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Growth Expected in the Procurement Outsourcing Market

by @ News Feed

A report from Everest Group called "The Procurement Outsourcing Annual Report 2014: Expanding New Horizons showed that in 2013" predicted a 10-12 percent growth in the procurement outsourcing market this year. The report also found a 12-percent year-on-year growth for the market last year, where managed spending reached $254 billion and a total of $2 billion in annualized contract value were recorded.

Everest Group explained in a statement that the market is in an unstable state where not only a large number of new deal signings are seen, but terminations as well. The organization also added that switching service providers could be causing this unclear activity.

Cost savings and spend reduction remain as the key drivers in the procurement market, but clients are also interested in new offerings and opportunities presented to them by service providers. Some of these are high-valued expertise, technological innovation, and process alignment.

Moreover, Everest said procurement outsourcing is evolving as merger activities with finance and accounting were seen, as well as higher collaboration activity with human resources.


Know what to design before you design

by @ 4M Feed

This is for those young web developers who must be guiding their fingers around their laptop, ready to make a website. Hold your horses there. What and how are you planning to start? Starting a website needs as much backend research as a new business venture.

Regulations Push AU, NZ CIOs to Outsource

by @ News Feed

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.


Bills on Tax Break Removal to Dampen PH BPO Edge

by @ 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.


BSP Survey Reports Strong Outsourcing Sales Growth

by @ News Feed

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.


PH Property Developer Benefits from BPO Growth

by @ News Feed

Continuous growth of the BPO sector

SM Prime Holdings Inc., SM Investments Corporation’s property division, is preparing to make the most out of the continuous growth of the business process outsourcing (BPO) sector. The firm is further developing its properties called EcomCenter, which is located at the Mall of Asia Complex in Pasay City.

The EcomCenter houses OneEcom, TwoEcom, and the recently launched FiveEcom Center.

According to David Rafael, Senior Vice-president of SM Prime Commercial Properties, the Philippines remains as one of the leading business process outsourcing hubs in the world and it has continuously driven the demand for office space over the years. The offices in the EcomCenters are designed to offer world-class facilities and are located near major business districts, commercial establishments, transport lines, and major ports.

On top of that, industry analysts said the BPO industry is expected to earn $25 billion in revenues and employ 1.3 million direct and 3.2 million indirect employees by 2016, which is equivalent to nearly eight percent of the Philippine economy.

Meanwhile, information from real estate consultancy firm KMC Research & Consultancy reveals that office space occupancy at the Mall of Asia Complex rose by 11.8 percent in 2014 compared to the previous year. Moreover, prime properties increased by 8.5 percent to P602.60 per square meter a month while vacancy rates are seen to stay at the low end mark of two percent.

This year, FiveEcomCenter is anticipated to produce more office space supply, having 80 percent of the building already pre-leased. The total structure is said to be valued at P3 billion, and offers an estimated gross leasable area of 83,000 sqm and a gross floor area of 141,706 sqm.


RP BPO Poised to Exceed 2010 Revenue Goal

by @ 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.


Investors, Firms Urged to Expand Operations Outside Manila

by @ News Feed

Investors and companies in the Philippines were encouraged to expand business process outsourcing (BPO) operations in key sites outside Metro Manila.

In the 3rd National ICT Summit in L'Fisher Hotel in Bacolod City, ICT Cyberservices Group head Ivan John Enrile Uy said the common goal is to promote the country as the global IT-BPO location of choice, and they are preparing the cities and regions outside Metro Manila area to become more attractive to investors. By expanding operations in other key sites, opportunities for economic growth will be spread out and not concentrated only in Metro Manila. This will also capitalize on skilled talent available in other areas. Uy added that about 20 percent of the country's outsourcing industry is located in sites outside Metro Manila and Cebu, and this is expected to increase.

Bacolod City ranked third in the Top 10 Next Wave Cities for 2010. Acting Mayor Jude Thaddeus Sayson said the city currently has 14 IT parks and buildings, and is considered as the BPO hub of the Western Visayas Region.


BPAP Launches National Competency Test

by @ News Feed

The Business Processing Association of the Philippines launched the BPAP National Competency Test (BNCT) for college students and applicants who wish to enter the BPO workforce.

The BNCT is designed to determine the applicant's proficiency in English, verbal and numerical skills, service orientation, computer literacy, and perceptual speed and accuracy. Outsourcing companies use different ways to gauge applicants so there will be no passing grade.

"The test will streamline the recruitment process of the industry. With the test, companies can now pre-select applicants who do well on the competencies they value and no longer have to do initial testing on so many applicants," said BPAP CEO Oscar Sa�ez.

The initial rollout of the test will be on April 12. It will be available at BPAP partner universities such as Jose Rizal University, Far Eastern University, Centro Escolar University, and University of Makati, as well as accredited testing centers. Test results will be stored and can be accessed at a BPAP-hosted site.


How Do Social Media And SEO Work Together?

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The Effect of Multi-channel Contact Centers on Traditional Call Centers

by vinita @

Not a long time ago, the call center industry was one of the swiftest growing domains, and a plethora of international firms indulged in outsourcing their call center operations. But, with the growth in technology and cutting-edge competition in every … Continue reading

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Positive Growth Seen for PH Economy

by @ 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.


Aquino Admin Hopeful about BPO Investments in Mindanao

by @ News Feed

Rural Mindanao Prepped for BPO Operations

During his speech at the 4th International Outsourcing Summit in Makati City, President Benigno Aquino III is hopeful that the framework agreement between the Moro Islamic Liberation Front (MILF) and the Aquino administration will help boost business process outsourcing (BPO) investments in Mindanao. In this agreement, it is stated that the Autonomous Region for Muslim Mindanao (ARMM) will be replaced by a new political entity which will be called “Bangsamoro”.

President Aquino added that they are striving to develop rural areas in the Philippines for future investors and projects. They are hopeful that someday, IT-BPO firms will operate in the Bangsamoro region. Furthermore, he said jobs produced by BPO firms in provinces, including the New Wave Cities, will provide a positive effect to the entire nation.

The outsourcing industry is considered as a main revenue generator of the Philippine economy. It is expected to post $25 billion in revenues by 2016.


PH Likely to become Top Services Exporter in Asia

by @ News Feed

According to a report done by Philippine Institute for Development Studies (PIDS), it is very likely that the Philippines will lead the Asia-Pacific region when it comes to services exports.

Dr. Ramonette Serafica, a research consultant and author of the study, said there are numerous opportunities in the services sector that are yet to be accessed. He also pointed out that the services sector has significantly contributed to the growth of the Philippine economy through numerous employment opportunities it has produced. The services sector has helped reinforce the investment and revenue levels of the country. For service value, it accounts for 44.15 percent in gross exports.

Compared to its neighbors, Serafica stated that the Philippines' strong information technology-business process outsourcing (IT-BPO) puts it in a strong position.

One of the key factors that contribute to the country's comparative advantage is its workforce. The innovations in information and communication technology and the business models that are also being integrated to the process are further highlighting the capabilities of the Filipino workforce in the outsourcing and offshoring segments.

Another industry that the Philippines may soon be well-known for is ship repair - also because of its competent workforce in the industrial field. The country's geographical location also makes it a premier logistics hub for cargo and ship repair.


IBPAP to Add more Areas to Next Wave Cities List

by @ News Feed

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.


Global Outsourcing Industry Posts Higher Revenues in 2014

by @ 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.


Why Small Businesses Should Outsource Search Engine Optimization

Why Small Businesses Should Outsource Search Engine Optimization

Bell Media Group

No enterprise can be great at everything they need. McDonald's, for instance, would never step into the world of shipping and receiving simply due to their need for the service. By doing so, they would be preoccupied from accomplishing what they are best at. Every business who uses SEO is in the very same boat.

Local SEO Case Study: 4,342.44% More Organic Traffic for a Roofing Site!

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PH ICT-BPO Firms Urged to Join ICT Awards

by @ News Feed

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.


Things to Consider When Outsourcing PHP Development Services in India

by Anirban Das @ Zebra Techies Solution

While you run a business online, it is essential that you adequately concentrate on your web development factors. It is very important to identify that whether the development tasks will be conducted in-house or it will be outsourced. Developing a website in-house involves huge challenges and requires the concrete engagement of your IT team. Whereas,…

US Healthcare Reforms Seen to Create more PH BPO Jobs

by @ News Feed

Philippine Nurses to Find More Jobs in BPO

With the recent Supreme Court verdict on the Affordable Care Act in the US, or Obamacare, more Filipino nurses are expected to find jobs in the business process outsourcing (BPO) sector.

Pasig City Representative Roman Romulo, Chairman of the House Committee on Higher and Technical Education, said the Philippine division of Dublin-based Accenture plc, and New York-based EXL Service Holdings Inc. are seen hiring more Filipino nurses for their operations in Cebu City. Romulo pointed out that both firms are ready to accommodate the needs of American health insurers. Accenture has 16 delivery centers in the Philippines while EXL has three.

BPO firms are said to be hiring Filipino nurses with US licenses, and those who have passed the NCLEX but do not have US licenses yet.

Obamacare is anticipated to increase customer support, insurance claims processing, clinical support analysis, medical coding, and other non-core business support jobs of US health insurers to the Philippines through independent BPO providers or in-house back offices.

Other functions that Romulo said will be open to nurses and even fresh graduates by UnitedHealth Group Inc. are transition management, assistant manager positions, team lead for operations, specialists handling healthcare accounts, customer service, and medical coding work.


RP on course for �solid recovery�

by @ News Feed

Citing a business process outsourcing (BPO) industry that �continues to boom� and a tourism industry that is �way up�, President Arroyo reiterated her confidence of the Philippines being well on its way to economic recovery.

�Overall, I am quite bullish about our prospects for solid recovery,� said the President at the closing ceremonies of the Mindanao Island Cluster Conference of the League of Municiplaites of the Philippines at the Clark Free Port Zone in Pampanga.

�Our manufacturing sector that slowed down during the recession is picking up again. New construction continues unabated. If you pass through metro Manila, you will see a lot of construction cranes. Our hotels are full of businessmen from around the world,� the President said.

The Philippines has recorded a 1.5 percent growth during the second quarter which exceeded expectations and further strengthened the government's confidence in attaining its 0.8 to 1.8 percent growth for the year.


KPMG Sees Shift in Outsourcing Landscape

by @ 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.


Survey Says Data Centers Outsource to Deal with Capacity Issues

by @ News Feed

Data Center Outsourcing Survey

An increasing number of large companies are starting to outsource to the cloud due to a potential congestion of in-house data centers, and to avert additional construction costs.

The first ever data annual assessment from Uptime Institute shows that 36% of large companies which took part in the survey are likely to exhaust their data center storage within the coming months.

The survey also exhibited that companies boost their capacity through server consolidation and power and cooling equipment upgrades, though 29% have opted to move workload to the cloud. It’s actually a new feat because according to Matt Stansberry, a research analyst from the Uptime Institute, large companies are known to have always kept IT operations in-house. He also said “This is a trend we've been seeing," referring to the occurrence that more companies are now outsourcing IT operations.

According to a different study commissioned by Digital Realty Trust, a company that builds and operates data centers for third parties, 60% of the respondents who are looking to expand data center capacities in 2011 opted to lease space from a third party rather than construct their own.

Michael Foust, Digital Realty's CEO, said "Increasingly, enterprises appear to be favoring the lease model, as fewer companies are choosing to go it alone on these capital-intensive projects.”

A total of 525 large data center operators participated in Uptime’s assessment process last March and April, and included "typically conservative organizations" like banks, insurance companies, collocation providers, and government agencies. On the other hand, Digital Realty's study had 300 IT executives directly involved in data center decision-making at large corporations in North America.


PH BPO Sector to Post 15% Revenue Increase this Year

by @ 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.


India Losing Traction in IT-enabled Services

by @ 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.


BPAP Predicts Higher Revenues for Software Outsourcing Sector

by @ 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.


ICT/BPO Sector Pushes for Impact Sourcing in Provinces

by @ News Feed

ICT/BPO Training Programs in Rural Philippines

In a press conference, Lizabel G. Holganza, President of the National ICT Confederation of the Philippines (NICP), said they are working on several programs that can help rural areas take part in the opportunities from the ICT and business process outsourcing (BPO) sectors. The executive is hoping to achieve this through rural impact sourcing. The program is expected to equip particular underprivileged segments such as out-of-school youth and undergraduates with the basic skills needed in ICT-related tasks.

Holganza added that these training programs are also a great way to discourage people in doing malicious or unlawful acts because they are kept busy.

Impact sourcing is expected to bring communities together and make way for income-generating opportunities which could then lead to changes and growth to individuals, and the nation as a whole. By getting employed in the ICT-BPO sector, they no longer have to leave their communities.

One of the key regions eyed for this program is the Autonomous Region in Muslim Mindanao (ARMM).


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RP to Benefit from Changes in Global Workforce

by @ News Feed

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.


Outsourcing as a Cost-effective Solution

by @ News Feed

Cost Efficiency from Outsourcing

According to M K Lawyers Senior Associate Noelene Treloar, outsourcing is a great business solution to cut costs, instead of incurring additional costs for training and integration of new technology.

However, there are still challenges that business owners may face should a deal make a wrong turn. Some of the risks that are often associated with outsourcing are: data security, becoming too lax on the service provider’s performance, selecting the wrong service provider, and mismanagement.

To address and avoid these problems, during the first few stages of negotiating, parties should be able to identify their concerns and requirements for the duration of the contract. These can be rate packages, extent of the project, and which parts or processes do each party own.

Meanwhile, High Caliber Line Australia Chief Executive and co-founder David Torelli said he has partnered with a service provider from India for the backend IT processes of his company. One precautionary measure he applies to his company is he minimizes the sensitive data that he shares with the provider.


Call Center Sector still Top Revenue Earner for RP BPO

by @ 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. 


PH can be Outsourcing Hub for Mobile Apps

by @ News Feed

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

PH as potential mobile app development outsourcing hub

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

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


HIMOAP Eyes $1B Revenue for PH Healthcare BPO

by @ News Feed

The Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP) is projected to rake in earnings worth $1 billion and have 100,000 full-time employees in 2016.

This year, it aims to achieve $433 million in revenues and employ 43,000 workers. The industry saw a growth rate of more than 100 percent from $102 million in 2010 to $277 million last year.

HIMOAP and the Department of Science and Technology-Information and Communications Office (DOST-ICTO) are gearing up to sustain the growth of the industry and reach its targets. Juanloz Botor, President at HIMOAP, said the DOST-ICTO has the same goals as they do, as well as projects such as training programs for the local talent and programs to boost investor confidence. The organization's partnership with the DOST-ICTO is also anticipated to increase the number of professional medical coders and billing specialists in the country.

Furthermore, HIMOAP has already participated in successful events such as at the 2012 American Health Information Management Association (Ahima) Convention and Exhibit held in Chicago, Illinois; the Medical Coding and Billing Master Trainers' Training Program that is set to be integrated towards the end of 2012, and the Healthcare Information Management Outsourcing Services Congress 2012 in the Philippines.


ILO: RP BPO Jobs of �Good Quality�

by @ News Feed

When it comes to wages and working conditions, jobs in the Philippine BPO industry are of �good quality�. This is based on a study from the book �Offshoring and Working Conditions in Remote Work�, written by Jon Messenger, a senior researcher with the Conditions of Work and Employment Programme of the International Labor Organization (ILO), and co-edited by Naj Ghosheh.

According to the study, Filipino BPO employees work 44.7 hours per week, which can be considered as quite reasonable. Meanwhile, BPO workers get an average monthly salary that is 53 percent higher than the minimum salary received by those who work in other industries.

However, the study found out that 47.7 percent of Filipino BPO workers who took part in the survey are experiencing insomnia, and more than half are suffering from fatigue. �Workers, especially in call centers, have also relatively low autonomy. Their jobs typically involve heavy workloads backed by performance targets and tight rules and procedures enforced by electronic monitoring which are known to produce high levels of work-related stress,� the authors said.


Global Outsourcing Activity Report

by @ News Feed

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.



More BPOs Eye the Philippines for Expansion

by @ 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.


EMEA Region Posts Record Outsourcing Growth in Q2

by @ 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.





PH Real Estate Market Shines in Asia

by @ News Feed

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.


Women Working in Public Sector more Satisfied than those in BPO

by @ News Feed

Results of the study conducted by the Associated Chamber of Commerce and Industry of India (Assocham) show that women who work in public sector undertakings (PSUs) are more satisfied than those who are engaged in business process outsourcing (BPO) and knowledge process outsourcing (KPO) sectors. This is due to the healthy working environment, good annual income, convenient working hours, and job security being offered by the public sector.

"It is found that women employed in this particular sector feel lack of personal growth and development since they perceive less room in the decision-making process and less flexibility in working hours, besides pressures to perform and deliver targets," said Assocham President Swati Piramal.

Respondents of the said study work in different areas such as banking, power, finance, petroleum, and consultancy across 11 states.


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PH Takes Third Spot in Global Outsourcing

by @ News Feed

According to a report by Canadian-based ICT research and advisory body XMG Global, India will capture 42.5% (US$61.5 billion), followed by China with 31.5% (US$45.7 billion), and the Philippines securing the third spot with 7.4% (US$10.7 billion) for the US$464 billion global outsourcing revenue.

XMG Global Chief Analyst Lauro Vives 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%, slowing down from last year's 2.9%.�

Providers from India and the Philippines that cater to the US market are greatly affected by the devaluation of the US dollar, where providers from China are less affected because their clients are mostly based in East Asia.

Seventy-five percent of China's outsourcing earnings come from the domestic market, and are used as leverage in competing globally. This is probably the reason Indian providers such as Tata, Infosys, Wipro and Satyam, which are known to avoid the said market, seem to be heading towards the trend to expand the market. The Philippines, on the other hand, saw an opportunity in the non-English speaking market.


DTI Promotes PH BPO, Products to European Countries

by @ 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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Manila Sets Eyes on BPM Leadership in 2016

by @ 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.


Influx of Investments Predicted for the Philippines

by @ News Feed

According to the "The Report: The Philippines 2014", a study released by Oxford Business Group, a leading market research and consultancy agency, foreign direct investments (FDI) in the Philippines will maintain growth momentum this year.

The report emphasized on the upcoming potential investment opportunities in the country. Rodrigo Diaz, Editorial Manager of the report, noted that within the ASEAN region, the once struggling Philippines posted positive FDI results in 2013.

Diaz added that during the first nine months of 2013, a 33-percent year-on-year increase on net FDI inflows which amounted to $3.11 billion was posted. He also stated that Fitch's recent rating upgrade of BBB- for the country improved its position in the investment grade space, and so did the ratings from Moody's and Standard and Poor's.

For 2013, Diaz noted that the country has improved so much that it is now a preferred destination for investments.


PH Peso in a Better Position than Peer Currencies

by @ News Feed

With this year’s increase in interest rate by the US Federal Reserve, the Philippine peso is seen to lose traction. However, analysts expect that it will perform better compared to currencies in neighboring currencies.

During this year’s first quarter, the peso-dollar exchange rate fluctuated from P44.06:1$ to 45.065 and became steady at P44.58.

Guaya Yroen Melgar, research analyst at MetisEtrade Inc., said the peso has been stable while investors waited for Fed’s decision. She added that an increase in rate would help the circulation of money back to the US, and strengthen the demand for dollars. The Fed is firm with its decision to keep the rates until the next meeting, which will happen in June.

The organization began the program last October, and its $85-billion monthly bond purchases decreased in January 2014.

Bank of the Philippine Islands’ lead economist Emilio Neri Jr. said a 6.1 percent growth in the country’s gross domestic product (GDP) was seen last year, but depreciation is caused by the Fed rate hike.


DTI: 1 Million Jobs in PH BPO by 2014

by @ News Feed

The Department of Trade and Industry (DTI) predicts that by 2014, there will be a million workers who will be employed in the business process outsourcing (BPO) sector, and by 2016, it could reach 1.5 million.

According to Trade Secretary Gregory L. Domingo, the robust outsourcing sector of the Philippines, which he said posted strong growth of 15-20 percent annually, could help the industry reach the 2016 jobs target.

Last year, the local BPO sector employed 750,000 Filipinos and by the end of this year, it is predicted to reach 920,000. Moreover, the sector is anticipated to post revenues that can reach $27.2 billion this year, which is nearly $10 billion more than last year's $17.77 billion.

Meanwhile, Cebu, which ranked 8th in Tholons Inc.'s top outsourcing destinations, is seen to provide more jobs as well, tipping the 100,000 mark this year.


Aquino Admin Expresses Confidence in PH ICT-BPO

by @ News Feed

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

PH's ICT Segment Leads BPO Sector

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

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

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

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


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The Future of Contact Center Outsourcing

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New Mix-use Properties in PH Seen to Boost BPO

by @ News Feed

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.

Indian IT-BPO Exports to Reach $175bn by 2020

by @ News Feed

The National Association of Software and Services Companies (Nasscom), India's software industry body, predicts that revenues in the country's IT-BPO exports will reach $175 billion by the end of 2020.

Opportunities outside core markets, verticals, and customers are expected to drive 80 percent of the incremental growth. �The new mantra is to innovate, redesign and reinvent. We have an opportunity of tapping $175 billion in export revenues by 2020. The only constraint to tap this opportunity is not the demand but our ability to address it,� said Nasscom President Som Mittal.

Last year, export revenues reached $59 billion and it is estimated that the industry had grown by 19 percent this financial year.

India gets the lion's share of the global sourcing market - about 55 percent in 2010. Mittal said that amidst the challenges, India's success can be attributed to its position in the industry as a global outsourcing hub.


PH BPO Urged not to be �Complacent�

by @ 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.


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Business Exec Optimistic for PH, Southeast Asia

by @ News Feed

During the Asian Financial Forum in Hong Kong, Teresita Sy-Coson, Vice-chairperson at SM Investments Corporation and Chair of the country’s largest bank, BDO, said the Philippines will retain a bullish economy as it has been growing at a range of 6-7 percent for the past couple of years.

Growth in the Philippines is widely being driven by the expansion in the business process outsourcing (BPO) sector, urbanization of the country’s provinces, and continuous remittances from overseas workers.

As for Southeast Asia, she said the region is a beacon of growth amid global uncertainties and economic slowdown seen in other nations.

Sy-Coson pointed out that strong domestic private consumption will shelter the country from drastic and detrimental effects of external shocks such as economic slowdown in much developed economies. Also, remittances from Filipinos working abroad and the revenues from the BPO sector have reinforced consumption, and lead to growth in real estate and tourism.

Economic growth is also expected to remain strong even with the decrease in agricultural production and slower government spending.


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

by @ News Feed

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.


OFWs seen Coming Home to Work at the BPO Sector

by @ 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.


Concerns CIOs Face with EHR Providers

by @ News Feed

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.


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PH IT-BPO Eyes Top Spot in other Outsourcing Areas

by @ 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.


Another Anti-offshoring Bill Proposed in the US

by @ 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.


Stability Anticipated for PH Money Supply Growth

by @ 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.


UK Takes the Lead in EMEA Region for Outsourcing

by @ 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.


Key Outsourcing Trends to Watch Out For in 2009

by @ News Feed

The International Association of Outsourcing Professionals (IAOP) predicted the top five outsourcing trends for 2009: nearshoring, outsourcing volatility, professional expertise to be further valued, success of strategic outsourcing companies, and emphasis on social responsibility.

  • Nearshoring - Companies do not have to outsource business operations in far-off countries. Outsourcing closer to home will be a trend since there will be a large pool of skilled workers as a result of layoffs in different industries.

  • Outsourcing volatility due to global uncertainty - The outsourcing industry will experience slow growth this year. Companies will work on shorter contracts and with few outsourcing partners.

  • Pressure on outsourcing professionals - Experts in organizations will be valued to manage the outsourcing process.

  • Success of strategic companies - Strong and strategic companies can take advantage of the current economic crisis. These businesses will also be increasingly valued in the outsourcing industry.

  • Social responsibility- Welfare programs and working on socially responsible environments will be outsourcing themes this year.

IAOP, the global, standard-setting organization and advocate for the outsourcing professionals, came up with these key outsourcing trends based on analysis of the global factors that have an impact on the outsourcing industry.


Growth of IT-BPO in the Philippines

by @ 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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Global Outsourcing Market Posts 7% TCV Growth

by @ News Feed

Positive growth figures were posted in the 4Q11 Global TPI Index report of leading technology insights, market intelligence, and advisory services firm Information Services Group's (ISG), with the annual total contract value (TCV) hitting the highest point since 2005 at $95 billion. The total number of signed contracts is also at its highest at 870.

Compared to the same period in 2010, a seven percent increase in TCV was witnessed during Q4 2011 at $26.4 billion. The 4Q11 Global TPI Index covers commercial outsourcing contracts valued at $25 million or more. The key drivers of the growth are $1 billion worth contracts from BPO-related TCVs initiated in Europe, the Middle East, and Africa (EMEA).

TPI Index proved that the gradual increase of small contracts helped establish contracting activities for over 10 years. Moreover, contracts which are valued $100 million or lower increased three-fold, while medium and mega deals are stable since 2002.

John Keppel, Partner & President, Research and Managed Services at ISG said the increase in global BPO transactions and continued growth in overall contract value show the evolution of the outsourcing market.

The 4Q11 Global TPI Index also showed that the sudden influx in the largest contracts helped augment the market for the period.

EMEA contributed four out of five mega-deal awards. TCV of mega deals grew 22 percent from the previous quarter. The region's 4Q11 TCV grew 12 percent year-on-year and 27 percent for the whole year at $55 billion.


PH Outsourcing Predicted to Post 13.9% CAGR until 2018

by @ News Feed

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.


PH BPO Workforce Expected to Earn P247B this Year

by @ 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.


ADB Economist: BPO cannot �Save� PH Economy

by @ News Feed

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.


New Operating Model Needed for Growth of IT Sector

by @ News Feed

Advisory services firm KPMG and India's National Association of Software and Services Companies (Nasscom) recently released a study called �Hub & Spoke Operating Model for the Indian information technology and business process outsourcing (IT-BPO industry)�, which states that new strategies are needed for growth and Indian IT companies can undertake global hubs and lead the IT outsourcing sector, so long as the Indian government and other notable organizations are in favour of their plans.

The report shows that clients and providers prefer flexible models that can help them manage multiple locations, reinforce partnerships, and build their brand. The model that is expected to accomplish all these goals is the Hub & Spoke model, which basically means having several locations that will perform the back end processes, while assigning a central �hub' or a core facility for the entire operation.

The hub will also be responsible for management-related work such as skills development, customer support, monitoring, and even employee management roles. The spokes will then be regarded as flexible delivery centres which can be modified based on the requirements of the company.

Genpact's President and CEO NV �Tiger' Tyagarajan said the Hub & Spoke model can lead to more opportunities for IT providers, especially for India, a prime destination for ITO/BPO services due to several factors such as availability of workers, lower costs, and skill advantage.


SearchCap: SEO content audits, a search marketer’s view of Facebook & a link study

by Amy Gesenhues @ SearchCap: Daily Search Engine News Recap

Below is what happened in search today, as reported on Search Engine Land and from other places across the web.

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BPO to Play a Huge Role in PH Growth Plan

by @ 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.


BPOs Urged to Reduce Job-related Stress, Stop High Attrition Rate

by @ 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.


ManAcq Dept. Takes Part in 2nd Job Fest and Career Fair 2011

by @ 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.


PH Moving Up to Become Leader in Multilingual BPO

by @ 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."


BPO Revenues Seen to Surpass Remittances in 2 Years

by @ News Feed

While both business process outsourcing (BPO) revenues and remittances from Filipinos working abroad are strong economic growth drivers, Joseph Incalcaterra, Asia economist for HSBC, believes that in two years, revenues from the BPO industry could overtake remittances.

He said BPO contributes in improving the country’s competitive landscape, as it can be sourced to other places which results to developments in those areas.

Last year, BPO revenues increased by 18 percent, posting $18.9 billion, while remittances posted slower growth at 5.9 percent, reaching $24.3 billion.

According to Incalcaterra, the English-speaking workforce gives the country an edge, and the BPO industry will remain a key growth driver for the country in the next five years.

The industry aims to post $25 billion in revenues and have a 1.3 million-strong workforce by the end of 2016. Officials of the Information Technology and Business Process Association said the industry is right on track, as different segments such as voice, gaming, software development, and healthcare posted growth.


PH BPO Earnings 15% Higher in 2013

by @ News Feed

PH BPO On Track in Hitting 2016 Targets

The business process outsourcing (BPO) sector of the Philippines is now closer to its 2016 targets of 1.3 million employees and $25 billion in earnings.  

According to data released by the Contact Center Association of the Philippines (CCAP), revenues from the country’s BPO sector amounted to $10 billion in 2013 - 15% higher than 2012’s $8.7 billion. In line with that, 2012’s revenues were reportedly 18% higher than revenues posted in 2011.

As for the number of full-time employees (FTE), in 2012, the sector had 497,000. It rose by 18% or 89,000 in 2013, and the total headcount reached 586,000. The industry body said they are striving to achieve a compounded growth rate of 14-15% for both revenues and FTEs in 2014 and 2015.

The latest performance of the sector puts it on the right path, making the industry body confident that the 1.3 million employees and $25 billion-revenue goals will be met in 2016.

CCAP explained that voice-based processes make up 70% of the entire information technology-business process management (IT-BPM) industry.

Moreover, the organization named the United States as the country’s key market for call center processes, and countries such as United Kingdom, Australia, and New Zealand are cited as emerging markets.

Meanwhile, Benedict Hernandez, CCAP President, said the Philippines’ strength and resilience in the voice industry helped protect it against external challenges that can affect its growth and sustainability. An example would be the continuous decrease of the US call center market and customer service accounts.

Another challenge, according to the executive, is the continuous fluctuation of currency. He said call center firms should come up with innovative solutions that can help them stay relevant in the cutthroat world of the contact center segment.

The CCAP has around 100 member organizations. Recently, it was reported that the Land Transportation Franchising and Regulatory Board (LTFRB) has partnered with industry representatives to come up with solutions that can help improve the safety of BPO workers who take public transportation.


Forrester Predicts IT Market Transitions in 2012-2013

by @ News Feed

In the next two years, slower activity in IT spending will be seen as companies bounce back from the financial crisis, and there will be transition from using old technologies to adopting new ones. These are some of the market insights of technology and market research firm Forrester Research, as stated in their Global Tech Market Outlook for 2012 and 2013.

The IT market posted a 10-percent growth rate in spending back in 2011, according to Forrester Research Lead Analyst Andrew Bartels. This year, however, it will go down to five percent, but will bounce back by 2013 at eight percent.

A shift from old tech platforms to new ones will likely be seen in the next two years. New technologies will enable companies to be more productive and efficient particularly in decision-making processes. This transition will also result to an increase in demand for IT consulting, as companies that will be making the shift will need guidance on how they can benefit from using newer tech platforms.

The report also states that spending on mobile devices will grow to $28 billion by 2013. This can be attributed to the increase in spending on Apple products. There will be a decrease of three percent in spending on Wintel products this year, while cloud computing is seen to fuel growth of the software market. 


Expert Says Egypt can be Top Outsourcing Location of Choice

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Denise D'Elia, a Vodafone representative, believes that Egypt has what it takes to be the top outsourcing destination.

