could be implemented. Also, companies that outsource work to India need to look into their practices in collecting data to ensure that these are in accordance to India's own data privacy rules.


BPO Jobs Primed for Skilled Graduates

by @ MicroSourcing.com News Feed

During the recent ICT-BPO Industry Forum for Educators at SPi Global in Dumaguete City, the outsourcing sector emphasized an optimistic outlook regarding employment opportunities for the graduates of Higher Education Institutes (HEIs) in Dumaguete City, said ICT Dumaguete Board Secretary Danah Fortunato.

The goals of the forum were to identify the favourable contributions of HEIs to business process outsourcing (BPO) companies in the city and encourage HEIs to work with each other. Also, it highlighted the efforts of BPOs in matching the skills of graduates with what is required in the industry.

According to Randolf Bandiola, ICT Dumaguete president, ICT-BPO jobs have definitely diversified since 2010. Copyediting, customer management, graphics, animation, web design, software programming, architecture, market research, medical transcription, and engineering are some of the services that have been added over the years.

Companies that focus on non-traditional processes such as legal research and accounting are also studying the city's capabilities for handling such processes.

Meanwhile, Negros Oriental's economy, which is more focused on agriculture, can be more advanced and information-based by means of outsourcing, said Guest Speaker Dr. Jeff Sallaz, Fulbright Scholar and Professor of Sociology at the University of Arizona.

Sallaz said foreign investments brought on by BPOs from 2000 to 2010 can be the answer for the lack of investment and manufacturing growth in the 70's and 80's. He added that BPO is a refreshing source of income for an economy that depends on agriculture and remittances. He also predicts that the number of employees in BPO will likely increase from 500,000 in 2010 to 1.3 million by 2016.


EMEA Outsourcing Market Posts 15% Growth

by @ MicroSourcing.com News Feed

According to a report released by consultancy firm Information Services Group (ISG), the IT outsourcing market in the EMEA (Europe, the Middle East, and Africa) region increased 15 percent this year, wherein the overall IT support industry is valued at an estimated �3.5 billion (�3 billion).

ISG's study also stated that the number of outsourcing deals this third quarter is the second highest of all time, with 2011's Q3 taking the top spot.
The segment identified to have had the most IT outsourcing activity and is responsible for �1.32 billion in outsourcing revenues is the financial services sector.

Other segments cited by the report are manufacturing which came in second with �970 million, travel, transport, and leisure (�840 million), energy with �710 million, and business services posting �290 million.

The future of the IT is predicted to be positive as its stock rose continuously ever since the economies collapsed all over the world.


Economic Growth Seen as PH Enters New Demographic

by @ MicroSourcing.com News Feed

With the opening of a new demographic for the Philippines, the local economy is expected to grow and more opportunities will be made available for job seekers.

The demographic window is predicted to last from 2015 to 2050. The United Nations defined it as a period when majority of the population is within the working or productive ages of 15 to 64. It is also when citizens aged 65 and above are less than 15 percent, and those who are 15 years old and below comprise only a maximum of 30 percent.

The information technology and business process outsourcing (IT-BPO) industry and the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) are expected to sustain these job opportunities.

Zedric J. Matubis, Vice-president for retail sales of Philam Asset Management, Inc. (PAMI), said whenever a job is a created in the BPO industry, 2.5 more are made available. This is the multiplier effect. He added that the 2.5 factor falls under the economic growth prospects category since it contributes to the food services and retail industry of the country.
In a study done by the Philippine Statistics Authority, they projected that the population will grow to nearly 103 million by next year and 44 million are in the 15-64 age bracket. Matubis pointed out that since half of the population will be earning, it will result to a higher level of economic growth.

The Information Technology and Business Process Association of the Philippines (IBPAP) said the IT-BPO industry posted one million employees during the first half of 2014. It is expected to increase at least 120,000 every year.


EMEA Region Posts Record Outsourcing Growth in Q2

by @ MicroSourcing.com News Feed

A healthy level of outsourcing activity was seen in the Europe, Middle East & Africa (EMEA) region in the second quarter. This is according to market intelligence and advisory services company Information Services Group (ISG) in its EMEA ISG Outsourcing Index™.

Record-high outsourcing growth

Based on the index, 169 outsourcing deals worth €2.2 billion were awarded to the EMEA region. This is 23 percent higher than the annual contract value (ACV) posted in the previous period. This is also one-third more than the number of contracts.

There may be a record-high outsourcing activity in the second quarter, but the region still fell short compared to figures posted last year. ACV in the second quarter was 12 percent lower than what was posted in the second quarter last year. Compared to last year’s first six months, ACV posted in the first half this year was lower by 21 percent.

The market seems to be shifting to getting smaller deals, as the strong activity in the second quarter posted only two mega outsourcing deals (contracts valued at €80 million or higher). ISG North Europe Partner and President John Keppel said the market has moved to awarding a high number of contracts with lower ACV in recent years.





Google Moves to Encrypt All Search Activity, Except for Ad Clicks

by 365outsource_admin @ 365Outsource.com

Google started encrypting searches for all users logged into their Google accounts two years ago, and for searches done through the Chrome omnibox earlier this year. This month, the company confirmed that they are “now working to bring this extra protection to more users who are not signed in.” Secured or encrypted searches withhold search…

The post Google Moves to Encrypt All Search Activity, Except for Ad Clicks appeared first on 365Outsource.com.

HTTP vs HTTPS: What’s the Future of Modern Web and SEO

by Nikolay Stoyanov @ NikSto.com

Switching from HTTP to HTTPS is definitely among the hot topics of 2017. If your haven’t migrated from HTTP to HTTPS protocol this article is definitely for you. I bet you’re wondering if adding security to your domain will have any benefits. Will it improve your SEO? Will it make your visitors happier? I will answer... Continue reading

The post HTTP vs HTTPS: What’s the Future of Modern Web and SEO appeared first on NikSto.com.

IT Budgets in Asia-Pacific Expected to Grow in 2012

by @ MicroSourcing.com News Feed

According to a report done by independent industry analyst and consultancy firm Ovum, 53% of insurers in the Asia-Pacific region are eager to increase internal and external IT budgets for 2011/2012. This is 6% higher than in 2010-2011 period.

Ovum's Insurance Technology Principal Analyst Barry Rabkin said, �Coming out of the post-financial crisis economic situation, the Asia-Pacific region is in a growth mode. Although Asia-Pacific insurers are struggling with having more insurance business operating systems than they want, they are planning to increase IT budgets in 2012.�

The report also showed that 51% of Asia-Pacific insurers use business process outsourcing (BPO), while 56% use information technology outsourcing (ITO) for IT work such as network services, desktop management, IT security, applications development, and application management. Asia-Pacific insurers are also seen to cash in on the web 2.0 market place such as service-orientated architecture (SOA), software-as-a-service (SaaS), and rich Internet applications (RIAs).

Rabkin said outsourcing service providers need to closely watch those who are not confident about outsourcing and those who intend to bring certain processes back in-house. He added that this is a good time for an insurance company in Asia-Pacific, considering that the region is growing and insurers are willing to increase their IT budgets. They are also open to adopting new technologies such as the Cloud. In fact, 43% said they have deployed or are looking into the adoption of this technology.


Study Shows more IT Leaders are Unhappy with Outsourcing Deals

by @ MicroSourcing.com News Feed

IT Leaders not Happy with their Outsourcing Contracts

In a report done by sourcing advisor Alsbridge plc, it was revealed that 76 percent of IT executives are considering changing the terms of their outsourcing contracts.  It was also found that 26 percent are unhappy with at least two of their ITO contracts, 40 percent are still waiting for the confirmation of the details after signing the deals, and 47 percent said they often have disagreements with IT providers during renegotiations.

Meanwhile, amidst the fewer number of dissatisfied IT leaders, there are some who are searching for better deals.

One of the reasons for the dissatisfaction is the countless conditions that were soon found to be ineffective. Meanwhile, others said they want to change the contract to keep up with the trends in technology.

Also, during the course of the outsourcing contract, the client will end up paying more than what is initially allotted for the contract. Revenues were likewise seen falling short, which is usually seen in the public sector.

Even with the large number of unhappy customers, outsourcing is still considered as an effective tool as 53 percent said they will renegotiate and only one fourth plan to switch to a new supplier. However, 61 percent were unsuccessful in renegotiating with their existing provider.


Job Opportunities for Nurses in the Philippine BPO Industry

by @ MicroSourcing.com News Feed

More Opportunities for Nurses in the Philippine BPO Industry

Thousands of unemployed nursing graduates may consider working for business process outsourcing (BPO) companies in the Philippines, where they can perform jobs that are related to their educational background.     

According to Fe Agoncillo-Reyes, assistant secretary of the Department of Trade and Industry (DTI), a New York-based company, Aetna Insurance, has a unit in the Philippines called EXL Service Philippines. This company, which started out with 250 nurses at an office in SM Mall of Asia, is now looking to hire 1,000 nurses to provide basic clinical support like assessing and approving insurance claims. Other services include calling home-care patients based in the US.  

The healthcare BPO sector provided jobs to 14,000 healthcare professionals in 2010, and produced $102 million in revenue, an 11% increase from 2009. Today, medical transcription is no longer the solitary work available in the healthcare BPO sector according to the Healthcare Information Management Outsourcing Association of the Philippines (formerly Medical Transcription Industry Association of the Philippines Inc.), Reyes added.

In line with this, the sector is preparing for the increasing demand for healthcare services in the United States due to changes in US healthcare regulations.

On the other hand, Business Processing Association of the Philippines (BPAP) reported that the Philippine IT-BPO industry grew 26 percent in 2010 to $8.9 billion and employed 525,000 professionals. BPAP also projected a 15% baseline increase in the next few years. The projection would then account for 900,000 total direct jobs, 1.7 million indirect jobs, and $20 billion in revenues.


Contact Centers may Soon Hire Agents based on Computer Skills

by @ MicroSourcing.com News Feed

With the increasing number of customers who prefer to use the internet instead of the phone in different transactions, computer literacy of applicants will be a more significant requirement than voice talent when it comes to hiring call center agents. This is what a BPO executive said in the International Outsourcing Summit held last Wednesday.

"There is more use of the Web and customers, especially younger customers, are using the phone less and are increasingly going on the Web. This means that agents may soon be hired based on their technical skill and computer literacy than voice skill," said Larry Jones, CEO of StarTek, Inc.

Be computer-savvy to land a contact center job

He added that while the employees will still undergo the same training, being computer-savvy will increase your chance of landing a contact center job.


BPO executives voice concern over upcoming elections

by @ MicroSourcing.com News Feed

An industry survey conducted by TeamAsia for Outsource2Philippines and the Business Process Outsourcing Association of the Philippines (BPA/P) indicates that BPO executives believe credible elections are a critical factor that can shape investors' perception of the country, Manila Bulletin said.

Responding to the statement: �In terms of investor and client perception of the Philippines, it is important that the national election is conducted in a peaceful, credible, and transparent matter�, 90% of executives responded �very significantly� (49%), �significantly� (31%), or �somewhat significantly� (13%), and the remaining six percent responded �somewhat� (4%) or �not at all� (2%).

Many issues currently loom over the upcoming presidential elections as an automated voting process has raised concerns regarding a lack of audit trail, possible hacker intrusion, and reliability of data transmission.

The full results of the survey will reportedly be presented at a CEO Breakfast briefing two weeks before the election. The briefing will gather outsourcing executives and possibly representatives of presidential candidates.



Ortigas CBD Ready for BPO Operations

by @ MicroSourcing.com News Feed

Ortigas Center equipped to house BPO operations

According to the latest report from Tholons, which ranked Manila, Philippines as the second top destination for business process outsourcing (BPO) operations, the sector is said to be motivating business districts like the Ortigas Center to optimize capabilities and competitiveness in hopes of attracting potential outsourcing investors who are looking to expand and set up operations in the country.

According to Sheila Lobien, head of project leasing and director of global real estate services firm JLL Philippines, Ortigas Center opened seven office towers with an accumulated gross leasable area of 15,200 sqm. this year. This mirrors the strong demand for space. In fact, 70 percent (105,500 sqm.) of new supply has already been pre-committed.  

Majority of the new buildings in Ortigas Center, including Robinsons Cyberscape Alpha, are well-equipped to be the new homes of BPO locators due to their proximity to labor pools throughout Metro Manila.

Lobien noted that Ortigas Center has an edge because it has an excellent selection of malls, 24/7 restaurants, and other after-work options that BPO employees prefer. On top of that, Ortigas Center can be easily accessed through various modes of transport in many of Manila’s main roads like Shaw Boulevard, EDSA, and Ortigas Avenue.

As the BPO industry continues to grow at an average of 20 percent annually, Lobien said Cybergate Alpha is one of the superior real estate solutions that can accommodate expansion and growth.


PH BPO Driving Office Leasing Growth

by @ MicroSourcing.com News Feed

The country's business process outsourcing (BPO) sector is driving growth in the local office leasing market with an estimated average yearly demand for office space of 250,000 square meters.

The growth is expanding to other cities, aside from the large business districts of the metropolis, says Lindsay Orr, chief operating officer of real estate leasing firm JLLL.

�With the growth of the BPO sector, office developments are certain to improve in quality, thanks to strong demand and healthy competition. BPOs are looking for locations that can offer them more: Retail amenities for employees and extras such as security access card and modern intrusion detection systems,� explains Orr.

Among the benefits that attract prospective employees to a BPO company is its strategic location, especially to public transportation, says Philip Ano�uevo, JLLL associate director.

With the continued expansion of the country's BPO sector, real estate developers have to offer more than the standard fare of telecom infrastructure and emergency gensets.


Data Center Outsourcing Activity in Europe Set to Increase

by @ MicroSourcing.com News Feed

European Data Center Outsourcing Market to Grow 14%

BroadGroup Consulting’s fourth annual report predicts an increase in Western Europe’s data center outsourcing activity.

The firm’s report, which is set to be presented at the DataCentres Europe 2012 event, denotes that outsourcing only accounts for 15 percent of the entire European data center market.

The report also estimates that the market for third party data center providers will grow by 14 percent between 2010 and 2014, and a 25 percent increase in data center outsourcing transactions amongst European companies and third party service providers will be seen by 2014.
BroadGroup Consulting Managing Director Steve Wallage said outsourcing will be a game changer for data center providers in Europe. He adds that BroudGroup was able to identify 400 small and specialist third party facilities in the UK alone. Meanwhile, larger providers are seen to grow and expand. He also said adoption of the cloud, digital media, online shopping, social networking, and mobile technology are the key drivers for the growth of data center outsourcing.


Global IT Spending Predictions for 2014

by @ MicroSourcing.com News Feed

The latest report from Forrester Research indicates that this year, the global spending on information technology will grow 6.2 percent, which is US$2.22 trillion. Factors that would cause the improvement are the growing interest over cloud technology and mobility, as well as the recovering economy.

According to Andrew Bartels, an analyst at Forrester, if the projections happen, it will be a leap from 2013 since IT spending only increased 1.6 percent that year. Bartels added that spending will grow 8.1 percent in 2015, but will be below average compared to the double-digit growth rates posted during the 1990s and 2000.

It is also predicted that the US dollar will be weaker than most currencies next year and growth will only be at 5.5 percent.

Bartels noted that even with the continuous economic and political problems in the US, it will still be the key market in terms of IT spending. It was noted that Brazil, India, China, and Russia are experiencing uneven economic growth while Western Europe is believed to be gaining speed to recovery.  
Software will post the most IT spending activity in 2014 with $568 billion. Outsourcing followed with $442 billion, integration and IT consulting services valued at $421 billion, then computer hardware with $416 billion, and communications hardware with $373 billion.


India Still Takes the Lead in Global IT-BPO

by @ MicroSourcing.com News Feed

Sachin Pilot, Minister of State for Communications and IT in India, said even the Philippines' outsourcing industry posted significant growth, India still takes the lead, posting $15.9 billion in outsourcing revenues during 2011-2012. In 2010-2011, the country's outsourcing industry posted $14.2 billion.

Meanwhile, a study done by global research firm Gartner highlighted that India is gaining more foothold in the outsourcing market as it offers diverse business process outsourcing (BPO) services to clients. The study also indicated that Indian service providers are open to adjust services based on the demands of clients, and new business pricing models.
Moreover, the National Association of Software and Services Companies (Nasscom) came up with a forum in hopes of addressing challenges such as retaining the top position, generating a larger talent pool equipped for BPO, and widespread preparation for KPO and legal process outsourcing. Pilot said grants and exemptions provided by the Indian Government further propel the industry's growth.


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Manila Sets Eyes on BPM Leadership in 2016

by @ MicroSourcing.com News Feed

According to Penny Bongato, Executive Director for Talent Management at the Information Technology and Business Processing Association of the Philippines (IBPAP), information technology (IT) is a cutthroat segment because its current leader, India, possesses a huge number of programmers.  But the industry body believes that the Philippines can go beyond the voice segment and take the business process management (BPM) leadership from India.

The Philippines is known as the country to beat in terms of contact center services, and is the second most preferred destination for IT processes - just behind India.

Bongato also pointed out that the healthcare sector is where the Philippines could excel in, especially now that it is emerging as a premiere market.

Health information management has become one of the most sought-after services because of the influx of huge volumes of data from healthcare facilities driven by the rising cost and beneficiary information in developed countries.

This results to the need for automating information for easier collection, retrieval, and storage - making the Philippines a feasible outsourcing destination with its abundant supply of health practitioners.


PH Gets Better Ranking in 2012 Global Real Estate Transparency Index

by @ MicroSourcing.com News Feed

The Jones Lang LaSalle global survey entitled �2012 Global Real Estate Transparency Index� measures transparency in at least 97 real estate markets using 83 factors. The Philippines ranked 35th globally across all factors, and was ranked 7th out of the top 10 markets around the world that have drastically improved from 2010 to 2012. This just shows that investor confidence in the country is in fact improving.

Other countries included in the top 10 list of improvers were Turkey which got the top spot, with Brazil and Mexico lagging closely behind. The Philippines surpassed Vietnam, South Korea, and Thailand in the same category, and is at the same level with Vietnam.

According to JLL Country Manager David Leechiu, increased transparency could mean more investors for the country which can result to more opportunities for the country's real estate transparency ranking to further improve.  

Since more and more businesses are put up in Asia, it is relative that countries such as the Philippines, Indonesia, and Vietnam will exert more efforts in improving transparency.

Also, notable tenants in the Philippines are from the offshoring and outsourcing industry. Other sectors contributing to the growing demand for office space are international finance and insurance firms.


PH Becoming a Prime Location for Investors

by @ MicroSourcing.com News Feed

The Philippines Gains Traction as Preferred Location for BPO

Swiss financial services firm UBS Investments recently stated that even with the vast improvements in the political and economic aspects of the Philippines, its equities will remain as the key driver for funds next year.

UBS Investments Research Executive Director Jody Santiago said the country is becoming a “safe haven”, attracting investors amidst the economic and political problems. However, the current economic crisis in Europe and higher appraisals of stock might affect the early part of the incoming year.

Meanwhile, the one-year target for the Philippine Stock Exchange Index (PSEi) was set at 4,700 by the local unit of the Swiss banking giant, a 10-percent increase from Wednesday’s closing. This corresponds to UBS Investments’ projected Philippine corporate earnings for 2012, while it is predicted that the economic growth will reach 3.3 percent next year.

UBS Investments also said they favor companies that are doing well and have doable strategies for the firm’s rate cut of 50 basis points next year. The industries that they prefer are infrastructure, tourism, mining, business process outsourcing (BPO), as well as the telecommunications sector.


UK Firms Prefer to Outsource Jobs to India over China

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Recent study revealed that India is the preferred outsourcing destination of two-thirds of UK companies, while the rest will outsource call center jobs, IT, and finance work to China. This is based on the Labour Market Outlook research conducted by the Chartered Institute of Personnel and Development (CIPD) and accounting firm KPMG.

Companies pushed to outsource jobs offshore

According to the study, the decline in qualities of graduates in the UK pushes companies to outsource work offshore. Forty-two percent of British employers said the level of literacy skills went down over the last five years. When it comes to the level of communication and interpersonal skills, 34 percent of respondents said it declined; only 19 percent said it had improved.


Survey Shows Mid-sized Firms Get More out of Outsourcing

by @ MicroSourcing.com News Feed

Medium-sized companies enjoy more gains from IT outsourcing deals than large companies, according to a recent survey from outsourcing analyst firm HfS Research and the London School of Economics.

Out of 277 companies that outsource, more than half (63%) of mid-sized firms said outsourcing had been a successful initiative to cut costs. Compared to 30 percent of large firms, 42 percent of mid-sized companies said their outsourcing contracts were very effective in terms of meeting compliance and regulatory requirements. 

Smaller companies get more out of IT outsourcing because they take the �big bang� approach. According to HfS Research founder Phil Fersht, they put several business functions together to make a large outsourcing deal, unlike larger firms that tend to outsource in a step-by-step process. Fersht added that these companies do not usually adopt the way mid-sized firms outsource since they are large enough to tell service providers how they would like transfer business processes. 

While service providers tend to target large clients, Fersht said they also need to tap medium-sized businesses so they can establish a balanced client portfolio. 


PH BPO Sector Gets 26% Revenue Growth

by @ MicroSourcing.com News Feed

BPO Philippines Posts 26% Growth

The Philippine business process outsourcing (BPO) industry posted a year-on-year growth of 26%, earning $8.9 billion for 2010, the domestic industry association announced yesterday.

The Business Processing Association of the Philippines (BPAP) said the contact center sub-sector made the highest growth at 21%, generating $6.1 billion in earnings. The growth enabled the Philippines to overtake India in voice-based services. According to Benedict Hernandez, president of the Contact Center Association of the Philippines (CCAP), "The Philippines now leads the world in voice-based customer service."

Employment among BPO companies also increased by almost a quarter, for a total of 525,000 employees for 2010, according to BPAP records. "We achieved robust growth in all major sectors of the industry: voice-based BPO, non-voice business support and complex services, and information technology," announced BPAP chairman Alfredo Ayala.

BPAP said they expect an annual growth of 15% until 2016 – by that time the industry would involve two million jobs generating $20 billion in revenues. "But with greater collaboration from all stakeholders, including government and the academe, we have the potential to grow at 25% a year. This would create 1.3 million direct jobs, 3.2 million indirect jobs, and $25 billion in export revenues," Ayala opined.


APEC to Open More Opportunities for PH

by @ MicroSourcing.com News Feed

Economists believe that the Philippines has a great chance of showcasing its capabilities and gains to the rest of the world as it is set to host the  Asia-Pacific Economic Cooperation (APEC) meetings. The Philippines is also said to have better fundamentals today, compared to 1996, which was the last time it staged the summit.

University of Asia and the Pacific’s Senior Economist Cid L. Terosa said the upcoming event is the perfect time for the country to “show off” gains of its economy and stronger economic role in APEC.

On the other hand, Rene E. Ofreneo, Professor and former Dean of the University of the Philippines School of Labor and Industrial Relations, said the government is taking advantage of the event by promoting the country as a supporter of globalization, but he said it is not exactly the case particularly for the industrial development side.

The economists paralleled the country’s current economic stance to what it was almost two decades ago. Terosa said back in 1996, the country was more exposed to external economic conditions, but nowadays, it is more resilient against external shocks as it now has a reinforced domestic economic environment. He even noted that the Philippines is an example of “economic resurgence”.

Nicholas Antonio T. Mapa, Associate Economist at Bank of the Philippine Islands, aired the same sentiment, saying 1996 was also a good year for the country because it was an up and coming nation. Today, however, its fundamentals are stronger.

But Mr. Ofreneo pointed out that the Philippines had big plans back in 1996 which included a structural shift in its economy - though it did not materialize. The country became more advanced in terms of its dependence on the continuous influx of remittances from overseas Filipino workers (OFWs) and bullish growth of the business process outsourcing (BPO) sector and services exports.


US Congress Urged to Give Rewards to Firms that Create Jobs Locally

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US Businesses urged to Create more Jobs Locally

US President Barack Obama urged the Congress to grant tax rewards to companies that provide employment to US citizens. The President said the Congress needs to make adjustments in the country’s tax code for companies such as Boeing Co. So it will be easy for them to create more job opportunities to the country. In his recent visit to Boeing Co.’s jet factory in Everett, Washington, he was delighted that it had produced thousands of employment opportunities to US citizens.  

The President noted that businesses in the US created 3.7 million new jobs in just two years, adding that even if labor and operational costs are way higher locally than in China, the quality of products will definitely be better, and that will be the country’s way to be globally competitive.  

Furthermore, he said that companies that outsource jobs shouldn’t get tax breaks and help should be extended to technology companies and other businesses that set up operations in the country.

Meanwhile, the annual White House report indicates that the US will have a stronger economy this year and produce two million jobs. The report also predicts that the average unemployment rate for this year will be around 8 to 8.6 percent.


PH BPO Driving Growth of Commercial Property

by @ MicroSourcing.com News Feed

BPOs Fuel Office Space Occupancy in the Philippines

The strong business process outsourcing (BPO) sector of the Philippines is seen to drive the growth of office property occupancy, which could lead to growth in the residential segment as well.

According to Jones Lang LaSalle’s managing director for Singapore and Southeast Asia of property consultancy Chris Fossick, the global expansion of multinational companies in back office processes will reinforce outsourcing and offshoring operations in the Philippines.

More jobs will be created for new and younger candidates, who are set to look for more convenient living arrangements, and with higher spending capabilities, employees are anticipated to upgrade. Furthermore, investors are predicted to acquire high-end residential properties.

Fossick predicts an 18.7 percent growth for Jones Lang LaSalle’s current office stock in Manila - the second highest increase in properties next to Ho Chi Minh City’s 33.5 percent growth.

Meanwhile, demand for property in the Southeast Asian region is nearly 15 percent, while in Manila, it’s just below 10 percent.

Manila is likewise expected to have the highest growth in residential properties, at 47.2 percent from its current stock.


Healthcare IT Expenses in Singapore to Reach US$548M this Year

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Healthcare IT in Singapore will post 4% Growth

American information technology research and advisory firm Gartner expected that spending activity for healthcare IT products and services in Singapore will reach US$548 million this year. This is 4% higher than the revenues posted last year. The total projected expenses are by hospitals and hospital systems, ambulatory service, and physicians' practices. It is said to be spent on internal services, software, IT services, data center, devices, and telecom services.

The firm pointed out that healthcare providers will account for the largest spending activity throughout the forecast period for procedures such as consulting, implementation, IT outsourcing, and business process outsourcing (BPO). It is expected to grow by 4.3% this year to reach US$250 million in 2014 led by growth in BPO and consulting. The fastest-growing segment will be software at 12.6 percent in 2014 and is seen to reach US$69 million in 2014. Internal services, which include all company employees who plan, develop, implement, and maintain information systems, are expected to grow by 2% in 2014.

Anurag Gupta, Research Director at Gartner, said growth of the various healthcare programs is anchored on Singapore's National Electronic Health Record system. Growth areas, on the other hand, are seen to cover patient care, advanced analytics, and the application of business intelligence and research.


Cost Reduction still Primary Reason for Outsourcing

by @ MicroSourcing.com News Feed

A study done by HfS Research indicates that cutting costs is the main priority of businesses for outsourcing. Other factors identified were revision of old processes and innovation.

Forty-three percent of those who participated in the study pointed out that they outsource to cut cost and that it is in fact critical for their operations. Forty-four percent said they outsource but their decision is not highly driven by cost reduction.

Meanwhile, 37 percent of IT buyers outsource as it enables them to have more flexibility. Thirty-four percent said they outsource to improve their regulations and policies, and 22 to 24 percent said they outsource to tap skilled candidates and new technology.

The study also shows the sentiments of buyers, saying that their weakness is formulating external benchmarks and having industry insights and that they particularly do well in contract negotiations.

Moreover, existing contracts are evolving to make way for niche skills, new technology, and innovative services.
Meanwhile, it was seen that more and more buyers outsource to drive innovation and improve analytics. Some buyers revealed that they are planning to change providers within the next two years. Moreover, 19 percent want to change contact center providers and 13 percent said they would change their IT infrastructure.


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PH BPO Expected to Post Growth despite US Anti-outsourcing Bill

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Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo is optimistic that the Philippines' business process outsourcing (BPO) industry will flourish even though there is a proposed House Bill 3596 �Call Center and Consumers Protection Bill� in the US. This aims to discourage US-based firms from outsourcing overseas. In fact, Guinigundo expects the industry will post a 15-20 percent growth in 2012.

Moreover, Guinigundo said once the bill is enforced, it will be unfavourable for the US economy. He explained in a statement that outsourcing offers cost efficiency, and companies can keep their business going through the process. Even if the business is stable, outsourcing can help companies to be more competitive.

Filipino workers get salaries which are relatively lower than their Western counterparts, and are less confrontational compared to those in other BPO locations. While BPO has become one of the key drivers for economic growth, Guinigundo said this does not mean that students should look solely on the industry for employment.

The government has pledged its support to the industry. Department of Labor and Employment Spokesperson Nicon Fameronag said Php500 million was allotted for the training program of those who want to be employed in the call center sector.


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Latest Data in Healthcare IT Outsourcing Released

by @ MicroSourcing.com News Feed

The newest addition to MarketResearch.com’s line-up of helpful data, Healthcare IT Outsourcing Market - By Application, aims to provide the latest trends and projections in contracts and operations within the segments of providers (EHR, RCM, LIMS), payers (CRM, Claims Management, Fraud Detection, Billing), life science (ERP, CTMS, CDMS), operational (SCM, BPM), & infrastructure (IMS, Cloud Computing).

Healthcare IT outsourcing solutions addressing challenges like rising costs

It was found that with the rising costs of healthcare and increasing demand of quality care, healthcare organizations are looking into solutions such as healthcare IT outsourcing to address these challenges. It is a suitable solution that is gaining traction in the healthcare information technology market where an organization selects the most suitable service provider that will perform various processes.  

Initially, enterprise-type of organizations were the only ones making use of the business solution, but as years passed, mid-sized businesses followed suit. Some organizations were seen outsourcing the entire information management system, and some only outsourced several processes like CRM, EMR, and billing systems.

The report projected that the industry will experience a CAGR of 7.6% and reach $50.4 billion by 2018 from $35 billion in 2013. Moreover, the key drivers of the HCIT outsourcing sector are healthcare systems industry and pharmaceutical industry markets. Outsourcing is used to reduce operational and maintenance costs, enable organizations to access larger pools of IT and medical professionals, mitigate risks, and update technology used.

Other significant factors that are increasing the demand from the market are: the need to control the rising costs of healthcare worldwide and to improve the return on investments particularly in back office administration and IT management systems, life science division, and payers. Other trends that are expected to propel the HCIT outsourcing market are: the growing medical tourism in Asia, the new standards set by the US Federal Government, new ICD-10 conversion guidelines for coding, rise in aging population, etc.

Some of the HCIT market’s challenges are the endless security concerns, high capital outlays, fragmented nature of the healthcare system, as well as language and cultural barriers.


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PH BPO Gaining Traction in Non-voice Sector

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It has long been established that the Philippines is the top outsourcing destination for voice-based processes, and the information technology-business process outsourcing (IT-BPO) industry shows no signs of stopping as it is gaining traction in providing non-voice services.

According to the Business Processing Association of the Philippines (BPAP), the non-voice sector of the country posted a 30 percent growth rate in 2011. This is higher than the 24 percent growth rate posted by the voice-based sector. The non-voice sector contributed 33 percent to the total IT-BPO revenues that reached $11 billion last year.

Gillian Virata, BPAP Senior Executive Director, said there is a huge opportunity for the country's non-voice sector since there is a growing demand for new, complex services. 

The Philippines is gaining strength in providing non-voice services such as medical transcription, healthcare, animation, game development, and graphic design.


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Europe Takes Lead as World's Highest Outsourcing Spender

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Europe is Top Spender in Outsourcing

According to the report entitled “TPI Momentum Market Trends and Insights” by TPI, an outsourcing advisory company, Europe now holds the title as the world’s highest spender in outsourcing this year, moving past the US.

The report shows that the most successful companies based in Europe spend more on outsourcing deals by the end of third quarter, with a total annual contract value (ACV) of $30.6 billion. This is compared to those companies located in the US and Canada which spend $28.4 billion in outsourcing.

Last year, the most successful companies in the US and Canada spent an ACV of $29.6 billion, while Europe-based companies registered an ACV of $28.7 billion spent in outsourcing deals.




Rural Areas Eyed for Next Wave of Local BPO

by @ MicroSourcing.com News Feed

BPO Office Congestion in the Philippines

Nearly 40 locations outside Metro Manila(National Capital Region or NCR) and other major cities are identified as feasible hubs for business process outsourcing (BPO) operations, according to the Next Wave Cities (NWC) campaign launched by the local BPO sector and government.

One of the key drivers for the industry to go beyond NCR is the mounting expenses caused by office space congestion and mass recruitment.

Business Processing Association of the Philippines (BPAP) Executive Director Gillia Virata said the locations offer more than what the more popular and developed information technology (IT)-BPO hubs like Metro Manila, Metro Cebu, and Metro Clark already have.

Furthermore, she said an NWC scorecard created by BPAP and the Department of Science and Technology-Information and Communications Technology Office (DOST-ICTO) helped single out the suitable regions. They check each location annually, update data accordingly, and release the list of the 10 best cities and municipalities.

Last year, Davao, Santa Rosa in Laguna, Bacolod City in Negros Occidental, Iloilo, Metro Cavite (Bacoor, Imus and Dasmariñas), Lipa City in Batangas, Cagayan de Oro City, Misamis Oriental, Malolos in Bulacan, Baguio, and Dumaguete City in Negros Oriental were included in the NWC list.

Other regions that IT-BPO companies can consider are Iligan City, Zamboanga, General Santos City, Leyte, Laoag City, Bohol, Legazpi City, and other provinces in Central Luzon and Southern Luzon, some of which already house small BPO firms.

Virata reiterated that 75 percent or more than 350,000 graduates hail from regions outside Metro Manila. Since talent is the main driver of the industry, they were able to asses that these locations can have a huge potential to help the industry grow and attract more foreign investments.


IT Outsourcing Grows as Firms Look for Added Value

by @ MicroSourcing.com News Feed

IT outsourcing used to be seen as a way to cut costs and reduce staffing levels, but nowadays, more and more companies consider it as a process that can offer higher quality of service aside from cost savings.

Brian Robinson, Research Director of business and IT services strategies at HfS Research, said even though firms use outsourcing to reduce staffing levels, it is also adopted as a means to streamline business processes.

According to Robinson, this is a great opportunity for service providers, but he said clients want more than just cost savings and are looking for the provider that can offer the best overall value. Moreover, he noted that deal sizes are getting smaller but the number of deals is increasing.


Stability Anticipated for PH Money Supply Growth

by @ MicroSourcing.com News Feed

According to Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr., the money supply in the Philippines will go back to its normal growth rate this year.

As per his definition, the normal growth is between 12-14 percent. He explained that local financial institutions will ease on investing in the BSP’s special deposits accounts (SDAs) and allocate budget to other projects to boost the economy. As for the lenders, he said they are ready to go back to the market.

In December of last year, money supply growth was seen declining, even if it came from a strong growth record in November. For the country’s M3, or domestic liquidity, it posted a year-on-year growth of 32.7 percent last December, which is a few notches down from November’s 36.5 percent.

BPO sector and OFW remittances propelled increase in liquidity

The bullish foreign exchange inflows from the business process outsourcing (BPO) sector and OFW remittance transaction receipts propelled the increase in liquidity last December. The 11.6-percent increase in domestic claims also fuelled the M3 growth from the private sector.


BPO execs name tight labor market as top concern

by @ MicroSourcing.com News Feed

A survey conducted by Outsource2Philippines and the Business Process Association of the Philippines (BPA/P) � the Philippines' governing outsourcing body � showed that 54% of BPO executives believe the tight market for qualified outsourcing workers could limit the local outsourcing industry's growth.

According to the Philippine Daily Inquirer, 46% of the executives polled claimed that retaining workers in the Knowledge Process Outsourcing subsector was also a major concern. Those surveyed named complex training requirements (34 percent), high competitive wages (30 percent), and inadequate education infrastructure (29 percent) as other major challenges that the Philippine outsourcing industry faces.

Among others listed were government corruption (21%) and, consequently, the negative perception of the Philippines (15%). However, 52% of the executives indicated that as an outsourcing destination, the Philippines was not as risky as India. Furthermore, the majority of those surveyed said they would ramp up employees by %6 to 50% in the next year.



European businesses unaware of outsourcing value

by @ MicroSourcing.com News Feed

Research indicates that businesses are spending billions of pounds on IT outsourcing contracts despite having little knowledge of exactly how much they spend or get for their money; as indicated by research conducted by Warwick Business School, UK.

Among 263 plus companies that were surveyed across Europe with revenues between $500 and $1 billion, only 8% knew how much money and time they actually spend on their IT outsourcing contracts.

Associate professor of Information Systems at Warwick, Julia Kotlarsky, sheds light on the situation: "The report flags a critical gap in managerial knowledge and some businesses clearly have to do better in justifying their significant outsourcing spend to the board."

67% of the CFOs (Chief Financial Officers) expressed that CIOs (Chief Information Officers) do not effectively communicate the pros and cons of outsourcing.

The research further indicates that less than half of the businesses surveyed actually measure the financial benefits or disadvantages of their outsourcing contracts - only 19% of the business that actually have, are confident of the results of their calculations.


PH BPO to Create more Job Opportunities this Year

by @ MicroSourcing.com News Feed

Information Communications Technology (ICT) Davao President Lizabel Holganza foresees a 30-percent increase in job opportunities in the business process outsourcing (BPO) sector this year specifically within the region as more BPO firms are believed to have expansion plans.

More job opportunities from the BPO sector

According to Bert Barriga, Executive Vice-president at ICT-Davao, nearly 16,000 jobs were produced by BPOs based in Davao last year, which clearly has exceeded half of the 30,000 jobs targeted by ICT-Davao for 2015.

Moreover, he added that they are doing their best to provide BPO training for the region’s local talent.

Meanwhile, a Smarter Countryside campaign, which is aimed to provide more training programs across different outsourcing processes and services, is scheduled to be launched next month in the city. There’s also an on-going Industry-based Training for Work Scholarship Program (I-TWSP) spearheaded by the Technical Education and Skills Development Authority (Tesda).


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TPI Index: Asia Pacific's Outsourcing Market Improved in Q2

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2Q12 Recorded Improved APAC Outsourcing Market

The 2Q12 Global TPI Index data published by technology insights and market consultancy firm Information Services Group (ISG) states that even if there were fewer deals closed during the second quarter, the value of the entire outsourcing market increased.
An increase of 7 percent was posted from 2011 Q2 and 2012 Q1, based on commercial contracts amounting to $25 million and above, reaching a total contract value (TCV) of $21.4 billion. Developments in the Asia Pacific region’s business process outsourcing (BPO) industry fuelled the growth.

On the other hand, the industry saw a decline in contract activity during the second quarter with only 173 transactions. This is a 22-percent decline year-over-year and 14 percent sequentially. However, the market saw large contract awards with TCV valued at $1 billion and above. Mega partnerships were also established during these periods, with contracts having an annual contract value (ACV) of $100 million or more.

According to John Keppel, Partner and President at ISG, the global outsourcing market improved year-over-year but it wasn’t able to match last year’s outstanding figures in value and activity.


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Manila, One of Asia's Top Real Estate Investment Markets

by @ MicroSourcing.com News Feed

A survey called "Emerging Trends in Real Estate Asia Pacific" done by the Urban Land Institute and PwC showed that Manila has emerged as one of the leading real estate investment markets in Asia. Of the 23 cities in Asia included in the survey, Manila got the fourth spot.
Japan was once again the first placer, followed by Shanghai and Jakarta. After Manila took the fourth spot, Sydney closely lagged behind at 5th, Guangzhou at 6th, Singapore at 7th then Beijing, Osaka, and Shenzen. 

Manila's booming business process outsourcing (BPO) industry and rapidly rising economy are parallel to the results of the survey.  The improving political environment was cited as a pivotal factor for the robust BPO industry in the country.

Meanwhile, John Fitzgerald, Chief Executive at ULI Asia Pacific, said Manila is emerging as a key player in the Asia-Pacific region due to the continuous progress of the BPO industry, improving consumer spend, and GDP growth. He also noted that the survey indicates strong investor interest for Manila and Jakarta as non-traditional investment destinations.
Other factors that make Manila a premier investment hub are the young demographic, strong talent pool that is familiar with Western culture, and strong capital inflows from overseas Filipino workers.



PH IT-BPO Exports could Hit $55B Mark in 2020

by @ MicroSourcing.com News Feed

According to a study done by World Bank consultant Raja Mitra, improvements in the information technology outsourcing (ITO) industry could help increase export revenues, from $30 billion to $55 billion by 2020, and relatively surpass the $9 billion it measured in medium-term export revenues during 2010.

Mitra also estimated that the low-end medium-term export revenue could amount to $30 billion, the medium-end at $45 billion and lastly, the high-end could be valued at $55 billion.

�While not a panacea...expanding the scale and scope of exports of IT-BPO services as well as domestic industry development and use of ICT [information and communication technology] will offer new avenues that can help the economy to be more productive and accelerate efforts to achieve inclusive growth within the country and to interface and catch up with the rest of the world,� Mitra said.

In 2010, the IT-BPO industry contributed five percent to the country's gross domestic product (GDP), but Mitra predicts that it could reach as much as 11 percent in 2020. Mitra likewise predicted that the number of employees in the sector will reach 6.8 million by 2020. However, he said that these are only estimates and that there are more areas to work on like the lack of infrastructure in most IT-BPO services.

In terms of voice-based outsourcing services, Mitra said the Philippines had surpassed India and that Metro Manila is currently the city that has the most number of employees in the BPO industry.


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Advisory Firm Identifies Key Challenges in Multisourcing

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Gartner, Inc., the leading IT research and advisory firm in the world, has identified three key challenges that companies with outsourcing operations will face as they aim to achieve an efficient sourcing environment. These are:

  • outsourcing deals are difficult to establish and manage
  • outsourcing deals often fail to meet expectations since providers promise more than what they can actually deliver
  • outsourcing deals are not structured in a way that they are able to adapt quickly to changes
�Organizations that excel in sourcing have seamlessly integrated all providers, aligned all parties behind one goal, developed an agile sourcing environment, and achieved business impact through targeted IT spending,� said Frank Ridder, Gartner research director. �Others who lack the right competencies are more likely to experience sourcing inefficiencies caused by misalignment, idle resources, unnecessary processes, overloaded operations, a heavy inventory, or a lack of focus.�


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PH BPO Optimistic in Reaching $25B Revenue Goal by 2016

by @ MicroSourcing.com News Feed

PH BPO Goal for 2016

The business process outsourcing (BPO) industry of the Philippines remains confident that it will meet its accelerated revenue goal of $25 billion by 2016. 
In the International Outsourcing Summit being held at Sofitel Philippine Plaza, Business Processing Association of the Philippines (BPAP) Chairman Alfredo Ayala said this 25-percent growth rate can be reached through a strong partnership between the government and the private sector.
Based on the BPAP 2016 master plan, the accelerated case scenario for the country’s BPO industry is $25 billion. In the best case scenario, the target is $20 billion which translates to a growth rate of only 15 percent.
Ayala said BPAP had met its 2011 goal when it comes to demand generation. The challenge is still meeting that demand by finding enough talent with the right skill set. 
Department of Trade and Industry Secretary Gregory Domingo said the industry has been dealing with the talent issue since 2003. With the current situation, meeting the target of 80,000 to 100,000 new employees for the industry may be difficult. 
To resolve the problem, the government is working with the academe and related organizations. Aside from the initiatives in the education system, the Congress is also helping the industry through the passage of the Data Protection and Privacy Law, as well as the Republic Act that focuses on the welfare of BPO workers especially those who work at night.  

HP Launches IT Solutions to Address Problems of PH Firms

by @ MicroSourcing.com News Feed

IT products and services company Hewlett-Packard (HP) recently introduced its new IT storage solutions designed to solve data problems of companies in the Philippines, especially those in the telecommunications and banking industries, as well as business process outsourcing (BPO).

According to Hans Bayaborda, country manager of HP Philippines' Enterprise Servers, Storage, and Networking (ESSN), the StoreOnce D2D434 BackupSystem and P4800 SAN Solution with SAM/IQ 9.0 Software are HP's answers to the problems brought about by the rapidly increasing volume of data.

Following the �converged infrastructure� concept, these storage solutions also aim to streamline business processes and make them more efficient. "Companies today need an infrastructure that delivers efficiency and simplicity of operations without having to duplicate data that wastes storage capacity," Bayaborda said.


PH Foreign Investments could Reach $75B this Year

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BPO Industry Included in PH's "7 Big Winners Sectors"

Foreign investors are believed to be noticing the notable changes in the Philippine business climate. Members of the Joint Foreign Chambers (JFC) believe that this can improve the foreign direct investments (FDI) of the country which could reach $75 billion this year.

The group presented 471 recommendations to boost the growth of the Philippine economy, including the seven major industries, to Malacañang. The recommendations identified agribusiness, business process outsourcing (BPO), creative industries, infrastructure, manufacturing and logistics, mining and tourism, medical travel, and retirement as the “Seven Big Winner Sectors” of the country’s economy.

Senior Adviser of the American Chamber of Commerce John Forbes believes that flow of foreign investments to the country will improve this year. In fact, there is already growth in the number of inquiries from other countries.

He added that one of the key factors that clearly help lift investor confidence to the Philippines is the unwavering support shown by the government, specifically the recommendations entitled Arangkada Philippines 2010 submitted by the JFC.

JFC is set to present a 130-page First Anniversary Assessment which will show the progress of the Arangkada 2010 and 471 recommendations at the Grand Ballroom of Marriott Hotel.


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RP Economy to Hit Growth Goal through BPO, Remittances

by @ MicroSourcing.com News Feed

With the increasing flow of revenue from the business process outsourcing industry and remittances from overseas Filipino workers, it is projected that in the second semester, the country's economy will meet or even surpass the 1.5% growth registered in the first half of the year. This indicates that the economy is on its way to reaching the 0.8-1.8% target growth rate for 2009.

According to Deputy Governor Diwa Guinigundo of Bangko Sentral ng Pilipinas (BSP), the BPO industry is projected to grow between 20% and 30% this year, taking advantage of the global economic downturn which pushes companies that are affected by financial crisis to outsource business processes in order to stay afloat.

Another major factor that helps the economy in reaching its growth goal is the OFW remittances. In contrast to the projection of the BSP that the economy will see a flat growth rate in remittances this year, the $8.5 billion registered in the first half is 2.9% higher than last year's figures.


PH Nurses Urged to Explore other Job Opportunities

by @ MicroSourcing.com News Feed

Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz pointed out to nursing graduates that the healthcare sector is brimming with career opportunities. Other healthcare-related but non-clinical forms of practice are available and are waiting to be filled by candidates who have backgrounds in healthcare.

She cited a report from the Bureau of Local Employment (BLE) which indicates that the healthcare information outsourcing sector under the business process outsourcing (BPO) industry has more than 100,000 medical-related jobs ready for nursing graduates and other medical professionals.

The basic salary for healthcare outsourcing positions ranges from Php14000-Php18000 and may reach Php20000-Php40000 for more extensive types of healthcare work.

Baldoz emphasized that those who are employed in the healthcare outsourcing sector receive far more than the average Php10000 that the nurses who are working in medical and private institutions get.   

At DOLE's Project Jobs Fit program, employment opportunities that were identified include jobs in the healthcare outsourcing industry as well as in the health and wellness field. Clinical research associates and clinical appeals specialists are also feasible careers for nursing graduates, according to Baldoz.


Positive Growth Seen for PH Economy

by @ MicroSourcing.com News Feed

According to Standard Chartered Bank, the growth of the Philippine economy will remain strong as domestic demand and investments in the country continue to flourish.

Positive Economic Growth for the Philippines

The UK-based financial institution released a report called "Asian sovereigns -- Key takeaways from investor trip" where it was noted that this year, the Philippines is one of the strongest players In the Asian region. The country is also recognized for its gross domestic product (GDP) which is said to have surpassed initial expectations.

Standard Chartered’s executives analyzed three Asian countries - the Philippines, Indonesia, and Vietnam. They coordinated with independent analysts, multilateral agencies, and quasi-sovereign corporates. They found that the Philippines is a "positive outlier" due to remittances and strong business process outsourcing (BPO) industry.

Moreover, for this year’s first semester, the local economy grew 7.6 percent, which is higher compared to 6.4 percent for the same period last year. It has also exceeded the 6-7 percent growth projection of the government.


More BPOs Eye the Philippines for Expansion

by @ MicroSourcing.com News Feed

Cristino L. Panlilio, Department of Trade and Industry's Undersecretary for International Trade and Investments Promotion, said 11 business process outsourcing (BPO) firms are expanding operations in the Philippines, which could yield jobs for at least 20,000 Filipinos in the coming years. In fact, six of these companies are already operating in the country, while the rest are new ones.

Furthermore, new operations by international companies such as United Health, Wells Fargo, Bayer, AG of Germany, Dupont and Lattice were seen to have provided as much as 1,600 jobs this year alone, said Panlilio. The ones that are currently expanding are Sutherland, Accenture, Teleperformance, SPI, Infosys, and IBM.

Meanwhile, Panlilio said apart from the surging BPO investments, other business opportunities such as trade and investment missions from Qatar, Kuwait, Malaysia, and e-vehicle operations from Taiwan, Korea, and Japan will be coming to the country. Panlilio added that there are also opportunities in the halal market which is why the Department of Trade and Industry is set to tap the large halal market in Malaysia.


PH still Far from Matching India's BPO Industry

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Philippines' Call Center Market Share higher than India's

Even with the Philippines’ recent win in the call center outsourcing segment, India remains ahead in terms of overall services exports. In fact, India’s business process outsourcing (BPO) industry is currently valued at $15 billion, while the Philippines is only at the $9 billion mark. Also, there’s a huge difference between the size of the industry and range of services of both countries.  

According to research firm Everest Group, the call center sector accounts for $7.38 billion of the $9 billion BPO industry of the Philippines. This is slightly higher than India’s voice-based services exports valued at $7 billion. The country has dominated the voice-based sector due to the Filipinos’ cultural compatibility with the Western culture and better English accent.

However, even though the country’s BPO industry posts a faster growth rate, it will take more time before it reaches India’s current standing.  Moreover, when it comes to non-voice processes, there’s a huge difference between both countries, said Amneet Singh, Vice-president, Global Sourcing, Everest Group.

WNS’ CEO Keshav Murugesh stated that when it comes to data-based work, India definitely surpasses the Philippines. On the other hand, Swaminathan D, CEO and MD of Infosys BPO, said the Philippines is the second outsourcing location of choice of clients because it is able to supply candidates with various skillsets. He cited that Manila alone can provide 100,000 certified accountants for the finance & accounting segment which is a strong suit if they want to delve into the F&A market.
Operational costs in India are 5-15 percent lower compared to what the Philippines offers. Another advantage of India is it has several domestic BPO hubs which can provide more flexibility, whereas the Philippines merely has two known locations which are Cebu and Manila, and offers limited alternatives for clients. 


New Outsourcing Areas for RP

by @ MicroSourcing.com News Feed

Supply management, which refers to “identification, acquisition, access, positioning and management of resources of an organization”, and legal process outsourcing (LPO) are the new outsourcing services that the Philippines can offer.

Companies to outsource supply chain management

According to Charlie Villasenor, president and chief executive officer of Transprocure, companies are now planning to outsource supply chain management and procurement to reduce costs and improve efficiency. He added that the country has the potential and capability to offer supply management services.

On the other hand, Judith Lopez, chairman and senior partner of Pricewaterhousecoopers Philippines, said "the Philippines’ close alignment to the US legal system attracts a number of LPO businesses from US companies." She added that lower costs and English-speaking workers will be beneficial for the country in meeting the LPO demand.



PH Warned against too much Reliance on BPO

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UNCTAD Warns PH on BPOs during World Investment Report

While the business process outsourcing industry is greatly contributing to the Philippine economy, the United Nations Conference on Trade and Development (Unctad) said the country should not depend too much on BPO since it is an example of non-equity modes (NEMs) which are attained and lost easily.

According to University of Asia and the Pacific Economics Prof. Jovi C. Dacanay who presented the World Investment Report 2011, non-equity modes are types of foreign direct investments (FDIs) and contractual deals that do not have high fixed assets. Aside from BPO, other examples of NEMs are contract manufacturing, franchising, and contract farming. Unctad said governments need to establish regulations on NEMs to make the most out of them and mitigate the risks.

Unctad said there are four areas to focus on to maximize the advantages that developing economies can get out of NEMs. These are: creation of policies embedded in development strategies, government support to initiatives in establishing domestic productive capacity, a strong legal and institutional framework, and creation of policies directed to the negative impact and risks brought about by NEMs.



Survey: PH Ranks 7th in List of Back Office Outsourcing Hubs

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PH now more attractive as back office outsourcing hub

According to a survey done by global management consultancy, A.T. Kearney among 50 other locations, the Philippines has become more attractive to foreign companies that are looking to outsource back office processes.

In the 2014 A.T. Kearney Global Services Location Index which ranked 51 countries, the Philippines climbed two spots to 7th place. Back in 2011, the country placed 9th out of 50 countries in the index. Ratings were based on remote services activity and state initiatives to promote the sector.

The survey also had 25 indicators that fall under three categories: financial appeal (40 %), quality of workforce (30%), and overall business environment (30%). These factors are based on previous surveys, questionnaires, and information gathered from clients in a span of five years.

The index added that the bearing of each ranking factor also depends on where companies are going to outsource because it is one of the reasons affecting the price points of outsourcing deals.

As for the Philippines’ position, improvements in the workforce segment and business environment helped balance its poor performance in one of the factors which is financial attractiveness.


McKinley Hill Cyberpark employs 8,000

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McKinley Hill Cyberpark

Within one year of opening, Megaworld's McKinley Hill Cyberpark has expanded operations to 29 corporate locators - employing over 8,000 outsourcing workers. The IT park is Philippines Economic Zone Authority (PEZA) accredited; joining current PEZA-accredited IT outsourcing leader, Eastwood City Cyberpark. Of the 29 locators at McKinley, 19 are reported to have grown into premiere business process outsourcing (BPO) firms.

The park boasts a unique open-plan office layout for multiple modular workspaces. Within three months of operations, McKinley Hill Cyberpark had already registered $10.7 million in outsourcing service exports. Among the major outsourcing players investing in the park are Accenture, Thomson Reuters, 3M and Colgate-Palmolive.

“The initial figures, which we have generated by polling out locators for their employment figures, prove how successful McKinley Hill Cyberpark is. This is proof of its great location and great concept as a vital jobs generator,” quoted Jericho Go, Megaworld FVP of business development.


ADB Economist: BPO cannot �Save� PH Economy

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According to Norio Usui, a senior country economist from the Asian Development Bank, the business process outsourcing (BPO) sector is not enough to keep the Philippine economy going. The country needs to strengthen the manufacturing and agricultural sectors to be at par with neighboring countries in Southeast Asia such as Indonesia, Malaysia, and Thailand in terms of job production and revenues.

He said even if the booming BPO sector substantially contributes to the country's economy, it is still inadequate in terms of providing job opportunities to a lot of unqualified Filipinos since it requires at least a college degree for most positions.

Usui also noted that amidst the great performance of the BPO industry, it is still way behind manufacturing, agricultural, and industrial sectors.


IT Outsourcing Market Projected to Reach $288B this Year

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IT outsourcing spending to increase

A report from technology research firm Gartner states that the global IT outsourcing industry will grow this year, reaching US$288 billion. IT outsourcing spend would increase 2.8 percent in USD, and 5.1 percent in constant currency.

Emerging markets like Asia-Pacific, Great China, and Latin America were seen growing over 13 percent.

According to Gartner Research Vice-president Bryan Britz, the slowdown in the IT market’s overall growth is caused by near-term market factors like economic, labor and political environment, rapidly evolving IT outsourcing delivery models, and the financial performance and budget of service providers. Moreover, he said projections for 2013 will be similar to 2012 forecasts.

However, Gartner’s projections for 2014 are higher to prepare for custom application outsourcing and infrastructure services. From the figures drawn up, software-as-a-service remained excluded from its outsourcing numbers.
Britz noted that the propellers of cloud and data center service management segment are enterprise buyers looking for IT strategies, as well as the demand from small and mid-sized business buyers for infrastructure as a service (IaaS). The data center outsourcing market is declining due to the migration of workload to IaaS and infrastructure utility services outpacing data center outsourcing.

Also, the rapid adoption of mobile devices and connectivity is driving the growth of IT support outsourcing.


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Filipino Workers Are 'Key' to the Growing BPO Industry

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The "key" to expanding the ever-growing business process outsourcing (BPO) sector in the Philippines is its young, English-speaking population, according to real estate consultancy firm Santos Knight Frank.

This is despite the House of Representatives approving the measure on May 31, which includes the first measure of the Duterte Administration-proposed tax reform. The substitute bill, House Bill 5636 or the Tax Reform for Acceleration and Inclusion, proposes lower income tax rates and lifting exemptions in various benefits like the 13th month pay.

However, it also seeks to lift VAT exemptions in different sectors and adjust excise taxes on fuel and automobile, as well as to remove tax incentives of BPO firms. If enacted into law, a 12% VAT would be imposed on the BPO companies' gross receipts.

Demographics make the Philippines an attractive outsourcing destination

Santos Knight Frank Chairman and CEO Rick Santos remains confident of the Philippines as an investment destination and said there are plenty of factors that make the country attractive to investors.

"I think the demographics are key. The Philippines has the people which are the secret sauce to the growth of BPOs," he said.

"It really comes down to skills, the English, the age of the workforce ... Those are the imperatives for the BPO firms," Santos added.

"The BPO industry is the biggest private sector employer today, with 1.5 million direct and 3.7 million indirect employees. The sector also contributed 8 percent to GDP (gross domestic product), with export revenues close to $25 billion," he added.

However, Santos maintains that the removal of tax incentives of BPO firms and its impact on the sector should be carefully studied and an open, continuous dialogue with the government is important in securing a beneficial future for both parties.

"We see fiscal incentives are important to encouraging the growth of BPO investments in the country," he said.

"Incentives are great drivers for growth in that sector. I think that is important to their expansion agenda," he added.

Cloud Computing Demand to Grow as Firms Aim to Cut Costs

by @ MicroSourcing.com News Feed

More and more companies will adopt cloud computing in an effort to reduce IT costs. According to Andy Wright, sales director of UK-based IT solutions provider nonstopIT, the benefits of cloud computing become evident to many firms, resulting to a growing interest in the IT delivery model.

"More and more people, as they're slimming down their IT infrastructure and IT support departments, they're going to want to put more in the cloud," Mr. Wright said. He added that companies are starting to trust the security of cloud computing.

Through an IT outsourcing provider, cloud computing offers ease of deployment and system management. Wright said a cloud-based solution will enable companies to cut costs, and it does not require too much intensive resource in-house.


Iloilo City Urged to Attract more BPO Investments

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Philippines Best Offshoring Destination of the Year

Commission on Information and Communications Technology (CICT) Secretary Ray Anthony Roxas-Chua III said the people of Iloilo City must work harder in order to attract more IT-BPO investments and provide more job opportunities. The city is considered one of the top new wave cities in the Philippines.

"Iloilo is number three, but you can do much to further improve," Secretary Chua said at the opening of the Convergence 2009 in the city. He added that the presence of many business outsourcing companies in the country is concrete evidence of the accolades given to the Philippines. The most recent award is the Best Offshoring Destination of the Year title given by UK's National Outsourcing Association (NOA).

At present, the Philippines ranks second, next to India, in the list of key outsourcing destinations in the world. Based on the CICT report, the BPO industry in the country employed about 400,000 workers in 2008, and reported US$6.1 billion in export revenues.




PH Industries Post Slower Gross Revenue Growth in Q1

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According to the Philippine Statistics Authority (PSA), total gross revenue growth posted by local industries for the first quarter of 2014 is lower at 6.3 percent, compared to the same period of 2013 with 9.5 percent.

Lower revenue growth for business process outsourcing sector

Slowdown was said to have been triggered by slower activities in the bank services segment which only grew by 6.7 percent from 18.1 percent, and business process outsourcing sector, which falls under the private services segment, with 5.1 percent growth from 14.8 percent.

Meanwhile, the transportation and communication sectors posted bullish figures with 15.7 percent – coming from the negative growth of 0.1 percent during Q1 of last year.

The second fastest growth rate was seen in the real estate segment. It grew from 12.1 to 13.4 percent this year.

The PSA mentioned that even if other sectors posted positive growth, it was at a slower rate. In fact, the trade sector grew by 7.1 percent from last year’s 11.1 percent, and the manufacturing sector with 2.2 percent from 6.6 percent during the same period.

However, growth in employment improved, from 1.3 percent during the first quarter of last year to 1.4 percent this year.


Survey: Filipino-owned Firms not Keen on Outsourcing

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Data from a survey done by the Bureau of Labor and Employment Statistics (BLES) on 26,253 establishments in the Philippines with 20 or more workers found that firms with foreign partners or are fully-owned by foreigners outsource more  compared to Filipino-owned businesses.

The study, which was conducted in June 2012, also showed that outsourcing a business process to a third party is not popular among the businesses in the Philippines. In fact, only 8.6 percent of survey respondents said they engage in outsourcing, contracting or subcontracting.

Majority of the firms that are outsourcing are from the manufacturing segment at 29.7 percent, followed by wholesale and retail trade and repair of vehicles with a cumulative 21.3 percent. On the other hand, accommodation and food service accounted for 7.8 percent, while electricity, gas, steam, and air conditioning supply represented 6.9 percent.

Outsourcing was also found to be more rampant in companies that have 100 to 199 employees. While there were more establishments that had 20 to 99 workers, the proportion of establishments engaged in off-site outsourcing was higher in firms with 100-199 workers.

Also, firms that take part in exporting goods or services outsource more compared to firms that focus solely on the local market.


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Global ITO Spending to Exceed $251B this Year

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According to research and analyst firm Gartner, global spending on IT services increased 2.1 percent from last year's $246.6 billion and is predicted to reach $251.7 billion by the end of 2012.

The cloud feature under the infrastructure as a service (IaaS) segment was identified to be the fastest-growing division of the information technology outsourcing (ITO) market.

Cloud-related services are projected to increase 48.7 percent this year, from $3.4 billion in 2011 to $5 billion this 2012.

Gartner Research Director Gregor Petri said cloud computing is currently used for the automation of basic processes, but as time passes, cloud services will be utilized for business applications and upgrading of current automated operations. The cloud will also increase in value and purpose for companies.

Meanwhile, some of the challenges seen for the cloud segment in several regions are still related to data security and privacy, as well as compliance. Furthermore, data center outsourcing (DCO) accounts for 34.5 percent of the ITO market.
Data center outsourcing (DCO), a mature segment of the ITO market, represented 34.5 percent of the market in 2011, but growth is anticipated to sow down by one percent in 2012.

Bryan Britz, another Research Director at Gartner, said data center outsourcing is set to be upgraded with new delivery models by 2016. By that time, providers will be able to cater to other types of clients.



BSP: Rosy Outlook for PH Economy

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Sufficient money supply, manageable inflation, reliable banking industry, and positive external position have been identified as key pillars that will be supporting the Philippines’ economic growth, according to Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr.

Tetangco said the 7-8 percent growth target eyed by the local government for 2015 is achievable as long as domestic demand remains strong, as well as there is progression in labor market dynamics and production efficiency.

The government’s prediction for this year is higher than other recent forecasts which are pegged below seven percent. For instance, the Asian Development Bank (ADB) forecast for GDP growth is 6.4 percent this year and 6.3 percent in 2016.

Tetangco said inflation projections will be based on the current inflation forecasts. In a survey done by BSP and Consensus Economics, both 2015 and 2016’s inflation projections are close to the mid-point where the former posted two percent, and four percent for the latter. As for the banking sector, Tetangco said it will remain as an intermediator of funds in the country.

Surplus in the country’s external current account as remittances from overseas Filipino workers, revenue from business process outsourcing (BPO) operations, and earnings from tourism are predicted to continue to grow.


PH IT-BPO Posts 21.8% Growth in 2010

by @ MicroSourcing.com News Feed

A survey conducted by the Bangko Sentral ng Pilipinas (BSP) which covered 811 IT-BPO companies shows that the IT-BPO industry of the country posted a 21.8 percent growth in 2010, with revenues reaching $10.1 billion. In 2009, the industry's revenues reached $8.3 billion. However, this translates to a slower growth rate for 2010 than 2009's 30.6%.

Voice-based work remains the key growth driver for the industry as it contributes more than 50 percent of the total revenues. More than half of the industry's workers were from the call center segment, and the Philippines is now considered as the top outsourcing location of choice when it comes to voice-based processes.

Other disciplines such as transcription, animation, and software development also posted strong growth.

According to BSP, IT-BPO exports posted a 22.7 percent growth in 2010. This can be attributed to the growing demand for BPO work.


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Everest Says RPO Market to Grow 25-30% in 2011

by @ MicroSourcing.com News Feed

The rapid growth of the recruitment process outsourcing (RPO) market in 2010 can result to a 25-30 percent growth rate in 2011. This is based on the �Recruitment Process Outsourcing Annual Report 2010 - A Year of Rapid Growth and Intense Competition� by global services advisory firm Everest Group.

It is projected that the annual contract value (ACV) of the RPO market will reach US$1.38 to 1.45 billion in 2011. According to research director Rajesh Ranjan, the market is seeing rapid growth with new contracts - smaller deals, fewer employees, and buyers going for the selective approach. �Beyond direct cost impact, we expect to see more buyers look to achieve business impact by taking a more strategic approach with RPO and look for total workforce solutions, but adoption will be gradual due to lack of integrated solution availability. While the market is dominated by large buyers, we expect the mid-market to grow as these buyers look to scale up in an improving economy.�

Moreover, the report reveals that North America is ahead of the pack in RPO adoption, and buyers go for the multi-vendor approach due to lack of comprehensive global RPO services.


PH BPO Earnings to Surpass OFW Remittances in Two Years

by @ MicroSourcing.com News Feed

Jose Mari Mercado, President of the Information Technology-Business Process Association of the Philippines, said the business process outsourcing (BPO) sector’s income last year was $18.9 billion, and more than one million Filipinos are already part of its workforce.

Mercado, together with some of the country’s top IT leaders, joined the Talent Development Expo in Talisay City. He noted that the growth of OFW contributions is more or less six percent every year based on the data from Bangko Sentral ng Pilipinas, whereas the Information Technology industry is growing by 15-18 percent annually. Last year, remittances reached $25 billion, and the BPO sector’s income during the same year was $18.9 billion.

Revenue from BPO sector expected to increase

Revenue from the BPO sector is expected to reach $21.2 billion this year and $28.9 billion by 2017. If it retains its growth streak, Mercado said it will surpass the income from remittances in 2017 as the volume of foreign investors to the country continues to remain strong.

The executive noted that there are 150,000 job vacancies in the BPO sector which they are looking to fill quickly, and in order to sustain the pace, the country needs to produce 150,000 more next year.
Mercado stated that one of the major challenges is to source the skilled talent. He is encouraging young people to consider the BPO sector.


Outsourcing costs expected to decline in 2010

by @ MicroSourcing.com News Feed

Industry experts are expecting that the downward trend in prices for IT services during 2009 will continue this year. According to CIO, the main causes for the trend are the global economic slowdown, increased offshoring activity, pricing pressure from buyers, and disaggregated vendor services.

Compass America calculates that the costs for a majority of infrastructure services-desktop,  mid-range, and network services will decline at single-digit percentages this year. This excludes storage costs, however, which are expected to decline another 25% this year.

Ben Trowbridge, CEO of outsourcing advisor, Alsbridge, states that although providers will remain focused on cost cutting and avoiding future investments,  "price pressure will be tempered by the need to ensure overall deal parameters do not jeopardize success".

Despite the forecasts on the trend prevailing in 2010, some believe that it will not be a �buyer's market� should the economy show signs of recovery.  Chris Kalnik, partner and managing director of financial analysis for sourcing advisor TPI quotes:

"If the economy strengthens, TPI believes that the service providers will attempt to recoup some of the price concessions that they have made over the past year."



BPO Continues to Drive Investment Growth in PH

by @ MicroSourcing.com News Feed

The Philippines’ ability to provide cost-effective and scalable solutions to global investors is one of the top reasons why business process outsourcing is thriving in the country.

During last year’s fourth quarter, office space occupancy was said to have skyrocketed in renowned business districts such as Bonifacio Global City, Makati, Ortigas, Quezon City, Alabang, and Pasay City. As a matter of fact, vacancy rates for Premier and Grade A buildings in Metro Manila dropped from 2.53 percent to 2.13 percent quarter-on-quarter.

Growth in business process outsourcing intensifies demand for office space

As the demand for office space continues to intensify, landlords have been seen increasing leasing rates - P1,306.08 per square meter for Prime office space and P898.87 for Grade A in Makati CBD. As for Bonifacio Global City, the rate is now P848.34 per sqm; P604.71 per sqm in Ortigas; and P606.84 per sqm in Alabang. As for Quezon City, rate is P627 per sqm and in Pasay - P650.47 per sqm.

Rick Santos, Chairman, founder, and CEO of CBRE Philippines, said amidst the price hike in rental rates in major business districts, investors are still willing to pay for the quality and value they can get by operating and expanding in the Philippines.

One of the strategies that developers are looking at to address the growing demand is augmenting projects within and outside the Manila’s business districts.

Investor interest has also been observed in ‘sunshine’ industries which include hotel and leisure, retail, and gaming.


PH Pres. Aquino Signs DICT Act

by @ MicroSourcing.com News Feed

After 10 years of petitioning and lobbying, industry experts will now see Republic Act 10844, which is An Act Creating the Department of Information and Communications Technology (DICT) as it has been signed by President Benigno Aquino III. Stakeholders have been keeping an eye on this legislation from the 16th Congress.

The legislation aims to abolish several agencies and transfer them to the DICT. On the other hand, it will rename the present DOTC as simply the Department of Transportation (DOT).

According to Jubert Alberto, Country Manager of IDC Philippines, not only will the organization standardize operations of local agencies, it will also propel it. Having an arm outside of the DOST will put more emphasis on its efficacy.

Bernardo Villegas, an economist from the University of Asia and the Pacific, noted that in this highly digital age, having a cabinet-level portfolio specifically designed for the ICT industry will make a huge impact. He added that the Philippines is known as a major source of information and communications technology professionals, and one of the few countries  with consistent volume of English-speaking talent.

JJ Disini, an IT law expert, stated in an interview with Bloomberg that the DICT will boost the country’s broadband connectivity and help improve ICT-driven sectors such as business process outsourcing (BPO), software programming, and other similar and high-value sectors.


Filipino Workers Ready for ASEAN Integration

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The Philippines is Ready for the ASEAN Integration

According to the People Management Association of the Philippines (PMAP), the country falls short in some areas, but the Filipino workers are all set for the ASEAN integration next year.

Josephus Jimenez, President of PMAP, pointed out that Filipino workers are more competitive compared to workers of their neighboring countries. However, he said Filipino workers need to improve on behavior, character building, and values formation. He also said Filipinos should not worry about the ASEAN integration.

Meanwhile, PMAP Executive Director Rene Gener said the Philippines would need to work on its products by making them faster, more affordable, and better in general.

PMAP cited several issues that are similar to the findings of World Economic Forum - concerns in infrastructure, corruption, inefficient government bureaucracy, tax regulation, and restrictive labor laws.

The sectors that are expected to be at risk with the integration are agriculture, micro-small-medium enterprises, food manufacturing, as well as information technology. On the other hand, sectors that are seen to thrive with the integration are business process outsourcing (BPO), education, services, tourism, and electronics.


Philippines eyes game development outsourcing

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Video Game outsourcing in the Philippines

In an effort to claim a larger share of the global game development outsourcing market, the Game Development Association of the Philippines (GDAP) has established a network of foreign developers and clients. Research shows that game outsourcing is set to grow to $1.1 billion this year and $2.5 billion by 2010. Outsourcing will then represent 40% of the total budget for video game creation.

Collision Studios, an award winning US game development firm, is among several companies outsourcing to Filipino service providers. In a forum on trends in the video game industry, Philippe Erwin, Collision CEO, commended the visual arts skills of the Filipinos and cited their English fluency as a major advantage quoting: “It's easier to deal with someone who can also speak the language.”

Darrell Benvenuto, president of game development services provider, Digital Octane Inc., predicts that the Philippines is poised to capitalize on the rapidly growing demand for outsourcing in the industry with major game developers already outsourcing to neighboring countries Korea, India and China.


Gov't needs �wake-up call� on provincial call centers

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Joey de Venecia III, a pioneer in the Philppines' IT (Information Technology) outsourcing industry, reiterated the importance of the local Business Process Outsourcing (BPO) industry in keeping up with increasing competitiveness from rival Asian destinations. The call center industry in the Philippines has drawn billions of dollars in investments from major multinational firms and currently employs over half a million.

�It is not enough that we produce world-class BPO workers. The world has to be constantly reminded of this,� said De Venecia.  �The Philippines must remain on top of their minds where this key industry is concerned. Their role in developing the regions should not be underestimated.�

The Business Process Association of the Philippines (BPA/P), the Philippines primary governing body for outsourcing operations, expressed similar sentiments claiming that developments in upcoming competing nations such as Vietnam, Malaysia and Sri Lanka �should serve as a wake up call for the government�.

The Philippines has been aggressively marketing their outsourcing services as of late - with ads appearing in major publications such as Time, Forbes and Fortune magazines; and commercials airing worldwide in networks like CNN and CNBC.


Pampanga Cities to Become IT -BPO Hubs

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Two of Pampanga's cities are striving to become ideal IT destinations for investors.

San Fernando was cited by the city's Information and Communications Technology (ICT) Council to be equipped with resources and a skilled IT workforce suited for the business process outsourcing in the country. The council, created by Mayor Oscar Rodriguez in 2007, added that they are helping the city to become a technological hub. It is also closely working with stakeholders and scholastic institutions.

According to ICT Council President Jim Jimenez, programs are created to train students, IT graduates, and other aspiring IT professionals to help reinforce the city as a credible regional IT leader.     

Investors in the ICT sector are also highly considering Clark in becoming a BPO hub, according to the Metro Clark Information and Communications Technology Council (MCICTC).

Moreover, the organization said Clark is one of the locations in which Manila-based BPO firms choose to expand or transfer to as it is similar to Metro Manila and Metro Cebu.


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PH Economy still in an "Upswing"

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According to the report "Philippines: Cruise Control" by Asianomics Group Ltd., the Philippines remains to be in "relatively good shape", posting strong economic growth which is seen to be more robust later in the year, with sustained investor confidence and growth potential on the local scene.

The Hong Kong-based research company makes use of an Austrian stress analysis that involves credit and profit cycles as well as cash flows. The analysis shows that the country remains in the economic upswing phase of the business cycle. This is in line with the forecast that 2016 will post accelerated growth, compared to 2015 growth rate. Based on the stress test among emerging and developed countries, the Philippines got a +3 total score, a one-point improvement from the score in December. This is the second highest score after Taiwan.

With sustained consumer demand and an increase in infrastructure investments, Asianomics Chief Economist Jim Walker said the country can expand by 6.5-7 percent this year.

Asianomics also attributed the economic growth to the business process outsourcing sector and remittances from Filipinos working abroad. Both are expected to post $25 billion each in flows this year, with BPO revenues reaching the level of remittances at 17 percent.


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IT-BPO still Main Revenue Generator for PH Services Sector

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For the second quarter this year, the Philippines' Information Technology and business process outsourcing (IT-BPO) industry posted revenues reaching US$657 million. The Bangko Sentral ng Pilipinas (BSP) said this is more than 100 percent higher than gains posted in the same quarter last year, amounting to US$324 million. 

It is likewise proof that the industry is still a main driver in the services sector of the country. According to Raymond Lacdao, Industry Affairs Executive Director of the Business Processing Association of the Philippines (BPAP), what the IT-BPO industry can bring to the country's services sector is a good indication that the former is taking the right path towards a stronger sector. With more gains posted in the second quarter, Lacdao said the industry will continue to help for economic growth. This means more business and job opportunities for the country.

The IT-BPO industry aims to reach US$25 billion in revenues by 2016. BPAP said it is crucial to have stronger ties between the government and the industry to meet this goal. The annual International Outsourcing Summit which will be held this month will be a venue for BPO leaders and players to talk about the future of the industry.


UK Insurance Outsourcing Costs Set to Increase by 20%

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20% Iminent Increase for UK Insurance Outsourcing

UK and Irish insurance companies and those that provide intermediary/broking services are exempted from VAT, but under the new EU directive, they will soon face a 20 percent increase in costs on outsourcing business processes.

According to international VAT and IPT provider TMF, many companies have opted to outsource tasks such as claims handling and IT. “As a result, a supply industry has grown up which is divorced from the VAT-exempt insurance activity … has stretched the original scope of the exemption, and … has proved problematic to police.”

EU countries think that the popularity of the outsourcing industry poses a threat to jobs as it offers an option for companies to get things done offshore. TMF advised insurance companies to review their outsourcing strategy.



IT Outsourcing Rises but Offshoring Falls, UK Survey Shows

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BPO Activity Up, Offshoring Declines

In a survey by PeoplePerHour.com, Europe’s biggest online business marketplace, results show that 60 percent of UK-based companies outsource business processes more now than they did two years ago, and 61 percent choose IT outsourcing over offshoring.

More companies choose outsourcing in order to reduce costs during the recession. However, the decrease in the number of companies which are willing to transfer processes overseas can be attributed to the rise in the “freelance economy” which has become an attractive alternative in the UK as well as the growing number of IT professionals.

“You might have expected offshoring to grow through the recession as UK businesses looked to cut costs by outsourcing IT requirements to cheaper overseas suppliers. However, responses to our survey and analysis of transactions on the site points to one conclusion: outsourcing is growing and offshoring is falling,” said PeoplePerHour.com founder Xenios Thrasyvoulou.






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US' Anti-outsourcing Move to Impact Small Indian IT Firms

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While experts in the Indian outsourcing industry believe that the recent anti-outsourcing move of Ohio will not have an immediate impact, they think that this will be felt by small IT companies. According to Ameet Nivsarkar, Nasscom Vice President, private companies still see India as their location of choice for outsourcing, though the recent move to ban transfer of government projects offshore, following an increase in fees for H- 1B and L1 visas, is "certainly disturbing".

"This is business is not driven by rhetoric but hardcore commonsense. US companies outsource because it is profitable and not just out of some political compulsions. So, large contracts will not be impacted. However, there may be certain disruption for small contracts and companies," a senior official of global networking giant Cisco said.

With this anti-outsourcing trend from the US, Indian IT firms are now tapping markets in Europe, Latin America, and Middle East.


�Reasonable' Wage Increase won't Affect PH BPO Growth

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PH BPO Sector Unfazed by Salary Increase

Pasig City Representative Roman Romulo said the reasonable increase in salary will not inhibit the growth of the business process outsourcing sector (BPO) of the Philippines. He noted that the government-mandated P15 inrcease in the daily minimum wage (for private sector workers in Metro Manila) will not prevent BPO clients from expanding operations or choosing the country as an outsourcing destination.

College-educated and highly skilled BPO workers are already receiving higher wages. However, some of these employees may not be included in the increased minimum pay, but adjustments will still be working in their favor through distortion.
The Labor Code defines wage distortion as “a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation.”

As a result, employees who are not directly covered by the increase are given appropriate pay hikes to correct wage distortion.

Romulo added that the fair wage hike will not taint the country’s attractiveness as an investment destination. He also pointed out that other neighboring countries and competitors in the outsourcing segment are increasing wages faster than the Philippines.

He also reported that the instability of the foreign exchange rate affects BPO operations more than wage increases do, because BPOs earn in US dollars, but spend for wages and operations in Philippine peso. The weaker the peso is, the more beneficial it is to BPO firms.


UN Agency Raises PH Economic Growth Forecast

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With the country’s slow inflation rate, higher government spending, and robust services sector, the Philippines’ gross domestic product (GDP) could grow by 6.5% this year. This is according to the Economic and Social Survey of Asia and the Pacific 2015 report by the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP). This new growth prediction is a bit higher than the UN agency’s estimate last January (6.4%).

If the country reaches this forecast, it will be higher than the 6.1% growth rate last year. Also, ESCAP predicts a 6.4% growth rate in 2016.

Though this latest growth forecast is still below the target of the government for 2015-16 which is 7-8%, the regional development arm of the UN said the 2015-16 forecasts are still better than the average estimates predicted for Southeast Asia - 4.9% this year and 5.1% next year.

The Philippine economy continues to post better growth rates than its neighboring countries among the five other older members of the Association of Southeast Asian Nations. The region is likewise expected to post improved near-term outlook, thanks to the economic recovery of Thailand as well as the economic growth of Indonesia and the Philippines.

Moreover, ESCAP expects the services sector of the Philippines to continue to drive growth, particularly the business process outsourcing sector which is predicted to post $25 billion in revenues next year, or 10% of the economy. Remittances from about 11 million OFWs are also expected to contribute to this growth.




PH Orgs Set to Promote the Country in the US

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Promoting the Philippines for Healthcare IT Outsourcing

The "HIM-BPM USA Roadshow" which will be launched this week is expected to promote the Philippines as a strong player in the health information management (HIM) and business process management (BPM) segments in the outsourcing industry.

Local industry bodies such as the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), Department of Science and Technology’s Information and Communications Technology Office (DOST-ICTO), Department of Trade and Industry-Board of Investments (DTI-BOI), and the Information Technology and Business Process Association of the Philippines (IBPAP) will participate in the event.

The roadshow will focus on key business regions such as New York, Washington, D.C., and San Francisco, and will end on a high note as the delegates will also attend the 85th American Health Information Management Association (AHIMA) Convention and Exhibition in Atlanta, Georgia on October 28-30.

The AHIMA is an important HIM gathering in the US where over 4,000 healthcare professionals participate in a discussion about the state of the healthcare industry across the globe.

According to Josefina Lauchangco, President of HIMOAP, the roadshow is expected to reinforce the Philippine HIM industry as a key HIM outsourcing destination, therefore creating more opportunities for the healthcare segment.


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DOLE to Carefully Monitor PH BPO Activities

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The proposed US House Bill (HB) 3596 �Call Center and Consumers Protection Bill� incited Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz to order the Philippine Overseas Labor Office (POLO) in Washington to observe the progress and impact of the bill on business process outsourcing (BPO) firms in the Philippines.

Baldoz said that while it is still early to tell what impact the bill would bring considering that it is not yet signed into a law, a briefing and impact assessment will be asked from the country's labor attach� in the US.

The main goal of the bill is to stop US companies from outsourcing operations to offshore locations. It also includes several clauses that will alter offshore call center protocols.  Some of which are: callers from America will be given an option to be transferred to a local agent and the operator should disclose his/her location when asked.

Furthermore, Philippine administrators have asked the Aquino government to act on the situation to protect and promote the country's BPO sector, as it is now considered the leader in providing voice-based work.

Baldoz added that if the US bill becomes a law, BPO operations, as well as employment in the country will be adversely affected.


BPO Firms Looking for Resources outside Metro Manila

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According to Budget Secretary Florencio Abad, the lack of resources for skilled workers became an issue for the Philippine business process outsourcing (BPO) industry as it was planning to challenge China as the world’s largest BPO employer.

Business process outsourcing firms looking for skilled personnel outside Metro Manila

The official noted that job opportunities in call centers, back office, and customer support-related services continue to grow annually and BPO firms are looking at major cities outside Metro Manila where untapped skilled workers are available. Abad said some of the cities BPO firms are exploring for skilled personnel include Cagayan de Oro, Butuan, and Bacolod.

The BPO industry now employs an estimated 200,000 in 120 companies - a far cry from the 2,400 workers back in 2001. Moreover, the country recently outpaced Malaysia and India and is set to challenge China for being the largest BPO employer in the world.

Back in 2010, the Philippines posted earnings of $11 billion and employed 900,000 Filipinos. It is estimated to reach $25 billion by 2016.

Abad pointed out that some BPO companies teamed up with state universities and colleges to provide call center training programs to students. Also, the government is working on providing animation, medical transcription, and web design training to Filipinos working abroad so they no longer have to leave the country, and to close the gap between supply and demand.


PH BPO Revenues to Reach $25B by 2016

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2016 Revenues of PH Outsourcing Sector

According to Danilo Reyes, Chairman of the Information Technology and Business Process Association of the Philippines (IBPAP), on the heels of the positive performance of the business process outsourcing (BPO) industry of the country last year where at least one million jobs were created and earnings reached $18 billion, numbers posted could further grow in 2016 to $25 billion (P1.118 trillion) in earnings, and 1.3 million direct and indirect jobs.

Reyes added in his speech during the 2015 Asia BPO Summit that producing one million jobs is a milestone, considering that the sector only had 2,000 employees 16 years ago.

The BPO sector is one of the major contributors to the country’s growth through job production and earnings. It’s almost at par with the remittance of overseas Filipino workers. However, BPOs still face the challenge of having a high turnover rate amongst workers.

Shore Solutions Chief Executive Officer Darcy Lalonde pointed out that people should have proper training for BPO work. Pushkar Misra, CEO of Hinduja Global Solutions, said Filipinos are very knowledgeable when it comes to technology and there are ways where it can be maximized. Meanwhile, Marcel Greutmann, General Manager of the Services Integration Hub East of IBM, said majority of the activities in the IT segment of the BPO sector can be found in mobile technology. He added that there are numerous opportunities in the segment as the adoption and innovation of mobile gadgets continue to rise.


PH BPO Industry Growth to Reach 30% this Year

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Global BPO is Growing Faster than other Industries

SPi Global president and CEO Malik Parekh predicts that the Philippine business process outsourcing (BPO) industry will grow by 30 percent this year. Figures also reveal that the industry shows a faster growth rate compared to others around the world.

More than 500,000 workers are currently employed in the country’s BPO industry. Parekh predicts that the workforce will stand at 1.3 million employees by 2016. This can be attributed to the emergence of new markets in the Asia-Pacific region and Western Europe.

BPO companies in the Philippines reported that more than half (58 percent) of their revenues come from non-voice services, and 42 percent come from voice-based work.

The industry is continuously growing, but Parekh said Filipinos should work on further improving their skills to meet client requirements, especially those in the non-voice sector.

Parekh also predicted that global BPO revenues will reach US$124 billion by 2016.




BPO to Outpace IT Services

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Rising competition among outsourcing companies

Outsourcing companies based in India are gobbling up other companies to widen their portfolio of services as they scale up their growth in the global marketplace, especially with rising competition from other outsourcing destinations such as the Philippines and China.

For example, Aegis Ltd. has spent up to USD 400 million in acquiring 18 companies for the past few years. Early this year, Genpact bought Headstrong for USD 550 million, while US-listed EXL Service Holdings Inc. announced on Tuesday their acquisition of Outsource Partners International for USD 91 million.

According to Gaurav Gupta, a managing partner at outsourcing consulting firm Everest Group, the fast growth of IT-related services in the outsourcing sector was only a short-term trend.  "[Information-technology] services has bounced back strongly and is growing much faster than BPO. In the long-term, however, especially given that the [infotech] services market is very well penetrated, it is BPO which will outpace growth."

EXL Service president and CEO Rohit Kapoor agrees with Gupta. "A data point that we have considered suggests that worldwide IT outsourcing spend is growing at 4% while BPO is growing or will grow at 6-8%," he explained. "Look at the actual IT spend of companies. That is growing at only around 2%, reflecting their actual growth."

"[BPO] is a much larger market and it is not that well-penetrated, so the long-term road ahead is clear," Kapoor concluded.


PH Senator Confident about Data Privacy Act

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The Data Privacy Act, sponsored by Senator Edgardo Angara, recently passed the second reading and is poised to be approved and sanctioned after the third evaluation in a bicameral conference. In due course, the new measure that aims to provide a privacy framework in the Philippines will be presented before the President.

Angara, who is also the Chairman of the Senate Committee on Science and Technology, said it orders public and private organizations to be more cautious and protective of all the data they gather. The bill is also said to strongly reflect the Directive 95/46/EC of the European Parliament and Council which is the most adopted data privacy regime used by the European Union.

Angara said the Data Privacy Act will be a strong indication that the country's IT sector is determined to further improve its IT industries. He also believes that this will reinforce the country's image and attract investors for the Information Technology and business process outsourcing (IT-BPO) industry.


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Outsourcing Sector to Benefit from UK Spending Cuts

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With government's planned spending cuts, UK will lose half a million jobs in the private sector, while opportunities in the outsourcing industry will increase.

According to Jon Sibson, head of public sector at accountancy firm PricewaterhouseCoopers (PwC), this is not entirely bad news for the graduates. "A sector likely to see growth opportunities from spending cuts is outsourcing, and not only in back-office services." He added that the government and organizations in the public sector will increase the use of private and voluntary sector organizations when it comes to delivery of front-line services in order to lower operational costs.

PwC also said the highest number of job losses (122,000) will probably be seen in London, while the least number of losses will be in Northern Ireland.


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Manila is APAC's Top Office Market for Q3 2013

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According to commercial real estate consultancy agency Cushman and Wakefield, Manila is 2013 Q3’s leading location for office space market absorption in Asia-Pacific.

PH's Growing BPO Sector

Joe Curran, the firm’s general manager, said Manila outpaced key cities in the Asia-Pacific region when it comes to office space occupancy. In fact, in Cushman and Wakefield’s third quarter report, Manila posted net office absorption of 482,126 square meters (sqm).

Other areas in Asia-Pacific posted lower office space take-up. Mumbai took up 314,528 sqm, Bengaluru had 287,630 sqm, Chennai - 263,303 sqm, Guangzhou - 250,114 sqm, Pune - 225,117 sqm, Chengdu - 222,336 sqm, Shenzhen - 185,450 sqm, Kuala Lumpur occupied 184,925 sqm, and Seoul had 133,604 sqm.

The top office hub in the metro is Taguig City - accounting for 59 percent of the absorption. Makati, the country’s central business district, takes up 29 percent.  
Meanwhile, it was found that the vacancy rate in Metro Manila is only 4.3 percent.

One of the crucial drivers for the demand of office space in Metro Manila is the growing business process outsourcing (BPO) industry of the country.

Curran noted that office space occupancy in Manila will increase as demand is expected to grow.


3rd International Outsourcing Summit to Highlight Non-voice BPO

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International Outsourcing Summit Philippines 2011

Seventy expert speakers and panellists and 300 delegates will come together for the third annual International Outsourcing Summit (IOS) to be held in the Philippines on October 11-12.

According to the event organizer, Business Processing Association of the Philippines (BPAP), it is a great opportunity for all sectors in the IT-BPO industry to evaluate the improvement based on the IT-BPO Road Map 2011-2016, a study that shows estimated annual growth of up to 20% over the next five years, US$25 billion in revenues, as well as 1.3 million direct jobs and 3.2 million indirect jobs.
BPAP’s Industry Affairs Executive Director Raymond Lacdao said voice-based BPO significantly contributes to the industry’s growth, but non-voice, complex services will drive it to its maximum potential. “IOS 2011 was designed to focus attention of the industry on the potential of non-voice, complex IT-BPO services, and to increase the global visibility of the Philippines’ capability for delivering these services,” said Lacdao.

Lacdao added that leadership skills in the industry and reforming of new services will also be discussed in this year’s conference. 

Philippine President Benigno S. Aquino III will deliver the keynote address, and president and CEO of LiveIt Investments Ltd. and BPAP Chairman Alfredo Ayala will moderate an “Emerging Markets” discussion during the first day of the summit.


Survey Reveals 2011 Major Trends in Dutch IT Outsourcing

by @ MicroSourcing.com News Feed

Last February 2011, a UK-based nearshore IT outsourcing (ITO) research and advisory company named IT Sourcing Europe conducted an online survey and collected data from approximately 469 Dutch companies from different industries and proportions. The survey displayed that less than half of the total number of participants outsource a small number of IT-related functions and software development nearshore and the larger percentile (55%) conducted the said processes in-house.

This indicates that the Dutch ITO sector has matured and developed this 2011(from 2010), because more and more Dutch companies have now considered outsourcing as a viable platform for software development.

Here are some of the evidences of the said development:

- 10% increase in �0-49K projects
- 4% drop in �50-199K projects
- 2 % drop in �200-499K projects
- 5% drop in �500+K projects

The study also showed that from 2010-2011, Dutch companies have increased their offshore/nearshore - fixed priced projects and operations for software development by 34%. Other services that are starting to be outsourced rigorously are mobile computing, casual games-development, social media, 3D animation, and augmented reality which showed a 32% increase from 2010.

Most of the companies who have opted to outsource these services are small and start-up companies. These would mean that they are more in control of the management processes of the projects and they are trying their very best to foresee ITO agenda even if it is impossible for this kind of setup.

All in all, a 20.4% increase from last year is a strong indication that Dutch ITO buyers are satisfied with outsourcing even if there was a 5.1% increase in unhappy ITO buyers.  


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RP's BPO Industry Poised to Reach Growth Target this Year

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BPO Growth Targets could be Achieved this Year

Ray Anthony Roxas-Chua, Secretary of the Commission of Information and Communication Technology (CICT), believes that the BPO industry in the Philippines will hit the growth target of 20% for 2009 despite the global economic downturn.

“Despite the current global economic crisis, the IT-BPO industry is expected to grow approximately 20 percent for 2009. While the bulk of revenue still comes from voice services, the industry is now focusing on diversifying into the higher value-added non-voice services, such as software development, which will provide higher paying jobs to Filipinos,” he said.

Roxas-Chua added that the country is on track in reaching the goal, and Cebu will play a role in the growth of the BPO sector since it is now seen as an ideal outsourcing destination. “Cebu has respectable international business community because of its friendly environment."


India Losing BPO Foothold

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Data from Indian software consultancy firm Nasscom shows that India is gradually losing its market share and has in fact lost 10 percent in five years to global competitors - majority of which are voice-based contracts.

Some of the factors that are fuelling India's losses are language constraints and competitive talent from rival BPO destinations such as the Philippines, Canada, and Poland.

Meanwhile, the $13.3-billion business process outsourcing (BPO) sector of the Philippines grew 15.6 percent while India's $20-billion BPO sector grew 8.9 percent.  

With all its losses, India remains as the global BPO leader for non-voice processes, while the Philippines maintains its top position in call center outsourcing.

Other countries that are seen as feasible options for voice contracts are Poland and Ireland in Europe, Chile, Brazil, Mexico, and Columbia in Latin America, as well as Malaysia and China in Asia.

India also faces challenges in supplying the demand for German, French, Spanish, Portuguese, and Nordic voice support services.

According to Salil Dani, Practice Director for Global Sourcing at Everest Group, the Philippines outpaced India in terms of full-time equivalent (FTE) and revenues. The former is said to have better service and is preferred for processes that rely on the English language.


RP BPO posts $7.2B in revenues

by @ MicroSourcing.com News Feed

The Philippine Business Process Outsourcing industry generated over $7.2 billion in revenues for 2009 � a 19% improvement from $6.1 billion in 2008, Philippine Daily Inquirer reported. The outsourcing industry, known as the country's sunshine industry, created 70,000 new jobs, bringing the total to 442,164 jobs at the end of the year.

Industry data for the outsourcing sector was revealed by Gillian Joyce Virata, executive director for information and research at the Business Process Association of the Philippines.

�We had a very difficult last quarter of 2008 and early 2009, but recovery started to kick in in the second half [of 2009]. We expect fast build-up within the first semester [of 2010],� Virata said.

The revenues were mainly accounted for by contact services which grew 22% to $5 billion. This was followed by back-office or non-voice outsourcing which posted $1.1 billion � 35% higher than 2008. Call center operations also accounted for the majority of the jobs, hiring 280,000 people, with the back-office sector and IT outsourcing sectors employing 86,000 and 35,300 respectively.

Virata also listed priority programs for 2010 which includes the creation of a virtual BPO university, the rollout of the National Assessment Competency Program to an initial 10,000 students, the provision of P350 million worth of scholarships under the Pangulong Gloria Scholarship fund, the launch of a local and international campaign on the Filipino knowledge worker, and the conduct of the 2nd International Outsourcing Summit. 


SEO Amnesty:  I Forgive You (No, Really!)

SEO Amnesty: I Forgive You (No, Really!)

by Matthew Egan @

There are SEOs out there who are afraid of supporting change in the SEO Industry because they know they once upon a time bought links. I’ve decided that as an industry, we cannot move forward unless all is forgiven, we … Continue reading

Cebu City Jumps to 7th Spot in World's Best Outsourcing Cities

by @ MicroSourcing.com News Feed

Global outsourcing and investments advisory firm Tholons ranked Cebu City, Philippines as the 7th best outsourcing location worldwide.

Cebu moves up list as best outsourcing location

Cebu City improved its ranking, coming from the 8th spot last year. Rankings of other cities in the country had improved, with Dumaguete City joining the top 100 list at the 93rd position. Manila retained its position as the second best outsourcing location, following Bangalore, India. This is according to Cebu Educational Development Foundation for Information Technology (Cedfit) Managing Director Jun Sa-a, who also said the ranking shift of Cebu City from 8th to 7th was one of the important shifts in the Asia-Pacific region in this year’s list.

Tholons said Cebu City had moved up the list as it is able to continue to develop its IT-BPM sector through improvements in infrastructure and a large pool of talent. It offers services involving three main outsourcing areas: Information Technology Outsourcing (ITO), Knowledge Process Outsourcing (KPO), and Business Process Outsourcing (BPO).

Back in 2001, only five IT-BPM companies had operations in the city. Last year, it is home to 200 companies, employing 117,000 workers.

With its improved ranking, Cebu City could still be further promoted as an outsourcing destination, said Tholons, as the industry is still leaning towards BPO in the global outsourcing landscape.


SEO Outsourcing | Can You Really 'Outsource' Your SEO?

SEO Outsourcing | Can You Really 'Outsource' Your SEO?

Find and Convert

While outsourcing has been an accepted business practice for decades, you should never "outsource" your SEO to someone else.

The 25 Most Dangerous Outsourcing Spots in 2010

by @ MicroSourcing.com News Feed

In the annual survey conducted by the Datamonitor Group on the riskiest cities for offshore outsourcing, industry buyers and corporate development leaders ranked Karachi, Pakistan as the most dangerous outsourcing location, followed by Medellin, Colombia, and Juarez in Mexico. According to an article by Stephanie Overby, the said cities were labeled as such because of crime rates, corruption, geopolitical risk, and terrorist threats.

Last year, Manila, Philippines was included in the list of riskiest outsourcing locations, but managed to move out of the list as successful service providers gave some positive light to the outsourcing hub.

The 25 Most Dangerous Cities for Offshore Outsourcing

1. Karachi, Pakistan
2. Medellin, Colombia
3. Juarez, Mexico
4. Cali, Columbia
5. Tijuana, Mexico
6. Lahore, Pakistan
7. Jakarta, Indonesia
8. Lagos, Nigeria
9. Dhaka, Bangladesh
10. Chittagong, Bangladesh
11. Amman, Jordan
12. Khulna, Bangladesh
13. Faisalabad, Pakistan
14. Rawalpindi, Pakistan
15. Port-au-Prince, Haiti
16. Managua, Nicaragua
17. Chihuahua, Mexico
18. Ljubljana, Slovenia
19. Tashkent, Uzbekistan
20. Bandung, Indonesia
21. Kingston, Jamaica
22. Tel Aviv, Israel
23. Colombo, Sri Lanka
24. Johannesburg, South Africa
25. Accra, Ghana


Everest Predicts Global Procurement Outsourcing to Grow 20%

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Global procurement outsourcing growth

Industry analyst and research firm Everest Group recently released a report entitled 2012 Market Predictions which notes that global procurement outsourcing will grow by 20 percent next year as clients diversify their procurement deals covering various processes such as inventory management, order fulfilment, and logistics with the help of several service providers. The firm also believes that government sectors worldwide will be more proactive, specifically the UK with its ongoing procurement.

The study also stated that contracts will have a broader scope, with financial executives touching up on procurement outsourcing. This may result to outsourcing contracts that will focus mainly on finance and accounting, as well as purchasing.

Companies like Accenture, ICG Commerce, and IBM are considered strong players in the procurement sector, and there are firms that are likely to make a mark in the market as they post rapid growth. Everest also stated that source-to-contract (S2C) and procure-to-pay (P2P) will grow in 2012.


Survey Shows India Losing 70% of Voice BPO to PH

by @ MicroSourcing.com News Feed

A report recently found that India's call center sector is losing 70 percent of its voice operations to competitors such as the Philippines and Eastern European countries.

According to Assocham Secretary General D S Rawat, there's a possibility for India to lose $30 billion in dollar earnings to the current leader in voice operations and the top investment hub for Indian financiers - the Philippines. He added that service providers in India should look into cost reduction and process alignment throughout the entire BPO sector.

The report noted that one of the ways Indian BPO operators can save 20-30 percent on costs is by relocating to a low-cost area within the country. Moreover, for non-voice processes, cost differential will be in the 10-15 percent range. For voice processes, it is expected to go beyond 20 percent.

Meanwhile, companies based in India were seen launching operations in the Philippines, a country known for its large English-speaking, educated, and employable workforce. It also boasts of a higher employable percentage of graduates with 30 percent, compared to India's 10 percent. The report also pointed out that in India, much of the resources are spent on training.    

Rawat mentioned that aside from these factors, Filipinos have strong affinity with the US culture, making it an ideal destination for BPO companies that want to expand their operations.

Also, the report stated that telecom and aviation sectors are feasible markets not only for Tier-2 and Tier-3 cities, but for the growth of domestic outsourcing industry in general.  


Canadian Small Companies still don't Want to Outsource

by @ MicroSourcing.com News Feed

Still Hesistant to Outsource

According to an Angus Reid survey done by the American Express Small Business Monitor last April, 38 percent of owners choose to avert difficult tasks but are having issues when it comes to trusting the quality of other people’s work. Meanwhile, twenty-four percent do not want to endure the difficulties of finding and managing new people.

Subsequently, majority of the survey participants say outsourcing is costly and are unwilling to surrender control of their business. The result clearly proves that small business proprietors in Canada would rather resolve tech issues on their own, even if they lack the expertise, than employ support.  

Forty percent chose to be independent by doing office repairs, cleaning, and administrative tasks.

However, a lot of owners admitted that they are incapable of doing it all, particularly technology-related issues. In fact, 59 percent said they gave in to outsourcing and hired outsiders for at least one of their tasks in a span of six months. Some of the most outsourced processes are website-related and technical support.

According to a monthly report by the National Federation of Independent Business, even small business owners at the south of the border are unwilling to hire, not due to management control issues but because of the weak economy and political uncertainty.


DTI Targets $10B in Foreign Investments

by @ MicroSourcing.com News Feed

PH President Eyeing More Foreign Direct Investments

Apart from creating more jobs and improving the country’s economic state, President Benigno Aquino III and his administration are working on attracting more foreign direct investments (FDI) to gain more than $10 billion a year for the industrial and services sectors.

According to Department of Trade and Industry (DTI) Secretary and Board of Investments Chairman Gregory Domingo, 24 business investors from countries such as Russia, Japan, and Turkey arrived in the Philippines during the first half of 2012 and they are quite interested in shipbuilding, agriculture, energy, steel, garments, and business process outsourcing (BPO).

The Board of Investments’ earlier projection of P400 billion is aligned with the $10 billion FDI goal.

The 2012 Investment Priorities Plan identifies 13 economic functions namely: agriculture/agribusiness and fishery, creative industries/knowledge-based services, shipbuilding, mass housing, iron and steel, energy, infrastructure and PPP, research & development, green projects, hospital and medical services projects, motor vehicles, strategic projects, and disaster prevention and recovery projects, which will receive tax grants from the government.

Domingo noted that President Aquino’s support played a huge role in the development of the country’s position in the global investment community.


Forrester: Security Outsourcing may be Newest Trend in 2010

by @ MicroSourcing.com News Feed

As the number of companies that outsource their security tasks increases, Forrester Research said network security outsourcing may be the newest trend this year. 

The new Forrester report indicated that even though a company outsources security, it is still �accountable for the protection of that data�. Also, service providers must be held responsible in case problems occur. "This is probably the most overlooked aspect of the outsourcing relationship," the Forrester report said. "On paper, you can terminate the relationship with the outsourcer as soon as the contract ends, but in reality, you invest a lot of time, effort and resources in a relationship - and it becomes very hard to change outsourcers quickly."

Security outsourcing is risky, and many companies are still not open to this idea, even as a cost-cutting measure. However, Forrester report said this can be studied by firms which are striving for improved network security at low costs.


Submarine Cable System to Boost PH Competitiveness

by @ MicroSourcing.com News Feed

The $400 million South-East Asia Japan Cable (SJC) submarine cable system of Globe Telecom Inc. is anticipated to be advantageous for two of the major sectors of the Philippines, the information and communication technology (ICT) and business process outsourcing (BPO).

According to Globe Telecom Chairman Jaime Augusto Zobel de Ayala, the SJC system will reinforce the competitiveness of the Philippines and stay as a key player alongside its technology-advanced counterparts around the world.

Zobel noted that the 36.1 million subscribers of Globe will also benefit from the system upgrade, though the ICT and BPO sectors are identified as the basic beneficiaries of this improvement. These employ 700,000 Filipinos and account for $25 billion in revenues.

President Benigno Aquino III was present at the launch of the SJC system which was held at Globe's new Php8-billion tower in Bonifacio Global City.


Gartner Lowers Global IT Outsourcing Projections

by @ MicroSourcing.com News Feed

Renowned tech research firm Gartner Research recently reduced its growth forecast for IT outsourcing this year as companies are seen spending less. It is reduced to 2.88 percent, which equates to $288 billion in total IT outsourcing spending.

Global IT Outsourcing Forecast

Gartner Research Vice-president Bryan Britz identified some challenges faced by the industry. These include the shift in information technology outsourcing (ITO) delivery models, political, economic, and labor environment in outsourcing destinations, and the financial track record of providers. He also noted that 2013 will be similar to 2012 for the Asia-Pacific and Western European markets.

The IT segments that are experiencing growth are cloud technology and data centers propelled by small to mid-sized businesses that are making use of infrastructure as a service (IaaS).

Meanwhile, emerging markets such as Asia-Pacific, Latin America, and Greater China are predicted to grow as high as 13 percent from 2013 to 3014.

However, data from the Information Services Group revealed that hundreds of global outsourcing contracts will expire this year, with a total value of $21.2 billion - 75 percent of the total are IT outsourcing deals.


Data Privacy Act Seeking Aquino's Approval

by @ MicroSourcing.com News Feed

Last week, the Senate and House of Representatives approved the Data Privacy Act. It was then submitted to President Benigno Aquino III for approval.

The Legislative-Executive Development Advisory Council stressed that the security of personal data should be prioritized in this measure. Processes for proper control and practice that will help safeguard personal information in the digital system of government and private sectors are also included in the proposed Act.  

Meanwhile, House Bill 4115 and Senate Bill 2965 were reconciled by the bipartite conference committee report to help create a National Privacy Commission that will be managed by the Department of Transport and Communications (DOTC).

The Data Privacy Act strives to improve the aptitude of the country's business process outsourcing (BPO) sector in the global services export arena and reinforce consumer trust and user confidence to electronic businesses.

The bill recently drew flak from journalists who said that it could limit press freedom and compromise the public's right to information. However, the House of Representatives countered that the approved version will still protect the welfare of journalists and their work, including their sources.

In line with that, Senator Edgardo Angara, Chairman of the Committee on Science and Technology, said that even if the bill aims to protect the integrity and confidentiality of personal data, it will not restrict journalists and media firms for broadcasting news that came from �leaked� information.

Angara reiterated that the measure is created to help attract investors for the e-governance, e-commerce and IT-BPO sector of the Philippines. He also said that other countries already have similar regulations, so it is just normal that the Philippines will follow suit to become more globally competitive.


US IT Service Providers, Universities Team Up to Develop Local Talent

by @ MicroSourcing.com News Feed

Onshore Business Outsourcing Solutions

Several topics were recently discussed between CIO.com and a US outsourcing provider. First off, organizations are said to be in talks of creating a domestic outsourcing model as more and more US companies are not satisfied with the results of their offshore operations. There are also issues on how the impending immigration reform can affect outsourcing in the US and the challenges for the Gen Y.

Onshore outsourcing is now being used by IT services clients to either improve or replace current outsourcing operations.

In a report released by Gartner last May, it was projected that onshore business outsourcing solutions will continue to grow because customers want operations to be closer and business value to be maximized.

Meanwhile, the number of operations that were once outsourced to Indian IT service providers and are now subcontracted to specialized domestic providers had increased.

However, US-based companies that are considering outsourcing processes to local providers face several challenges such as lack of skilled personnel, the aging workforce, and even the basic supply to the growing customer demand.

One of the solutions that key industry players have come up with is the development of the local talent pool. They are teaming up with domestic universities to design programs that can develop the skills needed by candidates to make it in the IT services industry.

A good example is IBM Global Services Investment on Louisiana State University in hopes of growing its Baton Rouge delivery center. Another one is CGI, a company that partnered with Hocking College and Ohio University to reinforce operations in Ohio and Athens.


PH Infrastructure Spending Predicted to Grow

by @ MicroSourcing.com News Feed

Secretary Florencio Abad of the Department of Budget and Management recently said the investment grade rating given by Fitch Ratings to the Philippines can help reinforce the economic standing of the country as it is anticipated to increase the financial ability for socio-economic projects.    

Furthermore, he said they are hoping to draw interest and investments to the country's infrastructure development program which, sooner or later, could lead to infrastructure spending reaching five percent of the GDP, which is the local government's initial goal for 2016. Infrastructure public spending is currently at 2.8 percent of GDP.
Abad noted that additional infrastructure investments can aid the growth of the Philippines' vital industries such as tourism, agriculture, and business process outsourcing.

The infrastructure development projects include rehabilitation and expansion of main roads for agricultural produce, access to tourism zones, improvement of airports and seaports, as well as upgrade of rail and metro-rail transport systems and bus stations in key cities.

Abad is hopeful that with the recent rating upgrade and the continuous growth of key sectors, investors and emerging markets will be attracted to invest in the country.



Outsourcing to Digital Marketing Agency

by admin @ » Blog

Marketing is something that no business can overlook because, in this digitized world, the success of your business completely relies on your marketing strategies. However, as an entrepreneur, you may always be struggling between the dos and don’ts and finding … Continue reading

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SEO experts should be grateful to Google…

by Clinton Dickerson @ CreatorSEO

Why does Google continually change the face of SEO? This makes the SEO field very difficult to master, so why […]

The post SEO experts should be grateful to Google… appeared first on CreatorSEO.

Forrester: 20% of UK & US Firms Say No to Outsourcing

by @ MicroSourcing.com News Feed

Forrester Consulting said approximately 20 percent of Fortune 500 companies included in the survey are still not outsourcing business functions. As stated at Forrsights, these firms are missing out on the advantages of outsourcing such as having a testing centre of excellence, managed testing services or testing-as-a-service (Taas) if they do not see the basic things outsourcing can do for them in the first place.

A report commissioned by Forrester Consulting on behalf of testing major AppLabs stated that 93 percent of the survey participants are looking at Taas, which shows that they are willing to outsource through a service provider to accommodate their business processes.

The report also included that some issues that large firms look into include security breaches, increased regulatory requirements, and pressures to ensure business continuity. This is why they take testing commercially sensitive and business critical software, services, and applications seriously.


PH IT-BPO Eyes Top Spot in other Outsourcing Areas

by @ MicroSourcing.com News Feed

The Information and Communications Technology Office of the Department of Science and Technology (DOST-ICTO), along with the Business Processing Association of the Philippines (BPAP) stated that they are aiming to dominate four more outsourcing markets: Healthcare Information Management Outsourcing, Finance and Accounting Outsourcing, Human Resources (HR) Outsourcing, and Creative Process Outsourcing.

About five percent of the Philippine GDP last year was from the IT-BPO industry. Moreover, with the Philippines' recent domination of the voice-based services segment, $11 billion worth of export revenues, 640,000 direct jobs, and around 1.5 million indirect jobs contributed by the IT-BPO sector, BPAP wants the country to maintain and reinforce its position.

Speaking in behalf of DOST-ICTO, Deputy Executive Director Alejandro Melchor wishes to take over the British and Australian markets as well as develop the country to become the frontrunner in the four niches. Furthermore, he says the Philippines' market share for Information Technology Outsourcing, Engineering Services Outsourcing, and Multilingual BPO will be doubled in 2016.

BPAP Chairman Alfredo Ayala is confident that the 2016 target of $25 billion in revenues, 1.3 million direct jobs, and more than three million indirect jobs can be attained with stronger partnership with the government.


Outsourcing Continues to Evolve

by @ MicroSourcing.com News Feed

The IT outsourcing market appears to be shifting as buyers are adopting sophisticated ways in transferring IT processes.

According to Ovum, the global outsourcing market revenue will only grow four percent next year due to a tougher contract negotiating and restructuring environment. One thing that providers should look out for is the $146bn-worth of contracts that are expected to expire by the end of 2014.

Thomas Reuner, principal analyst at Ovum, told TechRepublic that a lot of people predicted that the outsourcing hype will eventually end. It is still regarded as one of the most strategic tools for businesses and that it will take a long time before its streak ends. One thing will surely change and that is the innovation and emergence of new IT outsourcing factors.

Ovum expected that contracts that are set to end this 2014 in the US will reach $92.3bn. In Europe, outsourcing activity will be subdued because of reforms in procurement processes in the UK.

A key factor seen by Ovum is the cloud as it has great influence on the way services are delivered and the profits of a company.

Reuner noted that the cloud is also a solution that can address cost reduction challenges. It is making IT tools and processes more accessible to businesses.


Global Animation Software Market to Post 18.1% Growth

by @ MicroSourcing.com News Feed

Animation Software Market

A new study titled "Global Animation Software Market 2011-2015" was recently added to Research and Market’s roster of reports. It identified the rising demand for animation content in the entertainment industry as one of the major propellers of the global animation software market’s growth. Another phenomenon seen in the segment is the rising outsourcing activity, though piracy remains a concern.

Some of the renowned players in this segment are Adobe Systems Inc., Autodesk Inc., Side Effects Software Inc., and Toon Boom Animation Inc.

An analyst from TechNavio’s engineering team said a lot of organizations in the animation sector are outsourcing animation work offshore to reduce operational costs. It is also a growing trend in the market. Countries in the APAC region such as Japan, the Philippines, Korea, and India are the chosen animation service provider locations of more advanced countries which make the most out of the cost advantages.

The two types of animation content gaining traction are 2D and 3D as these help movies give better graphical display, productivity, and clearer pictures. An increasing demand for animation work is also seen in the gaming space.


Talent Shortage Still an Issue in PH BPO

by @ MicroSourcing.com News Feed

According to the Business Processing Association of the Philippines (BPAP), job opportunities are abundant in the business process outsourcing (BPO) sector of the country, but candidates for available positions lack the required skills.

During the National Competitiveness Council Dialogues, BPAP President Benedict Hernandez said talent shortage is still a challenge for the BPO sector. In fact, 95 out of 100 applicants fail to make the cut because they do not have enough critical thinking and communication skills that the positions require.

Moreover, majority of the 20,000 students from 72 colleges who took the Global Competitiveness Assessment Test (GCAT), a tool used by BPAP, posted low marks and failed to meet the required rating of the industry.

Hernandez noted that talent is a crucial factor in BPO operations. To address the problem, the industry came up with a program that involves training near-hire applicants or those who almost passed. The program is expected to reinforce the BPO sector's workforce.

Organizations are striving to meet the goals of the IT-BPO industry including $25 billion in revenues by 2016 with a compounded annual growth rate of 20 percent.


PH - One of the Fastest-growing Economies Worldwide

by @ MicroSourcing.com News Feed

The Philippines recently posted a GDP growth of six percent, making it one of the rapidly-advancing countries in the world.

Amidst the Philippines' ongoing territorial tiff with its fellow Association of Southeast Asian Nations (ASEAN) member, China, the country quickly rose to recognition and became the 31st largest economy in the world. At present, it is ahead of reputable nations like Sweden, Singapore, and Austria.  In fact, even with IMF's projection that the Philippines will experience a 5.5 percent growth slowdown in the coming years, it is still considered as a key player in Asia.

However, even with the recent advancements in the country, the Philippines still has a lot to improve on such as poor infrastructure which subsequently affects business operations and its economy's overall growth.

One of the key propellers of the country's economy is the business process outsourcing (BPO) industry. There's a large volume of prominent BPO and IT firms that have chosen the Philippines as the offshore outsourcing destination, and one of those is Accenture. The company has stated that BPO is one of its key growth markets where the overall outsourcing revenue increased 7 percent year-over-year.


PH Exports Break $50B Mark

by @ MicroSourcing.com News Feed

Philippine Exports Grew 33.3%

Exports reached a three-year high last year, relying on an increasing global demand for electronic products, apparel, coconut oil, woodcraft, furniture, and metal components.

The country’s export receipts increased by 33.7 percent, for a total value of $51.39 billion, the National Statistics Office reported recently. This increase exceeds the government-set target of 15 percent for exports.

According to Sergio Ortiz-Luis, president of the Philippine Exporters Confederation, Inc. (Philexport), the value of exports would be higher if the revenues generated from the business process outsourcing (BPO) and services sectors were added.

A strengthening global economy pumped up demand for Philippine exports, with electronic exports increasing by 40.11 percent from 2009, bringing in a total value of $31.07 billion. Most products were shipped to Japan, the United States, and Singapore. Of the three countries, Japan was the Philippines’ top importer for 2010, buying Filipino-made products worth $7.8 billion.


Retailers: Bring Afterpay Into Your Digital Strategy – It Rocks!

by Dana Flannery @ Talk About Creative

Afterpay.  It’s the miracle retailers big and small have been waiting for.  The sudden skyrocketing sales. The sound of buyer objections crumbling like Pompeii on a very bad day.  This is it.  Turns out all the social media strategy and SEO in the world couldn’t help you on this level. All this time, it was …
Read More

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Does Voice Search Really Have Any Impact on SEO? B2B Marketers Need to Know

by Abhishek Kumar @ Design and Rank

Voice search is nowadays becoming the most commonly used tool for searching restaurants, cinema, and many other important places. It delivers quick results and prevents you from spending your precious … Read more

The post Does Voice Search Really Have Any Impact on SEO? B2B Marketers Need to Know appeared first on Design and Rank.

Global outsourcing market up 40%

by @ MicroSourcing.com News Feed

The global outsourcing market recorded a total contract value (TCV) of $24.7 billion in the 3rd quarter; up 40% from the same quarter of last year. The Global TPI Index, conducted by advisory firm, TPI (Technology Partners International), created the quarterly report based on outsourcing contracts worth at least $25 million.