Fifty percent of Egypt's population belong to the age bracket of 25 and below, so it has a huge pool of young talent. Egypt has the third largest talent pool in the region, with 330,000 graduates produced annually. Many students also specialized in areas which are suitable for the outsourcing industry. Aside from the huge talent pool, D'Elia said Egypt's aptitude in several European languages gives it a competitive edge.  

There are also government initiatives that focus on making the country a more suitable location for outsourcing. These include tax reforms, customs simplification, and infrastructure programs.

Based on an AT Kearny survey last year, Egypt was in the 13th spot in the field of global service delivery. This year, the country got the sixth slot.


SHORE Solutions joins IBPAP trade mission to CeBIT Australia this May

by Shey Paurillo @ SHORE Solutions Inc.

SHORE booth to showcase IT outsourcing capabilities. SHORE Solutions is one of only a handful of leading business process outsourcing (BPO) providers from the Philippines participating with the local industry’s enabling organization, Information Technology and Business Process Association of the Philippines (IBPAP), in CeBIT Australia from May 5 to 8, 2015 at the Sydney Olympic … Continue reading SHORE Solutions joins IBPAP trade mission to CeBIT Australia this May

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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.


Gartner Lowers Global IT Outsourcing Projections

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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.


BPO Earnings to Surpass OFW Remittances

by @ 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 Construction, Economy Driven by IT-BPO, Remittances

by @ 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.


What IT Buyers are Looking for

by @ News Feed

Information technology (IT) clients are anticipated to focus more on capability, accessibility, and stability, according to an Ovum report titled "2013 Trends to Watch: Bundled Outsourcing". The report highlighted influencers in the IT market for 2013. These include IT services bundling.

Ovum Principal Analyst of IT Services Jens Butler said since the business environment is very unstable nowadays, decision-making has become more challenging. Even the prominent markets and regions experiencing rapid growth are left unsure of what is to come for 2013. Large companies are also expected to go for value for their money by looking at capability, accessibility, and stability of vendors. The report also showed that clients are looking for long-lasting solutions that cover every aspect of the business.

Meanwhile, increase in demand is expected in other newer segments such as analytics, social media, cloud, and mobile technology. This could mean more opportunities for service providers.

However, Butler said enterprises should closely monitor bundled services and vendors should enhance their portfolio to have an advantage, should there be an upswing later this year.


Using Heatmaps to Increase Website Conversion Rate

by Sam Cyrus @ Return On Now

The following post is copyrighted by Return On Now - Austin Internet Marketing Consulting Services

Welcome to this guest post about heatmaps. Many digital marketers are trying out a variety of new tools to see what has the biggest positive impact on their website and conversion rate. Every owner wants to know if their site’s architecture and design are giving them the best results. Is the website getting visitors to…

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Firms Need to Align Goals with Technology, Says Gartner

by @ News Feed

The Gartner Sourcing & Strategic Supplier Relationships Summit 2015 by IT research and advisory firm Gartner was launched as it highlighted that this year, it would be about digital business.

Helen Huntley, an analyst at Gartner, explained that digital business is rapidly taking over and will continue to grow in the coming years. In 2014, CIOs revealed that 22 percent of revenues were generated by digital products and services - and could grow by 41 percent by 2019. CIOs will be the main players as they will be the ones who will see to it that the integration process is done correctly.

However, it was discovered that though the IT department and IT executives play a major role during the integration and development of new IT schemes, they have limited access to the budget. Gartner released a report indicating that this year, 38 percent of the total IT spend will fall under the control of the business, and will increase to 50 percent in 2019.

In addition to not having control over the budget, IT executives have to trust a different entity for the development. It was found that only 15 percent of CIOs expect that digital business development be done in-house. Huntley said amidst being singled out in almost all processes, CIOs will have their turn to shine this year because IT is alive in all digital businesses.


Eastwood City Set to Open New BPO Building

by @ News Feed

Eastwood Cyberpark Philippines to Open new BPO Building

TechnoPlaza Two is the newest addition to Eastwood Cyberpark, the largest IT-BPO hub in the Philippines. The office building has a gross floor area of 34,000 sqm, with seven floors of office space. It will also have a supermarket at the ground floor and various establishments at the second floor. A bridge way will connect TechnoPlaza Two with the Eastwood Mall.

Megaworld FVP for Business Development Jericho Go said, “As the local BPO industry is forecast to generate US$11 billion this year in revenues, up from $9 billion in 2010, the country’s first and largest cyberpark continues to help the industry grow faster.” With this expansion of facilities, Megaworld aims to help the local outsourcing industry in reaching its revenue goal of $25 billion by 2016.

The Philippines, currently the 2nd top business process outsourcing destination, is predicted to surpass India’s $12.4 billion BPO industry this year. Proof of this is the country’s compounded annual growth rate (CAGR) at 27.6% in 2008, compared to India’s 11.92%.


Why You Should Outsource Data Entry to a Professional Company

by Virtual Assistant @ Virtual Helper 247

Data entry is a self-explanatory term. It is the act of entering or updating information into a computer system. A data entry clerk or a data entry operator is responsible for entering different types of information into electronic formats so that it can be used by companies or organizations as per specific requirements.Whether or not…

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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.



Outsourcing sees uptick in contract renegotiations

by @ News Feed

A survey by Gartner Inc. indicates that out of 1,073 outsourcing organizations surveyed worldwide, almost 50% of them experienced a sharp increase in contract renegotiations. The survey further revealed that the majority of the renegotiations involved bids to cut costs due to the recession. Gartner analyst, Allie Young, warned that these renegotiations only leave room for mistakes on both ends of an outsourcing deal.

Young says that the major complaints he hears from CIOs is the lack of innovation from outsourcing deals. �My question is, What did you think you were going to get? There is no provision in the contract for innovation� Young commented in response.

Young further explained that successful outsourcing contracts depend on documentation. Citing Apple's $100 million investment in an outsourcing provider in hopes of acquiring innovative services, Young argued that the documentation of innovation is very difficult and rare in the industry. "About the best we have been able to do is dedicate a pool of resources from the supplier side, whose job is to sit in the client's business and look for new opportunities to bring new projects to bear," stated Young.


The Ultimate List Of Local SEO Citations You Will Need

by Majestic Warrior @ Majestic Warrior: Digital Marketing Agency in Phoenix – Online Advertising Company

Why Citations Are Important to Rank in Local Maps Citations are important and crucial in order to help you with your local SEO and local rankings online. These listings (aka citations) play an important role in your online marketing. Being listed on many major citations help your business in several […]

Are you an SME business owner? Here are 5 things you need to ask yourself before you outsource

by Bastiaan Mawhin @ SHORE Solutions Inc.

Fact: Small and Medium Enterprises (SMEs) that wish to compete against more established organisations need to overcome numerous business challenges. These could be limited capital, little brand recognition, lack of established operational structure, few experienced employees, an absence of a distribution network, credit or relationship with suppliers, or even office space. Daunting as it may … Continue reading Are you an SME business owner? Here are 5 things you need to ask yourself before you outsource

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WNS unveils delivery center in Manila

by @ News Feed

WNS' Outsourcing Delivery Center in Manila

Leading global business process outsourcing provider, WNS, announced that it had  launched its new outsourcing delivery center in Manila, CNN reported. The delivery center was inaugurated by President Gloria Macapagal-Arroyo, who met with WNS employees after an opening ceremony.

"In a very short time, we have grown ahead of plan and expanded the services we deliver to our global client base from the region. This is truly a testament to the high quality talent in the country and their strong focus on service excellence," stated Group Chief Operating Officer of WNS Global Services and Chairman, WNS Philippines, Anup Gupta.

According to CNN, WNS Philippines has grown to over 1100 employees in only 18 months. WNS formed WNS Philippines early in 2008 in a joint venture with Advanced Contact Solutions. The new outsourcing delivery center will service several industries that include consumer products, travel and financial services, telecommunications, and provide voice and back-office services. 

President Arroyo characterized the outsourcing event as a sign that her Cyber Corridor project was “in full swing”. The Cyber Corridor project aims to create interconnected centers for technology-related services in five “super-regions” that include Baguio, Clark, Metro Manila, Cebu, and Davao.

“We are extremely grateful to the government of The Philippines for the support extended to us. We see tremendous opportunities in providing world-class services to our customers as we continue to grow our business,” commented Prabhakar Bisen, CEO of WNS Philippines.


RP BPO gets bandwidth expansion boost

by @ 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


IT Outsourcing Deals Drop for Q3

by @ News Feed

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.


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Call Centers' Absenteeism Rate Higher in PH and Asia Pacific

by @ News Feed

Business process outsourcing (BPO) employees in the Philippines and rest of Asia Pacific are more likely to take leaves of absence than in other countries due to erratic working schedules.  Nevertheless, call centers in Asia scored 100 percent when it comes to customer satisfaction as agents in this area, particularly in the Philippines, are known to be �more patient�.

According to a report done by Dimension Data, the Asia Pacific region posted a higher absenteeism rate at 15.5 percent than the rest of the world at 14.9 percent.

Dimension Data's General Manager for customer interactive solutions Nagi Kasinadhuni said graveyard work shift is the reason call center agents in Asia have a higher absenteeism rate. However, the region had posted a lower attrition rate.

Kasinadhuni added that Asian contact centers are shifting their service offerings to becoming customer management centres as they are expanding from being just a contact center. Also, the study showed that improvement of service will entail a lot of upgrades for call centers and that customer service is now more mobile as smartphones become more popular.

The Philippine call center sector posted an annual growth rate of 21 percent in the last five years, from $2.6 billion in 2006 to $6.2 billion last year.


PH BPO to Drive Real Estate Market Growth this Year

by @ News Feed

Philippine Outsourcing Sector Key Market for Real Estate

Based on a report by the Urban Land Institute (ULI) and PwC, the country’s business process outsourcing industry will continue to be a growth driver for the property market as it calls for more office space and development.

Manila was at the 8th spot in the list of Asia Pacific countries in investment and development prospects, according to the Emerging Trends in Real Estate Asia Pacific 2015 report. This ranking is higher than Singapore, Taipei, and Bangkok.

The study stated that Manila’s popularity will be supported by strong economic growth as well as the ongoing investment in the outsourcing industry. Also, the robust industry resulted to strong growth in retail and housing sectors.

Hans Sicat, President of the Philippine Stock Exchange, said the industry will continue to grow as BPO hubs in the country expand their services to foreign clients. He added that the talent pool and the expansion of various skill sets available in the country are strong growth indicators. There is also an increase in the number of countries where the Philippines offers its services.

Alex Cabrera, Chairman and senior partner at Isla Lipana, said local companies also contribute to the growth of the industry. He added that the educational system must be realigned to include courses that focus on training BPO agents.



Moody's Affirms Philippines' Baa2 Rating, Stable Growth Outlook

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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.


PH BPO to Continue Driving Demand for Real Estate

by @ 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.


US Anti-outsourcing Bill to Affect Offshore Call Centers

by @ 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.


Continuous Growth Seen at IT Outsourcing Market

by @ News Feed

Mobile Computing Outsourcing Growing in new ITO Markets

A 13-percent growth rate is projected for the new IT outsourcing (ITO) markets such as Asia-Pacific and Greater China.  

According to a research done by Gartner, businesses are now looking to adopt and integrate more IT-based processes such as mobile computing.  

In an interview, Freddie Ng, Senior Analyst at Gartner, shared with BizIT that more and more businesses are adding new technology to their processes to keep up with the demand of users, which in turn is propelling the growth of IT outsourcing.

Another reason he said is the aspiration of companies to become more agile, which is why they are keen on cloud integration. He also noted that CIOs are looking for more convenient and flexible solutions that will enable them to avoid spending on building IT infrastructure that will be irrelevant in the future. Some of the processes CIOs are considering are co-sharing of data centers, hosting, and cloud computing.

Mobile adoption is also a crucial factor for the growth of the ITO market in the region. The rise of the use of mobile devices such as smartphones, tablets, and other devices leads to an increase in demand for mobile device management services.


Report Reveals Growth in IT Outsourcing

by @ 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.


Great Copywriting Concepts from Past Copywriters

by Trizhia @ Outsource Philippines

The art of advertising is beyond doubt older than what you think. In the same way, history has records of ancient people advertising using their ... Read More

The post Great Copywriting Concepts from Past Copywriters appeared first on Outsource Philippines.

Clients Predicted to Spend More in IT next Year

by @ News Feed

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.


Everest Says Indian Buyers Granting Larger Outsourcing Contracts

by @ News Feed

26 IT & BPO Contracts in India Recorded in Q3

Indian buyers granted 26 IT and business process outsourcing (BPO) contracts in third quarter of this year, adding up to the annual contract value (ACV) of $290 million. According to global research firm Everest, this is more than double of the $129 million ACV posted in the same period last year.

“Indian companies are maturing to a level where they are handing out large outsourcing deals, transformational in nature. Companies are going global and at the same time competing in local market with MNCs (multi-national corporations), and hence they are looking to aggressively leverage technology for growth,” said Amneet Singh, Vice President-Global Sourcing, Everest.

Prominent deals granted to service providers include IBM’s outsourcing deal with Bharti Airtel and Jet Airways, and Wipro’s contract with Central Bank of India as well as UCO Bank.




BGC to Open More Office Spaces for BPOs

by @ News Feed

BPO Offices in Bonifacio Global City

Bonifacio Global City (BGC), one of the central business districts (CBDs) in the Philippines, is set to launch more office spaces due to the strong demand in the business process outsourcing (BPO) sector.

According to KMC MAG Group, a real estate firm, the demand of office spaces from BPOs operating in the country will continue to rise since more companies are setting up and expanding operations.

KMC MAG cited its 2015 Metro Manila Property Outlook where it was stated that there will be nearly 560,000 square meters (sqm) of office space made available in CBDs this year - almost all of which will be found in BGC. Moreover, the outlook showed that BGC’s current office spaces stock reached 778,867 sqm, and 956,290 sqm are already in the works starting this year until 2018.

The office take-up in BGC declined by 44.1 percent to 94,500 sqm compared to 2013 where building turnover activity was particularly high. The report also revealed that office space rent in BGC is P850 per square meter.

One of the factors cited in the report as to why firms prefer BGC is because of the lower taxes imposed by the local government compared to other business districts in the country.


US Anti-outsourcing Bill Gains Supporters

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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.


P500M Allotted to Boost BPO, High-growth Areas

by @ 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.


Gartner Predicts 7.7% Growth in Indian IT Spending

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Indian IT Spending to reach $71.5 billion in 2013

New services such as cloud integration, mobile, social media processes and metrics under the information technology (IT) sector are anticipated to fuel IT spending in India, as global IT outlays are slowing down.

According to global research firm Gartner, India’s IT spending can post a 7.7% increase, reaching $71.5 billion next year, from the $66.4 billion forecast this year.

According to Gartner’s Senior Vice-president and global head of research Peter Sondergaard, India remains bullish and competitive, even with the continuous increase in wage rates. He added that even if the budgets of clients are smaller, IT providers in India are thriving as they are making the most out of alternative sectors and processes.  

It is also projected that by 2016, IT spending in India will be subdivided into telecommunications, IT services, and hardware. Telco is seen to become the highest, amounting to $47.8 billion, followed IT services and hardware.

Meanwhile, Partha Iyengar, Head of Research for Gartner India, said for the Indian market, mobile gadgets will still be the fastest growing segment, taking up 42%, and will likewise account for almost 26% of the country’s IT spending.

It was found out through a Gartner survey that CEOs are highly considering investing more on technology as it will become a crucial factor for businesses in the future.  CIOs are predicted to create workable strategies that will coincide with the changes in their respective industries and economy.


BPOs to Set Up Shop in Cebu

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More Companies Heading to Cebu to Set up BPO Operations

According to Joel Mari Yu, Managing Director at Cebu Investments and Promotions Center (CIPC), United Health Care, EXL, Health Care Corporation of America (HCCA) Philippines, Inc., Promet, and Talleco are some of the firms that are determined to set up shop in Cebu.

Yu said these firms offer knowledge process outsourcing (KPO) services which are considered to be of higher value than the usual call center operations. Some of the KPO services are business solutions, medical claims analyses, data mining research outsourcing, and many more. Moreover, he noticed that monthly inquiries at CIPC have increased over the last two months.

Yu also noted that qualifications for applying in companies have evolved. Nowadays, candidates in this segment have Masters in Business Administration or are economists, statisticians, and have medical degrees. Yu said new outsourcing clients are looking for more nurses or medical professionals, which is good news for nurses who are having a hard time landing a job.

He estimated that there will be about 4,000 job opportunities in Cebu if each of these BPO firms would hire at least 500 employees.

About 52 BPO firms are currently operating in the province, with a workforce reaching 45,000.


Outsourcing for SEO and other services

by e4 BPO @ e4 BPO Business Process Outsourcing Call Center

Why do companies outsource?

The answer varies depending on the needs of the company.  Some companies would outsource because their business outgrew their capacity. However, most of the top reasons why companies outsource are the following:

Reducing costs – In most situations, it is cheaper and hassle-free to outsource than increasing the labor force especially [...]

Contract Value in BFSI Outsourcing Drops

by @ News Feed

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.


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.


Global Outsourcing Spend to Reach $233B by 2020

by @ News Feed

According to Nasscom, a world-renowned information technology organization, the future seems bright for the global business process management (BPM) industry as they predict a 6-7 percent growth on spending up until 2020.

Growth Seen in Global Outsourcing Spend

The industry body predicts that the entire BPM sector will increase from $130 billion to $233 billion by 2020.

Nasscom President Som Mittal said the key growth contributors of the sector are: the shifting healthcare regulations in the US, Europe’s financial services and insurance (BFSI) sector, and the business-process-as-a-service (BPaaS) gaining traction within the horizontal services segment.  

He added that the industry is gearing up for high-value offerings to cater to the demands of the new breed of customers who are looking for business technology solutions, cloud services, platform-based delivery, and enterprise mobility.

The Indian BPM sector is also anticipated to grow from this year’s $20.8 billion to $50 billion by 2020.


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.


UK Government Says No Protectionism

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During an interview with BusinessMirror, Hugo Swire, a visiting Minister of State at the Foreign and Commonwealth Office, said the British government has no plans of coming up with a bill similar to the Bring Jobs Home Act proposed before the United States Congress. He noted that even if the British economy is in crisis, they will not prioritize protectionist methods.

When asked if they are thinking of creating a similar bill which is supported by US President Barack Obama, he said they believe that such acts are short-term solutions with long-term consequences. He noted that it is common for some politicians to respond to economic depression by creating such barriers.

Moreover, Swire stated that protectionist measures could only lead to more problems because each country’s strength relies on its ability to be globally competitive and have a globalized economy to attract more investors, and barriers will only weaken local industries.

Bring Jobs Home bill shook the BPO industry

The Bring Jobs Home bill was sponsored by reelectionist Democrat Sen. Debbie Stabenow of Michigan, and shook the business process outsourcing (BPO) industry, including the Philippines’, as they lobbied for approval before the US Congress. The bill was designed to address the economic crisis in the US. It is aimed to modify tax provisions and eliminates government grants for businesses that outsource offshore.

Swire added that they are opposing protectionist measures and reiterated that the UK is open to investments and is a part of the global trade.


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by Julie Garcia @ SEO Girl Powa

Learn How to Get Your Webpages Ranking Higher in the Search Engines Although Google will not disclose their secret to their algorithm, there are many obvious factors [...]

Outsourcing SEO Program to Agency vs Building In-House Team

Outsourcing SEO Program to Agency vs Building In-House Team

Vertical Measures

Discover the pros and cons of outsourcing the management of your SEO program to an agency vs building an in-house team.

SearchCap: AdWords AMP landing pages, Google & Apple tracking & SEO mistakes

by Barry Schwartz @ SearchCap: Daily Search Engine News Recap

Below is what happened in search today, as reported on and from other places across the web.

The post SearchCap: AdWords AMP landing pages, Google & Apple tracking & SEO mistakes appeared first on Search Engine Land.

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

by @ News Feed

Onshore Business Outsourcing Solutions

Several topics were recently discussed between 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.


Global Outsourcing: Know The Advantages You Will Acquire From Outsourcing

by Krista Mae Andico @ Eternus Global Outsourcing| Philippines Ecommerce Experts: Core PHP Developer Philippines, Ecommerce Development and Consulting, Ecommerce SEO and Copywriting

Global Outsourcing will benefit your company raise and save money. There are other advantages of outsourcing that go beyond money. Here are the top seven advantages of outsourcing: 1. Focus on Essential Activities In rapid growth periods, the back-office operations of a company will expand also. This expansion may start to consume resources (human and […]

The post Global Outsourcing: Know The Advantages You Will Acquire From Outsourcing appeared first on Eternus Global Outsourcing| Philippines Ecommerce Experts: Core PHP Developer Philippines, Ecommerce Development and Consulting, Ecommerce SEO and Copywriting.

Worldwide IT Services Revenue Down 5.3% in 2009

by @ News Feed

Global research firm Gartner reported that the worldwide IT outsourcing revenue decreased by 5.3 percent last year, as five of the largest IT services vendors reported decline of up to 11.8 percent in revenue. From $805 billion in 2008, total revenue only reached $763 billion in 2009.

Accenture sales dropped 11.8 percent, while HP reported a 10.4 percent decline, from $38.6 billion in 2008 to $34.6 billion last year. IBM's revenue fell 6.6 percent, CSC with 6.5 percent, while Fujitsu's revenue was 0.4 percent lower than in 2008.

According to Kathryn Hale, research vice president for Gartner's IT services group, IT services providers had made some significant changes as they faced the challenges last year. "Their priorities changed and their business focus rushed from aggressive sales or tactical revenue acquisition, to strategies designed to simply maintain revenue levels, keep a handle on costs and manage profitability."


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by Anirban Das @ Zebra Techies Solution

Facebook is the top most social media platform used by millions of users, globally. This platform is essentially a predominant place, where digital marketers promote their products and services. By utilizing this platform, one can effectively reach their target number of customers and promote their products and services. The top SEO consulting firms in India…

McKinley Hill Cyberpark employs 8,000

by @ News Feed

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.


PH BPO Urged to Go Beyond Voice Services

by @ News Feed

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.

SHORE Solutions impresses attendees at regional SAP conference in Singapore

by SHORE Admin @ SHORE Solutions Inc.

SHORE Solutions impressed attendees at the recent SAP Field Kick-Off Meeting (FKOM) in Singapore from January 12 to 13 at the Marina Bay Sands Expo and Convention Center. SHORE, a key SAP-SuccessFactors partner in the Philippines, was a platinum sponsor at the prestigious event. The SAP regional FKOM for Asia Pacific and Japan drew 3000 … Continue reading SHORE Solutions impresses attendees at regional SAP conference in Singapore

The post SHORE Solutions impresses attendees at regional SAP conference in Singapore appeared first on SHORE Solutions Inc..

Frost & Sullivan: Security-as-a-Service Posts 17.2% Growth in 2011

by @ News Feed

Frost & Sullivan's recent cloud computing research, A Strategic Analysis of the ANZ (Australia, New Zealand) Security as a Service Market, highlighted the rapid growth of Australia's security-as-a-service market at 17.2 percent in 2011 and is valued at $38.4 million. The growth is said to be driven by relocation of in-house software and the introduction of the cloud to small businesses. It is projected to post a 16.6 percent compound annual growth rate up until 2016, and will be valued at $83 million.

Seventy-two percent of cloud computing users in Australia make use of software-as-a-service. Australia is the top cloud consumer worldwide and the largest market in the Asia Pacific region in terms of revenues.

The notable shift to security-as-a-service was largely driven by businesses that want to identify IT expenditures as managing costs instead of investments. This enables companies to properly manage monthly budget and additional benefits like lower initial costs, proper monitoring, flexibility, and accessibility.

Another factor that had driven the shift to security-as-a-service is lack of local IT experts. The security-as-a-service model eliminates these issues by means of global labor arbitrage, relying on service providers to be more responsible in the maintenance and security of each account. Businesses are also inclined to use security-as-a-service because of its capabilities, ease of use, and security.  

The banking, financial, and insurance (BFSI) industry is the largest sector that uses security-as-a-service from the cloud.

Even if the market is growing, organizations still doubt the security and control of data by third party service providers. Potential clients are also concerned about delays. Technologically speaking, the points of network connections are farther from each end, which means it may take much longer to transfer data.


Organizers Ready for Top PH Outsourcing Event

by @ News Feed

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.


Offshoring: Strategy Mapping over Cost Reduction

by @ 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 firms continue to stay, says US envoy

by @ News Feed

US Ambassador to the Philippines Sung Kim assures that the US information technology-business process outsourcing (IT-BPO) companies based in the Philippines continue to maintain good business in the country.

This follows concerns on US President Donald Trump's plans on job policies, which can cause US outsourcing companies to defer their investments in the Philippines, as quoted from Philippine Economic Zone Authority (PEZA) Director General Charito Plaza in earlier news reports.

"We (in the Philippines) have a very young population, smart, very competent, and very hardworking. There's also a very strong cultural affinity so I think BPO will continue to do very well," said Kim, who made the statement during his first visit in Cebu recently for the general membership meeting of American Chamber of Commerce of the Philippines-Cebu Chapter held at the Cebu City Marriott Hotel.

The ambassador believes that much of the threats in the IT-BPO sector come in the form of automation, which replaces human workers, leading to job loss.

This is further affirmed by the International Labor Organization (ILO) report, which notes that majority of 89% of BPO employees are at "high risk" from robotic process automation.

Filipinos are the preferred workers for US IT-BPO firms

Kim validated that Filipinos continue to be the preferred workers for US IT-BPO firms, which currently hires 1.3 million Filipino workers.

The economic partnership between the US and the Philippines is maintained, despite setbacks in 2016.

"We want to assure you that the United States will continue to partner with the Philippines and look for ways to increase foreign investment, reduce trade barriers, and streamline business regulations," he said.

Everest: Global Outsourcing Contracts Up 6.6% in Q2

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The global outsourcing industry ended the second quarter of 2010 with a 6.6 percent increase in number of deals compared to figures posted in the same period last year, according to Everest Group. Q2 outsourcing deals also rose 12.1 percent compared to first quarter of this year. 

This increase in global outsourcing activity can be attributed primarily to BPO contracts, while IT deals only had a slight increase. �This is because BPO operations tend to be more in sync with running day-to-day business (functions such as customer support and back-office), while in the case of IT, it is more discretionary and involves project-based work where clients are still cautious,� said Mr. Amneet Singh, Vice-President, Global Sourcing. Everest added that clients arrange IT outsourcing work into smaller deals, which explains the decline in the annual contract value (ACV) of IT contracts.


Business Model Movement of Indian IT Firms

by @ News Feed

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.


Global outsourcing revenues 14.4% higher than 2008

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Canadian-based ICT research and advisory firm, XMG Global, has calculated that the global offshoring and outsourcing industry will close out the year with a total of US $373 billion; 14.4% higher than the $326 billion registered last year.

The forecast includes inshore and offshore services. In terms of offshore destinations, India, China, and the Philippines were named as top three performers with India and China expecting revenues of up to US $ 48 billion and $ 28 billion respectively.

The Philippines, third on the list, is looking at closing the year with $7.3 billion at 21.7% growth; lower than the expected 24% due to the delay in the development of IT services and captive expansion plans.

The double-digit growth of the outsourcing and offshoring industry amid economic recession is, according to XMG Global, a testament to the change in how it is viewed by the global economy:

�In an industry where double digit growth is not ordinarily seen during a global recession proves that offshoring and outsourcing is part of a natural ongoing economic revolution notwithstanding a financial crisis,� said XMG senior analyst, Vincent Altez.


Expanding Your Reach: Digital Marketing Strategies For A National Audience

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More Jobs in BPO for 2014 Graduates

by @ News Feed

According to Chona M. Mantilla, Director at the Department of Labor and Employment (DOLE), hospitality management, construction, and services and manufacturing graduates this year have more to look forward to in the business process outsourcing (BPO) sector.   

Mantilla said a lot of BPO operators are expanding, which will lead them to look for qualified workers. She added that more BPO companies have recently started operations in the country.

Mantilla noted that in their job portal, the BPO sector is the top industry in terms of employment opportunities. The portal has listed nearly 70,000 job openings, majority of which are for call center work (5,033 vacancies). Other jobs were related to service, production, and sales. There were also a lot of openings for receptionists, communications and electronics equipment technicians, and information technology specialists.

Mantilla said there are still challenges for job hunters since they would need the right skills and competencies to land the job. She then noted that the employment rate in the Philippines is at 94 percent, and is expected to increase in the coming months since new graduates will be joining the workforce.


Growth Expected for Revenue Cycle Management Outsourcing

by @ News Feed

ICD-10 and Revenue Cycle Management

A large number of organizations are seen making the necessary improvements in infrastructure in accordance with the ICD-10 code. Although the AMA initially predicted that changes needed to match the code will not be as costly as expected, it still presents several challenges to health organizations that do not have enough resources.

Some healthcare firms are said to be tapping external providers for clinical documentation improvement (CDI), revenue cycle management (RCM), and even coding consultancy. A Black Book estimate forecasts that the RCM outsourcing market will grow from $7.7 billion to $9.9 billion by the second half of 2016. However, some are still unsure whether these processes will help healthcare organizations to mitigate the changes brought on by ICD-10.

Some companies are positive when it comes to the new codes, but others are doing their best to recover from the delayed application of the ICD-10 to October 1, 2015.

In a recent survey conducted by AHIMA and eHealth Initiative, it was found that 14 percent of providers expect that they will break even during and after the switch. On the other hand, six percent anticipate their revenues to increase due to polished billing processes.

Black Book added that RCM outsourcing activities have already displayed gains in revenue. In fact, 80 percent of hospitals that outsourced RCM activities have posted six percent increase in revenues this year. This then may help in addressing the losses from the slowdown in productivity and timely billing operations.

However, 20 percent of hospitals that outsourced RCM processes are still fearful that they are more exposed to filing for closure or bankruptcy in the next four years if their RCM technology, in-house or outsourced, is not the best in the market. Ninety percent of hospitals said they opted to outsource RCM work because it is a more economical option.


Recruitment Sector Likely to Adopt IT Developments

by @ News Feed

New report claims that IT outsourcing users in the recruitment sector will soon adopt eight emerging technologies which will change the way recruitment firms operate.

Published by the Recruitment and Employment Confederation (REC), the Technology 2020 report predicts that cloud computing, developments in data management, spread of green IT, increase in demand for data security, next-generation mobile communications, use of unified communications, social media, and nano hardware are the IT innovations that will have an impact on the business practices of the recruitment sector.

"It is vital that the recruitment industry seriously reviews the far-reaching implications of the latest technological advances. Those that modify their business practices first are likely to be best placed to win more business," said Kevin Green, chief executive of the REC.


Republicans Block Passage of US Anti-outsourcing Bill

by @ 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.



PH: 2nd to India in Global Outsourcing Market

by @ News Feed

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.


NZ Firms Seen to Invest More in PH

by @ News Feed

More Investors from New Zealand Anticipated

According to Reuben Levermore, New Zealand Ambassador to the Philippines, the country’s robust business process outsourcing (BPO) industry is further improving its image as an investment destination, particularly for engineering and IT firms based in New Zealand.

Levermore noted that more and more companies from New Zealand are not only outsourcing call center work, but are actually setting up IT offices as well. Since New Zealand firms are setting up in the Philippines, they are able to grow their business while contributing to the inclusive growth of the Philippines through job creation. This, he said, is possible because New Zealand companies can provide the technology and expertise, while the Philippines offers scalability.

Meanwhile, New Zealand Trade Commissioner to the Philippines Hernando Banal said he has seen an increase in the number of IT companies that are opening offices in the Philippines. Banal said the first few firms that took interest in the Philippines are engineering and food and beverage companies. But in recent years, more and more IT companies are seen setting up their back office operations in the country. A company was said to have grown from two employees to 500 in a period of four years.

One major challenge of companies in New Zealand is finding the right local talent. This is because of its small population and a low turnout of university graduates annually.

Banal added that New Zealand firms have the in-demand product ideas and innovations, but they do not have the capacity to mass produce. For instance, one of the commonly outsourced processes to the Philippines today is product testing. It requires many testers for a short period of time and is very labor-intensive. Basically, the design and concept will come from New Zealand firms, while the labor-intensive parts such as actual production and testing will be sent out to the Philippines.


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Buyers Taking Slow Approach to Outsourcing

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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.



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.


Advisory Firm Identifies Key Challenges in Multisourcing

by @ News Feed

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.�


UK SMEs Prefer IT Freelancers to Full-time Staff

by @ News Feed

Businesses more likely to hire IT freelancers

In a research conducted by online firm, 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


The New Research Analysis Report of Facebook Based on UK and UAE that Symbolizes the Power of Video Content on the Digital Platform

by Anirban Das @ Zebra Techies Solution

Marketing and promotion on the digital platform has become a common trend among every business. Engaging customers on the online platform is a very challenging task as on the digital podium everyone is on hurry and if you want to attract the attention of people, you have to do it instantly. This is the reason…

Airline outsourcing opens in Taguig

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Rise of Airline Outsourcing Industry

A $3 billion investment was made by Indian business process outsourcing (BPO) firm, InterGlobe Enterprises Pvt. Ltd., last week in Bonifacio Global City, Taguig.

According to Business Mirror, the investment follows an expected rise in airline industry outsourcing due to hiking jet fuel prices, labor disputes, and online ticketing among others in the US. InterGlobe CEO, Vipul Doshi, said the company will make additional investments in the next 12 to 18 months to increase available seats.

“Our establishment here reflects our confidence on the airline industry that is coming out slowly from recession. The last few months are fairly good months for the United States airline business,” Doshi said.
The company will be looking to capitalize on increased sales of airplanes for both international and domestic travel and leverage lower costs on several management items including back-office operations.   


The Top 8 Essential Tips for Writing an Effective Content

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The value of content depends on its creativity. You need to research intensely for writing a unique content and hold the visitors to read it completely. Perhaps, you have invested your crucial time and money in writing content why don’t you stick to these top 8 (eight) points and get to know how to attract…

Benefits of Outsourcing: The Benefits of Globally Outsourcing

by Krista Mae Andico @ Eternus Global Outsourcing| Philippines Ecommerce Experts: Core PHP Developer Philippines, Ecommerce Development and Consulting, Ecommerce SEO and Copywriting

Benefits of Outsourcing made successful business understand that sometimes the most cost-efficient location for manufacturing a product is a foreign country. Narrowing out specific operations allows you to free up cash, time, facilities and staff to focus on the activities that your company does best.  Here are the following benefits you can achieve from outsourcing […]

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Steps to conduct market research; your roadmap to success!

by @ 4M Feed

Designing a website it not as simple and straightforward as it sounds. There are several elements that must e taken into consideration before the planning of the website even begins. Internet marketing research can make or break your website as it contributes greatly to the success of your website.

PH barely Reaches BPO Need for IT Grads

by @ 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.


Android game development

by Shey Paurillo @ SHORE Solutions Inc.

According to a U.S. research, the most widely used operating system (OS) in the world is Android since more Android devices are sold than other touchscreen mobile devices with iOS, Windows, etc. combined. The consultancy, information and insight firm Kantar reported that Android ranked as the most popular smartphone operating system in the U.S. powering … Continue reading Android game development

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ADB: BPO �not enough� to Alleviate PH Poverty

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The latest report from the Asian Development Bank states that in order for the Philippines to maximize economic growth potential, the government should look into manufacturing and not business process outsourcing (BPO).

Volume of jobs created by BPO segment not sufficient

Norio Usui, ADB’s senior country economist and author of the report “Taking the Right Road to Inclusive Growth,” said the volume of jobs created by the BPO segment is not sufficient, as it only accounts for 1 percent of the country’s entire labor force and is favourable only for college graduates.  He adds that for a more comprehensive growth in different areas of the country’s economy, the manufacturing sector should be developed more.

The study likewise highlighted that strategies and plans for the industrial sector should be reinforced, and employment opportunities should be provided for undergrads as well.

Moreover, Usui stated that among the countries in Asia, the Philippines is the only one that has a declining industrial base. In fact, the sector’s contributions to the country’s GDP dropped from 39 percent in 1980 to 32 percent in 2009.

Meanwhile, Kunio Senga, ADB’s director-general for Southeast Asia, said that even with the bullish growth posted by the services sector, issues regarding poverty and unemployment still plague the country.

The ADB believes that in order for the country to recover from poverty, more export products should be developed and the business environment should be made more attractive for investors.


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The biggest data quality challenge faced by CRM systems is duplicates. Your CRM system will always have a few duplicate records unless you have an effective data deduplication strategy in place. Here are a few reasons for this: Humans may not perform a record search, and they keep adding new contacts. Data import tools may […]

PH Allocates P500M for Training Program of BPO Workers

by @ News Feed

The Philippine government will provide P500 million to the Technical Education and Skills Development Authority (TESDA) to help fund a training program for students and teachers in state universities and colleges (SUCs) and meet the demand of the business process outsourcing (BPO) industry in terms of talent.

According to Budget Secretary Florencio B. Abad, the government is planning on tapping several industries for the training. With the P500 million budget, the program can train about 62,000 applicants who can be part of the BPO workforce. About 37,000 will definitely get jobs in the industry. A total of 150 teachers will also be hired to train the applicants. Abad said the training program is designed to better prepare the students at SUCs for the BPO demand.

Abad said they are also looking into providing training projects for other industries such as tourism, agriculture and fisheries, construction and infrastructure development, as well as semiconductors and electronics.


Flexible outsourcing makes perfect debt collection sense

by Bastiaan Mawhin @ SHORE Solutions Inc.

Did you know that debt collection is a thriving industry in Australia? In a 2014 IBISWorld industry report, the Australian debt collection industry has raked in an estimated total annual revenue of $1.2 billion, while clocking in a growth rate of 8.4% from 2009 to 2014. So, it really doesn’t come as a surprise that … Continue reading Flexible outsourcing makes perfect debt collection sense

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Prices of BPO Services to Drop 20% in 2010

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Decline in outsourcing prices

According to Gartner, a research and advisory company, the outsourcing prices will decline between five and 20 percent in 2010. This is due to the increased competition from vendors, economic downturn, budget constraints, and overall “market consciousness”.

In North America and Europe, prices for data center services would drop between five and 15 percent in 2010, while the prices for help desk services would fall between five and 10 percent.

This may be good news for those companies which intend to outsource some of their business operations, but according to Gartner, low prices of outsourced services will have an impact on the quality of service and business relations of buyers and vendors.


IAOP's Outsourcing Predictions for 2012

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The International Association of Outsourcing Professionals (IAOP) recently released its top predictions or trends in the outsourcing industry for 2012.

The outsourcing industry is set to witness several changes in technology, market, as well as in terms of recession and even the elections. It is also anticipated that the US, nearshore countries, Brazil, Russia, India, and China will benefit the most next year.

The top outsourcing trends for 2012 are as follows:

Near shoring: The key driver for large firms to source in neighbouring countries or locally is the incentive and benefits- related efforts of the government.

Performance-based contracts: The client and provider will come up with performance-based contracts that will be widely used by various partnerships all over the world. Upfront relations such as customer support will also gain popularity, instead of the usual back-office setup.

New outsourcing destinations: Brazil, Russia, India, and China or BRIC will take the spotlight in 2012.

The dawn of new technology: Since technology has opened a lot of opportunities for various sectors, there's no question that the outsourcing industry will leverage each type of technological avenue to improve business processes, collect data, and even recruit new talent.

Security of the cloud: With the proliferation of the cloud come various security issues that may make or break a company. Providers and clients will definitely have a hard time keeping up with the trend and protect customer and company documents.

More mergers and acquisitions: The number of buyouts will definitely increase as appraisals dwindle and growth slows down for various sectors.

Hiring when needed: The sector is set to experience an increase in the number of candidates who specialize in improving the company's growth strategies.


PH Economy still in an "Upswing"

by @ News Feed

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.


Growth Outlook for PH Economy Raised

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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.



How Machine Learning Is Impacting Google’s Search Engine Algorithms?

by Anirban Das @ Zebra Techies Solution

In the 21st century economy digitization is the buzzword of every business or enterprise. Each and every corporate firm is striving hard to become more digitized and make the required business transformations that help them achieve growth and increased productivity. Digitization being so integral to the business world makes it necessary for us to take…

Cebu's ITO Sector Rapidly Growing

by @ News Feed

The chairman of Cebu Educational Development Foundation of Information Technology (CEDF-IT), Francis O. Monera, said the information technology and business process outsourcing (IT-BPO) industry of Cebu is at a bullish state as it is �constantly growing� and may outdo its performance in 2011, wherein the sector posted a 20% growth rate.

Monera noted that with the growth of the industry last year, 60,000 jobs were provided at the Cebu IT Park. He added that with the developments amongst BPO companies in the region, rapid establishment of BPO offices in the IT Park, and CAGR of 20 percent, it is possible for the sector to post a higher growth rate this year.

Moreover, Monera stated that several programs for educational institutions in Cebu are being organized by the CEDF-IT. The programs are set to help produce skilled workers and improve the growth rate of the IT-BPO sector in the province.


Market Forecasts for Healthcare Workforce Management Systems

by @ News Feed

Market and research firm MarketsandMarkets recently published another report called "Healthcare Workforce Management Systems Market by Solution (Talent Management, Time & Attendance, Scheduling, Optimization Services), by Mode of Delivery (Cloud-based, Web-based), by End-User (Hospital, Long Term Care) - Global Forecast to 2019."

The study stated that the global healthcare workforce management systems market will grow at a compound annual growth rate (CAGR) of 13.8% from 2014 to 2019. By the end of 2014, the market is projected to be valued at $761.7 million and reach $1,453.8 million by 2019.

The healthcare workforce management solutions are designed and implemented by the healthcare sector to address challenges such as employee scheduling, monitoring, and supervision to ensure that top performers are retained.

The report also identified the key growth driver of the market which is finding affordable solutions that match the available workforce and their competencies.

Meanwhile, the vendors are faced with the challenge of offering solutions to implement Workforce Management Systems because maintenance and software updates are costly. Also, healthcare providers are wary of data privacy and security risks.

The Healthcare Workforce Management Systems Market report covers solutions, mode of delivery, end user, and geographies. It also highlights the key market drivers, limits, and opportunities within the market, as well as its submarkets.


Global Healthcare BPO Market Revenues to Reach $330B in 2016

by @ 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.


PH IT-BPO Industry Readies 6-year Road Map

by @ News Feed

The Information Technology and Business Process Association of the Philippines (IBPAP) is scheduled to finalize a new six-year road map that will work as a guide for the outsourcing sector, specifically on global market developments.

According to IBPAP’s President and Chief Executive Officer Jose Mari P. Mercado, challenges for the six segments of the business process outsourcing industry (contact center, health care, information technology (IT), animation, game development, and financial services) will be underpinned in the road map.

He also stated during the 7th International IT-BPM Summit at the Marriott Hotel in Pasay City that they are trying to cover more sectors in the road map and their main goal is to predict what’s in store for the sector in the next six years. They are analyzing ways on how situations in the Philippine IT-BPO industry should be addressed.

Moreover, Mercado said the Philippines has the potential to sustain the industry’s 15-18% annual growth after 2016. He added that the road map aims to recognize possible opportunities and challenges.

In a statement released by IBPAP last August 10, the outsourcing industry posted revenues of $18.9 billion last year, and is eyeing $21.2 billion this year, and $28.9 billion for 2017.

The industry body is also looking at a possible consultant by the end of October to manage the roadmap, followed by the drafting of the plan, which usually takes 12 to 18 months.

Mercado pointed out that in 2014, the industry employed 1.03 million Filipinos and the industry is “confident of hitting” the target for 2015 which is 1.2 million.

Like in the previous years, the IBPAP will also identify a new list of “next wave cities” or areas outside Metro Manila that are accelerating in terms of outsourcing investments by the end of the month.


Indian outsourcing facing difficult times

by @ 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 digital production and animation in high demand

by @ News Feed

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.


Surge of BPO Seen as ICT Milestone in Arroyo Administration

by @ 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.


BPAP lowers employment growth target

by @ 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.


Indian IT-BPO Firms Facing Major Employee Attrition

by @ News Feed

Employee retention becomes a key challenge for IT and BPO firms in India, as the industry faces large-scale employee attrition especially in key positions within the organization.

Fidelity National Financial India Country Head Sameer Dhanarajani said "the macro effect is balanced by one company losing its critical staff to another and a company getting critical resources in return." The challenge is to keep them aligned to the organization. Moreover, a new employee, regardless of his or her place in the corporate ladder, comes with hiring, training, and maintenance costs. "There has been an increased investment to retain the right talent and to keep the customer operations smooth,� Dhanarajani said.

He added that there has been an increase in demand for outsourcing as companies recover from the financial turmoil, cost of operations, and rising unemployment rates. While India remains the top location of choice, other outsourcing destinations such as the Philippines, China, and Vietnam pose a threat.


US Firms to Invest $100M, Create 10,000 BPO Jobs in the Philippines

by @ News Feed

With a total of $100 million worth of investments, six US-based companies are outsourcing non-voice business process outsourcing (BPO) work to the Philippines, generating 10,000 job opportunities for Filipino workers. According to Cristino Panlilio, managing head of the Board of Investments (BoI), these American firms are new outsourcing players, though the names remain undisclosed.

Nurses needed for clinical support services

In an earlier report, BoI said AETNA, US-based insurance company, will hire Filipino nurses to provide two kinds of services: clinical support and home care for American patients. BoI Executive Director Fe Reyes-Agoncillo said there are 250 nurses who are already providing clinical support, and the firm needs a total of 500 for that service. On the other hand, 250 nurses are needed to provide home care services for patients. This number is expected to reach 1000 in the next two years.




PH Govt Fully Supports BPO Industry's Expansion

by @ News Feed

Aquino Administration Full Support of PH BPO

President Aquino recently said in a statement during the inauguration of NetworkLabs, Nokia Siemens Network’s (NSN) research and development facility, that the government will fully support the developments in the BPO industry.

The President said that some of the things the administration is looking into are: business registration processes, efficiency of tax ruling procedures, and reduction of required documents for bidding in public works. The government also intends to draw investors by proposing tax incentives like income tax holidays for BPO-related investments, which enabled the BPO sector to gain net margins that are higher than those in India for 2010.

“We want to see more businesses opening, and to see many more skilled Filipinos being employed. More businesses open, the more opportunities our countrymen will have to show what they are capable of," said President Aquino.

NSN NetworkLabs is the first R&D facility in Southeast Asia that services and supports R&D teams globally. He added that it is an honor to be chosen as the facility’s location, because it proves that the Philippines is a leader in the BPO industry.


Outsourcing Administration Services

by e4 BPO @ e4 BPO Business Process Outsourcing Call Center

When you look back at the history of the BPO (Business Process Outsourcing) industry, administration services were one of the first things that BPO companies offered for outsourced services.  These include the areas of customer billing, virtual accounting, Virtual Secretary (VS) which was later changed to Virtual Assistant (VA) and other administration services.  So let’s [...]

Rapid Growth Expected at Medical Research Outsourcing

by @ News Feed

Medical research outsourcing industry expected to post growth

According to Frost & Sullivan’s "Analysis of the European Contract Research Outsourcing Markets" report, the medical research outsourcing industry will post significant growth as more and more European pharmaceutical and biotech firms are starting to outsource the costly process of doing research. This positioned the growth of the sector into overdrive.

In fact, the study shows that in 2011, the market posted revenues that nearly reached $6.07 billion and it further predicts that by 2018, it will reach $11.54 billion. The largest share of the contract research organizations (CROs) market in Europe is accounted for by the Phase III clinical trials account.

Frost & Sullivan explains that CROs promote innovation and improvement in chemical and biological drug development while keeping costs of new narcotics low.  Cardiovascular, oncology, autoimmune, central nervous system (CNS), infectious, endocrine, and metabolic disease areas are some of the medical divisions that the CROs are involved with.

Deepika Pramod Chopda, Research Analyst at Frost & Sullivan, said the drugs are tested for their ability to work, safety, and that these are safe for patients who belong to different ethnicities and parts of the world.

Moreover, CROs can avoid accruing high rates for research and development processes, even if done internally, as more specialized research technologies along with an exclusive focus on drug development and testing are made available.


by @ RSS Feed for

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BPO Firm Pledges to Invest More in PH

by @ News Feed

Strengthened BPO partnerships with the Philippines

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

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

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

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



by @ 4M Feed

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PH - Cyber Attack Target due to BPO Presence

by @ News Feed

Increased Cyber Threats in PH Attributed to BPO

FireEye, Inc. recently stated in a forum that the Philippines is the top target of cyber attacks in Southeast Asia, and one of the key reasons is the strong activity from business process outsourcing (BPO) companies in the country.

The organization's officials said the Philippines surpasses Singapore, Malaysia, and Thailand in having the most advanced persistent threats (APT), which are described as attacks that are programmed to breach a network's security system and harness information which will then be used for political and business gains.

From January to June, the Philippines registered an APT of 56 percent which is higher than the regional average of 49 percent.

Vivek Chudgar, Managing Director at FireEye, said the BPO sector is the key target of the attacks. Nearly 20 percent of the attacks are directed towards the services, consulting, and value-added reseller industry. The government was also a prime target, accounting for 13.5 percent of the attacks, 13 percent at the IT segment, 10.2 percent at media, entertainment, and hospitality, and 9.2 percent was geared towards telecommunication companies.

Thomas Acero, FireEye Country Manager for the Philippines, said the digital attackers are very experienced and they know their way around the field. Some of the malwares identified by FireEye are Hussarini and Page.

However, Chudgar noted that even if the BPO sector has been the primary target in the country, the Republic Act 10173 or the Data Privacy Law signed by President Aquino in August 2012 helps protect it from such security breaches. It was also stated that it is better than India's.


Outsourcing to present �full potential� in 2010

by @ News Feed

Information and communication technology research and advisory firm, XMG Global, claims in a report that “outsourcing will present its full potential once more in 2010” - with revenues for the year expected to reach $412 billion.

Outsourcing considered for efficiency and profitability

While some predict that affordability will continue to dominate as the driving factor for buyers in the outsourcing industry, XMG says that outsourcing this year will be considered as a business model aimed more towards efficiency and profitability and not simply a means to cut costs.

“In the face of global competition, governments of major outsourcing destinations will formulate new rounds of resolutions to improve business environments and promote new investment locations,” XMG said.

Among other predictions for the year in the report by XMG were India and China being the most preferred outsourcing destinations. XMG warns of a skills shortage by the second quarter and higher levels of competition for workers and customers in the telecommunications sector, Philiippine Daily Inquirer said.


Vietnam Ranked as Top Outsourcing Location, PH at 2nd Spot

by @ News Feed

The Philippines is 2nd top Outsourcing Location

At “Where in the World? Business Process Outsourcing (BPO) & Shared Service Location Index” created and published by global real estate adviser Cushman & Wakefield, it was revealed that Vietnam is now the global leader in outsourcing. Key indicators that define a worthy outsourcing destination include costs, risks, and operating conditions.

Richard Middleton, Head of EMEA and Asia Pacific occupier services at Cushman & Wakefield, said based on the pricing, Vietnam is still more economical compared to other global destinations like India and China, where wages continue to rise. However, amidst the rising cost and shrinking available skilled talent pool, India is still the leader in the global outsourcing segment by market size.

At C&W’s report last year, Vietnam was fifth place and since it has established itself as an alternate destination for affordable offshore outsourcing services, it gradually rose to take the lead. The government of Vietnam has implemented new rulings to promote its outsourcing sector.

On the other hand, the Philippines moved up one spot to second place as its BPO market continues to expand, driving the economy forward. The BPO market of the Philippines posted its highest ever earnings last year at US$15 billion. Moreover, it was reported that the country has absorbed 70 percent of India’s voice operations where it was discovered that the shift in power has affected the cost of labor in India, which also contributed to the rising rate of attrition at 26.9 percent, the highest in the world.

 Global economies are still recovering from the economic slump, and the BPO sector is propelled by English-speaking developed countries, making the Philippines a strong candidate for outsourcing since the English communicating abilities of the Filipino workforce are well received in the US - ahead of other countries.


RP Wins Offshoring Destination of the Year Award for the 3rd Time

by @ News Feed

National Outsourcing Association names Philippines Offshoring Destination of the Year

The Philippines was named Offshoring Destination of the Year by the National Outsourcing Association (NOA). This is the third time that the country won the prestigious award. The first time was in 2007 and the second was just last year. Philippine Trade Attache Mike Ignacio and Marketing Officer Vic Casim received the award in behalf of the country during the NOA 2010 Awards held last October 21 at the Park Plaza Riverbank in London.

NOA is the only outsourcing trade association in the UK, representing the end users, vendors, and companies that support outsourcing.

According to a news release from External Affairs Executive Director Martin Crisostomo of the Business Processing Association of the Philippines (BPAP), 2009 export revenues of the Philippine BPO industry reached US$7.2 billion, with workforce consisting of almost 450,000 employees. By the end of 2010, BPAP expects that revenues will reach US$9.5 billion and number of BPO employees will increase to 650,000.

Gartner: Indian IT-BPOs to Gain more Presence Overseas

by @ 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.


Healthcare Contract Research Outsourcing Market Outlook

by @ News Feed

Report on the Healthcare Contract Research Outsourcing (HCRO) Market indicated that healthcare contract research outsourcing is growing at a compound annual growth rate (CAGR) of 14.7%, and is expected to be valued US$65.03 billion by 2018.

The market is composed of four groups based on services:  clinical trial, regulatory, medical writing, and clinical data management. The top category in the global healthcare contract research outsourcing market is clinical trial outsourcing with a market value of US$14.21 billion in 2010. The services that fall under clinical trial outsourcing are preclinical services, drug discovery services, and phase I to IV trial services.

The main clients of the market are clinical trial laboratories, contract research organizations, and academic medical centers.

As for location, North America took the largest share of the market with 64.1%, while Europe and Asia took the second and third spot based on historical data. Meanwhile, the HCRO market in Asia is projected to expand rapidly due to the growing volume of contract research organizations in the region.

Growth within the HCRO market is said to be driven by the rising cost and reduced productivity of healthcare research. Other factors cited are the declining research and development activity in the field of new drug formulations and globalization of drug development. In addition to that, in-house drug research has become inefficient, prompting companies to outsource the process.

Developing countries in Asia-Pacific are being considered as candidates to becoming the healthcare contract research outsourcing destination as services are inexpensive and development of technological foundation for drug research is ongoing. Processes that are currently being outsourced are regulatory services, clinical data management, and medical writing.


Report Predicts Rise in Global Outsourcing Contracts in 2010

by @ 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.


PH Creative Content Industry to become Top Dollar-earner

by @ News Feed

Creative Content Creation could bring in $25 B in Earnings

In the next five years, the Philippine business process outsourcing (BPO) industry, particularly the creative content sector, is expected to exceed the remittances from overseas Filipino workers, making the former the country’s top dollar-earner.

Commission on Information and Communications Technology (CICT) Secretary Ivan John Uy said the remittances from OFWs will hit $17 billion, while the creative content sector’s revenues will likely reach $9 billion this year. However, if the government gives support to the animation sector, revenues can reach $25 billion by 2016. "Creative content will be the driver of economic growth in our interconnected world. It accounts for majority of IT use from gaming to social networking and has the highest value added," Uy added.

According to Animation Council of the Philippines, Inc. Managing Director Grace Dimaranan, the Philippine animation industry currently consists of 100 firms and employs about 10,000 artists-animators, background artists, graphic artists, and digital painters.




SearchCap: Google EU appeal, goodbye fetch as Google for apps & award list

by Barry Schwartz @ SearchCap: Daily Search Engine News Recap

Below is what happened in search today, as reported on and from other places across the web.

The post SearchCap: Google EU appeal, goodbye fetch as Google for apps & award list appeared first on Search Engine Land.

Pampanga Cities to Become IT -BPO Hubs

by @ News Feed

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.


Outsourcing SEO Work

by Julie Garcia @ SEO Girl Powa

Advertising is an integral part of any business and it is one of the biggest investments that the business makes. So the business owners try to look [...]

PH BPO to Produce more Jobs in 2014

by @ News Feed

In a statement, Pasig City Representative and renowned supporter of the Philippine business process outsourcing (BPO) industry Roman Romulo said the local outsourcing sector will produce an average of 124,000 jobs from 2014 to 2016. Data was drawn from sectoral projections where it is also anticipated that in three years' time, the BPO industry will yield a total of 372,000 jobs.

Rep. Romulo, who is likewise chairman of the House Committee on Higher and Technical Education, added that these jobs will alleviate unemployment challenges particularly for college-educated Filipinos and they believe that larger BPOs will deliver in terms of developing new jobs as they acquire new deals.  

He cited two of the largest BPO operators in the Philippines - Accenture Inc. and Convergys Philippines Services Corp. Both are employing over 35,000 Filipinos in the country.  Furthermore, he gave details on the five largest BPO firms in the country based on their corresponding revenues in 2012. Accenture takes the lead with P28.104 billion. Convergys posted P17.281 billion, JP Morgan Chase Bank N.A-Philippine Global Service Center with P10.805 billion, 24/7 Customer Philippines Inc. earned P7.711 billion; and Telephilippines Inc. with P7.241 billion.

Meanwhile, a Pulse Asia Research Inc. report identified job creation as one of the top five crucial issues that must be resolved in the Philippines. The other four are controlling inflation, improving wage rates, corruption, and reducing poverty.


Most Multinational Firms Outsource IT, Study Shows

by @ 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."


Top 7 Popular Tools That Every Web Designers Must be Use

by admin @ EZ Rankings

The tools for web design change now and then and they do not remain constant. This is because with advancement in technology there is a new standard that evolves. Every month you have bundles of new stuff to try out which makes the designer life of yours less challenging and a tad better. The mock-ups that are static are increasingly becoming less useful, and lines between the developer and designer are becoming more and more blurry. As the work on the internet involves collaborations with one another, the tools for work keep changing too. Here are seven most popular tools that must be used by designers. 1. Pattern Lab Pattern lab is one of the most beautiful tools for Web […]

Proposed Tax Break for OT, Night Shift Workers Gains more Support

by @ News Feed

Employees in Cebu and business process outsourcing (BPO) firms in the Philippines have joined forces in supporting the proposed House Bills 2836 and 4682. These are expected to enforce new rulings on tax exemption for employees who are assigned to work overtime and on graveyard shifts.

Three major organizations said they fully support the suggested bills: the Inter Call Center Association of Workers- Cebu (ICCAW), the Cebu Educational Development Foundation for Information Technology (CEDF-IT), and Qualfon Philippines, Inc.

House Deputy Majority Leader and Makati City Rep. Mar-Len Abigail Binay authored the bills which are intended to all overtime and graveyard shift wages which would be specifically let off from the gross taxable income of all employees, irrespective of their hourly pay rate.

According to Sylvio Dorig, ICCAW Vice-president for External Affairs, the BPO sector will greatly benefit from the bills. He is thankful that these types of concerns are now being discussed in Congress together with the pending Magna Carta for Call Center Workers proposed by Sen. Miriam Defensor-Santiago.

Dorig also suggested that call center workers with salaries below P25,000 should be given a tax break for two months.


A New “Fred” Ranking Algorithm Update By Google Is Rolling Out That Shakes the SEO World

by Anirban Das @ Zebra Techies Solution

The digital marketing platform is the most competitive places, where one can only sustain if can cope up with the everyday changing trends and updates introduced by major search engines. The updates from Google major search engines help the online marketers to match up with the current trends and effectively market on the online medium.…

Choosing when to use a web design company

by @ 4M Feed

Is your in-house design team competent enough? What if you had a chance to get your website developed via an external web design company? It is very important to know when to rely on outsourcing and when to get the job done in-house.

Healthcare Outsourcing Segment Aims to Employ 100,000 by 2016

by @ 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.


How can we track the yahoo organic keywords in GA?

by urbansoft @

Hi all, We have successfully track the Google organic search keywords in Goggle analytic. How can we track the Yahoo and Bing organic search keywords list in Google analytic?. Expert, Kindly share the solution!!!

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EZ Rankings is leading digital marketing company in Delhi that offer services like Web Design, Development, SEO, PPC and ORM.

PH BPO Urges Solons to Pass Cybercrime Bill

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Industry body Business Processing Association of the Philippines (BPAP) is eagerly waiting for the decision of the House of Representatives regarding the proposed Cybercrime bill, since a version was already approved by the Senate.  

BPAP's legislative committee head Martin Crisostomo said having a House version of the bill is now being worked on by solons, led by House ICT Committee Chair Cong. Freddie Tinga.

Crisostomo believes that the bill will be approved straightaway as the President and lawmakers see the need to modernize the constitution to stay competent and protect the industry and citizens from misconduct.   

BPAP Chairman Alfredo Ayala said the security of the business process outsourcing (BPO) industry, which is built on IT and the Internet, will be driven further as most operations and transactions are with global clients.

Meanwhile, BPAP CEO Benedict Hernandez noted that the bill will help the industry reach its 2016 goals particularly the employment opportunities to more than four million Filipinos (1.3 million direct jobs and over 2.7 million indirect jobs) and revenue target of $25 billion. He also said it will change the perception of investors on the country's business environment.

Angara anticipates a speedy passage of the bill but believes that there are still more areas of the legislation that should be worked on. He said participants of the process should be committed for the benefit of the industry and the Filipino people.


PH Set to Beat India this Year as World's Call Center Capital

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Research firm Everest and the Business Processing Association of the Philippines (BPAP) said the Philippines will likely overtake India as the world's capital for voice-based work.

This year, the Philippine BPO industry will post voice-based revenues that will reach almost $5.70 billion. This is higher compared to India's $5.58 billion. Also, companies like Cisco, HSBC, and BT PLC outsource voice-based work to the Philippines and establish an alternate support hub to avoid the impact of high staff turnover rate in India. �In standalone voice business, the Philippines will undoubtedly beat India this year to become the call centre capital of the world,� said Nikhil Rajpal, partner, Everest Research India.

Firms choose the Philippines for their call center work because of the country's better cultural compatibility with the US, higher tax incentives, and the absence of competing industries for skilled workers.

Experts added that if this pace continues, the country can beat India's BPO industry worth $12.4 billion in five years.


Majestic Warrior Launches Water Damage Online Marketing Specialization

by Majestic Warrior @ Majestic Warrior: Digital Marketing Agency in Phoenix – Online Advertising Company

Majestic Warrior is pleased to announce our specialty and another core focus on water damage restoration online marketing. We have helped many water damage companies with lead generation, SEO, local SEO and social media marketing. Our team is experienced in building optimized and responsive water damage websites that are designed […]

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.