Asia-Pacific earned 24 outsourcing contracts in the third quarter, totaling $6.4 billion. The Americas earned 47 contracts ($12 billion). Europe, West Asia and Africa earned a total of 68 contracts worth $6.5 billion.

As many as 139 transactions were recorded this quarter with the strong numbers being caused mostly by network outsourcing (Telco-to-Telco) contracts. TPI noted that Telco-to-Telco contracts represented over 30 percent of the total market value. Excluding these contracts, the global outsourcing market showed sluggish growth patterns that have typified the last four quarters.

Megadeals both inside and outside network outsourcing deals supplemented growth; with BPO demand remaining high as the current context proves IT outsourcing more feasible than large finance and accounting, HR, and facilities management outsourcing transactions.


US Anti-outsourcing Bill Gains Supporters

by @ MicroSourcing.com News Feed

US Law to Penalize Firms that are Outsourcing

According to The Indian Express, the Call Centre and Consumer Protection Act now has a total of 106 lawmakers who are the bill’s co-sponsors.

The anti-outsourcing bill authored by Congressman Tim Bishop aims to monitor US firms that outsource call center work to offshore locations and keep them from getting federal grants and loans. Bishop hopes that the recent increase in the number of the bill’s supporters will push the Committee on Energy and Commerce to hold a hearing on the legislation.  

Bishop noted that the law is specifically for firms which are taking advantage of local taxpayers by taking millions of allotted incentives for the local communities. Aside from keeping US firms with offshore operations to get grants, the act, if signed into a law, will also require call center agents to inform callers in the US their location and give them the option to be transferred to a local agent.


Four Important Search Engine Factors That Affect Your Ranking On Google

by positron @ Outshine Solutions Pvt. Ltd.

Google’s algorithms like Hummingbird, Penguin, Panda or any other smartest algorithm are continually changing, so you cannot depend on yesterday’s SEO ranking factors. Also, you can boost your SEO tasks just by focusing on a couple of search ranking factors such as mobile-first user experience, backlinks or Rank Brain- also called as a machine-learning artificial […]

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Outsourcing Used by Two-thirds of Marketers

by @ MicroSourcing.com News Feed

Online Marketers Leverage Outsourcing

According to an Aquent report, two-thirds of marketers outsource strategy-related processes to focus on core goals. Factors that contributed to the decision of over 70 percent of the respondents to outsource are lack of resources and skill inadequacy.

As web marketing continues to evolve, firms are trying hard to catch up with the changes and employ workers who have the right skillset for the job. In fact, less than half said they were able to hire candidates who met their requirements.  By hiring third-party service providers, several processes of web marketing can be assigned to them. This then enables companies to make best use of the expertise of the external provider, as well as maximize internal resources.

Marketing professionals now face new processes that are involved with digital marketing. They now want to be more visible online through processes like search engine optimization (SEO). But to be able to do so, they would need the right skills and expertise.

The new processes require a proactive team that is able to act on the latest trends and apply these to the brands that they are handling. Others consider outsourcing to be able to fill the strategic gaps as the industry evolves.


India Losing BPO Business to PH

by @ MicroSourcing.com News Feed

According to report released by Oxford Business Group, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the Philippines is set to take nearly $30 billion of India's foreign currency earnings. India had already lost 50 percent of the business to other countries valued around $25 billion.

The institution said the lion's share of business lost has been moved to the Philippines. One of the factors that contributed to this is the high number of employable graduates in the country which is 30 percent, compared to only 10 percent in India. The English proficiency of Filipino graduates and their neutral accent also make the Philippines a preferred choice. Large BPO providers such as Accenture and Convergys have been operating in the country, employing a total of 60,000 people. Other major providers are Teleperformance, Teletech, Stream, and Sykes.

In a survey of 100 BPO destinations released by Tholons, Manila was identified as the second most important BPO hub globally, pushing Mumbai down to third place. The top BPO destination is still Bangalore. However, seven of the Philippines' key outsourcing cities made it to the top 100 list, while two are in the top 10.

ASSOCHAM Secretary-general D S Rawat said India will lose as much as 70 percent of call center and voice processes to foreign competitors such as the Philippines, and this could happen within the decade.


DOLE, BPO, ICT Form Code of Good Practices

by @ MicroSourcing.com News Feed

PH BPO - ICT Compliance Codes

Together with the Department of Labor and Employment Region 3 (DOLE3), the business process outsourcing (BPO) sector and Information Communication Technology (ICT) groups formed an agreement called Voluntary Code of Good Practices. This symbolizes DOLE’s effort in preserving camaraderie among firms in Central Luzon. The code involves the TC-BPO/ICT or the Tripartite Council in BPO and ICT and includes voluntary compliance to labor standards and occupational safety and health standards.

Geraldine Panlilio, Assistant Regional Director of DOLE3, said the Voluntary Code of Good Practices covers benchmarking, policy consultations, training programs, and social dialogues to encourage cooperative growth among BPOs and ICTs.

Other objectives of the code are related to health, safety, security, and the environment. It also covers factors such as strengthening DOLE's collaboration and partnership with different government agencies for unified strategies, approaches, and programs in the advancement of BPO-ICTs, among others.

Those who support the code are expected to follow proper monitoring mechanisms through self-regulation, best practice/s recognition, and benchmarking.

Leopoldo De Jesus, DOLE’s Regional Director, said this is an initiative that aims to establish and maintain good relationships between labor and management in businesses in the area.


Healthcare Outsourcing Segment Aims to Employ 100,000 by 2016

by @ MicroSourcing.com News Feed

Healthcare Outsourcing Philippines to create more Jobs

With the robust global healthcare outsourcing industry which is expected to reach $162 billion next year, the healthcare information management outsourcing services (HIMS) segment of the Philippines aims to employ 100,000 by 2016.   

According to Dr. Penny Lauchangco, President of the of Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), the Philippines currently employs 66,000 which is just a portion of the global healthcare outsourcing industry. The executive added that the requirements in the industry are continuously evolving, and demand is growing.  

Lauchangco noted that the country has the resources needed and they are doing their best to tap them to reach the target of 100,000-strong workforce by 2016. Healthcare information management is said to be the largest contributor to the growth, and the United States has the largest market share.

Growth in the healthcare information technology industry is seen in the establishment of new players, as well as the spread of high-value and specialized processes that cater to the complex requirements in the healthcare industry.

One of the challenges cited by Lauchangco is the shortage of skilled candidates who match the requirements of the segment. She also pointed out the lack of partnership among private and government institutions that can help address talent pool problems. Meanwhile, she said HIMOAP is committed to achieving the necessary human resources requirements that can empower the country to be one of the preferred healthcare IT outsourcing destinations.


New List of �Next Wave� Cities Released

by @ MicroSourcing.com News Feed

The Philippines' Next Wave Cities for Outsourcing

The Information Technology and Business Process Association of the Philippines (IBPAP) and the Science and Technology department of the country released the latest ‘Next Wave’ Cities list. It included Baguio City, Davao City, Dumaguete City, Iloilo City, Lipa City, Metro Bulacan, Metro Cavite, Metro Laguna, Metro Naga, and Metro Rizal.

The so-called ‘Next Wave’ cities are identified to score well in terms of talent, infrastructure, cost, and business environment. These locations are also called Centers of Excellence. These do not receive government incentives but are highly regarded and promoted to investors.

Bacolod City is also dubbed as a Center of Excellence alongside Metro Manila, Metro Cebu, and Metro Clark.

Areas that are grouped as "metro" are said to have the appropriate talent and infrastructure. These include Baliuag, Calumpit, Malolos City, Marilao and Meycauayan City of Metro Bulacan. Bacoor City, Dasmariñas City, Cavite City and Imus City for Metro Cavite and for Metro Laguna, there’s Cabuyao City, Calamba City, Los Baños, Sta. Rosa City, and San Pablo City. There’s also Naga City and Pili of Metro Naga, and Antipolo City, Binangonan, Cainta, and Taytay for Metro Rizal.

IBPAP is also keeping an eye on Batangas City, Cagayan de Oro City, Dagupan City and Tagbilaran City as these are considered as emerging locations.


PH Ready to Face External Shocks, Says Standard Chartered

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A study done by Standard Chartered Bank confirms that the Philippines will remain resilient against external shocks as it encompasses solid and buoyant economic fundamentals. The financial institution pointed out that most of the challenges did not affect the country’s market or economic variables. The bank also said the stable environment of the local economy has been driving the Philippine fundamentals and market metrics in recent years and external shocks would weaken but not critically damage domestic fundamentals.

It was also revealed that in Asia, the Philippines is one of the countries with the lowest external debt to GDP levels. It is currently at 17 percent or 0.6 times foreign exchange reserves and only eight percent of foreign obligations mature in a year.

Moreover, the report noted that the country’s current account surpluses since 2003 have cushioned balance of payments vulnerabilities. Even the strong business process outsourcing industry and steady inflow of remittances from overseas Filipino workers have supported services exports and boosted income receipts.

The bank shared a breakdown for the two segments, stating that the BPO industry exported $15.6 billion of services accounting for 5.5 percent of GDP, and received $20.4 billion in remittances last year. The country’s foreign reserves are likewise said to be sufficient.

It also highlighted that major credit rating agencies have been observing the resilience of the country. Moody’s, S&P, and Fitch recently gave the country a sovereign investment grade.


How Corporate Culture Affects Outsourcing Relationships

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The report "The Culture Value Chain: Business Impacts Defined" by Frost & Sullivan highlighted the advantages of having a strong corporate culture.

The report discovered that a large number of organizations team up with a third party service provider for customer support, and that clients who prioritize cultural compatibility are more likely to succeed in the long run compared to those who focus on cost savings.

If possible, businesses should find outsourcing partners that have similar experience, environment, and practice as they do. The key areas they should look into are employee engagement and top-line growth, especially if their internal voice operations are culture-focused. By doing so, they can prevent "cultural misalignment", which is a threat to successful outsourcing relationships.

Tephen Loynd, Contact Global Program Director at Frost & Sullivan, pointed out that both parties should be at the same page when it comes to culture. This creates a neutral environment that will reinforce the partnership in the long run. He added that even premium brands strive to achieve a great company culture, because they know that it plays a crucial role in creating a positive customer experience.

Loynd added that top-line growth for clients of outsourcing companies is usually built on low attrition rates, long tenure, and proper motivation for employees.


Cebu Poised to become KPO Hub

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Information Technology consultancy firm Tholons and the Cebu Investment Promotions Center (CIPC) signed a memorandum of understanding that aims to craft a road map which will push Cebu to become an ideal outsourcing destination for higher-value services.

Knowledge process outsourcing or KPO means transferring work that requires highly specialized skills and experience to a service provider. This includes IT, research and analysis, as well as financial and legal tasks.

With the province's outsourcing capability, pool of available workers, and other factors suitable for outsourcing, Jonathan D. de Luzuriaga, Tholons managing director for Southeast Asia, said Cebu is poised to become an ideal destination for KPO work. "Cebu is basically ripe for this (KPO). It has all the requisites needed for a city to become a KPO hub.�

The study will include implementation of online tests to determine whether or not the talents of Cebu's workforce are suitable for KPO requirements. According to Joel Mari S. Yu, CIPC managing director, the road map will determine the position of the province in the KPO industry, and match skills of workers with what the industry demands.


IT-BPO to take Center Stage in �Next Wave Cities�

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A mobile marketing event for the IT-BPO will be held by the Information and Communications Technology Office of the Department of Science and Technology (DOST-ICTO) in regions outside Metro Manila. These areas are also known as the ‘Next Wave Cities’ (NWCs).

Next Wave Cities for PH IT-BPO

Next Wave Cities are identified as IT-BPO qualified locations outside the National Capital Region and Metro Cebu.

According to DOST, the event aims to increase applications, promote the outsourcing industry to graduates, and clarify some false impressions about the sector. It will last for four months and will be held in different locations.

The dates for the IT-BPO road show are as follows: Palayan City, September 7; Tagbilaran, September 13; Zamboanga, September 28 -29; Malolos, October 4-5; Clark Special Economic Zone, October 10-11; Bacolod, October 15-16; Cavite, October 25-26; and Davao, November 9-10.

The institution added that the road show aims to tap Smarter City/Rural regions to improve the social and economic standing of the regions by means of ICT. Moreover, partnerships that will provide employment opportunities and training programs with the private and public sectors are highly anticipated for the IT-BPO industry.

Alejandro Melchor, DOST-ICTO Deputy Executive Director for Industry Development, said it would be more beneficial to the country if other regions that have high volumes of graduates can benefit from the IT-BPO sector, especially now that major cities are already saturated by outsourcing operations. He said it would result to a more balanced development throughout the country.


PH Posts Low Services Exports, though BPO Stays Strong

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The first quarter data report recently released by the World Trade Organization and the United Nations Conference on Trade and Development showed that even if the Philippines has a robust business process outsourcing (BPO) sector, it’s still far from matching its neighbouring countries in terms of the overall commercial services segment.

BPO sector robust but still outdone by fellow Asian regions

Processes like BPO, financial services, tourism, transportation, as well as shipping and telecommunications make up the country’s commercial services export segment. It posted an 8.9% growth rate for this year’s first quarter, but was outdone by fellow Asian regions such as Indonesia, Malaysia, Singapore, and Thailand.

During the first quarter of 2011, the Philippines traded $3.8 billion worth of commercial services, while it reached $4.14 billion in the same period this year. Meanwhile, the Southeast Asian region was led by Singapore with $28.16 billion. Thailand posted $11.9 billion, Malaysia with $9.1 billion, and Indonesia with $5.6 billion.

The country was still at the bottom in terms of importing. Last year, the country imported $2.78 billion worth of services for the first quarter, whereas it increased 7.9%, reaching $3 billion in the same period this year. Nearby countries like Indonesia posted $8 billion, Malaysia with $10.3 billion, Thailand with $12.7 billion, while Singapore posted the largest figure at $27.5 billion.

The data also stated that the country’s commercial services surpassed the global rates in exports (3%) and imports (5%).


Software Development Deemed as Next BPO Battleground

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Software development is the next big thing in the business process outsourcing (BPO) industry. This is based on a report entitled "The Role of Proprietary Software in BPO" by Samad Masood, IT Services senior analyst for Ovum, a global analyst and consulting company.

Software Development to Play a Major Role in BPO Services

According to Masood's report, the role of software development in BPO is further valued as service providers use it for more efficient service delivery and to enable them to use cloud computing technologies.

Masood added that proprietary software development will play a major role in providing BPO services "as it can significantly reduce the cost and/or requirement for significant technology platform transformation when transitioning to a BPO services provider."


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Protests Force Indian IT Firms to Close Down for a Day

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Due to the nationwide protests of opposition parties as they criticize fuel price increases, several major IT services firms in India - TCS, Wipro, and Infosys - were forced to cease operations last Monday which turned out to be a holiday to observe the US Independence Day.

Infosys Chief Executive Krish Gopalakrishnan said they stopped operations last Monday, but arrangements were done so those who were assigned to take on BPO projects were still able to work. On the other hand, a Wipro spokesperson said work was not affected.

Nasscom, India's software industry trade body, warned that this had a negative impact on the position of India as an outsourcing destination. According to Sangeeta Gupta, vice president of Nasscom, if the US Independence Day was not observed last Monday, the one-day stoppage of operations would have a much greater impact to the industry. �For the BPOs, the impact was less and the holiday in the US came as a blessing in disguise, but for the IT companies... the business sentiment got hit,� Gupta said.


Filipino Animators, Game Developers Trained in South Korea

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Select animators and game developers in the IT-BPO sector to train in South Korea

According to the Information Technology and Business Processing Association of the Philippines (IBPAP), select Filipino animators and game developers are set to undergo training through the partnership of the local information technology-business process outsourcing (IT-BPO) sector and the South Korean government.

IBPAP identified animators Cynthia Javier and Nelson Udaundo and game developers Joyce Macaspac and Joie Sales - chosen by the Technical Education and Skills Development Authority (TESDA) - to participate in the training program in Gyeonggi-do, Paju, South Korea for two months. Other organizations that helped coordinate the training program are the Korea International Cooperation Agency (KOICA), and the Korean Chamber of Commerce and Industry (KCCI).

Courses in the program include design and construction, software program education, graphics modeling, texturing and lighting, game art, as well as 3D Max, Unity 3D, and Java.

Uduando said the animation and game design industry of the Philippines is similar to South Korea’s as both countries are familiar with the Western culture, practices and even challenges. However, one thing to take note of is Korea’s ability to revive the industry through original content, which helped them accumulate quite a following in the animation market.

Meanwhile, Grace A, Dimaranan, President of the Animation Council of the Philippines Inc. (ACPI), said the animation and gaming sectors present more opportunities for the country’s information technology and business process management industry. With training programs like this, future animation industry leaders can help navigate the next generation and maximize their potential.

IBPAP cited MarketsandMarkets’ report that the Philippines ranked third after South Korea and India in the animation and game development sector. The Philippines accounted for 10 percent of the market share, while India takes 40 percent, and South Korea has 15 percent. The global animation and gaming market is projected to grow up to $242.93 billion by 2016, from $122.20 billion in 2010.


DOLE: More BPO Jobs after Rejection of Anti-outsourcing Bill

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According to Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz, the recent rejection of the anti-outsourcing bill in the US could result to more job opportunities in the business process outsourcing (BPO) sector for the Filipinos.  

She added that as long as the ICT-BPO industry continues to grow, more jobs will be created for those who are actively seeking employment. Furthermore, she said that by 2016, jobs in the sector would likely increase more than two-fold, reaching 1.3 million. The industry currently employs more than 600,000 individuals.

By means of a voting process in the US Senate, the bill, which aims to stop US-based companies that are subcontracting jobs offshore from receiving government grants, was rejected with results of 56-42.  


Global HCIT Outsourcing Market to Reach $50.4B by 2018

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Healthcare information technology outsourcing market predicted to reach $50.4B

As the health insurance, healthcare systems, and pharmaceutical industries continue to drive the healthcare information technology (HCIT) outsourcing market, ResportsnReports.com recently shared their forecast for the global HCIT outsourcing market, predicting that the market will reach $50.4 billion by 2018 from $35 billion in 2013, with a CAGR of 7.6 percent.

Cost reduction, focus on core business, access to skilled and trained IT staff, shared risk, and innovation are some of the reasons that drive the growth of the outsourcing model in the healthcare segment.

The largest HCIT outsourcing market is North America (72 percent), and is anticipated to grow from $25 billion in 2013 to $36 billion by 2018. As for the CAGRs, Asia-Pacific takes first place with 8.1 percent, RoW is poised to post 7.8 percent, North America is third with 7.6 percent, and Europe with 7.2 percent.
Although outsourcing is a fairly new concept in the healthcare information technology market, it is considered as an innovative delivery model that helps improve efficiency in the management and administrative divisions of healthcare organizations. It is also expected to streamline processes with the implementation of reforms and the growing demand for quality care.

While large organizations are usually seen outsourcing healthcare IT processes, more and more mid-sized companies are seen outsourcing as well. Some prefer to outsource parts of their key application work such as EMR, CRM, and billing systems, while others opt to outsource the entire information management system.

The growth of the market is being fuelled by the increasing pressure to alleviate healthcare costs globally, the need to improve cash flow within organizations, better IT management systems or healthcare providers, payers, and life science division.  Moreover, the HCIT outsourcing market is being driven by new coding guidelines brought on by the implementation of the ICD-10, rise of aging population, rising medical tourism in Asia, and the fact that organizations are having a hard time finding IT experts who will assist in integrating new solutions.


Contract Value in BFSI Outsourcing Drops

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A study done by Everest Group reveals that the Banking Financial Services and Insurance (or BFSI) segment worth $100-110 billion, one of the outsourcing industry's major markets, experienced a 25% decline in contract value in 2012 from 2011.

According to the report, the decline in contract value in the BFSI market is covering another major issue which is the challenge of procurement and management of large application deals. While the quantity of BFSI outsourcing contracts almost didn't change, the decline in contract value last year was fairly visible. The BFSI market that experienced the decline last year was EMEA (Europe, Middle-East, and Africa), while North America has been experiencing the decline for the last three years.

It also showed that in 2012, large application deals in the BFSI sector remained flat, but the value of total contracts improved. Moreover, since banking buyers are looking for solutions to reduce costs, the demand for application maintenance services increased.

Also, outsourcing in the loans and credit card segment increased last year, while commercial and retail banking outsourcing activity declined.


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PH Government Eyes $50B Revenues from ICT-BPO

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With the continuous growth of the information and communication technology (ICT) - business process outsourcing (BPO) sector of the country, the government is optimistic that it will reach the revenue target of $50 billion by 2016.

PH ICT-BPO Seen to Generate $50B in Revenues

During the recently concluded Cebu ICT and BPO Summit, ICT Office Executive Director Luis Casambre said with the current growth rate of the sector, the revenue target can be met easily. He added that the projected $50 billion will be able to provide more jobs for Filipinos.

Furthermore, Casambre said the BPO sector is the second largest revenue contributor last year, adding $10.9 billion to the country’s Gross National Product.

During the first year of the ICT Office as an attached agency of the Department of Science and Technology (DOST), it has managed to continue operations and implement projects. These include continuation of the E-government project, creation of a Cyber Security Program, as well as the continued development of industries related to ICT.


PH BPO Industry Eyes $13B in 2012 Earnings

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PH BPO industry targets 19% increase in revenues

The business process outsourcing (BPO) industry of the Philippines is targeting an increase of 19 percent in revenues reaching $13 billion this year. According to Martin Crisostomo, External Affairs Executive Director at the Business Processing Association of the Philippines (BPAP), this is about $2 billion higher than last year’s $10.9 billion.

Crisostomo said the organization is expecting an increase in earnings this year due to an escalation in demand for voice-based and non-voice processes by companies that are striving to remain competitive. Furthermore, he anticipates that the voice segment will grow and propel the country’s revenues. Also, most Filipinos are proficient in the English language, making the country a favoured outsourcing destination especially for call center work.

The non-voice segment is also predicted to grow due to an increase in the demand for high-end processes such as financial services or accounting, health services information management, and software development.

BPAP remains confident that the industry will reach its revenue goals. However, they are taking into account the pending bills in the US that urge firms to bring jobs back home.


Strong Peso Pushes BPO Firms to Relocate

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Strong Philippine Perso Driving BPOs Away

A number of local business process outsourcing (BPO) firms recently said some of their clients are planning to withdraw operations in Manila if the peso continues to rise.

According to the Information Technology and Business Process Association of the Philippines (IBPAP), majority of the organization’s members are seen deferring expansion plans or are moving their business to less expensive outsourcing hubs.

Moreover, Gillian Joyce Virata, Deputy Executive Director at IBPAP, said the PHP 41 to USD 1 exchange rate is tolerable for the outsourcing industry, but if the peso strengthens further, they will have no other choice but to opt for more economic allocations.   

However, she said the local BPO industry will retain its goal in the industry roadmap for 2016 because the Philippines is still the leading destination for voice-based processes. Furthermore, the country is the second largest outsourcing hub for non-voice processes. The industry is projected to represent eight percent of the country’s gross domestic product by 2016 by contributing $25 billion in revenues and employment of 1.3 million Filipino workers.


Business Model Movement of Indian IT Firms

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Business transformation is not only the mantra of Indian IT firms, but also that of the country's business process outsourcing sector. With a value of $16 billion, the sector is now offering higher value service besides voice and data entry to telecom, technology, healthcare, energy, utilities verticals, and most notably in the financial services. 

Given the new name business process management (BPM) from last year's BPO, India's IT industry body Nasscom has seen the industry moving towards the delivery of transformational impact to clients, instead of hinging on cost.  Nasscom President Som Mittal, said customers are more focused on hiring service providers that can help run their businesses more efficiently, which can then lead to revenue enhancement.

According to a recent study conducted by Nasscom on India's IT-ITeS sector, it was concluded that BPO companies are in the midst of developing industry-specific solutions which tackle long-term data management projects and building capabilities in core verticals. This is made possible by the addition of high-end services, and client interaction via social media.  Industry experts have observed that the movement from cost-based to outcome-based model is being done with the help of emerging technologies such as Big Data, social media, analytics, and cloud.
Outsourcing advisory company Avasant's President Pradeep Mukherji noticed that almost all new outsourcing deals are a combination of high-value processes and basic services, when it used to be highly concentrated on telemarketing, data entry, and business support. At this moment, clients are looking for a combination of process optimization, web collaboration, transformation, and revenue enhancement.


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RP Call Centers Air Concern over Proposed US Bill

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Contact centers in the Philippines were alarmed at the US bill proposed by Democratic Sen. Charles Schumer as this may force US firms to stop outsourcing voice-based work to foreign locations.

In the proposed bill, companies are required to inform customers that their calls are being outsourced outside the US, and to which country. A $0.25 excise tax will be imposed for every customer service call transferred to another country. In a statement, Schumer said this bill will encourage companies to bring call center jobs back to and maintain current ones in the US.

According to Jojo Uligan, corporate secretary and executive director of the Contact Center Association of the Philippines (CCAP), outsourcing to the country enables US firms to save up to 30 percent. Once passed, the bill might force American companies to stop transferring call center work to a foreign country.


Outsourcing Experts Seek more Cooperation

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Global Outsourcing Summit 2009

In the third Global Outsourcing Summit held in Jiangsu, East China, government leaders and outsourcing executives said more cooperation is necessary towards a new economy.

"Outsourcing is a gateway leading to a new economy," said Dominique de Villepin, former French Prime Minster and current global president of the Asia-Pacific CEO Association. "We should be committed to improving operating efficiencies through strengthening dialogue in order to create a shared, bright future for all of us."

He added that infrastructure and education are two crucial elements in outsourcing, that is why government support will play an important role in the growth of the industry.

Executives from multinational outsourcing companies also shared their insights in a forum held at the said summit.


Peso Seen to Reach 40.50 by End of 2013

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Economists in the Philippines predict that the Philippine peso will reach 40.50 versus the dollar by the end of this year, due to the recent investment grade status by debt watcher Standard and Poor's (S&P).

According to Economist Emilio Neri Jr. of the Bank of the Philippine Islands, if the peso's value hits 40.50 to 1 USD this year, it will be exceeding the 40.57 record for the past five years. He added that there's a possibility for Philippine-issued assets to be prioritized by investors who closely follow S&P.

Meanwhile, Euben Paracuelles, economist at Nomura Ltd., stated in a separate research that the upgrade from S&P could mean that it's confident that the upcoming results of the senatorial election will enable President Aquino to approve reforms and should the President's camp win, it could result to the peso hitting 40.55 to a dollar.

Revenues from the business process outsourcing (BPO) sector and remittances from OFWs are predicted to counter the balance of payments (BOP), and could even generate surplus that could push the peso further

The Bangko Sentral ng Pilipinas (BSP) said the peso appreciated 0.6 percent during the first quarter and was the second-best performing currency in Asia in 2012.


Indian Animation Industry to Reach $1bn by 2012

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Animation Industry in India

It is expected that the animation industry of India will see a 22 percent compounded yearly growth rate until 2012, which makes the industry likely to reach $1 billion. In 2008, the industry was estimated at $494 million.

"Globally, the animation industry is poised to touch USD 100 billion by 2012 and India's animation industry is expected to hit USD 1 billion by 2012, aided by increased outsourcing and a growing domestic market," Ram Kumar Worrier, head of the Maya Academy of Advanced Cinematics (MAAC) Business, said.

Meanwhile, Ketan Mehta, founder of the MAAC, said technical expertise, telecommunications infrastructure, as well as the pool of English-speaking animators and graphic designers are the factors that make India ideal for animation work. He added that when it comes to animation, the country is heading in the right direction.



PEZA Cites Eastwood City as Top IT Hub in 3 Categories

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Eastwood Cyberpark Philippines cited as Top IT-BPO Location

Eastwood City Cyberpark, the Philippines’ first registered information technology (IT) park, was recently cited as the leader in three key categories by the Philippine Economic Zone Authority (PEZA): export revenues, salaries and wages, and number of direct employees.

Out of US$5.85 billion worth of exports, Eastwood City’s outsourcing and offshoring locators contributed US$486.29 million in export revenues for 2011, a 37.27 percent increase from US$354.19 million recorded in 2010.

Salaries and wages of employees amounted to P10.42 billion, a 31.4 percent increase from 2010’s P7.93 billion. Eastwood City Cyberpark’s PEZA-registered locators also employed the most number of direct workers, providing 31,044 jobs last year. This is a 60-percent increase since 2010. Meanwhile, real estate giant and developer of Eastwood City Cyberpark Megaworld said if non-PEZA locators were included, nearly 40,000 jobs would be reported by the IT park.

Jericho Go, Megaworld’s FVP for Business Development said Eastwood City Cyberpark has made an impact to the lives of numerous Filipinos by providing job opportunities. He is confident about the future of the IT park which is predicted to contribute US$500 million in revenues this year.


New Grads Urged to Work in Local Outsourcing Firms

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After seeing a decrease in the number of job applicants in local outsourcing companies, the business process outsourcing (BPO) industry of Dumaguete City, Negros Oriental urged new graduates to apply in local firms instead of finding work in major locations such as Metro Manila or Cebu.

BPO industry in Dumaguete launches campaign to cite advantages of working locally

The BPO industry of the province has launched a campaign to cite the advantages of working locally. Suzanne Lu-Bascara of Spi Global based in Bacong town said while wages are higher in Manila or Cebu, it is still better to work in the province, considering that a BPO employee working in Manila would have to spend a big part of his/her salary on rent, food, and transportation.

It is estimated that the province needs more than 2000 full-time BPO employees this year. Dana Fortunato of BPO firm Student Universe said they need to get workers locally instead of looking for manpower outside the province. She added that the industry as well as local government units and schools must work together to meet the manpower needs of the province this year.


PH a �Rising Star� amidst Economic Downturn

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Philippine has a Steadfast Economy

Notable personalities from Moody’s Investors Service recently shared their insights about the current state of the economy of the Philippines.

One of the debt watcher firm’s divisions said the country is a "rising star" in a depressed global economy.  They also said if improvements in business and governance policies continue, the country can mature by eight percent by 2016.

Meanwhile, Glenn Levine, Senior Economist at Moody’s Analytics, said the Philippines could post between 6.5 percent and 7 percent growth this year up to 2014, both hitting the projected figures of the government.

He added that the Philippines already had accessed easy opportunities but if reforms continue, the country could achieve a growth rate of eight percent by 2016.

The current administration’s projections vs. medium-term targets are 6-7 percent for 2013, 6.5- 7.5 percent next year, 7-8 percent in 2015, and 7.5-8.5 percent three years from now.

Moreover, Levine said the increased spending of the government on infrastructure and office space can lead to "sustainable" growth.

The business process outsourcing (BPO) sector is predicted to counterbalance some weakening exports such as the trade of electronics, which posted a drop of 9.4 percent.

Another concern is the struggling inflation environment of the Philippines that has prompted the Bangko Sentral ng Pilipinas (BSP) to exert extra effort in reinforcing the flagging lending activities and improving growth.

For this year’s first quarter, inflation is at 3.2 percent, which is almost at the bottom of the 3-5 percent projection of BSP for the year. In line with that, consumer prices increased at an average rate of 3.2 percent last year and the overnight borrowing rate is at its lowest with 3.5 percent.

However, the recent investment grade rating upgrade from Fitch Ratings was cited to be the Aquino government’s "greatest achievement".


Firms Urged to Avoid Common Outsourcing Pitfalls

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Outsourcing Partnership Challenges

Luxoft, a leading offshore software development company, urged businesses to plan accordingly to avoid the common mistakes when it comes to transferring IT processes and delegating responsibilities.

According to Luxoft’s president and CEO Dmitry Loschinin, these pitfalls include failure to match requirements with what the provider can actually deliver, and choosing a company which does not have the capability for high-performance outsourcing. Also, he said that many firms underestimate how important having an effective communication is in an outsourcing relationship. "Without clear roles, responsibilities, and collaboration in place, the client and outsourcer teams may adopt divergent strategies that can dilute the value of the outsourcing engagement," he claimed.

Loschinin said companies must conduct regular transparency checks to ensure that both parties follow the workflow process and avoid problems later on.



PH Eyes P3.8T Investments, $117B Exports

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The Philippine government is expecting a cumulative investment of P3.8 trillion over the next six years, with exports reaching $117 billion.

According to Philippine Trade and Industry Secretary Gregory L. Domingo, the said growth targets would be due to improved governance and the implementation of policies that sustain economic growth.

�The Aquino Administration's thrust to improve governance, the implementation of right policies coupled with a strong private sector will provide impetus for the attainment of for high sustained economic growth,� the cabinet official explained.

Domingo, speaking at yesterday's year-end briefing of economic managers, enumerated the following sectors: construction, agro-industry, electronics and semiconductors, tourism, and business process outsourcing (BPO) - as drivers of economic growth for investments and exports.

�But we would like to find a new BPO, meaning a new sunrise industry one that would be able to create half a million or more jobs,� said Domingo. �Perhaps, we can have coconut-based industry as the next sunrise industry also.�

The cabinet official said the BPO industry was very vital in improving the net services trade balance.

The projected P3.8 trillion would represent the total investments generated by the government's investment promotion agencies by the end of Philippine President Benigno Aquino III's term in 2016.


Gartner Predicts Global IT Spending to Reach $3.7 Trillion this Year

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According to research and advisory firm Gartner, the global Information Technology (IT) spending will hit the $3.7 trillion mark this year, with $1.01 trillion coming from emerging markets. It is also predicted that India will see growth in IT spending. In 2012, it is predicted that IT spending will increase by 9.1% to $79.8 billion.

This can be attributed to enterprises which are investing more on IT systems amidst global financial woes. However, according to a separate report, the US market is now becoming saturated. Two-thirds of the yearly revenues of India's IT industry come from US companies.

Senior Vice-president and Global Head of Research Peter Sondergaard said firms are getting more interested in IT outsourcing to address challenges or improve certain processes such as customer support, supply chain management, etc.  He added that IT has become one of the main processes and functions that companies need to expand nowadays, with more or less 350 companies around the world investing more than $1 billion this year in IT for business growth.


RP primed for post-crisis

by @ MicroSourcing.com News Feed

The JFC (Joint Foreign Chambers) along with Philippine Government agencies, are in the process of producing a road map that will maximize the growth of key sectors in the Philippines as the global economy shows signs of recovery.

Identifying key sectors primed for post-crisis

Henry Schumacher, executive vice president of the European Chamber of Commerce in the Philippines, stressed the importance of identifying “who is going to do what and when” in areas that the Philippines has a significant advantage over foreign competitors. These areas are agribusiness, creative industries, information technology-business process outsourcing (IT-BPO), tourism and wellness, infrastructure, manufacturing, and logistics, and mining.

The month-long meetings, which began on September 15, will conclude on October 15. In ensuring the key sectors are primed for the post-crisis, Schumacher voiced concerns regarding legislative functions amid the onset of presidential elections; which take place in 8 months.

“We will have a dialogue with government agencies on what can be done administratively. We want to see some cuts in bureaucratic barriers and come up with administrative innovations,” Schumacher said.


5 Types of Links That Earns Penalties in SEO

by Arun Singh @ Design and Rank

Do you know for search engines that crawl the infinite metropolis of the web, links are the roads between pages? By using refined link analysis, the engines can determine how … Read more

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CRM Outsourcing Market Predictions

by @ MicroSourcing.com News Feed

Philippines' Workforce make it an Ideal BPO Hub

According to IT and software consultancy firm Ovum, the Philippines is still a preferred outsourcing destination due to its competitive rates and large, English-speaking workforce. Records show that the customer relationship management (CRM) segment has a potential to make the country a non-voice and non-English-speaking delivery hub.

The robust economy of the Philippines is also making it an attractive candidate for outsourcers and the emerging domestic market. Ovum’s Associate Analyst and co-author of the report Margaret Goldberg said their research during their visit to the country showed them that the Philippines will maintain its position as one of the leading offshore front-office outsourcing hubs.

She added that the proven track record of Filipinos in customer service, their affinity to Western culture, strong command of the English language, and economical price points will reinforce the growth of the outsourcing industry of the Philippines.
Goldberg also predicted that this year’s 117,000 agent positions will grow to at least 173,000 by the end of 2017.


Aquino: PH Ready for New Zealand Investors

by @ MicroSourcing.com News Feed

President Aquino: PH now Ready for Investments

During the Philippine-New Zealand Business Forum, President Benigno Aquino III mentioned the hard work his administration has done to restore order. The administration battled corruption, reformed budget provisions, and implemented stricter rules in sourcing. He then quipped that now is the time to invest in the Philippines.

He added that the current government was able to accomplish crucial factors that were not addressed by his recent forerunners, one of which is to possess a business environment based on fairness and integrity. His administration was also able to promote transparency and equality among businesses.
Furthermore, he informed New Zealand investors that they can find the right partners based on their competency and not through political favors or “under the table” processes. Other industries and products such as electronics, home furnishings, and garments were also mentioned by the President.
According to the President, the robust business process outsourcing (BPO) industry had contributed $.7.38 billion in revenues for 2011, fuelled by customer-oriented Filipino workers.

EU-PH Trade Reaches Record-Highs last Year

by @ MicroSourcing.com News Feed

2014 witnessed the highest trade flows between the European Union and the Philippines. This puts the union of 28 member-states in the same position with the US as Southeast Asia’s third trading partner.

A 16-percent increase in trade in goods was seen between the Philippines and the EU last year where it grew from €10.8 billion in 2013 to €12.5 billion. It also produced a surplus of €1.1 billion in goods as stated in the data collected by the EU Delegation.

The Philippines’ second biggest source of imports is the EU. Consequently, EU’s exports of goods to the country increased by 70 percent over the past three years.
Trade in services also rose by 17 percent to €3.1 billion in 2014, producing a surplus worth €300 million for the Philippines. Transport, business process outsourcing, and finance sectors dominated the services trade.

According to the EU Delegation, the strong trade flows are partially triggered by the growth of the Philippines which can be attributed to concrete macro-economic policies - proven by the ratings indices upgrades, growth within the middle class, increased government spending, and economic reforms loosening the financial and other sectors of the country.

The Delegation added that the ongoing economic recovery in the EU also signals an increased demand for products from the Philippines and more investment opportunities. EU was the Philippines’ largest investment partner in 2014 for foreign direct investments. The union contributed €800 million or 26 percent of overall flows into the country, and added to the 450,000 current jobs produced by investors.


Outsourcing is �back in vogue�, study shows

by @ MicroSourcing.com News Feed

Outsourcing Strategy Should be Inline with Business Strategy

According to the Economic Times, Forbes.com reports that "after fizzling out over the past couple years as companies simply slashed jobs rather than move them, outsourcing is back in vogue," referring to a study by Pricewaterhouse Coopers (PWC). The study indicates that outsourcing has been active in countries such as India, China, the Philippines, Costa Rica and even Romania.

"Cost is still the major factor," said PWC shared services practices managing director, Charles Aird. "But people are also looking for greater efficiency, better quality and access to talent."

Forbes remained critical of some processes that have been outsourced in the past stating that “computer customer service that was outsourced to India, for example, was notorious for alienating customers.”

The study by PWC also revealed a growing list of services being outsourced. Forbes warns however, that outsourcing some core services may not be the ideal solution:

 “The key is that you've got to tie your sourcing strategy to your business strategy.”


Indian BPOs to Benefit from US Healthcare Reform

by @ MicroSourcing.com News Feed

Opportunities for BPOs from Healthcare Reforms

As the US House of Representatives passed the healthcare bill that will bring about 32 million Americans under insurance cover once it becomes a law, it is expected that work such as insurance and claim processing tasks will be transferred to Indian BPO service providers. Insurance companies will be looking for outsourcing service providers that will take on back-office tasks including member database management, claims and new member enrollment processing, and support services.

‘‘All existing IT systems including the electronic medical records, patient information systems and other technology platforms are going to stay untouched, barring some minor to medium tweaking, which will mean some additional work for existing providers like IBM, Accenture and EDS (HP). It's possible that minor portions of these might get shifted to India as well, but the sizable opportunity is for BPOs,” said Dr. Saji Salam, healthcare expert in Minneapolis.



BPO Earnings to Surpass OFW Remittances

by @ MicroSourcing.com News Feed

According to a Monetary Board executive, in five years’ time, the revenues from the business process outsourcing (BPO) sector will exceed remittances from overseas Filipino workers (OFWs).

Earnings from the BPO sector to surpass OFW remittances

During the 39th Philippine Business Conference Expo, former Socioeconomic Planning Secretary Felipe Medalla said with the robust state of the local BPO sector worth $16 billion, it will surpass OFW remittances which are currently worth around $24 billion. The BPO sector grows 10 percent a year and is expected to be worth $20 billion next year.

 The rise of BPO has also created a domino effect for employment and demand for properties. However, Medalla said talent shortage is still a challenge that the Philippines has yet to overcome.

Meanwhile, cash remittances from OFWs increased 6.8 percent during the first eight months of this year which amounts to $1.9 billion. Year-on-year, it increased by 5.9 percent.


PH BPO Workforce Expected to Earn P247B this Year

by @ MicroSourcing.com News Feed

According to House Deputy Majority Leader Roman Romulo, employees of the country's business process outsourcing (BPO) sector will earn P247 billion in total this year. He added that normally, BPO companies allocate 40 to 45 percent of revenues to pay off salaries, especially since the sector provides high-value labor services.

Based on the sector's projected revenue of $13 billion this year, $5.85 billion will be allotted for salaries. Furthermore, he said P247 billion worth of revenues will contribute to consumption spending which will help businesses all over the country as it will fuel demand for goods and services.

The BPO sector is also anticipated to contribute $27 billion and provide 1.3 million direct jobs by 2016, whereas it employed 638,000 and contributed $11 billion in revenues last year.

The Business Processing Association of the Philippines (BPAP), on the other hand, is hoping that the sector will create 126,000 jobs and produce an additional $2 billion income this year.  
The services offered by the BPO sector range from voice-based processes to high-value ones like back office functions, medical, legal and data transcription, animation, software development, engineering design, and digital content.


New study confirms outsourcing's strong year in 2010

by @ MicroSourcing.com News Feed

After speaking with 1,055 senior executives involved in outsourcing services, CEO of Horses for Sources, Phil Fersht, published a new report confirming the positive outlook for the global outsourcing industry in 2010. Entitled, �The IT Outsourcing and Business Process Outsourcing Industry Landscape in 2010�, the study offers insights into which subsectors are most promising and the main drivers for outsourcing adoption.

The report reveals that software applications, call center, engineering management, finance and accounting, analytics, and human resources are the key areas to look out for this year. Mid-size companies were singled out as potentially creating the most activity.

According to the report, over 70% of small organizations (less than $750 million), about half of mid-size organizations (between $750 million and $3 billion), and nearly 60% of large organizations (more than $3 billion) said creating more effective operations at a global level was very important business driver behind their outsourcing decisions. Furthermore, 50% of firms surveyed said they are looking to expand their existing IT outsourcing partnerships.



Gartner: Indian IT-BPOs to Gain more Presence Overseas

by @ MicroSourcing.com News Feed

Research and advisory firm Gartner said India-based business process outsourcing (BPO) companies are seeing more outsourcing activity overseas.

According to T J Singh, Research Director at Gartner, global BPO organizations that are based in India like Infosys and Wipro are making a mark overseas and are growing immensely. This is credited to the fact that such companies are able to provide flexible terms and various service offerings to the growing demand fuelled by the European debt crisis and sluggish economies being faced by Western countries. BPO firms can benefit from the situation as companies look for means to cut costs and keep their business going.

The National Association of Software & Services Companies (Nasscom) estimated that the IT-BPO sector in India will post a total of US$100 billion in revenues for 2011-2012. In 2013, it is expected that the sector will post a revenue growth rate of 11-14 percent.


How Do Social Media And SEO Work Together?

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Social Media and SEO are the peanut butter and jelly of the digital marketing world. One can survive without the other, but the effectiveness of the two together provides you with a much more powerful marketing engine. And while social…

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DOLE Delighted Over Disapproval of the US Anti-outsourcing Bill

by @ MicroSourcing.com News Feed

The recent disapproval of the anti-outsourcing bill in the US was indeed good news to the Department of Labor and Employment (DOLE) as it could help the country’s business process outsourcing (BPO) industry.

BPO is PH's Main Job Generator

According to DOLE Secretary Rosalinda Baldoz, the BPO industry is still the main job generator. She added that there are now fewer hurdles for the industry to grow as BPOs can further develop operations in the country and provide more jobs to local candidates.

However, she said DOLE had prepared contingency plans should the “United States Call Center Worker and Protection Act”, which discourages US-based companies from sending jobs abroad to countries like the Philippines, be approved.

Nevertheless, the defeat of the bill in the US Senate by way of vote (56-42) last July 19 is highly taken note of and welcomed.
The DOLE added that US-based companies that will eventually bring jobs back home will be rewarded by the US government. Meanwhile, other business groups in the US do not agree with the bill as it could be detrimental to their business operations and overall standing against competitors. It could also take a toll on the earnings of companies that subcontract offshore as penalties will be strictly imposed.

Baldoz quotes the President of the Business Processing Association of the Philippines (BPAP), Benedict Hernandez, saying outsourcing is an effective tool for businesses in the US to stay competitive and profitable.


UK Takes the Lead in EMEA Region for Outsourcing

by @ MicroSourcing.com News Feed

UK Tops EMEA Region in Outsourcing

According to the 2012 EMEA TPI Index created by US market analysis consultancy firm Information Services Group (ISG), the public sector in the UK is closing larger deals globally, next to the US.

The report indicated a 16-percent growth in the region for government deals with annual contract value (ACV) of nearly £3.4m.

Furthermore, ISG cited the UK of having the largest total market value terms apart from the US. Organizations in Great Britain were seen closing 148 deals last year, which is 47 percent more in 2010.

Meanwhile, ISG noted that the growth of BPO and ITO within the UK shows that its government is starting to take notice of the potential of outsourcing for UK-based businesses.

According to the EMEA TPI Index charts, the increase in outsourcing activity in the UK public sector was due to the large size of outsourcing deals as well as the signs of recovery seen in the financial services sector.


World Bank Says RP's BPO Boom doesn't Reduce Poverty

by @ MicroSourcing.com News Feed

Business process outsourcing, considered as one of the largest elements of the services sector, plays a major role in improving the Philippine economy. However, the country fails to boost economic growth by developing the sectors that directly contribute in poverty reduction.

Chief Economist Eric LeBorgne from World Bank-Philippines said that since the country fails to focus more on improving sectors such as industry or agriculture, Filipino workers tend to apply for jobs in the services sector. �Industry was unable to absorb the rapidly growing labor force, including migrants from the rural areas, leaving the service sector as the safety valve. Services account for 65 percent of the gross domestic product and nearly half of employment, but anecdotal evidence suggests that the bulk of the service sector simply masks severe urban underemployment with very low productivity,� the World Bank said.

LeBorgne added that the BPO sector hires individuals who are educated, skilled, and are not considered poor or near-poor. These workers are able to help reduce poverty in the country only through tax collection that enables the government to conduct social-spending programs.

Despite the success of the outsourcing sector, LeBorgne said improving the education system in the country will greatly help the economy. He added that even applicants in BPO companies still need to hone their technical skills and undergo English training. �The education level of these applicants does not make them readily trained for BPO sectors. The government needs to improve the quality of the education system.�


Make the Connection Between Cheap SEO Services and Content Marketing With These 3 Tips

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PH BPO Growth Driven by Young Talent, Gov't Support

by @ MicroSourcing.com News Feed

Philippine Outsourcing Industry Driven by Young Talent

Having a young workforce and strong support from the government reinforces the position of the Philippines as one of the top countries for business process outsourcing (BPO, or IT-BPO) services, according to Information Technology and Business Process Association of the Philippines (IBPAP) Senior Executive Director Gillian Joyce Virata.

Virata said BPO companies consider the Philippines and India in terms of having an educated workforce at competitive rates. Moreover, she noted that they are constantly coordinating with two to three firms every week, proving that the Philippines is an ideal offshore outsourcing destination.

Tholons, a globalization and investment consultancy firm, ranked Manila as the third destination in its top 100 global destinations list. The organization also mentioned the continuous effort of the Philippine IT-BPO industry in maintaining its position in voice-based outsourcing processes while venturing into other offerings such as healthcare information management (HIM)outsourcing , IT outsourcing, software development, game development, and animation.


PH Govt to Reinforce Economic Growth

by @ MicroSourcing.com News Feed

According to Department of Finance Secretary Cesar V. Purisima, the Aquino administration is striving to improve and sustain the high level of economic growth seen during the first half of this year. He added that the government plans to improve the infrastructure, as well as investments in agriculture, tourism, and business process outsourcing (BPO).   

Purisima also said in a statement they will strive for innovative processes to align goals, reduce the cost of doing business in the country, including the development of new exports.

Moreover, he said amidst the economic uncertainty in the US and Eurozone and with the global growth slowing down, the country's economy grew from January to June.

The Finance Secretary noted that the 5.9 percent growth for Q2 2012 puts the country in a favourable position and helped yield a 6.1 percent growth for the first half of this year, which is far better compared to the 4.7 average GDP growth of the country for the past several years.
Other industries such as construction grew 9.2 percent, which is fuelled by public construction. Overall exports grew 8.3 percent, where goods exports increased 7.9 percent, and services exports increased by 9.9 percent.


Nasscom Predicts Indian IT-BPO to Provide 30 Million Jobs by 2020

by @ MicroSourcing.com News Feed

NASSCOM Publishes Ethical Practices for Outsourcing

Trade body Nasscom forecasted that for the next decade, the IT-BPO industry in India will create 30 million jobs -10 million from direct employment and 20 million from indirect employment.

“There has been a 6-fold increase in direct employment. The number of direct employees in 2001 was around 4.3 lakh and now it has zoomed up to 23 lakh in 2010,” said Nasscom president Som Mittal. He added that best practices in the IT-BPO industry must be adopted, and firms must follow ethical hiring and perform background checks for workers.

At present, 37 percent of employees in the IT-BPO industry are women - 26 percent of which are chief wage earners. By 2020, about five million women employees are expected to be employed in the industry.



Another Positive Credit Rating Expected for PH

by @ MicroSourcing.com News Feed

With its strong macroeconomic fundamentals, the Philippines may be getting another positive credit rating very soon, according to Finance Secretary Cesar Purisima. He is optimistic that the country will get its 24th positive rating in the next few weeks.

Aside from fundamentals, the Philippines has a strong external position and macro-environment. The business process outsourcing (BPO) sector and OFW remittances continue to be key revenue generators. Moreover, the country has less exposure to external volatilities such as the slowdown in China and US Federal Reserve rate increase. Purisima added that the country is least vulnerable to these risks.

Another factor that fuelled the finance chief's optimism for a credit upgrade is the decline of the Philippines' foreign debt to gross domestic product (GDP). Moreover, foreign borrowing went down, as 85 percent of financing was done locally. The economy's current position is better now compared to about five years ago, with its wider fiscal space, appetite to do business here, and investor confidence.

International credit rating agencies Fitch Ratings, Moody's, and Standard & Poor's all granted the Philippines credit ratings in 2013. These were then followed by an upgrade of BBB from S&P's and Baa2 from Moody's.


Growth Potential Seen in PH Animation Outsourcing

by @ MicroSourcing.com News Feed

With the increase in global demand for non-voice outsourcing processes such as animation, publishing, and engineering design, strong growth is anticipated for the Philippine IT-BPO sector.

During a business forum, David Caldwell, Managing Director at Wells Fargo Philippines Solutions Inc., said there's a great chance for the non-voice business process outsourcing (BPO) processes to flourish.

He cited the animation segment wherein he believes that the Philippines is a suitable outsourcing partner because Filipinos are innately talented and creative. Furthermore, Caldwell said large international animation firms regard the ability of English communication skills of Filipino animators as a huge factor, apart from lower labor costs, quality, as well as speed in delivering output.
Moreover, he said the engineering sector could also get ample boost with the annual turnout of graduates.


RP Outsourcing Still Strong Despite Global Crisis

by @ MicroSourcing.com News Feed

Philippine Economy Stands Strong

Industry players who attended the recently concluded State of the BPO Industry Mid-Year Report Conference agreed that the outsourcing industry in the Philippines continues to see growth despite the current global economic downturn. The said conference was held in Makati City and was organized by the Business Processing Association of the Philippines (BPAP).

While the impact of the financial crisis may have slightly affected the growth of the outsourcing industry, the Philippines has secured its place in the world of outsourcing as an ideal BPO destination.

According to Neil Elias, country manager of Logica, an outsourcing firm, the fourth quarter of last year was the best quarter for Philippine outsourcing. There was also an increase in the recruitment rate for skilled Filipino workers - from 4-5% to 9-10%.


PH BPO Sector Unfazed by Obama's Anti-outsourcing Efforts

by @ MicroSourcing.com News Feed

PH BPOs Unfazed by Anti-outsourcing Plans

With at least half of the call centers in the Philippines serving US-based firms, the Business Processing Association of the Philippines (BPAP) appears to be reassured amid President Barack Obama’s mass petitioning for businesses to bring jobs back to the US. The outsourcing body also believes that the Philippines’ flourishing BPOs will see no adverse effects as the anti-outsourcing bill is being processed.

Martin Crisostomo, BPAP’s Spokesperson, stated that business process outsourcing is no longer a mere tool or a solution for businesses to stay afloat, but is now considered as a major factor to stay competitive. Furthermore, he strongly believes that outsourcing is here to stay and is now part of globalization.

In his State of the Union address, Pres. Obama said companies that are providing jobs to US citizens should be rewarded and prioritized, and not those businesses that transfer processes to offshore locations. Benefits such as tax deduction shouldn’t be given to firms that outsource work overseas, but should be given to companies that bring jobs back home.


India's Nasscom Predicts Slow Activity in Software Exports

by @ MicroSourcing.com News Feed

Economic crises affecting IT outsourcing sector to slow down activity in software exports

The National Association of Software and Services Companies (Nasscom), the trade association of the IT-BPO industry in India, will possibly predict slow activity in software exports due to incessant economic problems affecting the information technology (IT) outsourcing sector.

According to a Nasscom official, there’s a possibility that the growth rate prediction for this year will not be surpassed, though a double-digit growth for 2012’s fiscal year would still be attainable.
For this year, Nasscom members such as Infosys, Tata Consultancy Services, and Wipro are believed to be having a hard time in explaining the situation and are still in the process of negotiating, when in fact the organization’s officials are usually ready with a forecast by this time of the year. 

Another Nasscom official added that they are still waiting for the revenue forecasts from companies, saying it does not look clear, and goal revisions may be in order this year.
There may be a slowdown, but the industry can reach the target for 2011-12. It is expected to post a 16-18 percent growth rate or $70 billion. On the other hand, IT research and advisory firm Gartner has reduced its IT spending predictions from 4.6 percent to 3.7 percent.

Meanwhile, Infosys Chief Financial Officer V Blakrishnan assumed that clients are now more cautious when it comes to IT spending. This has led to an indefinite forecast for the sector.


BPO Leaders Tap Bacolod for 'Knowledge Process Outsourcing'

by @ MicroSourcing.com News Feed

Bacolod City is eyed by leaders of the local information technology (IT) sector to follow Cebu City as one of the country's hubs of knowledge process outsourcing (KPO).

According to Joey Bondoc, research manager of Colliers International, a global real estate services company, "KPO companies offer higher value outsourcing services such as medical transcription or health information management (HIM), software engineering, and finance and accounting."

Colliers reported that outside Metro Manila, Cebu remains to be the largest and most practical choice for KPO firms due to its diverse and skilled labor pool.

Jocelle Batapa-Sigue, executive director of Bacolod-Negros Occidental Federation for ICT (BNeFIT), expressed that Bacolod City is primed for these high-value KPO services, especially HIM and software development.

"After having been declared as Center of Excellence for business process outsourcing (BPO) especially in contact center services in 2013, BNeFIT, in collaboration with the city and provincial governments has developed strategies to target three high-value areas: HIM, software development and creative processes like game development and animation," Batapa-Sigue said.

Road to Knowledge Process Outsourcing

She cited five important points in order for the city to become a fully-realized KPO key city.

  1. A solid marketing program. As per Batapa-Sigue, most investment leaders concentrate all marketing efforts on Manila. She believes that it’s about time these leaders consult with local stakeholders and carefully plan marketing strategies that accurately understands and capitalizes the strengths and talents of each city in the countryside.
  2. Reinforced incentives. "We also need to beef up our roster of fiscal and non-fiscal incentives for information and communications technology (ICT) companies." Incentives to ICT companies within the Philippine Export Zone Authority (PEZA) that are at or above par with other countries will help jobs and investments to grow steadily. 
  3. Industry-specific certifications and training. Batapa-Sigue suggests that the national and local government should offer incentives that would encourage companies to improve and strengthen their industry-calibrated certification and training programs.
  4. Early development of creative and critical thinking skills. Batapa-Sigue also suggests that BNeFIT and the industry should collaborate with K-12 educators to hone the students’ creative and critical thinking skills at an early age.
  5. e-Readiness. One of the top priorities in promoting the progress of KPO in the countryside is to scale up e-Readiness. Bacolod City should make efforts in improving its efficiency in service delivery through the integration of ICT and data analytics, among many other new technologies.

What To Do When You Have Been Referred The Wrong Business Number On Google Maps

by Alexander Felsch @ NYC SEO Authority

Google Is Now Requesting Local Searchers Report Any Wrong Numbers They Find In New York City Google Searchers have now been given the ability to report wrong numbers when they come across business listings with local search or on Google Maps. Google has done this because many have reported to them that it's frustrating when [...]

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PH Call Centers Remain Confident despite Stronger Peso

by @ MicroSourcing.com News Feed

Call centers in the Philippines are not alarmed with the impressive performance of the peso against the dollar for the past consecutive weeks, with the peso opening at P41.61 to the US dollar last Wednesday. In a press briefing, the Contact Center Association of the Philippines (CCAP) said they are not "overly concerned" with the rise and fall in foreign exchange rates.

During the media launch of the International Contact Center Conference & Expo (ICCCE) 2012 in Makati City, CCAP President Benedict Hernandez said they are always on the lookout for the ups and downs of the exchange rate, but are not fixating on the issue. The Philippines is still perceived as a feasible destination for call center operations.

Filipino call center employees make PH leading destination for voice-based processes

Hernandez added that the work ethic and skills of Filipino call center employees are key factors that make the country a leading destination for voice-based processes.

On the other hand, CCAP Executive Director Jojo Uligan said should the peso appreciate beyond P41, it would be detrimental to call centers. Moreover, he said it will affect the operations of call centers as expenses are in pesos but clients pay them in dollars. If the peso further strengthens against the dollar, they would have to increase pricing of services. This will then result to more challenges as existing clients will surely be displeased and charging new ones at a higher rate will result to fewer leads.

Issues that will affect the business process outsourcing (BPO) industry, including the appreciation of the peso, will be discussed at the ICCCE 2012 on September 18 and 19 at the SMX Convention Center in Pasay City.