EMEA Outsourcing Market Posts 15% Growth

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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.


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).


Cebu BPO Fuels Office Real Estate Market

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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.


Emerging Players Pose Threat to PH Voice BPO

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According to some industry experts, there's a possibility for emerging business process outsourcing (BPO) destinations to surpass the Philippines in the voice segment due to complacency.         
At the Annual Noda Contact Center Forum held in Makati, Richard Mills, founder and Chairman of Chalre Associates Executive Search, who is also the chairman of Asia CEO Forum, said the Philippines is still leading the voice BPO segment and is a key player for back office processes. He also noted that the country, which had worked its way up in a tight-knit industry, is currently in a very favorable position. However, the executive cautioned that as the global outsourcing industry is evolving, the Philippines should plan to safeguard its status from emerging outsourcing destinations, similar to what happened to India.

One of the countries which Mills said could overtake the Philippines is Africa because of its huge population, proximity to North America, and similar time zone with Europe. Moreover, Mills said since the outsourcing industry is highly dependent on stable network and connectivity, new developments in Nigeria's telecommunications line, and improvements being made in Zimbabwe, are anticipated to catch the attention of BPO locators. Also, they are a lot less expensive.

Meanwhile, Time Magazine named a new group of rising economies - PINE, which stands for the Philippines, Indonesia, Nigeria, and Ethiopia.

On the other hand, CBRE Philippines Vice-chairman Joey M. Radovan said the new contender does not even come close to the Philippines since Manila and Cebu are consistently ranked in the top 10.

Industry leaders said in order for the Philippines to retain its top position in the call center segment, service providers need to raise the bar in developing the skills of agents, adapt to the changes, innovate, and optimize operational efficiency.


Outsourcing Professionals Get Good Pay, Compensations

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In the Outsourcing Professionals Salary Survey conducted by the International Association of Outsourcing Professionals (IAOP), 95% of the participating companies indicated that their outsourcing professionals in high-level positions get good salaries and their compensations can reach six figures. The said report shows that the annual compensation for employees who hold senior-level positions starts at $51,000.

According to IAOP Chairman Michael Corbett, outsourcing professionals are well compensated since their work involves �setting strategic direction and overseeing some of the most important aspects of their company's operations.�

IAOP's Advocacy & Outreach Committee, in association with the Human Capital Institute, conducted the survey to look at the number of outsourcing professionals, compensation levels, incentive plans, and job opportunities.

The IAOP is the global, standard-setting organization and advocate for the outsourcing profession.


Leveraging Social Media for Small Businesses

by jon @ Outsource Force

Digital marketing is without a doubt the way to go for almost all business in today’s generation. And there’s a very good reason for that. For one, almost all businesses are increasing their use of the World Wide Web and social media platforms as they find these very effective in reaching out and connecting with […]

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RP BPO Sector Poses Concern over May 10 Elections

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Ninety-three percent of survey respondents said the national and local elections which will be held on May 10 will have an impact on how investors perceive the Philippines as well as its BPO sector. About 49 percent said the effect would be �very significant�. Conducted by TeamAsia, the online survey was commissioned by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P).

Survey findings also showed that the BPO sector is worried about the country's tight labor market, with 34 percent of survey respondents saying that this is their primary concern.

�People issues are still a top concern. In the short term, it is important that the elections take place in a transparent and credible fashion to improve investor perception,� said BPAP CEO Oscar Sa�ez.


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

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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.


Community Moderation: How to Protect Your Brand in Online Communities

by 365outsource_admin @

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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Managed SEO Services: Why You Should Outsource SEO.

by Galileo @ outsource search engine optimization – Galileo Tech Media

The world of SEO is changing fast and anyone who thinks they can use yesterday’s tactics is in for a surprise. Today’s SEO landscape is revealing new best practices every time we read our morning news, it seems, which makes sense given that fact that John Mueller from Google admits that the search engine

The post Managed SEO Services: Why You Should Outsource SEO. appeared first on Galileo Tech Media.

PH Economy, Property Sector to Earn More with BPO Revenues

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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.


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.


PH Business Magnate to Invest in BPO

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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.


5 Vital Tools for Online Reputation Management

by Asif Khan @ EZ Rankings

An online reputation is everything in today’s world of internet business for maintaining and gaining customers. Maintaining your clientele is like a foundation that continually needs to be built so that people can trust the brand. Hence it is one of the practices that involve monitoring online activities minutely. This may lead to the development of business status in people’s eyes. When an online reputation management is done, it always helps in restoring and creating an image that one wants for the firm. One only has to make sure the tools used are right and the strategies correct. Here are some of the vital platforms one can try out. Brandwatch If one is looking forward to gaining reputation from the […]

Global TPI Index Shows Companies Moving to Multi-Sourcing

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A decade of data on the outsourcing industry shows that companies are moving towards smaller contracts and multi-sourcing deals, according to research released today by sourcing data and advisory firm TPI.

Increased reliance on multiple outsourcing service providers

According to the 4Q10 Global TPI Index, the number of large companies relying on multiple outsourcing service providers increased from 30 percent in 2000 to 53 percent last year. Data shows that almost half of these companies relied on more than three service providers, and not a single one returned to single-sourcing.

“As they have grown disillusioned with single-source arrangements, global organizations are increasingly opting to employ multi-sourcing strategies,” said John Keppel, Partner and President-Information Services & Chief Marketing Officer, TPI. “By using multiple providers, they can customize their sourcing solutions and leverage the skills of the best in each market. We expect the preference of companies to multi-source will continue to grow as it allows them to tap the best talent possible for their needs.”

The index, which is on its 33rd quarterly release, covers commercial outsourcing deals that are worth more than $25 million. For 2010, data shows that total contract value (TCV) worldwide amounted to $79 billion – a decrease of 11 percent from the previous year.

Information technology outsourcing (ITO) continued to drive the outsourcing market, despite a decline of 4 percent from last year. Business process outsourcing (BPO) fell by 31 percent, while human resources outsourcing fared better, recording its best TCV in three years.

“Looking forward to the first quarter of 2011, as we consider mixed signals from financial analysts, service providers and industry pipelines, we do not anticipate a significant uptick in the market,” Keppel said.


RP BPO posts $7.2B in revenues

by @ 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. 


More Jobs in BPO Expected as Peso Weakens

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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.



Gartner Study Shows 7.8% Growth for Global ITO

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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.


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 Protecting Individual Personal Data in Information and Communications Systems in the Government and the Private Sector, Providing Penalties in Violation Thereof”, will cover the governance and management of private individual data collected by the government and private companies such as banking institutions and credit card facilities. The bill states that personal data should only be collected for legitimate reasons, and these must be determined first before any collection is undertaken. The government and the private sector will have to erase the collected personal data after processing.

The bill mandates that data controllers and processors must employ measures in safeguarding personal data against accidental or illegal misuse, destruction, disclosure, alteration, or even illegal processing. Also, the bill makes it illegal to share personal data with third parties. Companies that fail to safeguard personal data will be fined by as much as PHP5 million (USD 115,000), the bill states.

“The approval of the Data Privacy Act on second reading sends the right signals not only to existing foreign locators in the business process outsourcing industry but also to the many global players which are just deciding whether to invest in our country and participate in the IT-BPO space,” commented Martin Crisostomo, executive director for external affairs of the Business Processing Association of the Philippines (BPAP).

The bill was filed by Representative Roman Romulo in July of last year. A counterpart bill in the Philippine Senate was filed during the same time.


Many Companies in Europe don't Know Outsourcing Value

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Many companies have little understanding of outsourcing value

A survey among 250 Chief Information Officers (CIOs) and Chief Financial Officers (CFOs) of Europe's largest companies reveals that many businesses have little understanding on the value of outsourcing and its impact on their companies. This was commissioned by Cognizant, a leading global IT and BPO services provider, and developed by Warwick Business School.

Less than half (43%) of CIOs and CFOs who participated in the survey have attempted to measure the return on investment of outsourcing to their companies. Thirty-seven percent (37%) did not try to measure the value of outsourcing, while 20% do not know if they have tried to determine the ROI or not.

According to Sanjiv Gossain, Vice President and Managing Director, UK and Ireland, of Cognizant, "Outsourcing has clear, long- and short-term benefits for businesses, but the research shows that many companies could be missing out by failing to adequately measure outsourcing's impact."


The lucrative iOS game development market

by Shey Paurillo @ SHORE Solutions Inc.

iOS game development has proved to be a highly profitable enterprise for both Apple and the game app developers. Apple said in a news report that its New Year day sales this year was the biggest ever single day sales in the history of the App Store. And this bonanza continued that first week of … Continue reading The lucrative iOS game development market

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DOLE Delighted Over Disapproval of the US Anti-outsourcing Bill

by @ 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.


Outsourcing Activity Drops in the EMEA Region

by @ News Feed

Decline in BPO activity

According to the EMEA (Europe, the Middle East, and Africa) TPI Index released by the Information Services Group (ISG), the volume of outsourcing deals has declined 29 percent over the years. ISG added that the total contract value dropped 21 percent during 2011’s Q2 up to present. For this year alone, outsourcing deals dropped 11 percent during Q2.

Two outsourcing segments were identified at ComputerworldUK as to have noticeably dropped in total contract value. IT outsourcing (ITO) posted a 26 percent decline and dropped to €9.1 billion. On the other hand, business process outsourcing (BPO) fell to €5.1 billion, a 27 percent decline.

Duncan Aitchison, EMEA Partner at ISG, said the situation is driven by the lack of mega-deal activity and fewer contract deals in general - even small ones. He added that there is still a possibility for the UK to recover as he sees that companies based in the region will turn to multi-sourcing to resolve outsourcing issues.

Meanwhile, the UK region was hit hard by the unstable economy in the eurozone with outsourcing deals dropping 16 percent year-on-year. KPGM Institute noted that those who are planning to outsource have in fact dropped 25 percent from 2010. Moreover, 12 percent were not happy with their service provider, while 46 percent remain unsure.


Philippines Seen as 4th Fastest-growing Economy in 2015

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Domestic economic growth posted a record high of 7.2 percent in 2013, followed by 6.1 percent last year. Projected growth this year is 6.7 percent. Despite it being short of the government target of 6.5-7.5 percent, data from CNN Money showed that it could be the fifth fastest in the world.

The projected growth for the Philippines is behind China’s 6.8 percent, Qatar’s 7.1 percent, and India’s 7.5 percent, but is higher than the 6.3 percent of Bangladesh, Vietnam’s six percent, and Indonesia’s 5.2 percent.

The research also projected that Malaysia will take the 8th spot and Nigeria will be on the 10th spot in terms of fastest GDP rates with 4.8 percent, and Angola is set to complete the top 10 list with 4.5 percent.

However, due to poor public spending, growth slowed down to 5.2 percent during this year’s first quarter from the 5.6 percent during the same period in 2014. Even with a slow first quarter, the government is still eyeing growth to reach 7-8 percent by the end of this year, anchored on robust household consumption and services sector.

Last year, China posted the fastest growth with 7.4 percent, followed by India at 7.2 percent, Nigeria at third with 6.3 percent, and Bangladesh at fourth with 6.1 percent.


Hollywood outsourcing expands in Cebu

by @ News Feed

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.


The Philippines remains a top destination for IT outsourcing and BPO firms

by Shey Paurillo @ SHORE Solutions Inc.

The value chain for back-office service has dramatically evolved over the past two decades, with advances in technology and communications infrastructure allowing companies access to a pool of global talent and huge cost savings. In like manner, many developing countries have been given a leg up in the global economy, all thanks to offshore outsourcing. … Continue reading The Philippines remains a top destination for IT outsourcing and BPO firms

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BPO Firms Urged to Set Up Operations outside Cities

by @ News Feed

During the recent ICT-BPM (Business Process Management) conference, Accenture's Impact Sourcing Lead Guia Bengzon urged other BPO firms to consider "impact sourcing" which is a form of outsourcing that can help promote inclusive growth in the Philippines.  

Impact sourcing is a strategy that paves the way for opportunities to reach areas that are low in employment but have an abundant supply of talent and IT infrastructure.  

With the help of smaller organizations, Accenture was able to implement impact sourcing in South Africa and then India.

In the Philippines, the company has teamed up with Visaya Knowledge Process Outsourcing Corporation in Makati to apply impact sourcing in Tanjay City, Negros Oriental.
According to Bengzon, their partnership with Visaya KPO has produced 41 workers in Tanjay. They are handling call center work and marketing jobs, as well as writing and editing. Visaya KPO is currently the largest BPO operator in Tanjay.

For training, Bengzon said they are collaborating with local schools to serve as delivery centers for outsourcing work and other professional services.

The official also noted that recruitment is not an issue in Tanjay, even pointing out that BPO employees who moved to Metro Manila for employment are seen moving back to their home where similar opportunities are being offered. She further explained that 4-10 other people in the community are able to benefit with every job they provide. This, she said, enables the national agenda of bringing the economies of scale down to where these are needed the most.

In Tanjay, the average annual income of employees who participated in impact outsourcing has increased by 33 percent to P186,000. Moreover, the spending habits and purchasing power of workers are seen to have improved.


Metro Manila's BPO Sector Outpaces India

by @ News Feed

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.


PH to Weather Effects of Potential US Interest Rate Hike

by @ News Feed

The Philippines is Seen to Withstand Effects of US Rate Hike

According to the Bank of the Philippine Islands (BPI), the Philippines could withstand potential challenges posed by the possible interest rate hike by the US Federal Reserve in December or January next year.

The bank’s Chief Executive Officer, Cezar Consing, said the US interest rate hike is not a threat due to the fact that the country is positioned well in the external sector, and the Bangko Sentral ng Pilipinas (BSP) has become more flexible.

Analysts anticipate the US Federal Reserve to announce the rate hike in December or January, which has been delayed several times.

The bank executive also released a statement regarding his views on the country’s own interest rates next year, saying everything will depend on what the BSP decides on since they have more flexibility than other central banks.

The central banks, and even economic managers, have more flexibility to select their spots since the local government is experiencing very low leverage ratios. However, cash inflows from remittances, business process outsourcing, and low inflation give the Philippines more flexibility compared to other countries.


Outsourcing posts highest growth in six quarters

by @ News Feed

According to Sourcing Focus, recently released data from TPI and Information Services Group indicates that the fourth quarter of 2009 was the best performance the global outsourcing market has had in six quarters.

Data from the 4Q09 Global TPI Index showed the outsourcing market's total contract value is $24.7 billion � a 47% increase successively and 8% year-over-year. This is calculated based on commercial outsourcing contracts worth over $25 million.

�As we anticipated, 2009 marked a low point in outsourcing because of the recession in the general economy,� whilst �the global market bottomed in the first half of the year it now shows signs of recovering slowly and steadily, with the outlook for building on its second-half momentum positive,� commented TPI Global Operations president, Mark Mayo.

IT outsourcing was pegged as the main sector driving outsourcing growth - with Europe, the Middle East, and Africa its key players.

How to Know if You’ve Been Hit by Penguin

by jon @ Outsource Force

The world of webmasters is abuzz with chaos and confusion on the most recent effects of Google’s Penguin 2.0 update. While there is an upward trend on sites that are likely to be hit, some webmasters are not quite sure if they have indeed been hit by the sweeping Penguin update, which had only one […]

The post How to Know if You’ve Been Hit by Penguin appeared first on Outsource Force.

PH's BPO 2012 Job Target Achieved

by @ News Feed

TheInformation Technology and Business Process Association of the Philippines (IBPAP) recently stated that the local business process outsourcing (BPO) industry was able to achieve the jobs target for 2012 -even surpassing the projection of 772,000 jobs produced with 776,794, which is 21 percent higher than the predicted figures.

Of the total jobs produced by the BPO sector, almost two-thirds were from the call center segment.

According to IBPAP President and Chief Executive Jose Mari P. Mercado, the industry is right on target and is well on its way in reaching the 2016 employment goal which is 1.3 million.

Moreover, IBPAP said revenues last year, which amounted to $13.2 billion, marginally surpassed the $13 billion target. The revenue target for 2016 is $25 billion.

Mercado noted that in order for the sector to sustain its growth, it is crucial to have a strong partnership between the BPO industry and the local government. The Aquino administration is active in showing its unceasing support by coming up with programs and laws that are designed to help the industry.


SearchCap: Google iOS app trends, difficult clients & content SEO

by Barry Schwartz @ SearchCap: Daily Search Engine News Recap

Below is what happened in search today, as reported on and from other places across the web.

The post SearchCap: Google iOS app trends, difficult clients & content SEO appeared first on Search Engine Land.

Eastwood City Cyberpark Remains No.1 IT Park in the Philippines

by @ 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.




Is SEO Outsourcing the Right Choice for Your Small Business?

by 365outsource_admin @

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

Gartner Predicts Some BPO Vendors Won't Make it in 2012

by @ News Feed

A quarter of service providers today may no longer exist come 2012, according to a recent Gartner research.

Robert Brown, VP for research, said that the current economic crisis, loss-making contracts, and failure to adapt to standardized delivery models are factors that will affect service providers in their efforts to keep the business going. "Some will be acquired and some will exit the market completely to be replaced by dynamic new partners delivering BPO as automated, utility services."

Gartner noted that BPO buyers must take caution before venturing into any new outsourcing contract, and should be aware of these signs: unprofitable outsourcing deals, inability to get new projects, loss of major contracts, inability to get enough capital to bid on new BPO deals, exposure to banking sector, and increasing levels of contract cancellation.


12% Increase in IT Spend Predicted for Indian Insurers

by @ News Feed

Indian Insurers to Spend 12% more on IT Services

According to Gartner Inc., insurance companies in India will be spending 12 percent more this year compared to 2013. The 121 billion rupees in 2014 will be spread across several IT segments in the insurance industry. These include internal IT (including personnel), hardware, software, external IT services, and telecommunications.

The software segment will be driven by insurance-specific software, making it the fastest external segment. It will also post figures of 12 billion rupees - 18 percent growth this year. IT services, on the other hand, will experience 16-percent growth, the largest segment at 40 billion rupees.

The top groups in the industry are business process outsourcing (BPO) with 25 percent, as well as consulting for insurance-specific application investments at 21 percent.

Gartner’s Principal Analyst Derry Finkeldey said Indian insurance companies are now focusing more on core insurance processes that can help them increase their presence in the market. The insurers turn to the vast volume of local technology providers in India for guidance and supply.


RP BPO targets $4 trillion Spanish-speaking market

by @ News Feed

A memorandum of understanding was recently signed between the Department of Education and Spain's Ministry of Education, Cervantes Institute and the Spanish Agency for International Cooperation and Development (AECID), PIA Daily reported. For the nation's business process outsourcing (BPO) industry, the signing signifies a step towards catering to around 21 Spanish-speaking countries with economic activities worth $4 trillion.

"Aside from its direct link to our cultural heritage, learning Spanish in the 21st century can be a very potent tool for the Filipinos to compete in the global job market," commented Education Secretary Jesli A. Lapus.

The implementation of the agreement in local schools will occur in two different phases: school years 2009-2010 and 2013-2014. The pilot phase began in June last year and has already reintroduced the language in 15 secondary schools � involving 35 teachers and affecting over 1,000 students.

The agreement could possibly open up a large new revenue stream for the contact center outsourcing industry in the Philippines, which employed 280,000 people last year and grew 22% to $5 billion.


The State of Search in Travel

by Galileo @ Galileo Tech Media

Hotel brands looking to increase their profit margin and retain customers should focus on SEO to boost direct bookings. Top hotel brands are currently turning attention to search to ensure direct bookings instead of bookings through OTAs (online travel agencies). By targeting the customer directly with a strategic campaign, rather than relying on OTAs

The post The State of Search in Travel appeared first on Galileo Tech Media.

Outsourcing Transforms PH Cities

by @ News Feed

Business Hubs Perfect for Outsourcing Providers in the Philippines

Recent information shows that Megaworld, one of the Philippines’ frontrunners in the property development segment, is eyeing to construct 10 "townships" valued at $5 billion within the country. These townships will be fashioned based specifically on the needs of business process outsourcing (BPO) companies. This proves that outsourcing is an integral factor in the evolution of the country’s major cities.

Bloomberg anticipates that these townships will yield about 16 million square feet of office space over the decade. However, the office spaces will only be the focal point of a much larger plan which includes residential and commercial properties.

It’s actually a concrete plan wherein travelling to and from the office will be much easier for BPO workers, especially the ones clocking in for the graveyard shift, if they live within the township. It would also be more convenient if the operating hours of shops are similar to the schedule of the workers.

The design of the townships of Megaworld will also be based on its prominent development called Eastwood. The business and residential hub boasts of 40 acres and is only eight miles from the center of Manila.

Megaworld is also planning to develop townships outside Manila. These hubs will be located in Iloilo, Davao, and Lapu-Lapu in Cebu, all of which are in southern and central Philippines.


Slower Growth Seen in Indian IT Industry

by @ 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.


PH Considered as Most Resilient Emerging Market

by @ News Feed

A research report called “Emerging Market Macroeconomic Resilience to External Shocks: Today versus Pre-Global Crisis” was released by Investor Relations Office Economist Liliana Rojas-Suarez last April 2, and results show that the Philippines is found to be the most resilient emerging market.

The study ranked 21 countries based on the ability to withstand external shocks such as recession that would likely be caused by prolonged low inflation environment in Europe, and pending monetary policy normalization in the US. She said the environment of an emerging market before an adverse external shock hits is crucial in defining its resilience. The data she gathered from the study were compared to the figures and indicators in 2007 - the period before the global economic meltdown. The former data measured against the metrics indicated in the paper revealed that the Philippines is the leader in the ranking.

Rojas-Suarez designed seven “resilience indicators” for assessing the countries. These are current account balance as a ratio of gross domestic product (GDP), percentage of external debt to GDP, percentage of short-term external debt to gross international reserves, ratio of general government fiscal balance to GDP, ratio of government debt to GDP, inflation, and domestic liquidity.

Rojas-Suarez then pointed out that the country’s reduced external debt ratio fell to 20 percent last year, from nearly 40 percent in 2007. The country also did well in the reduced government debt-to-GDP ratio. The country likewise posted the remarkable figures for much-improved performance in inflation last year compared to 2007.

She said a country is considered highly resilient to adverse external shocks if its credit standing remains strong and growth doesn’t slow down amidst rising instabilities in the financial sector.



DTI Targets $10B in Foreign Investments

by @ 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.


Local SEO Strategy: 4 Tips for Hotels

by Galileo @ Galileo Tech Media

Having a strong general SEO plan is imperative if you’re a hotel brand. Adding a well-thought-out local SEO strategy to a marketing plan is essential too, to boost bookings and stand out from the sea of hotels in any given city. How do you optimize for local search and take advantage of the tools

The post Local SEO Strategy: 4 Tips for Hotels appeared first on Galileo Tech Media.

Forrester: Security Outsourcing may be Newest Trend in 2010

by @ 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.


Forum moderation

by Shey Paurillo @ SHORE Solutions Inc.

The Internet forum or message board has become a popular channel for contributors–also known as members—to express or share ideas and sentiments. There are countless topics and subtopics in online forums, and these also serve a wide variety of objectives. In some cases, the forum conversations, called “threads”, may become hostile, dangerous or even lewd. Hence, … Continue reading Forum moderation

The post Forum moderation appeared first on SHORE Solutions Inc..

Are BPO Companies in the Philippines Here to Stay?

by OP.Admin @ Outsource Philippines

Years have passed since the Philippines had its first business process outsourcing (BPO) firm. Back then, the industry was only limited to a handful of ... Read More

The post Are BPO Companies in the Philippines Here to Stay? appeared first on Outsource Philippines.

SEO Outsourcing 101 |

SEO Outsourcing 101 |

The process of search engine optimization is a complicated and expensive one. It is not hard to find people over the internet that are willing to provide SEO outsourcing for different clients, but there are only a few people today who have mastered the art of search engine optimization and are leaders in the field.

PH IT-BPO Exceeds 2012 Revenue Goal

by @ News Feed

IT-BPO Industry of the Philippines Surpasses Targets

The Information Technology and Business Process Association of the Philippines (IBPAP) recently noted that even with the lingering issues such as the strong peso and scarcity of skilled workforce, the information technology-business process outsourcing (IT-BPO) sector continued to grow - even exceeding its targeted revenues.  Based on initial data, IT-BPO firms in the Philippines posted $13.4 billion in revenues last year, which is marginally higher than the actual target. It is also 22 percent higher than 2011’s $11 billion revenue goal.

Jose Mari P. Mercado, the new president and CEO of IBPAP, expects that by next year, jobs in the IT-BPO segment will reach 1 million during the first quarter. During the last few weeks of 2012, the IT-BPO sector created 720,000 jobs.

The call center and healthcare outsourcing segments have also surpassed their revenue targets.

The IBPAP Executive noted that with the rapid growth of the sector, they are sticking to the Road Map where they’ve indicated targets of $25 billion worth of revenues and 1.3 million jobs by 2016 and $16 billion in revenues and 920,000 jobs for this year.


BPOs, Remittances Fuel PH Property Industry

by @ 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”.


Return On Investment With Digital Marketing

by Shawn Denney @

As a business, we exist to fulfill a need. It is what allows us to stay in business, to grow, and to find new innovations. Sometimes you are the premier provider of the solution, while other times you are one…

The post Return On Investment With Digital Marketing appeared first on .

Asian ITO spending trend to be reversed

by @ News Feed

Experts predict that Asia's spending on information technology outsourcing will grow faster than their western counterparts this year, Financial Times reports. Dell Services chairman, Jim Champy sees this as a reversed trend in outsourcing spending from the recent trend of western groups buying services from Asian outsourcing locations such as India and China.

"We see, as most providers do, the Asian markets growing faster - clearly more than Europe, and certainly faster than the US," stated Champy. "What it would feel like to me is two to three times faster, percentage-wise."

A report by KPMG and Asian-Oceanian Computing Industry Organization projected a significant increase in Asia's share of global IT services spending � an estimated 26.3% compared to the current 20% in global IT and business process outsourcing services consumption.

The trend represents a complete reversal of the trend of Asian IT companies sending executives to developed markets to purchase business from western outsourcing consultancies.


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…

The post What Is Social Media Advertising? appeared first on .

IT Outsourcing Market Projected to Reach $288B this Year

by @ News Feed

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.


PH Real Estate to Remain Strong with BPO Demand

by @ News Feed

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

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

BPO sector expected to post $25B in revenues

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

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


Study Shows Progression of Business Services Worldwide

by @ News Feed

According to a recent study from PwC US and HfS Research, �The Evolution of Global Business Services: Enhancing the Benefits of Shared Services and Outsourcing�, 97 percent of the 347 respondents specified that they participate in outsourcing relationships, while nine out of ten use shared services.

The report also stated that 44 percent of establishments are planning to lessen reliance on in-house delivery processes by looking for other options like outsourcing (73 percent) and shared services (59 percent).

Dr. Charles Aird, US and Global Leader of PwC's Shared Services and Outsourcing Advisory Practice, said "Organizations need to focus on aligning corporate strategy, improving investment portfolio decisions and reallocating current spending. To do so, they are adopting global business service models."

Some of the crucial factors highlighted in the study are:

*Corporate, global, and enterprise strategies should coincide with each other.

*Strategies should be flexible enough to adapt to the trends and changes in the industry.
*Invest wisely and contemplate whether you need to focus on in-house innovation or innovation from service providers.

*Find a system that works well for urgent situations and problems.

* Create long-term goals.

* Team leaders/Management should be skilled in handling situations.

* Take down important notes about service providers for future references.

*Select leaders who can be role models and live out strategies by being good examples.

Dr. Aird said corporate strategies of organizations are different. Therefore, global business services cannot be considered �one-size-fits-all�. Also, different corporate strategies will lead to different strategies in terms of global business services.


Cebu BPOs Bear up against Earthquake

by @ 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.


Everest Group Says HR Outsourcing will Grow 8-10% in 2011

by @ News Feed

This year, the multi-process Human Resources Outsourcing (MPHRO) will grow by 8-10 percent, mainly due to stronger economy and as contract activity bounces back. This is based on the Human Resources Outsourcing Annual Report 2011 by global services firm Everest Group.

Research Director Rajesh Ranjan said cost reduction is still the primary reason companies adopt human resources outsourcing, though technology access, keeping HR and business aligned, and managing compliance are becoming more crucial. Aside from the projected growth rate of the market, it is also expected that there will be increased adoption of MPHRO by industries like insurance and technology, as well as mid-market companies.

Report also reveals that North America is the no. 1 adopter while Europe accounts for 33 percent of MPHRO deals. On the global scale, India is the leading offshoring destination. Also, payroll processing and benefits are the most common functions included in human resources outsourcing deals.


Companies can Benefit from Outsourced Contact Centers

by @ 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.


PH Business Leaders List 2015 Priorities

by @ News Feed

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.


BPO Firm Says Training is Crucial to Sustain Growth

by @ 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.


Outsourcing in 2014: Focused on Service, not Savings

by @ News Feed

Quality of Outsourcing Service Tops Clients' Priorities

Oliver Hemming, Strategy Consulting Partner at consulting firm Deliotte, gave an in-depth account on what outsourcing clients are looking for. According to Deloitte’s support services predictions, the value of an outsourcing deal will be based on actual results and not cost savings.

The executive explained that this is forcing outsourcing service providers to be more innovative in creating more value for money. That and being able to minimize risks and problems are the challenges for providers this year.

He further noted that the use of facilities management firms will increase to address the demand for "joined up services" from multinational corporate clients. Also, he said firms that choose to focus on local markets will reinforce local relationships, but pointed out that the ones that choose not to build a presence internationally will be estranged from common procurement practices.

Data from Deloitte also showed that mergers and acquisitions remain the primary factor that propels growth in international markets.


SEO Blog Posts 101

by Julie Garcia @ SEO Girl Powa

How to Write Better Blog Posts for People and Spiders A blog post is meant to be a quick (350-500 words), easily digestible read with at-a-glance formatting [...]

Four Easy Steps to Confronting Customer Rants Online

by OP.Admin @ Search Engine Optimization – Outsource Philippines

Ignoring a client’s complaint on the Web is similar to hanging up on him/her with millions of other people watching. Especially now that people have ... Read More

The post Four Easy Steps to Confronting Customer Rants Online appeared first on Outsource Philippines.

IBPAP Names New Set of 10 Next Wave Cities

by @ News Feed

Philippine Outsourcing 2016 Next Wave Cities

The Information Technology and Business Process Association of the Philippines (IBPAP) added 10 new areas to the growing list of locations that will support the growth of the information technology-business process management (IT-BPM) sector. These areas, collectively called 10 Next Wave Cities, are Baguio, Cagayan De Oro, Dagupan, Dasmariñas, Dumaguete, Lipa, Malolos, Naga, Sta. Rosa in Laguna, as well as Taytay in Rizal.

According to IBPAP, out of the 42 cities assessed last year, these 10 Next Wave Cities emerged on top based on factors such as talent pool, infrastructure, good business climate, and cost competitiveness.

IBPAP Chairman Danilo Sebastian Reyes said these new IT-BPM hubs are expected to contribute 40 percent to the total revenues generated by the sector. This is higher than the contribution of next wave cities two years ago which accounted for only 22 percent. Metro Manila and Cebu accounted for the larger share of total revenues.