Link Building: Overview Of Different Link Building Strategies

by admin @ SEO Brothers

If you’re investing in search engine optimization then chances are you’re either doing or have at least heard of the importance of link building and how it can impact your results. At its core, link building is fairly simple – one website links to another. Links are the foundation, and essentially the strings, of the…

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Everest: Number of Outsourcing Contracts Decreases in Q3 2011

by @ MicroSourcing.com News Feed

The outsourcing market appears to be weakening as the number of signed contracts during this year's July-September period dwindled to 472, compared to 503 deals posted by last year's Q3 and 516 contracts of 2011's Q2, according to advisory and research firm Everest.
Amneet Singh, Vice President (Global Sourcing) at Everest, said the decline in global transaction volumes indicates a slowdown in outsourcing activity. However, even if there were fewer contracts this year, the global transaction volumes amounted to USD 2.7 billion in annual contract value (ACV) for this year's third quarter mainly because of large contracts.
Meanwhile, the number of valid transactions in IT outsourcing and BPO markets decreased by seven percent and 12 percent, accordingly. Nevertheless, IT outsourcing's ACV was up 14 percent during Q3 2011, whereas BPO decreased by 50 percent.
Everest stated in its Market Vista report that some of the sectors which contributed significantly are the Banking Financial Services and Insurance (BFSI) sector and manufacturing, distribution, and retail (MDR) segment. Contracts from the public sector decreased by 31 percent in volume and 48 percent in ACV.

On the other hand, the number of captives increased in Q3 with 20 new centers, compared to only four captive centers and nine expansions during the same period of last year.


PH Govt to Restrict Incentives for BPOs

by @ MicroSourcing.com News Feed

The 2014 Investment Priorities Plan could mean the end of an era for government-backed incentives as the Board of Investments (BoI) has stated that most outsourcing companies have already attained ideal growth. The government body is expected to reduce the set of incentives enjoyed by the business process management (BPM) industry of the Philippines.
BoI Director for Industrial Policy Service Corazon Halili-Dichosa said incentives will be fewer and will be given to sub-sectors that are still underdeveloped, especially the segments that are missing in the supply chain.

Some of the benefits given to tenured BPO projects under the BoI are tax holidays for a span of six years, exemption from import duties and taxes, zero-rate VAT on sales, more deductions on top of taxable income equivalent to 50 percent of the wages of additional workers in the direct labor force, and local businesses will be tax-free up to six years.
However, the BoI has created a new set of incentives for the BPO sector under the 2014 IPP, but it is still waiting for the approval of President Benigno Aquino. Dichosa further noted that although incentives are given only to segments with export services, the information technology-business process management sector should consider new opportunities, and if they cater to the local market, they will not receive incentives. She explained that BPO segments which provide services to the local market are barred from getting tax perks.

The 2013 IPP indicates that locally-owned call center companies are still allowed to receive incentives but 50 percent of their sales should come from clients abroad. On the other hand, call centers owned by foreign clients are eligible to get incentives as long as 70 percent of their sales are from exports.
Meanwhile, the IT-Business Process Association of the Philippines asked the BoI to retain the incentives given to the IT-BPM industry to help their efforts in developing value-added segments.

As for the 2014 IPP, the Trade Department said they would be more selective when it comes to the segments that will be entitled to get incentives.


Eastwood City Cyberpark Launches New BPO Building

by @ MicroSourcing.com News Feed

Eastwood City Cyberpark has recently launched a new building, Global One Center, to help the business process outsourcing (BPO) industry in the country reach its $11 billion revenue target for 2011.

The cyberpark, located in bustling Quezon City, is home to several BPO service providers.

The new Global One Center is a 21-storey building that has a total floor area of 32,000 square meters, says Jericho Go, vice president for business development of Megaworld Corporation, the company that owns and develops Eastwood City Cyberpark. �More than inaugurating new buildings, we are delighted that Megaworld, together with our BPO partners and locators, is able to help thousands of Filipinos to not just get jobs, but gain long-term careers in the BPO sector,� Go explains.

According to 2009 data from the Philippine Economic zone Authority, outsourcing and offshoring locators based in Eastwood City Cyberpark have brought in $348.31 million - a 7.8% hike from 2008. With Global One Center being the Cyberpark's 10th BPO building, it is estimated that people working at Eastwood City will number to about 35,000.


Cebu City Ranked as Top Asian Outsourcing City

by @ MicroSourcing.com News Feed

For the second time, global outsourcing advisory firm Tholons ranked Cebu City as the no. 1 outsourcing city in Asia. This is based on the quality of workforce and infrastructure, as well as business growth, risk profile, cost of living, and quality of life. Pasig City, Quezon City, and Mandaluyong City were also included in the list of top 18 Asian outsourcing cities.

Shanghai and Beijing in China ranked second and third respectively, followed by Ho Chi Minh, Vietnam and Krakow, Poland.

Cebu produces many graduates from its 10 universities and colleges. However, the low hiring rate of applicants and turnover after being employed for one or two years hinder the province from meeting the BPO demand. This leads BPO recruiters to look for qualified talents in nearby provinces.

When it comes to global rankings, Metro Manila got the fourth spot. The top three global outsourcing sites are Bangalore, Delhi, and Mumbai.


New Mix-use Properties in PH Seen to Boost BPO

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Mix-use Properties for the Retail Segment and Outsourcing Companies

According to property services firm JLL, they are currently developing over 20 mix-use projects which can accommodate more retail proprietors and BPOs that are looking to expand.
The business process outsourcing (BPO) sector still has the largest market share for office properties so far this year - 67 percent of transactions came from the sector.
In a statement, JLL’s Associate Director Lylah Fronda-Ledonio said the percentage is seen to grow by 80 percent at the end of 2014 since the BPO sector is the key driver for office demand in the country.
Meanwhile, Claro Cordero, head of research at JLL, said the new mix-use zones will be able to accommodate different types of segments including retail, restaurants, and residential properties. This will be able to match the preference of new and expanding BPO firms.
He also said the expansion of existing BPO firms and the entry of new players in the Philippines will contribute to the growth. In addition to that, the townships will enable BPOs to have access to skilled and affordable workforce.
In Metro Manila, the township developments are Uptown Bonifacio, Woodside City, Vertis North, McKinley West, ARCA South, La Fuerza, and South Park District.

Four Influential Factors in the Business & IT Services Market

by @ MicroSourcing.com News Feed

A market research report by IDC called ‘The Four Pillars: How Services Firms and Providers Must Evolve to Ensure Sustainability Delivering Next-Generation Services’ was recently published by Reportbuyer.com.

Four pillars determining the progression of the business and IT services market

According to the report, the four pillars that are now determining the progression of the business and IT services market are social, mobile, analytics, and cloud technology.

The report highlights IDC’s take on how the four factors are affecting the services markets - even the seven key geographic markets (United States, Canada, Latin America, Western Europe, CEMA, Japan, and APEJ), and what service providers need to do to keep up with the changes in demand and trends in the market.

According to the VP of Outsourcing, Managed, and Offshore Services at IDC, David Trapper, social, mobile, analytics, and cloud technology are widely influencing the way buyers and businesses procure IT services as these now emphasize on standardized, host-based offerings that are easy to modify according to the market’s preference, location, and scale.

He added that service providers using traditional methods are predisposed to modify their business models by focusing on the processes and not the IT deliverables, enter new markets, reinforce local strategies, and become significant business partners to their clients.


Clark Freeport opens more than 3,000 jobs

by @ MicroSourcing.com News Feed

Fourteen major locators are offering 3,255 jobs at the Clark Freeport in Pampanga; the Clark Development Corporation (CDC) announced.  According to the Manila Bulletin, the outsourcing companies intend to fill up the vacancies before Christmas Eve.

The announcement was made following increasing outsourcing activity at Clark; with CDC President and CEO Benigno N. Ricafort stating that operations are expected to continue to grow. CDC calculates that the total investments for outsourcing in the Clark Freeport area has amounted to P68.63 billion; with a reported 3,000 additional jobs to open next year.

�To address the effects of the world financial crisis, the CDC is working hand-in-hand with its locators and investors through the continuous holding of dialogue. Because of these regular consultations with Clark stakeholders we continue to improve our services,� stated Ricafort.

The low tax rate and freeport status of Clark were cited by Ricafort as major advantages Clark has over other outsourcing locations in the Philippines.



SEO a Brief Overview of the Basics

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Audience, Elevator pitch and Marketing message Before you begin any SEO / Internet marketing campaign you must select your keywords / […]

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PH Strong Candidate for Healthcare BPO Segment

by @ MicroSourcing.com News Feed

According to Juanloz Botor, President of the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), the sizeable workforce of the Philippines in the healthcare segment can help make it the next leader in the global healthcare outsourcing industry.

Moreover, he said the health information management (HIM) segment provides several employment opportunities for the oversupply of nearly 200,000 nurses in the country. They can carry out tasks such as medical transcription, data management, medical coding and billing, and pharmaceutical benefits management.

Meanwhile, Everest Group has reported that the Philippines produces 6,000 nurses a year, and has the largest pool of US-licensed nurses outside the US. Moreover, the nursing curriculum in the country is very similar to that of the US.

The report also stated that healthcare outsourcing contributed $102 million in 2010 to $430 million by end-2012, making it one of the fastest growing segments in BPO.


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Eastwood City Cyberpark Named Top RP BPO Location

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Eastwood Top BPO Hub in the Philippines

Among all registered IT parks and buildings in the Philippines, Eastwood City Cyberpark in Libis, Quezon City posted the highest employment figure of 16,856 in 2009. This is a 22-percent increase compared to 2008 figures, making it the top BPO location in the country.

Aside from the rise in number of employees, Eastwood City Cyberpark also posted improvements in exports of Offshoring & Outsourcing (O&O) locators reaching US$348.31 million, as well as in salaries from PEZA-registered companies at P6.72 billion. According to developer Megaworld Corporation, non-BPO establishments in Eastwood have provided jobs to more than 30,000.

“We are pleased that despite the global economic challenges of 2009, Eastwood City Cyberpark still managed to post increases in the number of employees, exports and salaries. As the economy improves further this year, we expect 2010 to be another banner year for Eastwood City Cyberpark,” Megaworld FVP for business development Jericho Go said.




Slower Growth Seen in Indian IT Industry

by @ MicroSourcing.com News Feed

Technology and market intelligence firm Forrester Research warned that India's IT industry will see a slower growth rate in the next few years due to ��disenchantment� with mega deals, as well as lack of strong bounce back effect.

�There is a sense of disenchantment with large-scale IT outsourcing. Companies have realized that whole-scale IT outsourcing leaves you much more exposed. They are likely to go for more granular deals in the future,� said Andrew Bartels, principal analyst at Forrester Research. The industry will see slower growth and there may be no mega outsourcing deals over the next few years. 

US IT outsourcing will grow by about six percent. The growth rate of IT consulting and deployment services will reach 6.8 percent, while software will register 11.5 percent growth rate over the next two years.


Accenture to open BPO center in Kenya

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BPO in Kenya

Accenture has piloted a project in Kenya that will likely lead to the establishment of an outsourcing center there in the near future, The Industry Standard reported. The new pilot project is part of the NetHope summet, which supports humanitarian agencies with outsourcing and shared solutions.
 Accenture has worked with the Kenyan government for two years to investigate means of improving market and technical conditions in its growing IT export sector – set for a significant boost with the opening of an outsourcing park along Nairobi's Mombosa Road.

 "It means a lot to Kenya for Accenture to set up its base here; it is a leading outsourcing company and is likely to pull other outsourcing companies," stated CEO of Kenya ICT Board, Paul Kukubo.


RP to Benefit from Changes in Global Workforce

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The diminishing global workforce will be a good thing for the Philippines, but according to Towers Watson regional managing director Bob Charles, strategies such as giving incentives, deferment of early retirement, and establishing a strong leader-team member relationship must be implemented by top managers to retain employees.

Young talent in the country must remain engaged in their work for retention and to prevent them from moving abroad to work. "The primary drivers of engagement for �Generation Y' is career advancement, genuine concern that the company is making a difference, and opportunity to give input," Charles added.

He added that outsourcing work to Asian countries with young talent will be an �increasing trend�. The Philippines, having more births than other countries, can take advantage of the changing face of demographics, with the decreasing birth rates seen in different parts of the world.


Egypt Bags Offshoring Destination of the Year Award

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Egypt was recognized as the Offshoring Destination of the Year at the 2010 European Outsourcing Association (EOA) Awards held in Brussels. The award was received by Dr. Hazem Abdelazim, CEO of Egypt's Information Technology Industry Development Agency (ITIDA). 

According to Dr. Tarek Kamel, Minister of Communications and Information Technology, Egypt has made its mark in the outsourcing industry. "This award recognizes the outstanding progress Egypt has made in the last year as a global outsourcing destination. The country's credibility is going from strength to strength amongst European companies and has put its mark on the map of favored global services locations.�

With Egypt's multilingual capabilities and infrastructure, EOA Chairman Martyn Hart said the country has secured its place as a strong outsourcing player.


BPO Remains Revenue Generator for Cebu

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The business process outsourcing (BPO) sector, which posted a yearly growth rate of 20 percent, is expected to provide jobs and opportunities in the province of Cebu which could echo into the coming years.  

Francis Monera , President of Cebu Property Ventures Development Corp. (CPVDC), the developer of Cebu IT Park,  said the growth of BPO resulted to an increase in the demand for office spaces. That is why property developers in Cebu are investing in office leasing. 

Monera added that factors such as a large educated workforce from nine large universities and the healthy fiscal environment continue to attract companies and investors to establish operations in the province. In fact, it was reported that Aegis People Support recently launched its own Aegis Tower Cebu at the Cebu IT Park. 

According to Monera, Cebu Park District is set to house 20 percent more of its current 50,000-strong workforce once the buildings are completed. Some of the firms that are said to be expanding are Stream Global, Convergys, HP, Fluor Daniels, Dell, and JP Morgan & Chase. 

Monera also said Cebu is being primed as the second most viable BPO destination in the Philippines, with Manila being the first, and that more jobs will be provided once the hubs start operations. 

As for service offerings, Jerry Rapes, Chairman of information and communications technology (ICT) at Cebu Chamber of Commerce and Industry (CCCI), stated that with additional training and proper allocation of skills to job openings, Cebu's candidates will be competent enough to handle knowledge process outsourcing (KPO)-related processes. 

This was also supported by Monera, who's also the Chairman of the Board for Cebu Educational Development Foundation for Information Technology (Cedf-it). He identified the private sector, academe, and local government as a team, striving to improve the skills of potential candidates.


Global CRM Outsourcing Market to Post 5.75% Growth

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Customer Relationship Management Outsourcing

According to the Global CRM Outsourcing Market 2015-2019 report by Research and Markets, the global customer relationship management (CRM) outsourcing market will grow by 5.75% over the period of 2014-2019.

CRM plays a significant role in brand awareness, establishing loyalty, and strengthening brand presence, and it continues to evolve to keep up with the ever increasing needs and expectations of customers. In turn, CRM service providers are pushed to innovate and offer more than just call center work. Services expand to include modern communication, customer engagement using multiple channels, self-service, as well as analytics solutions.

A market trend observed is that clients are adopting social CRM, mainly since it enables easy access to applications and it offers certain benefits such as cost reduction, reliability, scalability, as well as agility.

The report also stated that cost-effectiveness is one of the key growth drivers of the CRM outsourcing market. By outsourcing, companies can reduce costs especially on business functions that require infrastructure, capital investments, as well as HR training.

Big players in the CRM outsourcing market include Accenture, Capgemini, Genpact, IMB, and Tata Consultancy Services.



Call Center Sector still Leads PH BPO

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Call center sector leads BPO industry

The call center sector continues to have the upper hand in the Philippines’ business process outsourcing (BPO) industry, and is predicted to contribute US$14.7 billion in revenues and 800,000 jobs by 2016.

Benedict Hernandez, President to both Contact Center Association of the Philippines (CCAP) and Business Processing Association of the Philippines (BPAP), said the voice sector will provide more job opportunities in the future.

A 21-percent growth was seen for the sector last year. The voice sector employs 493,000, accounting for 64 percent of the sector’s direct employees, and $9 billion in revenues, which is 67% of the industry’s total returns.
According to Hernandez, some of the challenges that the sector will face in the coming years are talent shortage, high attrition rate, and maintaining the marketability of the country as an outsourcing hub.

Meanwhile, Senator Edgardo Angara reiterated during the recent International Contact Center Conference and Expo that the country has enough talent but their skills do not match the requirements. One of the solutions, he said, is the K-12 education program. He added that the government is thinking of providing P1 billion worth of investments on education and talent development to improve the skills and potential of candidates.


Work Sent to India Predicted to End in 8-10 Years

by @ MicroSourcing.com News Feed

According to a report presented by strategic consultancy firm The Hackett Group during the Nasscom Global In-House Centers (GIC) Conclave, offshoring of jobs from the US and European countries will begin to decline in 2014 and eventually come to an end in 8-10 years.

The offshoring research team at The Hackett Group surveyed 4,700 US and Europe-based companies in the $1 billion revenue bracket. The report showed that 2.3 million positions in finance, IT, procurement, and HR will be filled by offshore providers in 2016.

Martin Geerling, Director at The Hackett Group said India, the most popular offshoring destination, should find or develop a bigger market to continue growing because the boom in demand for outsourcing brought about by the 2009 economic meltdown is diminishing. In line with that, Hackett anticipated that the 40% share of India in the business process outsourcing (BPO) industry will drop to 38% in 2013.

Meanwhile, Nasscom said offshore captive centers of retailers, large banks, and insurance companies account for $14 billion of India's $100-billion IT-BPO sector. The Hackett Group also noted that of the 8.2 million exported jobs from North America and Europe since 2002, only 4.5 million will be retained in 2016. On the other hand, Partner and Head of ITBPO of KPMG Pradeep Udhas did not agree with the report from Hackett, saying that there's still ample room for India to grow.


UK SMEs Prefer IT Freelancers to Full-time Staff

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Businesses more likely to hire IT freelancers

In a research conducted by online firm PeoplePerHour.com, it was found out that small businesses are more likely to avail services of IT freelancers than hire full-time employees.

Out of 360 SME owners who took part in the research, 61 percent said they plan to invest more in IT and web technology. Thirty-eight percent said they intend to increase investment in utilizing IT freelancers. Only 18 percents intend to recruit full-time staff. Also, 43 percent believe that IT is something for freelancers and “not as supplements to in-house IT professionals”.

“The last decade has seen a boom in remote freelance working, facilitated by the internet. This has been led by the IT industry, which lends itself to freelancing,” said Xenios Thrasyvoulou, chief executive of PeoplePerHour.com.


Gartner Says UK Firms will Increase IT Spending this Year

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Out of 206 UK organizations that took part in the survey conducted by Gartner Inc. in the first quarter of 2010, 53 percent said they will outsource more IT processes this year, while 40 percent plan to increase IT spending.

While there is an increase in the number of European firms that spend 50-75 percent of IT budget to service providers, Claudio Da Rold, vice president and analyst at Gartner said there is still pressure on capital and IT operating expenses. �Although 40 percent of respondents said that they will increase the external share of their budget, only 24 percent said that they will increase the budget for providers, and almost a quarter of organizations still expect that their IT services budget will continue to decrease in 2010.�

The survey also shows that there is an increase in the number of organizations that are becoming interested in outsourcing. In 2009, 6.1 percent of organizations with IT budgets of less than �1 million have expressed interest in outsourcing. This year, the survey reveals that the percentage of firms rose to 14.7 percent.


PH BPO Revenues Poised to Reach $48 Billion by 2020

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According to Vikrant Khanna, principal at strategic advisory firm Tholons, with the Philippines' compounded average growth rate (CAGR) of 9-12 percent seen during 2004 up to 2014, the local business process outsourcing (BPO) sector could expand and be worth $48 billion by 2020.

Khanna presented during the recent International Summit hosted by the Information Technology and Business Process Association of the Philippines (IBPAP) and pointed out that for the global BPO industry, CAGR was only 5-7 percent during the same period. The global outsourcing industry is projected to be valued around $250 billion by 2020. If the CAGR sustains its momentum, the Philippines could capture $48 billion or 20 percent of the total global projections.

IBPAP and the Department of Science and Technology teamed up in creating the information technology and business process management (IT-BPM) roadmap where it is predicted that the BPO sector of the Philippines will employ 1.3 million and be valued $25 billion by 2016. These revenues are only 12 percent of the global outsourcing industry.

Meanwhile, Science Secretary Mario G. Montejo said the goals for 2016 can be easily attained and doubled by 2020. IBPAP also remains positive and confident on the country's ability to reach the 2016 goals.


P500M Allotted to Boost BPO, High-growth Areas

by @ MicroSourcing.com News Feed

Part of the Philippine government's P500-million educational program is set to benefit the business process outsourcing (BPO) sector and other priority high-growth areas of the country as the entire budget is provided to help improve the curriculum of several educational institutions.  

The budget will be divided as follows: P125 million for BPO-related programs, P115 million for agriculture and fisheries, and P105 million each for tourism and other emerging sectors.

The Department of Budget and Management (DBM) said they have released a signed circular together with the Commission on Higher Education (CHED) that will serve as a guide for the program's implementation. Budget Secretary Florencio Abad stated that the program is designed to improve the country's employment rate and economy by preparing graduates with the right set of skills for in demand and promising industries which include tourism, agriculture, and fisheries.

The P500-million fund will also be utilized by qualified state universities and colleges (SUCs) for capital outlay (CO) requirements and maintenance and other operating expenses (MOOE). The funds will come from the 2012 General Appropriations Act (GAA) and is also set to develop the current curriculum and infrastructure.


Iloilo Lacks Enough Space to Meet BPO Demand

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Not Enough BPO Office Space in Iloilo

With the expected rise in the number of BPO locators in Iloilo City next year, Jessraf S. Palmares, Acting Chairman of the Iloilo Federation for Information Technology (IFIT), said the Philippine’s third New Wave City lacks enough space for outsourcing.

“We have no more developed sites for BPOs,” said Palmares in the recently concluded Commission on Information and Communications Technology (CICT) Convergence 2009. “The four buildings which BPOs currently use are malls whose top floors had been converted into cyberparks.” He said they are encouraging the private sector to convert empty lots into cyberparks.

Palmares added that Iloilo produces 20,000 graduates annually, and they want to “bring the work where the talent is.” However, only 5,000 of the total number of graduates have taken IT and IT-related courses and the city needs more to meet the BPO demand. He said it is necessary to conduct training programs and train graduates to be more competent in web management and development.



Malaysian Firms Turn to RPO amidst Talent Shortage

by @ MicroSourcing.com News Feed

According to a report created by one of the world’s largest recruitment & HR service providers, Randstand, 66 percent of businesses in Malaysia turn to outsourcing to supply talent for complex processes in niche industries.

Recruitment process outsourcing considered as a business tool

China is the top region with 72 percent, India takes second place with 70 percent, and Malaysia is at the third spot for countries that are considering recruitment process outsourcing (RPO) as a business tool.

Jasmin Kaur, Director at Randstand, said RPO enables companies to come up with a feasible solution to talent shortage challenges particularly for specialized skills by means of organizations focusing on building talent networks. RPO also promotes business continuity and streamlines processes.

Meanwhile, business owners took notice to the fact that they need a stable strategy regarding HR systems, workforce planning models, and recruitment selection processes to reinforce their respective teams and minimize attrition rates.

Kaur believes that proper motivation is necessary to retain skilled talent. The executive also said employers in Malaysia should analyze and collect more information about the local talent to identify the issues as to why Malaysian workers are leaving to work abroad.


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Employee Retention still a Challenge in PH BPO

by @ MicroSourcing.com News Feed

According to a research report initiated by the Department of Science and Technology-National Research Council of the Philippines (DOST-NRCP) last year, those who are employed in the business process outsourcing (BPO) industry of the country are generally happy with their lucrative jobs. However, they stated that their stint in the industry is not long-term because of health and social challenges.

Almost 700 BPO workers joined the "Health and Social Policy Issues of BPO Workers in the Philippines: Is Happiness at Work Attainable" survey conducted by researchers Nimfa Ogena and Soccoro Rodriguez. Fifty-one percent of the respondents were from Metro Manila, 21 percent from Cebu, 15 percent from Davao, and 13 percent from North Luzon.

Respondents from the BPO industry happy but planning to leave

Ogena pointed out that even if majority of the respondents are happy with their jobs in the BPO industry, a lot of them are planning to leave in the next 12 months. Most of the respondents are in the voice segment, while others are in the non-voice segment which includes software development, back office, medical transcription, and engineering.
Some of the survey questions covered issues such as health and well-being, happiness, and problems that need to be addressed by the local government.

When asked why they want to join the BPO industry, 77 percent said they want the high salary, 65 percent said they want to gain experience, and 64 percent said it’s because of the benefits package. 

As for the health aspect, the study revealed that 50 percent were of "average health" and 25 percent were "healthier than average".

The researchers sought the assistance of BPO supervisors in the selected test sites so they could validate the online responses of employees properly.


BSP Survey Reports Strong Outsourcing Sales Growth

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PH Outsourcing Industry Sustains Growth

In the midst of a global economic slowdown, the Philippine outsourcing industry was able to maintain its steady pace of growth, the country’s central bank reported yesterday.

The Bangko Sentral ng Pilipinas (Central Bank of the Philippines) presented the results of the 2009 Survey of Information Technology-Business Process Outsourcing (IT-BPO) Services, which surveyed 736 companies involved with the outsourcing industry’s subsectors of contact centers, transcription, animation, software development, and “other BPOs.”

Total revenues in 2009 rose to USD 8.3 billion, up by 30.6% from USD 6.3 billion earned in 2008. All IT-BPO subsectors earned double-digit growth in revenues, according to the BSP. Voice-based services made up half of industry earnings, growing with an annual rate of 48.2% to post USD 4.207 billion in revenues. Software development sales increased by 18.4% to earn USD 1.672 billion, while transcription sales posted the highest growth at 66.8% to earn USD 57 million.

According to the BSP report, the US stays on top of the local outsourcing industry’s clients, followed by Japan, Europe, Australia and New Zealand. The total workforce employed by the industry grew by 25.3% for a total of 444,811 workers in 2009, the BSP report showed.


BPOs now outsourcing facilities management

by @ MicroSourcing.com News Feed

A study by Jones Lang Lasalle on eight leading global organizations in the business process outsourcing (BPO) industry has revealed BPO companies are, themselves, outsourcing. In the Philippines, this is practiced in areas such as housekeeping, security maintenance, and car fleet management.

According to head of Integrated Facilities Management in Southeast Asia, Marina Krishnan, companies are outsourcing due to the high �cost of a seat� in these areas. In addition to saving on costs for maintaining administration, outsourcing companies are able to avail of expertise and innovations that are not their core competency:

�Our clients in the Philippines � like a global pioneer in outsourced solutions and technology services and a leading financial services company � have outsourced management of services like reception and mail room services, as well as critical facilities like data services, networking and telephone systems that support around-the-clock operations,� commented Krishnan.

Krishnan  further added that �the aim of facilities management is to maximize opportunities for a facilities portfolio. This includes engaging in proactive analysis, contingency planning and preventative maintenance programs to reduce facility downtime and mitigate risks.�


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Australian Companies: Why They Choose Offshoring to the Philippines

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In recent years, offshoring business processes has become a popular way to cut back on expenses and get menial tasks done more efficiently. While there are a few different options in regards to the country you may choose to outsource to, more Australian companies are outsourcing/offshoring to the Philippines every year. Why do these Australians […]

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Global Healthcare BPO Market Revenues to Reach $330B in 2016

by @ MicroSourcing.com News Feed

MarketsandMarkets, a US-based global market research and consultancy firm, released a study stating that the global healthcare business process outsourcing (BPO) market will post revenues reaching $330 billion by 2016. Entitled "Healthcare BPO Market - Payer (Claims processing), Provider (Medical Billing & Coding) and Pharmaceutical (Clinical trial & Contract manufacturing) Outsourcing - Global Analysis & Forecasts (2011-2016)", the report highlights the key influencers of the global healthcare outsourcing market and provides details on risks and opportunities in various regions.

A compound annual growth rate (CAGR) of 21.4% was posted by the healthcare outsourcing market, with pharmaceutical outsourcing taking 64.3% and is predicted to establish a CAGR of 14.6% from 2011 to 2016.

Under the healthcare payer outsourcing market, claims processing represents the largest share with 59% and is identified as the most expensive function in the industry.  

The report also states that outsourcing is still considered as the best solution to reduce cost and maintain the quality of service for the payer industry. Insurance companies, for instance, see outsourcing as a solution considering certain factors such as decreasing margins, higher rate of claims, as well as tighter competition in the market.

There are more opportunities for the payer industry, as 1,300 health insurance companies have emerged since 2009. However, only 10% of work from the large market is being outsourced at present.


Surge of Shorter Outsourcing Deals Predicted this Year

by @ MicroSourcing.com News Feed

According to Mark Lewis, an outsourcing executive at Berwin Leighton Paisner, a law firm, organizations will be busy working on data. He also predicted that financial institutions will outsource IT more using public cloud, but the deals will definitely be smaller or in shorter terms.

Furthermore, he said IT outsourcing deals will be overhauled, which in turn, will make it harder for some providers to outshine the competition. The ones who are innovative and can offer smart solutions will be successful.

Meanwhile, Lewis mentioned that hostile nations and state-sponsored terrorists will launch cyber-attacks on the UK government, and one or two will be successful in doing so, causing major damage even if online security is improved.

It was also predicted that the number of cloud-based outsourcing deals will increase rapidly over the following months.


MicroSourcing Opens New Office in Cebu City

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MicroSourcing Cebu

Outsourcing and offshoring solutions provider MicroSourcing had set another milestone as it officially opened a new office in Cebu City yesterday. This is the company’s first delivery center outside the Metro Manila area.
MicroSourcing’s new office has a capacity of 210 seats and is located at 12th Floor TGU Tower, Asiatown IT Park, Lahug, Cebu City. 
Asiatown IT Park covers 24 hectares of industrial land at the northern district of Cebu City. It has an underground telecommunications setup with high-speed Asynchronous Transfer Mode (ATM) backbone, 23 kv underground power supply, two back-up water deep wells aside from the local water supply, and centralized sewage treatment. Moreover, the IT park offers not only business space but also areas for recreation and entertainment.
The IT park is a Special Economic Zone which offers government incentives for developers, IT park facilities/utilities providers, and IT enterprises registered under the Philippine Economic Zone Authority (PEZA).
Weeks prior to the official opening, the Manpower Acquisition Department launched a Recruitment Caravan in select establishments throughout the city to find suitable candidates for various positions, primarily Computer-Aided Drawing Technicians who are needed by one of MicroSourcing’s largest clients. The company is also looking for individuals who can fill positions in the fields of IT, Human Resources, and Finance.

China Dethrones India as Top Outsourcing Destination

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A survey from accounting firm KPMG revealed that for Asia-Pacific firms, China had surpassed India as the top location of choice for offshoring and outsourcing.

Out of 280 senior business leaders in Asia, 42 percent said they have established shared services centers in China, while 41 percent said they have an outsourcing partner in the country.

"Though at the moment the country has still not reached the level of maturity seen in India, the growth of China's outsourcing market is significant. Many Western companies may still see India as their location of choice, but for executives within Asia Pacific the message is clear - China is now leading the way," said Edge Zarrella, global head, IT Advisory, KPMG China.

Singapore was the second most popular outsourcing destination (29 percent), followed by India (25 percent).


World Bank Predicts 5% Growth for the Philippine Economy

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According to the Philippines Quarterly Update (PQU) released by World Bank, "growth could potentially be higher as the strong focus and early gains of President Aquino's administration in tackling corruption and improving the investment climate could boost domestic investment."

The much anticipated increase in exports to Japan and the rise of jobs in the outsourcing sector will also strengthen the economic growth of the Philippines.

World Bank Senior Economist Eric Le Borgne stated, "Prospects on the supply side remain favorable with manufacturing and construction projected to benefit from the end of the trade disruption linked to Japan's post-disaster reconstruction, as well as the solid growth forecast for the business process outsourcing."

However, the Philippines needs to persevere in creating a comprehensive improvement aimed at reducing 30 percent of the poverty rate. The World Bank added that the Philippine government should also take action in creating sources of income for the poor, and fund education, health and social protection services.

Another factor pointed out by the World Bank is to improve tourism in the country that can provide work for the less fortunate and more opportunities for small enterprises.

On the other hand, Benjamin Diokno, Economics professor at the University of the Philippines, said, the targeted growth forecast should be scaled back at around five to six percent, and predicts that it will dwindle to 4.9 percent due to the disaster in Japan and conflicts between the Middle East and North Africa.  


Philippines Beats India in Voice-based Operations

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Westerners who are transacting with their local airlines, telecoms, and financial institutions are probably speaking with a call centre agent from the Philippines. This is due to the fact that the Philippines has overtaken India in the call centre sector.
Contact Centre Association of the Philippines Executive Director Jojo Uligan said India, the pioneer in offshore call centre operations, provided 350,000 agents, but was overturned by the Philippines even if it was less populated.

The Philippines became a favourite among BPO providers due to the fast evolution of the outsourcing industry and English speaking skills of workers in the country which customers prefer and understand more. Filipinos are also accustomed to mainstream Western culture, whereas Indians are more inclined to the British culture. Industry experts also noted that Filipino agents were able to assist complainants who said they were having a hard time understanding Indian agents.
Other advantages of putting up shop in the Philippines are better utility infrastructure, less power interruptions, and safer environments for employees.

The outsourcing industry in the Philippines contributed $9 billion or 4.5 percent to the country's gross domestic product, a major improvement from figures reported in 2000. The industry also gets strong government support through training programs and tax breaks.

Industry leaders expect that the Philippine outsourcing industry will show continuous growth and expand service offerings, tapping business processes such as accounting and insurance claims processing.

Source: http://timesofindia.indiatimes.com/


ILO Chief Tells RP Grads to Fill In Manpower Gaps in BPO

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Fresh Grads should try their luck in BPOs

International Labor Organization (ILO) chief Lawrence Jeff Johnson said that instead of waiting for a job overseas, Filipino graduates should get employed in the business process outsourcing (BPO) sector to fill in the labor market gaps. “There’s lack of takers in the available jobs in the labor market even if there are graduates who could fill in these [jobs]. These graduates without jobs must take advantage of the labor market gaps."

He added that the demand has exceeded manpower supply since 2007. For instance, the industry needs 60,012 engineers, accountants, and skilled workers, 178,771 hotel and restaurant workers, and 747,947 employees for voice-based work. On the other hand, the number of nursing graduates is more than the number of jobs available. Johnson said with their medical background, these graduates can temporarily get employed as medical transcriptionists to help fill the gap.




ICT-BPO Meet to Tackle Non-US Markets

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ICT-BPO Conference 2012

The ICT-BPO industry in Cebu does not have to focus solely on the US market when it comes to outsourcing opportunities. Jun Sa-a, chairman of the ICT-BPO Conference 2012, stated in a press conference that here are a lot of opportunities for the ICT-BPO industry, particularly the market prospects in nearby countries such as Australia and Singapore.

The ICT-BPO Conference 2012 is a two-day event that will be held on June 27-28 at Radisson Blu Hotel, Cebu City. Around eight ICT-BPO speakers from different countries such as Malaysia, Vietnam, China, Japan, Australia, Singapore, and Europe will join the summit and give lectures about opportunities in markets apart from the US.

Meanwhile, ICT-BPO Conference 2012 Vice-chairman Anthony Noel said they are considering markets that are nearer to the Philippines to take full advantage of the slight time differences for non-stop operations.  


BPO Revenues Seen to Overtake Remittances this Year

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Christian De Guzman, senior analyst and Vice-president at Moody’s Sovereign Risk Group, said remittances from Filipinos working abroad, a foundation of domestic consumption in the Philippines, are projected to lose traction this year. However, the analyst pointed out that it should not cause concern because inflows are relatively large and continuous, and are widely supported by earnings from the business process outsourcing (BPO) sector.

He said the growth of BPO revenues should not be considered as a problem since it indicates a healthy economy, and enables access to more opportunities. Moreover, he said remittances and BPO receipts are two major gears for growth that take turns in gaining strength. He also noted that though remittances are weaker, the total value is still strong.

Cash remittances from OFWs have been tallied, and as of September, these already amounted to $18.408 billion which is 4.1% more than the $17.682 billion recorded last year over the same period.

However, remittances posted the highest ever last year with $24.348 billion, which is up by 5.8% annually. It even surpassed the 5.5% target set by Bangko Sentral ng Pilipinas (BSP) in November of last year. Cash remittances accounted for 8.5% of gross domestic product of the country last year.

On the other hand, a research note indicated that economists at the Hong Kong and Shanghai Banking Corp. Ltd. believe that growth in cash remittances will continue as the demand for OFWs peaked last year.    

De Guzman pointed out that there’s no indication in the data that remittances will decline. It just so happens that BPO receipts are bullish to the point that they are expected to outpace remittances. BPO receipts also point out that job opportunities in the Philippines are stronger.


Bill for the Creation of ICT Dept. Approved by Congress

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In an effort to develop the ICT sector as the business process outsourcing (BPO) industry posts continuous growth, the House of Representatives has approved the bill that deals with the creation of the Department of Information and Communications Technology or DICT.     

The new department will assume the telecommunication responsibilities of the Department of Transportation and Communications (DoTC) under House Bill (HB) 4667. It will be mainly responsible for promoting and developing the ICT sector of the country. The House Bill also indicates that the DICT will be the one to undertake the functions of the Commission on Information and Communications Technology under the Office of the President.

Eastern Samar Rep. Ben P. Evardone, Vice-chairman of the ICT committee and author of one of the DICT bills, said the DICT will help the country to be more competitive in the ICT industry and on a global scale, ensuring that government regulations will be in accordance to the trends in the industry.
The Business Processing Association of the Philippines (BPAP) and the Joint Foreign Chambers have been campaigning for the creation of the department that will focus on the ICT sector and promote the IT and BPO capabilities of the country.


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PH Improves Ranking in Cloud Readiness Index

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Cloud Fuels Innovation in Global Outsourcing Sector

In latest Cloud Readiness Index report, it was revealed that the Philippines climbed four spots to the 10th place, from the 14th place in 2011, on account of its bullish business process outsourcing sector.  

Cloud technology is having centralized data storage and remote access to computer resources and services by means of groups of remote servers and server networks. It can be public, private or a combination of both.
According to Bernie Trudel, Chairman of the Asia Cloud Computing Association (ACCA), the BPO sector is identified as the key contributor mostly because it highly depends on the Cloud for innovation and improvement.

Trudel, who is also the Cisco Asia-Pacific Chief Technology Officer, said another advantage for the country is freedom of information as it is crucial to the progress of the Cloud.

ACCA has dubbed the Philippines as one of the “dedicated improvers”, together with Malaysia, Taiwan, and Thailand.

However, amidst the country’s low scores in government regulations and telecommunication infrastructure aspects of the index, the Philippines has been consistently improving in the cloud readiness parameter.

Japan is the leader of the ranking, and in fact has been on top for three consecutive years now, while Australia, Thailand, and New Zealand climbed four spots.

The index, which is currently on its 3rd installment, evaluates 14 countries against 10 indicators, which include infrastructure and regulatory systems, to see if which one is prepared for Cloud computing adoption.


PH ICT Industry to reach $50 Billion by 2016

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Even with the continuous rise of the peso, the Aquino government remains positive that the local information and communication technology (ICT) sector will be able to achieve $50 billion in revenues by 2016.

ICT sector to deliver $25B by 2016

According to the deputy executive director of the Department of Science and Technology-Information and Communication Technology Office (DOST-ICTO), Monchito Ibrahim, the government has furnished the requirements needed by the ICT sector. He estimated that the information technology and business process outsourcing (IT-BPO) segment will contribute $25 billion and other ICT-sectors such as animation will deliver $25 billion by 2016.

Moreover, Ibrahim pointed out that the reliable and abundant transmission networks and cable landing stations provided by key telecommunications companies such as the Philippine Long Distance Telephone Co. (PLDT) and Ayala-led Globe Telecom Inc. are key factors for the sector’s growth.

Other influencers identified by Ibrahim are the special five-percent tax on gross income, other tax and duties exemptions, four to eight years income  tax holiday, sales grants amounting to 30 percent of total sales and discounts on training costs.

Meanwhile, DOST noted that Metro Manila isn’t the only hub equipped for IT-BPO operations as Cebu and Davao have similar infrastructure as well.


Aquino Admin Expresses Confidence in PH ICT-BPO

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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.


More US Healthcare Firms to Outsource to PH

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After the road show piloted by the Department of Trade and Industry (DTI) in the US, American business process management (BPM) firms that are dealing with healthcare processes are considering the Philippines as a destination for expanding their operations.

According to Ponciano C. Manalo, Undersecretary of DTI, they went to New York, San Francisco, Atlanta, and Washington, D.C. and a lot of participants aired their interest to invest in the country. One of the key reasons, he said, is that the demand for outsourcing within the sector is really high. There are a lot of opportunities in the Philippines as well because of the recently ratified Affordable Healthcare Act in the US.  

The entire global healthcare information management industry is worth $3 billion, and the Philippines only represents $400 million. However, there are already plans to increase it to $1 billion by 2016.
Data from the National Statistical Coordination Board indicate that for the second quarter of this year, US posted the most investment pledges amounting to P43.2 billion in the country. Japan came in second with pledges amounting to a total of P4.2 billion, and the Netherlands with P3.8 billion.



Hollywood outsourcing expands in Cebu

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The outsourcing of Hollywood movie production is expanding its outsourcing operations in Cebu amid increasing demand for offshore graphic artists and animators.

Hirota Paint Industries (HPI) is among such companies that are currently having to expand outsourcing operations. HPI provides visual effects editing and animation outsourcing solutions for Hollywood movies like G.I. Joe, Ninja Assasin, and Australia among others; the Philippine Star reported. The company currently employs six graphic artists for animation outsourcing solutions; a number HPI claims it is going to double within the next months.

Hollywood outsourcing firm, VersaGrafx Designs Philippines Inc., is reportedly looking to establish the Graphic Arts Academy in Cebu to further enhance the talent pool of artists in the Philippines. The academy will contain around 100 seats and will reach completion before early 2010.

VersaGrafix creative director, Junny D. Mahilum, expressed concerns that graphic artists are �overlooked by educational institutions despite it being among the most globally in-demand jobs.


More Talent Needed in PH BPO Sector

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Talent Shortage in the Philippines' BPO Sector

For the Philippines to achieve growth targets for 2016, the Information Technology and Business Process Outsourcing (IT-BPO) sector of the Philippines has planned to increase its talent pool. In fact, Accenture, one of the major players operating in the country, said anyone who wants to be part of the outsourcing industry is welcome to apply.  

Manolito Tayag, Managing Director at Accenture Philippines and Vice-chairman of the board at the IT & Business Processing Association of the Philippines (IBPAP), said there are a lot of employment opportunities in IT-BPO because of its diversity and scale. There’s also room for career growth.

Tayag added that last year, the IT-BPO industry posted US$15.5 billion in revenues and provided 900,000 jobs.

The executive further noted that the BPO sector will continue to expand. He added that outsourcing is one of the pillars of growth of the local economy. Based on the 2016 IT-BPO roadmap, the goal is to employ 1.3 million Filipinos by 2016, and generate US$25 billion in revenues.

Accenture Philippines is the third largest Accenture branch in the world with 32,000 employees - following Accenture India and Accenture US.


Clients Predicted to Spend More in IT next Year

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A study done by Offshore Insights, an advisory and research firm, indicated that IT spending could grow in 2013 after the information technology (IT) activity slowdown in American and European markets. Half of the 270 respondents who are decision-makers in IT companies from North America and Europe said they will increase their IT spending by 10 percent next year.

The study denoted that the IT offshoring market for India could increase 15-18 percent due to the growing IT activity in North America, although the European market will remain at a standstill for one more year. Moreover, Chief Executive and Research Director at Offshore Insights Sudin Apte found that international buyers are planning to spend more, but not quite as much compared to two years ago.

Meanwhile, 36 percent of the survey participants stated that they predict a more challenging business environment next year, whereas 32 percent said it would be a positive one. The report also noted that executives from North America were more optimistic than those in Europe. Furthermore, 60 percent of India's $70-billion IT services industry serve the North American market.

IT segments such as apps integration, enterprise applications, and innovation would post the highest growth.

On the other hand, more and more clients said they are unhappy with the services of IT outsourcing vendors, as well as their stringent position when it comes to pricing models. Also, global IT outsourcing firms were observed to be on the fast track on besting Indian IT firms in cost savings, software processes, and quality.


Metro Manila's BPO Sector Outpaces India

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Metro Manila, Philippines has taken the top position as the lead outsourcing destination.

According to a report created by Knowledgefaber, a research consultancy firm, the Philippines has bested seven of India's outsourcing hubs, all of which are in the top 25 cities list, when it comes to setting up a business process outsourcing (BPO) operation. The report also found that the banking and capital market spends the most on business process management (BPM).
The Philippines gradually became dominant in the BPO scene from 2010. Canada and Poland are also identified as strong players because these are able to address language constraint issues.

India's $20-billion BPO sector grew 8.9 percent, while the Philippines grew 15.6 percent.

Knowledgefaber's Nagarajan Ganesan said the Philippines' BPO sector developed because of its large and competent workforce for the voice segment. Moreover, its affinity to Western culture makes it a desirable outsourcing hub.

IT and software organization Nasscom said India has lost 10 percent of its global market share in the past five years, majority of which came from voice-based processes.

Meanwhile, two of India's key outsourcing destinations, Bangalore and Mumbai, ranked fourth and third in the list.

Kris Lakshmikanth, CEO and managing director at HeadHunters, said India is still the leader globally for non-voice outsourcing but the competition is getting tougher as new destinations are threatening to take India's place.


Cebu Seen as an Alternative Location for BPOs

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Data from real estate company CBRE Philippines Metro Cebu Marketreview report indicated that business process outsourcing (BPO) companies are strongly considering Cebu as an alternative business hub, and are in fact expanding and establishing operations in the province.

In the report, Cebu is being considered because of its considerably lower wages, utilities, and rent, making it a sensible choice for outsourcing firms that are looking to reduce operating costs.

Apart from lower electricity and water rates, Cebu's minimum wage for non-agricultural workers is P282-P327, a far cry from the P419-P456 rate in Metro Manila.
CBRE cited the Cebu Business Park as the most competitive location because office rental rates in the hub are 20 percent lower compared to rates in Quezon City, and 78 percent lower than Makati's rates.

The real estate company also found that during the first half of this year, the demand and supply for the office market in Cebu increased, and six new office buildings were recently opened. With the healthy demand from BPOs, the report stated that developers are confident in the market.



Gartner Predicts IT Expenses in MEA Region to Reach $93bn

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MEA IT Expenses

Research and consultancy firm Gartner predicts that overall IT spending in the Middle East and Africa (MEA) region will increase by 6.3 percent, from $88.51 billion in 2011 to $93.87 billion this year.

Peter Sondergaard, Gartner’s Senior Vice-president and global head of research, said the growth rate throughout the region was larger in 2011 compared to what it is now. He added that the cloud, social media, mobile, and information are four factors that will affect IT organizations and technology providers in the Middle East, but then again growth for the organizations could be hindered by challenges such as the market for cloud services, talent shortage, and large volumes of data to be handled.

These challenges will then push CIOs in the Middle East to outsource construction of infrastructure and application environments. With ample bargaining power and proper vendor management skills, CIOs are likely to land good outsourcing deals, added Sondergaard.

It is expected that the banking and securities industry, particularly in the Mena region, will post the fastest growth, followed by transportation and healthcare.


BPAP: Solid Government Support Needed to Reach US$25B

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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.


Health Insurers Seen to Outsource more IT Work

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IT Outsourcing in the Health Insurance Sector

A survey done by Black Book revealed that the healthcare payer IT outsourcing market could grow by 40 percent in the next two years. Insurers plan to use outsourcing as a solution for the sudden, unexpected increase in expenses, but didn’t produce the expected results.

However, less than 10 percent of healthcare leaders who joined the survey are willing to subcontract IT functions outside US due to cyber security concerns. In fact, 75 percent of reporting health plans were very careful when it came to their outsourcing strategies, citing data breaches and possible cyberattacks can lead to unsafe operations.

Doug Brown, Managing Partner of Black Book Research Group, stated in the survey announcement that IT outsourcing clients in the health plan sector have been more cautious and are doing intensive research to safeguard data privacy and avoid security issues.

Insurers are said to be raising outsourcing budgets to 20 percent for next year for certain functions such as application support as well as desktop and help desk support. The survey also indicated that nearly 80 of participants said they are considering outsourcing in the next 12 months.

Other functions that health plans are planning to invest on are mobile applications, virtual care, and remote health monitoring. These processes are anticipated to create a demand for big data and analytics for population health initiatives.

Despite having a potential market in the population health management, FierceHealthPayer reports that healthcare providers are still unequipped with the necessary tools for IT administrative work and data gathering capabilities on patient populations.


Global Outsourcing Activity Report

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Information Services Group (ISG), a market intelligence and consultancy firm, recently released a general report on the global outsourcing industry’s activities for 2013 called the ISG Outsourcing Index.

Data from the report included findings on deals with annual contract value (ACV) reaching $5 million or more awarded in the last quarter of 2013 increased 13 percent, but the total ACV decreased 12 percent to $4.6 billion. For the entire year, the volume of closed deals climbed two percent, but values dropped 18 percent to $18.7 billion. 2013 accrued 1,155 contracts in total – 309 of which were awarded in the fourth quarter.
ISG notes that global outsourcing activity was strong during the fourth quarter, but then again, contract value continued to fall as buyers are now moving towards smaller deals. 

Slowdown in global outsourcing activity

Some of the reasons ISG found that have contributed to the drop in value are the decrease in number of mega deals (deals with ACV of $100 million and up), the slowdown in activity within the manufacturing industry, as well as financial services and overall weakness in the business process outsourcing (BPO) sector.

According to John Keppel, President of ISG, the figures they have reported are consistent with the organization’s initial predictions where the fourth quarter of 2013 was not able to recover the poor performance of 2013’ first half. However, for the long-term standpoint, the figures are in proportion to the pre-recession market levels. He added that they are starting to see a shift in demand for sourcing as economies are recovering from recession. He said outsourcing was once a tool used to take advantage of labor arbitrage during the economic downturn, and now, it is used to improve strategies for growth models.

It was also found that activity in contract restructuring increased 22 percent as more enterprises are moving towards multisourcing with short-term contracts. Information technology outsourcing (ITO) also climbed eight percent, specifically in the applications development and maintenance (ADM) segment.  Activity in the EMEA region was also noticeable as contract volume jumped 18 percent – but in smaller average-sized deals.



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PH BPOs Worried about Proposal on Tax Breaks

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PH BPOs Worried over Removal of Tax Incentives

Call center companies in the Philippines are eagerly waiting for the official announcement on tax incentives. The Contact Center Association of the Philippines aired their sentiments regarding the possible removal of tax breaks from the perks given to the outsourcing industry, saying it would weaken the sector and affect its achievements.

In a press briefing at SMX Convention Center, CCAP President Benedict Hernandez said officials need to see it from their point of view, stating that the proposed adjustments could be detrimental to the growth of the industry and affect job production in the country.

The key issue revolves around the outsourcing companies registered at the Philippine Economic Zone Authority (PEZA) that are entitled to an income tax holiday of four to six years. This is on top of other incentives that these organizations are already getting.

CCAP pointed out that call centers prefer the income tax holiday for six years instead of the proposed reduction of the corporate income tax of 10 percent for 15 years.

Hernandez added that other countries are getting better incentives, and though the Philippines’ package is not the best, they don’t want to have it worse.

Everest Group, on the other hand, said the Philippines is still the top destination for voice processes, taking up 36 percent of the total market share of outsourced services globally.
Voice functions take the lion’s share with 90 percent, followed by non-voice processes such as email and chat support that are seen gaining traction as demand continues to increase.


Expert Says BPO Firms Need Disaster Recovery Plan

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During the Business Continuity and Disaster Recovery Event sponsored by inContact, Rick Lowe, Chairman of Metro Manila-based R Lowe Services that specializes in information technology, marketing, and disaster recovery services, stressed that business process outsourcing (BPO) firms need to have disaster recovery programs (DRP) to survive man-made and natural disasters.

A study from global research and consultancy firm Gartner shows that less than 10 percent of BPO companies have integrated a recovery and continuity process, and only 35 percent of BPO facilities have complete DRPs.

Other topics that were tackled by nearly 50 IT executives from various companies during the conference include ways to disseminate information to customers if an emergency comes up, communication SOP with employees and external parties involved, and what local government agencies can do for the industry in times of disaster.

Lowe has worked with renowned companies such as eBay, Yahoo, Lycos, Dell, and other large corporations, building his 20-year career in information technology. He was also Vice-president for IT operations at Telus International-Philippines.


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DOST Launches 'Smarter Philippines' Socio-Economic Program

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The program called "Smarter Philippines" which was recently launched by the Department of Science and Technology (DOST) is anticipated to boost the growth of the country’s society and economy by maximizing the benefits of science and technology. This is in line with the Aquino government's inclusive growth across various segments.

The "Smarter Philippines" program is set to cover and develop five divisions by applying technology and innovation. These are: Addressing Pressing National Concerns, Countryside Development, Inclusive Growth, Improved Delivery of Government Services, and Applying Merging Technologies to Local Products.

The program is also subdivided into: Smarter Governance, Smarter People, Smarter High-Tech Industry, Smarter Computing, Smarter Small and Medium Enterprises, Smarter Agriculture, Smarter Environmental Healthcare, Energy, and Transport, Smarter Public Safety, and Smarter Cities.

DOST initiative to create awareness of rural areas as feasible business process outsourcing hubs

DOST is also improving and developing ICT-dependent programs such as Project NOAH (Nationwide Operational Assessment of Hazards) for nationwide calamities and emergencies, iGovPhils which is a revolutionary integration of the administration’s ICT systems, and Smarter Cities, which is an initiative to create awareness that rural areas are also feasible business process outsourcing (BPO) hubs.


Tax Break Eyed for Graveyard Shift Workers

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A new legislation that aims to give tax breaks for nearly 904,00 employees with graveyard work shifts was recently submitted by Deputy Majority Leader and Makati City Rep. Mar-Len Abigail Binay.

According to the lawmaker, overtime and third shift premiums of workers receiving the minimum wage are taxed as much as 32 percent based on their tax bracket. She is hoping that with House Bills 2836 and 4682, all wages that fall under the graveyard shift and overtime category will be exempted from the tax deductions regardless of their hourly pay rate.

Binay explained that should the tax break take effect, it will empower the consumers to spend on taxed items such as goods and services. She said it will also alleviate the strain of rapid inflation in the country.

Binay also noted that workers in the business process outsourcing (BPO) sector will be the major beneficiaries of the proposed law. Also, BPO workers are remunerated above the stipulated minimum wage, and their third shift premiums and overtime pay are still subject to withholding taxes.

If an employee works beyond the required maximum eight hours a day, he/she is entitled to 25-30 percent additional compensation. As for the night shift premium, Binay explained that an additional 10 percent will be given to employees who work between 10:00pm and 6:00am.

Binay noted that under the Labor Code, if overtime work is within the graveyard shift, the additional overtime labor is first computed and added to the employee's regular hourly rate before the night differential pay is added.


PH Business Leaders List 2015 Priorities

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After the five-day visit of the Pope to the Philippines which affected some of the business operations in the country’s main economic hub, Manila, companies quickly went back to work. As business groups go about the daily grind, organizations identify the core areas for growth, especially since President Aquino’s six-year term will end next year.

For business process outsourcing (BPO), industry bodies expressed that priorities include keeping tax incentives, as well as holiday policies that will reduce additional holidays, particularly the ones with short notice. The IT and Business Processing Association of the Philippines (IBPAP) explained that events such as sudden holidays cost the industry as much as P70 million a day because companies would have to give employees additional holiday pay since they cannot stop their operations.

On the other hand, the Management Association of the Philippines said jobs should be the main priority in the country.

Ramon Del Rosario of the Makati Business Club recently pointed out that the priorities should be more on passing the Bangsamoro Law for peace and development in Mindanao. Another priority is passing the Freedom of Information Bill which aims to fight corruption by giving the citizens the upper hand and letting them demand and study government records. Del Rosario also mentioned relaxing foreign ownership restrictions to attract more investors leading to the production of jobs.


PH BPOs Now Looking at Alternative Locations

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Property advisory and services firm CB Richard Ellis (CBRE) Philippines, Inc. said due to the increasing rents in Manila’s renowned business districts such as Makati and Bonifacio Global City (BGC), business process outsourcing (BPO) firms are now looking at other cities outside Metro Manila as well as provinces.

Alternative locations being considered for BPO expansion

CBRE, which is celebrating its 20th anniversary this year, stated that Alabang, Quezon City, and the Bay Area are some of the locations that are being considered for expanding BPOs.

Rick M. Santos, chief executive officer and founder of California-based CBRE Philippines, the local arm of CBRE Group, Inc. said these locations are home to a rising hub of retail and commercial developments which are helping attract new office growth. He added that secondary options for office properties opened up, which could mean old or former offices, and would be available soon.

A CBRE report showed that during this year’s second quarter, Metro Manila is still one of the prime rental locations in Asia even if rate is a bit more expensive than neighboring business hubs such as Bangkok, considering that it is not a BPO destination. Metro Manila offers $32 per square foot per annum while Bangkok’s is $30.

Santos also pointed out that key factors that are driving outsourcing companies to put up and expand operations in the country are steadily improving infrastructure, telecomunications, and rising volume of public-private partnerships.

Morgan Mcgilvray, director of CBRE’s corporate agency and brokerage department, said BPO hubs are expected to emerge in provinces such as Cavite, Pampanga (Clark), Baguio, Laguna, Cebu, Iloilo, Bacolod, Cagayan de Oro, and Davao.


RP to Focus more on Higher-value Offshoring Services

by @ MicroSourcing.com News Feed

Higher-value services such as finance and accounting, architectural and engineering work, animation, software development, game development, as well as medical and legal transcription will be highlighted in trade shows and exhibitions of the Department of Trade and Industry. This initiative aims to attract more businesses during these tough financial times and boost the outsourcing industry.

One of these trade shows is the upcoming 10th e-Services Global Sourcing Conference and Exhibition which will be held at the SMX Convention Center in Pasay City. �The e-Services 2010 is geared toward carving a bigger niche for the country in the global offshoring business given the unique possibilities presented by the recession,� DTI said.

The said event is part of the trade promotion program in an effort to further promote the country as the ideal outsourcing destination in Asia Pacific.


PH Peso Dubbed as One of Asia's Best Performing Currencies

by @ MicroSourcing.com News Feed

Philippine Peso One of Asia's Best Performing Currency

Due to strong remittance inflows and the growing number of foreign investors to the country, an investment bank predicted that the Philippine Peso will hit the P37 to a dollar mark in the coming year.

According to a report from the Bank of America-Merrill Lynch (BofA-ML), they are keeping an eye on Bangko Sentral ng Pilipinas’ aggressive actions as it is striving to counter the rapid appreciation of the peso against the dollar, propelled by the surge of foreign investments.

However, the rise of the peso could affect the growth of the local business process outsourcing industry, remittances from overseas Filipino workers, and value of dollar exports.

Some of the BSP’s efforts include purchasing dollars to improve the strength and demand of foreign exchange. BofA-ML noted that it will not work as the BSP is suffering losses, caused by costly production of local currency and valuation losses from intervention actions. Moreover, a P68.36 billion deficit is faced by BSP, which is two times more than last year.

BofA-ML noted that the local economy could experience a growth of 5.5 percent as the strong peso will be able to ease inflationary pressures in 2013, as well as provide leeway for lower lending interest rates from banks.

The country’s gross domestic product (GDP) was predicted to increase to 5.7 percent. It was able to reach 6.5 percent during the months of January up to September.


Employers, Labor Groups Keen on Amending Labor Code

by @ MicroSourcing.com News Feed

There are provisions in the Labor Code that must be amended, and the Employers Confederation of the Philippines (Ecop) had expressed their willingness to work with the Trade Union Congress of the Philippines (TUCP) to make the necessary changes.

Labor code amendments sought by the Employers Confederation of the Philippines (Ecop)

According to Ecop president Miguel Varela, amendments must be made in the Labor Code so companies can be more competitive. One “outdated” provision that they want to be amended is the legal prohibition on night work for female employees. “In the 24-hour-duty cycle of the business process outsourcing, or BPO, industry alone, we now have more than 500,000 workers, the majority of whom are women,” said TUCP secretary general Ernesto Herrera. “The outright ban on night work for women has been rendered outmoded by the rapidly changing times.” TUCP added that the issue on labor subcontracting must also be discussed.


India Gets Lion's Share of IT-BPO Industry

by @ MicroSourcing.com News Feed

In a survey done by Tholons Research, a consultancy agency in Bangalore, India has once again toppled other countries as the global leader of the IT-BPO industry, with revenues reaching $59 billion and covering 51% of the global offshore market.  

According to the report, both India and the Philippines have established a solid position in the global outsourcing industry. This can be attributed to their talent pool and revenue share over the years. India's IT-BPO sector has 1.98 million direct employees and 7.5 million indirect employees. On the other hand, the Philippines has recently become the leader of voice-based offshore processes.

Meanwhile, the National Association of Software and Services Companies (Nasscom) stated that for 2011, IT activities reached $574 billion and BPO spending amounted to $158 billion worldwide. However, large global companies are seen to have outsourced only 15% ($110 billion) of the total $732 billion to locations such as the Philippines, India, China and Malaysia. This means there is still more room for growth of the industry.

South East Asia, Latin America, and Africa are expected to cash in on the offshore outsourcing industry by addressing the growing demand of the market.


PH BPOs Seek Holiday Policy Revisions

by @ MicroSourcing.com News Feed

According to Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz, foreign and local employers involved in the business process outsourcing (BPO) industry are urging the government to reconsider holiday policies.

Recommendations include the proposal of prearranged working holidays that would be advantageous for investors as well as employees. Baldoz added that the government grants too many national and local holidays, resulting to negative effects to business operations.

Another issue expressed by the employers is the government's abrupt proclamation and approval of non-working holidays without proper endorsement from stakeholders.

Religious and cultural feasts and founding anniversaries constitute the 184 local holidays, according to DOLE. In addition to that, each locality has two other holidays, and weather disturbances account for an average of four working days each year.

According to reports from the research done by the Institute of Labor Studies at DOLE last year, while holidays help improve tourism in the country, it is detrimental to a business' operation cycle and the earnings of workers.

One of the solutions suggested by the DOLE is a more organized policy regarding leave processes that can make way for the employee's rest and recreation plans. Another one is the approval of special working holidays, which doesn't affect work schedules but still lets employees commemorate a special event.


Latest Global Healthcare Outsourcing Report

by @ MicroSourcing.com News Feed

At the Research and Markets report "Healthcare IT Outsourcing Market by Application & Industry - Global Forecast To 2018", North America accounts for the largest healthcare IT outsourcing market share with 72 percent. It is currently valued at $25 billion and is projected to reach $36 billion by 2018. When it comes to compound annual growth rate (CAGR), Asia-Pacific and RoW are predicted to post 8.1 percent and 7.8 percent in five years' time. North America and Europe, on the other hand, are expected to post 7.6 percent and 7.2 percent CAGRs, respectively, over the same period.

The industry report included predictions about the healthcare sector which specifically covers hospitals, diagnostic laboratories, and clinics. Other segments are biotechnology, pharmaceutical, clinical research organizations, and health insurance.

Healthcare is one of the rapidly rising segments in the global outsourcing industry because of the growing demand for affordable and quality care and insurance. Management and administrative-related process are seen being outsourced to third party service providers.  Majority of the healthcare IT outsourcing clients come from large healthcare organizations, but recently, it has seen a growing number of mid-sized clients as well. Some firms outsource IT processes in fragments such as implementation of EMR, billing systems, and CRM. Others prefer to outsource the entire information management system.

Globally, the healthcare IT outsourcing market, which is currently valued at $35 billion, is anticipated to post a CAGR of 7.6 percent and reach $50.4 billion by 2018. The key propellers of the healthcare sector are health insurance segment, healthcare systems segment, and pharmaceutical segment. These use outsourcing to reduce operational and maintenance costs, tap skilled and trained workforce worldwide, streamline processes, innovate, and mitigate risks.


India Still Number One in Outsourcing - AT Kearney

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India Remains as Top Outsourcing Destination

According to the 2009 Global Services Location Index (GSLI) of AT Kearney, a global management consultancy, India is still the world's leading location of choice for companies which consider offshoring their non-core business processes.

With its low costs of labor, large pool of skilled workers, and attractive business environment, India has secured its place at the top of the list.

China and Malaysia claimed the second and third spots, respectively. Other key outsourcing players which made it to the top 10 are Thailand, Indonesia, Egypt, the Philippines, Chile, Jordan, and Vietnam.

Conducted by AT Kearney and established in 2004, the GSLI is an analysis on the top 50 countries which provide outsourcing services.


Cebu BPO Fuels Office Real Estate Market

by @ MicroSourcing.com News Feed

According to the latest global real estate report done by Colliers International, the usage of commercial properties in Cebu, Philippines has tremendously grown as the rate of vacancy has fallen from 5.5 percent in 2011 to 2.8 percent this year.

The report said local and major developers posted 80,000 square meters of new office space in their portfolios last year, which will lead to a total to 150,000 square meters when completed in 2014.

The drop in vacancy rate for office real estate in Cebu is said to be driven by the rapidly growing volume of new business process outsourcing (BPO) companies and investors in the province.

Meanwhile, the report noted that the drop in vacancy rate is mainly caused by the centralization of office space in locations like the 74-hectare commercial space called the Cebu Park District, which is a collaboration between Ayala Land, Inc. and Cebu Holdings, Inc.

The monthly average leasing rate in Cebu Business Park last year is P450 per square meter. In the upscale Cebu IT Park, the monthly rent varies - P500 to P700 and P300 to P500 per square meter.

The Cebu Park District is said to be attracting more offshore outsourcing firms to the province, according to the global real estate market.


Study Shows most Outsourcing Players do not Manage Associated Risks

by @ MicroSourcing.com News Feed

In a survey recently conducted by learning-based solutions provider ESI International, it was found out that more than half of outsourcing buyers and service providers are not able to effectively manage associated risks.

Out of the 615 respondents from North and South America, UK, Asia, Middle East, and India, 55 percent said their company is �not very effective� or �somewhat effective� when it comes to risk management. Thirty-five percent said their organization is �effective� and six percent noted that they are �extremely effective� in assessing the risks associated with outsourcing.

The study also reveals that only one-third of organizations define their financial goals to outsourcing partners, while 32 percent said they fail to continually assess outsourced work based on the goals they have set.

�With nearly two-thirds of organizations spending up to half of their budgets on outsourcing, there is a need to refine risk management capabilities in order to positively impact bottom line performance,� ESI International said.


RP has most job openings in outsourcing industry

by @ MicroSourcing.com News Feed

An industry report indicates that the Philippines' outsourcing industry comprised the majority of the new jobs opened last month, BusinessWorld said. The data, gathered from the industry's top 40 firms, was disclosed by Jon E. Kaplan, president of consultancy, recruitment and training outfit, TeleDevelopment Services Inc.

�There were 25,700 new job openings for the sector in the month of February alone. Of these jobs, 72% were in the Philippines,� Kplan said at a contact center outsourcing and BPO training event.

The firms surveyed each generated 100 to 3,000 jobs. Kaplan added that new contact center outsourcing jobs were created following expansion initiatives of numerous companies.

The Philippine outsourcing industry generated 70,000 jobs in 2009. The majority of the industry's employees belonged to contact center outsourcing, reeling in 280,000 agents.



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UK Firms Looking beyond Cost Savings in Outsourcing

by @ MicroSourcing.com News Feed

Industry consultancy firm KPMG, recently reported that 490 UK outsourcing contracts worth �10 billion are using outsourcing for customer service improvement, rather than just to reduce costs.

It was also found that businesses are now more willing to invest as economies are getting better. Some factors they are looking to spend on are innovation and new technology, mainly if they see the benefits in improving customer service operations.

Through KPMG's "Service Provider Performance and Satisfaction" report, it was revealed that 48 percent of the respondents said they based outsourcing decisions on the need to improve service levels, and that there was a 20-point increase in the desire to improve quality from the time the issue was initially raised in 2009.

However, KPMG cited challenges that can stunt the effort to improve organization-wide capabilities. Fifty-six percent of the respondents noted that they outsource to gain access to skilled talent. The report also stated that outsourcing clients want to be more involved in the outsourcing operation, rather than it being an "out of sight" agreement.


Lessen Heavy Reliance on BPO, Remittances, Experts Say

by @ MicroSourcing.com News Feed

Financial experts said the Philippines should lessen its reliance on remittances and business process outsourcing (BPO). They also said the country should focus more on improving other sectors which can protect the economy from external risks.

According to the analysts from the macroeconomic research and forecasting unit of the Ateneo de Manila University Economics Department called Eagle Watch, the country should develop other segments that can help sustain the growth of the economy.

Fernando Aldaba, Senior Fellow at Eagle Watch, said BPO and remittances from overseas Filipino workers are sustaining the momentum of the economy. He said other sectors should also be developed to maintain this growth should challenges arise.

Last year, the economy of the Philippines posted a 7.2 percent growth. As for this year's first quarter, the economy grew 5.7 percent and it was found that the bullish economy is being driven by strong consumption in the private sector.
The current accounts of the Philippines are also buoyed by remittances and BPO receipts which help the balance of payments (BOP) stance of the country to remain positive. The BOP is the complete record of all economic transactions of a country across the globe.

Aldaba noted that if the growth drivers are further developed, the Philippines will not have to worry as much on the detrimental effects of future challenges.

Alvin Ang, another Eagle Watch analyst, cited the effects of external changes such as the new policies in the Middle East. He said these can affect the flow of remittances into the country.


PH Property Sector to Remain Strong in 2014

by @ MicroSourcing.com News Feed

Philippine Property Sector reinforced by BPOs

According to Rick Santos, founder and chairman of property consultancy firm CBRE Philippines, growth in the Philippine real estate segment will not slow down in the coming year.  

During his recent interview with BusinessMirror, he said the Philippines showed that it was a key player among the countries in Southeast Asia with its multiple credit rating upgrades and office space take-up activity in the region.

CBRE shared that for Q3 of 2013, 97.3 percent of Metro Manila’s offices were already occupied. The thriving business process outsourcing (BPO) sector was cited as the key driver for the demand in offices in Bonifacio Global City, Quezon City, and Alabang.

Meanwhile, office space demand for traditional business operations is going strong in the Makati Commercial Business District but is outpaced by Taguig in terms of upcoming office space share up until 2016. Taguig is projected to have 37 percent, while Makati would have 24 percent.

However, low demand is seen for the luxury residential properties. Nevertheless, by 2019, Quezon City is anticipated to post the highest turnover of residential condominium units: 45,135 units or 22 percent of the entire local market share.   

In terms of price range, midmarket and affordable condominium properties account for 82.16 percent of the market.


Global Outsourcing Growth Weakens

by @ MicroSourcing.com News Feed

According to the 2011 review of the global outsourcing sector done by Canadian-based ICT research and advisory committee XMG Global, the global outsourcing industry had a higher growth rate in 2010 compared to 2011. It brought in $374 billion in 2009, grew 13.9 percent at $425 billion last year, while it is predicted to post a 9.2 percent growth rate with $464 billion in 2011.

Arch rivals for the top offshoring destination title, China and India, continue to best each other in probing different markets, save for Europe and US.

XMG Global also predicts that the offshoring segment will bring in $144.8 billion in revenues, wherein the offshore market will be led by India with 42.5 percent ($61.5 billion) in revenues, followed by China with 31.5 percent ($45.7 billion), and Philippines at the third spot, with a revenue of $10.7 billion or 7.4 percent share.

Lauro Vives, XMG Global's chief analyst, said �The US economy, which remains to be a large market for offshoring, is still on the road to recovery with a forecasted 2011 GDP growth rate of 2.6 percent, slowing down from last year's 2.9 percent.�

The report also showed that the devaluation of the US dollar is affecting Philippine and Indian providers, which are dependent on the US market. Conversely, China is unscathed by the matter for it exports services to East Asian clients, even if Japan is at the wake of the 2011 earthquake.

XMG added that China is cashing in on the domestic BPO market to excel globally, and that major service providers in India that depended on high earnings from US and UK, namely Tata, Infosys, Wipro and Satyam, are looking into the growing domestic market.

The Philippines is also trying to increase its offshoring market shares by capitalizing on multilingual services. Proof of this is the Board of Investments partnership with IBM Philippines to improve programs locally for business process outsourcing.


Procurement Outsourcing Posts 10% Growth

by @ MicroSourcing.com News Feed

In Everest Group's The Procurement Outsourcing Annual Report, it was found that the total value of contracts involved with procurement outsourcing has already reached $1.72 billion (�1.13 billion), and managed spend now amounts to $220 billion (�144 billion).

One of the key propellers of the procurement outsourcing market is the increased demand from tech firms and financial services. Meanwhile, consumer goods and manufacturing companies are still the biggest adopters of the practice.

Although it is uncommon to outsource direct spend to third party service providers, more and more companies are doing so. The top players taking up 50 percent of the market share in the procurement outsourcing segment are IBM and Accenture.  

The study also revealed that a growing number of businesses are tapping different countries for new deals to reinforce their global expansion plans. Other firms that are looking to outsource procurement processes try it with spend analytics first to understand how it works.


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RP Ranked as World's No. 2 Offshore Outsourcing Nation

by @ MicroSourcing.com News Feed

According to the 2009 Global Services/Tholons Top 50 Emerging Outsourcing Cities report, the Philippines got the number 2 spot in the list of world's offshore outsourcing nations. On the city level, the National Capital Region (NCR) was ranked number 4, with India's Bangalore, Delhi, and Mumbai securing the top 3 spots.

As the economy recovers from the financial crisis, it is expected that the country's outsourcing industry will grow by 26 percent this year and will post a total of $9.5 billion in revenue. According to Business Processing Association of the Philippines (BPAP) CEO and President Oscar Sanez, the industry had shown strength and resiliency during the crisis. �We are employing 442,000 people, of whom 70,000 entered the workforce in 2009. The industry currently contributes to 5 percent of the Philippines Gross Domestic Product.�

The Philippines accounts for 15 percent of the offshore BPO market. This is less than one-third of the total BPO market share of India.


Gartner Study Shows 7.8% Growth for Global ITO

by @ MicroSourcing.com News Feed

Global IT outsourcing revenues increased 7.8%

According to a report from global research and consultancy firm Gartner, global IT outsourcing (ITO) revenues increased 7.8% in 2011, with Indian IT providers and cloud services vendors posting the highest growth rate.  Meanwhile, global ITO market reached $246.6 billion in 2011, from $228.7 billion in 2010.

IBM got the lion’s share of the market and was seen to grown robustly much like the industry.  Moreover, IBM’s revenues contribute 10.9 percent to ITO industry’s total revenues. Hewlett-Packard, on the other hand, took the second spot amid a low growth rate at 2%, which is said to be brought on by internal management issues.

An 18.2% growth was posted by Accenture but only had 2.6% of the entire ITO market.  Furthermore, 43 service providers reported revenues of more or less $1 billion for fiscal year 2011.

Meanwhile, Bryan Britz, Research Director at Gartner, said the 2011 figures show just how hard it is for top players in the ITO space to maintain market share and acquire new ones. The situation is predicted to get worse for service providers that will not address the issues.


Demand for Office Space in PH BPO Remains High

by @ MicroSourcing.com News Feed

Philippine BPOs Remain as top Office Space Clients

According to CBRE Philippines Inc., a renowned property consultant, the business process outsourcing (BPO) sector is still the main source for the demand of office space in the Philippines. Morgan McGilvray, Associate Director of CBRE Philippines Inc., said the total vacancy rate fell from 3.3 percent during this year’s first quarter to 2.45 percent. Over 400,000 sqm of new office space will be available for bidding within the year.  

McGilvray added that he’s looking forward to 2016 because of the anticipated large volume of space that his clients can choose from. He added that demand for office space, particularly for BPO operations in the country, will not be slowing down anytime soon because firms are expanding and are working on establishing their second sites. John Corpus, Director of the global corporate services team of CBRE Philippines Inc., said companies are monitoring new stocks of offices that will be available in 2015 and 2016.

Rick Santos, chairman, founder, and CEO of CBRE Philippines Inc., highlighted that with the 700,000 sqm of leasable office space in the country this year, 80-90 percent is accounted for by the BPO sector. He added that in the coming years, nearly 500,000 sqm of office space will be available. Next year, bulk of new office spaces will be launched in Fort Bonifacio, while other mainstream BPO hubs such as Quezon City, Ortigas, Makati Central Business District, and Alabang are expected to be home to new offices.

The central business district with the least office space available is Quezon City, where only 0.07 percent is available for office take-up.


RP Boosts English Proficiency of Potential BPO Workers

by @ MicroSourcing.com News Feed

Supplying English Skills to Potential BPO Workers in the Philippines

As a major outsourcing and offshoring destination and with the increasing number of job opportunities in the business process outsourcing (BPO) sector, the Philippines is initiating training programs to further improve the English language skills of potential BPO workers.

The Technical Education and Skills Development Authority (TESDA) and the Business Processing Association of the Philippines (BPAP) created Advanced English Proficiency Program which will help students to speak English more fluently. Other programs include IBM's Service, Science, Management and Engineering (SSME), Oracle Academy, and Cisco Networking Academy. These training programs also aim to equip students with the skills that IT companies need.


ManAcq Dept. Takes Part in 2nd Job Fest and Career Fair 2011

by @ MicroSourcing.com News Feed

MicroSourcing Talent Acquisition Team Joins Career Fair

The Manpower Acquisition Department of MicroSourcing participated in the recently concluded 2nd Job Fest and Career Fair 2011. This event was held last May 9-10 at the Glorietta Activity Center in Makati City.

Numerous companies from the business process outsourcing sector and other industries took part in the event, offering various types of jobs including marketing, accounting, customer service, clerical work, retail, administrative, etc. Moreover, different career talks and activities were done during the event. Recruitment Specialist Dan Katipunan provided some job hunting tips to help applicants in looking for work that is suitable for their knowledge and skill set.

Joining different job fairs is one of the major initiatives of the department to attract fresh graduates and unemployed individuals to join the MicroSourcing workforce and increase company awareness. According to Mr. Katipunan, the department is planning to participate in other job fairs to find new talent needed by clients of the company.


Subic Free Port Steps Up Development

by @ MicroSourcing.com News Feed

Subic Free Port Emerging as Services and Logistics Hub

The Subic Bay Metropolitan Authority (SBMA), a former US military base in the northern Philippines, is bent on becoming the region's hub for the services and logistics sectors as they accelerate plans on developing priority investment zones in the sprawling free port complex.
“We are very proud of the fact that we have attracted cumulative investments worth more than $7.16 billion and almost 1,500 investment projects as of 2010. Unfortunately, these investments won’t bring any economic benefit to us if they do not materialize for lack of space,” explains Armand Arreza, SBMA administrator.
Among the zones to be redeveloped is the Subic Gateway Park, which already hosts several business process outsourcing (BPO) companies. Arreza comments that the Subic Gateway Park is ‘emerging to be primarily our business process outsourcing (BPO) center within the next few years.’
Arreza says a 16-hectare area adjacent to the Subic Gateway Park will be developed into the new Gateway Business District, which will offer additional office space to the country’s expanding BPO industry.


15% Growth in Employment Predicted for PH Voice Sector

by @ MicroSourcing.com News Feed

Philippine Call Center Operations to Grow 15%

Benedict Hernandez, President of the Business Processing Association of the Philippines (BPAP), anticipates a 15% growth in employment for the already bullish voice segment of the Philippine business process outsourcing (BPO) industry. The country’s contact center sector has 493,000 employees and is seen to increase to 567,000 in 2013.
Hernandez noted that the employment growth in the voice sector is the most bullish, outpacing the average employment growth in the country by five times. This goes to show that the voice-based sector creates more jobs and is more profitable than other sectors.

Furthermore, Jojo Uligan, Executive Director of the Contact Center Association of the Philippines (CCAP), the voice sector provides higher wage rates. He added that the usual monthly salary of an entry-level worker ranges from P12000 to P13000, which is 38 percent more than the usual basic minimum of P9000.

According to Hernandez, the country has been named as the leading outsourcing destination for voice-based services and is the world’s best country in business English proficiency based on a study done by GlobalEnglish Corporation.



Indian BPOs Testing IT Waters to Survive

by @ MicroSourcing.com News Feed

Leading Indian BPO companies are enhancing their IT skills and expertise to ensure their survivability in the global market and retain existing contracts, which are at risk of being won over by IT firms that offer integrated IT-BPO services, reports Indian newspaper The Economic Times.

Industry giants IBM and Accenture, which have been reported by Horses for Sources as one of the Big 4 cornering major multimillion dollar deals, are threatening the client portfolios of standalone BPO companies, says the newspaper.

Deepak Patel, CEO of one of India's biggest global outsourcing firms, Aditya Birla Minacs, tells the newspaper that the BPO industry is "evolving from being process-oriented to becoming more technology-intensive as customers look for the entire value chain of services."

The company has begun offering enterprise application support, RIM, ADM, and business analytics, alongside their usual BPO offerings.

The Economic Times

ISG Releases 2016 Q1 Outsourcing Index

by @ MicroSourcing.com News Feed

ISG Q1 2016 Outsourcing Index

According to the Outsourcing Index released by technology insights and market intelligence and advisory services company ISG (Information Services Group), smaller deals, which are contracts worth $40 million or less, rose 40 percent to $4.1 billion. Contracts that underwent changes surged 48 percent to $2.8 billion. Also, the volume and value of outsourcing contracts across the globe increased during this year’s first quarter.

The ISG Outsourcing Index interprets data collected from commercial outsourcing contracts with an annual contract value (ACV) of $5 million or more and it found that the ACV for the first quarter of this year climbed 20 percent to $6.1 billion.

It was also discovered that Q1-2016 is the second quarter that saw a contract volume exceed the 400 mark with 404 deals. The first ever was Q2-2015 with a record volume of 446. Compared to last year, the volume of contracts is 32 percent higher, propelled by restructurings which make up 78 percent or 173 of the total number of deals. Also, information technology outsourcing (ITO) contracts grew 51 percent to 301 deals. On the other hand, only five mega deals (contracts that are worth $100 million and more) declined from last year’s seven.
During the last 12 months, ACV totaled $24.7 billion. This is the highest level in the last four years and volume peaked with 1,542 contracts.

ISG cited their forecast for this year, saying 2016’s first quarter did far better than 2015 with ACV surpassing $6 billion for the second quarter which is an indication of a healthy market flow.

John Keppel, Partner and President of ISG, further explained that there’s a balance between the volumes of new deals and restructured ones. This means that there are a lot of opportunities in the market. Moreover, even if the use of the cloud is gaining traction, strong growth in ITO value and volume proves that IT solutions are positively impacting multiple areas in the outsourcing sector.

The total value of ITO contracts in the first quarter grew 24 percent to $4.2 billion. Business process outsourcing deals climbed 12 percent to $1.9 billion, despite a slight decline in the volume of BPO deals.


UK Outsourcing Market Shows Slower Activity

by @ MicroSourcing.com News Feed

According to "UK Software Market: Trends and Forecasts" study done by market consultancy TechMarketView, even if the UK Software and IT Services (SITS) market is anticipated to grow to �44.3 billion (eight percent) by 2016, it will still fall five percent off from growth figures posted during 2011.

However, the report found that SMEs can still get prospects from larger players regardless of the tight market.

Meanwhile, data from the supplementary study "UK SITS Company Rankings" showed that in 2012, the top 30 firms in the UK SITS market contributed �30.4 billion, which equates to four percent growth and is a result of major buyouts.

Some of the companies that topped the rankings are HP, IBM, Capita, and BT.  However, TechMarketReview stated that even if HP took the lead, it decreased by five percent.
Richard Holway, TechMarketView's Chairman, shared his sentiments that growth and success firmly depend on proper management and how processes are executed. He named renowned leaders such as Steve Jobs and Tim Cook, Bill Gates, and Steve Ballmer, as well as their influence in the market and how CSCs like Mike Lawrie change the SITS market.

The executive also noted that the economic slowdown and rapid evolution of how IT services are delivered pose a great threat even for stable SMEs.


What’s Your 2017 Strategic Marketing Plan?

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Are you back into the swing of things for 2017? Sorry I dropped off the grid for a couple of months there! I was knee deep in the Michael Gerber (author of the E-Myth) launch, trip to the Philippines, trip to the USA and then before I knew it, it was the holidays. I just […]

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e-Services Event to Highlight KPO Services

by @ MicroSourcing.com News Feed

Outsourcing services which are considered high-end and analytic-intensive will be highlighted in the 10th e-Services Global Sourcing Conference & Exhibition. This will be held on February 8-9, 2010 at the SMX Convention Center, Mall of Asia Complex, Metro Manila.

Emerging trends highlight KPO services

"In light of the global economic downturn, emerging trends reflect a movement up the value curve [away from voice-based services] towards what is called knowledge process outsourcing (KPO) with functions involving greater business complexity," the Center for International Trade Expositions (CITEM) said. These outsourcing services refer to tasks from the fields of medicine, engineering, and finance. CITEM added that cloud computing technology will also be discussed in the event.

The upcoming e-Services event aims to promote the Philippines as the ideal outsourcing destination. About 200 local and foreign IT service providers and 2,000 buyers are expected to take part in the event.




Is SEO Outsourcing the Right Choice for Your Small Business?

by 365outsource_admin @ 365Outsource.com

Through the years, SEO has become more and more complicated; sometimes requiring more time than a small business owner has. For many, the solution was to outsource portions of their online marketing efforts. Particularly link building and content creation. But is outsourcing really a better alternative to building an in-house SEO team? Here are some…

The post Is SEO Outsourcing the Right Choice for Your Small Business? appeared first on 365Outsource.com.

ETON Properties to Bank on the BPO Sector

by @ MicroSourcing.com News Feed

170,000 square meters - that's the total leasable space that ETON Properties Philippines currently has, and knowing that there is an increasing demand for BPO office space, the firm is even planning on expanding to accommodate the growing business process outsourcing (BPO) sector.  Its current properties at Eton Cyberpod Corinthians and the two new buildings at Eton Centris cover almost 70,000sqm or seven hectares.

Danilo Ignacio, Eton's President, said that the second BPO building at Eton Centris has started its leasing contracts early this year, while the other two buildings will be launched in 2012. These buildings are made for companies that want to take advantage of the labor pool in the northern part of the Metro. He added that the company is focusing more on BPO buildings and is developing the upcoming sites in accordance to the standards of offshore outsourcing companies.

With the high demand for office space, Ignacio said the two BPO buildings may be available for leasing even if the construction is not yet finished. Moreover, he said that if all goes well, they might opt to add another BPO building instead of a residential one in Sta. Rosa, Laguna.


Demand for FAO Services to Grow in 2010, Survey Shows

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Survey Predicts Deman for FAO to Rise

Key findings of The WNS Annual CFO Survey 2010 show that this year, the demand for finance and accounting outsourcing (FAO) will continue to grow.

One hundred CFOs from companies with over $3bn in revenues took part in the online survey. More than 75 percent of senior finance executives said they aim for expansion of their outsourcing programs this year, while 85 percent are satisfied with the benefits from outsourcing finance and accounting processes.

"The survey clearly suggests that FAO has become a mainstream tool as 85 percent of respondents say they are satisfied with the benefits. While FAO has been commonly used to reduce cost of operations, it is increasingly becoming more strategic, focusing on transforming F&A operations," said Sulakshana Patankar, Business Unit Leader, WNS Finance and Accounting Solutions. "It is extremely encouraging to note that respondents who outsource plan to increase the scale of their programs in 2010, expanding both processes in scope and adding business units and geographies."

The survey was commissioned by WNS (Holdings) Limited (NYSE: WNS) and conducted by EquaSiis, an EquaTerra company.



BPO Investors still Drawn to Metro Manila

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Metro Manila Philippines Continues to Attract Investors

Even though the Philippines is promoting the "Next Wave Cities" as feasible alternatives for business process outsourcing (BPO) operations, a lot of foreign investors still favor Central Business Districts (CBDs) in Metro Manila.

According to Jose Mari Mercado, President and CEO of the IT and Business Process Association of the Philippines (IBPAP), a handful of BPO firms are said to have expanded in remote cities and provinces, but majority still choose to set up operations in the National Capital Region. He added that one of the key factors that drive BPOs to continue to patronize Metro Manila is that it presents well-planned development. Mercado pointed out that most of the time, Metro Manila is the first choice of investors in North America.

Bonifacio Global City (BGC) is one of the hubs cited by real estate experts as a preferred location due to its growing supply of office space and well-developed infrastructure. The Vertis North by Ayala Land Corp. is another CBD tagged as an emerging BPO hub in Quezon City. It is one of the six growth centers unveiled by Ayala this month.

"Next Wave Cities" are chosen by IBPAP based on these factors: covered population, educational environment, telecommunications infrastructure, local Philippine Economic Zone Authority (PEZA) zones, etc.

Since BPO expansions are sources of employment opportunities, cities outside Metro Manila consider them as important investments. Canadian Chamber of Commerce of the Philippines President Julian Payne said the Philippines is a strategic location for BPOs because of its culture, English language proficiency, and time zone.


New Market Trends are Shaping the Global BPO Sector

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In a press briefing in Makati, Convergys Corp. CEO and President Andrea Ayers said though there are several disjointed segments in the business process outsourcing industry, consolidation will be faster compared to 10 years before. This event is driven by the rising number of clients who are looking to expand operations, and in order for providers to support the growth, they would have to invest in new and expensive technology.
A lot of the clients are globally acclaimed companies looking for service providers that have almost everything that they would need in one go.

The executive added that mergers in the BPO space are making it harder for smaller providers since they have limited offerings and are not able to keep up with the changes in the industry. There’s also a mismatch with the size, scale, and services.

Pivotal factors for BPO firms

Technology is one of the pivotal factors for BPO firms, alongside location and infrastructure.
In this day and age, clients are more concerned with data, privacy, and security. They are looking out for their customers and are very careful in selecting a provider, and because smaller players can’t keep up with that, they get the short end of the stick.



RP digital production and animation in high demand

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The BPAP (Business Process Association of the Philippines (BPAP) has organized an effort to divert focus on the Philippines' creative sector; namely digital production and animation after assessing its high potential to boost the local BPO industry.

Content development companies in the Philippines now service big foreign clients like Cartoon Network, Nickelodeon, and a large variety of Japanese animation companies. The Philippines currently reels in 15% of the total creative outsourcing market with India earning 37%.

Growth in automative creative requirements in the coming years

“In the coming years we foresee a growth in automated creative requirements from other countries, especially in the film-making and gaming sectors,” said BPAP Executive Director for Talent Development, Jamea Garcia.

Garcia further encouraged graphic designers and animators across the nation to continue to augment and apply their talents to land contracts from offshore companies looking to outsource creative requirements.


PH to Reinforce Services Sector in APEC Meeting

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According to the National Economic and Development Authority (NEDA), the Philippines can use its position as the chairman of the largest global economic gathering in the last 19 years - the Asia-Pacific Economic Cooperation (APEC) Meeting, to leverage its services sector.

From January 31 to February 7, NEDA will host four events at the Asia-Pacific Economic Cooperation (APEC) Senior Officials Meeting to be held at the Clark Freeport Zone, Pampanga.

PH services sector largest contributor to growth

The services sector contributes 56.7 percent to the gross domestic product (GDP) of the country, and is the largest contributor to its growth during the fourth quarter of last year.

Emmanuel Esguerra, Deputy Director-general at NEDA, said the services sector could use a little more push for its potential to be maximized. He also pointed out that the country’s APEC chairmanship can enable local small and medium enterprises (SMEs) to make it to global value chains (GVC). In addition to that, he said out of all the APEC economies, the Philippines has the highest GVC participation in optical and electrical equipment.

Last year, the services sector posted a full-year growth average of six percent, similar to the figures posted during the fourth quarter of the same year. Also, the business process outsourcing (BPO) sector is eyeing to have 1.3 million full-time employees and $25 billion in revenues by 2016. The sector currently has 1.052 million workers.


In-House Vs. Outsourced SEO: Pros And Cons - The Social Media Monthly

In-House Vs. Outsourced SEO: Pros And Cons - The Social Media Monthly

The Social Media Monthly

 In-House Vs. Outsourced SEO: Pros And Cons Even for the sharpest of industry professionals, effective SEO (search engine optimization) can be a bit of a challenge. Rankings, inbound traffic, and conversion are all very volatile. Every day certain factors change, leading SEO professionals having to adapt and change their tactics. With SEO being so complicated, …

Cloud Highly Considered in Outsourcing Contracts

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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.


PH to Help Australia Tap China's Market

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According to an executive at the Philippine Software Industry Association (PSIA), the Philippines is set to partner with the software development sector of Australia and be the bridge to the global market, particularly China's. After receiving news that Australian IT companies are looking to hire local talents, Nora Terrado, President of PSIA, said this is an opportunity for the country to progress.  

Martin Conboy, President of the Australian Business Process Outsourcing Association (ABPOA) and publisher of The Sauce BPO, said this is a good opportunity for the Philippines. He added that China's Five Year Development Plan requires 10 million call center agents. This means Australia would need the help of the Philippines to tap that market.

Australia's skilled workforce is thinning and candidates are difficult to find. For Australian companies to tap international markets like China, they would need help from other regions to improve talent supply and streamline internal processes.

Other important topics highlighted by Conboy during his presentation in Manila are tips for tapping the Australian market, upcoming movements in �outsourcing verticalization�, social media, processes that are most likely to be outsourced in the coming years, and what the sector has in store for software companies.


Megaworld to Open New BPO Buildings in Fort Bonifacio

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Megaworld Corp., the leading BPO office lessor, is set to open five new buildings this year at the McKinley Hill Cyberpark in Fort Bonifacio, the largest IT park of the company.

According to Jericho Go, VP of business development, opening new buildings for outsourcing companies will meet the needs of the ever growing BPO industry in the country. �We are hoping that with these new buildings, which are designed according to the specific requirements of BPO firms, we will be able to help the industry achieve its growth target of at least 23 percent this year.�

Go added that the buildings, which have 75,000 sq. m. of office space, feature 91% floor efficiency ratio to maximize space for BPO operations and an advanced variable refrigerant air conditioning system that will help lower electricity costs.


Concerns CIOs Face with EHR Providers

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Challenges in Outsourcing Electronic Health Records

A study done by Frost & Sullivan and EHR Intelligence, in partnership with the College of Healthcare Information Management Executives, surveyed CIOs of medium and large hospitals from March to May. The study aimed to see what the CIOs feel about electronic health records (EHRs), and they soon found out that poor usability and search functions are the common issues that they have to deal with.

Survey participants said when it comes to the search functionality of EHRs, results are usually inaccurate and systems are slow. The study also found that this issue is caused by poor EHR usability and lack of user training and information about EHR.

When EHR clients have a hard time finding and reviewing data, they lose productivity not only in the clinical segment but also with end-users, making it risky for patients.  

Since most EHRs are still working on improving their status and capabilities, this is anticipated to increase competition and encourage software developers to improve usability, and for service providers to enhance their capacities.


Favorable Global BPO Opportunities from the Financial Services Sector

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Financial services sector expected to grow

Everest Group, an international consulting and research firm, shared data about the potential of the financial services sector in business process outsourcing (BPO) to expand. Currently, the said sector is valued at US$16-18 billion, 40 percent of the entire US$40 billion global sourcing market. It is expected to grow 15 times its current market size.

The report entitled “Role of Global Sourcing in Financial Services BPO” tackles topics such as what made the financial service BPO what it is today and how fast it got there.  It also includes analysis of data from clients and service providers, strategies done by financial services companies, as well as factors that affect the demand in various financial sectors such as the banking sector and insurance BPO.
Research Vice-president Saurabh Gupta said, “In the current economic scenario where financial services companies are facing competitive pressures and are reconsidering their cost bases, BPO across industry-specific processes in banking, capital markets, and insurance is generating much interest. Our analysis finds the medium to long-term growth outlook to be significant and robust,” he added.

Rajesh Ranjan, research director and co-author of the report, said “Despite significant challenges, such as constraints in the United States associated with the Troubled Asset Relief Program (TARP) and new data protection measures in the European Union, the impact on global sourcing has been minimal,” and asserted, “Financial services firms and service providers have adapted and properly mitigated against new and emerging challenges.”

The participants in the research done by Everest Group were (strongest global sourcing capabilities): Banking BPO - Genpact, HP and TCS; Capital Markets BPO - Infosys BPO, TCS, and Wipro; Insurance BPO - Accenture, EXL Services, and WNS; and other Services - Capgemini, CSC, eClerx, HCL, Intelenet, Syntel and Xchanging.


TPI: Outsourcing Spending Increases, Contract Values Decrease

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Outsourcing Spending Rises but Value Decreases

Outsourcing consultancy firm TPI said compared to 2010, businesses spent more on outsourcing in the second quarter this year. However, the average value of IT outsourcing contracts decreased for the same period.
Based on the TPI Index, while the total value of deals posted a 13 percent increase or €7.6 billion, the value of the global outsourcing industry decreased by 18 percent as the number of mega deals declined. In other words, there is an increase in IT and BPO spending, but the contracts have lower value. 
“We have actually seen the pace of UK public sector activity increase in 2011, but contract values have declined,” said Duncan Aitchison, a partner at TPI. Increase in demand for outsourcing is seen in the UK, particularly in the Netherlands and France. 

Gartner Predicts Indian BPO will Grow 19% through 2013

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India's BPO market will show an impressive 19 percent growth rate through 2013. By 2011, it will grow into a $1.2 billion business and about $1.8 billion in 2013. This is based on a latest report by research firm Gartner.

Changes in market trends such as demographics, increasing affluence levels, and focus on service quality will drive the domestic BPO market to post impressive growth figures through 2013. �In the last two years, many established Indian BPO providers and some of the multi-national corporation (MNC) service providers - focusing primarily on the international offshore services market - have shifted greater focus and investments to the Indian domestic market,� said TJ Singh, Gartner research director.

India is still the number one offshore outsourcing nation in the world according to the 2009 Global Services/Tholons Top 50 Emerging Outsourcing Cities report.


AU Companies Turn to Outsourcing for Growth

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As the effects of the recent economic downturn continue to plague Australia, top business executives shift focus on innovation, streamlining business processes, and upgrade of IT functions to drive growth.

A research from leading market consultancy firm IDC states that the ability of companies to keep up with the latest technological trends in the market is crucial in today’s fast-paced business environment. IDC Australia’s Senior Market Analyst Raj Mudaliar said another strong point that business leaders should look into is customer support to reinforce retention, centricity, and client base to keep the business going.

IT outsourcing services market in Australia projected to reach $9.5B by 2016

He adds that the IT outsourcing (ITO) services market in Australia was valued at $7.3 billion in 2011 and accounted for majority of the entire IT services market. It is also projected to reach $9.5 billion by 2016 with a compound annual growth rate (CAGR) of 5.4 percent for 2012-2016.

On the other hand, Mudaliar said the infrastructure services outsourcing (ISO) market was propelled by long-term cost saving goals, simplified IT infrastructure, as well as access to the latest technological advancements and talent pool with technical skills.

Other factors that are seen to affect Australia’s business environment are the looming economic challenges in Europe as well as the recession in the US and its effects on China which is the largest trading partner of Australia.

The IDC study also shows that the increase in labor and operational costs, tapping new customers, and penetrating new markets are the main concerns of Australian businesses in 2012-2013. Moreover, IDC shares that the concerns of CIOs for 2012 are consistent with their report which are lower costs of infrastructure, partnerships, and stricter IT environment.


Organizers Ready for Top PH Outsourcing Event

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International Outsourcing Summit Philippines

The International Outsourcing Summit, the Philippines’ top outsourcing event, is gearing up for its third year, to be held later this year from October 11 to 12 at Sofitel Philippine Plaza in Pasay City.

The industry group Business Processing Association of the Philippines (BPAP) has renewed their contract with events organizing firm TeamAsia. This year’s summit will revolve around the theme “Global Market Leaders Addressing Global Issues.”

“The IT-BPO Road Map 2011-2016 identified key opportunities and risks for the Philippines to take advantage of the growth in the IT-BPO industry. Likewise, existing and emerging locators are on the road to successfully replicating the Philippines’ success, making competition in the industry fiercer, not only in terms of costs, but more importantly, in terms of labor provision and talent management, technology and service innovation, and specialization,” says BPAP senior executive director Gillian Joyce G. Virata.

“This year’s Summit reviews the Road Map and its implications on the Philippines’ position as the new leader in voice — and how it affects the even faster-growing non-voice segment for all locators,” Virata explains.

According to BPAP executive director for industry affairs Raymond Lacdao, the summit will focus on innovation and value creation. “The industry is moving up the value chain rapidly, and clients expect services providers to be their partners in enhancing value for their customers.”

Lacdao says that for this year, they expect to see around 400 executives from the IT-BPO and shared services sectors of 20 countries to participate in the summit’s exhibits, gala dinners, and site tours.


PH BPO Posts 24% Growth in 2011

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Bullish Philippine BPO Industry is on Track

The business process outsourcing (BPO) sector of the Philippines is right on track when it comes to meeting its 2016 goals as it posted a 24% ($11 billion) increase in revenues from 2010 to 2011.

Benedict Hernandez, President and CEO of the Business Processing Association of the Philippines (BPAP), said the figures posted by the sector last year were higher compared to the 20% yearly projection, and bested the 10% to 15% predicted global figures. A 22% increase in jobs was also seen last year, with a total of 638,000.
For the five-year target, Hernandez said the industry is eyeing to reach $25 billion or 9% of the country’s GDP. Meanwhile, the BPO sector’s largest segment, call center operations, contributed 65% of the industry’s total revenues and grew 21% in 2011.

According to Hernandez, one of the key growth drivers for the segment is the strong support from the local government, specifically the P450 million budget for BPO-specific training programs by the Technical Education and Skills Development Authority (TESDA), as well as the support from the Department of Science and Technology (DOST) and Commission on Higher Education.


Business Automation Workshop And IM News

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IBPAP to Add more Areas to Next Wave Cities List

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More Philippine Cities as ICT Hubs

The Information Technology and Business Process Association of the Philippines (IBPAP) is planning to add more locations to the list of Next Wave Cities. These areas will be developed into information communication technology (ICT) hubs in hopes of further promoting the country as a viable destination for information technology - business process management (IT-BPM) services. During a press conference at the 1st IT-BPM Quality Summit, IBPAP Chairman Danilo Sebastian Reyes said they are looking at adding more locations to the list which will be announced soon.

Next Wave Cities are identified as areas outside of Metro Manila that can either readily accommodate ICT functions, or be developed into ICT hubs. The IBPAP and the Department of Science and Technology use a set of metrics (workforce, connectivity infrastructure, etc.) to analyze if a location is qualified to be included in the list of Next Wave Cities for business process outsourcing operations.

The provinces included in the latest list are Metro Naga (Naga and Pili), Metro Rizal (Antipolo, Cainta, and Taytay), Baguio, Davao, Dumaguete, Iloilo, Lipa, Metro Bulacan (Baliuag, Calumpit, Malolos, Marilao, and Meycauayan), Metro Cavite (Bacoor, Dasmariñas, and Imus), and Metro Laguna (Calamba, Los Baños, and Sta. Rosa).

IBPAP is eager to attract more potential investors through the new list of ICT hubs. They want to maximize each location’s potential to reinforce the competitiveness of the country.


Foreign Investors Optimistic on PH Growth

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Foreign traders recently stated that they remain optimistic on the growth prospects of the Philippines despite uncertainties brought on by the May national elections.

The country’s growing external trade, booming business process outsourcing (BPO) sector, and continuous influx of remittances have been noted by representatives of the British and German chambers of commerce.

Chris Nelson, President of Philip Morris Fortune Tobacco and Chairman of the British Chamber of Commerce, said traders are eyeing to invest on infrastructure and banking.

Moreover, the executive said the growth rates of the Philippines are impressive and British businesses are looking to sustain the growth.

Economic analysts predicted that the Philippine economy will grow by 6.5 percent this year, which is higher than the 5.8 percent growth posted last year.

Meanwhile, Charlotte Bandelow, Deputy Executive Director and Head of trade promotion at the German-Philippine Chamber of Commerce and Industry, said German businesses saw the positive changes carried out by the present government of the Philippines. These led to a stable economy and attractive investment climate. Furthermore, she pointed out that the trade volume between Germany and the Philippines amounted to P5.5 billion in 2015. However, she warned that the Philippines needs a “competent government” to remain on the right track.


Magento Developers For Hire: Finding the Best Magento Developers In Today’s Digital Space

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Recruitment Outsourcing in North America Posts 16% Growth

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Recruitment outsourcing grows 16%

New deal activity and decreased terminations fuelled the growth of the global Recruitment Process Outsourcing (RPO) market last year. It grew 16 percent, while annual spend is expected to reach US$1.8 billion.

Last year, North America became the dominant region for the RPO market. This is after a moderate performance in 2012, which then grew to 21 percent in 2013 - its highest growth rate in the last three years. Latin America likewise witnessed remarkable growth at 23 percent.  Meanwhile, Europe, Middle East, Africa (EMEA), and Asia-Pacific (APAC) experienced a moderate growth rate.

These findings were highlighted in the latest Everest Group report, Recruitment Process Outsourcing (RPO) Annual Report 2014 - Time to be Strategic.

Everest Group Vice-president Rajesh Ranjan said a lot of RPO contracts are nearing its expiration, and renewals are expected. During these renewals, clients have been found looking for providers that offer not only the in-demand services, but value-added ones as well. These include new ways to improve the quality of the talent pool, address employee-job mismatch, and new ways to collect and interpret data. He added that buyers should invest in strategic initiatives to develop the skills of employees. They should also capitalize on staff members who are experts in complex accounts and consider nurturing outsourcing relationships.


KPO Posts Steady Growth, Catching Up with Voice, Says Ibpap

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Growing Demand in KPO Fuels Growth

The voice-based sector used to account for 65 percent of the entire outsourcing industry of the Philippines, but it has dropped to 60 percent, which means that the higher-value knowledge process outsourcing (KPO) sector is catching up with the call center sector. According to Jose Mari Mercado of the Information Technology and Business Process Association of the Philippines (Ibpap), this tells us that both sectors are continuously growing.

However, Mercado said this steady growth of KPO does not mean that the industry will no longer offer voice-based processes. The country remains the top destination for call center work. He said the industry will still use this advantage.

Moreover, Mercado noted that while growth is seen on both sectors, the industry is not aiming for a balance in the percentage between KPO and voice-based services. It’s all about taking advantage of the growing demand. Also, he dismissed the misconception about one sector having more or "higher" value than the other. He wanted to utilize what the industry has and take advantage of the opportunities for growth.


BPO Vendors to Focus on Innovation, Process Improvement

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This year, business process outsourcing (BPO) vendors will concentrate on innovative approaches in operations and marketing, as well as process improvement. According to ValueNotes, a research institute, outsourcing vendors are focusing on innovation in order to boost productivity and reach their target customers.

It is expected that this year, the industry will see an increase in IT spending, emergence of Asia as a major outsourcing destination, large KPOs, multi-service, and shift from process innovation to marketing innovation. Also, large captives will fade away, but according to the research, some may downsize but will still retain operations.


Paradigm Shift of IT-BPO: From Optimization to Transformation

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BPO companies: from optimization to transformation

From optimization to transformation: Infosys BPO CEO and Managing Director Swaminathan Dandapani said the IT-BPO industry is undergoing a paradigm shift. Executives in the outsourcing industry said their clients think that transformation of business is the “most compelling” benefit of outsourcing.

In the International Outsourcing Summit 2010 held last month, Dandapani said clients expect their service providers to identify new business opportunities and improve processes, adding that IT-BPO companies must think about ways on how to increase clients’ revenues.

On the other hand, Everest Group Managing Partner (India) Gaurav Gupta said the Philippines needs to increase awareness that it can deliver more complex services, and must be promoted as a destination for transformative processes. “Companies view the Philippines as the world leader in voice BPO. What they don’t realize is that it is also a significant provider of non-voice, complex services.”



Chief Minister Says Ohio's Anti-outsourcing Move to Impact IT Industry

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Andhra Pradesh, India's Chief Minister K Rosaiah aired concern following the issuance of an executive order banning outsourcing of government IT and back office projects by Ohio Democratic governor Ted Strickland. Hyderabad, the capital of Andhra Pradesh, is home to more than 2000 software outsourcing companies that get contracts from the US and the UK.

�A majority of the world's top 500 companies outsource work to India, and a major part of it comes to Hyderabad. The Ohio ban is just the beginning. The US government is likely to cut incentives to companies outsourcing IT projects to India and more states and companies may decide against outsourcing. It would become difficult for the IT industry to survive here if outsourcing is banned,� Rosaiah said. He added that this anti-outsourcing move will have an effect not only to Andhra Pradesh but also India as a whole.


Gov't Official Calls for Stronger Alliances within Asia

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According to a Cabinet official, country members of the Association of Southeast Asian Nations (ASEAN) can be protected from economic turmoil of Europe and the US by reinforcing alliances within the region.

During the Credit Suisse ASEAN+India Conference in Singapore, Finance Secretary Cesar V. Purisima said "What is becoming very clear is that [for] countries like the Philippines and other members of ASEAN, we’ll have to look ... at how we can continue to pursue our growth strategy with domestic consumption within our own country, within ASEAN and intra-Asia."

Purisima highlighted that the region is becoming independent from advanced countries and that a part of the dealings are made within Asia, having US as the fifth trading partner - behind China and Japan.

Increased competition in the Philippine BPO space

Though India is responsible for only 2.5% of ASEAN trade, Purisima said that having an ASEAN engagement with India will be very crucial. He also said that the Philippines is heading in the right direction to strengthening partnerships with India. The Philippines is currently ranked third in the list of outsourcing destinations. “We’re seeing increased engagement of Philippine-based companies with Indian companies and Indian companies competing in the Philippine BPO space.” He added that there is a need to work together so both countries can take part in the direction the global economy is heading.


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Survey: Companies Innovate through Outsourcing

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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.

Incentives with outsourcing operations

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.


PH: 2nd to India in Global Outsourcing Market

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According to a report by consulting firm Tholons, India and the Philippines are still the prevalent hubs for business process outsourcing (BPO) worldwide.

PH second in Global Outsourcing Market

The firm’s report, which ranks the top 100 outsourcing hubs, showed that the top 8 cities can be found in the Philippines and India. Bangalore is still at the top spot, with Manila taking second place from Mumbai. Another city in the Philippines that made it to the top 8 is Cebu.

India’s edge was found to be its large workforce. In fact, it employed 2.8 million citizens in the BPO industry back in 2012, a far cry from the Philippines’ 750,000 in the same year.

In terms of revenue, industry body NASSCOM predicts that by 2020, India will generate $50 billion. The Philippines, on the other hand, is targeting $27.4 billion by 2016.

Meanwhile, the Philippines’ improving infrastructure and support from the government make it a stronger candidate in the outsourcing arena. It has a number of emerging cities for BPO, and 10 more are strongly considering developing their area to become outsourcing hubs.

Some of the Philippine cities that were included in Tholons’ list are Davao, which climbed one spot from 70th to 69th, Metro Laguna at 82nd from 84th last year, Bacolod at 93rd and Iloilo at 95th.


India to Discuss Outsourcing Concerns with Obama

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India to Express Outsourcing Woes with US President Obama

India will discuss the recent US anti-outsourcing moves with President Barack Obama in his visit to the country on November 5. This is according to India’s External Affairs Minister S.M. Krishna.

"There are some serious reservations being expressed about India's IT industry about outsourcing and the tightening of visa rules. These are the kind of issues that will be discussed," Krishna said. He added that there may be outsourcing issues between the two countries, but these will not affect their strong relationship.

A US bill was passed a few months ago, stating that visa fees for IT workers coming to the US will increase. This will have an impact on the outsourcing industry specifically those Indian workers who are transferred to the US. Meanwhile, Ohio Governor Ted Strickland issued an executive order that bans the transfer of government IT and back office projects offshore. 




Pres. Aquino Optimistic that PH BPO will reach $25B

by @ MicroSourcing.com News Feed

During President Benigno Aquino III's speech at the groundbreaking ceremony of a $50-million facility owned by Sutherland Services in Carmona, Cavite, he said the business process outsourcing (BPO) sector will post revenues worth $25 billion and provide 1.3 million direct jobs and 3.2 million indirect jobs at the end of his term in 2016.

Aquino thanked the BPO sector which plays an important role in the country's economic growth by providing employment opportunities to Filipinos. He added that his administration is improving the talent pool of the country. One of the initiatives is providing an Industry-based Training for Work Scholarship Program for those who want to enter the BPO workforce. The government had allocated half a billion pesos to this program. More than Php200 million have already been disbursed and through the Technical Education and Skills Development Authority (TESDA), the program was able to train almost 36,000 Filipinos.
The BPO sector posted $11 billion in revenues last year and was able to provide 640,000 direct jobs.

Sutherland Global currently employs 13,000 to 15,000 workers. The recently inaugurated facility has a capacity of 8,000 seats and is expected to provide 24,000 jobs.


Ovum Predicts Global BPO Revenue to Reach $93.4B in 2015

by @ MicroSourcing.com News Feed

Ovum predicts a $93.4B revenue for the global business process outsourcing (BPO) market in 2015, based on a compound annual growth rate (CAGR) of 5.4 percent and the $71.92B it reached back in 2010.

One of the key factors for the strong developments in global BPO is the active participation of emerging economies such as India and China � countries that are showcasing the benefits of BPO. Ovum also stated that from the end of 2010 to the end of 2015, the BPO market of Greater China will grow at a CAGR of more than 16 percent, while India's market will post a 15.7 percent increase.

Ovum analyst Hansa Iyengar said outsourcing enables companies that try to reduce costs to invest in people who will manage non-core business functions. This process cuts costs and increases efficiency. They now have more time to work on their core processes. Enterprises also learned that aside from back office functions, they can also outsource human resources tasks, engineering, design, as well as research and development. Iyengar added that developed economies will be the ones that can take advantage of these new BPO sectors.

She also noted that vendors need to focus more on pricing contracts as these are important during negotiations. Businesses tend to spread out their investments, and small and medium-sized companies are now open to outsourcing. Service providers need a plan to meet the requirements of clients. There is a need to offer outsourcing solutions that can be customized and are low-cost and very scalable.


PH BPO to further Improve Talent Pool

by @ MicroSourcing.com News Feed

The Philippines to train 1.1 Million Filipinos for BPO

With the rising threat to the Philippines’ position as a leader in the global business process outsourcing (BPO) industry, the country is set to reinforce its talent pool by training at least 1.1 million Filipinos.

According to Jose Mari Mercado, President and CEO of the Information Technology and Business Process Association of the Philippines (IBPAP), training programs will be done with the help of public and private partnerships.

Mercado added that these efforts are designed and expected to improve the capabilities of the country so that more Filipinos will have the option to stay and work locally, rather than find opportunities abroad.

In 2012, the local BPO sector accumulated 13.2 million in revenues from voice and non-voice segments of outsourcing and employed 777,000. For 2016, the sector aims to reach $25 billion.

For countries like the Philippines and India, information technology-business process management (IT-BPM) had influenced the reduction of poverty and nationwide growth. Both countries are the leaders in voice and non-voice process outsourcing in Asia.


Everest Study: Enterprise Crowdsourcing Offers 70% Cost Advantage

by @ MicroSourcing.com News Feed

Large businesses to use enterprise crowdsourcing instead of traditional BPO

The results of the study “Every Crowd Has a Silver Lining” done by Everest Group and Lionbridge Technologies, Inc. (Nasdaq: LIOX) showed that more and more large organizations are inclined to use crowdsourcing instead of traditional business process outsourcing (BPO) for its cost reduction features, flexibility, and provision of access to a more diverse talent pool.

Other vital results of the study are:

• Companies use the ‘private crowd’ model for processes like content localization, support for the shift from traditional BPO, and more.

• It provides more economic advantages - around 70 percent compared to traditional outsourcing.

• Companies enjoy reduced costs in labor and recruitment as crowdsourcing enables them to gain access to talent more quickly.

• Contracts that have been using crowdsourcing for quite some time gain additional perks from third-party service providers like quality assurance and management infrastructure.

The report also stated that crowdsourcing is also applied to almost 50 percent of processes that are related to products and manufacturing.

Sarthak Brahma, Practice Director, Pricing Assurance, Everest Group said crowdsourcing is a new wave method of using global professional services for new processes and is almost as cost-effective as traditional BPO.

Enterprise crowdsourcing is perfect for companies that have large staffing requirements. It enables companies to make use of a variety of talents from pre-qualified workforce to “private crowd”.  In line with that, the managed service providers see to it that clients are able to maximize the benefits of crowdsourcing.


Local BPO Body Optimistic on 2016 Growth Projections

by @ MicroSourcing.com News Feed

During the ICT Awards last March 13, Gillian Joyce "Gigi" Virata, Senior Executive Director of the IT-Business Process Outsourcing Association of the Philippines (BPAP) said for the 2016 onwards, a 15-percent growth for the information technology-business process management (IT-BPM) of the Philippines is achievable.

The official cited the global study done by KPMG a few years back which was based on a longer term outsourcing trend. The study is in line with the timeframe of the current BPO roadmap, which ends in 2016. It further stated that a 15-percent growth rate is feasible starting 2016.

However, she said they would first need to validate the figures since high-value technical services are now being offered by the local outsourcing industry. She added that these things are crucial, particularly because of factors such as global environment which can affect the growth rate.

The 15-percent annual growth for 2016 onwards may be deemed slower, but this is normal because the base is already high.

Meanwhile, BPAP is working on plotting the 2020 Roadmap for the IT-BPM sector of the Philippines.

The 2016 roadmap is eyeing P25 billion in revenues and 1.3 million jobs.


Outsourcing Executive: PH has the Best Talent in Asia

by @ MicroSourcing.com News Feed

Firms Believe the Philippines is the best Outsourcing Hub

According to the Managing Director of Shore Solutions, Darcy Lalonde, the Philippines is considered as one of the best outsourcing hubs because of its human resources and sound business environment. The Filipino workforce is said to have the commonly preferred traits such as great English-speaking ability, proper work ethic, and loyalty.

Moreover, he said the Philippines is the only country in Asia that offers affordable business solutions and high-quality human resources and it will only take 30 to 60 days to get an operation up and running, as long as clients contract with reliable experts and advisers.

Lalonde expected that foreign investors will continue to patronize the Philippines because of its welcoming environment. He noted that even if Malaysia and Singapore outgrew the Philippines over the last 10 years, the latter is now regaining traction and is becoming one of the key countries for investment opportunities.

A report from Bangko Sentral ng Pilipinas indicated that inflow of foreign direct investments grew to $1.3 billion during the first quarter of 2013.

Tourism, manufacturing, business process outsourcing (BPO), and health and wellness are cited as the sectors that will continue to benefit from foreign capital investments.