The 10 Next Wave Cities, identified and evaluated by IBPAP, Department of Science and Technology-Information and Communications Technology Office, and Leechiu Property Consultants (LPC), aim to spread out the development of the country's IT-BPM sector which will further contribute to the growth of the economy. LPC Chief Executive Officer David Leechiu said with sustained growth seen in the sector, industry players look at other areas which are suitable for their operations.

New emerging cities were also identified. These are areas that have the potential and foundation to become next wave cities, said IBPAP CEO and President Jomari Mercado. These emerging cities are Balanga City, Batangas City, Iriga City, Laoag City, Legazpi City, Puerto Princesa City, Roxas City, Tarlac City, Tuguegarao City, as well as Zamboanga City.


BPO Vendors to Focus on Innovation, Process Improvement

by @ News Feed

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.


Research Driven Web Design

by @ 4M Feed

Like any other work, research is essential for every successful web design project too. A designer�s visual research combined with professional research can result in some useful ideas and insights.

by @ RSS Feed for

Top SEO services from best SEO Company in India for inexpensive but best services. Contact one of the top SEO Companies in Delhi, India for improved rankings & positive ROI.

Barack Obama Urges US firms to Insource

by @ News Feed

With an unimpressive unemployment rate of 8.5% and an inactive economy, US President Barack Obama is once again pleading for US firms to source locally. Even though he focused more on manufacturing jobs during his State of the Union speech, he also cited the adverse effects of technology to unemployment.

The President harked back to the day before recession immobilized the economy, when technology was merely being used by firms and then was gradually adopted, resulting to loss in job opportunities. He said the country will not go back to a weak economy brought about by outsourcing, debt, and fake profits.

Obama shared a proposition wherein firms that are providing jobs will be rewarded and those that are outsourcing offshore will not get benefits like tax deductions.

Some jobs still likely to be outsourced offshore

However, software coding and computer hardware management jobs will likely be outsourced offshore since majority of US’ talent pool are not equipped with such skills.  

Som Mittal , President of Indian software industry body Nasscom, said the IT industry of India greatly helps in building innovation to the US economy, and he is hopeful that rebuilding US would lead to desired results.


PH Foreign Investments could Reach $75B this Year

by @ News Feed

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.


PH BPO Sector Unfazed by Obama's Anti-outsourcing Efforts

by @ 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.


RP Ranked as World's No. 2 Offshore Outsourcing Nation

by @ 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.


PH BPO Poised to Hit 2016 Targets

by @ News Feed

The information technology and business process management (IT-BPM) industry of the Philippines is set to generate $25 billion in revenue and employ 1.3 million Filipinos by 2016. Amidst its bullish growth over the years, the sector is seen to tap a larger market base - specifically for high-valued processes.

According to Jose Mari Mercado, President and CEO of Information Technology and Business Process Association of the Philippines (IBPAP), there are still countless opportunities left untapped for the Philippines. Some of these segments include the finance and accounting functions as well as healthcare back office processes.
Last year, growth was said to have been driven by foreign investors who wanted to expand operations. In addition to that, the "captives" market, which is also known as in-house BPO units that specialized in the specific needs of clients, fuelled the growth of the segment.

PH IT-BPM industry set to hit 16% growth target

The industry body is hoping to hit the 16-percent growth target, which is equivalent to $18 billion this year from $15.5 billion last year. In line with that, employment reached 900,000 last year.

Meanwhile, the Philippine Institute for Development Studies said the Philippines could soon become the leader in the Asia-Pacific region for services because of its scalable workforce. In fact, PIDS Research Consultant Ramonette Serafica said the 10.4 million Filipinos make the Philippines a natural market for services. 


Guide to increase your rank on Google

by @ 4M Feed

Search Engine Optimization (SEO) plays an imperative role in improving a web site�s ranking. Set your target keywords, optimizing your own pages - creating your site attractive to search engines.

SHORE Solutions among key delegates at CeBIT Australia in May

by Bastiaan Mawhin @ SHORE Solutions Inc.

SHORE Solutions, one of the fastest growing, client-focused business process outsourcing (BPO) companies in the Philippines today, was one of the dozen BPO providers that joined a trade mission to CeBIT Australia from May 5 to 8, 2015 at the Sydney Olympic Park. Bastiaan Mawhin, Sales and Marketing Vice President, was SHORE’s delegate to this … Continue reading SHORE Solutions among key delegates at CeBIT Australia in May

The post SHORE Solutions among key delegates at CeBIT Australia in May appeared first on SHORE Solutions Inc..

SearchCap: Amp links at large, Google AdWords demographic targeting & more

by Amy Gesenhues @ SearchCap: Daily Search Engine News Recap

Below is what happened in search today, as reported on Search Engine Land and from other places across the web.

The post SearchCap: Amp links at large, Google AdWords demographic targeting & more appeared first on Search Engine Land.

Procurement Outsourcing Posts 10% Growth

by @ 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.


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

by @ News Feed

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.


Cebu ICT-BPM Industry Predicted to Gain more Traction this Year

by @ News Feed

Faster Growth in Cebu ICT-BPM

According to Wilfredo Sa-a Jr., Executive Director at Cebu Educational Development Foundation for Information Technology, the information and communications technology and business process management (ICT-BPM) of Cebu, Philippines will create more opportunities for employees in the province.

This is made possible by the influx of large multinational companies that are establishing shared services, and health and insurance information management operations in the province. In addition to those segments, he highlighted that ICT-BPM is well on its way to becoming a premier sector in the outsourcing industry of Cebu.
Nurses and other medical professionals in particular will be benefiting from the growing number of health information management (HIM) companies that are setting up operations in Cebu. Some of the major players are United Health Group, ExlService Philippines Inc., Cognizant, QBE Insurance, and Manulife Business Processing Services.

For the shared services segment, Sa-a noted that Lexmark Shared Service Center and new player Daimler Group Services are also doing well in their Cebu operations. Sa-a also stated that the province is in a new wave of outsourcing - in a higher-value bracket.

However, there are still concerns about the result once the Association of Southeast Asian Nations (Asean) is integrated in two years’ time. Before the integration, Cedfit and the Cebu Chamber of Commerce and Industry have partnered in launching the 2014 Cebu ICT-BPM Conference and Expo on June 2-3 at the Marco Polo Plaza Hotel. The forum is set to be one of the main activities of the Cebu Business Month.


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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Web Developers’ Biggest Career Lessons

by OP.Admin @ Search Engine Optimization – Outsource Philippines

We all make mistakes but committing them in area where we think we excel the most is truly disappointing. For some, these errors are but ... Read More

The post Web Developers’ Biggest Career Lessons appeared first on Outsource Philippines.

Industry Leaders Lobby for Data Privacy Act

by @ 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.


BPOs to Tap Candidates outside NCR

by @ News Feed

According to Information Technology & Business Process Association of the Philippines (IBPAP), the hiring rate for business process outsourcing (BPO) workers in the Philippines’ National Capital Region (NCR) is expected to slow down and employment rate will increase in the provinces because of the improving business environments and infrastructure projects in those areas.

PH BPO Sector Looking for Candidates Outside Manila

IBPAP Senior Executive Director Gillian Joyce G. Virata said with the industry’s current strong position, both the government and private sector anticipate an increase in job placement activities for BPO companies that are set to operate in rural areas in three years’ time.  

She added that from the current 75:25 (NCR: Provinces) ratio of employment rate, they are looking to shift it to 60:40. In addition to that, it was found that 2007 posted the most disproportionate ratio of NCR employees and non-NCR employees at 82:18.

The shift in hiring proportions is not taking effect as fast as it should because as provinces continue to grow, NCR is developing alongside it as well.


How to create customized questionnaire on existing WordPress site?

by olalite @

I have existing website in WordPress and I am looking for a way to create questionnaire (very personalised answer is based upon user response, like for flights search where the client fill in the city, date of flights and destination and get answer based upon his answer). What do I need to do that?...

Nasscom Outlines Ethical Practices for Indian IT-BPO

by @ News Feed

NASSCOM Publishes Ethical Practices for Outsourcing

The Governance and Ethics Committee of the National Association of Software and Service Companies (Nasscom) recently released the key recommendations for India’s IT-BPO industry in order to develop highest probity standards and strengthen corporate governance within the industry.

Recommendations included in the report are: ethical practices for contracts, data security, clear accountability, compliance with legal matters, and customer satisfaction.

To ensure that the company and employees are aligned in terms of common goals, Nasscom’s recommendations include confidentiality of information, protection of company assets, and adherence to policies. The report also outlined points that will promote a safe working environment for employees as well as clear guidelines to strengthen ethical practices with vendor partners.



SearchCap: Google AdWords ad suggestions, ad performance & Doodles

by Barry Schwartz @ SearchCap: Daily Search Engine News Recap

Below is what happened in search today, as reported on and from other places across the web.

The post SearchCap: Google AdWords ad suggestions, ad performance & Doodles appeared first on Search Engine Land.

Four Influential Factors in the Business & IT Services Market

by @ 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

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.


Ohio Governor Bans Offshoring of IT, Back Office Projects

by @ News Feed

Ted Strickland, Democratic governor of Ohio, issued an executive order banning the transfer of government IT and back office projects offshore.

According to Strickland, "pervasive service delivery problems with offshore providers, including dissatisfaction with the quality of their services and with the fact that services are being provided offshore" prompted him to put a stop to outsourcing government projects to offshore locations.

While this anti-outsourcing move is not made specifically for Indian service providers, it is expected to affect India-based companies which handle big state-level government projects, and especially at a time when Indian firms are already dealing with concerns such as the bill on the increase in visa fees of IT workers coming to the US. "Ohio's ban on outsourcing can only be viewed as counter-productive to the US government thrust on reducing public deficit... It only reinforces our stand on discrimination," National Association of Software and Service Companies (Nasscom) said in a statement.


Surge of Shorter Outsourcing Deals Predicted this Year

by @ 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.


ADB Grant to Boost PH IT-BPO Sector

by @ News Feed

The information technology-business process outsourcing (IT-BPO) sector is set to receive $650,000 worth of technical assistance from Asian Development Bank (ADB) and the Philippine government. The partnership aims to reinforce the expanding IT-BPO sector, as stated in the Memorandum of Understanding (MOU) which was signed during the 45th ADB Annual Meeting of the Board of Governors in Manila.

The funds are set to be used on �knowledge hubs� that will be constructed in select educational institutions all over the country. These hubs are for higher education institutions (HEI) - to prepare and develop a learning environment for those who are interested in the IT-BPO sector. The hubs will provide online training for 900 educators and digitized learning and study guides for 3,000 college students.

Of the $650,000, $150,000 will be provided by the Philippine government and $500,000 will come from the Republic of Korea e-Asia and Knowledge Partnership Fund by the ADB.

The MOU indicated that the IT-BPO sector has grown immensely over the years and is one of the top revenue generators of the country. Moreover, the country is recognized as a global leader in voice-based processes and is now shifting to high-end services.

Revenues from the sector reached $11 billion in 2011 and have grown 24 percent from the previous year. It currently employs 638,000 workers.


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

by @ News Feed

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 Dethrones India as No. 1 BPO Destination

by @ 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


Low-cost IT could Accelerate as Firms Outsource to Cut Costs

by @ News Feed

Gartner, Inc.'s report shows that uncertainty in economy and business, increasing competition, and industrialization of IT services can drive businesses to outsource and cut costs, speeding up the increase of low-cost IT.

According to Claudio Da Rold, vice president and analyst at Gartner, the price will remain a deciding factor, and organizations outsource IT processes to reduce costs. The report also shows that with industrialized IT services, service providers can offer �one-to-many� services at a price that's lower compared to IT processes done in-house.

�Cost cutting, restructuring and the move toward offshore outsourcing continue to increase while growth in emerging countries accelerates, widening the gap between high-growth areas (e.g. Asia/Pacific and Brazil, Russia, India and China) and stagnant economies (e.g. Europe, Japan and North America), and low and high-cost IT providers. This trend could drive a prolonged reduction in the unit cost of IT services, significantly affecting the IT services market by 2013,� Da Rold said.


PH Stocks Worry over Possible Growth Outlook Downgrade

by @ News Feed

It is anticipated that the International Monetary Fund (IMF) and other investment banks could be lowering their growth forecasts for the Philippines this year. This week, shares fluctuated as the market starts to worry over the final growth outlook.
The Philippine Stock Exchange index (PSEi) dropped 118.41 points or 1.54 percent and closed at 7,551.96. On the other hand, All-Shares index dropped 49.51 points or 1.13 percent to 4,347.86.

According to Astro del Castillo, Managing Director of First Grade Finance Inc., trading was slightly affected by the slow first quarter GDP, and was worried over a potential cut in projections for the Philippine economy this year.

During the first quarter, GDP is up by 5.2 percent, which is far from the six-percent growth pegged by economists and a 7.3-percent projection by the IMF. Growth momentum also slowed down from the already updated 6.6-percent growth in the preceding quarter, and the 5.6-percent growth posted during the same period last year.

Del Castillo added that investors were concerned over the non-stop downgrades for the country’s GDP by select institutions, particularly the IMF.

Following the “significant negative surprise in the first-quarter” figures, the IMF is set to reevaluate its 2015 projections for the Philippines for the next World Economic Outlook (WEO) forecast.

According to Metrobank Research, the country’s GDP could further weaken as El Nin~o continues to pose a threat to the agricultural output of the country, which could then affect consumer prices in this year’s remaining six months.


Global Procurement Outsourcing Posts 17% Growth

by @ News Feed

Global research and advisory firm Everest Group’s Procurement Outsourcing (PO) Annual Report 2012 - The PO Market: Steadily Marching Forward shows that the total value of PO contracts had increased 17 percent for the last two years, reaching $11 billion (£7 billion). This can be due to the growth of the average contract value and continued use of the process by companies that post revenues from $1 to $5 billion (£600 million-£3.2 billion)

Procurement outsourcing market posts remarkable figures

According to Everest Group Vice-president Saurabh Gupta, the procurement outsourcing market posted remarkable figures for new deals, renewed contracts, and re-adoption rate for the mid-sized market.

Moreover, 80 percent of the total value of deals awarded in 2011 are from manufacturing, consumer packaged goods, and retail companies. Meanwhile, the finance and accounting sector was seen to gradually outsource accounts payable processes.

Everest also predicts that 2013 may be the third consecutive year of growth for PO as the total value of contracts is expected to reach $1.8 billion (£1.1 billion), a $200 million (£126 million) increase with small firms leading the growth.

Moreover, the report indicated that companies from the Asia-Pacific and South American regions will have an increase in procurement outsourcing activities.


Paradigm Shift of IT-BPO: From Optimization to Transformation

by @ News Feed

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.”



More Jobs for Nurses in PH BPO

by @ News Feed

Unemployment rate decrease due to job in the BPO sector

The business process outsourcing (BPO) sector of the Philippines is slowly reducing unemployment in the country. According to Pasig City Rep. Roman Romulo, nearly 22,000 nursing graduates were able to land well-paying medical coding and clinical service jobs in the sector.

Romulo said more and more organizations that are serving healthcare clients in the US are setting up operations in the country, and these organizations are hiring nurses for local employment. He added that they are hoping that this will decrease the unemployment rate among nurses.

Meanwhile, the IT and Business Processing Association of the Philippines (IBPAP) projected that by 2016, the sector will produce $27 billion in annual revenues and employ 1.3 million Filipinos.

Romulo, who is likewise the Chairman of the House Committee on Higher and Technical Education, said unemployment remains high among nurses because of the large volume of graduates every year. The Professional Regulatory Commission granted licenses to almost 22,222 board passers this year.

However, Romulo pointed out that the jobs in the BPO sector require aspiring candidates to have strong communication and analytical skills - and should be willing to work in shifts.


Strong Peso Pushes BPO Firms to Relocate

by @ News Feed

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.


What are the benefits of outsourcing Search Engine Optimization to an agency? - Streametrics

What are the benefits of outsourcing Search Engine Optimization to an agency? - Streametrics


Let’s first take a look on the needs of SEO: Website design and development. A moving target, with new releases, design trends, new products and categories, and seasonal promotions. Search engine marketing. Search engine optimization and pay-per-click campaign management. Content marketing. Developing content for products, blogs. and your website. Graphic design. Banner ads, promotional banners, …

India to Discuss Outsourcing Concerns with Obama

by @ News Feed

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. 




Turning Bad Reviews into Good Opportunities

by 365outsource_admin @

Customers trust reviews written by their peers much more than information on official websites or advertisements. When business owners see negative reviews, their first instinct is to get delete them and hope nobody notices. Negative reviews might not be something you want to see on your website or business listing pages, but they can actually…

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BPOs Keep a Close Eye on Strong PH Peso

by @ News Feed

The Business Processing Association of the Philippines (BPAP) recently cited the stronger peso as a threat to the business process outsourcing (BPO) industry as it may decrease the country's characteristic of being an economical hub for business operations.

Benedict Hernandez, President at BPAP, mentioned a report done by Outsource2Philippines and Everest Group, stating that the recent depreciation of the Indian rupee vs. the appreciation of the peso puts the former in a more favourable position.

Hernandez added that the difference between the peso and rupee grew as much as 30 percent to the dollar. However, the BPAP executive noted that outsourcing goes beyond cost efficiency - what's more important is the quality of service and productivity. But with high market prices, it will be more difficult for the industry if the peso continues to gain strength.


DOST Pledges Support to BPM Industry

by @ News Feed

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.


Top 5 ways to reach and embrace millennial customers

by Bastiaan Mawhin @ SHORE Solutions Inc.

They have a penchant for blocking traditional advertisements. If they want information on products and services, they seek their personal and online social networks’ advice instead. Who are they? The millennials. As investing education and financial news website Investopedia defines them, millennials are individuals born between 1982 and 2004. There are about 80 million millennials … Continue reading Top 5 ways to reach and embrace millennial customers

The post Top 5 ways to reach and embrace millennial customers appeared first on SHORE Solutions Inc..

PH Cities Join Top Outsourcing Hubs in the World List

by @ News Feed

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.


Nasscom Predicts Drop in Indian IT, BPO Services Exports

by @ News Feed

The National Association of Software and Services Companies (Nasscom) recently predicted that by March 31, 2013, developments in Indian IT exports services, business process outsourcing (BPO), and related services will decrease by 11 to 14 percent from the current fiscal year's 16.3 percent.

Deferred procurement decisions by customers and a vague economic environment like the one in Europe were some of the factors that have affected the forecast.

Salil Dani, Research Director for Global Sourcing at advisory and research firm Everest Group said growth will be flat for the first half of this year, unless Europe will be able to recover from its current economic situation. Also, global outsourcing revenue dropped 15 percent during last year's Q4 compared to Q3.

Meanwhile, Sudin Apte, Principal Analyst and CEO of consultancy firm Offshore Insights, said IT budget is also being affected; it is decreased or remains the same. He added that clients are no longer on the side of providers and are careful in adopting new technologies like the cloud, mobile capability, etc.

Nasscom said the business process outsourcing industry in India is expected to grow by 13 percent valued at $16 billion, and exports are predicted to reach $69 billion.


Office demand soars as the Philippines remains a top outsourcing destination

by Shey Paurillo @ SHORE Solutions Inc.

Home to world-class Business Process Outsourcing (BPO) facilities that work with some of the world’s biggest name-brand companies, the Philippines has everything going for it in terms of real estate development and property sale and leasing. According to Claro dG. Cordero Jr., head of research, consulting and valuation of Jones Lang LaSalle (JLL) Philippines Inc., … Continue reading Office demand soars as the Philippines remains a top outsourcing destination

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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.


PH BPO Earnings Grew nearly $2B in 2013

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With the rate that the business process outsourcing (BPO) industry of the Philippines is going, Bangko Sentral ng Pilipinas (BSP) anticipated that it will post $13.34 billion in earnings for 2013, which is almost $2 billion more than $11.6 billion posted in 2012.  

BSP said the 15 percent projected growth for the export services industry will carry on up to 2014 in which it is anticipated to post revenues amounting to $15.34 billion.

However, BSP's projections only cover the revenues from exported services, not the ones rendered for Philippines-based companies. These also didn't include the foreign investments that were established for 2013 as these were already included in the foreign-direct investment statistics.

According to Zeno Abenoja, Director for the Department of Economic Research at BSP, the growth of the Philippine BPO industry is fuelled by the rising non-voice, high-value segments, and the strong support from the local government.

Abenoja revealed that the projections were made in accordance with the actual information from the BPO industry. He said voice-based processes remain as the highest contributor to the market, but it is now seen shifting to other outsourcing segments like animation, transcription, among others.


BPO Jobs Primed for Skilled Graduates

by @ 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.


The 25 Most Dangerous Outsourcing Spots in 2010

by @ 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


Strong Support Seen for Davao's BPO Sector

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Davao an alternative location for BPO operations in the Philippines

A recently published article at Cushman & Wakefield Philippines, a branch of real estate services company Cushman & Wakefield New York, identified Davao City as an alternative location for business process outsourcing (BPO) operations in the Philippines.

Data from the firm’s research report were based on the Next Wave Cities (NWC) analysis from the Business Process Association of the Philippines two years ago, and the geohazard maps created by the Ateneo de Manila University’s Mapping Philippine Vulnerability to Environmental Disasters plan.

The study indicated that the factors that make Davao City a preferable alternative to BPO locators are its low climate and geophysical risks, its infrastructure that received high scores in the NWC test, and sound business environment.   

According to Ivan C. Cortez, OIC at Davao City Investment Promotion Center (DCIPC), they are expecting more foreign property consultants to begin construction for BPOs and similar organizations in Davao City. The incoming projects will be joining bigger players that are already operating in the area.

Cortez added that apart from traditional services in the global outsourcing market, non-voice processes such as applications and software development, analytics, big data, and mobile are also gaining traction in the services export industry of Davao.


PH IT-BPO Climbs 17% in 2013

by @ News Feed

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.


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  It is tough to overstate just how essential video marketing can be to a small business. After all, a full 55% of people watch an online video regularly. If this does not prove how impressive videos can be for advertising and marketing strategies, nothing will. Sadly, this fantastic tool could quickly amount to nothing […]

RP Eyes 5% Share of Global Market for Healthcare Info Outsourcing

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PH Eyes 5% Market Share of Global Healthcare Info Outsourcing

At a conference conducted by the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), Myla Rose Mundo-Reyes, HIMOAP president, said the Philippines is aiming to get five percent market share of the global healthcare info outsourcing industry. This means a lot of new job opportunities, or more than 100,000 jobs, for the country’s nursing and allied medical professional graduates.

"The increased demand for electronic healthcare pens up huge career opportunities for nursing and allied medical professionals for medical coding, PHI entry and management, disease management and patient education and other services related to the administrative functions of a hospital, a home for the aged, and other medical centers," Mundo-Reyes said, adding that there are 400,000 nursing graduates in the country every year, so it is essential to gain this market share to manage the surplus.

The country currently has 50 companies offering medical transcription services including medical coding, medical billing, and claims processing.



Philippines as the Best Offshore Outsourcing Hub for SEO

by jon @ SEO outsourcing to the Philippines – Outsource Force

SEO or Search Engine Optimization is an integral part of online marketing process. SEO services facilitate brand visibility and higher search engine rankings. For most businesses, the importance of search engine optimization is not to be ignored because achieving increased online visibility and higher rankings with search engines will largely depend on the search engine […]

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Firms Prefer IT Functions to Stay In-house

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Outsourced IT Operations to be Brought Back In-house

A survey from IT research firm Computer Economics found that since economies are now more stable and mature, companies have been seen bringing back IT operations in-house.

Last year, IT outsourcing budgets averaged at 10.6 percent and even hit 11.9 percent back in 2012. But for this year, it only clocked in 10.2 percent.

Some of the IT processes that declined in outsourcing this year are help desk, desktop support, and application maintenance. However, data center, application development, database administration, network operations, and disaster recovery are in a slow and steady cycle.

According to John Longwell, President of research at Computer Economics, the ongoing economic recovery is the key contributor to the downward movement in outsourcing activity. He added that even if IT budgets are increasing, it is allotted to internal investments and not in outsourcing.

Moreover, the study pointed out that during the early stages of the recovery, organizations outsourced because they felt hiring full-time employees was risky. As economies gain stability, they are focusing on the improvements and manpower needed for them to progress.


Roadmap: RP BPO Annual Revenues can Reach $25bn by 2016

by @ News Feed

If the BPO industry can stay competitive and leverage support from the government, the Philippines can post annual revenues reaching $25 billion and employ 1.3 million Filipinos by 2016.

This is based on the “IT-BPO Roadmap 2011-2016: Driving Global Leadership”, funded by the Commission on Information and Communications Technology (CICT) and developed by Everest Group and Outsource2Philippines for the Business Processing Association of the Philippines (BPAP).

BPO industry can grow to $20B in annual revenues

“We found that the industry can grow to $20 billion in annual revenues by 2016 if current conditions are sustained,” BPAP CEO Oscar Sañez said. He added that the industry’s revenues can reach $25 billion if the positive conditions are sustained and the government gives new support to the BPO industry.

The country’s outsourcing industry stays competitive, thanks to the strong demand, government support, and strong language skills of workers. Sañez said its value proposition can still be improved depending on the initiatives on educational reform, enhanced visibility of the country on the global stage, and if the Filipinos will better appreciate and take advantage of the job opportunities being offered by the industry.


PH Call Centers to Increase Targets

by @ 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.


RP BPO Reaches Half of Projected Revenue Goal for 2010

by @ News Feed

According to the Business Processing Association of the Philippines (BPAP), the country's BPO industry had already posted $4.7 billion in revenues for the first half of the year. This is half of the $9.4 billion revenue goal projected for 2010, so the industry is right on track towards achieving that revenue projection.

Oscar Sanez, president of BPAP, is confident that with the present revenue growth, outsourcing will be the biggest service export for the country. He said the Aquino administration needs to find ways to attract foreign investors for the continuous growth of the country's economy. "Over the past years we have fallen behind Asean in FDIs [foreign direct investments]. We need to promote (ourselves more). FDIs will feed our future growth or else we have to rely on what we have," Sanez said.

Sanez added that in a survey conducted in the second quarter, more than half of BPAP members said they are expecting a growth rate of 6-50 percent in revenues and workforce.


UK Firms Expected to Outsource to the Philippines

by @ News Feed

According to UK Ambassador to the Philippines Asif Ahmad, more businesses based in the United Kingdom are strongly considering the Philippines for investment, retail, and expansion opportunities. He said UK businesses that are highly interested in doing so include: an independent oil refining company, a retailer that is currently looking at the capabilities of the country in manufacturing and what it would be like if they were to export to other ASEAN countries, and a British coffee shop chain set to open in the Philippines soon.

Amidst the sluggish recovery of the European economy, Ahmad said the UK government has been urging British businesses to outsource operations offshore.

The ambassador noted that because the Philippines offers affordable workforce and robust economy, even small and medium enterprises (SMEs) based in the UK see the country as one of the best outsourcing destinations in the world. He also explained that as SMEs, they prefer to expand offshore because it would be harder for them to operate in Europe.

Ahmad even addressed the British companies, stating that expanding will be very hard because Europe is experiencing an economic downturn. He added that it will be easier for them to operate in Asia where they can improve supply chain, as well as meet business partners.

Companies that belong to the small enterprise set are those that post sales of about �1 million to �10 million. Medium enterprises are companies that post earnings from �10 million to �50 million pounds.


India's Healthcare BPO Providers Facing Competition from PH, US

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The Philippines is a Threat to India's Healthcare Outsourcing Segment

A joint study conducted by The Associated Chambers of Commerce and Industry of India (Assocham) and global professional services organization EY revealed that healthcare business process outsourcing (BPO) providers in India will be facing off with new rivals from counterparts in the Philippines and the US.

The study pointed out that among other outsourcing verticals, the Philippines and other economical outsourcing locations are stepping up to the plate against India in the healthcare BPO space. Rivals in the US are also anticipated to be a challenge for Indian providers as it is knowledgeable in numerous healthcare outsourcing services.

Another drawback for the growth of India’s healthcare BPO market is data privacy because providers need to handle personal, classified healthcare information as private and sensitive as financial information. For Indian vendors to avoid problems related to data security and keep the worries of potential clients at bay, they would have to comply with international standards of security and privacy.

In addition to the challenges, experienced IT and BPO service providers that have technical know-how of integrated solutions, and big data capabilities are likely to have the upper hand in the healthcare segment.  

India has several issues that need to be addressed. These include the rising cost of infrastructure, increasing salary levels, fluctuating exchange rates, connectivity, and power supply. India is currently the leader for healthcare BPO services, but concerns over policy framework such as data privacy laws, tax laws, intellectual property (IP) protection laws and clinical trial laws persist.


e-Services Event to Highlight KPO Services

by @ 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.




5 Reasons To Outsource Search Engine Optimization - Usabilla Blog

5 Reasons To Outsource Search Engine Optimization - Usabilla Blog

Usabilla Blog

In this guest post Alexis Thompson shares with us her thoughts on outsourcing SEO work. The Business Process Outsourcing Industry has been growing since the start of the new millennium. A lot of giant businesses, such as Coca Cola, have

Outsourcing Experts Seek more Cooperation

by @ News Feed

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.


PH Office Real Estate to Set Record High Activity in 2014

by @ News Feed

Record High Real Estate Activity in the Philippines Driven by BPOs

A report shared by Colliers International, a global commercial real estate firm, projected that office space development in the Philippines will set record high activity before the year ends. By the end of 2014, nearly 480,000 square meters of new office space will be available with the current occupancy rate at 45 percent.

Julius Guevara, Director at Colliers, said the office space expected to be produced this year will be the highest volume of office space recorded in the Philippines. He also noted that the last time the country developed a record number of office space was in 2009 - 467,000 square meters of office space were developed.

Guevara added that the demand for office space is aggressive and the market remains bullish. However, he also said the target volume of office space will not be achieved as some developers may fail to reach their deadlines.

He pointed out that the largest occupant for office space is the business process outsourcing (BPO) industry.


When, Why & How to Outsource Web Services to the Philippines

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So you’re thinking about giving this whole web outsourcing thing a go, but you’re not sure where or how to start. No worries. It’s not that hard, just keep these in mind:  Do not outsource your core competency. Play to [...]

The post When, Why & How to Outsource Web Services to the Philippines appeared first on August 99, Inc..

PH BPO to further Improve Talent Pool

by @ 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.


PH Outsourcing Revenues to Hit $16B

by @ News Feed

The outsourcing industry of the Philippines is anticipated to surpass revenue and employment targets this year. According to the Information Technology and Business Process Association of the Philippines (IBPAP), this is likely to happen since foreign businesses see the country as an ideal outsourcing hub.

In the 5th International Outsourcing Summit, IBPAP President Jose Mari Mercado predicted that outsourcing revenues this year will reach $16 billion, which is 21 percent higher than last year's $13.2 billion, and higher than their initial projection which was $15.7 billion.
Employment projections are also higher from last year's 777,000 to 925,000. By the end of the year, the organization expects the workforce to reach 960,000 for the entire information technology business process management (IT-BPM) sector.

The voice industry is the key contributor for this growth, but interest for non-voice processes is on the rise as well.

Meanwhile, IBPAP Chairman Danilo Sebastian Reyes said more and more foreign investors are specifically requesting for Filipino outsourcing companies not only for voice processes but non-voice operations as well on account of the organization's great efforts in marketing the country as an end-to-end service destination.


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.