BPO, OFW Remittances Strengthen PH Peso

by @ MicroSourcing.com News Feed

The Bank of the Philippine Islands (BPI) recently projected that the country's currency will remain resilient at P42 to US$1, averaging at P42.777 during the first few days of March and has recovered from the lowest valuation at P43.619 last January.

According to BPI's Asset Management Group Head Tere Javier, increasing investments on the emerging markets in the Philippines, remittances from eight million Filipinos who are working abroad, and earnings from the business process outsourcing (BPO) industry are the factors that keep the peso strong. In fact, the projection of P42 to P42.30 per US dollar is reinforced by the BPO sector's continuous growth and five percent increase in OFW remittances.

In the four-point investment theme of BPI for 2012, emerging markets are expected to fuel global growth and remain fund generators. The economy will be able to overcome challenges, though there will still be market volatilities as a result of geopolitical issues.

Javier said remittances for this year will be $21.1 billion. This is five percent higher than figures posted in 2011. On the other hand, earnings from BPO will increase by 19 percent reaching $13 billion. Healthcare, finance and accounting, human resources, animation, and creative services are seen as some of the growth areas in the BPO industry.


Healthcare Outsourcing Sees 74% Employment Growth

by @ MicroSourcing.com News Feed

With the country's growing number of healthcare professionals, the Healthcare Information Management Association of the Philippines (HIMAOP) forecasts a 74 percent growth for the number of full-time employees (FTEs). Job opportunities in the healthcare outsourcing sector are anticipated to be alternatives for the oversupply of nursing graduates and other clinically trained professionals, which in turn can help the industry acquire 100,000 FTEs by 2016.

HIMOAP's target is 43,000 FTEs by the end of 2012, and as of 2011, 24,700 are already employed in the sector.
Myla Reyes, TTSI Managing Director, said increased spending activity for healthcare was observed in other countries due to reforms that are believed to introduce high-tech solutions and ensure coverage of members. This leads to more prospects, as well as challenges for the health information management (HIM) outsourcing bodies.

HIMOAP explained that HIM outsourcing simplifies real-time healthcare processes and crucial healthcare decision-making in a multi-faceted institution, by way of organization, maintenance, documentation, and analytics of health information. Moreover, it is a way for medical institutions to reduce costs and optimize processes.

Meanwhile, Katheryne Gutierrez, Vice-president for Clinical Quality and Compliance at MediCall Philippines Inc., said HIM outsourcing is a great opportunity for medical and clinical professionals to apply their knowledge and skills. She added that the healthcare outsourcing sector enables them to broaden their range of service since they will be reaching out to other cultures across the globe.


BPAP Predicts Higher Revenues for Software Outsourcing Sector

by @ MicroSourcing.com News Feed

According to the Business Processing Association of the Philippines (BPAP), the revenues of the country’s software outsourcing industry will rise in 2013 due to an increase in market demand.

Meanwhile, the industry currently has a 27% growth rate, said Nora K. Terrado, President of Philippine Software Industry Association (PSIA). Terrado added that the 30% year-on-year target in 2013 will result to an increase of $1.5 billion in revenues and a 25% growth in employment which will reach about 80,000 personnel.

Software Outsourcing

In 2011, the local software industry grew 27%, with $993 million in revenues and 50,000 employees.

Other growth contributors identified by PSIA Director Tae Abe-Abion are Filipino innovations such as marketing efforts to promote the country as software and ITO (information technology outsourcing) destination, as well as the large qualified workforce.

In line with that, BPAP Chief Executive Benedict C. Hernandez cited the software outsourcing sector as one of the key contributors of the local outsourcing industry. Hernandez added that the Philippine software sector is gaining foothold in the global market and that the robust growth of the segment indicates its capabilities in a rapidly developing market.


BPAP Promotes �Work Abroad. Live Here� Career Portal

by @ MicroSourcing.com News Feed

The Business Processing Association of the Philippines (BPAP) recently launched the career portal called �Work Abroad. Live Here� (http://www.workabroadlivehere.com). This is a new campaign which targets 517,000 fresh graduates, young professionals, and job seekers who may want to enter the business process outsourcing (BPO) workforce. This is in line with their efforts to reach the jobs target of 1.3 million by 2016. It is also a way to showcase various opportunities that the IT-BPO sector has to offer.

According to BPAP President and CEO Benedict Hernandez, applicants do not usually know where to look for job opportunities. The career portal is created to help job seekers find jobs that are suitable for their knowledge and skill set. It also enables candidates to work for global companies without having to leave the country. They no longer have to go overseas to provide for their families.  

The website covers various segments of the IT-BPO industry. Hernandez said there are available jobs for animators, game developers, IT professionals, software developers, financial analysts, accountants, and even doctors and nurses. He added that IT-BPO centers in outsourcing hubs outside Metro Manila are also looking for candidates who can fill job positions for voice-based and non-voice processes.

The �Work Abroad. Live Here� website is managed by TeamAsia, a marketing communications company, and was developed by Cloud Sherpas.


PH Government Pledges Support to BPO Industry

by @ MicroSourcing.com News Feed

In the recent CEO briefing organized by the Information Technology and Business Process Association of the Philippines (IBPAP) and Outsource2Philippines (O2P), Budget Secretary Florencio Abad said the Aquino administration will do the best it can in helping the booming business process outsourcing (BPO) industry of the Philippines.

He noted that the local BPO industry has contributed immensely to the economy by breaking ground for improvement and growth. Moreover, the industry posted impressive figures, contributing $13 billion in revenues last year. This is an 18-percent increase from the $11 billion posted in 2011. Also, it has become beneficial to sectors such as real estate, telecommunications, and food and beverage services.

On the other hand, challenges such as talent shortage, new competitors in the business process management (BPM) segment, and valuation of the peso threaten the growth of the BPO industry, according to IBPAP Senior Executive Director Gilian Virata.

Nonetheless, the industry will stick to the $16 billion revenue target for 2013.


Call Center Sector still Top Revenue Earner for RP BPO

by @ MicroSourcing.com News Feed

The National Statistics Office (NSO) reported that the call center sector is still the no. 1 revenue generator for the business process outsourcing (BPO) industry of the Philippines.

Call center sector registers P56.7B in revenues

Based on the initial results, call centers registered P56.7 billion in revenues in 2006. This comprised 70 percent of the gross revenues of the country’s BPO sector which reached P81.8 billion. Meanwhile, the software and consultancy sector hit P11.1 billion in revenues, software publishing with P5 billion, data processing with P4.8 billion, and hardware consultancy registered P28.3 million.

This is amidst the problem of not having enough qualified workers to meet the demand. “Although the lack of qualified people is still a major concern in the BPO industry, I am confident the private sector can craft the solutions,” said LiveIt chief executive officer Alfredo Ayala. The Business Processing Association of the Philippines (BPAP) is initiating programs such as Advanced English Pre-employment Training to equip potential BPO workers. 


Filipinos, BPOs to Benefit from SEA-US Cable Link

by @ MicroSourcing.com News Feed

Improved Internet Connection through SEA-US Cable Link

According to Globe Telecom Inc., one of the major telecommunication companies in the Philippines, the $250-million Southeast Asia-United States (SEA-US) cable link will be advantageous for Filipinos and business process outsourcing (BPO) companies in the country.

Gil Genio, EVP and COO at Globe, said the project will give Globe the leverage and ability to provide excellent connectivity services for consumers and organizations, specifically ones that have tie-ups in the US. He added that it will benefit the business process outsourcing sector, large financial institutions, and other companies that operate in a global scale, especially now that the Philippines has stepped up to the plate as one of the preferred destinations of investors.

The submarine cable link worth $250-million is a project of global telco companies. It will be connecting Southeast Asia and the US by the fourth quarter of 2016. Other companies included in this project are PT. Telekomunikasi Indonesia International (Telin), RAM Telecom International, Hawaiian Telcom, Teleguam Holdings GTI Corp. (a member of the Globe Telecom group of companies), and Telkom USA. System suppliers of the project are NEC Corp. and NEC Corp. of America.

The areas that the SEA-US cable link are set to link up are Manado in Indonesia, Davao in Southern Philippines, Piti in the Territory of Guam, Honolulu on the island of Oahu in Hawaii, and Los Angeles in California.



PH BPO Industry Predicts 2011 Revenues will Reach US$11bn

by @ MicroSourcing.com News Feed

The Philippine business process outsourcing (BPO) industry aims to hit the US$11 billion revenue mark for 2011. Business Processing Association of the Philippines (BPAP) President Oscar Sa�ez said this will be equivalent to about 110,000 new job opportunities this year.

Sa�ez said BPAP will continue to promote the industry by tapping US, European, and Australian markets. "We have to increase the awareness of our potential employees of job opportunities in IT and BPO companies, including those in the knowledge process outsourcing and other non-voice sectors."

BPAP also supports the K+12 program (adding a Grade 7 in elementary and 5th year in high school) proposed by the Department of Education to improve the quality of education in the country and address the recruitment issues that the BPO industry is currently facing. Moreover, Sa�ez urged the Congress to work on the amendments in the current Labor Code, data privacy problems, as well as the passage of the cybercrime bill.


Most Multinational Firms Outsource IT, Study Shows

by @ MicroSourcing.com News Feed

Survey Says: Partial IT Outsourcing Rising

Out of more than 600 IT decision makers from different multinational corporations surveyed by Orange Business Services, 93 percent said they are doing partial outsourcing or out-tasking projects. Data center-related tasks comprised 30 percent of projects being outsourced, followed by desktop management (14 percent) and data networks (14 percent).

Survey results also reveal that the top reason why multinational firms outsource projects is to gain access to specialized IT skills. This is followed by cost savings, while the third reason is to improve service delivery to end users.

When asked about the factors that hinder them from outsourcing, 65 percent of respondents answered “loss of control”, while security concerns ranked fourth. The firm said this shows that companies are “now focused on the more practical issues around moving to an outsourced model”.

According to Eric M.K. Ng, Vice-President, Global Communications Solutions, Asia Pacific, Orange Business Services, these results are very encouraging when it comes to the way companies view the outsourcing model. "Decision-makers clearly understand the benefits such models bring and have moved on from concerns around security and are now focused on ensuring that any investments realize not only the cost savings, but also the knowledge transfer promised by third party providers."


Growth Outlook for PH Economy Raised

by @ MicroSourcing.com News Feed

Export Expansion, Construction Pushes Increase in PH growth Forecast

The Philippine economy is predicted to post a 6.7 percent growth this year, according to the International Monetary Fund (IMF). However, even if the growth prediction is marginally higher than the previous estimate of 6.6 percent, it is still lower than the growth target eyed by the local government.

IMF released a statement after its recent event “Mission to the Philippines”, saying the slight increase in the 2015 growth outlook is caused by strong private construction, export expansion, low commodity prices, and increase in public spending. In addition to that, IMF expects inflation to stay at the lower end of the Bangko Sentral ng Pilipinas’ (BSP) target range (2-4 percent), due to lower commodity prices. Also, the nation’s account surplus is seen to strengthen since the price of oil is lower, and earnings from the business process outsourcing (BPO) sector, tourism, and remittances remain strong.  

However, IMF noted that risks to inflation outlook will be caused by external and domestic pressures. For instance, disruptive asset price shifts in financial markets due to varying monetary policies in developed nations are considered threats, but the strong fundamentals of the Philippines provide adequate buffer to the impact. Moreover, external demand could be weaker should key emerging markets face deflation threats and lower potential growth.

The IMF also pointed out that the BSP’s efforts of reducing risks to financial stability, which include the real estate exposure of banks, have been successful and in fact contained liquidity and credit growth.
As for the Philippine government, growth projections are set at 7-8 percent this year, from 6.1 percent in 2014.



16 Content writing tasks are most commonly outsourced by SEOs / Marketers

by Mohnesh Kohli @ Mohnesh Blog

Content writing outsourcing is common practice in digital marketing industry. It is a popular option to outsource content creation to freelancers and agencies by a small and medium size organisation which cannot offer full time experts content  writers  to write on complicated, specialist or technical topics. However  big brands and large organizations do not prefer […]

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Zen Cart SEO Services

by positron @ Outshine Solutions Pvt. Ltd.

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IT Outsourcing in Europe �not working�

by @ MicroSourcing.com News Feed

IT Outsourcing Services from India Ineffective in Europe

A recent survey conducted by Forrester Research indicates that outsourcers in Continental Europe feel the outsourcing model utilized by Indian IT service providers is “not working”. The survey was conducted during the last quarter and the first month of this quarter. A large portion of the firms surveyed indicated that they sourced hardware, software and people from different locations. 60% of the firms, however, said they still outsource to companies in India. Principal Analyst of Forrester Research, Sudin Apte, commented on their findings:

“Although Europe offers a lucrative opportunity, the success rate for Indian companies has been low and ramp-up of operations has been slow.”
The majority of the outsourcing firms surveyed said they did not expect IT budgets to be any cheaper in the UK, France and Germany – with “even fewer” considering India as an offshoring option.

The study by Forrester research cites a “highly federated decision making process”, complex procurement processes, and language barriers as the major challenges outsourcing service providers face in Europe.

“Most companies in Europe are more pan-European than global,” said Apte. “Many Indian IT companies confuse cultural compatibility with local presence.”  




White Hat SEO: Make Informed Decisions on Your SEO

by admin @ SEO Brothers

There seems to be a lot of confusion surrounding the “hat” terms with respect to organic search. The purpose of this post is to give a high level overview of what’s involved with white hat seo and compare it to other tactics and strategies that are available. Before diving in, we should clarify that white…

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Change Client Mindset About SEO To Gain More Business & Client Satisfaction

by Faiz Ahmed @ Design and Rank

We handle many, many SEO campaigns, as you can probably understand from our customer list, but most of the time, apart from getting it ranked, we face two perception challenges. … Read more

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BPO Leads Office Space Occupancy in Manila

by @ MicroSourcing.com News Feed

According to Pinnacle Real Estate Consulting Services Inc., a firm that specializes in properties for buyers, lenders, and investors, developers are working double-time to sustain office demand in popular business districts in the Philippines. This is because majority of occupants, specifically from the business process outsourcing (BPO) sector, are rapidly leasing offices.

Meanwhile, office real estate developers are predicted to achieve 94-98 percent occupancy rate because of the support from the BPO sector.

The firm's report also stated that builders and investors are considering renovating old buildings, and reintroduce these to the market.

At present, the premier office locations are still Bonifacio Global City (BGC) and the Makati Central Business District (CBD). Taguig City, Ortigas Center, and Quezon City, on the other hand, are feasible options.

Pinnacle noted that office rent in BGC rose as demand has gone to an overdrive. As for Makati, investors are still keen on starting operations since majority of larger companies, as well as call centers, operate in the area. Moreover, the firm said it is beneficial for BGC and CBD to be near each other so foreign locators will not have a hard time starting up integrated operations.


Choosing The Right WordPress Template For SEO to Obtain High Rankings

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One of the many benefits of WordPress is that you have a plethora of templates to choose from. With these templates, you can set up your website much more easily, and incorporate the features and look you wish. But there’s a catch. Sometimes it’s hard to pick just one template, especially when you’re also taking […]

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7 Tips On Starting A Blog

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Now Let's Get Started Are you in New York City and thinking of starting a blog? If so, then go for it and don't procrastinate. Blogging is a good SEO strategy and if you need help, then you should work with the best New York City SEO agency. However, you will want to think about [...]

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PH Economy Seen to Reach the $-trillion Mark in 2030

by @ MicroSourcing.com News Feed

According to Rajiv Biswas, Chief Economist at IHS Asia-Pacific, the Philippines - formerly known as "the sick man of Asia" - is well on its way to becoming one of the top three players in the Southeast Asia region with an economy worth trillions of dollars in 2030.

The growth is expected to be driven by factors such as the information technology-business process outsourcing (IT-BPO) sector and dollar remittances from an estimated 10 million overseas Filipino workers.

Biswas shared in a statement before the inauguration of the World Economic Forum on East Asia meeting in Manila that the Philippines has improved tremendously over the last decade. The executive added that the Philippine economy is capable of growing 4.5-5 percent annually for the 2016-2030 period. At present, the Philippine economy is worth $280 billion, and with the growth rate projections, it can transform into $680 billion in 2024, and a GDP of $1.2 trillion by 2030.

However, Biswas advised that the country has to work on the business environment and other industries such as tourism and manufacturing to attract more investors.


Survey Reveals Slow IT Outsourcing Growth in Europe

by @ MicroSourcing.com News Feed

IT Outosurcing Growth Dwindles in Europe

According to the recent survey by sourcing consultancy firm Equaterra, the demand for IT outsourcing in Europe registered a slow growth rate of five percent in the second quarter of 2010.

Compared to 45 percent in the first quarter, only 40 percent of global sourcing advisers surveyed believed that the demand for IT outsourcing in Europe had increased. Moreover, 55 percent (36 percent in the first quarter) said there is slow activity in the economic environment, making business owners think twice about their outsourcing plans.

BPO demand, IT outsourcing and services, and internal process improvements were some of the factors that were considered in this survey.



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Swedish Companies Eyeing PH BPO

by @ MicroSourcing.com News Feed

Apparently, firms in Sweden are fascinated with the bullish business process outsourcing (BPO) sector of the Philippines.

Swedish investors to target Philippine BPO sector

During the recent trade briefing for Swedish delegation in Makati, Carl Malmqvist, manager of the Malaysia office at Business Sweden (the Swedish Trade and Invest Council), said more investors from Sweden will flock to the country in the coming years, and majority will be targeting the BPO sector.

Malmqvist added that among the countries in the ASEAN region, the Philippines slightly stands out as it is service-oriented, unlike its counterparts which are industry-oriented.

Manila recently took the 3rd spot and surpassed Delhi, India, as the most preferred BPO destination. Furthermore, the study done by Everest Group and Outsource2Philippines predicts that by 2016, the industry will employ 862,000 Filipinos and revenues from call center operations will reach $14.7 billion.

Meanwhile, Malmqvist recounted that four years ago, only large companies like Ericsson knew about the Philippines. But recently, SMEs are starting to pay more attention, which he predicts is where growth will come from.


RP BPO Poised to Exceed 2010 Revenue Goal

by @ MicroSourcing.com News Feed

The business process outsourcing (BPO) sector of the Philippines will likely hit the $9 billion revenue mark this month or in October, and may even close the year with revenue of almost $10 billion. This is according to Commission on Information and Communications Technology (CICT) Chairman Ivan Uy.

The BPO sector currently employs about 500,000 workers. Uy said this can increase to 600,000 by the end of this year. �All are going up, including the animation industry, the health information management system, software industry and the traditional voice and non-voice that we already have strong presence in,� he added.

Initially known as a leading destination for call center work, the Philippines is now seen to emerge as a major outsourcing location for non-voice business processes.


Manila posts $6.2b account surplus despite crisis

by @ MicroSourcing.com News Feed

The central bank reports that the current account surplus in 2009 totaled $6.2 billion due mainly to income from foreign investments in the business process outsourcing (BPO) and tourism sectors. The surplus was recorded despite the global financial crisis and is a stark contrast to the $4.9 billion deficit posted in 1997 at the start of the Asian currency crisis, Manila Standard Today said. 

According to Bangko Sentral Deputy Governor, Diwa Guinigundo, the total marks a 48 percent increase from the $4.2-billion surplus recorded in 2008 - up 3.8 percent from the gross domestic product of the same year.

The Philippines suffered a merchandise trade deficit of $4.09 billion throughout the majority of 2009 but that was offset by the $7.3 billion in revenue from the business process outsourcing (BPO) sector.  

According to the Toursim Department, the surplus was supplemented by tourists infusing $3 billion to $5 billion in receipts yearly.

The peso is expected to trade at 46 to 48 against the dollar this year as a result of the account surplus.



MicroSourcing to Focus on Outsourcing Solutions for SMBs

by @ MicroSourcing.com News Feed

Customized Outsourcing Solutions for SMBs

As a response to the specific requirements and challenges of small and medium-sized businesses (SMB), MicroSourcing, a premiere Philippines-based outsourcing solutions provider, will concentrate on providing customized outsourcing services to the SMB client segment.

“The outsourcing industry still seems to revolve around large providers providing solutions to large clients. This leaves a wide open marketplace for small to medium-sized solutions designed for small to medium-sized businesses,” says Philip Kooijman, General Manager of MicroSourcing. “SMBs are perfect clients in many ways. The deals are typically smaller in size and therefore much easier and quicker to close. The client is typically highly involved with the day to day operations which makes it a very personal engagement where the client, their offshore staff, and their contacts at MicroSourcing work together very closely. The benefits of offshore outsourcing can furthermore have a huge impact on the success of a small business. It can give them the manpower flexibility they need in their start-up and growth phase and it can provide them access to highly skilled professionals whom they might not be able to afford or attract in their domestic markets. The money saved by outsourcing part of their operations can be used to increase the client's marketing and sales efforts which are crucial as they try to grow their business.”

The success of penetrating this client segment relies on service delivery models specifically designed to meet the needs of SMB clients. Any service provider targeting the SMB market will need to be flexible enough to take on small projects and properly manage them.

MicroSourcing aims to offer various delivery models that are easy to understand and small enough in size that small businesses can give them a try without making any large scale commitments. “For the smallest projects, we will typically use our own staff and simply charge the client per hour, per deliverable or for the project as a whole. The most powerful SMB solution we have is offshore staff leasing whereby we enable them to have one or more handpicked employees work for them exclusively. In this way, a small business can start up a small, low-cost operation in the Philippines. Our website has a solutions finder that will aid companies in finding their perfect service delivery model within a minute. In general, our value proposition for SMBs is really great but the challenge will be to reach these companies and make them understand what outsourcing could mean for them,” Mr. Kooijman added.

BPO, Remittances to Remain Key PH Economic Drivers

by @ MicroSourcing.com News Feed

PH's Gross International Reserves Backed by Remittances and BPOs

Citi, a renowned global financial institution, anticipates that the drop in the Philippines’ foreign exchange reserves last January will be restored by the bullish business process outsourcing (BPO) sector and remittances from overseas Filipino workers.  

According to Jun Trinidad, an economist at Citi, the continuous growth of the IT-BPO sector and remittances will carry on in supporting the gross international reserves (GIR) of the country. However, he said outflows for unwinding portfolio positions, external debt repayments, among other things remain a challenge.

The economist cited the sharp drop of the Philippines’ GIR from the $83.187 billion recorded in December, to $78.939 billion last month.
He further explained that last year, GIR stock decreased by $644 million even as revenues from BPO operations and remittances were strong. Last January, it fell by $4.2 billion - the largest decline in a month’s time.

Data from Central Bank showed that 2013 experienced the highest annual record for remittances with $22.76 billion, a 6.4 percent jump from the $21.391 billion posted in 2012.

On the other hand, IT-BPO revenues grew by 17 percent to $15.5 billion in 2013, which is a sign that they’re on target in achieving the $20 billion goal by 2016.


BPO Firms View RP's Negative Publicity as Risk Factor

by @ MicroSourcing.com News Feed

In a survey conducted by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) with BPO executives as respondents, results show that the negative perception of the country is a significant risk factor when it comes to outsourcing business operations to the Philippines.

Fifty-one percent (51%) of respondents viewed negative publicity as either level one, two or three risk factor, with 20% ranking it as level one.

Another factor that poses a threat to the BPO sector is the tight labor market. Forty-nine percent (49%) ranked the increasing insufficiency of knowledge workers as either a top concern, level two or level three risk factor.

Executives still think that the BPO industry will thrive despite these risk factors. In fact, BPAP Chief Executive Oscar Sa�ez said in a statement that the industry is on its way to reaching 20% growth rate this year.


India Regains some Call Center Services from PH

by @ MicroSourcing.com News Feed

India lost 50% of Call Center Operations to the Philippines

It is a known fact that India was the one to beat in the call center outsourcing segment. But when the Philippines took over the top spot, India had a hard time recovering from its losses, with the lack of cultural affinity and neutral accent in the largest voice market - the US.

In a study done by the Associated Chambers of Commerce and Industry in India, it was reported that India lost more than 50 percent of its call center operations to the Philippines.

Meanwhile, a report from research firm IDC stated that the business process outsourcing (BPO) market in the US is projected to grow at a CAGR of 4.3 percent, and by 2017, it will be valued at $97.3 billion.

However, growth of voice services in the Philippines may soon slow down as it continues to face attrition, lack of manpower, etc.

Proof of the movement between these countries is the transfer of 600 jobs from the Philippines to India because the employees in India are better at upselling services. Companies such as Telstra are bringing back operations to India because of the skilled sales people - further proof that India is a feasible player in the voice outsourcing segment and work will slowly start coming in.

Also, different types of platforms such as email, social media, and chat are being integrated by multinational companies. These are eliminating constraints for India in terms of offering "purevoice" services.


Sky News Australia Interview

by @ MicroSourcing.com News Feed

General Manager of MicroSourcing - Australasia discusses what Australian SMEs can gain from offshore outsourcing

For Australian businesses, here are the benefits of setting up operations in the Philippines.

Strong IT Outsourcing Activity Seen in the EMEA Region

by @ MicroSourcing.com News Feed

According to the Q3 2014 EMEA ISG Outsourcing Index, a study that covers deals with an annual contract value (ACV) of �4 million (�3.3 million) or more, discovered that ACV throughout EMEA reached almost �7 billion (�5.8 billion) even though the third quarter experienced a slowdown. It also found that during the past decade, this is the third highest year-to-date total so far.

In a statement, John Keppel, a Partner at ISG, said 2014 was a promising year for the EMEA market, leaving a positive outlook for the rest of the year. This could make 2014 one of the strongest - if not the strongest - years within the past 10 years.

Increased activity in Spain, Italy, and Southern Europe resulted to an ACV of �0.74 billion, the highest so far. Also, ACV in France amounted to more than �1 billion during the first three quarters, which is an increase of over 250 percent during the same period in 2013.

On the other hand, over the past five years, UK remains the largest and most mature outsourcing market in EMEA. Compared to the previous quarter, the UK's ACV climbed 120 percent, and the number of deals grew 48 percent. However, UK values and contract numbers did not reach 2013's third quarter figures.

During the first three quarters of 2014 throughout EMEA, ACV increased 15 percent compared to the first three quarters of 2013. As for the number of outsourcing contract deals, EMEA's contract volume reached an all-time high during this period.


PH, an Established Regional IT-BPM Hub

by @ MicroSourcing.com News Feed

The Philippines Cited as an Established Outsourcing Hub

During the recent CeBIT (Centrum für Büroautomation, Informationstechnologie und Telekommunikation) Fair, a premier global trade fair and event to promote IT services held in Hannover, Germany, the Philippines was cited as a sustainable investment destination for information technology and business process management (IT-BPM) by the country’s major providers. They also promoted the capabilities of the Filipino workforce. This is on top of the Philippines’ continuous robust growth in the last five years, which further reinforces its position in the global IT-BPM industry.

The Philippines’ strengths in the electronics sector, a key contributor to the Philippine economy, were also underpinned at the event. It is responsible for 49.3% of the total Philippine exports (US$28.9 billion) in 2015.

The IT-BPM industry of the Philippines earned $22 billion and created 1.2 million full-time jobs last year. This year, the sector is seeking to surpass the revenue figures and is targeting to hit $25 billion in revenues and create 1.3 million direct employment opportunities.

The Philippines’ economic blueprint called Comprehensive National Industrial Strategy (CNIS) identified the overall development strategies for the IT-BPM, manufacturing, agribusiness, tourism, and infrastructure and logistics sectors. These are deemed as pillars in sustaining the economic growth of the country.

CeBIT is one of the acclaimed platforms for global ICT companies to explore opportunities and partnerships through exhibitions, global conferences, and networking events. This year, the CeBIT in Hannover attracted 100,000 visitors with more than 3,000 exhibitor companies from 70 countries.


Moody's Affirms Philippines' Baa2 Rating, Stable Growth Outlook

by @ MicroSourcing.com News Feed

Moody's Investors Service affirms the Philippines' Baa2 long-term issuer and senior unsecured debt rating and maintains a strong and stable growth outlook.

It cites the country's economic performance and continuous debt consolidation as positive factors that will further converge key fiscal metrics versus corresponding peer medians.

On the other hand, developments in domestic politics pose challenges to the institutional strength and the economy's positive trend in performance. There are also constraints seen in material capacity despite a stable macroeconomics.

Strong growth outlook

Between 2014 and 2016, the Philippines had an average of 6.4% real GDP growth, which is more than twice the corresponding median for Baa2-rated countries. Over the next two years, Moody’s expect an above 6% growth per year, which will largely come from the private sector.

A young population will be key in private consumption growth stability. Overseas Filipino workers (OFWs) will maintain stable remittances to support household consumption. The business process outsourcing (BPO) sector, which comprises the bulk of services exports, will continue to improve the external environment.

Improved government spending, particularly in infrastructure development, is seen to achieve the target range of 7%-8%.

The Baa2 rating reflects the country's high economic strength, which balances its large scale and rapid growth against low per capita income compared to its peers.

Moody's assessment reveals that the Philippines' institutional strength is drawn from a long track record of sustaining macroeconomic and financial stability, despite weaker Worldwide Governance indicators as compared to other investment grade countries.

In addition, the government's fiscal strength also reflects low government debt relative to most Baa2-rated peers, as well as low debt affordability and elevated vulnerability to exchange rate depreciation. These indicators have shown significant improvement in the last 10 years. Furthermore, the country's susceptibility to even risks is reduced by a healthy banking system and its external payments position.


Industry Leaders Lobby for Data Privacy Act

by @ MicroSourcing.com News Feed

BPAP Pushing for Data Privacy Act Approval

The External Affairs Director of the Business Processing Association of the Philippines (BPAP), Martin Crisostomo, said the Data Privacy Act or Senate Bill 2965 was recently passed but needs to be approved by the President so that the business process outsourcing (BPO) industry can start utilizing it to expand operations and attract investors.
Having a law that strengthens data privacy and security will reassure existing BPO firms that the industry will continue to grow and that clients will start coming in, knowing that there is a law in place that will protect their data. Information and Communications Technology Office (ICTO) Executive Director Louis Casambre said the bill will indeed help in attracting more businesses in the IT-BPO industry.
Senator Edgardo Angara, author of the bill, said once the bill becomes a law, current revenue estimates can grow from $9 billion in 2011 to $25 billion by 2016 and the number of workers employed in the industry will increase in the next few years. He added that a secure data and information environment can help the country transition from traditional services to high-end processes such as engineering, finance, accounting, and healthcare.

A National Privacy Commission is also expected to be created after the passage of the Data Privacy Act. This will be responsible for monitoring personal information controllers and maintaining data security.


How to Get an ROI from SEO

by Nathan Gotch @ Gotch SEO

The acronyms “ROI” and “SEO” don’t often go together in the agency world. I’ve been guilty of focusing on SEO-driven KPIs such keyword rankings, backlinks, and organic search traffic. But here’s the truth: Businesses only want one thing… RETURN ON THEIR INVESTMENT. When they invest $24,000 into a SEO campaign, they want MORE than $24,000 […]

Healthcare BPO: Fastest-growing Segment in PH

by @ MicroSourcing.com News Feed

Healthcare Outsourcing Growing Rapidly in the Philippines

The healthcare information management services-business process outsourcing (HIMS-BPO) is reportedly the fastest-growing segment in the Philippines’ outsourcing industry. The segment posted a 114-percent growth in revenues and an increase of 47 percent in employment last year.

According to the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), the sector generated $277 million in 2011, $462 million in 2012, and leaped to $988 million in 2013.
As for the number of full-time employees, the sector employed 24,700 in 2011, 44,849 in 2012, and 65,895 last year.
This could mean that the HIM sector’s $1 billion revenue target could be achieved earlier, with the FTEs projected to reach 100,000 for the same year.

One of the advantages of the booming HIMS-BPO industry is it has created opportunities for the oversupply of nursing graduates and medical professionals. They can find employment in telemedicine, pharmaceutical, revenue cycle management (provider and payer Functions), and healthcare application support (clinical and non-clinical) jobs.

HIMOAP is set to hold the IMS Conference 2014 (formerly known as Healthcare Information Management Outsourcing Services Congress or HIMOSC) on August 28 in Makati with the theme, "Philippine HIMS: Trailblazing to Global Leadership".


BPO firms open in Taguig, add 3,000 jobs

by @ MicroSourcing.com News Feed

American firms, CSS Crop. And UST Global have unveiled their new Business Process Outsourcing (BPO) centers in Fort Bonifacio, Taguig City. The pair are looking to hire over 3,000 workers this year, Manila Standard Today reported.

�We are looking at hiring around 1,000 people in the next 12 months,� said UST Global chief executive, Sajan Pillai in a briefing.

CSS and UST each have capacities of 1,000 workers and 400 seats. Pillai says UST Global expects its current workforce to increase to between 3,000 and 5,000 in the next three years, with revenues reaching an annual $150 million. CSS on the other hand, is looking to go from 400 to 2,000 employees this year.

�On the BPO part of our business, we see that our Philippine delivery center will contribute 20 percent to 25 percent in our revenues in the next few years,� stated CSS chief executive, Nick Sharma.

Sharma added that CSS could possibly expand to provinces for a second outsourcing facility in the Philippines. Its center in Taguig is the second-largest of its outsourcing facilities next to its center in Chennai, India.



PBN Domain Registration: Where To Register A PBN Domain

by admin @ SEO Brothers

Figuring out where and how to register your PBN domain is a fairly important aspect to building a successful private blog network. Depending on the size of your network and the number of domains you have the importance of choosing your registrar increases even more. I wanted to outline some of the options and things…

The post PBN Domain Registration: Where To Register A PBN Domain appeared first on SEO Brothers.

Indian BPOs See PH as a Threat

by @ MicroSourcing.com News Feed

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.


What To Expect From Ad-Clicks In 2017

by Alexander Felsch @ NYC SEO Authority

Google Makes Sweeping Changes In Search And Paid Ad Security In just the last few days, Google has announced that it will be encrypting all searches including paid ads. Since the inception of AdWords, Google has provided a way for advertisers to search for keyword data through their tool and through third-party tools that access [...]

The post What To Expect From Ad-Clicks In 2017 appeared first on NYC SEO Authority.

Latest Report in the Healthcare IT Outsourcing Market

by @ MicroSourcing.com News Feed

The latest healthcare IT outsourcing market research report revealed that the market will post a compound annual growth rate (CAGR) of 9.17% by 2019.

Healthcare IT outsourcing enables hospitals and clinical laboratories to team up with third party service providers to address operational costs and improve an organization’s operation. The report found that two functions are mainly outsourced by healthcare organizations: IT application and infrastructure improvement.

Factors that are said to be affecting the global healthcare sector are the conditions of economies that can range from vague fiscal uncertainties to direct financial crisis as these factors can impact the spending behavior of people, as well as unemployment levels which, in turn, result to decrease in incomes.

The scope of the report covers the current scenario and growth prospects of the global healthcare IT outsourcing market for the period of 2015-2019. Some of the factors the report has taken into account are revenue generated from IT application outsourcing and healthcare infrastructure outsourcing. Moreover, the regions analyzed in the report are Americas, APAC, and EMEA. Top vendors include Accenture, Cognizant, IBM, Infosys, and TCS.


Q3 Outsourcing: Contracts Surge, Value Remains Constant

by @ MicroSourcing.com News Feed

2015 Q3 Global Outsourcing Report

The third quarter ISG Outsourcing Index report revealed that major sourcing markets are moving towards shorter and more affordable contracts which resulted to an increase in contract volume, but a flat overall value globally.

The report covers commercial outsourcing contracts with an annual contract value (ACV) of $5 million or more. A total of 344 contracts were closed in the third quarter, which is a 20 percent increase from the same period last year. However, it is lower than the 448 contracts signed in the second quarter of 2015. Third quarter ACV for this year amounted to $5.6 billion. It is similar with the previous year’s ACV, but is nine percent lower than this year’s second quarter.

Five mega-relationships (contracts valued at more than $100 million annually) were posted, rounding it up the year-to-date total to 14, the lowest figure in the three quarters for the past 10 years.  

Meanwhile, for the first three quarters, the volume and ACV for deals valued less than $40 million both reached record highs. In fact, the total volume of contracts climbed eight percent with 1,094 - the highest ever from the same period in 2014 despite an 11 percent decrease in ACV to $16.8 billion.

Value of new-scope contracts reached $3.8 billion which is eight percent higher than last year. Restructured contracts fell 13 percent for the quarter to $1.8 billion. An 11 percent drop was seen for both new-scope and restructured-contract ACV due to a slowing manufacturing sector and unimpressive activity in the financial services sector.

Per segment, business process outsourcing (BPO) took the center stage with its ACV growing 53 percent to $2.0 billion, mostly because of the increase in call center outsourcing and industry-centric operations. In some segments such as information technology outsourcing (ITO), the volume of contracts declined by 15 percent as cloud integration continues to saturate the market.

Republicans Block Passage of US Anti-outsourcing Bill

by @ MicroSourcing.com News Feed

In a 53-45 vote, the Republicans had prevented the passage of the anti-outsourcing bill that would stop US companies from getting tax breaks and outsourcing work to other countries.

Increased taxes on revenues from offshore operations

The Creating American Jobs and End Offshoring Act includes exempting firms that move jobs to US from payroll tax. However, it also involves increasing taxes on the companies’ profits from offshore operations. "Desperate times call for desperate measures and the majority is showing how desperate they are with a bill that increases the tax burden on job creators and ship much-needed US jobs overseas," said Republican senator Orrin Hatch.

On the other hand, Democrat senator Harry Reid said the goal of the bill is “to keep American jobs in America”, and that the US must stop granting tax breaks to companies that move jobs overseas.



Non-voice Sector Fuels PH BPO Growth

by @ MicroSourcing.com News Feed

According to an industry official, the non-voice sector is the major contributor to the growth of the country's business process outsourcing (BPO) industry.

Raymond Lacdao, Business Processing Association of the Philippines (BPAP) Director said amid the thriving call center industry of the country, the BPO sector is now progressing with high-value processes which include accounting, finance, industrial, and human resource functions.

Revenues reaching $25 billion and 1.3 million jobs by 2016 were predicted by BPAP. Lacdao added that if the projections are met, the industry will account for a nine percent growth to the country's GDP and will provide 3.2 indirect jobs.

Lacdao said Cebu is also making a name for itself as an outsourcing destination because it can simultaneously provide business and pleasure opportunities to investors. Moreover, he said the province is well equipped with a talent pool skilled for voice and non-voice operations.

In order to attract even more investors to the province, Lacdao noted that skills and volume of candidates should be improved, specifically for IT and BPO processes.


BPOs, Remittances Fuel PH Property Industry

by @ MicroSourcing.com News Feed

During a media forum at Makati City, real estate advisory and services firm CB Richard Ellis Philippines Inc. (CBRE) reported that the business process outsourcing (BPO) sector and remittances from overseas Filipino workers (OFWs) supported the growth of the property segment of the country.

According to the data from the Bangko Sentral ng Pilipinas (BSP), remittances grew five percent from US$22.9 billion in 2013 to US$24.3 billion in 2014, and will be valued from US$25 million to US$26 million in 2016.

Rick Santos, Chairman, founder, and CEO of CBRE Philippines, said the BPO sector is likely to be valued the same in 2016. He further noted that the bullish services segment of the BPO sector grew by 3.3 percent in the gross domestic product (GDP) and is cited as the key economic driver last year.

Moreover, Alexandra Kantindig, manager for investment properties and capital markets for CBRE Philippines, said the rise in demand for low to mid-market housing is propelled by OFWs and low to mid-level market consumers who purchase condominium units either for themselves or as a property that they will be renting out.

Katindig also pointed out that instead of renting a dorm or rooms, BPO workers and college students now opt to rent vertical properties - veering away from the traditional “bed spacing” setup, and are utilizing the properties as “condormitels”.


PH Moving Up to Become Leader in Multilingual BPO

by @ MicroSourcing.com News Feed

After dominating the global industry of call center work, the Philippines is striving to become a location of choice for multilingual business process outsourcing (BPO) services.

Board of Investments (BoI) Managing Head Cristino Panlilio said they recently teamed up with IBM in hopes of making the country the leading source of multilingual candidates especially since increase in BPO activity is seen from companies in regions such as Europe and Asia-Pacific.

As stated in the DTI's briefer, "The Philippines as the Global Leader in Multilingual BPO", the number of multilingual talents in the country is increasing 8.7 percent yearly, with local multilingual candidates outnumbering foreign multilingual talents. Also, multilingual candidates in the country typically work on non-sales services like tech support and teaching.

Panlilio said the upcoming training center in Ortigas will harbor the partnership's plan of spawning Nihongo, French, German and Spanish-speaking graduates. Other plans include process integration of work permits and visas for both foreign and local talents to improve and simplify multilingual services.

IBM Philippines' General Manager James Velasquez said, �IBM's capabilities and best practices in multilingual BPO business, coupled with strong and strategic cooperation from the BoI, will further establish the Philippines as an upcoming leader in the global multilingual BPO arena."


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CDO Cited as 'Most Competitive' Outsourcing City in Mindanao

by @ MicroSourcing.com News Feed

With more room for business process outsourcing and a large pool of skilled workers, Information and Communications Technology (ICT) companies recognized Cagayan de Oro (CDO) as the most competitive city in Mindanao for outsourcing work.

Elpidio Paras, Chairman of the CDO ICT Business Council, told industry leaders and ICT students in the recently concluded Convergence 2009 ICT Roadshow at Pryce Plaza Hotel that Cagayan de Oro has several potential outsourcing sites including the Phividec [Philippine Veterans Investment Development Corp.], the new Lim Ket Kai Gateway Tower, and the SM City-CdO IT Building.

The low power cost in the city is also another plus for ICT companies. Paras said there is enough power supply from sustainable resources. �Utility rates here are lower by at least 30% compared with Manila's rates, management costs are also low, and salaries are low- to mid-level. Cagayan de Oro is also typhoon-free,� he added.


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2014-2019: Overview of the Global Healthcare BPO Market

by @ MicroSourcing.com News Feed

Research and Markets, an Ireland-based research and consultancy agency, recently released “Global Healthcare BPO Market 2015-2019”, a report which covered the F&A BPO, HR BPO, and CRM segments of the global healthcare market. It revealed that demand for outsourcing is primarily driven by the increased need for affordable operations as healthcare costs continue to surge, growth strategies require additional improvements in infrastructure, companies needing more capital investment, and rising labor costs.

Moreover, the report stated that data security and privacy are crucial issues in outsourcing environments - citing that these are major hurdles in the healthcare market. Data collected amongst healthcare institutions are confidential and sensitive, and data theft and intrusion of information are risks that could dampen an institution’s reputation.

Business process outsourcing is one of the segments under outsourcing. It is the process of subcontracting a certain operation of a business to a third party provider. A service provider can either be an end-to-end company or an industry-specific organization. BPO is known to boost not only the operation and cost efficiency of the company but its output as well. The healthcare industry is said to be adopting BPO services since these have been proven to reduce costs, improve patient care services - the core mission of healthcare organizations - and staff efficiency.

Meanwhile, the latest trend seen in the healthcare market is the adoption of the cloud. Cloud-based solutions in the sector are changing the way BPO is integrated to an operation.


RP BPO gets bandwidth expansion boost

by @ MicroSourcing.com News Feed

The Philippine's largest telecom provider, Philippine Long Distance Telephone Co. (PLDT) announced the completion of a digital fiber optic network (DFON) expansion project worth P600 million. As a result of the project, six network loops across the nation will get an additional 320 gigabytes per second  (Gbps) and increase the company's DFON operating capacity to over 1,000 Gbps, Business Mirror said.

PLDT had previously completed a third fiber optic cable leg to Baguio. They expect the completion of a third 1,220-kilometer line connecting Lucena and Cebu to Bicol, Masbate, Panay and Negros by the middle of the year.

�These projects will spur growth in local economies by making these locations more attractive investment areas, especially for business process outsourcing (BPO) locators. Moreover, this will expand broadband coverage so that more Filipinos, including those in rural areas, can connect to the world through the Internet,� said PLDT president, Napoleon Nazareno.

PLDT is reportedly also working to install loops within loops to enhance network resiliency to protect existing businesses and potentially open new IT-enabled revenue sources in the outsourcing industry



Crawl budget: What Does it Mean and How to Optimize it?

by Nikolay Stoyanov @ NikSto.com

Most people have heard of Googlebot, crawling and indexing. Still, it is a topic that is rarely discussed and is usually taken for granted. Nevertheless, it does play a role when it comes to SEO and increasing traffic. In order for content to be crawled, indexed and presented to users in Google, the search engine needs... Continue reading

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BPAP Eyes 1.3M BPO Workers by 2016

by @ MicroSourcing.com News Feed

The Business Processing Association of the Philippines (BPAP) is looking for 120,000 English-proficient individuals to fill positions in the country's business process outsourcing (BPO) sector as it aims to hit the target of employing 1.3 million workers by 2016. It is also predicted to become a US$25-billion industry in four years.

BPAP President Benedict Hernandez said they anticipate achieving the goal of employing 1.3 million, with strong support from the government and academic institutions which are set to help produce driven and competent candidates.

Some of the programs provided by BPAP are certification, training, and HR development. They also hold regular drills for trainers and prepare the youth for job applications, with the help of the Commission on Higher Education (CHED).

He added that BPAP is teaming up with government bodies to mend mismatched jobs and improve the skills of the local workforce in the long run.

In line with that, the information technology and business process outsourcing (IT-BPO) and global in-house center (GIC) industry is striving to draw more candidates.

Some of the high-valued services provided by large outsourcing firms in the country are multi-service delivery in consulting, IT and engineering, financial, manufacturing, customer engagement, public services and healthcare, facility management, security, real estate, and support services.


BPAP lowers employment growth target

by @ MicroSourcing.com News Feed

The Business Process Association of the Philippines (BPAP) has said that it will lower its employment target in favor of higher revenues. Having originally targeted an outsourcing employment count of 900,000 for 2011, BPAP has lowered it to 620,000 � diverting focus to its export revenue target of $12 billion, Malaya reported.

Insights into BPAP's 2011 outsourcing industry roadmap were made by BPAP president, Oscar Sanez, during the recent launch of the association's National Competency Test (BNCT).

"Employment is the secondary objective. The main objective is export revenues," Sanez said.

Sanez explained that the industry met its $7.2 billion revenue target last year despite generating only 436,000 workers � well below the 600,000 jobs they deemed was necessary for reaching the revenue target. The $12 billion revenue goal for 2011 was originally marked for 2010 but suffered a setback due to the global financial crisis. Last year's outsourcing revenues registered a 20% growth from the previous year.


More Opportunities Seen in the Clinical Support Field

by @ MicroSourcing.com News Feed

House Deputy Roman Romulo said more health insurance companies in the US are expected to transfer clinical support work and other back office jobs to the country.

Romulo, who is a known supporter of the business process outsourcing (BPO) sector in Manila said although many American health insurers such as Minnetonka, Minnesota-based UnitedHealth Group Inc., Indianapolis, Indiana-based WellPoint Inc. and Hartford, Connecticut-based Aetna Inc., have already established back offices in Manila, their rivals Bloomfield, Connecticut-based Cigna Corp.; Louisville, Kentucky-based Humana Inc.; and Woodland Hills, California-based Health Net Inc. are seen to follow suit.

The six US-based health insurance companies process nearly 130 million Americans. Definitely, lower costs would be the main driver for these organizations to transfer jobs to Manila.

The Philippines has an oversupply of nurses and other health practitioners who are fluent in the English language and who are college graduates, said Romulo. Moreover, he noted that the Data Privacy Act is helping to improve the image of the country's BPO sector.


Asia-Pacific Region Expected to Turn into Biggest MES Market

by @ MicroSourcing.com News Feed

The market-expansion services (MES) sector of the Asia-Pacific region can surpass Europe's and be the largest in the world by 2015. This is based on a report from DKSH and Roland Berger Strategy Consultants. From 2010 to 2015, the MES market in the Asia-Pacific region is predicted to grow 11.3 percent annually and will be valued at around US$853 billion. On the other hand, Europe's total MES market is expected to grow 4.3 percent annually, valued at US$759 billion by 2015.

As renowned companies focus more on core competency, productivity, and building their global brand image, and recession is still taking its toll in Europe and the United States, doors have opened for Asia to become a market-expansion services (MES) location. In fact, small and medium-sized firms are looking for partners that can provide leads and access to the global market.

Over 100 executives in Asia, the US, and Europe participated in DKSH and Roland Berger's study, where the rapid emergence of the middle classes was identified as the  key driver of Asia-Pacific MES growth. The middle class is comprised of families who are able to make ends meet and earn between US$10 and US$100 per person, daily. Charles Toomey, executive vice president and global business unit head for healthcare, DKSH Hong Kong said, the increasing number of middle-class consumers and the inclination of business owners to outsource certain processes will drive the growth of Asia's market-expansion services sector.


Web Development Outsourcing: Filling the Knowledge Gap & Growing Your Business

by 365outsource_admin @ 365Outsource.com

A business starts with an idea. While conceptualizing, you list down all the services you want to offer – and not all of them may necessarily be suited to your expertise. This doesn’t have to be a bad thing but it does mean you will need some help. When setting up and growing your business,…

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BPOs Urged to Reduce Job-related Stress, Stop High Attrition Rate

by @ MicroSourcing.com News Feed

To stop the high attrition rate, which can be attributed to work-related stress, in the business process outsourcing (BPO) industry of the Philippines, the International Labor Organization (ILO) urged BPO companies in the country to implement policies designed to give employees more flexible decision-making opportunities and eventually reduce stress brought about by their working conditions.

ILO senior researcher John Messenger said there is also a need to implement stringent ways to ensure the health and safety of BPO workers who are on night shifts. "This is a rapidly growing industry worth and approximate $90 billion. A lot has been written about this phenomenon and its implications for economic growth and employment. However, very little is known about the working conditions in the BPO industry," Messenger said.

Health and safety of BPO workers on night shifts

Messenger added that in the study they have conducted, 49.2 percent of Filipino BPO employees noted that stress is a major concern. This can be due to harassment from clients, too much workload, monotony, and/or night shifts.


Outsourcing Misconstrued by the British Public

by @ MicroSourcing.com News Feed

There seems to be a discrepancy between the survey commissioned by the National Outsourcing Association (NOA) entitled 'Public Perception of Outsourcing' and the study done by the Business Services Association (BSA). According to the survey by NOA, outsourcing is perceived by the public as a detrimental component to the British economy, while the latter showed that it contributed eight percent to UK's GDP, �14 billion in business taxes, and �21 billion outsourcers' income tax.

NOA believes that the respondents have negative perceptions of outsourcing due to lack of information about the process. More than half (53 percent) believe that outsourcing is responsible for job losses, 65 percent associate it with cost reduction, and 45 percent link it to India. Moreover, only 19 percent believe that outsourcing is a solution for the UK's current economic state.

NOA also stated that the public often confuse outsourcing with offshore captive projects. With offshore captives, there's typically no outsourcing involved and the operation is fully owned by the main company. In fact, only 27 percent of the respondents know the difference.

Even if the British public are vocal of their feelings towards the strategy, NOA Chairman Martyn Hart said the association can help the public understand that outsourcing will help businesses and the nation grow.


PH Business Magnate to Invest in BPO

by @ MicroSourcing.com News Feed

SM Investments Corp., one of the largest business organizations in the Philippines, is supposedly securing several office properties in Bonifacio Global City (BGC) in Taguig. The move is seen as an effort to gain access to the growing business process outsourcing (BPO) industry.

The office properties are Net One Center, Net Square, Net Cube, Net Quad, and Net Plaza, with a collective floor area of 148,000 square meters. Moreover, it is projected to post a net income of almost P1 billion per year.

Meanwhile, the IT and Business Process Association in the Philippines (IT-BPAP) predicted that by 2016, the BPO industry will post revenues amounting to $25 billion from $13 billion last year.
SM Investments will be one of the biggest office property operators in the country if this acquisition pushes through. The organization will be alongside the current leader, Megaworld Corp., which is managing 450,000 sqm of office space - solely dedicated for BPO operations.


PH Receives another Investment Rating Upgrade

by @ MicroSourcing.com News Feed

The Philippines is on a streak in obtaining investment grade rating this year as it was awarded its third from Moody's Investors Service, a renowned credit rating agency, giving the country a Baa3 rating from the initial rating of Ba1. The first two agencies that gave the Philippines credit rating upgrades were Fitch Ratings in March, followed by Standard and Poor's last May.

Malaca�ang was overjoyed when the news came out and Secretary Ricky Carandang of the Presidential Communications Development and Strategic Planning Office said the agency's "positive outlook" remark is a surprise for them because this could mean another upgrade if all goes well in the future.

Moreover, Carandang said the upgrade is proof that the international community is confident with the Aquino administration's financial management abilities.

Moody's identified these key drivers: political stability, improved governance, and fiscal and debt consolidation. The agency also noted the smooth movement of the country's economic structure and performance to higher growth with low inflation.

In line with that, the economy expanded further from last year's strong 6.8 percent growth, to 7.6 percent for this year's first half. Moody's noted that with those figures, the Philippines posted one of the fastest growth rates in the Asia-Pacific region throughout emerging markets worldwide.

However, Moody's pointed out that compared to other investment-grade countries, revenue generation is still smaller, but the country is able to make way for infrastructure improvements and social spending.

Although the government shutdown in the US is anticipated to rock economies globally, Moody's was said to have taken note of the Philippines' resilience to external financial challenges � citing its impartiality to foreign loans as a rating factor.

The improved domestic spending activity of the Philippines is also identified as an indication that it possesses a healthy external payments position. Also, it shows liquidity in its banking system, which is likewise identified by Moody's as the only system to have positive outlook globally.

It is also anticipated that the country will post account surplus because of the influx of remittances from overseas Filipino workers and the robust business process outsourcing (BPO) industry.

With the strong performance of the Philippine economy, Moody's said it is unlikely for the investment rating to go down any time soon, but the macroeconomic instability of the country such as an erosion of the country's payments position, rise in debt-servicing costs and deterioration in fiscal/debt metrics can be detrimental in the future.

Meanwhile, Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said the upgrade is a strong indication of the country's solid prospects and that the latest rating upgrade could help in attracting more investors, which in turn will possibly fuel the growth of the economy.


PH BPO to Continue Driving Demand for Real Estate

by @ MicroSourcing.com News Feed

According to property consultancy agency Jones Lang LaSalle (JLL), the upbeat growth momentum of the business process outsourcing (BPO) industry in the Philippines continues to drive local demand for office and residential spaces.
JLL Local Director Phillip Anonuevo cited the data from the IT and Business Process Association of the Philippines (ITBPAP) which states that the headcount for full-time BPO workers is expected to reach 1.3 million this year, which is set to take up 900 square meters of office space.

For this year, the total available office space is 745,390 sqm, and 68 percent or 506,574 sqm are already leased out, while 63 percent of the demand is from the BPO industry.
The country’s “new wave cities” such as Tuguegarao, Antipolo, Kalibo, Iloilo, Bohol, Davao, Puerto Princesa, Cavite, Balanga, Subic, and Clark could also benefit from the demand of office spaces as investors such as call center companies go where people are.
Apart from the BPO industry, remittances from Filipinos working abroad are also sustaining the demand for residential units.
Residential condominium units in Metro Manila totaled 216,830 sq.m., majority of which are near business districts where most BPOs are located.


PH barely Reaches BPO Need for IT Grads

by @ MicroSourcing.com News Feed

The business process outsourcing (BPO) sector of the Philippines is having a hard time in supplying its IT segment of the needed talent. The job openings are said to offer higher pay grade compared to the voice sector.

BPO sector struggling to provide IT talent

One of the examples cited is the talent shortage in Davao. Samuel Matunog of the Software Industry Association of Davao said major business process outsourcing (BPO) companies are now operating recruitment offices. Only 1,000 IT graduates are produced in the region each year.

He noted that even if the volume of fresh grads could sustain the requirements of outsourcing companies in Davao, those which are based in Cebu and Manila are likely to take part of the talent pool as well.

IT graduates need to have the right skills in Computer Science and IT management to make it in the IT-BPO sector. As for the voice sector, graduates of other courses can be trained.

IT graduates can command a higher salary in the outsourcing industry with some companies offering P40,000 at the entry level. Call center agents, on the other hand, are offered P12,000-14,000 for entry level positions, but could be easily scaled once they gain experience.


Community Moderation: How to Protect Your Brand in Online Communities

by 365outsource_admin @ 365Outsource.com

A community will not be called such without its members. Contributors create user-generated content, which provides much of the buzz around the brand. It’s the community that gives customers an idea of what to expect from a company, and what kind of people they attract. With all these said, it’s important that someone is managing…

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DOLE Sees PH BPO Industry as Main Job Generator in 2011

by @ MicroSourcing.com News Feed

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.




PH BPO Urged not to be �Complacent�

by @ MicroSourcing.com News Feed

As the competition in the global business process outsourcing (BPO) segment gets tougher, there's no reason for the Philippine BPO industry to become complacent, especially since it aims to reach $25 billion in revenues and employ 1.5 million by 2016, said SPI Global President and Chief Executive Officer Maulik Parekh.

He said changes need to be made by the industry to ensure that these targets are met despite the tough competition in the form of emerging outsourcing locations. The sector is poised to post 20 percent growth annually in the next two years, even if the economy is going through a slump.

Parekh said the Philippine BPO industry will face several challenges, particularly since the country is not the only one which offers outsourcing services. India, for instance, is an ideal location of choice when it comes to non-voice business functions. Another destination is China which has two million college graduates annually, whereas the Philippines only produces about 400,000. Filipino workers have better English communication skills, but China's workforce has the technical advantage. Moreover, as the US becomes more Hispanic, destinations in Latin America pose a challenge since they can offer bilingual support.


Gartner Says some Outsourcing Hubs may not have IT Security

by @ MicroSourcing.com News Feed

In the 30 Leading Locations for Offshore Services 2010-2011 report, IT research and advisory firm Gartner warned UK IT managers of the relative immaturity of some outsourcing destinations, saying these may lack data security as well as IP protection.

Report author Ian Marriott said some outsourcing locations such as Vietnam still need to improve their legal system to meet data security requirements. �If a firm used to outsource to India and has built up certain expectations then they may be in for an unpleasant surprise. However, they may be in for a pleasant surprise, but it must be well managed and some companies are not doing this. It's all about the due diligence.�

Marriott said getting the necessary information about the possible outsourcing destination by talking to government representatives and industry groups is crucial before deciding whether or not to outsource.

While countries like Bulgaria, Poland, Hungary, Egypt, and Czech Republic are relatively mature service providers, Marriott said these may be suitable only for certain business operations. Poland, for instance, specializes in business processes, while Egypt focuses on contact centers.


BPAP: 2012 PH BPO Revenue may Reach $14B

by @ MicroSourcing.com News Feed

By 2012, business process outsourcing (BPO) firms in the country can post revenues reaching US$14 billion.

Revenue growth for BPO firms

Fred Ayala, Chairman of industry body Business Processing Association of the Philippines (BPAP), said non-traditional outsourcing services such as engineering, sales and advertising, game development, and other knowledge-process outsourcing services are making the mark in the local outsourcing scene. He added that this year, they are expecting the industry to post about $11 billion in revenues, with a 20-percent growth next year as BPO firms expand service offerings that include new knowledge-intensive processes.

Meanwhile, BPAP Senior Executive Director Gillian Joyce Virata said the country’s BPO industry may post P2- P3 billion more if they continue to offer non-voice outsourcing services.

Voice-based outsourcing gets the lion’s share of the entire Philippine BPO industry. In fact, the country is now considered the top call center destination. Virata said that while voice-based work will still grow or even double in the next few years, its portion in the industry will decrease since non-voice services are growing faster.

Finding the right talent remains a challenge, which is why BPAP continues to ramp up its initiatives to further improve the skills of available workers in the country.


Starting a Business Blog in Eight Simple Steps

by 365outsource_admin @ 365Outsource.com

A blog is a good way to give your brand a voice and keep your website updated with fresh, relevant content. If you don’t have a blog for your business yet, it’s time to get started. Setting up a blog is fairly simple if you follow these steps.   Determine Your Blog’s Goal   You’re…

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Volume of Mega Outsourcing Deals in Europe Declines

by @ MicroSourcing.com News Feed

Outsourcing Buyers in Europe's Shifting Preference

A 25-percent decline in European mega outsourcing deals was spotted during the first quarter of this year by outsourcing consultancy agency Information Services Group (ISG). Only 128 contracts valued at €1.9 billion (£1.4 billion) were posted during the period. Deals that have an annual contract value of €4m (£3m) or higher are classified as large deals by ISG.

According to David Howie, a partner at ISG, outsourcing activity is still positive, but the buyers’ preference is now leaning more towards smaller deals. He also noted that based on historical trends, the changes in the market could be caused by the upcoming general election.

The report also pointed out that this is the weakest first quarter for the UK since 2010 when the annual contract value (ACV) was only €600 million (£430 million). As for last year, deals during the first quarter reached €1 billion.

In another study on business process outsourcing (BPO) deals, the UK public sector posted the highest volume of contracts awarded globally with a total of €1.9 billion (£1.36 billion). On the other hand, the financial services sector posted the highest increase in contract value with 120 percent to €1 billion (£700 million).

John Keppel, also a partner at ISG, said the outsourcing market in Europe posted a slow start, but there are several regions that posted positive results particularly Germany, Austria, and Switzerland. The financial services sector also showed positive results, but are not enough to offset the decline in other developed markets such as the Nordics, France, and the UK.

Amidst the decline, outsourcing providers still closed a decent amount of big wins in the first quarter of this year. A great example of a huge win is the 10-year, multi-billion dollar global deal of HP with Deutsche Bank which was closed last February.


Everest: Captives still Expanding and Evolving

by @ MicroSourcing.com News Feed

Captives continue to expand and evolve in the outsourcing and offshoring industry, according to a study by global services advisory firm Everest Group. This is in contrast to the perception that captives no longer thrive.

The captive model for offshoring involves more sophisticated processes and requires highly skilled manpower. Based on the Everest study "Captives are Staying Alive", many large-scale captive operations have grown and expanded their service offerings. In 2010, 10 captive were set up while 13 expanded.

Everest Group's Managing Director Eric Simonson said there are two reasons captives will be an important part of offshoring. "First, it is a large part of the market, representing about 25 percent of delivery within India. Second, the model is different from third-party models and that is not widely understood. A captive can not only deliver the typical services of a [third-party] service provider, but also many other services which are just part of the normal business."  

Everest Group said IT and business processes of captives were worth about $8 billion in 2006. In 2009, a 10 percent compound annual growth rate was seen in captive center activities.


India Still the Leader of Global BPO

by @ MicroSourcing.com News Feed

During Nasscom's recent business process outsourcing (BPO) summit, Indian BPO executives said the country accounts for 37% of the global BPO revenue, making it the leader once again in the global outsourcing arena.

According to Som Mittal, President of Nasscom, even with the economic uncertainty, India continues to present a robust BPO industry and is gradually transitioning to a business process management (BPM) destination to keep up with the global trend, and enable India to maintain its top position.

Furthermore, the India's BPO sector became a reliable partner to clients due to improvements in processes and services, which customers are now more disposed to.

The Indian BPO sector was able to evolve into a �genuine partner' from being a mere �vendor' of services, said EXL Service Chairman Vikram Talwar, which means apart from supplying the demands of a client, they are now involved in the decision-making process as well.


The Potential Benefits of SEO Outsourcing | 365Outsource.com

The Potential Benefits of SEO Outsourcing | 365Outsource.com


Companies looking for a new way to increase their customer base look to the Internet. SEO outsourcing and cheap hosting plans combined are a cost-effective way to maintain a business website. However, that does not mean that the process is easy. Getting a website hosted and ready can be taxing, but the more difficult part is getting people directed to the site. This is what search engine optimization (SEO) is for.

Study: Cloud Services Change CIO Roles

by @ MicroSourcing.com News Feed

The recently released CIO Viewpoint 2013-14 report from Michael Page Technology indicates that the roles of chief information officers (CIOs) may have changed due to the emergence and adoption of new technology.

Forty CIOs from various industries in Australia joined the survey, 53 percent of which declared cloud services had a moderate impact on their operation, while 29 percent believe it had a significant impact to their business.

Emily Wilson, Director at Michael Page Technology, said CIOs are now more occupied in playing the role of a business partner when managing vendors.

The report also indicated that 40 percent of CIOs were outsourcing 10 to 20 percent of their IT operations to service providers and were seen managing most of their workload in-house. Meanwhile, nearly 25 percent of the respondents shared they outsourced between 20 and 30 percent of their IT processes.

Meanwhile, more than half of the survey participants said they report directly to the CEOs, and 75 percent said they are responsible for regional or global IT functions.

Also, it was found that 73 percent of CIOs are planning to or have used a BYOD (bring-your-own-device) solution and there also those who are looking into applying a bring-your-own-computing business model.

For the coming months, 31 percent of the respondents said they are eyeing e-commerce processes, while 28 percent are looking into Big Data. Twenty-three percent of respondents are going to focus on cloud services and 18 percent said they will prioritize mobile technology


PH BPO Posts Highest Number of Job Vacancies this Year

by @ MicroSourcing.com News Feed

According to figures posted by Phil-JobNet, the official online job portal of the government, the business process outsourcing (BPO) sector tops the list of job openings for private sector companies. This was validated by records collated by the Bureau of Local Employment (BLE) where job vacancies reached 39,281 as of September 2011. Baldoz said this affirms the Philippines’ standing as a global BPO location of choice.
The report also included that while there’s a large number of job opportunities in the industry, the job profiles of applicants do not match the needs of BPO companies. Only 1,030 candidates applied for BPO positions from January to September this year. 
BLE Director Ma. Criselda Sy said call center agents remain at the top of the list in terms of job vacancies, from 2010 up to September in 2011. 

BPO Sector of the Philippines Creates Highest Number of Jobs

A  P1.1-billion stimulus fund was provided by the government to aid the Technical Education and Skills Development Authority (TESDA) in providing training programs - P500 million of which was allotted for the BPO sector’s “near-hires”. TESDA is also planning to reach out to other cities to assist those who wish to enter the BPO workforce.
Phil-JobNet also showed that other in-demand positions were workers, carpenters, and drivers. Customer service assistants had the second highest number of vacancies at 16,589. 

More Jobs in BPO Expected as Peso Weakens

by @ MicroSourcing.com News Feed

Stronger Philippine Peso to Result to more BPO Jobs

According to House Assistant Majority Leader and Cebu Rep. Gerald Anthony Gullas Jr., the recent depreciation of the Philippine Peso against the US dollar means the business process outsourcing (BPO) industry of the Philippines and overseas Filipino workers (OFWs) are earning more.  This also implies that the robust BPO industry will be able to produce more jobs faster this year.

Gullas, who is also a member of the Nacionalista Party, noted that BPO companies are paid in dollars, but operation and salary expenses are in Philippine Pesos.  

Last Firday, the peso closed at its lowest level in over three years at Php45 to a dollar. It is a 10.48 percent difference from the 40.73 to 1 dollar exchange rate in January of last year. Gullas said BPOs now have a stronger Peso spending power, which they could use to expand and hire more employees.
He also estimated that for every $10,000 spent by BPOs on expanding operations, one full-time job is usually produced.

The Cebu Representative added that Cebu is an emerging BPO hub as it now has 25 fully functional IT parks, and 12 more on the way. More than 100,000 are now working full-time in BPOs located in Central Visayas where revenues reached $516 million in 2012. 

Meanwhile, the IT and Business Process Association of the Philippines (IBPAP) projected that the industry will produce 372,000 new jobs starting this year up to 2016.



JP Morgan Expects more Foreign Investments to PH this Year

by @ MicroSourcing.com News Feed

Arian Mowat, Chief Emerging Market and Asian Equity Strategist of JP Morgan Chase & Co., believes that more foreign investors will continue to spend in the Philippines this year, unless the economic environment changes. He said that low interest rate, stable political environment and inflation rate, and sustainable foreign exchange inflows from remittances and business process outsourcing (BPO) are some of the factors that make the Philippines competitive.

JP Morgan predicts a four-percent increase in the country's gross domestic product (GDP). The inflation rate is likewise expected to be at four percent by the end of 2012.

Gilbert Lopez, the Philippines equity strategist of JP Morgan, anticipates a 10 to 12 percent growth rate for this year's revenues, citing banks and conglomerates as sound choices for investments. The Bank of the Philippine Islands, Metrobank, Security Bank, Ayala Corp., and Metro Pacific are likely to become the largest gainers.

Bangko Sentral Governor Amando Tetangco Jr. said capital funds were allotted to government securities and local stocks last year. These led to positive effects to the market's liquidity and funding. Meanwhile, Tetangco noted that sectors should not be comfortable with the country's economic standing and large number of investors, saying it is important to be prepared in case the business environment changes.  
He added that regardless of the economic issues in Europe, remittances from overseas Filipino workers may reach $21 billion this year.


RP BPO Sector Expects Significant Growth in 12 Months

by @ MicroSourcing.com News Feed

A survey conducted by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) reveals that the business process outsourcing (BPO) sector of the country will see significant growth in the next 12 months.

Sixty-five percent of respondents are confident that their business will grow between six and 50 percent, while 15 percent believe their firms will see an even faster growth. Moreover, survey participants are looking forward to more improvements for the industry under the Aquino administration.

BPO companies are optimistic, but lack of qualified workers remains to be a major concern, and this is getting more and more critical as it will greatly affect the growth of the industry. In addition to this, the tight labor market for knowledge workers is another challenge, according to almost 50 percent of the survey respondents.


PH Seen to Dominate Global Healthcare Outsourcing this Year

by @ MicroSourcing.com News Feed

According to Information and Communications Technology Office (ICTO) Deputy Executive Director Alejandro Melchor, with the large number of licensed healthcare professionals like nurses and recent triumph in the call center sector, the Philippines is predicted to become one of the prime providers of healthcare information management services. He added that for the country to remain competitive, it should tap “high-value-chain” services.

Targeted healthcare sectors

ICTO identifies healthcare information management outsourcing as one of the four targeted areas for growth. Other viable segments are finance and accounting, HR outsourcing, and animation and creative process outsourcing.
Not only does the healthcare sector focus on basic back-office medical transcription, it also includes top tier services like clinical coding, disease management, revenue cycle management, and pharmaceutical benefits management.

Melchor said healthcare information outsourcing is a favourable sector, and the country is definitely the primary outsourcing location of choice. He added that the recently sanctioned landmark healthcare law “Patient Protection and Affordable Care Act” by the Obama government, and the steady increase of senior citizens in the United States provide opportunities for the country’s outsourcing industry.  Furthermore, the US needs $530 billion dollars-worth of services to apply the measure - definitely a huge market for outsourcing destinations like the Philippines.

ICTO is hoping to team up with the Business Processing Association Philippines (BPAP) and the Healthcare Information Management Outsourcing Association of the Philippines in creating strategies for the four targeted sectors.

Department of Science and Technology Secretary Mario Montejo said they plan to focus on the outsourcing sectors for 2012. He added that the country needs to produce better graduates by means of partnering with other educational organizations.

BPAP predicts that the country will reach $25 billion in export revenues by 2016 and provide 1.3 million direct and 3.2 million indirect jobs.


Gartner Sees Growth in Affordable Cloud Computing

by @ MicroSourcing.com News Feed

Low-cost Cloud Computing

According to IT analyst firm Gartner, low-cost cloud computing will be popular in the next few years. With this forecast, there’s a possibility that companies will change their views in pricing and value in the marketplace.

Gartner assumes that revenues from outsourcing IT infrastructure will be greatly affected. The growing popularity of low-cost cloud computing will have a negative impact to the IT services market. Moreover, due to the increase in demand and usage of mobile devices and applications globally, companies are now shifting from desktop clients to web-based services.

Gartner also predicts that with better information security, majority of the top-1,000 companies worldwide are determined to store valuable sensitive data in the public cloud. Nevertheless, the firm believes that the number of cybercrimes will still grow. It is estimated to increase by 10 percent annually.

According to a document published by the Financial Times, there are proposals to the European Commission that involve fining companies if there are breaches in data security.


What Is Social Media Advertising?

by Michael Hopson @

We live in a world full of likes, comments, tweets, pins, grams, snaps, and many more ridiculous interactions that can be found on social media. Merriam Webster defines social media as: “Forms of electronic communication (as websites for social networking…

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Global Outsourcing Industry Posts Higher Revenues in 2014

by @ MicroSourcing.com News Feed

Global outsourcing industry posts higher revenues

United Nations Conference on Trade and Development, and the World Trade Organization recently revealed their assessment on the performance of the global outsourcing industry. It was found that during the third quarter of last year, revenues amounted to $7.1 billion, which is 11.8 percent higher than the amount posted during the same period in 2013. The growth seen in Q3 2014 is also higher than the $4.7 billion posted during the first quarter, and $6.1 billion in the second quarter.

According to Jose Mari P. Mercado, CEO and President of the IT & Business Process Association of the Philippines (IBPAP), the country is on track in achieving the $25-billion revenue target indicated in the 2016 IT-BPO Road Map. Factors such as the number of new locators and expansion of existing outsourcing firms are believed to be the growth drivers.

On the other hand, Senen M. Perlada, Director of the Department of Trade and Industry Export Marketing Bureau, believes that the overall service exports, which cover non-commercial services, will not reach the 2014 government revenue target of 12-12.2 percent or $24.4 billion to $24.81 billion. However, the increasing number of road shows, favorable exchange rate, and sustained interest from potential investors contributed to the positive outlook for service exports in 2015.


PH Economy, Property Sector to Earn More with BPO Revenues

by @ MicroSourcing.com News Feed

The increase in business process outsourcing (BPO) industry revenues, low interest rates, and improved investor confidence are factors that will extend gains of the property sector and the country's economy as a whole.

According to Rick Santos, Philippine chairman of property services company CB Richard Ellis, said the demand for office space in the BPO industry will increase and will reach more than 300,000 sqm. this year, as US firms outsource more processes to the Philippines and because rents in the country are much less expensive compared to other Asian cities. "We see that as a huge metric whereas places like Singapore, who also have a very hot market, take up there is just about 150,000 square meters. So we're looking at office take up in the Philippines double that of a place like Singapore."

The administration also boosts investor confidence. Santos said foreign investors see great improvements in the next few years.


Forrester Says IT Market in the US to Slow Down

by @ MicroSourcing.com News Feed

According to the US and Global Market Outlook: Q3 report of market research firm Forrester, IT outsourcing from the US will see a slow growth rate of eight percent or $758 billion this year. This is lower compared to the estimate of almost 10 percent in July, while a growth rate of only 7.4 percent is predicted in 2011.

IT outsourcing is expected to fall behind the growth of other IT categories including software and PC equipment purchases. The report also suggests that applications outsourcing will increase by 2.9 percent. Mainframe outsourcing will grow by only 1.5 percent, while desktop support outsourcing will expand by just 1.3 percent. According to Andrew Bartels, VP and principal analyst at Forrester, extreme cases - strong growth or recession - may be seen in the US economy and on a global scale, �growing weakly but not slipping back into recession.�


SystemHUB Live And Other IM News

by David Jenyns @ Melbourne SEO Services

Just reporting back after the systemHUB live event with some great news. Not only did we sell out but I believe it was our best and most important workshop to date. The feedback I am getting is quite humbling and I believe what we covered will have a life changing impact for many. The fact […]

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India Losing Traction in IT-enabled Services

by @ MicroSourcing.com News Feed

High Cost Indian IT-Enabled

According to Ramesh Bhandari, MD of Pegasys Information Technologies Pvt. Ltd, India is believed to be losing traction on IT-enabled Services (ITeS) due to expensive rates. Tight competitors such as Brazil, the Philippines, and Sri Lanka are gaining from India’s loss and are offering more affordable services.

In the Business Orientation Program of IMT Hyderabad where a group of 120 students and faculty members participated, Bhandari discussed ITeS & Cloud Computing, stating that India’s IT outsourcing industry posted a 6.1% growth during 2010 and is predicted to grow by 19% in 2011. In India, ITeS contributes to the country’s economic growth and is responsible for nearly 5.66% of the country’s GDP and provides jobs to 2.3 million people. Bhandari also noted that cloud computing has drastically changed the industry by making way for new opportunities for businesses involved with IT/ITeS and traditional services.
Cloud computing basically means delivering hosted services over the internet without making use of additional hardware and software. It is also affordable and can be easily set up.

Services exports such as ITeS-BPO account for 85% of the country’s revenues. In fact, during 2009-2010, the total ITeS revenue amounted to $14.7 billion, a huge increase from 2004’s $2 billion.


UK Outsourcing Activity Posts 35% Growth this Year

by @ MicroSourcing.com News Feed

UK's Scarce Manpower Drives Outsourcing Growth

In a survey of 2200 small UK firms conducted by Freelancer.co.uk, it was found that outsourcing activity increased 35 percent this year. Outsourcing destinations are developing nations such as India, Pakistan, and the Philippines. China posted a 20-percent growth of the total outsourcing work from UK small businesses.
Meanwhile, respondents said they will be hiring more freelancers abroad in 2015, while 43 percent said they are looking to outsource more work overseas.

UK businesses outsource mainly because they lack manpower to work on specific tasks such as complex programming and IT, and to save on costs which will enable them to increase margins and capacity. Forty-eight percent said they outsource work so they would not have to turn customers away.

Fifty-two percent of the respondents also said outsourcing is enabling them to grow over the past 12 months. Meanwhile, 42 percent of small business owners said with the increasing demand for innovative solutions and services, and to compete with advanced industry players, they resort to outsourcing.

According to Bill Little, European Director of Freelancer.co.uk, operational cost reduction is no longer the main driver for UK businesses to outsource. They are more focused on increasing the capacity of their operation so they are able to accommodate more of their clients. In fact, UK small businesses are seen maximizing incoming work that they can’t do themselves. 


PH Breaks India's Streak in Outsourcing Index

by @ MicroSourcing.com News Feed

Manila Overtakes Mumbia in Outsourcing

The latest Tholons Top 100 Outsourcing Destinations report revealed that the Philippines moved up as one of the top destinations for business process outsourcing. Manila, Philippines is now number two in the outsourcing index, pushing Mumbai to the third spot and breaking India’s potential top six spots in the list.

The rest of Indian cities in the top 10 are Bangalore - taking the top spot, Delhi at fourth, Chennai at fifth, Hyderabad at sixth, and Pune at seventh spot.

Manila and Cebu City, ranked 8th, retained last year’s positions, whereas the last two spots in the top 10 are Krakow, Poland (9th), and Shanghai, China (10th).

Mark Maddocks, CIO at Cambridge University Press, noted that they have chosen the Philippines as an offshore destination for its low attrition rate, low cost of operations, and stable wage inflation rates.

The organization started its first offshore captive in the country nearly five years ago, with 40 staff composed of software developers, testers, and support for online digital products. It now boasts 250 people divided into 18 teams working on different processes, and is anticipated to reach 300 by next year.


PH Gov't, BPAP Team Up to Improve Quality of Talent

by @ MicroSourcing.com News Feed

The Philippine government is partnering with industry body Business Processing Association of the Philippines (BPAP) to further improve the skills of workers who are entering the business process outsourcing (BPO) workforce and help the industry in reaching its revenue goals.

Guaranteed jobs in the outsourcing industry for scholars

In a statement by Department of Budget and Management (DBM) Secretary Florencio Abad, a Training-for-Work Scholarship Program will be launched this year and in 2012. A total of 37,000 out of 58,000 scholars who will take part in the program will get jobs - guaranteed. BPAP Chairman Alfredo Ayala said this will need P350 million worth of investments per year. A faculty trainer development program will also be implemented. This will require P150 million in investments.

These initiatives will help in making sure that the country’s outsourcing industry will remain a major revenue generator for the economy. "For the employment and the revenue potential of the industry, we see this as a reasonable investment that the government should consider," Mr. Abad said.

By 2016, BPAP expects that the industry will have 3.15 million job opportunities and post revenues reaching $25 billion.

Source: http://www.bworldonline.com

OFWs seen Coming Home to Work at the BPO Sector

by @ MicroSourcing.com News Feed

According to the executives at the Information Technology and Business Process Association of the Philippines (IBPAP), Filipinos who are working abroad are enticed to come back home and find employment opportunities in the booming information technology and business process outsourcing (IT-BPO) sector.

Local IT-BPO sector's relatively higher pay attracting OFWs back to the Philippines

Joey Gurango, President of IBPAP member-org, Philippine Software Industry Association (PSIA), said since the IT-BPO offers jobs with relatively higher pay, Filipinos working abroad and those who are working domestically are enticed to work in the sector.  

Gurango once worked in the US back in the 1970s and was employed in IT heavyweights such as Apple and Microsoft. He now owns a software company with four employees who have worked in Australia and Singapore.

He said the local IT-BPO sector has lots to offer and all that needs to be done is to inform and educate Filipinos about the vast developments in progressing countries.
Meanwhile, IBPAP President Jose Mari Mercado said all IT-BPO companies in the Philippines have a ‘balikbayan’ and landed a job in the rapidly growing outsourcing industry. In fact, Joyce G. Virata, IBPAP’s Senior Executive Director, said the Philippines provides IT-BPO services to almost a tenth of the global market, and is second to the leading global provider of IT which is India.

The Philippines still leads the global voice services outsourcing segment, accounting for 38 percent of the global market, which could easily grow to two-fifths of the entire voice industry by 2016.


Survey Shows Healthcare Firms Turn to Outsourcing for Support

by @ MicroSourcing.com News Feed

A study created by BlackBook Research revealed that healthcare organizations and private-practicing professionals are shifting towards outsourcing revenue cycle processes while looking for the right revenue cycle management (RCM) platform without having to disburse large sums of their software budget.

According to Doug Brown, managing partner of BlackBook, hospital and physician practices continue to face intense pressure to improve revenue cycle management processes and have found that outsourcing is one of the most useful and greatest solutions to the challenges of the complex and diverse healthcare segment.

The survey revealed that 83 percent of the respondents outsource accounts receivable and collections, 58 percent of hospitals outsource contract management, 68 percent of physician groups with more than 10 practitioners now outsource combination of collections and claims management, and 55 percent outsource denials management.

Brown added that with the anticipated impact of ICD-10, more processes related to revenue cycle management will be outsourced as well. He said claims processing will gain traction as ICD-10 will affect the cash flow of organizations. Eligibility and benefits management and other functions are predicted to see an increase in activity.

CFOs of healthcare providers are closely monitoring their existing service providers. The report indicated that almost 79 percent of health organization financial decision-makers are looking to end contracts with financial and coding technology vendors that aren’t adding value to the company through ROIs. More than 50 percent said RCM outsourcing will improve the efficiency of their operations and finances.

Still, hospital CFOs doubt that outsourcing is a long-term solution, but is the best option for temporary fixes or until new software is selected, bought, and integrated. Other CFOs said they are considering new outsourcing contracts for at least 18 to 36 months.



DBS bank analyzes Philippine peso vs. Indian rupee

by @ MicroSourcing.com News Feed

Southeast Asia's largest bank, DBS, released its Asian Currency Research report on September 24 which involved a cross-analysis of the currencies of leading outsourcing destinations, the Philippines and India. Studies indicated the Philippine peso had appreciated against the Indian rupee during three of the last four years; a trend that is expected to continue in the remaining year.

While India proved more resilient amid the economic recession, it also suffered record trade deficits and growth in the negative on its overall current account. The Philippines, on the other hand, recorded current-account surpluses which, as DBS currency strategist, Philip Wee points out, is the determining factor in the behavior of the peso in comparison to India when attracting business process outsourcing (BPO) investments.

Wee also noted that India will have to increase external loans to compensate in domestic savings shortages:

�Herein lies one important difference between India and the Philippines. When both countries were achieving high growth rates before the global crisis, India's external debt was rising and catching up with its foreign reserves, while foreign reserves were rising and closing its gap with external debt in the Philippines.�

The Philippines was assessed as having a more manageable budget gap of 2.7 percent of GDP in the second quarter of this year (vs. India's 7.3 percent), and a stronger international liquidity position overall.


CBRE: PH BPOs Initiate Decentralization

by @ MicroSourcing.com News Feed

Global property consultancy CBRE Philippines recently stated that the robust business process outsourcing (BPO) sector of the Philippines, which has fuelled property development in secondary sites, could be one of the forerunners of the incoming administration’s decentralization plans.

CBRE Philippines noted that Metro Manila is the leading location of development, but their data showed that investments are being made in Laguna, Cavite, and Pampanga in Luzon. For the Visayas region, developments can be seen in Cebu, Bacolod, and Iloilo, and for Mindanao - Davao and Cagayan de Oro.

CBRE Philippines Chairman and founder Rick Santos added that initially, developers had limited access to locations outside Metro Manila, but national developers have been seen entering these secondary sites in more recent years. He said it could create a domino effect as it will encourage local developers to improve the quality of their buildings, which could lead to more investors, and growth and employment all over the Philippines.

Santos said the key factors that continue to propel the BPO sector are the country’s young talent pool, low cost of labor, low rental rate, notable customer service, and high yield rate.

CBRE identified the BPO sector as the Philippine economy’s star performer, and is showing no signs of slowing down at 17% growth annually. In fact, the entire BPO sector accounts for 7.5% of the country’s gross domestic product (GDP).

Moreover, the firm cited a report from consultancy firm Tholons which included seven Philippine locations outside Metro Manila in the top 100 outsourcing destinations - an indication that secondary cities are ready for BPO development.
CBRE also stated that numerous local developers have tapped land banks and targeted BPO-friendly locations outside Metro Manila to guarantee market share. These locations are known to cost less in terms of rental rates, making them a more cost-effective option for BPO locators.


Rent for Office Spaces still on the Rise

by @ MicroSourcing.com News Feed

The Philippines BPO Office Demand Rises

According to consultancy firm CBRE Philippines, rents for business process outsourcing (BPO) and traditional offices continue to rise, due to strong corporate expansionary demand that typically affects leasing requirements. Rick M. Santos, chairman and chief executive of CBRE Philippines, said in a statement, “We believe this is just the start of the projected up-cycle for the Philippine property market as determined by real demand and strong macroeconomic fundamentals.”

Multinational and local companies’ high demand for office space in Makati and Ortigas is believed to support the increase in rental levels.

Office locations in BPO-dominant business districts of Alabang and Quezon City experience a more aggressive increase in office rents. From January to March, rent for office spaces in Makati increased 2.65% or P809 per square meter, whereas in Ortigas, rent increased to P554 per sq. m.

Monthly office rent in Alabang surged to P501 per sq. m. and P516 per sq. m. in Quezon City. Meanwhile, rates in Bonifacio Global City and Mckinley also grew with an average monthly rent of P698 per sq. m.

Mr. Santos added that because of supply pressures, office vacancy rates decreased even thought rents continue to rise. The most noticeable drop in vacancy rates is in the Fort Bonifacio district which is now at 1.48%, while Alabang is at 3.08%, Quezon City at 2.79%, Ortigas at 2.96%, and Makati at 4.6%.


Providers Predict Rapid Expansion in Global Outsourcing Industry

by @ MicroSourcing.com News Feed

In a recent survey from Duke University's Offshoring Research Network and PricewaterhouseCoopers, service providers think that the demand for the services they offer is rapidly expanding so they are increasing their workforce and adding new service offerings.

Survey results show that 62 percent of 514 providers in 50 countries plan to offer more services. Also, many providers said they expect to start new contracts on IT and software development in the next 18-36 months.

India is still at the forefront when it comes to outsourcing, but new destinations are tapping the global market. "Growing competition has transformed the outsourcing industry into a global race for market share," said PwC Managing Director Dr. Charles Aird. "India's success as the world's back office has motivated other developing countries with well-educated and underemployed populations to seek to duplicate their experience."


Developer Eyes Cebu PH for Additional BPO Offices

by @ MicroSourcing.com News Feed

Megaworld Corporation, one of the Philippines' renowned property developers, is seen bolstering its foothold in Cebu in hopes of tapping new business process outsourcing (BPO) companies. Megaworld, which is led by Andrew Tan, is putting up a P20-billion establishment called the Mactan Newtown project.

According to Megaworld, their 20-hectare Mactan Newtown site is expected to provide at least 150,000 square meters of office space and is set to open its doors in the next three to five years.

Megaworld's first Vice-president Jericho Go said in a press statement that the company is reinforcing projects in Cebu, specifically in Mactan Newtown, because of its potential. He added that they can increase the volume of leasable spaces if there is an increase in demand. Affordable labor and location, large workforce, and proper reinforcement from the local government are some of the factors that make Cebu an attractive location for businesses.

The establishment is projected to produce 40,000 full-time BPO jobs by 2018.


Lowest Activity since 2011 Seen in Indian Services Industry

by @ MicroSourcing.com News Feed

According to the Services Purchasing Managers' Index report done by HSBC, growth in India's services segment gradually decreased last April as demand slowed down. This pushed outsourcing firms to postpone hiring plans.

The Index report, which surveyed 400 companies, dropped to 50.7 last April - the weakest figure during the expansion cycle and lowest since October 2011.

March of this year posted the third straight month of the Index's weakening, and is close to the 50 mark, which is an unfavourable position.

With India being the third largest economy in Asia, and services (60 percent) as its key revenue generator, this type of slump is definitely bad news. The manufacturing segment of the country also declined.

The latest business index was at its highest in January of this year after 18 months. However, it declined to 52.6 in April of this year, from 53.3 in March, also of this year.

Meanwhile, HSBC economist and survey sponsor Leif Eskesen said the stunted growth in new businesses affected the services sector and resulted to slower employment growth.

The crisis in Europe, India's key market, is also affecting the demand for services.


MicroSourcing Opens New Office at Bonifacio Global City

by @ MicroSourcing.com News Feed

MicroSourcing Opens Headquarters in Bonifacio Global City

As part of the company’s expansion to meet the needs of clients, MicroSourcing opened a new office last June 1 at Bonifacio Global City in Taguig.

MicroSourcing’s new office has 200 production seats divided over two work floors, 21 management and shared services seats, two conference rooms, a server room, and a restaurant. It occupies the entire 18th floor of Picadilly Star Building, home to a long list of multinational companies including Mindshare/Ogilvy, InContact, and DOCOMO interTouch.

Bonifacio Global City lies at the center of Metro Manila, right next to the Makati central business district. It is a high-end location with a lot of new luxury residential and commercial buildings. It is the location of choice for most multinational financial institutions such as HSBC, JP Morgan and Deutsche Bank.

The emergence of the new PEZA-accredited building has sparked an increase in the number of business process outsourcing (BPO) companies that are starting to set up their delivery centers in Fort Bonifacio. Moreover, the availability of 24/7 services catering to the average BPO worker is improving rapidly. This further makes the area a very conducive environment for BPO companies.


Accenture Initiates BPO Training for India's Underprivileged Youth

by @ MicroSourcing.com News Feed

In an effort to educate underprivileged youth and enable them to find jobs and contribute to the economy, Accenture will work together with Dr Reddy's Foundation (DRF) and the Nasscom Foundation (NF) to provide training in business process outsourcing (BPO).

For this program, Accenture and DRF will train the facilitators who are selected by Nasscom. After the course, graduates can be hired to work for Accenture.

�Bringing BPO training to disadvantaged youth is part of Accenture's commitment to building skills that will help them sustain their families and their communities,� said Harsh Maglik, chairman and geography managing director, Accenture in India. �This effort is aimed at making a significant, lasting impact on the economic well-being of individuals who might otherwise become marginalized.� Similarly, Jitendra Kalra, CEO Dr Reddy's Foundation, is confident that this initiative of providing BPO training will make a big impact on the lives of underprivileged youth.


PH Predicted to Remain Resilient amidst Economic Woes

by @ MicroSourcing.com News Feed

With the recent market turbulence, debt watchers are certain that the economy of the Philippines will withstand crisis and maintain its credit rating as it possesses strong credentials.  

PH credit ratings unaffected despite unstable global economic environment

According to financial services companies Standard & Poor’s (S&P) and Fitch Ratings, the Philippines can hold out through the unstable global economic environment.

Agost Bernard, a credit analyst at S&P, confirmed that the credit ratings of the country will not be affected.

Meanwhile, Andrew Colquhoun, Head of Fitch’s Asia-Pacific Sovereigns, said the country can endure critical issues such as the plans of the US to retract grants and provisions.

However, it was observed that investments that helped Asia to grow are now seen in the US and are being utilized as tools to improve interest rates in the country.

Moreover, Colquhoun said the country is able to pay off its external obligations with the massive current account surplus that grew since 2003. For this year’s first quarter, the surplus reached $3.4 billion. The Philippines’ revenues from other segments such as remittances, exports, and business process outsourcing (BPO) were able to underwrite its total balance of payments (BOP) as of May, which reached a surplus of $1.884 billion.        


PH Peso Seen to Retain Stability

by @ MicroSourcing.com News Feed

Even with the looming difference in monetary policies overseas, the International Monetary Fund (IMF) predicts that the Philippine peso will maintain its stable position.

Shanaka Jayanath Peiris, IMF’s resident representative, said the Philippines will be in a better position compared to other countries as it currently possesses a strong account surplus and ample foreign reserves.  

According to data from Bangko Sentral ng Pilipinas, in the past four months, the peso was seen averaging at 44.421:$1, higher than the 44.395:$1 average posted over the same period last year. The institution also revealed that the local unit is stirred by the uncertainty in international oil prices, as well as the pending rate increase of the US Federal Reserve.

The Philippines’ current account surplus reached $12.6 billion last year, from $11.4 billion in 2013. The country’s current account reflects its health and is composed of its exports, imports, earnings from the business process outsourcing and tourism industry, and remittances from Filipinos working abroad.

BSP data also showed that gross international reserves reached $80.799 billion in April, which is equivalent to 10.6 months’ worth of the country’s imports of goods and payments of services and income.

IMF’s recently released Regional Economic Outlook for Asia and the Pacific indicated that the various monetary policies across developed countries are driving the rate changes in the region.


Eastwood City Cyberpark Remains No.1 IT Park in the Philippines

by @ MicroSourcing.com News Feed

Eastwood IT Cyberpark

In terms of employment figures and salaries, Eastwood City Cyberpark in Quezon City is still the number 1 IT park in the country. This is based on the data from the Philippine Economic Zone Authority (PEZA).

In 2010, Eastwood City Cyberpark’s PEZA-registered locators employed 19, 395 individuals. This is a 15 percent increase from 2009 figures and is the highest number among all registered IT parks in the country. On the other hand, the salaries and wages paid out in PEZA-registered firms reached Php7.93 billion, a 15 percent increase from Php6.72 billion posted in 2009.

Eastwood City Cyberpark also posted an increase in the exports category, reaching US$354.19 million from its companies that belong to the outsourcing and offshoring industry.

Jericho Go, FVP for Business Development of property developer Megaworld Corporation, shared this recognition to the cyberpark’s locators and partners that contribute to achieving the goal of providing career growth opportunities for Filipino employees.




Surge of BPO Seen as ICT Milestone in Arroyo Administration

by @ MicroSourcing.com News Feed

During the Gloria Macapagal-Arroyo administration, the Philippines had witnessed a dramatic surge of the BPO industry and improvement in the Information and Communication Technology (ICT) sector. This is according to Ray Anthony Chua, Chairman of the Commission on Information and Communication Technology (CICT).

The BPO industry has been a key driver for economic growth. Chua said the industry registered more than US$7 billion in export revenues in 2009. Having been recognized twice by UK's National Outsourcing Association as the Offshoring Destination of the Year, the Philippines has already made its presence known as one of the leaders in the field of ICT. "Now we are seen as the number 2 player in the world next to India which is something for a country of our size and our level of development." The industry currently employs approximately 500,000 workers.

Chua added that the first automated elections held last May and the initiative of providing computer laboratories in 5000 schools are other ICT milestones under Arroyo's watch.


Major US Firm to Set Up Shop in PH

by @ MicroSourcing.com News Feed

Emerson, a renowned industrial and consumer products manufacturer in the US, is set to invest P2 billion in Manila to expand their business process outsourcing (BPO) operations.

According to George Mulligan, Emerson's Shared Services General Manager in Manila, they are investing nearly P2 billion for facilities and long-term leases for the expansion of their BPO operations. He added that Emerson is planning to make more investments in Manila and continue operating in the country for many years.

He noted that on top of the initial investment, there will be outlays for human resource development, training, and long-term lease contract between Emerson and Cybergate Plaza in Mandaluyong City until 2024.

The company currently has 12,000 employees in the Philippines, with 3,225 candidates in the shared services sector.


KPMG Sees Shift in Outsourcing Landscape

by @ MicroSourcing.com News Feed

The demand for outsourcing services is nowhere near slowing down, and KPMG Director Claudio Altini sees that the format of the outsourcing industry continues to evolve. Gone are the days when cost reduction was the only reason companies outsource business processes, because they are now looking for higher value for their money. Even with the depressing condition of Europe's economy, outsourcing is still seen as a viable business solution.

Companies are now more cautious when it comes to selecting providers and are going beyond margin and overhead issues. Altini said customers are looking for rates, results, and responsibilities, which vendors can use as a pattern for business proposals. He adds that companies are looking for flexible terms that can be changed as the company expands. They are also seeking solutions that are suitable for the needs of the company, without going over budget.

The cheapest outsourcing deal is no longer attractive nowadays. The best way to land decent deals is to simplify and innovate processes according to the needs of the client.


Google Penguin 3.0 Algorithm – Facts, Disaster and Reliefs

by Mohnesh Kohli @ Mohnesh Blog

Google rolled out penguin 3.0 on Friday night (October 17th, 2014) after a gap of more than a year and still the full update is not complete. Google first penguin algorithm was launched on 24th April 2014 to fight against the spam link creating techniques used by webmasters, SEO and owners of website to get […]

The post Google Penguin 3.0 Algorithm – Facts, Disaster and Reliefs appeared first on Mohnesh Blog.

How to Leverage SEO Techniques to Acquire Free Traffic from Google

by Matthew Capala @

Invisibility is a fate much worse than failure. In this discussion Matthew Capala speaks on how the role of SEO is important when optimizing your website with keyword mapping and authority backlinks. Technical audits will identify all the weak areas in your performance. While starting a new website, pick a couple tried and proven SEO tools/platforms to […]

The post How to Leverage SEO Techniques to Acquire Free Traffic from Google appeared first on .

Industries that Give the Highest Bonuses in the Philippines

by @ MicroSourcing.com News Feed

In the Philippines, companies are required to provide 13th month pay to employees, but are not mandated to give out Christmas bonuses. However, companies in certain industries allot funds for bonuses, but the amount differs depending on the organization.

Call center industry included in Bonus Report

Data from the 2014 Bonus Report done by Jobstreet.com Philippines indicate that the banking and finance industry gives the biggest regular bonuses. The next generous industry when it comes to bonuses is the business process outsourcing and call center industry, followed by manufacturing, food and beverage, and real estate.
The report revealed that these industries give up to 17th month in bonuses on top of the mandatory 13th month pay. These bonuses are given throughout the year.

Eileen Camrill-Go, Marketing Communications Manager of Jobstreet.com said if job seekers want to earn big, they should go for these industries.

For some employees, working in these industries is not always about the money. They stay or they choose to work in the company because of the management and stability.
The Employers Confederation of the Philippines said giving out salaries and bonuses should not just be scheduled during Christmas. Also, employers should prioritize the health, well-being, and future of the employees.


PH Call Centers to Increase Targets

by @ MicroSourcing.com News Feed

According to Benedict Hernandez, President of the Contact Center Association of the Philippines (CCAP), growth projections for the sector will be overwhelming due to the fluctuating foreign exchange rates. He said whenever India becomes a less expensive outsourcing destination because of the fluctuating currency, call center companies don't make a fuss over it. Before, CCAP's initial targets were 15-20% for employment and 10-15% for revenues. Now, the organization's predictions for the sector are 18% for revenues ($10.4 billion) and 586,000 jobs.

Moreover, the executive projected that by the end of 2016, the industry will employ 915,000 Filipinos and post revenues of $16.3 billion.

The key segments that are said to fuel growth in the sector are traditional voice processes and healthcare information management, especially now with the US' shifting healthcare sector.

The CCAP executive explained that the shift in the healthcare system of the US will be beneficial to the Philippines since the country is identified to have many qualified medical practitioners, doctors, and nurses.  

Hernandez explained during his presentation at the International Contact Center Conference and Expo (ICCCE) 2013 that the Philippines is poised to benefit from the changing ways healthcare companies in the US care for patients. In addition to that, he said the Philippines is a unique destination for health information management because it has all the factors that make it a suitable player in the industry.

Meanwhile, TJ Singh, Vice-president for Research at Gartner, said the Philippines has indeed made its mark in the business process outsourcing (BPO) sector, but has to reinforce its position in the global market as a global delivery services provider.


Study Shows Sectors Spending More on IT Outsourcing

by @ MicroSourcing.com News Feed

Industries spending more on IT outsourcing

According to a study by sourcing advisory firm TPI, international sectors like retail, manufacturing, telecoms and media in Europe, the Middle East, and Africa (Emea) increased spending on IT outsourcing on the three quarters of this year compared to the whole period of 2010.

For this year’s third quarter, the manufacturing industry posted €1.5bn in IT outsourcing spending, compared to only €1.4bn in the same period last year. Consequently, for the first three quarters of 2011, the sector spent €5.8bn compared to €5.6bn in all of 2010.

As for the retail sector, it had already invested €1.4bn. This was higher than the figures posted last year.
On the other hand, the financial services industry, the sector that posted minimal spending in 2010, has reduced expenditures on IT outsourcing services, spending only 48% of last year’s total. According to TPI, during the third quarter of 2011, Emea financial services sector invested €1.6bn in IT outsourcing, a far cry from the €2.7bn of 2010. Reduced IT spending was also seen in energy, healthcare, and pharmaceutical sectors.

According to Martyn Hart, Chairman at the National Outsourcing Association, IT outsourcing has become a way for sectors like retail to maximize efficiency and entice consumers. A significant increase in outsourcing activity was seen in the retail sector as companies aim to be more competitive through advanced IT solutions and upgraded infrastructure that outsourcing can provide at low risk.


Davao Aims to Tap Non-voice BPO Sector

by @ MicroSourcing.com News Feed

Knowing that the non-voice BPO sector is growing in the global market, the Top Next Wave City is looking at expanding service offerings to include non-voice processes.

Davao has requirements needed in the BPO industry

Davao got the number 1 spot in the Top Ten Next Wave Cities list of the Business Processing Association of the Philippines (BPAP) and the Commission of Information Communication and Technology (CICT). Jason Magnaye, head of the Davao City Investment and Promotions Center, said the city has communication facilities, infrastructure, and manpower needed in the industry. He added that investments do not come to the province because clients are not interested in expanding operations outside Metro Manila, that is why they are focusing on the strong points of the city to attract IT investors.

According to BPAP, 20 outsourcing firms operate in Davao, with workforce consisting of 8,500 employees.



Another Anti-offshoring Bill Proposed in the US

by @ MicroSourcing.com News Feed

US Representative Tim Bishop (D-NY) recently revealed The United States Call Center Worker and Consumer Protection Act of 2013, which is similar to the anti-offshoring act he proposed back in December 2011, but failed to garner votes.

The new bill, also known as "Press 1 for America", targets offshore call centers working on behalf of companies based in the US. However, industry experts predict that it will have little impact to buyers and suppliers in the voice services sector.

It is a regulation that aims to mandate call center workers outside the US to state the country they are calling from and give customers the choice of being transferred to a US-based call center representative. The bill also has provisions for the US Department of Labor to provide a public list of businesses that subcontract call center services abroad to disqualify them from grants, loans, and other federal exemptions and discounts for three years.

Meanwhile, Atul Vashistha, CEO of offshoring consultancy NeoAdvisory, said it will impact organizations involved minimally and he predicted that the bill will catch on. Thus, he sees several threats that could lead to additional costs for buyers and providers, and cause problems to the customer service process.

Adam Luciano, the principal analyst who oversees call center outsourcing for HfS Research, also shared his thoughts on the matter, saying the legislation could result to an increase in investments for US-based call centers and rise in the number of local agents working from home. This could then lead to stability between offshore and domestic sourcing. He also said there's a small chance that the bill will be approved.


4 Things to Consider Before You Outsource SEO

4 Things to Consider Before You Outsource SEO

Alexa Blog

Doing SEO yourself can seem like a daunting task, so many people consider outsourcing. But before deciding to outsource SEO, there are 4 things to consider.

Companies can Benefit from Outsourced Contact Centers

by @ MicroSourcing.com News Feed

Outsourcing can be beneficial for companies when it comes to making contact center operations more efficient and aligning processes with business goals. This is according to The Contact Centre Business Transformation report by business information and market analysis firm Datamonitor.

With outsourcing, companies will be able to reduce expenses in infrastructure and operational costs, while improving service delivery and eliminating business risks. "In light of escalating costs and service demands we are seeing a focus on new and innovative contact centre operating models," said Peter Ryan, Datamonitor's lead analyst for call centres and business process outsourcing.

Teleperformance UK's Chairman and Chief Executive Jeff Smith said that companies with outsourced contact centers and operating within a reduced budget can also maintain communication with their customers.


RP BPO Firms Set to Expand Workforce this Year

by @ MicroSourcing.com News Feed

Expansion Plans seen in Outsourcing Provider in the Philippines

In a survey conducted by the Business Processing Association of the Philippines (BPAP), executives of BPO companies said they are going to expand their workforce from 6-50 percent and offer more complex services this year.

“First, we see a return to optimism and better prospects for rapid growth. Second, the industry is more than just recovering from slower growth in 2009. It is diversifying and transforming as a result of increased demand for non-voice and more complex services,” said BPAP head Oscar R. Sañez.

However, many survey respondents are worried that the tight labor market may hinder their expansion plans. Thirty-four percent of BPO executives said that lack of enough qualified workers is their primary concern, and the upcoming elections may affect buyer perception.

A total of 160 BPO executives participated in the survey which was conducted early this year.


Outsourcing Contracts in UK Increase, ACVs Decline

by @ MicroSourcing.com News Feed

A 16-percent increase in commercial outsourcing contracts from the government, valued at �4 million (�3.4 million) or more, was seen last year, according to Information Services Group's (ISG) EMEA TPI Index. More than half (55 percent) of outsourcing deals from the government sector last year - worth �4 million and above - are from public sector accounts.

Meanwhile, ISG Director Luke Mansell said more from the public sector are recognizing the advantages of multi-sourced deals by selecting several niche-based providers that are identified to excel and contribute more to organizations, rather than contracting large deals with a single provider. Moreover, this prompted service integration and management to increase as well.

One of the key processes subcontracted by the public sector is the Work Programme of the Department for Work and Pensions. It aims to provide jobs to the unemployed - through 18 prime providers. Other processes include procurement, IT and HR services subcontracted by Barnett Council.


UK Firms seen more Selective in Outsourcing

by @ MicroSourcing.com News Feed

Study Shows UK Firms more Picky with their Outsourcing Partners

The outsourcing market in the UK is becoming stricter in selecting their outsourcing partner, according to a study by Whitelane Research, a European outsourcing market analyst. The report showed that 13 percent of businesses are either looking forward to decreasing the use of outsourcing, or sourcing processes internally. Furthermore, 20 percent out of the 700 active outsourcing contracts will not be renewed.       

Jef Loos, head of sourcing research for Whitelane’s European sector, stated that the report generated unexpected results. For instance, he was surprised that nearly 50 percent of the contracts have already been going through renegotiations, and 80 percent of which were able to improve expenses, terms and conditions, and overall quality of services.

Loos said this is proof that British outsourcing buyers are now more careful and that outsourcing service providers are retargeting their leads.

Whitelane also said clients should consider mergers and acquisitions in the service provider side, with several activities such as Atos’ purchase of Siemens SIS, Vodafone taking over Cable & Wireless at the forefront.

Meanwhile, Loos and the rest of Whitelane recommend that buyers who are satisfied with their current partners should renew and renegotiate contracts with their current provider for them to avoid transition expenses. Suppliers, on the other hand, should strive to maintain their contract to stay away from costly tendering processes, and use surplus to offer their patrons discounts.


WB Says PH to Continue Steady Growth

by @ MicroSourcing.com News Feed

The economy of the Philippines will continue to grow steadily for 2011 and 2012, says the World Bank (WB) in its latest Global Economic Prospects 2011 report.

The report, which the WB publishes twice annually, estimates that the country’s 6.8 percent growth in 2010 will stabilize to 5 percent in 2011 then 5.4 percent in 2012.

GDP growth stronger than expected

During the launch of the GEP 2011, Eric Le Borgne, World Bank Senior Economist for the Philippines, commented that, "GDP growth has been stronger than expected, reflective of rapid recovery and election-related spending amidst a strong external position which has led to a sovereign credit rating upgrade in November by Standard and Poor's."

The senior economist explains that the continued economic growth of the Philippines relies on the assumption that the strong investor confidence will be supported by the government in much-needed reforms and in improving the overall investment climate.

Although the country faces risks from the economic downturn of developed countries, Le Borgne says the outlook for the country’s top performing sectors remains positive. The electronics and semiconductor sector will remain strong, while the services sector, led by the business process outsourcing (BPO) industry, will continue to grow, explains Le Borgne.


Growth of IT-BPO in the Philippines

by @ MicroSourcing.com News Feed

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.


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IT Leaders Prefer Long-term Deals

by @ MicroSourcing.com News Feed

UK-based IT analyst firm Ovum recently revealed through its "2013 Trends to Watch: Bundled Outsourcing" report that IT buyers prefer longer-term, single supplier IT outsourcing deals. This can be attributed to the fact that multi-sourcing contracts didn’t live up to its premise and IT outsourcing clients are looking for more stability and control.

Longer-term, single-supplier IT outsourcing deals preferred by buyers

According to Jens Butler, principal analyst for IT services at Ovum, buyers nowadays are already experienced and know well enough when a plan will not work when it comes to outsourcing, as they are on their third and second generation of doing so. He added that most of the clients saw that multi-sourcing will ignite loss of control.

Moreover, he said clients are looking beyond cost savings, and want to improve customer satisfaction and value for the company.

Ovum also monitors packaged outsourcing activities periodically. They found that international contracts from manufacturing, financial services, and the government sector go beyond four years. Furthermore, the change from multi-sourcing to long-term contracts was widely observed in the insurance sector.


Indian IT-BPO �Disappointed� with Union Budget

by @ MicroSourcing.com News Feed

The IT-BPO industry of India was disappointed with the imposition of the 18.5% Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) and stoppage of tax breaks in the Software Technology Parks of India (STPI), as mentioned by Finance Minister Pranab Mukherjee in his budget speech. These are both negative news for the $76 billion industry of the country, according to IT software industry body National Association of Software and Services Companies (Nasscom).

Small and medium-sized IT firms in STPIs are allowed to have a 10-year tax holiday with the goal of encouraging export-oriented economic growth.

Keshav R. Murugesh, Group CEO of WNS Global Services said government support is crucial to keep the current position of India in the global outsourcing market. He added that other outsourcing destinations such as China and the Philippines can pose a threat to India's BPO advantage as they enjoy support from the government in terms of tax benefits.


Regulations Push AU, NZ CIOs to Outsource

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NZ and AU CIOs Prefer to Outsource App Development and Testing

With the continuous changes in legislation and industry standards when it comes to an organization’s mainframe applications, it was found that almost  one-third of CIOs in Australia and New Zealand prefer to outsource processes such as application development and testing.
A study commissioned by Micro Focus shows that in all development and testing markets, the US takes the lion’s share with 62 percent, followed by the UK with 40 percent. More than 500 respondents were from around the world, while 50 were from Australia and New Zealand.

Regarding the compliance issues faced by firms in Australia and New Zealand, 50 percent said it is very likely that the original knowledge of their mainframe and supporting data structure are no longer in the organization.

Furthermore, almost three quarters (74%) declared that documentation on their processes is incomplete.

The study also shows that 49 percent of ANZ CIOs who are aiming to comply with new regulations contractually pass legal responsibility for data security and privacy requirements to the outsourcing providers, while18 percent said they are planning to do the same.

Derek Britton, Director of Product Marketing at Micro Focus, said organizations are having a hard time addressing compliance issues because of unclear records. In fact, 23 percent of CIOs have indicated that they are not able to change application compliance internally because their records are not organized.


PH BPO still Driven by Call Center Segment

by @ MicroSourcing.com News Feed

Call Center Industry of the Philippines Continue to Thrive

The recent report of the Philippine Statistics Authority (PSA)-National Statistics Office states that for 2012, the call center segment posted the fastest growth rate and was the largest in the business process outsourcing (BPO) sector of the country.
According to 2012 Census of Philippine Business and Industry for BPO posted at the website of PSA, 404 call centers operated in 2012, which is 49.8 percent of the 818 companies across the entire BPO sector.

The voice segment also has the highest number of employees with 364,454 as of Nov. 15 last year, or 83.5% of the cumulative 436,500 in that period. As for earnings, the segment posted P249.873 billion in revenues, or 73.8% of the P338.179 billion from the entire BPO sector.

As for establishments, call center operations were followed by computer programming operations with 243 establishments or 30%. Data processing, on the other hand, had 51 setups or 6.3 percent, and other services related to information technology (IT) taking up 31 operations or 3.8 percent. Meanwhile, medical transcription accounted for 3.2 percent or 26 operations.



PH Cities Join Top Outsourcing Hubs in the World List

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The Philippines is one of Top Outsourcing Hubs in the World

According to the recent ranking of top outsourcing destinations in the world from Tholon’s, an investment advisory firm, Manila placed second, outpacing one of India’s strongest cities - Mumbai.

Cebu, another city in the Philippines, took the 8th spot. Other Philippine outsourcing hubs were also included in the top 100 list: Sta. Rosa, Laguna, Davao, Iloilo, Bacolod, and Baguio.

Meanwhile, other reports indicated that the demand for manpower in the business process outsourcing (BPO) industry is rising, and it is looking to target 1.3 million full-time Filipino employees by 2016.

However, in order for the industry to reach its target, they would have to address a number of challenges first. Gillian Joyce Virata, Senior Executive at the IT and Business Process Association of the Philippines (IBPAP), said applicants are screened based on their critical thinking, computer know-how, and good command of the English language. In fact, for every 100 BPO applicants for entry-level positions, only nine applicants pass the initial exams and interview. Twenty to 40 of the 100 are subject to training while the rest are rejected due to lack of the needed skills.


How to Use Majestic SEO’s Trust Flow Metric

by Nathan Gotch @ Gotch SEO

Majestic SEO’s Trust Flow is the king of link metrics in 2017. I’m going to show you how you can use this metric for analyzing your competitors, for perform link audits, and for link prospecting. Let’s jump right in. Why Trust Flow is King As it stands right now, Google will likely never update PageRank […]

AU BPO Driven by Document Management

by @ MicroSourcing.com News Feed

According to a study done for the Australian Business Process and Outsourcing Association, most business functions sent out by Australian companies are related to printing/document management, propelling the country's business process outsourcing (BPO) sector.

Forty-four percent of the 216 companies that participated in the study stated that they are currently outsourcing at least one business process. Print and document management (PDM) is the top business process being outsourced by Australian firms (18%). This was followed by human resource (HR) process at 15%, which is predicted to grow 23 percent in a year or so, and finance and accounting (F&A) at 13%.

The report also states that BPO transactions from large Australian companies employing 1,000 to 5,000 workers will definitely increase. This group accounts for one-third of the survey participants.  

Russell Ives, Director of Global Process Services at IBM Growth Markets, said the report clearly shows that Australia's BPO industry has indeed evolved and diversified over the past 10 years. Outsourcing has become more than just a tool to cut costs - it has enabled companies to improve business strategies.
Ives also noted that business executives are looking into the benefits of outsourcing which include improvement in financial flexibility, better feedback from customers, more opportunities, tapping new markets, and maximizing of prospects.

Aside from the traditional business processes in outsourcing, the adoption of the cloud is now increasing as 35 percent of the companies are considering the use of the cloud. Furthermore, 15 percent have already integrated cloud computing as an outsourcing strategy.


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PH IT Industry Suffering from Stronger Peso

by @ MicroSourcing.com News Feed

Valuation of Philippine Peso hurting IT Industry

According to Paco Sandejas, Managing Partner at Narra Venture Capital, even with cumulative efforts to balance the currency strength, the information technology (IT) industry is struggling along with other major sectors.

He cited during an interview with ANC’s Inside Business that for manufacturing software and electronics, the margins are very narrow. The slightest change in exchange rate, 10 percent for instance, will induce a negative effect. He added that there’s already a five-percent irregularity in the local currency.

Last year, the peso closed at P41.05 a dollar, and recently, it finished at P40.585:$1.

Sandejas explained that the IT sector should look into offering new products and innovation to counter the valuation of the peso.

The peso was also seen appreciating by six percent last year, from 2011’s P43.84 to $1.

Other segments affected by the stronger peso are the business process outsourcing (BPO) industry, exports segment, and has also dampen the spending power of the families who depend on remittances from overseas Filipino workers.


BPOs in Visayas Stop Operations during Typhoon Haiyan

by @ MicroSourcing.com News Feed

According to Jose Mari P. Mercado, President of Information Technology and Business Process Association of the Philippines (IBPAP), business process outsourcing (BPO) companies in the Visayas region were temporarily halted to ensure the safety of employees who are seriously affected by the super typhoon.

Typhoon Yolanda, known globally as Haiyan, is reported as the world's strongest typhoon to hit land. It battered the Visayas region and some parts of Luzon.

Cebu and Iloilo are the outsourcing hubs in the Visayas region that were hit by the super typhoon. Although Mercado said they still have no concrete data on the extent of the damage left by the typhoon, they are sure that these hubs were affected.


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Anti-Cybercrime Law Expected to Boost PH BPO

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Anti-Cybercrime Law to Attract more BPO Investors to the Philippines

The Business Processing Association of the Philippines (BPAP) lauded the passing of the Cybercrime Prevention Act of 2012 as it is anticipated to boost investor confidence and the business process outsourcing (BPO) sector of the Philippines.

The bill was signed into law by President Benigno S. Aquino III last week, which became Republic Act No.10175. The ruling aims to penalize those who are involved in child pornography, online libel, hacking, cybersquatting, identity theft, etc.

Also, the Data Privacy Act was recently signed into a law which strives to protect personal data collected by private and public organizations.

According to BPAP President Benedict Hernandez, the Cybercrime Prevention Act will reinforce the country’s image as a strong player in the high-valued IT-BPO arena. He noted that the provision will be especially beneficial to IT-BPO firms in the country, as most of its processes and information depend on the internet.

Moreover, Hernandez stated that a 20-percent increase in revenues from $11 billion in 2011 to $13 billion this year is expected for the sector and that these developments will help the overall growth of the Philippine IT-BPO industry.


Rivals Force Indian BPOs to Establish Global Delivery Centers

by @ MicroSourcing.com News Feed

As offshoring destinations like the Philippines gain traction and onshoring activity in Latin America picks up, business process outsourcing (BPO) companies in India are forced to focus on global delivery models and set up new overseas delivery centers.