�The cutbacks in tech purchases were in many cases driven by fear. Fear that the economy was headed toward a multiyear recession... and fear that firms would not be able to borrow from banks or the credit market if they needed, resulting in the drive to hoard cash and slash capital investment... As fears ease and prices rebound, the pent-up demand in those industries for IT goods and services will bounce back in 2010,� said the Forrester report.

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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Survey Shows Mid-sized Firms Get More out of Outsourcing

by @ 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. 


Bayan to support Next Wave Cities

by @ News Feed

Bayan Telecommunications have announced that they plan to fully support the offshoring & outsourcing industry in the Philippines and explore business opportunities in its list of Next Wave Cities.

The Philippines is expected to own 10 percent of the global offshoring & outsourcing market share by 2010. The country will need an estimated 1 million new employees in the industry in order to meet the goal.

Bayan said it seeks to help achieve that goal by supporting outsourcing companies in alternate locations outside Manila.  Bayan was in attendance in Iloilo for Covergence 2009 – a project of the Commission on Information and Communications Technology (CICT).  

“In line with our thrust of bringing out the best in the lives of Filipinos, Bayan hopes to have highlighted the regional capabilities of the country to attract investors and locators for various outsourcing and offshoring services as part of the Philippine cyberservices corridor,” Bayan Managing Director, Fred Bernardo stated.

Next Wave Cities in the outsourcing sector

The Philippines' Next Wave Cities in the outsourcing sector are Iloilo, Metro Laguna, Metro Cavite, Davao, Bacolod, Pampanga Central, Bulacan Central, Cagayan de Oro, Bulacan South and Lipa.


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Ayala's Integreon Bags $852M Outsourcing Contract

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Ayala Wins Outsourcing Contract

Integreon, an Ayala-led BPO unit, had closed a 10-year outsourcing contract worth $852 million with UK-based CMS Cameron McKenna, one of the largest law firms in the world. This is said to be the biggest deal of its kind in the legal outsourcing industry.

According to Duncan Weston, CMS Cameron McKenna managing partner, they chose Integreon because of its worldwide network of experienced professionals.

Some of the tasks that will be outsourced are accounting and finance, HR, marketing and communications, research, and IT.

“By outsourcing nonbillable tasks to Integreon, which is majority owned by LiveIt, Ayala Corp.’s BPO holding company, CMS Cameron McKenna can focus on its core competency - providing high-end legal and tax services,” Ayala Corp. said. "CMS Cameron McKenna’s decision to outsource its Middle Office is part of its ambitious and progressive strategy to create a new model for law firms.”



PH Remains Strong in Asia-Pacific's Voice BPO

by @ News Feed

For the first half of this year (1H13), the contact center space in the Asia-Pacific region posted a factory revenue of $10.1 million, which is 10 percent higher than the same period last year.

In the 1H13 Asia-Pacific Collaboration and Video report created by the International Data Corporation (IDC), the contact center market was identified as the second largest in the unified communication and collaboration (UC&C) space, and even posted the highest total revenues with 28.8 percent of the segment.

Telephony took the top spot with 41 percent, and is said to be incorporating apps (22.7 percent) and videoconferencing (7.6 percent) solutions.

The Philippines retains its streak in investments, even after the mid-term elections last May. It has become an ideal outsourcing hub for many UC&C vendors because of the local outsourcing industry's robust growth driven by the extensive and skilled talent pool, flexible human resources, development of business and economic zones, updated telecommunications infrastructure, and tax breaks for investors.

However, IDC noted that amid the rise in higher-value knowledge process outsourcing services (KPO) in the country, voice processes will still dominate the local outsourcing industry.


Advantages of Outsourcing: 9 Benefits of Outsourcing to the Philippines

by Krista Mae Andico @ Eternus Global Outsourcing| Philippines Ecommerce Experts: Core PHP Developer Philippines, Ecommerce Development and Consulting, Ecommerce SEO and Copywriting

Before considering outsourcing, you must understand the advantages of outsourcing. The Philippines is one of the most widespread options when it comes to outsourcing. With its various people and proficient workers, outsourcing to the Philippines makes a lot of sense. Here are 9 reasons that make the Philippines the top choice when it comes to […]

The post Advantages of Outsourcing: 9 Benefits of Outsourcing to the Philippines appeared first on Eternus Global Outsourcing| Philippines Ecommerce Experts: Core PHP Developer Philippines, Ecommerce Development and Consulting, Ecommerce SEO and Copywriting.

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 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.


MicroSourcing Opens New Office at Bonifacio Global City

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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.


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Telco Company Seeks Call Center Agents with British Accent

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Bristish Company Looking for Call Center Agents in the Philippines

According to Business Inquirer Manila, a British company has considered entering the Philippines’ business process outsourcing (BPO) market, and even train call center employees to speak like a British.   

Presidential spokesperson Edwin Lacierda said that representatives from prominent companies Convergys (Philippines) and Everything and Everywhere (Britain) contacted President Benigno Aquino III and presented the plan. The British company is looking to hire employees and establish foothold here in the country. “And since this is a British BPO, there’s also a need for the Filipinos to be trained in the British accent, which we are not familiar with,” he added.

Lacierda said, “They are very, very bullish. They are interested and they are very open to the situation here in the Philippines. We’re the No. 1 BPO destination in the world and they recognize our ability. They recognize we have the infrastructure to maintain our status as the No. 1 BPO destination in the world,”

In line with that, Trade Undersecretary Zenaida Maglaya said that Everything and Everywhere is working on a partnership with Convergys in hopes of penetrating Philippines’ BPO market.


Faster Growth Rate Predicted in PH Economy this Year

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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.


PH Seen to Dominate Global Healthcare Outsourcing this Year

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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.


DOLE, BPO, ICT Form Code of Good Practices

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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.


High Attrition Hampers PH BPO Growth

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PH BPO Workforce Faced with High Attrition Issues

Manpower problems will slow down the aggressive growth of the Philippine business process outsourcing (BPO) industry if high attrition rates continue, warns Maulik Parekh, president and CEO of SPi Global Solutions, a Philippines-based BPO firm.

Parekh explained that BPO companies could avert the labor shortage and reduce attrition by offering value-added services over cost savings to client-companies, improving working conditions for employees, and encouraging innovation through entrepreneurship. Around 84,800 employees resign from their BPO jobs yearly, the CEO pointed out.

If the BPO industry did not immediately address the attrition issue, Parekh said that “the industry will be short of 400,000 workers by 2016.”

Business Processing Association of the Philippines chairman Alfredo Ayala had earlier announced that the BPO industry would earn $25 billion by 2016, even with “zero investment” from the government. Parekh explained, however, that with the current exit rate of workers standing at 16 percent, the industry could only bring $18 billion, which he said was “not acceptable”.


RP BPO facing incentives challenges

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Business Mirror reports that the Philippine outsourcing industry is going to have to step up its incentives game if it is going to contend with emerging offshoring/outsourcing destinations. A global study by PricewaterhouseCoopers shows that governments of rival outsourcing destinations are already integrating policies and aggressive programs to attract a bigger share of outsourcing investments.

Board of Investments (BOI) managing head, Elmer Hernandez says current laws limit the incentives that the Philippines can offer to outsourcing buyers:

�We can only provide incentives in terms of what is provided in the law. As for the other support, the National Competitiveness Council is working on streamlining business requirements and government red tape.�

Outsourcing destinations like China, Eastern Europe, and Latin America have reportedly already integrated government policies and support programs to supplement their respective IT services sectors.

The Philippines offers income-tax holidays, duty-free importation of capital equipment, and a lower 5 percent tax on gross revenues. It currently has an incentives-rationalization bill pending in Congress.

PWC chairman, Judith Lopez, states that investors are looking for relaxed regulations, cheap labor and low rent in addition to tax breaks. Lopez believes that government support �will definitely tilt the balance on which countries will become the preferred outsourcing destinations�.



RP hosts e-Services Global Sourcing Conference

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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.


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Higher Salary Proposed for BPO Graveyard Shift Workers

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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.


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.




Gartner Says KPO Opens Opportunities for Indian BPOs

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There are good business opportunities for business process outsourcing (BPO) firms in India from the knowledge process outsourcing (KPO) industry, according to global IT research firm Gartner.

Good business opportunities from the KPO industry

"KPO service offerings is a good opportunity for Indian BPO providers to provide high value services and thereby enabling them to develop higher margin work," said Arup Roy, Gartner’s Principal Research Analyst. IT firms in India such as Infosys, TCS, Wipro, and Cognizant provide different KPO services. Based on a recent Gartner research paper, KPO services would involve “a combination of better processing methodology and an intellectually skilled workforce based predominantly in an offshore location”.

The multi-billion dollar KPO industry covers services on legal processes, marketing, as well as banking. In the future, it is estimated that the industry will be worth more than US$15 billion.



PH Economic Growth Seen to Go beyond Target

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At the Philippine Chamber of Commerce and Industry Forum, Roberto Juanchito T. Dispo, President at First Metro Investment Corp. said they predict a 7.5-8 percent growth for the Philippines' gross domestic product this year. The growth will likely be driven by the rehabilitation efforts for the regions hit by super typhoon Haiyan, and increased investments in the country.

The growth projection for this year is higher than the 7-7.5 percent forecast that was released before the 2013 GDP results went public last month. In 2013, the Philippine economy grew 7.2 percent, surpassing the 6-7 percent target.

Meanwhile, a 6.5-7.5 percent goal has been set for 2014.

Dispo added that P404 billion were allocated for the improvement of infrastructure, and P130 billion for rehabilitation efforts. The latter is expected to drive employment opportunities and investments in regions devastated by the typhoon. He also pointed out that the increased spending activity in the BPO and manufacturing industries will contribute to economic growth.
However, the executive noted that in order to achieve higher growth, several issues should be addressed. These include lack of research and development investments, as well as high power and unemployment rates.

Dan Steinbock, Research Director at the India China and American Institute, also had positive outlook for the growth of the Philippines, saying the 7.5 percent target is attainable. He said BPO, remittances, and government-driven investments will support the growth. However, the volatile environment of economies worldwide will remain a challenge.


Davao Aims to Tap Non-voice BPO Sector

by @ 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.



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.


Forrester Says IT Market in the US to Slow Down

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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.�


How Marketing Automation Changed Over Time?

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PH BPO Eyes More Jobs to Reach $25B this Year

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Aiming to post $25 billion in revenues and fuelled by emerging sectors this year, the country's information technology-business process management (IT-BPM) industry is eyeing more job opportunities to the economy. According to Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz, with the way things are going for the industry, it is possible to meet its revenue target.

This year, the voice-based sector expects to see 225,000 new jobs, while the healthcare outsourcing sector aims to add 100,000 employees to its workforce.

When it comes to employment, healthcare is considered as the fastest-growing subsector at 30 percent. It currently employs 87,000 and has $3 billion in annual revenues. This growth could also be attributed to the adoption of the International Code for Disease Standards in the US, which created a demand for coders.

Other sectors that drive growth to the IT-BPM industry are finance and accounting, software development, and legal outsourcing.

Last year, the industry had a 1.2 million-strong workforce, with the voice-based sector getting the lion's share or 69 percent of the industry and employing two-thirds of the total number of workers.

Baldoz said the country's young and educated workforce played a significant role in the growth of the industry, adding that the large pool of talent is one of the main reasons foreign investors decide to set up operations in the Philippines.


SEO Basics: 4 Best Practices that Haven’t Changed

by Galileo @ Galileo Tech Media

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PH Peso at its Strongest Level since 2008

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Bullish Philippine Peso at P41.615

The peso reached its highest value against the US dollar since 2008, which is P41.57, but before closing, it reached P41.615.

The appraisal was said to be brought about by talks regarding the implementation of the US government’s economic stimulus package from the Federal Reserve which, according to a Bloomberg report, will lessen financial strain and enable an increase in demand for assets in emerging markets.

Also, compared to the 130,000 average estimate in a Bloomberg survey and 141,000 jobs produced in July, the Labor Department said payrolls in the world’s largest economy increased by 96,000 in August. The three consecutive weeks wherein the peso retained a strong position are anticipated to raise inflation targets for 2012 and 2013, said Bangko Sentral ng Pilipinas (Philippine Central Bank). Economists predict that policy makers will retain low interest rates this week.

Jose Vistan, Head of Research at AB Capital Securities Ltd. in Manila, said foreign investments in equities are in fact strengthening the peso. He added that confidence in the country’s economy improved, with a high inclination of a rating upgrade.


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Davao Ranked as Top Outsourcing City

by @ News Feed

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.


Google Penguin 3.0 Algorithm – Facts, Disaster and Reliefs

by Mohnesh Kohli @ Mohnesh Blog

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Local BPO's need to train staff how to sell better

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PH Outsourcing Employees Need to Up their Game in Selling

Local outsourcing companies need to train their people better in the service and sales aspects of the business, an industry expert said.


Datacraft Asia general manager for converged communications and customer interactive solutions Nagi Kasinadhuni said Asian contact center agents are not trained enough in multi-functional services.


"In Asia, only 30.3% of agents are able to sell as well as service customers in a call so we see that there is difficulty on the part of agents to serve customers in multiple ways during a call. If customers ask about their billing problems, the agent can answer the question but cannot sell other higher-value services to customers," he said.


Asian contact centers, including those in the Philippines, are not equipped to sell higher-value service, with Kasinadhuni noting that the ability to serve customers in multiple ways creates customer loyalty and retention.


In a Datacraft study, Asia is shown to be leading the way in measuring customer satisfaction with a 78.6% rating compared with the 64.7% in other parts of the world.




BPO execs name tight labor market as top concern

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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.


PH BPO Industry Recognized at Unctad Event

by @ 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.


Gartner: Indian BPO Industry Likely to See Consolidation Wave

by @ News Feed

Global research firm Gartner said India's $12 billion BPO industry will likely see a consolidation wave very soon as a result of the fast changing dynamics of the industry.

"A consolidation wave in business process outsourcing (BPO) sector is likely (in the coming months). Since it is challenging to cope with changing dynamics, some existing entities may move to different lines of business," Senior Research Analyst Arup Roy said. He added that the process management sector, which is likely to flourish in the coming years and is expected to reach $1.7 billion in 2014, means good business for domestic BPO companies. However, Roy said the industry is currently facing certain issues such as increase in labor and IT costs.

In a Gartner report, it is stated that many Indian BPO firms consider expanding their service offerings in an effort to stay competitive and be able to provide end-to-end services.


Trustworthy Vendor Crucial in Outsourcing Cloud Computing

by @ News Feed

When it comes to outsourcing cloud computing technologies, the key is to find a service provider that firms can really trust.

Dan Raywood, online news editor for IT publication SC Magazine, said that firms need to make sure that their vendors can meet requirements on security. "For example, can you guarantee that the provider will match your storage security requirements, and when it comes to changing providers, can you guarantee that they won't retain any of your data - or lose it in months and years to come?"

Cloud computing is basically Internet-based computing that involves delivery of hosted services via the World Wide Web. It makes use of distant servers for storage and management of data.


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BPO Industry Remains Strongest Job Generator

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More companies are turning online for their recruitment, as evidenced by a 12% increase between May 2016 and 2017 in the latest results of Monster Employment Index (MEI), a monthly gauge of online job-posting activity, based on a real-time review of millions of employer-job opportunity data from career websites and online job listings nationwide. managing director for Asia Pacific and Middle East Sanjay Modi said that the Philippines is set to gain sustainable-employment growth in the year ahead. This is due to a highly stable macro economic environment supported by strong economic structures.

"This is evident from the latest BMI research results which said the Philippines’s business friendliness has made it favorable for investments, production activities and job creation," he said.

"In line with our MEI findings, the Philippine Statistic Authority’s latest data showed the unemployment rate has fallen when compared to the corresponding period from last year," he added.

The MEI results showed the fifth positive annual growth for the country since January of this year, with 106 total job listings last compared, which is higher than the recorded 95 in May last year.

Strongest online hiring growth in the IT-BPO industry

Web-based recruitment continues to enjoy an upward trend, with the internet technology (IT) and business process outsourcing (BPO) services industry gaining the strongest growth in online hiring.

There was a 30% increase in May 2017, with 138 employments were placed online compared to the 106 posted during the same period in 2016. This is considered as the highest growth industry year-on-year (YoY) increase in web recruitment in May.

According to the MEI's monitored occupation groups, customer-service talents are the most in-demand and most hired, at a 40% YoY growth in May this year from 107 to 150. It was a 10-percent increase from the 30% YoY growth in April of the same year.

It is followed by software, hardware, and telecom, from 106 to 117. Hospitality and travel, healthcare, engineering, real estate, and human resources and administration are recorded to have less occupational demands.

The BPO sector currently employs 1.2 million people and is anticipated to grow to 1.8 million within the next five years, as stated in the Information Technology-Business Process Association of the Philippines Roadmap 2022 report.

The second strongest sectors are logistics, freight, transportation, courier, shipping, import, and export, with an increase of 17% from 108 to 126.

Education has the lowest growth, with negative 3%, from 113 to 110.

On the other hand, the engineering and real-estate sector has a 6-percent decline from 88 to 83 YoY in online hiring in May.

"Being a shining spot in Asia’s economy, it is likely the country has come under the scrutiny of international players who can potentially and rapidly introduce new jobs in a short span of time. Even then, therein lies a need for business owners and employers alike to remain cautious and to always have sufficient plans to cushion potential headwinds," Modi said.

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.


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Lowest Activity since 2011 Seen in Indian Services Industry

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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.


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IT Leaders Go Beyond Cost Savings

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According to Arvato Chief Executive Officer Matthias Mierish, business owners are likely to outsource IT processes not only because of cost savings, especially since providers have greatly evolved over time.

IT executives are looking for solutions that offer flexibility, enabling them to adapt to changes in the market.

Mierish cited a survey participated by 100 senior outsourcing clients. He said businesses do not prioritize cost reduction as much as they used to. Furthermore, he explained that only 10 percent of the participants consider cost reduction as their top reason for outsourcing. On the other hand, 72 percent said they outsource for specific skills and expertise, and 66 percent said they outsource to aid expansion plans. Moreover, 74 percent of respondents mentioned they wanted to adhere to strict KPIs, while 69 percent believe outsourcing has a well-defined process.

Mierish also said the outsourcing sector accounts for over �207 billion of UK's economic output.

Meanwhile, a Deloitte study found that companies in UK are already learning the ropes of outsourcing and have become very cautious in awarding contracts.


Strong IT Outsourcing Activity Seen in the EMEA Region

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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.


Latest Investment Upgrade to Fuel PH Economy

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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.


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.


BPOs in Visayas Stop Operations during Typhoon Haiyan

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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.


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.


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

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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.


Now's the Perfect Time to Start a Business

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During the Geeks On A Beach (GOAB) tech and startup conference, owners and executives of IT companies said the rosy outlook of the Philippine economy and progressing IT sector set an ideal environment for startup businesses.  

According to Orlando Vea, Chief Wireless Officer and founder of Smart Communications, Inc., the country has the potential to become a global IT hub because of its booming startup scene. However, he said it needs to be supported well and maximized.

Earl Valencia, President at IdeaSpace, said the Philippines has the fundamentals suited for putting up a business. These are research, development, and funding. What has to be done is to get everyone educated and involved with the opportunities in the IT sector.

He added that support from large companies will greatly help to get things going. Support from other organizations such as the local government, private sectors, and academe will also fuel the startup scene.
Some of the key drivers of the startup community in the country are the English-speaking population, tech-savvy generation, and high Internet penetration, said Bowei Gai, founder of World Startup Report.


Outsourced Work not Included in India's Data Privacy Rules

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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.


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BPO Industry Update: Manila is World’s #2 Outsourcing Site

by Eve Sastre @ August 99, Inc.

Manila, Philippines has climbed to the number 2 spot in Tholons’ 2014 rankings of the world’s Top 100 Outsourcing Destinations. Third on the list in 2013, it has now outrun Mumbai, with Bangalore maintaining its top standing. Also in the [...]

The post BPO Industry Update: Manila is World’s #2 Outsourcing Site appeared first on August 99, Inc..

PH BPO Revenues Predicted to Reach $25B by 2016

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During the press conference "Strategies and Prospects of the IT/BPO Industry in the Philippines�, government officials and industry leaders stated that they strongly believe in the potential of the information technology-business process outsourcing (IT-BPO) industry. In fact, the industry is expected to provide 1.3 million jobs and contribute approximately $25 billion in revenues by 2016, even though an anti-outsourcing regulation is being petitioned in the US.

Department of Science and Technology-Information & Communication Technology Office (DOST-ICTO) Secretary Mario G. Montejo said there's a great possibility that the Philippines can lead worldwide, while Deputy Executive Director Alejandro P. Melchor III said the BPO industry is resilient against challenges in the economy - whether it is recession or politics. Furthermore, he highlighted that the industry grew 26% in 2008 and 17% in 2009, even during the global economic downturn.

In 2011, the industry was valued at $10.9 billion and employed 640,000.

Business Processing Association of the Philippines (BPAP) Chairman Fred Ayala is optimistic that the BPO industry will reach its goals this year. He added that it is important to stay competitive since there are other destinations that are poised to make a mark in the outsourcing arena.

The Philippines is already the top provider for voice-based processes, but it is believed that tapping other mainstream niches such as healthcare information management, finance and accounting, human resources, and creative process will greatly contribute to the growth of the industry.

Meanwhile, programs such as the ICT Workforce Capability Development Program, Next Wave Cities Program, and the Domestic ICT Industry Development Program were created by DOST-ICTO to address talent issues and further improve the industry.


BPAP Now Known as IBPAP

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Outsourcing industry body Business Processing Association of the Philippines or BPAP formally changed its name to Information Technology and Business Process Association of the Philippines or IBPAP to effectively redefine the coverage of the Philippine outsourcing industry.


According to IBPAP outgoing President and CEO Benedict Hernandez, the rebranding signifies the association’s dedication to the entire outsourcing industry of the Philippines, and that the information technology segment is an integral part it. The name change also aims to characterize the organization in the global IT market.

Moreover, he said it’s a strategy that can help further promote the Philippines as an ideal destination for both business process outsourcing and information technology outsourcing.


PH Govt Aims to Attract 10M Foreign Visitors in 2013

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In hopes of making tourism a substantial source of foreign exchange, along with remittances and business process outsourcing (BPO) investments, the Philippine government is eyeing to attract 10 million foreign visitors per year.

Finance Secretary and Bangko Sentral ng Pilipinas Chairman Cesar Purisima said the Aquino admin is seeking to intensify the local reserves of foreign exchange from the $80 billion posted by tourism-related activities last year. Moreover, the current administration wishes that by 2016, which incidentally is the end of the president's term, tourist arrivals should reach 10 million.

2012 witnessed the highest number of tourist arrivals at 4.27 million. Even if it's nine percent higher than 2011's 3.92 million arrivals, it fell short of what the government had previously projected. Earnings from the tourism sector increased 17 percent year-on-year to $3.7 billion. But it is almost nothing compared to the investments in the BPO sector and remittances.


PH Exports Break $50B Mark

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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.


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.


PH BPO Firms to Create 150,000 Healthcare Jobs this Year

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More Jobs in the Philippine Healthcare Outsourcing Sector

As the requirements of the healthcare segment in the US continue to expand, business process outsourcing (BPO) companies are expected to create 150,000 job opportunities in the Philippines this year.

According to the Information Technology and Business Process Association of the Philippines (ITBPAP), the rising demand for skilled healthcare professionals is expected among US firms to address the need for special type of healthcare support.

Jose Mari Mercado, ITBPAP President and Chief Executive, said the US has turned to the Philippines for additional support as the US migrates to the International Code for Diseases 10 from the current ICD 9.

He explained that it is a very complex and sophisticated process that will require Filipino nurses to get US nursing certification to be qualified for the job. Moreover, he said the Philippines has the supply of nurses, but needs to build competency. As for other healthcare professionals, they would need to accomplish several weeks of additional training, assessment, and certification to qualify.  

ICD 10 is much different from ICD 9 as it will require 10 digits coding system for disease identification and processing. This process will of course need thousands of encoders.

ITBPAP predicts that total BPO revenues will reach $21.9 billion in 2015 and $25 billion in 2016 - from $18.9 billion in 2014.

As for the revenues of the entire BPO sector, the voice segment still leads with revenues of $11 billion in 2014, while healthcare contributed $3 billion and employed 87,000 people last year.

Mercado pointed out that the healthcare segment is a great source of opportunity for the Philippine outsourcing industry, and the country is expected to develop and catch up in terms of competency in the near future.


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5.5% Growth Seen for PH in the Next 5 Years

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Rajiv Biswas, Chief Economist for Asia-Pacific at research and consultancy agency HIS said the Philippines could grow at an average rate of 5.5 percent annually from 2016 to 2020. IHS has projected that total gross domestic product (GDP) per person in the Philippines will increase from almost $3,000 in 2015 to $6,000 by 2024.

This increase in per capita GDP positions the country as one of the largest consumer markets in Southeast Asia. Biswas also said this would make the country a destination of choice for foreign investments, particularly to its manufacturing and services industries.

Last year, the Philippines posted a 6.1-percent growth - lower than the 7.2 percent posted in 2013. For this year, the government is eyeing to reach a 7-8 percent growth until 2016.

The chief economist also noted that the IT- business process outsourcing sector and continuous inflow of remittances from Filipinos working abroad remain as the key growth drivers of the country. Furthermore, he noted that the attractiveness of the Philippines as a BPO hub has long been reinforced by the large pool of skilled, English-speaking workforce. He also said export revenues from the IT-BPO sector had increased twice over to $18 billion from 2008 to 2014 and the number of workers employed by the sector has surpassed the one-million mark. The firm also expects the IT-BPO industry to reach 1.3 million employees by 2016.

The bullish IT-BPO sector is also said to be fuelling development in several cities such as Manila and Cebu - both ranked as among the world’s leading outsourcing hubs.


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.


Property Consultancy Firm Sees Clark, Pampanga as next BGC

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Clark may well become the next Bonifacio Global City, according to property consultancy agency CBRE. This is because of the overcrowded offices in the central business districts in Metro Manila. Business process outsourcing firms end up seeking other leasing options for their operations.

In a briefing, Rick Santos, founder of CBRE Philippines, said Clark is a prime choice for BPOs because of the quality of its talent pool, economic incentives, and rapidly-progressing infrastructure.  

Clark currently contributes marginally to the bullish outsourcing market of the Philippines, mainly because it lacks the basic requirements of BPO companies. Jan Custodio, CBRE Director of global research and consultancy, cited that BPO locators in Clark are seen operating in old buildings and warehouses that have gone through renovations to fit the requirements.

Clark can now be easily accessed through the Clark International Airport and better road systems like the North Luzon Expressway and Tarlac-Pangasinan-La Union Expressway.

Custodio said the retraction of incentives by the Philippine Economic Zone Authority (PEZA) is likewise expected to push developers to build offices outside the congested National Capital Region. He added that although Clark only houses smaller BPOs, the developments will help the area land bigger clients.


More LATAM Business Executives Outsource Back Office Processes

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Back Office Services for Latin American Firms

Data from the International Business Report (IBR) created by Grant Thornton found that two in five business leaders across the globe either have already outsourced their back office work or are strongly considering it.

The report also indicated that outsourcing has become a popular business tool in Latin America. In fact, over 50 percent of business executives are outsourcing their back office processes. The report predicts that even with varying views on outsourcing, it will remain as a key business tool and will gain more traction in the coming years.

According to Samantha George, head of outsourcing at Grant Thornton UK, since three-fifths of the market is not yet saturated and familiar with outsourcing, it could present more opportunities for service providers.

Business entities are just realizing that apart from significant cost savings, outsourcing also helps streamline operations through freeing up budget tied to back office processes. However, 44 percent of businesses that took part in the survey are keeping an eye out for challenges like loss of control over the operation and the process itself.

George was quick to clarify that this rarely happens, saying outsourcing can even help senior leaders see the bigger picture and compare the performance of their outsourced process with their regular strategy.

There are still misconceptions about outsourcing. These include the view that it’s expensive and that subcontracting processes elsewhere is risky.

Some of the most outsourced back office processes are tax (49%), IT (46%), and HR and payroll (36%).

Nowadays, outsourcing has become available to various processes and industries. Providers, on the other hand, have come up with flexible and scalable solutions to fit the requirements of their clients.


Employers, Labor Groups Keen on Amending Labor Code

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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.


Survey Says CIOs Optimistic about 2011 Growth

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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.


Poor Service Remains a Concern with Outsourcing Vendors

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Based on the 2011 IDG Enterprise Outsourcing and Service Providers online survey answered by 1,176 IT leaders, substandard service quality is the main concern of most CIOs, even though 44 percent of the respondents said service level agreements (SLAs) are now stricter compared to SLAs three years ago. Other risks mentioned were security issues, loss of internal IT knowledge, and hidden fees.

Barr Snyderwine, CIO of a special events company called Hargrove, had an outsourcing strategy which started out smooth - low costs and decent service, but when it comes to IT outsourcing, the situation was different. He said that if there is a server problem, the provider will send someone over, but that still takes some time. �If you're buying a box or replacing a drive, SLAs work great. But when you're outsourcing services, it's still all about people. Governance is key," said Snyderwine.

More than 25 percent of survey participants rated their service delivery management and measurement practices as very effective, while 43 percent said they were average, and 12 percent said they weren't effective at all. "The mentality all too often is, I have a contract in place, we've told them what we want, now they can do it all for us," says Snyderwine.

Apparently, quality issues will not hinder outsourcing operations. As a matter of fact, 36 percent of IT leaders plan to add third party IT services in the coming year. The top reasons are: lack of skills and know-how (52 percent), to lessen costs (50 percent), and supply different needs of the company (44 percent).


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.

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.


PH Consumers Ranked 2nd Most Optimistic Globally

by @ News Feed

According to Nielsen’s recent Global Survey, the Philippines’ Consumer Confidence Index increased by five points to 120, putting it together with Indonesia at second place. The survey, which covered the fourth quarter of 2014, states that confidence levels above the baseline of 100 indicate optimism.

The research company added that the growth in consumer optimism among Filipinos is brought on by the growing middle class and the robust business process outsourcing (BPO) sector.

 Stuart Jamieson, Managing Director of Nielsen Philippines, said the upshot of consumer optimism is a result of the ceaseless growth of the BPO sector which is one of the country’s bright spots. In line with that, unemployment levels are at an all-time low in 10 years as a result of a growing economy. The rapidly growing consumer class is composed of people who spend on technology, real estate, consumer and retail goods, and leisure trips.

The Philippines’ five-percent growth in confidence level is one of the largest quarterly increases globally.

India took the first spot with an index score of 129, while Thailand placed fifth with 111.


Latest Report in the Healthcare IT Outsourcing Market

by @ 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.


TPI: Outsourcing Spending Increases, Contract Values Decrease

by @ News Feed

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. 

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

by @ News Feed

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.


Effective Outsourcing Hacks When You’re on a Tight Budget

by Trizhia @ Outsource Philippines

While it’s true that “you need to spend money to make money,” startup and small businesses can still enjoy the benefits of offshoring without having ... Read More

The post Effective Outsourcing Hacks When You’re on a Tight Budget appeared first on Outsource Philippines.

PH BPO Industry Predicts 2011 Revenues will Reach US$11bn

by @ 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.


Talent Shortage Could Stunt PH BPO Growth

by @ News Feed

PH BPO Roadmap Indicates Talent Shortage could Stunt Growth

The recent study commissioned by the Business Processing Association of the Philippines (BPAP) “IT-BPO Road Map 2011-2016” indicates that the country’s business process outsourcing (BPO) industry is capable of reaching $25-billion, employing 1.3 million Filipinos by 2016. This will be achieved only if the talent gap will be addressed.

BPAP President and CEO Benedict Hernandez, along with several analysts, said the country’s BPO industry can grow two-fold in the next five years. Moreover, the Philippines has surpassed India for voice-based services, and is catching up in key high-end areas as well. Hernandez noted that the number of current candidates now may not be enough come 2016 and that the sector should look into the matter closely, as this can affect the industry’s capability to reach the target.

The industry is growing rapidly and further developments are anticipated to rely on the country’s capacity to produce employable candidates. It directly employed 638,000 last year and was able to provide traditional to high-value services to international companies from delivery centers across the country.

BPAP is said to be working on several projects and is partnering with key government organizations, private institutions, and other companies to address the challenges. Their goal is to improve the talent line-up by tapping new talent pools, including near-hires, and developing their skills to increase the volume of credible applicants. Hernandez added that some of the candidates fail to make the cut in the BPO sector because they fall short on certain qualifications and expertise.


Mobile Apps to Stay Competitive Seen as Outsourcing Trend

by @ News Feed

As part of the efforts to stay competitive, enterprise customers are expressing interest in using mobile business applications, a trend that's gaining attention in outsourcing discussions.

"With the advent of PDAs and mobile devices, people are seeing that this is yet another way to get ahead of their competitors," said Sury Kant, president of New York-based Tata Consultancy Services (TCS) Ltd. North America.

With mobile business apps, companies can take their enterprise resource planning (ERP) systems to smartphones and people can get the information they need and make decisions anytime, anywhere.

Meanwhile, Steve Hall, a partner and managing director at Woodlands, Texas-based global sourcing advisory firm TPI Inc., said a major concern would be finding a provider that has adequate understanding of a company's enterprise data, requiring deep domain and business knowledge. He added that while using mobile business apps is a strong trend, it remains under the radar �because of the overload of press on cloud computing these days."


Study Shows Sectors Spending More on IT Outsourcing

by @ 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.


Web Development Outsourcing: Filling the Knowledge Gap & Growing Your Business

by 365outsource_admin @

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,…

The post Web Development Outsourcing: Filling the Knowledge Gap & Growing Your Business appeared first on

Dutch outsourcing facility opened in Cebu

by @ News Feed

Lighthouse Holdings B.V. Recently began outsourcing operations in Cebu. The new facilities, located at the Mactan Export Zone (MEZ-2), is the second outsourcing facility for Lighthouse Holdings after opening a center in China. The Netherlands-based company has reportedly invested upwards of 250,000 Euro since being established in Cebu, with the company stating they expect to invest over a million Euro in a year.

Focus on software development

The new facility will be focusing on software development as part of the company's pursuit of corporate Intellectual Property services. CEO Geert Lagemaat claimed that the Philippines was chosen as an outsourcing destination for the availability of quality software developers and impressive government support:

“We’re here because we need a qualified team. So far we have found very good people. Culturally, it’s much easier to operate here [compared to people in China].”

Cebu's software outsourcing sector has averaged revenues of $60 million a year -  a number that is expected to double this year.


TPI Reveals New IT Deals to Come From Emerging Markets

by @ News Feed

According to a research done by renowned outsourcing consultancy firm TPI, large IT contracts this year are anticipated to come from emerging markets and not on mature ones like the US and Europe.

Global companies compete for new IT deals

Managing director and partner at TPI, Sid Pai, said even if India will benefit from the trend, it is unlikely that it will resound to local software providers. Global companies operating in India like IBM or Accenture are also competing for these deals.

Moreover, MindTree CFO Rostow Ravanan predicts contract renewals this year will reach 300. Ravanan also believes that even if small and large players are up in arms in gaining IT deals, Indian players will be able to win at least 80% of the contracts. The game changer he says would be the price points of global versus local players. On the other hand, an analyst predicts that HCL will land most of the IT deals since the firm is willing to change its price points.


MicroSourcing Passed the ISO Certification Audit

by @ News Feed

MicroSourcing Passed SGS ISO Certification

After a rigorous three-day audit of MicroSourcing by SGS, one of the world’s leading certification companies, our company passed the standards set out by the International Organization for Standardization for an integrated Quality (ISO 9001:2008) and Information Security (ISO/IEC 27001:2005) Management System (QISMS).

With these standards, we can promise our clients an even higher quality of our services. By documenting our processes, we can now provide customers with extensive data, including quality objectives that demonstrate process effectiveness. We undergo periodic internal audits to evaluate our processes, focusing on continual improvement in terms of quality and efficiency.

MicroSourcing will also meet the growing demand from our clients for a mature security program. Our clients, large and small, have felt increasing pressure from their customers and regulators to abide by the ever changing legal and regulatory environment. Our risk-based information security management shares a common basis with many new legal requirements. Changes to our integrated QISMS can be made in an orderly, incremental fashion instead of re-engineering, resulting to shorter turnaround times.

The ISO certification by an external party validates our integrated QISMS and it will give our clients assurance that we meet the highest standards for quality and information security.
This is a huge milestone for MicroSourcing as it strives to deliver quality and assurance to clients all over the world. Congratulations to everybody in achieving yet another milestone!

Clark Freeport opens more than 3,000 jobs

by @ 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.


No Slowing Down for PH Real Estate

by @ News Feed

For the coming year, the local real estate sector is seen to remain strong, according to CBRE Philippines, a real estate consultancy company.

Rick Santos, the organization's chairman said this is the best break the industry has seen for the past two decades, with the constant growth and success. Moreover, he said there's no problem in finding residential and leisure property buyers. The challenge, according to him, is to maintain the industry's success.

Meanwhile, the vast growth of the business process outsourcing (BPO) industry of the Philippines, which is similar to India's BPO success during the early 90s, largely contributes to the Philippines' advantageous position in Southeast Asia for the office and commercial industry.

Santos also noted that apart from the country being the global leader for voice processes and second for non-voice services, other areas can be reinforced for the industry's growth. These include software and web graphics development, information technology and engineering services, as well as healthcare BPO. A growth rate of 10-15 percent is also predicted for the sector in 2016.

Some of the factors that make the country a feasible outsourcing provider in Asia include the large pool of skilled workforce, affordable leasing rates for properties, among others.


IT Budgets in Asia-Pacific Expected to Grow in 2012

by @ 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.


Driving growth in ecommerce via collaborative outsourcing

by Bastiaan Mawhin @ SHORE Solutions Inc.

The Australia and New Zealand e-commerce markets have increasingly been under international focus for showing nothing but positive momentum. This is credited to a variety of factors, including an almost unprecedented consumer adoption of online shopping and associated technologies. In Australia alone, the value of the ecommerce market was estimated to have been around AU$27 … Continue reading Driving growth in ecommerce via collaborative outsourcing

The post Driving growth in ecommerce via collaborative outsourcing appeared first on SHORE Solutions Inc..

Latest Data in Healthcare IT Outsourcing Released

by @ News Feed

The newest addition to’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.


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

by @ News Feed

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.


BPO Employees Urged to Consider High Value Processes

by @ 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.


Debt Watcher Raises Growth Forecast for PH

by @ News Feed

Fitch Ratings’ report released last April 2 covered its March 17 rating and growth prediction for the gross domestic product (GDP) of the Philippines. The debt watcher anticipates that the country’s GDP will expand to 6.3% this year, from 6.1% in 2014. It is also predicted that it will reach 6.2% next year. The country currently has a “BBB-“ investment grade and a “stable” outlook from Fitch.

The latest forecasts for 2015 and 2016 are higher than the predictions released in January wherein growth was set at 6.2 percent and 6.0 percent, respectively. The report also revealed that the steady inflow of remittances from overseas Filipino workers and the bullish business process outsourcing sector will continue to propel growth.

However, Fitch’s growth predictions are lower than the 7-8% growth targets set by the government. Last year, the economy grew by 6.1% - marginally lower compared to the government’s 6.5-7.5% target. Issues that strained the growth last year include slow agricultural sector, and lower-than-expected and sometimes dwindling state spending.

Fitch said sustained and strong growth in the country will lessen the income and development differences with its ‘BBB’ range peers without causing imbalances, and it would be considered positive for ratings.


AdWords Mobile PPC Performance: How it Stacks Up Against Desktop

by jon @ Outsource Force

In the online world, mobile technology is undoubtedly taking up everyone’s attention as mobile users are increasing day after day. Google, for instance, has been rolling out updates for AdWords with focus on mobile strategy. But what happens if mobile and tablet campaigns are required to be included with desktop? What impact would it have […]

The post AdWords Mobile PPC Performance: How it Stacks Up Against Desktop appeared first on Outsource Force.

Health Insurers Seen to Outsource more IT Work

by @ News Feed

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.


Obama Addresses Outsourcing Concerns in India

by @ News Feed

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.


KPO Firm Seeks Filipino Nurses to Work as Medical Butlers

by @ News Feed

Life Stage Communication, a subsidiary of Fly Free for Health Group of Companies in the Philippines, is looking for 100 registered Filipino nurses who will work as medical butlers. This is an opportunity for nursing graduates who are thinking about finding work overseas.

According to Wei Siang Yu, founder and CEO, the company will invest $2-4 million to set up two training facilities and a contact center in the country to address the health needs of patients abroad. �Instead of nurses leaving the Philippines to work in a hospital outside the country, Filipino nurses can now stay here and still tap the global, borderless healthcare and medical tourism market.�

He added that Filipino health professionals are suitable for medical outsourcing because of their English communication skills, good educational background, and hospitality.


Southeast Asian RPO Market to Grow at 19.3% CAGR

by @ News Feed

US-based market intelligence company Transparency Market Research recently shared the report “Recruitment Process Outsourcing (RPO) (On-demand RPO and End-to-end RPO) Market - Southeast Asia Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020”, which revealed that the Southeast Asia’s recruitment process outsourcing market is growing at a compound annual growth rate (CAGR) of 19.3 percent from 2014 to 2020. Back in 2013, the RPO market’s value was US$45.6 million. If the report’s projected CAGR sustains its momentum, its value could go up to US$154.7 million in 2020.

The report also noted that back in 2013, the Rest of Southeast Asia (RoSEA) accounted for majority of the activity and growth in the recruitment process outsourcing market.

Based on the report, the key market driver in the RPO segment is Indonesia with a 19.9 percent CAGR for the period of 2014 to 2020. As for the recruitment process outsourcing market of Southeast Asia, growth was propelled by high level of growth of the industrial sector, especially in Indonesia. In fact, demand is seen in several RPO segments such as pharmaceuticals, healthcare, IT and ITes, and manufacturing.

RoSEA also accounted for 78% of the Southeast Asian RPO market in 2013.

The report divided the Southeast Asian RPO market based on end-use industries, engagement type, and geographical regions. On-demand RPO had the largest market share in 2013 as it was the most cost-efficient for end-to-end solutions.


UK Firms Prefer to Outsource Jobs to India over China

by @ News Feed

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.


UK Outsourcing Activity Posts 35% Growth this Year

by @ News Feed

UK's Scarce Manpower Drives Outsourcing Growth

In a survey of 2200 small UK firms conducted by, 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, 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. 


Data Privacy Act Seeking Aquino's Approval

by @ 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.


Recruitment Remains a Challenge for PH BPO Growth

by @ News Feed

According to the president for the Asia-Pacific arm of business process outsourcing (BPO) firm Teleperformance, David Rizzo, the Philippines can now accommodate more non-voice outsourcing firms but the local BPO industry should patch recruitment loopholes to maximize opportunities.
Rizzo cited the lack of qualified candidates or those who have the skill set needed by the industry as the main hurdle for the outsourcing industry. He added that retention programs must be assessed so that growth will be more achievable. There is also a need to look into issues when it comes to working at night since it is a reason employees resign.

Rizzo said the country can provide non-traditional services, and this would mean a larger global outsourcing market for the Philippine BPO industry. Research firm Everest Group predicts the global outsourcing and offshoring industry will reach $280 billion this year.

The Philippines had surpassed India in terms of voice-based operations last year. Everest Group assessed that the country's call center industry earned $7.38 billion last year, outdoing India's $7 billion. The Philippines also has more employees in the contact center segment compared to India. However, India remains the number one BPO destination with revenues amounting to $15 billion, while the Philippines only earned $9 billion.


Top SEO blogs you should follow

by Hester @ Streametrics

As pointed out, one of the most critical parts in increasing traffic for your website is to commit. Commitment involves research, study and learning. Being aware of the trends and the methods use by others is a key element for your “know-how”. Once established, you can then proceed in building and maintaining high percentage traffic for […]

The post Top SEO blogs you should follow appeared first on Streametrics.

Moody's Anticipates Improved Public Spending in PH

by @ News Feed

Research, risk analysis, and credit rating agency Moody’s Investor Service stated that they expect the Philippine government to increase spending in the last few months of 2015 to boost economic growth.

Moody’s revealed in their report that the Philippines’ gross domestic product could grow below the previous projection of 6.7 percent to just 5.7 percent this year. The agency explained that poor public spending and slow export growth affected the economic output of this year’s first half.

Another factor indicated in the report is the effects of the El Niño to the agricultural production of the country - which further weighed down on the 5.7 percent GDP forecast. Still, Moody’s is expecting that infrastructure development spurred by the public-private partnership program and improved fiscal disbursements will pick up in the second half of the year.

The debt watcher was also seen slashing its economic growth projection for the Philippines for this year and 2016 due to external headwinds such as the weaker demand in China.

Weak global demand and poor public spending are said to have contributed to the slower economic growth of the country - from the 6.4 percent last year to 5.3 percent this year.

The Philippines is eyeing a GDP growth of 7-8 percent this year, but according to Socioeconomic Planning Secretary Arsenio Balisacan, the country could only achieve growth between six and 6.5 percent this year.

World Bank was also seen cutting its economic growth forecasts for the Philippines for this year and the next two years from its initial estimate of 6.5 percent to just 5.8 percent, also prompted by weak government spending.


Malaysia's Outsourcing Revenues to Grow 20-25%

by @ News Feed

Things are looking up for the outsourcing industry of Malaysia. From about $1.1 billion reported in 2009, David Wong Nan Fay, Chairman of Outsourcing Malaysia, said revenues are expected to increase by 20-25 percent this year.

Contributions will be coming from retail, healthcare, financial and insurance, oil and gas, supply chain services, and engineering sectors, as well as business process outsourcing (BPO) and information technology (IT) processing.

However, a research report shows the country still has to work on other sectors that are lagging behind. "For instance, in the BPO segment, we are still on the mild-side as we have just created a foothold in outsourcing such as for human resources and customer care." This is in contrast to the multiple outsourcing segment which is already thriving in the Philippines.


BPO Predicted to Outshine OFW Remittances by 2016

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Senator Edgardo Angara, along with the Business Processing Association of the Philippines (BPAP), predicted that by 2016, the business process outsourcing (BPO) industry can outdo the remittances from overseas Filipino workers.

At present, the BPO industry employs (more or less) 500,000 Filipinos and is valued at US$9 billion. According to BPAP, it can grow from US$18.8 billion in 2010 up to US$26 billion by 2016, employing 1.3 million people.

 Senator Angara said during a recent hearing of the Senate Committee on Science and Technology, the BPO industry is in dire need of the government's support in terms of data security and establishment of an ICT-dedicated government entity to regulate operations. Angara said this could be achieved by establishing a government division called Department of Information and Communication Technology (DICT), and implementing data privacy laws.

According to Angara, the creation of DICT under the Medium Term Philippine Development Plan is also supported by The National Economic and Development Authority (NEDA).


Google Disavow Tool: Is It Still Useful for Off-Page #SEO?

by Tommy Landry @ Return On Now

The following post is copyrighted by Return On Now - Austin Internet Marketing Consulting Services

Anyone who understands Google’s stance on off-page SEO should be familiar with the Google Disavow Tool. The Disavow Tool was originally offered to help webmasters and SEO consultants provide feedback directly to Google about link cleanup efforts. Why were we all cleaning up our links you ask? Surely you’ve heard of Google Penguin. If you…

The post Google Disavow Tool: Is It Still Useful for Off-Page #SEO? appeared first on Return On Now.

PH BPO Continues to Grow

by @ News Feed

Philippine BPO Sector Sustains Growth Momentum

According to the report released by the Information Technology and Business Process Association of the Philippines (IBPAP), the Business Process Outsourcing (BPO) sector of the Philippines remains strong and was seen surpassing set targets last year. Moreover, revenues increased 18 percent from $11 billion in 2011 to $13 billion in 2012. Jobs also grew 21.8 percent from 640,000 (2011) to 780,000 (2012), and is projected to reach 926,000.

The 2016 BPO Roadmap created by the local administration aims to reach $25 billion in revenues and 1.3 million jobs. With the prediction of reaching $14.7 billion in revenues and 816,000 jobs by 2016, the call center sector is anticipated to lead the entire BPO industry.

Meanwhile, banking, financial, and healthcare sectors are the key segments seen contributing to the robust BPO growth. Last year’s year-end revenues from the healthcare segment amounted to $430 million and the large medically-skilled and qualified workforce is said to be a huge factor for its growth. Some of the jobs in the healthcare outsourcing segment are data management, medical transcription, medical coding and billing, and pharmaceutical benefit management.


Frost & Sullivan Predicts Dev't for Russian Call Centre Outsourcing

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Because of the increased demand for broadband services in Russia, the contact centre outsourcing market focused more on customer care services. This strategy became a factor for the said sector to recover, and develop over the past couple of years.

According to Iwona Petruczynik, a Research Analyst for Frost & Sullivan ICT group, “There is an increasing trend toward the use and deployment of interactive voice response (IVR) and automated service technologies," and adds “It has proven to be a very effective way to reduce cost and enable outsourcing companies to provide more services with the same number of agents.”

On the other hand, majority of consumers are still not comfortable with the new technologies that are being used for customer support operations.  But, according to the observations of Frost & Sullivan, IVR is becoming more and more recognized by technology-literate consumers.  

Concerns in the Russian contact centre outsourcing market

The local Russian call centre (customer support) market is also worried that knowledgeable and qualified employees will be scarce in the upcoming years. Petruczynik brought light to the situation. "Market participants have concerns that there will not be enough young employees to fill in-house call centres and a number of companies will be forced to outsource their services. However, this situation may create a conundrum, as the lack of agent talent could result in in-house centres competing with outsourcers for employees."

Another concern is the deficiency or lack of tools needed for the contact centre industry in Russia to grow substantially. The Russian Government strategized and declared a new policy that supports funding and developing contact centre operation sites in Novosibirsk, Nizhny Novgorod, St. Petersburg, and Dubna.

Now, BPO companies in Russia are working on improving their infrastructure for multimedia contacts, so that they will be able to accommodate the high demands in customer support. But, even with the new technological advancements, “human” and voice-based services still lead the outsourcing industry.


Malaysian Firms Turn to RPO amidst Talent Shortage

by @ 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.


RP BPO Urged to Penetrate European Outsourcing Market

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PH urged to tap into European outsourcing market

The European Chamber of Commerce and Industry in the Philippines (ECCP) urged BPO stakeholders in the country to tap and maximize the European outsourcing market.

According to ECCP Executive Vice President Henry Schumacher, the Philippines can have a bigger piece of the market compared to what India currently has. “Since Europe is also aggressively looking at opportunities from emerging countries in the East, now is the time for the entire Philippines to explore Europe since it is also the largest business process outsourcing market.”

Web design, IT, human resources, and back-office functions are some of the processes that can be outsourced to the Philippines. To take advantage of the European outsourcing market, Schumacher said the Philippines must initiate campaigns that will enable Filipino workers to have a better understanding of the European culture. He added that branding and highlighting what Filipinos can do will play a big role to help the country in tapping the foreign market.


PH BPO Industry Attracts Top Financial Firms

by @ News Feed

Global Financial Firms Heading to the Philippines for BPO

The Philippine business process outsourcing (BPO) sector is getting ready to deal with the global demands of multinational financial firms that have flocked to the country, says the Business Processing Association of the Philippines (BPAP), the country’s private association of BPO service providers.

"Based on the 2010 report of Everest Consultancy Institute, the Philippines generated revenues of $5.7 billion in the call center or voice sector compared with India, which had only $5.58 billion revenues last year," says Martin Antonio Crisostomo, BPAP executive director for external affairs.

Crisostomo comments that the country’s BPO companies are already providing services to global financial firms JP Morgan and Deutsche Bank. JP Morgan is currently employing 10,000 BPO workers from a pioneering staff of 200, the BPAP officer explains.

The exponential growth of the BPO industry in the country has even attracted competing Indian BPO firms, opines Crisostomo, citing Indian companies Tata Group and Gen Pact as examples of multinational, Indian-owned companies that have either transferred or started up operations here.

The BPAP officer says the association expects the non-voice sector of the BPO industry to improve revenues this year, especially in the animation and game development areas. "There is a film being made by DreamWorks animation and some portions of PlayStation 3 which are being done by Filipinos here," says Crisostomo.

At present, the Philippine BPO industry employs around 530,000 workers, according to the BPAP.


Cebu Poised for Economic Rebound this Year

by @ News Feed

Economic experts are confident that this year will be a good one for the economy of Cebu, with business process outsourcing (BPO), tourism, and export as primary economic drivers. This is despite the impact of the global economic downturn that the province will still face in the next two years.

�We are poised and prepared for the economic rebound in 2010. Our export sector has showed positive developments towards last quarters of 2009. Even in the midst of global recession Cebu's economic performance continued to be robust and sound,� said National Economic and Development Authority (NEDA-7) regional director Marlene Rodriguez.

This year, it is expected that Cebu will attract more BPO investors. According to Joel Mari S. Yu, Managing Director of Cebu Investment and Promotions Center (CIPC), the province is starting to get inquiries for voice-based and non-voice BPO work.


Asian Companies Considering R&D Outsourcing

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Companies based in Asia are seriously considering outsourced services for their core competencies in an effort to streamline their operations, reports the Economist Corporate Network (ECN). Industry watchers are warning, though, that these companies should carry out intensive due diligence before making any decision.

The ECN study covers more than 130 companies among different verticals. Companies belonging to the IT sector comprise about 2.4 percent of those surveyed.

Although the report indicated that companies were least likely to outsource product development and product design, companies studying the advantages of R&D outsourcing rival those who are also considering the outsourcing of human resource administration, finance and accounting.

ECN provides members with in-depth studies on business and economic trends. Study author Ross O'Brien, director of ECN Hong Kong, says that most of their large multinational clients �deploy in-region R&D to help them create a virtuous cycle.�

�[A] locally-developed product, which responds to application needs, form factors and price-points of Asian markets, is increasingly needed as tech companies depend on sales in Asia to shore up their global growth objectives,� O'Brien explains.

Rolf Jester, Gartner's Distinguished Analyst and Asia-Pacific vice president for IT services, comments that outsourcing R&D may not be for any company. �Each company competes on different characteristics. R&D and the ability to truly design innovative things may or may not be one of those characteristics, and each company needs to make that decision,� opines Jester.


Sky News Australia Interview

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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.

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Debt Watcher Retains Investment Grade Rating for PH

by @ News Feed

As the Philippines carries on as having strong economic growth, sound political environment, and improving finances, credit rating agency Fitch Ratings has recently affirmed its outlook and investment grade score for the country.

Fitch Ratings gave the Philippines a BBB- investment grade score last March 2013, along with a stable outlook.  

For this year, their decision to retain the investment grade and outlook is driven by the positive performance of the country, which includes improved government spending, stable consumer prices, and resilience against external volatilities.

Some of the factors that were seen to contribute to the continuous growth of the Philippine economy are the consistent flow of remittances, robust business process outsourcing (BPO) sector, and low interest rates.

Meanwhile, Fitch noted that challenges such as asset price bubbles and excessive inflation will be minimal. The country's external finances helped protect it against the financial market volatility from the decrease in the US Federal Reserve's stimulus program.

The current account surpluses of the Philippines likewise cushioned external impacts, resulting to a 7% GDP for its net external creditor position in 2013. Other counterparts received a -12 in the BBB range.


Acknowledge the potential of Guest Posting with the Privilege of SEOs

by Anirban Das @ Zebra Techies Solution

Managing the SEO factors of a website requires competent knowledge. Some individuals do not consider the guest posting as an effective strategy for content marketing. This might be a cause of less significant accessibility of enthusiast readers to reach their websites. The idea of guest posting is to provide necessary information to the readers that…

High-value Opportunity Awaits PH BPO Sector

by @ News Feed

A new process is expected to go beyond the growth rate of the information technology - business process outsourcing (IT-BPO) sector this year. Data analytics is a new higher level of outsourcing service that clients are pressing for. It is also where the IT-BPO industry of the Philippines can earn $7 billion.

Opportunities in the BPO sector

There are many uses for data analytics. Information is gathered, analyzed, and are converted into easy-to-process figures that can help organizations perform research, develop new products, monitor consumer behavior, among others. For instance, telecommunication companies, the banking industry, and retail chains deal with large volumes of data. These are then converted into useful information that can help guide corporations in making decisions.
At the Analitika’s press conference at the Manila Polo Club, Mariels Winhoffer, Country Manager at IBM Philippines, said the country is being prepared to become the global hub for smarter analytics.

The executive added that the Philippines only accounts for only one percent ($212 million) of the $212-billion global IT industry. She said the country can increase industry foothold to 10 percent ($7 billion in the $70 billion global big data/business analysis segment).
She also pointed out that the IT-BPO sector, though lucrative, is unsustainable and only grows five percent a year. Analytics, on the other hand, is growing by 15 percent per year. She then shared Gartner’s estimates where it is predicted that 4.4 million jobs in data analytics will be needed in 2015, but only 30 percent of the positions will be filled.


PH Healthcare BPO to Post $1B Revenues by 2016

by @ 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.


Gartner: Top Indian IT Firms Post Double-digit Growth

by @ News Feed

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.


Megaworld to Build P35B Township Project in Pasig Next Year

by @ News Feed

A P35-billion township project from Megaworld Corp. is set to be developed early next year in Pasig City, starting with the launch of the office space component of the plan.

Woodside City will be housing not only three office towers, but commercial and residential properties as well. An executive at the firm said the growing demand from the business process outsourcing (BPO) industry is contributing to the growth of their projects. The project also hinges on the plan to be more eco-friendly and sustainable. In fact, the firm will be constructing Leadership in Energy and Environmental Design (LEED)-registered office buildings. They have also tapped the services of globally-acclaimed architectural firm Skidmore, Owings and Merill for the design of the first 50,000sqm structure.
Megaworld currently has 712,000sqm of office space inventory, and majority of its 126 tenants are BPO companies that are planning to expand local operations. The first of the three office towers will be completed in 2017. 

About 1,000 trees will be planted in the 12.3-hectare Woodside City, located along C-5 Road. It is an environment-friendly, mixed-use development where the greening feature is expected to provide an outdoor thermal comfort for future residents, tenants, workers, and visitors.

After building the office towers, condominiums, lifestyle mall, and retail and commercial strips are set to be established.


Cebu Seen as an Alternative Location for BPOs

by @ News Feed

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.



RP targets $5 billion outsourcing market in Japan

by @ 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.


Cebu Poised to become KPO Hub

by @ News Feed

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.


UK Firms seen more Selective in Outsourcing

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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.


BPO Firm Says RP Needs Standardized Training for Competency

by @ News Feed

According to Future Perfect Director of Communications Hayley McCarthy, BPO companies in the Philippines must adopt a standardized training program to measure and evaluate competency of BPO workers in order to stay competitive in the outsourcing industry.

�Call centers have specific requirements for communication assessment and training. Currently these are not being adequately met: an over-reliance on school-book approaches and error-counting is threatening the growth of outsourcing in the Philippines,� McCarthy said.

She added that if there is a standardized set of training materials designed to improve the communication skills of call center agents, the country will be more attractive as an ideal destination for BPO services.


Eastwood City Cyberpark Launches New BPO Building

by @ 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.


BPOs Prefer Bonifacio Global City

by @ News Feed

Renowned real estate services firm Jones Lang LaSalle recently said business process outsourcing (BPO) operators in the Philippines are attracted to Bonifacio Global City (BGC) in Taguig. According to the head of project leasing markets at Jones Lang, Sheila Lobien, BPO firms prefer BGC because of the quality of office space and infrastructure development of the business hub. She also mentioned that of the 26 rising business hubs in Metro Manila, BGC posted the highest occupancy rate for 2013.

Nearly 220,000 square meters of office space had already been occupied in BGC - 60 percent of which are from BPO firms and the remaining 40 percent are from traditional office operations.

Lobien added that large multinational companies such as Proctor and Gamble, Philam Life, Coca-Cola, among others are also setting up in the area.

Other factors that make BGC a favored destination for businesses operations are the pleasing environment and new offices that are at a similar price range compared to Makati. The hub also levies lower tax rates for occupants which is a crucial reason considered by business operators.

Office rentals are said to have increased by 29 percent in Makati. In 2012, per square meter rates are at the P600-P800 range and in 2013, rates were at P600-P1, 200. On the other hand, average rental rates in BGC rose by 15 percent from P600-P750 in 2012 to P700-P850 in 2013.


Rural Areas Eyed for Next Wave of Local BPO

by @ 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.


New Site Version Launched

by @ News Feed

MicroSourcing recently launched the new version of its site, This was done to provide visitors and clients a more in-depth look of what the company can offer.

MicroSourcing website: focus on offshoring and outsourcing solutions

One major change in this version is the addition of new pages focusing on the offshoring and outsourcing solutions MicroSourcing can provide to various business segments: start-ups and small companies, medium-sized businesses, and large corporations. This aims to inform site visitors that outsourcing is an effective solution for businesses of any size, and MicroSourcing has the capability to meet their requirements. Moreover, the new site version now has sections covering the delivery centers which were recently opened at Bonifacio Global City in Taguig.

The new version likewise has an updated and more comprehensive Outsourcing Services Finder. This feature is designed to help foreign companies in quickly finding the outsourcing delivery model that suits their requirements. Site visitors may also want to take the MicroSourcing Virtual Tour to have a good look at the company’s facilities and offices.

APEC to Open More Opportunities for PH

by @ 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.


Rent for Office Spaces still on the Rise

by @ 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%.


PH BPO to Create more Job Opportunities this Year

by @ 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).