BPO firms shift to nearshoring

Nearshoring is also picking up. According to Deepak Patel, CEO, Aditya Birla Minacs, a BPO firm needs to have both nearshoring and offshoring solutions in order to stay competitive.

Industry experts said this shift to near-shore option can be attributed to the fact that from low-cost business models, new ones now focus more on value instead of cost. This is another factor that pushes Indian BPO firms to set up new global delivery centers. “The next-generation business models are no more about cost, but value. Just because something is cheaper does not mean it has value,” Patel said.




ADB Says PH Shouldn't Depend on BPOs

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Philippines Should Expand Beyond BPO

The Asian Development Bank (ADB) said depending too much on the services sector, specifically business process outsourcing (BPO), in the Philippines will not drive growth, contrary to what the government was saying in its inclusive growth plan.

It is apparent that the country is still troubled with the high unemployment rates, even if the BPO sector began to grow incessantly from 2001, said ADB senior country economist Norio Usui. He added that there are two important prerequisites to simplify the country’s growth. These are services and manufacturing.

In Usui’s recent presentation at the Federation of Philippine Industries (FPI)-organized First Philippine Manufacturers and Producers Summit, he said that the Philippine economy will not grow without manufacturing. This, together with modern services, will drive economic growth.

He later on added that even if the BPO sector has grown into a $10-billion industry, contributed 4.8 percent average economic growth, and employed half a million people from 2000 to 2009, there is low activity in the manufacturing sector. Also, investments are believed to have weakened because the country focused too much on services. Moreover, Usui said that while the BPO industry greatly helps the economy, it only provides job opportunities to those who have proper education.

According to Josef T. Yap, President of the Philippine Institute for Development Studies (PIDS), the contribution of the country’s manufacturing sector to the GDP dwindled to 21.4 percent in 2009 from 22.2 percent in 2000 and 25.7 percent in 1980.

Manufacturing sectors in other countries in Southeast Asia reinforced economic growth. In fact, Indonesia’s manufacturing GDP increased 26.4 percent in 2009 from 13.5 percent in 1980. Thailand’s sector grew from 21.5 percent to 34.1 percent. Malaysia also posted an increase - from 21.6 percent to 25.1 percent.  


Why Your SEO Isn’t Working & Other Internet Marketing Updates

by David Jenyns @ Melbourne SEO Services

Do you ever come to Chapel St, Prahran? (if you live in Melbourne that is). You should come visit our new studio… it’s pretty cool. Here’s a photo from Australia’s first Sales Hacker event held here last week: Is it just me or has the last 3 months gone pretty quickly? It’s been more than […]

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PH BPO Workers Must Save for a Rainy Day

by @ MicroSourcing.com News Feed

Financial Advice for the BPO Workforce of the Philippines

According to one of Sun Life-AIM’s financial planners, Joyce Tankeh, the younger group of business process outsourcing (BPO) workers is noticeably spending more because of their larger than usual salaries. A fresh college graduate who is working in the industry can earn at least P20,000.

Tankeh said BPO employees should create their own analysis of the benefits that they receive from their companies so they can at least make estimates for their future. This is really important because not all BPO firms offer retirement packages.

The financial planning expert added that this particular group needs to have goals. For instance, a short-term goal could mean a new gadget or an out-of-the-country trip. Another type of goal is medium-term, which could be buying a house or a car. The last one is the long-term goal which basically focuses on retirement.

Early retirement was also discussed by Tankeh. She said it’s a popular decision among her clients who are in their 20s. She concluded that apart from setting goals, BPO employees should work on a strategy in achieving them, which includes being frugal.


Increase Your Websites Conversion Rates

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6.7% Growth Predicted for PH this Year

by @ MicroSourcing.com News Feed

According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), growth of the Philippine economy will be slower this year at 6.7 percent from 7.2 percent posted last year. However, the Philippines posted the strongest growth compared to its Southeast Asian counterparts.

UNESCAP advised the country to beef up its revenue collection to achieve the targets. Efforts such as new policies that can improve domestic resource mobilization should be implemented. This would include new improvements in the way taxes are collected and distributed so that tax evasion and tax fraud can be avoided.

Last year, the Bureau of Internal Revenue (BIR) was able to collect P1.217 trillion in tax revenues, which is 15 percent higher than 2012's P158.72 billion. However, figures in 2013 were lower than the initial target.

Another recommendation stated by the UN body is more fiscal space for social services like education, health, and social protection. These, in turn, are expected to help further boost the local economy.

Meanwhile, the deficit in the trade industry was buoyed by strong dollar exchange from remittances, business process outsourcing (BPO) revenues, and tourism receipts. Account surplus surpassed the gross domestic product (GDP) by 3.5 percent.

The Philippines is also ranked as one of the countries in Southeast Asia to have increased the share of national income to the poorest 20 percent of its population.


BPO to Play a Huge Role in PH Growth Plan

by @ MicroSourcing.com News Feed

BPO sector huge factor in PH economic growth

President Benigno Aquino III’s Philippine Development Plan strategy (PDP 2011-2016) highlights the business process outsourcing (BPO) sector as a huge factor in the country’s economic growth.  Cayetano Paderanga, Director-General Secretary of the National Economic Development Authority (NEDA), said that some industries were overlooked in previous economic growth reports.

President Aquino’s strategy for the country includes “Social Contract with the Filipino People”, focusing on “Good Governance and Anti-Corruption” to “Achieve Inclusive Growth, Create Employment Opportunities, and Reduce Poverty.”

Paderanga said during the PDP’s visit in Davao City, the BPO industry can help the country achieve the growth goal. In an industry that is rapidly growing, it is no longer right to say that BPO is only about call center work. He added that the sector has actually diversified when it comes to service offerings such as backroom operations and graphics.

Also, BPO hubs have emerged in other locations aside from Metro Manila. These include cities like Cebu, Davao, Cagayan de Oro, and even Pangasinan. Panderanga also said that provided that a location has good educational institutions, BPOs will definitely develop in the area.


US Firms Urged to Bring Jobs Back rather than Outsource Offshore

by @ MicroSourcing.com News Feed

With the elections approaching, US President Barack Obama is trying to bag more votes and hold the presidential position for the second time by targeting the middle class segment through creating an advocacy against firms that are outsourcing jobs overseas. The US president is making an effort to bring jobs back home and even gave his word in assisting other business owners who would do so. He is also planning to create a program that he hopes will attract investors to the country.

Based on federal official comments, the Obama government is expecting an increase in employment opportunities in the US and attracting companies to not only invest and source jobs locally, but also to make use of US-based factories and plants.

There has been an ongoing debate about US companies that are moving jobs overseas, particularly to Asian countries like China and India where costs of labor and infrastructure are relatively lower. Ohio and Michigan are some of the industrial provinces that are significantly affected by reduced job opportunities in the manufacturing sector.

Republicans who have repeatedly countered the Obama administration were the ones who said that Obama's regulations regarding outsourcing will be the solution to the unemployment rate in the country. In fact, a study released last Friday states that the unemployment rate fell to more or less 8.5%, the lowest within the past three years.


DTI Promotes PH BPO, Products to European Countries

by @ MicroSourcing.com News Feed

A list of Philippine products was recently prepared by the Department of Trade and Industry (DTI) which is set to be showcased in select European countries.

BPO services included in list of products with marketable potential

Products included in the list are said to have strong marketable potential. It includes processed fruits and marine products, organic food, auto parts, high-end garments, giftware, home furnishings, and business process outsourcing (BPO) services.

Seven European countries that have viable sectors for promotion were also listed down by the DTI’s Bureau of Export Trade Promotion Group.

One of the countries cited in the list is Germany, where a growing demand for bio-coconut products, as well as design-driven products such as furniture and houseware is seen. Although the footwear and garments segment has been described to have marginal prospects in the Eurozone, German firms Ariston Nord West Ring Schuh for shoes and Katag AG are expected to explore suppliers from the Philippines.

The report also said other sectors have long been promoted in Germany. These are BPO, Knowledge Process Outsourcing (KPO), and Intellectual Property.


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Beware Of End Of Year Fluff Posts On SEO

by Matthew Egan @ Inbound Zen

So close to Christmas and the end of 2014 many websites have been inviting us to contribute tidbits to articles about how SEO will change in 2015 and what businesses can do to be ready. These fluff posts are fun, … Continue reading

Report Shows Economic Impact on Outsourcing Recruitment

by @ MicroSourcing.com News Feed

Recruitment process outsourcing report findings

Based on the research report “RPO in 2009: Driving Cost and Quality Improvements” by Aberdeen Group, a Harte-Hanks Company, those companies which outsource recruitment are reaping significant performance gains in key cost, quality, and efficiency. Substantial gains include cost savings, increased hiring manager satisfaction, decrease in time-to-fill, and improved new hire retention.

According to Jayson Saba, Senior Research Associate and co-author of the report, the findings will enable them to determine if recruitment process outsourcing (RPO) is a valid option for organizations. The report also shows that organizations which seek gains in their recruitment quality and efficiency must consider RPO.

The said report focuses on the policies and processes that organizations implement to manage RPO initiatives, especially during the global economic downturn.


Latest Investment Upgrade to Fuel PH Economy

by @ MicroSourcing.com News Feed

The investment-grade rating given by Moody's Investors Service to the Philippines will help in maintaining the country's strong growth momentum.

According to Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr., the potential for growth trumps the risks for the economy of the Philippines. He also noted that apart from the investment grade rating, the outlook is also positive amid the global financial issues.

With the strong growth of the Philippines, the improved fiscal management of the local administration, balance of payments, and debt ratio are also seen as crucial factors that contributed to the upgrade.

For the first half of this year, the country grew 7.6 percent which was one of the fastest in the region. Moreover, the debt-to-GDP ratio declined and the balance of payments posted a surplus as well.  

Tetangco also cited the reduced foreign loans of the country brought on by forex from OFW remittances and the business process outsourcing (BPO) industry which have helped balance the country's spending.


BPO Firm Says Training is Crucial to Sustain Growth

by @ MicroSourcing.com News Feed

According to TeleDevelopment Services Inc. (TDS), the business process outsourcing (BPO) industry must focus on providing training to supervisors or frontline leaders. This is to improve productivity and sustain the growth of the industry which is estimated to increase by 25 percent this year.

More sophisticated BPO and KPO services

“The industry is growing to the tune of 2,000 new hires every week. It’s going to grow in ways we’ve never seen over the last few years in terms of more sophisticated BPO and knowledge process outsourcing services,” said TDS President Jon Kaplan. He added that supervisors can have a key role in minimizing turnover and increasing performance.

The country’s outsourcing sector currently employs 500,000 workers. With revenues reaching $7.3 billion in 2009, RP President Gloria Arroyo reported recently that the country is closely behind India’s outsourcing industry worth $9 billion.


Gartner: Top Indian IT Firms Post Double-digit Growth

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According to outsourcing consultancy firm Gartner Inc., India's top five IT services providers posted a bullish growth rate of 23.8%. However, the global market for IT services posted single-digit growth at 7.7%.     

Of the five IT services providers, Cognizant posted the highest growth rate with 33.3%, taking Wipro's spot as the third largest Indian IT vendor. The other three are TCS, Infosys, and HCL Technologies.

Gartner's principal research analyst, Arup Roy, said 2011 marked a change in the purchasing behaviour of European clients towards offshore services. Moreover, comparing the market in Western Europe and US for IT services, Indian providers find it harder to gain traction on the former. Collectively, the five firms increased their market share in the region from 2.3% in 2010 to 2.8% in 2011.

The growth rates of Tier 2 and Tier 3 vendors were lower than those in the Tier 1 range, but some companies managed to outdo those in their bracket such as Syntel which grew 21%, and Genpact with a 27% growth rate. Meanwhile, smaller players were presenting to investors that IT outsourcing is more than just cutting costs.

Roy added that the five Indian IT vendors are slowly positioning themselves among the large multinational players in the market. Also, they were able to accumulate large outsourcing deals over the years, collectively valued $100 million. They have also diversified their service offerings and expanded their portfolios by offering business process outsourcing (BPO) services, cloud and analytics services, as well as infrastructure services.


IT Execs Say Outsourcing Poses Network Security Risk

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Many IT executives and network administrators felt that outsourcing technology jobs to offshore locations poses risk on network security. This finding is based on a recent survey commissioned by secure file transfer solutions provider VanDyke Software and conducted by Amplitude Research, an independent mail and online survey company.

Outsourcing tech jobs a network security risk

Of the 350 respondents, 69% said that outsourcing tech jobs offshore has a negative impact on network security. Nine percent (9%) said it has a positive impact while 22% felt that outsourcing has no impact.

"The survey results indicate there is sentiment, as well as initial data, that suggests outsourcing tech jobs offshore is a matter that needs greater scrutiny in the area of network security," said Jeff Van Dyke, VanDyke Software's president and founder.


The Five Elements of Content Writing Outsourcing that Ensure Quality Output

by 365outsource_admin @ 365Outsource.com

Many companies understand the value of content outsourcing as a way to generate quality content for their brand without spending a lot of their own time. Outsourcing comes with some challenges, however, especially if you don’t choose your outsource partner wisely. Here are the five elements of content writing outsourcing that ensure quality output: A…

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7 new locations to be added to RP Next Wave Cities

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BPO sector to expand to 7 new outsourcing cities

According to the Commission on Information and Communications Technology (CICT), the Philippines' business process outsourcing (BPO) sector will spawn 5 to 7 new outsourcing cities this year. This will bring the Philippines' Next Wave Cities count from 35 in 2009, to over 40, ABS-CBN reported.

Last year's next wave cities list included Metro Laguna, Metro Cavite, Iloilo, Davao, Bacolod City, Bulacan East and Bulacan West, Cagayan De Oro, and Lipa City in Batangas.

Although CICT Commissioner, Monchito Ibrahim, would not name which cities in particular were to be added to the list, he explained that the goal was to have the Next Wave Cities reel in 35% of  the total outsourcing investments in the Philippines – with the other 65% belonging to Metro Manila.

"Ideally we want a 50-50 percent ratio, but that might take another 2 to 3 years to accomplish," said Ibrahim.

The current ratio in outsourcing investments is currently 75% to 25% in favor of Metro Manila – short of the 2009 goal for a 70% to 30% ratio. According to Ibrahim, this is due mainly to cities having ceased investments in their ICT, which he hopes will change this year.

"The challenge is how to attract more locators. If there's anything those aspiring to become Next Wave Cities should focus on, it's improving the manpower to supply the demand from the firms," said Ibrahim.


PH to Ink Free Trade Deal with EU

by @ MicroSourcing.com News Feed

The Philippine government expects to improve and enhance business relationships with European Union countries, especially with the United Kingdom (UK), via a proposed EU-Philippines free trade agreement, reports Adrian S. Cristobal Jr., Philippine trade and industry undersecretary for international trade group.

Philippines already an offshoring destination for outsourced work

Our English-speaking business environment, multicultural sensitivities, and strategic location in Asia are attractive for British companies seeking to expand its business in Southeast Asia,” the official says.
The Philippines is already known in the UK as a viable offshoring destination for outsourced work, especially since the country’s BPO industry has bagged the Offshoring Destination of the Year Award for the years 2007, 2009, and 2010. The awards were given by UK-based National Outsourcing Association (NOA).

“As we work towards the EU-Philippines FTA, we hope that more business and investment opportunities will open up for both countries,” comments Cristobal.

The Philippines already plays host to some of the UK’s biggest companies – HSBC, BP, LogicaCMG, and Shell.


How Linux Academy Increased Organic Traffic 84% with Incremental SEO Improvements

by Kim Cooper @ Alexa Blog

Like most startups, Linux Academy is in a competitive industry. They offer hands-on online cloud training courses on topics like AWS, DevOps, Linux, OpenStack, and more. However, they compete against popular sites that have greater brand awareness because of the broad mix of course topics those sites offer. While the larger brands might have the benefit [...]

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Accounting & Finance Outsourcing to Exceed $25B

by @ MicroSourcing.com News Feed

A KPMG and Hfs Research study showed that finance and accounting outsourcing is doing well as 90 percent were seen reaching their cost reduction targets and performance goals. The sector is seen to earn $25 billion worldwide this year.

Meanwhile, business executives are still working on improving current processes to effectively reach, or even surpass, targets, especially at the heels of the global economic downturn. Large businesses are more aggressive in using outsourcing and other business solutions to reduce costs.

According to Ron Walker, partner and Finance and Accounting Service Division Executive at KPMG's Services and Outsourcing Advisory practice, enterprise leaders should see outsourcing as an addition to the operation and not a substitute.


European BPO to set up Iloilo facility

by @ MicroSourcing.com News Feed

European outsourcing firm Transcom announced that it will set up an 800 seat facility in Iloilo City in January 2010.

Transcom vice-president and regional manager for North America and Asia PacificDuncan H. Cowie said the firm would initially employ more than 800 Ilonggos when the new facility opens next month, adding that the company plans to increase set capacity to eventually employ 2000 people by the end of 2010.

Cowie said the construction of a new power plant in the city was a key factor in the firm's decision to set up an Iloilo site, because call centers need a constant supply of power. Transcom's facility will be at the Amigo Plaza Mall on Iznart Street in downtown Iloilo City, which is a PEZA accredited building for Information Technlogy.

He added that the quality of available manpower was also a key factor for Transcom, citing Ioilo hiring rate of 40%-45% as double that of the national average of 2%-25&. Transcom began hiring and training employees more than a month ago. Chris Mason, vice-president for implementation and solutions, said the firm did not meet any difficulty in hiring employees, particularly for the management level.

"Hiring management level officers is usually the hardest process but here in Iloilo, we did not find it hard to get the people we need. It's primarily because of the numerous universities in Iloilo," Mr. Mason said.

Transcom employs more than 6,000 local employees and is primarily engaged in customer care, sales and support, credit management and additional customer-related services. It has 75 sites in 29 countries.



Executives See Outsourcing as Key to Overcome Crisis

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Outsourcing Cited as a Solution to the Economic Crisis

According to the the Capgemini Executive Outsourcing Survey, majority (74%) of North America's business leaders agree that outsourcing can assist a company in staying afloat amidst the current global economic crisis. Conducted by Harris Interactive and commissioned by Capgemini, a leader in providing consulting, technology and outsourcing services, the survey was done to determine how public perception of outsourcing in times of economic downturn affects business leaders in making decisions.

Conducted last April 29 - May 15, the telephone survey further reveals that 79% of the 151 senior executives from Fortune 1000 companies agree that outsourcing has a poor public perception. However, public opinion has little or no effect on the executives' decision-making process when it comes to outsourcing IT, finance and accounting, and HR and procurement tasks.


PH BPO Industry Recognized at Unctad Event

by @ MicroSourcing.com News Feed

The rapidly growing business process outsourcing industry (BPO) of the Philippines was recognized at the United Nations Conference on Trade and Development (Unctad) meet held in Geneva, Switzerland. The event covered the effects of non-equity modes of international production such as outsourcing.

Foreign investors look at the country's cost effectiveness, available workforce, strong public-private partnerships, and telecommunications setup , said Cristino Panlilio, Trade Undersecretary for Industry and Investments.

He also said the country's outsourcing industry contributes more than half (60%) of the total services exports. The BPO industry is composed primarily of call center functions, while non-voice services include finance, accounting, and transcription.

The Philippines, now just a spot behind India for BPO services, posted revenues worth $9 billion and employed 530,000 workers. Panlilio said that it is predicted to bring in $11 billion as services export revenues and employ 640,000 people. If issues are resolved, revenues can reach $25 billion and 1.3 million will be employed in the industry by year 2016.

Ambassador Evan P. Garcia, the Philippines' permanent representative to the UN and other International Organizations during the meet in Geneva, said the IT-BPO services from India, the Philippines, and China are responsible for 65% of the global export revenues in 2009.


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Next Wave Cities Seen to Boost PH Economy

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According to Department of Science and Technology (DOST) Secretary Mario Montejo, the local economy’s revenues could reach $18 billion through the Information Technology-Business Processing Management (IT-BPM) operations in "Next Wave Cities".

In his speech at the International IT-BPM Summit in Makati, Montejo said the sector only had 525,000 full-time employees back in June 2010. It has recently surpassed the 1-million mark, which means the country is poised to reach the 1.3 million employee target by 2016. He added that the revenue target of $25 billion for 2016 is more achievable if the country is able to reach $18 billion by the end of 2014.

PH provinces included in "Next Wave Cities"

Montejo also pointed out that the DOST-ICT included areas such as Baguio, Iloilo, Sta. Rosa, and Bacolod in the "Next Wave Cities". These areas are being developed to house IT-BPM hubs, and eventually become part of the list of the top 100 IT-BPM hubs globally.

The org body also rolled out programs in various areas within the provinces in hopes of increasing the knowledge of residents about non-voice processes like animation, game development, healthcare outsourcing, and software development.

DOST Deputy Executive Director Monchito Ibrahim touched on key topics such as Rural Impact Sourcing in which individuals are equipped with basic knowledge and skills, as well as how to build start-up companies for ICT processes. He also pointed out that rural sourcing has 300,000 entrepreneurs involved in the IT-BPM segment.

Moreover, he pointed out that nursing graduates and board passers can look for opportunities in the healthcare outsourcing segment of the country. Careers include medical transcriptionists, medical secretaries, medical coders and billers, medical assistants, medical representatives, medical butlers, and clinical research associates.


PH Outsourcing Predicted to Post 13.9% CAGR until 2018

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Philippine BPO Compound Annual Growth Rate until 2018

One of the highlights in the Research and Markets’ report "Outsourcing Market in the Philippines 2014-2018" is the projected 13.9 percent compound annual growth rate (CAGR) of the Philippine outsourcing market until 2018.

The Philippine outsourcing market is composed of three segments: voice BPO, non-voice BPO, and IT outsourcing and ESO.

It was also found that as the call center segment continues to grow, the country is looking at other outsourcing services to reinforce growth throughout the industry. In addition to that, knowledge-based outsourcing is on the rise while industry-centric outsourcing services depend on communication and industry-specific language.

As for countries, India and the Philippines are cited as having graduates who are skilled in Math and Science.

More and more companies have been observed to outsource HR, and F&A processes to cost-effective outsourcing hubs. The ongoing trends in the global outsourcing market pushed the Philippines to increase revenue margins and focus on processes related to engineering and healthcare.

Industry experts were solicited for inputs on the Outsourcing Market in the Philippines 2014-2018 report. Information included in the report also focuses on the growth of the outsourcing prospects and landscape in the Philippines in the coming years.

The report, the Outsourcing Market in the Philippines 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. The report focuses on the outsourcing market in the Philippine landscape and its growth prospects in the coming years. The report also includes highlights from the key service providers such as Accenture PLC, Convergys Corporation, JP Morgan Chase & Co., and Teleperformance SA.


Davao Ranked as Top Outsourcing City

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With Davao's high scores in availability of talent (99 percent) and infrastructure (95 percent), it was hailed as the top outsourcing city in the 2010 Top 10 Next Wave Cities by the Commission on ICT, Business Processing Association of the Philippines (BPAP), and Department of Trade and Industry.

Even though Davao scored low in cost (74 percent) and business environment (76 percent), its high score in the talent criterion, which is 40 percent of the overall ranking, propelled the city to the top of the list. Out of the more than 30 outsourcing cities, Davao produces the highest number of graduates. The city is home to 20 BPO companies and currently has 6,500 agents.

Other areas in the 2010 Top 10 Next Wave Cities list are Sta. Rosa, Laguna, Bacolod City, Iloilo City, Metro Cavite, Lipa City, Cagayan de Oro City, Malolos City, Baguio City, and Dumaguete City.


US IT Spending to Bounce Back this Year

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After a five percent decline in 2009, the US IT services market is poised to recover this year and will reach $79 billion. This is according to a report from Forrester Research.

IT consulting remains to be the strongest segment in the US IT services, followed by hardware support/sales and system integration business.

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Forrester report findings matched the projections of research firm Gartner on the global IT spending market, stating that it will grow 5.3 percent this year and will hit $3.4 trillion.


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Mohnesh Blog

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Report Reveals Growth in IT Outsourcing

by @ MicroSourcing.com News Feed

IT research company Computer Economics released a new report called "IT Outsourcing Statistics 2015/16" where it was discovered that spending on IT outsourcing has grown consistently with the IT operational budgets across the globe.

The report also found that companies utilize outsourcing to reduce costs, preserve capital, improve operational flexibility, reduce management overhead or rapidly deploy new capabilities, and increase service levels.

The survey conducted on 132 IT organizations in the US and Canada also declared that outsourcing is used to boost in-house operations without having to share long-term risks with the provider, or having to spend on large capital investments. The entire operation is anchored on the decision of IT executives, who are also expected to control and evaluate the process so that they are ensured that they will reach the tactical and strategic objectives.

Growth in IT outsourcing spending

The study showed that large companies that have IT operating budgets of $20 million and above are leading the growth trend as they are seen spending 7.8 percent of their IT budgets on outsourcing. The top processes outsourced are help desk and web/e-commerce functions.

Meanwhile, cost-reducing opportunities are seen in disaster recovery and desktop support segments of the IT sector, and outsourcing IT security and web functions has potential in improving a company’s overall service.

Software-as-a-Service has also grown rapidly wherein 65 percent of the respondents said they outsource application hosting and is the most outsourced function found in the report. Organizations also indicated that they are planning to increase the amount of work they are outsourcing.


Developer Takes the Lead in PH Office Property Market

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Andrew L. Tan's Megaworld Corp. is expected to complete six new business process outsourcing (BPO) towers. This will fortify the property developer's position in the office space segment.

Executives of the company explained that the six new towers are anticipated to yield 112,000 square meters (sqm) of office space and are set to accommodate the growing demand from existing clients who want to expand, as well as new locators.
According to the first vice-president for business leasing and development of Megaworld, Jericho Go, Megaworld aims to become the leading office space developer in the country. He said they are considering office inventory expansions to augment their revenues from rental payments.

Two of the office towers are in Uptown Bonifacio, two towers are in Mactan Newtown, and the last two in Iloilo Business Park.
Once the 112,000 sqm of office BPO space are included to Megaworld's portfolio by the end of this year, they will end up with a total of 712,000 sqm.
Megaworld has 10 office towers in Eastwood City, one in Newport City - Pasay, 14 in McKinley Hill - Taguig, and another one in Mactan Newtown - Cebu.

Eighty-six percent of the developer's 126 clients are in the BPO industry. Some of which are Accenture, HP, Wells Fargo, IBM, United Health Group, Thomson Reuters, Dell, WNS, and Samsung.

Go said they are fully supporting the BPO sector's plans for growth and are seeking to help further by encouraging more companies to operate in the Philippines.


Acceptance of Outsourcing Boosts RP BPO

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In a recent industry forum and survey, the Philippine BPO industry is benefiting from the increasing acceptance of outsourcing.

BPO industry to increase workforce between 6-80%

BPO executives are confident that the industry will gain momentum in the next 12 months as about 80 percent of BPO firms intend to increase their workforce between six and 80 percent. “Our previous survey showed a return to optimism in the industry. The current survey shows that sentiment achieving momentum,” said Oscar Sañez, CEO of Business Processing Association of the Philippines (BPAP).

Aside from the expansion in the workforce, the BPO industry is also seeing an expansion in the service offerings. From process-based, the industry is also offering high-value services including knowledge-based processes.

Moreover, survey respondents expect a stronger and better working relationship with the Aquino administration. The automated election and smooth transition of the administration also had a positive effect on client and investor perception of the country.


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China Narrows Gap with India as Top Outsourcing Destination

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China a Runner-up as Top Outsourcing Destination

Canada-based ICT research and advisory firm XMG Global said China is consistently narrowing the gap with India as the no.1 outsourcing location of choice.

China is expected to end 2010 with US$35.76 billion in outsourcing revenues, a 28.7 percent global market share. On the other hand, India’s outsourcing industry still has the lion’s share of the market with 43.7 percent.

China posted a 30 percent growth rate, while India only increased by 14 percent. XMG chief analyst Lauro Vives said the revenue gap between these countries is getting smaller. "India's weakening lead is due to the substantial efforts of China, the Philippines, and other offshoring destinations in building their capacity to attract significant amount of investment," Vives said, adding that India maintains its lead, but other offshore outsourcing destinations are starting to mature.

By the end of this year, the global outsourcing market is expected to post US$425 billion estimated total revenue.



Research Firm Advises Hospitals to Outsource IT Tasks

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According to Frost & Sullivan, a business research and consulting firm that provides market analysis and reports, hospitals and healthcare agencies will gain financial benefits if they join the IT outsourcing bandwagon. Aside from outsourcing IT tasks such as data management, cloud computing service can be another alternative for the healthcare sector.

"It allows hospitals and healthcare agencies to focus exclusively on their core competencies of providing patient care," said Konstantinos Nikolopoulos, programme manager of Frost & Sullivan. He added that outsourcing IT requirements will be relatively inexpensive and though there is still no widespread acceptance of IT outsourcing, the healthcare sector is slowly changing its mindset about it.


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Obama Addresses Outsourcing Concerns in India

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The US is seeing an increasing level of unemployment. Last month, it reached 9.6 percent. In his India visit, President Barack Obama said shifting work to outsourcing destinations such as India has cost Americans their jobs.

This is a major blow to the Indian IT industry, since about 60 percent of its $60 billion IT and IT-enabled services exports come from the US.

The US is increasing visa fees and implementing other protectionist measures as the country bounces back from the economic downturn and faces high unemployment levels. "As we look to India today, the US sees a potential to sell exports in one of the fastest growing markets in the world. For Americans, this is a job threat as we recover from recession," Pres. Obama said.


PH BPO Earnings Expected to Grow 25%

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The IT and Business Process Association of the Philippines recently stated that export revenues from the information technology and business process management sector of the country are expected to grow by 25 percent from $18 billion in 2014 to $22.5 billion this year. IBPAP also said the industry is poised to employ 1.2 million workers by the end of 2015.

During the two-day International IT-BPM Summit held at the Marriott Hotel in Pasay City, IBPAP Director for talent management Penny Bongato said the industry should sustain its momentum and improve ways to develop local talent so that future targets are more achievable.

Bongato added that BPO firms should be able to handle and sustain the talent pipeline, as well as accommodate new graduates to reinforce growth as the increasing global demand for BPO skilled workers is prompting countries to focus on improving the skills of candidates.

IBPAP pointed out that the Philippines is gaining traction in new markets and is looking for ways to optimize language capabilities. Bongato noted that the voice outsourcing segment keeps on changing and that the country needs to keep up since new countries are being assigned to the Philippines.

She also said the industry is on track in reaching the targets for Roadmap 2010-2016. IBPAP is currently working on the next roadmap and is set to be finished by end of this year.


Everest Report Shows Increase in Offshore Outsourcing Activity

by @ MicroSourcing.com News Feed

Things are looking up again for the offshore outsourcing industry. As the economy bounces back from the global financial crisis last year, a report by Everest Research Institute shows the industry sees an increase in offshore outsourcing activity.

According to Anand Ramesh [CQ}, research director at Everest, US-based companies are now considering to transfer more work offshore, while other firms that have not outsourced work offshore before are now planning to do so in destinations with relatively low labor costs.

Based on the report, about 75 percent of small and medium-sized companies and 90 percent of large firms intend to expand outsourcing operations by more than 500 full-time employees over the next two years.

Meanwhile, Forrester Research principal analyst Sudin Apte [CQ] said this uptick in offshore outsourcing activity will increase demand for workers in offshoring locations. The Everest report added that more than 70 percent of buyers choose India as the location for their business expansion, followed by the Philippines and China.


Offshoring: Strategy Mapping over Cost Reduction

by @ MicroSourcing.com News Feed

A research created by India-based Sundaram Business Services indicated that a large number of companies that use business process outsourcing (BPO) are more motivated to outsource to maximize business strategies and not just to reduce costs.  

Directors of companies using BPO services were surveyed by Sundaram and indicated that access to scale and faster processing is more important to them and their business than lower cost.
Meanwhile, Harish Rao, Global Head of Business Development at Sundaram Business Services, said it is a misconception to say accounting operations use offshoring to save on costs because to other professional services firms, BPO enables them to drive growth. That being said, Rao pointed out that the idea of BPO equates to saving on cost is becoming a thing of the past.
The report also highlighted Accenture's 2012 Research Report that said it is possible that successful organizations are more focused on improving the business, and could be less motivated by costs when it comes to using BPO.
Sundaram also mentioned that although the concept of BPO in newspapers and magazines is mostly about cost reduction, it is clearly not the case in professional services because in reality, strategy development and improvement have more bearing. 


BPO Employees Urged to Consider High Value Processes

by @ MicroSourcing.com News Feed

At the Asia CEO Forum, SAP Asia Pacific Human Capital Management Solution Vice-president Raj Sundarason said the business process outsourcing (BPO) workforce of the Philippines should consider training for "higher-value chain" processes. 

Sundarason added that now is the time for the Philippine market to move up the value chain, because if the outsourcing market suddenly changes, the country will have a difficult time adjusting. The executive also noted the large supply of skilled medical professionals in the country, and that the local BPO industry should utilize it for diversity and growth of the healthcare information management segment, which is right up in the alley of the higher value chain.  

On the other hand, Sundarason said the country has to produce more human resources experts to support the transition and growth of the local BPO sector. A solution, he said, would be for the academe to reinforce and match the requirements needed in the industry.


Advocacy group formed for $6B BPO sector

by @ MicroSourcing.com News Feed

Growth in the Philippines' outsourcing industry

The Call Center Agents of the Philippines (ACCAP) was officially launched at a press briefing last Tuesday, November 24. The group is reportedly non-profit and will work to unite the increasingly large community of call center and Business Process Outsourcing (BPO) workers in the Philippines.

According to ACCAP secretary general, Kevin Carreon, workers in the Philippines' outsourcing industry have grown to close to 800,000.

“Over the past 10 years, the country has become a significant outsourcing destination and extremely competitive due to the highly trained English-speaking  Filipino agents. This is the reason more and more US and UK companies prefer the Philippines to outsource jobs,” said Carreon.

The ACCAP also launched its own website designed to connect call center and other outsourcing workers throughout the nation, and to help them find new jobs and skills development opportunities.


IT Outsourcing Deals Drop for Q3

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Lowest number of deals in the IT outsourcing market

A study done by analyst firm Ovum showed that the global IT outsourcing market’s total contract value (TCV) has fallen by 75 percent in this year’s third quarter. It was also indicated that the figures posted are the lowest level for the segment in nine years.

Ovum noted that from last year’s third quarter, the TCV of IT services contracts fell 33 percent this year, same period, with 18.9 billion (£11.7 billion).

Moreover, the third quarter of 2012 showed the lowest number of deals with 332, from 438 contracts posted during the same period last year. However, the lowest is still 324 contracts tracked during 2007’s Q4.

However, Ed Thomas, an analyst at Ovum, said the signs of recovery for the IT services market during the second quarter of 2012 were not seen during the third quarter of 2012. The industry would have to work twice as hard on improving the TCV and volume of deals if it wants to at least match last year’s statistics.

Europe was identified to have dominated the contracts belonging to the private segment but activity dropped for the IT providers’ market which is North America.

For the global public sector, Q3 of 2012 posted a TCV of $10.6 billion (£6.6 billion), a decline of 43 percent. The volume of deals also fell 22 percent to 195 for the same period last year.


BPO, Tourism to Drive Cebu towards Economic Recovery

by @ MicroSourcing.com News Feed

Business process outsourcing and tourism are the two industries that will enable Cebu to recover in the current global economic downturn. This is according to economists and business leaders who took part in the recently concluded One Cebu Business Summit held at Mandaue City with surviving the economic meltdown and business recovery as the overall theme.

Cayetano Paderanga, Jr., UP Economics professor and guest at the event, said that both industries show resilience in these tough times as positive, though slower, growth continues to be seen in the province.

For the first semester of this year, Cebu had an increase of almost 9% in the number of foreign tourists who arrived in the province. On the other hand, 50,000 workers are employed in the BPO industry and there are no job losses.


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US Anti-outsourcing Bill to Affect Offshore Call Centers

by @ MicroSourcing.com News Feed

In an effort to bring jobs home, Rep. Tim Bishop (D-N.Y.) and Rep. David McKinley (R-W.Va.) introduced the bipartisan bill that is set to reprimand US companies which are sending call center work offshore, making them ineligible for government-regulated benefits such as grants and loans. Aside from that, the US Call Center Worker and Consumer Protection Act mandates firms that are planning to outsource offshore to inform the Labor Department 120 prior to filing. Bishop added that the bill covers all industries.

The bill also states that call center agents will be required to reveal their location when asked and give customers the option for their calls to be transferred to a local representative.

It is a known fact that labor rates are lower in India and the Philippines. USA Today recently reported that the Philippines' call center sector has overtaken India's, although some call center jobs are seen to flow back into the US.

On behalf of 700,000 workers, 150,000 of whom are customer service representatives, the Communications Workers of America (CWA) strongly supports the call center bill. The union's Chief of Staff, Ron Collins, said Americans are missing out on call center jobs due to offshoring and praised AT&T for bringing 5,000 jobs back home.

On the other hand, free-trade GOP members are not expected to support the said bill but due to incessant complaints from unhappy customers, majority of Republicans as well as Democrats would probably respond more positively with call center agents based in the US.


Cebu BPOs Bear up against Earthquake

by @ MicroSourcing.com News Feed

The 7.2 magnitude earthquake which occurred last Tuesday morning in Cebu and Bohol prompted business process outsourcing (BPO) firms to halt operations. Employees were evacuated from the premises immediately after tremors ended, and were advised to report to work the following day.

BPO firms prioritize safety

According to the Information Technology and Business Process Association of the Philippines (IBPAP), safety is always the top priority of BPO firms. The organization also said only minor damages were sustained by BPO buildings.
Jomari Mercado, President of IBPAP, added that since the BPO structures are relatively new, almost everything is compliant with the newest safety codes for construction.


Faster Growth Rate Predicted in PH Economy this Year

by @ MicroSourcing.com News Feed

Bullish Philippine GDP for 2013

The February issue of The Market Call, a renowned publication, predicted that the Philippine economy will post robust growth this year, based on recent gross domestic product (GDP) results.

Some of the factors identified as key contributors for economic growth are the government outlays for infrastructure, disbursements on the upcoming election, and marginal increase in electricity sales last December.
Meanwhile, the publication stated that during Q4 last year, GDP grew 6.8 percent. Moreover, it noted that better weather and harvests will be able to counter the fluctuating prices of crude oil, making inflation settle at three percent.
Even with the positive forecasts, The Market Call advised that the valuation of the peso still poses a threat to the country’s economic growth, adding that it mainly affects investors involved in the business process outsourcing (BPO) industry and overseas Filipino workers (OFW) for remittances.

It is also projected that the strong performance of the peso could result to an exchange rate below P40:$1. Meanwhile, the recent credit upgrade from Standard and Poor’s (BB+ "stable" to BB+ "positive") puts the Philippine peso at a favourable position.


Report Predicts Rise in Global Outsourcing Contracts in 2010

by @ MicroSourcing.com News Feed

As the economy recovers from the financial crisis, it is predicted that the number of global outsourcing contracts will increase this year due to acceptance to cloud computing, multi-sourcing, and focus on governance and risk management. However, these factors will also drive down value and duration of outsourcing projects. These findings are based on the Momentum Market Trends & Insights 4Q09 Annual Report by TPI, the world's largest sourcing data and advisory firm.

"With the outlook of the global economy still uncertain, clients are clearly turning toward smaller, lower-risk transactions that focus on short-term cost savings," said John Keppel, Partner and Managing Director, TPI Research. The report further predicts that large contracts signed when the global economy was still stronger will be broken up and granted in smaller deals. This is also another factor that will boost the volume of outsourcing contracts this year.


RP hosts e-Services Global Sourcing Conference

by @ MicroSourcing.com News Feed

The 10th e-Services Global Sourcing Conference and Exhibition is being held in the Philippines having been recently dubbed as “Best Outsourcing Destination of the Year”. The Philippines won the award as part of the 6th annual National Outsourcing Association Awards in the United Kingdom – its second since winning the award in 2007.

According to Philippine Star, the event is an annual trade show spanning two days to bring together outsourcing providers from around the globe. This year's show promises 200 exhibitors and more than 2,000 trade buyers. The Department of Trade and Industry is preparing for the event through the Center for International Trade Expositions as part of the continuing effort to promote the Philippines as the premiere outsourcing destination.

Philippines moves up as one of the top markets for global investors

Research by UK Trade & Investment indicates that the Philippines has moved to 9th among the top markets for global investors in 2009 – up 14 spots from last year. The e-Services event will be held on February 8 and 9 at the SMX Convention Center in Pasay City, Philippines.


PH Construction, Economy Driven by IT-BPO, Remittances

by @ MicroSourcing.com News Feed

IT-BPO sector among drivers of PH economy

According to Rajiv Biswas, Chief Economist at research and consultancy firm IHS Asia-Pacific, the bullish information technology business process outsourcing (IT-BPO) sector and strong inflow of remittances from overseas Filipino workers will continue to drive the economy of the Philippines.

He pointed out that between 2008 and 2014, the country’s revenue from service exports has doubled and over a million jobs were created. Last year, the sector posted an 18.7-percent revenue growth to US$18.4 billion.

In an earlier statement, Biswas said the Philippines and Malaysia are the frontrunners for IT-BPO in Southeast Asia as both countries have large pools of English-speaking, university-educated workforce. Meanwhile, the Bangko Sentral ng Pilipinas (BSP) reported that the total remittances in 2014 went up by 5.8 percent to US$24.31 billion.

The IT-BPO and inflow of remittances also propel the growth of the construction sector. Remittances push the capabilities of consumers to spend, particularly for residential properties, and act as leverage for the Philippines’ balance of payments. The IT-BPO sector, on the other hand, reinforces the commercial property sector.


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Companies Urged to Organize IT Infrastructure Before Outsourcing

by @ MicroSourcing.com News Feed

David Kline, CIO of Discovery Communications, said companies should �clean� their IT infrastructure first through virtualization and consolidation before transferring it to a service provider.

"You could do an offshore � where your management staff is saying, 'It's over there. It's not my problem anymore.' And that's not true. IT's still your mess. Get it as clean as you can get it," Kline said in a keynote address at the Global Sourcing Forum and Expo. "Know yourself. Know your limitations. It is a huge proposition to do global sourcing."

Security credentials of the service providers must also be taken into account before the transfer of IT tasks. According to a VanDyke Software report, 61 percent of the IT professionals who took part in the survey said there was an intrusion in the IT systems that they outsourced within the past two years.


New Wave Cities and Urban Areas Ready for BPO Tenants

by @ MicroSourcing.com News Feed

More BPO Cities in the Philippines Open Up

Robinsons Land Corporation (RLC) announced that their mall-based business process outsourcing (BPO) offices in New Wave Cities in Luzon and Mindanao are now ready for occupancy.

New office spaces in malls in Paco, Davao City and Tarlac City, an additional 21,000 sqm, are now available for BPOs for leasing, said Arlene Magtibay, RLC’s Business Unit General Manager of Commercial Centers Division. She added that if the BPO market demands additional office space, they can proceed with the construction in Tacloban and Dumaguete, which can be customized based on the requirements of potential tenants.

According to Henry Yap, Business Unit General Manager for Office Buildings Division, more RLC BPO buildings are in the construction phase in the Ortigas Business District, adding a total of 80,000sqm to its portfolio. This makes RLC one of the leading lessors in the Philippines.

Having offices within Robinsons Malls not only provides tenants shopping and dining convenience - it also boasts proper accreditation from the Philippine Economic Zone Authority or PEZA, armed with 24/7 support facilities and 100 percent power backup.

Industry reports state that there is a rising demand for BPO office space, and vacancy rates in Metro Manila stay low even though rents are increasing.


BPAP: Make Employee Welfare a Priority

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Employees are advised by the Business Processing Association of the Philippines (BPAP) to highly consider personal safety when contemplating to go to work during extreme weather.

Benedict Hernandez, BPAP President and CEO, said that the safety of business process outsourcing (BPO) employees, their families, and communities near BPO offices is their main concern during extreme circumstances. Moreover, the Aquino administration declared August 7 a no-work day due to torrential rains that caused floods. BPO employees were advised to stay at home. Those who choose to report to work should organize travel arrangements with their respective companies.

He added that as employees have shown commitment and support to the BPO sector through the past several years, they are also committed to them for a long-term partnership, especially during these trying times.

Meanwhile, Department of Labor and Employment (DOLE) Secretary Rosalinda Dimapilis-Baldoz said BPO employees who report to work during extreme circumstances are eligible for a 30% premium on top of their basic pay.

Last year, the BPO sector employed nearly 640,000 Filipinos and contributed over $11 billion in revenues. It is predicted to employ 1.3 million and post $25 billion in annual revenues by 2016.


Doing On Page and Off Page SEO With Modern Techniques 2017

by Abhishek Kumar @ Design and Rank

Search Engine Optimization (SEO) is the only way of increasing traffic and getting good ranking in the search engine results (SERP). Those of webmasters who often segregate some SEO techniques … Read more

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Forrester Predicts 9.3% Increase in Global IT Spending

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Technology research firm Forrester predicted an increase of 9.3 percent in the global IT market this year. This will be driven by increase in spending on software and computer equipment, according to Andrew Bartels, vice-president and principal analyst. He said US IT outsourcing services will reach $91 billion this year and grow to $97 billion in 2011.

It is expected that US IT spending will grow 11 percent this year, while an increase of 10.5 percent is predicted in software spending. �The 2009 tech downturn was shallower and shorter than the 2001-02 US tech depression,� Bartels said. He added that professional services companies, financial services firms, and the government sector will be the biggest IT spenders.

On the other hand, Bartels said IT outsourcing will continue to grow, but growth rate will be slower.


UK Takes the Lead in IT Outsourcing Market

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UK Leads IT Outsourcing Market 2013

According to market research and consultancy firm Information Services Group (ISG), the UK was the IT outsourcing market leader last year. IT outsourcing contract values increased amidst the weak outsourcing market in the EMEA region.

In Q4, the region posted €2.1bn, a six percent decline from Q3 2012, and an even larger decline of 29 percent from Q4 2011. This was based on the 4Q12 EMEA TPI Index, with commercial outsourcing contracts which are €4m (£3.35m) or higher.

The financial services sector was identified by ISG as having the most activity and large facilities management contracts. This drove the average contract value in the UK to rise 20 percent last year to €3.7bn. ISG also said UK experienced a steady contracting environment last year, even with the decline in the number of contracts signed (year-on-year) in 2011.
Meanwhile, a 12 percent drop from 2011 was seen in EMEA’s 2012 total annual contract value. The region closed 434 deals in 2012, a 21 percent decrease compared with the record high posted by the region last year.

John Keppel, ISG North Europe President, said data from the past is crucial. It still shows that contracts from the EMEA region grew twice its size in 2007. He said this was caused by changes in the market, more multi-sourcing offerings, and digital evolution propelled by first-time outsourcing buyers.


What are SEO Ranking Signals?

by Mr. SEO @ Mr. SEO

Google is notorious for not giving us the exact algorithm of how they rank websites. Sometimes they give hints as to the metrics they use, but in some cases these pronouncements can be confusing or contradictory. Most of the time, they just tell website owners to basically not to worry about SEO and that their […]

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Tips for Outsourcing SEO

Tips for Outsourcing SEO

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Front End vs Back End vs Full Stack Developer: Decode The Right Developer to Hire

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  If you’re looking to create or enhance your website, then you are probably on the look out for a really great web developer who can assist you with this. Hence, the scenario of going through job sites to find the right person and then stumble upon titles such as “front end,” “back end” and […]

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PBN Mistakes: 5 Mistakes That Will Get Your PBN De-Indexed

by admin @ SEO Brothers

If you ask 10 SEO Professionals what the hottest trend is in SEO over the last five years 8 of them will likely say PBNs. For good reason as well, they are one of the easiest ways to create high value links for your websites. However, they don’t come without risk and there are many…

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17 Most Important Google Ranking Factors to Focus on in 2016

by Mohnesh Kohli @ SubmitShop

SEO strategy cannot be consistent or same every year. There has been lot of changes happening in search engine industry in last three years , so the SEO strategy cannot be the same as in previous year. There have been significant change in search engine ranking in past one year which are to be adopted […]

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UK IT Outsourcing Activity Slows Down

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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.


Gartner: Strategic Document Outsourcing in North America to Grow 2.8%

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A 2.8 percent growth, from $17.2B (2010) to $17.6B (2011), is expected for North America's strategic document outsourcing (SDO) market, according to global IT research and advisory firm Gartner, Inc.

SDO is a subcategory of business process outsourcing (BPO) that involves publication of customer communications, as well as content creation, multimedia presentation, and incoming document processing. The documents can be produced as hard copies or digitally, or a combination of both.

Gartner's research director Pete Basiliere said the business climate of the rest of 2011 and next year will have an impact to the SDO market. If the financial crisis continues, companies may be forced to stop their in-house operations and decide to outsource, which equates to more revenues for service providers. The downside is companies may have concerns on transitioning. Closing an SDO deal at a time when they couldn't afford to face any problems in the current operations is something that can also have an effect on the SDO sector.

Due to the demand for automated workflows, reasonably-priced long-term SDO contacts, and providers' ability to supply inbound services revenue along other value-added SDO services, the inbound services segment anticipates resilient growth that started with a five-percent increase in 2010 to 2011, and an average of 6.5 percent revenue growth up to 2015.


Data Privacy Act to Improve PH BPO Industry

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Ruling to Improve Philippine BPO Industry

The rapidly growing business process outsourcing (BPO) sector of the Philippines is set to benefit from the Data Privacy Act or Republic Act 10173 as it aims to protect personal digital data of private and public entities, specifically those that are dealing with offshore businesses.

Benedict Hernandez, Director of the Business Processing Association of the Philippines (BPAP) and President of the Contact Center Association of the Philippines (CCAP), said the local BPO sector must and will abide by the new law’s provisions. It is also predicted to attract more investors as it is set to reinforce protection of private data.

In an interview, Hernandez also highlighted several uses and benefits of the law to the outsourcing industry and other sectors as well. He added that private information should be handled with outmost confidentiality.

Moreover, he said having reinforced data privacy processes will help pave the way for better business practices in companies and more opportunities in attracting potential investors. He reiterated that BPAP will strive to work with the government in implementing and establishing the provisions of the Data Privacy Law.


PH BPO Urged to Go Beyond Voice Services

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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.

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PH Real Estate Market Shines in Asia

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According to KMC MAG Group, local counterpart of London-listed real estate service provider Savills, the bullish economy and business process outsourcing (BPO) industry of the Philippines make its real estate market a frontrunner in Asia.

KMC MAG Group Vice-president Yves Luethi said Manila possesses favorable traits that investors are looking for. These include a talented workforce, healthy BPO and tourism sectors, positive government spending, and improved domestic consumption. Moreover, he said compared to the country's counterparts in Asia, its rates remain relatively low.

Manila takes the fourth spot in Urban Land Institute's report as the most preferred city in Asia - beating Hong Kong, Sydney, and Singapore. The top three, however, were taken by Tokyo at first place, Shanghai at second, and Jakarta at third place.
Meanwhile, Michael McCullough, Managing Director at KMC MAG Group, said the expanding BPO sector, influx of investors, and strong private consumption put the Philippines in a great position in the real estate market of Asia. 

In 2013, the economy of the Philippines grew from 6.8 percent in 2012 to 7.2 percent. The government, on the other hand, is targeting 6.5-7.5 percent growth.    

KMC MAG Group noted that as outsourcing gets more popular in developed nations, it is likely that foreign investments to the country will grow as well, which can result to 124,000 jobs in the information technology-business process outsourcing (IT-BPO) sector this year.


CBRE: PH BPO still a Key Driver of Investment Growth

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PH BPO Sector Continues to Fuel Investment growth

Renowned commercial real estate firm CB Richard Ellis Philippines, Inc. (CBRE) said the business process outsourcing (BPO) sector of the Philippines is still a major contributor to the growth of investments in the Philippines.

During a forum held in Makati, John Corpus, Corporate Agency and Brokerage Director at CBRE, said the Philippines has overtaken India in providing voice services to information technology firms and Western banks. Moreover, he explained that for every BPO job, 2.5 more jobs are produced in administration, construction, and services. This also goes for the office market where the outsourcing sector is likewise cited as a growth driver. Office occupancy in major business districts peaked during the fourth quarter of 2014.

CBRE also pointed out that the rates of Prime and Grade A buildings in Metro Manila slipped from 2.53 to 2.13 percent quarter-on-quarter.

Furthermore, CBRE Philippines Chairman and CEO Rick Santos said even with the increase in office property rates throughout CBDs, investors are willing to pay for the quality and value in those areas.

Also, during last year’s fourth quarter, the total office occupancy rate in Makati, Fort Bonifacio, Alabang, Quezon City, and Ortigas is said to be at 97.87 percent.


Bills on Tax Break Removal to Dampen PH BPO Edge

by @ MicroSourcing.com News Feed

The business process outsourcing (BPO) industry and other various sectors of the Philippines are facing yet another challenge as bills that seek to remove income tax holidays (ITH) are created.  

The Executive Director of Business Processing Association of the Philippines (BPA/P), Martin Antonio S. Crisostomo, pleaded through a position paper for Senate Bills 2142, 2379, and 2755, all of which are designed to limit the government-regulated aids and financial grants for merchandise export-oriented and micro-and small-scale enterprises, to be reviewed and the ITH to be reconsidered.

Crisostomo stressed in the paper that if the ITH incentive is removed, it will affect the country's capability to market itself and attract foreign investors, making neighboring countries the preferred BPO locations. Another factor that might discourage possible investors is the country's high tax rate of 30%, versus Singapore's 17% and 25% for Indonesia, Malaysia, and Vietnam.

Removal of the tax break would also affect the perception of investors as changes in incentives could mean the country is unsure of its policies, and its government is not fully fulfilling its duties.  Crisostomo added that the Congress should at least wait for the remaining tax incentives to expire before changing anything in the policy regarding ITH.


Asia-Pacific Posts More IT Outsourcing Deals in 2012

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According to the Asia-Pacific TPI Index, a study done by the Information Services Group (ISG) that measures commercial outsourcing deals worth $5 million or higher - with an annual contract value (ACV) of $3.1 billion last 2012, the Asia-Pacific region is well on its way of becoming a profitable market for outsourcing contracts.

New processes were identified as the key propellers of growth and are responsible for 88 percent of the deals closed last year.  

Sid Pai, Partner and President at ISG Asia-Pacific, said compared to the economic problems experienced by Europe and the US last year, the Asia-Pacific region posted significant growth throughout 2012.

Pai added that the persistent growth of business process outsourcing (BPO) and information technology outsourcing (ITO) in India and China, helps the Asia-Pacific region overtake its larger counterparts, particularly Europe and the US.

Moreover, only the Asia-Pacific region posted an increase in ACV in 2012, and the number of outsourcing contracts in the region likewise grew six percent year-on-year to 134.


�You get what you pay for' in Outsourcing Deals

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After studying different outsourcing deals, researchers at the University of Tennessee found out that there are several mistakes committed by companies when it comes to establishing outsourcing partnerships.

"One of the common mistakes companies make is that their business model and the outsourcing contract are not aligned," said Kate Vitasek, UT lead researcher and supply chain consultant. "Economist Steven Levitt states it best - one of the most powerful laws of the universe is the law of unintended consequences. And a key reason for unintended consequences is that people do what they are paid to do." Vitasek said buyers will only get what they contract for, and service providers will only do what is indicated in the legal agreement.

The research team had identified ten mistakes companies make in outsourcing deals. These include perception on outsourcing only as cost-cutting measure, outsourcing that is purely transactional, and the lack of mature processes to keep track of the service provider's performance.


IT-BPO Seen to Drive PH Economic Growth

by @ MicroSourcing.com News Feed

Growth of IT-BPO industry

Senator Edgardo Angara recently said the Information Technology and Business Process Outsourcing (IT-BPO) industry of the Philippines can be the key factor to drive the growth of the economy.

He added that the IT-BPO industry’s robust state was able to go beyond the previous predictions based on the public-private partnership [PPP].

Furthermore, the senator shared information from the Business Processing Association of the Philippines (BPAP) which stated that the IT-BPO industry of the country was able to grow 24 percent from 2010, posted $11 billion in revenue in 2011, and provided 638,000 or 22 percent more jobs.  

BPAP also anticipates that the industry will contribute $25 billion until 2016, and account for nine percent of the country’s gross domestic product (GDP). It will also represent 10 percent of the global IT-BPO market and provide 1.3 million jobs to Filipinos.

Angara noted that the IT-BPO sector rapidly grew in terms of work force and revenues over the past decade and has become one of the leading sources of jobs. He recommended that the government should exert extra effort to maximize the industry to its full potential.  


Expert: Exports Fuel PH Economy

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Michael Spencer, Chief Economist for Asia at Deutsche Bank AG, said the Philippines is the country in Asia with the strongest-performing economy, propelled by improved exports.

A 6.4 percent growth rate was seen for the local economy during Q1 this year, a strong comeback from a measly 3.7 percent growth rate last year. The Philippines comes next to China which posted 8.1 percent growth.

Meanwhile, data from the National Statistics Office (NSO) showed that during Q1 and Q2 this year, total exports reached $26.8 million, which is 7.68 percent more from last year's $24.8 million.

Spencer noted that the Philippines remained resilient towards weak global demands and reinforced exports by targeting Japan, which is also the country's top market at 17.8 percent of the total exports.

An 11 percent growth was seen for this year's first half in export shipments to Japan, from $4.29 billion in 2011 to $4.77 billion this year. This can be attributed to outsourcing to the Philippines after the earthquake in Japan.

For 2011, Japan was the largest market of the Philippines for product exports, accounting for 18.5 percent or $8.86 billion. The US followed suit at 14.8 percent, China at 12.7 percent, Singapore at 8.92 percent, and Hong Kong at 7.71 percent.


Non-voice Processes Fuelling ICT-BPM Industry in Cebu

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The local economy of Cebu has been posting robust growth since 2008. It was found that one of the key growth drivers in the province is the information and communications technology - business process management (ICT-BPM) sector, specifically the non-voice segment.

According to Jun Sa-a, Managing Director of Cebu Educational Development Foundation for Information Technology (Cedf-IT), the ratio between non-voice operations versus call center operations in Cebu is 70:30. As for the volume of employees working in the ICT-BPM segment, call centers account for 70 percent with more than 100,000 workers, and the remaining 30 percent are employed in non-voice outsourcing companies.
Non-voice functions are also identified as high-valued processes. Some of these are related to finance, health information management, and software development. Joel Mari Yu, Managing Director at Cebu Investment Promotions said non-voice services will strengthen Cebu's position in the BPM space.

Sa-a noted that non-voice BPM operations have created "high-value" jobs, which require specific skills compared to call center work. Non-traditional operations are harder to move around compared to operations that are anchored only on English proficiency, which is a common skill all over the Philippines. Sa-a added that emerging segments such as health information management provide more employment opportunities to nurses and other medical professionals.

As the ICT-BPM industry in Cebu continues to grow, Sa-a said Cedf-IT launched training programs last year to address the growing demand. One of the programs highlighted by the executive is cloud infrastructure training which was spearheaded by EMC, a storage hardware solutions provider. In addition to that, he said schools now include cloud infrastructure to their curriculum.


Data Privacy Bill to Benefit PH BPO Sector

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PH BPO to be Reinforced by Data Privacy Bill

In a legislative move to further support the growing BPO industry in the country, the Philippine Congress has approved on its second reading the proposed Data Privacy Act of 2011.

The bill, “An Act Protect