MicroSourcing to Hold a Recruitment Caravan in Cebu

by @ News Feed

MicroSourcing Cebu Recruitment Caravan

As MicroSourcing gears up for the opening of its new office in Cebu City, the Manpower Acquisition Department is set to launch a Recruitment Caravan from November 2 - 9 in select establishments throughout the city.
Take note of the following dates and venues of the Recruitment Caravan:
  • Nov. 2: Jollibee - 12 point IT Park, AsiaTown IT Park, Lahug
  • Nov. 3: Jollibee - Gorordo Ave. cor. Maxilon Ave.
  • Nov. 3: Chowking - M.Velez cor. Rama Ave., Guadalupe
  • Nov. 4: Chowking - Fortune Square Bldg. Mandaue
  • Nov. 4: McDonald’s - EMSU Bldg. Cebu City
  • Nov. 7: McDonald’s - North Reclamation
  • Nov. 8: McDonald’s - Retail Strip Asiatown IT Park, Lahug
  • Nov. 8: Jollibee - MJ Cuenco Ave.
  • Nov. 9: Shakey’s - The Walk Asiatown IT Park, Lahug
  • Nov. 9: Chowking - Gaisano Mall, Banilad
MicroSourcing is looking for talented individuals who will work as Computer-Aided Drawing Technicians in our office in Cebu. If you have the following requirements, then join the caravan and get hired immediately:
  • Proficiency with Game Controllers is a big plus
  • At least a graduate of any vocational or degree course
  • Must have good Spatial / 3D Visualization skills
  • Average English communication skills (you will be directly coordinating with our engineers in the US)
  • Basic computer skills (Windows XP, Office applications)
  • Must be keen and attentive to detail
  • Fresh graduates/Entry level applicants are encouraged to apply
  • Willingness to work night shifts / in a shifting schedule is a must
There are also great job opportunities in the fields of IT, Human Resources, and Finance. Just bring your comprehensive resumé and the Manpower Acquisition Department will process your application. Apply now!
MicroSourcing’s Cebu office is located at 12th Floor TGU Tower, Asiatown IT Park, Lahug, Cebu City.

Strong Peso Affecting BPO, PH Competitiveness

by @ News Feed

The rapid rise of the Philippine peso is identified as a likely reason for the country to lose its edge in the industries related to exports and business process outsourcing (BPO), according to Singapore-based investment bank, DBS Ltd.

The financial institution also noted that the Philippine peso increased 6.1 percent compared to other currencies in Asia. However, locally, it was identified to have appreciated 7.3 percent.

Eugene Leow, economist at DBS, said even if the peso is increasing its purchasing power, it's negatively affecting its competitiveness and it will definitely affect the export segment.

Meanwhile, Bangko Sentral ng Pilipinas said the said currency appreciated by 6.8 percent versus the dollar last year. Moreover, it identified the Philippines as Asia's second best-performing currency and was starting the year with a 58-month high of 40.77.

According to AmandoTetangco Jr., BSP Governor, the central bank will continue purchasing dollars to counter its strength. He added that based on the other currency-related events in other countries, the Philippine peso is doing well and is at the middle range.

Leow reminded that if the peso continues to gain strength more than its current level, remittances from overseas Filipinos and the BPO sector will be affected.


Global BPO Industry Predicted to Reach $280.7B by 2017

by @ News Feed

In a report by Global Business Analysts Inc. (GIA), it is predicted that the global business process outsourcing (BPO) industry will reach US$280.7 billion by 2017. 

Business owners opted to outsource non-core functions to deal with the impact of the global financial crisis. This resulted to high outsourcing activity in destinations such as India and China.

Outsourcing has become a solution for companies, especially those in the US and UK, to resolve problems like lack of talent and the increasing operational expenses. Aside from cost reduction, outsourcing to service providers enables business owners to adapt to constant changes in the economy, make use of new technologies, and benefit from the emergence of newer media.

The market research entitled "Business Process Outsourcing (BPO): A Global Strategic Business Report" also states that finance and accounting outsourcing will likely post the fastest growth rate, to be driven by companies that need to keep costs aligned and stay competitive. Organizations in the fields of financial services, manufacturing, travel, as well as logistics are expected to avail of finance and accounting outsourcing services. 

GIA is a leading market research publisher, covering market and technology trends worldwide. 


Defining the Role of Hashtags in Search and Social Media Platforms

by jon @ Outsource Force

After Facebook “Likes”, the latest trend adopted by the social media community is Twitter’s “Hashtag” symbolized by “#”. Everyone must have heard, used or seen hashtags – an indication that it’s not going anywhere, anytime soon. Hashtags were used almost exclusively by early adopters of social media. But as people started to understand the mechanics […]

The post Defining the Role of Hashtags in Search and Social Media Platforms appeared first on Outsource Force.

PH to Ink Free Trade Deal with EU

by @ 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.


Do AdWords and AdSense Affect SEO Rankings?

by Al Gomez @ SEO Expert Page

Every business at some point will want to advertise. You may shun it now – preferring other alternatives like blogging, online networking, or even simple word-of-mouth – but ads are still effective in grabbing an audience’s attention today. Super Bowl ads for example, increased the chances of a person buying Read More »

The post Do AdWords and AdSense Affect SEO Rankings? appeared first on SEO Expert Page.

DTI Supports PH Reps in CommunicAsia 2014 Summit

by @ News Feed

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.


High Attrition Rate Threatens PH BPO Growth

by @ News Feed

The 2016 jobs target of the business process outsourcing (BPO) industry might not be met as more and more call center agents in the Philippines are seen leaving the sector. Issues related to health and work-quality are cited by the agents who opt to work abroad.

Working at night is the main reason many call center agents leave their jobs here and look for work elsewhere, pushing them to find countries that have closer time zones to clients, said Contact Center Association of the Philippines Inc. (CCAP) Executive Director Joselito Uligan. In addition to that, he said the 9 to 10 percent attrition rate according to the Business Processing Association of the Philippines (BPAP) is mostly from the call center sector.
The current attrition rate of the BPO workforce, consisting of more than 400,000 employees, is composed of call center agents who either work from one company to another or leave to work in countries such as Malaysia and Singapore.

A 2.89 percent increase was seen in the number of workers leaving the country to work overseas, from 1.092 million in 2009 to 1.124 million in 2010. Remittances ($18.3 billion) from OFWs last year make the BPO industry strive for a larger target for 2016 with $15 billion, which, according to BPAP, will only be achieved if the BPO sector employs 1.1 million workers.


BPA/P to Hold 2nd International Outsourcing Summit in October

by @ News Feed

On October 25-27, top global BPO industry executives will discuss what the future holds for the BPO industry and look at new opportunities and solutions to address issues at the 2nd annual International Outsourcing Summit at Sofitel Philippine Plaza.

The Business Processing Association of the Philippines (BPA/P) and other government agencies are working together for this three-day event which will be attended by about 300 senior executives from 15 countries.

�Because the Philippines is the number two offshore BPO center globally, this is a logical place to meet. As a result, we're seeing major industry personalities sign on as presenters and panelists as well as a steady stream of delegate registrations. This is an important conversation, and the most influential people in the industry are anxious to participate,� said Oscar Sa�ez, BPA/P CEO.


PH BPO Workers Must Save for a Rainy Day

by @ 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.


PH Predicted to Remain Resilient amidst Economic Woes

by @ 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 Government Eyes $50B Revenues from ICT-BPO

by @ News Feed

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.


PEZA Cites Eastwood City as Top IT Hub in 3 Categories

by @ News Feed

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.


2014 PH Economy Predictions Remain Positive

by @ News Feed

The Philippines experienced a series of unfortunate events in 2013. Apart from political issues, it went through a 7.2-magnitude earthquake and the strongest typhoon to ever make landfall, Haiyan.  It spurred doubts amongst economic managers - saying the typhoon aftermath could affect the country's GDP. International factors such as the conflict in Syria, US Federal Reserve problems, and budget crisis are also causing quite a stir amongst foreign investors in considering emerging markets such as the Philippines.

However, reconstruction efforts for the typhoon aftermath in the Central Philippines and strong consumer spending propelled by remittances and continuous growth of the business process outsourcing (BPO) industry will reinforce the local economy's growth in 2014.
Harry Liu, President of Summit Securities, said the challenges will soon pass and the first quarter of 2014 will be better for the economy. Other market participants air the same sentiments on the Philippine economy's fate in general.
Meanwhile, some financial institutions and economists lowered their growth expectations for the country but posted positive long-term projections for economic expansion.


A.T.Kearney: PH BPO Ranking Falls to No. 9

by @ News Feed

The Philippines dropped two places from no. 7 to no. 9 in the Global Services Location Index (GSLI) for 2011 by management consulting firm A.T. Kearney. GSLI lists down the countries which are attractive offshore outsourcing destinations.

Be that as it may, A.T. Kearney said the country remains a key outsourcing player with workforce consisting of about 500,000 workers and $7.2 billion revenues generated in 2009. It is still strong when it comes to call center work. �The Philippines, an early entrant into the service sector, is also relatively well-rounded. It has had more than a decade to hone its capabilities, and by now has moved into ITO [information technology outsourcing] from being primarily a contact-center hub.�              

India got the top spot, followed by China and Malaysia, mainly for talent availability and low costs in these destinations. Other countries which made it to the top 10 are Egypt, Indonesia, Mexico, Thailand, Vietnam, and Chile.


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Outsourcing Sales For Your Business

by e4 BPO @ e4 BPO Business Process Outsourcing Call Center

In my previous blog post, I talked about outsourcing marketing services.  For this post I will talk more about outsourcing the sales side of things.  Of course it’s impossible to get sales if you don’t have customers or prospects.  And outsourcing some of your sales activities to an expert in that field can vastly improve [...]

Obama Re-election may Affect PH BPO

by @ News Feed

The local business process outsourcing (BPO) sector is keeping a close watch on the activity of the US Congress as the re-election of President Obama can lead to the approval of the bill which may have an impact to the industry.

When asked about the �Bring Jobs Home� Act sponsored by Democrat Sen. Debbie Stabenow of Michigan, US Ambassador to the Philippines Harry K. Thomas Jr. said President Aquino and President Obama both have the same goal, and this is to provide more jobs to their countrymen.
Republicans in the Senate and some large business groups strongly opposed the Bring Jobs Home Act. It aims to provide tax breaks for US-based companies that will bring jobs back and retract government grants to organizations that are involved in outsourcing work to offshore regions.

Business Processing Association of the Philippines (BPAP) President Benedict Hernandez said the IT-BPO sector is one of the Philippines' economic pillars, with 493,000 Filipino workers, and this number is seen to increase to 567,000 next year. Moreover, he said it is a rapidly growing sector and was observed to have grown five times more compared to the average employment growth in the country for the past six years.


New Market Trends are Shaping the Global BPO Sector

by @ News Feed

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.


European BPO to set up Iloilo facility

by @ 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.


IT-BPO Seen to Drive PH Economic Growth

by @ 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.  


The Outsourcing World Summit 2010 in Florida

by @ News Feed

Outsourcing World Summit in Florida

With the theme “Using Outsourcing to Emerge as a Leader in the New Global Economy”, The Outsourcing World Summit 2010 will be held at the Disney's Yacht & Beach Club Convention Center in Lake Buena Vista, Florida on February 15-17. This is the 13th edition of The Outsourcing World Summit Conference Series and is presented by the International Association of Outsourcing Professionals (IAOP) together with FORTUNE® Custom Projects.

The said event will provide new business insights and ideas to outsourcing executives across industries and from different parts of the world. In these tough times, it is essential for businesses to be well-positioned to face challenges and be flexible enough to create new services and business models that will suit today's outsourcing demands.

The summit speakers are from within and outside the world of outsourcing. There will also be educational sessions and case studies that will showcase new outsourcing insights and opportunities.

The Outsourcing World Summit is held once a year and is open to IAOP members and non-members.


SearchCap: Yelp hits Google again, link building & SMX East preview

by Barry Schwartz @ SearchCap: Daily Search Engine News Recap

Below is what happened in search today, as reported on and from other places across the web.

The post SearchCap: Yelp hits Google again, link building & SMX East preview appeared first on Search Engine Land.

Asia-Pacific Posts More IT Outsourcing Deals in 2012

by @ News Feed

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.


Global Animation Software Market to Post 18.1% Growth

by @ 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.


Global FAO Expenses to Increase by 20% this Year

by @ News Feed

In the Everest Research Institute report, it was predicted that $3.7bn will be spent on finance and accounting outsourcing (FAO) this year. This is a 20 percent increase year-on-year in 2010.

According to the report, "2010 promises to be a stronger year for FAO than 2009. There is a significant pent-up demand in financial services, which could be a key growth driver in 2010.� The report added that the 20 percent increase in global expenditure is a sign that the period of low activity in FAO is now over.

In 2009, FAO had seen a slow growth in total annual value of contracts - only 11 percent compared to 20 percent annual increase from 2006 to 2008. Also, there were only 65 new FAO contracts that were signed in 2009, compared to 82 in 2008.

FAO involves outsourcing capital budget and internal audit, processing of payroll, and general accounting.


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Lessen Heavy Reliance on BPO, Remittances, Experts Say

by @ 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.


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PH Peso Seen to Retain Stability

by @ 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.


PH Declared Call Center Capital of the World

by @ News Feed

According to business processing outsourcing (BPO) firm Transcom Philippines, the Philippines is now the "Call Center Capital of the World". Siva Subramaniam, Country Manager at Transcom, said the Philippines has already outdone India as the leading call center hub of the world.

The Associated Chamber of Commerce and Industry of India noted in a statement that the Philippines has a healthy supply of call center agents. In fact, the organization as well as IT-Business Process Association of the Philippines' (IBPAP) External Affairs Executive Director Genny Marcial said Filipinos qualify as very good BPO investments for their excellent communication skills and command of the English language in general.

Moreover, Subramaniam said the training facilities, additional efforts to improve infrastructure, and strong government support make the Philippines a favourable destination. Marcial, on the other hand, noted that in the Philippines, voice services make up a major part of its BPO sector, but India is still the top provider for technical support since labor is less expensive there.
For 2012, the BPO sector was found to be the top producer of jobs in the country, employing 777,000 new workers.


Consulting Firm Says China Closing in on India in BPO Race

by @ News Feed

BPO market share of India decreases

India’s BPO market share decreases. China is already closing the gap and may even surpass the former as the top outsourcing destination. This is according to a new report from Ovum, a technology consulting firm.

“Both countries are often touted as the low cost delivery location of choice, with many non-domestic vendors investing millions of dollars to set up operations in multiple locations in both countries”, said Jens Butler, Ovum principal analyst. He added that with the growing influence of India and China as centers of political and economic power, both countries will go head-to-head in the BPO arena.

To stay at the top, stability and government support will play a big role, and these must be sustained in the future since other outsourcing hubs such as the Philippines, South Africa, and Latin America may take BPO market share from China and India.


Execs Prefer Nearshoring over Offshoring, Survey Shows

by @ News Feed

In the outsourcing survey released by Advans, IT consultancy and solutions provider, 75 percent of executives said they prefer nearshoring over transfer of business processes to offshoring destinations such as India. Thirty-seven percent of these executives said they would increase outsourced IT projects such as database administration and QA processes next year.

�The results showed that the majority of executives are considering outsourcing strategies that are closer to home. These results will help us refine our services so we can continue to deliver cost-effective solutions that meet the needs of IT executives,� said Paul Angelo, VP of Service Delivery at Advans.

Survey participants also expressed their interest in outsourcing other processes such as HR, operations and monitoring, help desk, and business intelligence.


Global Outsourcing Industry Estimated to Reach $479B by 2016

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UAE and MENA Seen to Boost Outsourcing Industry

Based on a report done by Dubai Outsource Zone (DOZ), in partnership with research and consulting firm Frost and Sullivan, the global outsourcing sector is predicted to reach $479.3 billion by 2016 due to a significant change in the industry.

The special study, entitled “Outsourcing Opportunities in the MENA Region”, was released during DOZ’s fourth anniversary.

The report highlighted that the UAE and the wider MENA region are prime outsourcing destinations. Moreover, it showed that $370 billion from the global outsourcing market will be reflected as an 8.35 percent compound annual growth rate (CAGR). On the other hand, the MENA region is expected to show a CAGR of eight percent during the period of 2009-2016, while the UAE is expected to gain a 10 CAGR during the same forecast period.

The developments in the industry are also said to be caused by the financial crisis, which also encouraged companies to change policies, practices, and to outsource.

As Dubai becomes the favoured outsourcing destination because it poses as a gateway to the entire Middle East, Africa, and Asia, the MENA region, on the other hand, is known as the second largest outsourcing market after Egypt.

Frost & Sullivan Consultant for Middle East and North Africa Information and Communication Technologies Lindsay McDonald said, “The entire outsourcing industry was based on low cost activities. But now clients are ready to pay a premium if they are assured of high quality services. Due to this trend, governments of well-established outsourcing destinations are in the process of re-aligning their outsourcing industry and its development strategies.”


Healthcare Outsourcing Sees 74% Employment Growth

by @ 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.


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BPO to Create the most Jobs for RP in the next Three Years

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New jobs in the BPO industry secured for Filipinos

President Benigno Aquino III’s working visit to the US resulted to at least 43,000 new jobs for Filipinos in the next three years, primarily in the business process outsourcing (BPO) industry. This is worth more than US$2 billion worth of investments from foreign companies tapped by Pres. Aquino.

According to Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz, the top in-demand jobs are the following: call center agent, customer service assistant, technical support staff, forklift operator, accounting clerk, mechanical engineer, sales clerk, driver, cashier, and production worker. "It is good news, and that will really help in job generation... and address the poverty that continues to confront us," Baldoz said.

Senate finance committee chair Franklin Drilon said these new investments mean foreign investors are confident in the Aquino administration.



PH Software Services Outsourcing Posts 37% Growth in 2011

by @ News Feed

According to a study by the Philippine Software Industry Association (PSIA), the country’s software services outsourcing sector grew by 37 percent last year as more clients outsource IT and software requirements to service providers in the Philippines. The sector posted $993 million in revenues and an increase in employment rate at 11 percent.

Increase in IT outsourcing revenues

PSIA President Nora Terrado said the increase in IT outsourcing revenues can be attributed to process optimization and improved technical workforce as a result of the efforts of both industry players and the government.

It was observed that local industry players are moving from providing full services to product development. PSIA has launched PD/SIG, a special interest group focusing on product development. It was created to help the country’s software development sector in producing products and offering them to customers.

To sustain the growth of the sector, Terrado said they are now looking at new opportunities. Capability development and innovations in both products and services are crucial for the continuous growth of the sector especially with the emergence of the cloud and challenges in the global market.


IT Executive Lauded for IT-BPO Support

by @ News Feed

2013 International ICT Awards

According to a press release from the Bacolod-Negros Occidental Federation for Information and Communications Technology, Senate Committee and Technology Chairperson Edgardo Angara and Sigfrido Tinga, Chairman of the House Committee on Information and Communications Technology and Taguig Representative, commended National ICT Confederation of the Philippines former Chair Jocelle Batapa-Sigue for introducing business process outsourcing (BPO) to areas outside of Metro Manila.
Senator Angara lauded Sigue in his acceptance speech when he got the award as ICT Individual Contributor of the Year in the recently concluded International ICT Awards held in Makati.

Rep. Tinga, who was also a recipient of the ICT Individual Contributor of the Year award, agreed with Angara in praising Sigue for introducing BPO in cities outside Metro Manila, also known as the Next Wave Cities.

Sigue and BPAP President Fred Ayala were the other finalists in the International ICT Awards.



PH Ranked as One of the Top 3 Offshoring Hubs

by @ News Feed

The Philippine business process outsourcing (BPO) sector proved once again its resilience and strength as the country is included in the top three offshoring hubs, together with India and China.

In the "Onshore, Nearshore, Offshore: Still Unsure" report from Jones Lang LaSalle, a global real estate adviser, states that for 2008-2011, these countries produced the most number of jobs in call centers, shared services centers, and tech support centers during the period of 2008-2011. In fact, during this period, the Philippines closed 115 projects and created 72,000 jobs, India landed 105 projects and produced 64,370 jobs, while China had 56 projects and created 25,455 jobs.

In a radio interview with dzRBRadyong Bayan, Abigail Valte, Deputy Presidential Spokesperson, said it establishes the Philippines' position in the BPO sector even more. She added that it is now up to the local BPO firms to cultivate the skills of their manpower to continue the winning streak over competitors and become more appealing to investors. 

Furthermore, Valte said programs that are focused on improving and building the proficiency in both Filipino and English languages are now being developed by the Department of Education.

United Kingdom, Brazil, Poland, Mexico, the United States, Costa Rica, and Romania were also named as premiere locations for offshoring.


Accounting & Finance Outsourcing to Exceed $25B

by @ 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.


India Still the Leader of Global BPO

by @ 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.


BPAP Aims to Rebrand Outsourcing

by @ News Feed

According to Business Processing Association of the Philippines (BPAP) Chairman and President and Chief Executive Officer of LiveIt Investments Ltd. Alfredo Ayala, outsourcing needs to be rebranded to have a more likeable image, specifically in the United States where protectionist measures are being put in place.

The rebranding is related to the organization's effort to hit the revenue target of $25 billion by 2016.

Ayala added that over the years, outsourcing was perceived negatively, but it should now be seen as a good industry.

It was found out that less than five percent of the US market is being outsourced, which means that there are still a lot of prospects for outsourced and insourced jobs. Moreover, Ayala said the country needs to work on improving its appeal to investors. Recent initiatives on legislation such as the Data Privacy Act and the Cybercrime Bill will help the industry.

Benedict Hernandez, President of BPAP, said the local outsourcing sector has to shift to high-valued services in order to access the �sweet spots�. Even if the Philippines recently became the leader for call center operations wherein it accounts for 15 percent of the market share, it has barely made a scratch on the information technology-software segment with only five percent market share.

Even so, the country is on the right track in terms of achieving the Road Map 2016, said Ayala, and that they are aiming to become the leader not only in voice services but select high-valued processes as well.  Furthermore, they are striving to achieve cumulative revenues of US$96 billion for 2012-2016 and produce 4.5 million direct and indirect jobs.


UK Expects Increase in Demand for IT Services

by @ News Feed

Based on the report released by market intelligence firm International Data Corporation (IDC), there will be an increase in demand for IT services in the UK, Germany, and the Nordics, with an annual growth rate of 3.4 percent between 2010 and 2014.

Increase in demand for IT services expected in UK market

According to Laura Converso, research manager of IDC European software and services, while demand is expected to increase at the second half of this year, new technologies and price issues will affect the ability of the UK market to bounce back. "We expect the 'growth agenda' to return slowly, bringing investments in business intelligence and industry-specific solutions, as well as the global rollout of applications, when these solutions can support business growth, towards the end of the year."



ICT-Davao Head Says Schools should Start Offering KPO Courses

by @ News Feed

Davao City got the top spot in this year's Top 10 Next Wave Cities, but it lacks enough manpower with the skills needed for knowledge process outsourcing (KPO) work. This is why Erriberto Barriga Jr., head of the Information and Communications Technology of Davao (ICT-Davao) said schools should start offering KPO courses like gaming software development.

The Philippines has long secured its place in the global outsourcing industry when it comes to voice-based work, but experts have advised the country to move to KPO, a different BPO segment that requires analytical and design skills. KPO demand may be increasing, but Barriga said there are no locators that offer skills needed to meet KPO requirements.

Barriga said 42 universities in Davao had produced 15,000 graduates earlier this year with skills that are suitable for contact center operations. ICT-Davao expects that they will be able to exceed the 10,000-seat target for call centers this year.


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PH Game Development Industry Eyes Faster Growth in 2012

by @ News Feed

The Game Developers Association of the Philippines (GDAP) is optimistic that the country's game development industry will grow faster in 2012 at a rate of 60-70 percent. This year, the projected growth rate is 55.56 percent or $14 million.

Darwin Tardio, president of GDAP, said they are looking at a faster growth rate despite the recent Standard & Poor's US credit rating downgrade. He added that the global gaming industry managed to perform well even during the recession.

Game development is considered as one of the faster-growing segments of the business process outsourcing (BPO) industry. Earlier this year, the Business Processing Association of the Philippines (BPAP) said they aim to increase the number of game developers this year to 1,600 from 1,200 in 2010. 

Tardio said it will not be too difficult for the game development industry to flourish especially since there is a demand for mobile phones and other handheld devices, which are popular platforms for gaming. 


India may get Mega Deals this Year

by @ News Feed

Mega Outsourcing Deals

Outsourcing contracts worth $1 billion may be granted to India this year as companies from different industries such as retail, banking, and telecom and utilities aim to cope with increased service demand and to reduce operational costs.

Early this year, British Petroleum’s IT outsourcing contract worth $1.5 billion was awarded to TCS, Infosys, and Wipro.

 “We see both large and small deals coming back to the table. Although the traditional verticals like telecom, financial services and manufacturing have gained volume, it has been observed that new verticals like retail, media and entertainment, healthcare are also driving growth,” said Suresh Sundaram, HCL Technologies global head for marketing and strategy.

“Deal pipeline has picked up and 2010 is certainly a strong year compared with 2009,” said Managing Director Sid Pai of TPI, a global sourcing advisory firm. According to the most recent TPI Index, outsourcing contracts increased by 47 percent in the fourth quarter of 2009 compared to third quarter of the same year.



Executives See Outsourcing as Key to Overcome Crisis

by @ News Feed

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.


BPO Leaders Tap Bacolod for 'Knowledge Process Outsourcing'

by @ 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.

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UK Firms �Disappointed' with Quality of Outsourced Work

by @ News Feed

Cost Only Approach in BPO is not Effective

Majority (75%) of UK organizations said they are disappointed with the quality of outsourced work. This is based on the research released by Valueshore Spain, Spanish Government-backed group of IT consultancies.

The research further shows that of the 200 UK IT directors surveyed, 78 percent still use day rates to calculate outsourcing costs, and that majority of organizations look at cost instead of quality of work when it comes to making outsourcing decisions.

Companies should change their perception of what offshore outsourcing can do for them. "Taking a cost-only approach can have a detrimental effect on the quality of work received. Businesses also need to open their eyes towards the 'hidden' costs. The cheapest option doesn't always provide to the biggest overall savings, as quality concerns can often result in more management time being required and increased travel and troubleshooting costs," said Daniel Naoum, co-founder of Valueshore Spain. By failing to consider the hidden costs, companies will lose opportunities for cost savings and pay an outsourcing bill that’s more expensive than what was initially planned.



Euro Crisis Derails IT Spending, Growth

by @ News Feed

A study done by consultancy firm Forrester Research indicates that IT spending in Europe will decrease and possibly come to a standstill due to the weak economy and currency of the region.

IT spending to decrease as recession is imminent for some parts of Europe

Andrew Bartels, author of the report and Analyst at Forrester, said there is a possibility that recession is imminent for some parts of Europe. The worst thing that could happen would be the collapse of the euro currency. Bartels added that even if European officials exert additional effort to avert worst-case scenarios, it will be long before the region can recover and can only result to a 0.3 percent growth this year.

Moreover, he said IT leaders should base budgets according to the dull 2012 predictions, map out contingency plans in case of an economic emergency and collapse of the euro, and hope that all will be better in 2013.

Also in the report, technology is used differently in European countries, with regions like Greece, Italy, and other southern countries using less of it, in contrast to Denmark and Sweden.


Obama to end tax breaks for outsourcers

by @ News Feed

Obama to Slash Tax Breaks for Companies Outsourcing Abroad

President Barack Obama said in his State of the Union address that it was time to cease tax breaks for American firms that outsource jobs overseas, helping those that increase employment within the country instead.

“ is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America,” the President said.

"Now, the House has passed a jobs bill that includes some of these steps. As the first order of business this year, I urge the Senate to do the same, and I know they will. They will. People are out of work. They're hurting. They need our help. And I want a jobs bill on my desk without delay."

The President acknowledged, however, that the move would not compensate for the current rate of unemployment.

"But the truth is, these steps won't make up for the seven million jobs that we've lost over the last two years.”


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PH Pres. Aquino Signs DICT Act

by @ 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.


Global outsourcing market up 40%

by @ 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.


Global BPO Market to Reach $209.4B in 2017

by @ News Feed

BPO sector to reach $209.4B in 2017

A report from market intelligence firm IDC indicates that the business process outsourcing (BPO) sector could be valued at $209.4 billion in 2017 with a compound annual growth rate (CAGR) of 5.7 percent. Of that amount, $97.3 billion will be contributed by the growing US BPO market, which is predicted to post a slower CAGR of 4.3 percent.

According to Mukesh Dialani, Research Manager for worldwide BPO and engineering services at IDC, with the experience and data most providers have accrued over the years, they are now able to present clearer and more concise ideas and scenarios to probable customers.  Clients are realizing the improvements and benefits that reformed BPOs can bring to their businesses.

IDC added that for voice-based processes, other channels and platforms are now being used by providers. For instance, there’s mobile customer care, remote agent delivery centers, and on-demand contact center services.


India Losing BPO Business to PH

by @ 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.


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UN Agency Raises PH Economic Growth Forecast

by @ News Feed

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.




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DOST Launches 'Smarter Philippines' Socio-Economic Program

by @ News Feed

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.


RP BPO Sector Expects Significant Growth in 12 Months

by @ 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.


British Experts Remain Optimistic on PH BPO

by @ News Feed

In a formal meeting last Feb. 2, British-Philippines Outsourcing Council (BPOC) Board Members Ian McGowan and Richard Patterson told Philippine Ambassador Enrique Manalo that they have a �very positive� outlook regarding the position of the country's business process outsourcing (BPO) sector.

According to the Department of Foreign Affairs (DFA), the BPOC noticed that more and more clients, particularly from the UK, Australia, and Asia, are looking to outsource high-end services to locations that offer competitive pricing. Furthermore, McGowan and Patterson said outsourcing is not entirely unacceptable for established economies like the UK, stressing that businesses outsource to be globally competitive. They were also able to discern that with their experience with numerous British firms that are outsourcing to the country, when a position is filled in the Philippines, more job opportunities are created in Britain.
Manalo strongly supports BPOC's efforts in shaping the country to become a prime outsourcing destination for the British market, saying that the Embassy will persevere in working with BPO organizations to develop the industry. 

BPOC is a London-based, non-profit independent organization that aims to showcase the Philippines as a viable outsourcing location for British companies.



e4 BPO Awarded Top Blog in BPO

by e4 BPO @ e4 BPO Business Process Outsourcing Call Center


e4 BPO is proud to announce that we are now the top blog on Facebook and Networked Blogs for the BPO and Business Process Outsourcing industry.  Thanks to all of our current followers and [...]

Role of SEO in the Digital Marketing World

by Anirban Das @ Zebra Techies Solution

With the evolution of digital marketing, the landscape of marketing and promotion has entirely changed. This change has brought a revolution in the marketing industry. Among many, SEO or search engine optimization has emerged as a heart and soul of digital marketing. Anyone, who wants to effectively market on the digital platform, essentially has to…

ILO Chief Tells RP Grads to Fill In Manpower Gaps in BPO

by @ News Feed

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.




AU BPO Driven by Document Management

by @ 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.


CBRE: PH BPO still a Key Driver of Investment Growth

by @ News Feed

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.


Cebu - One of World's Top Outsourcing Hubs

by @ News Feed

Cebu Tagged as Top Global Outsourcing Destination

Tholons Inc., a renowned strategic advisory firm, recently named Cebu as one of the world’s top outsourcing destinations. Moreover, the country was seen outpacing established European locations.

According to House Assistant Majority Leader and Cebu Rep. Gerald Anthony Gullas Jr., Tholons ranked Cebu as the 8th best location in their 2014 Tholons Top 100 Outsourcing Destinations list, trailing after a strong line up that includes Bangalore, Metro Manila, Mumbai, Delhi, Chennai, Hyderabad, and Pune.

Gullas added that Cebu will likely attract more investors once construction of the Mactan Newtown, a 28.8-hectare special information-technology park and economic zone, is finalized. The township will be located in Lapu-Lapu City, Cebu and is fronted by Megaworld Corp. It is likewise anticipated to promote a "live-work-play" environment.
The official pointed out that Cebu has covered the fundamentals such as fiscal incentives, strong support from local government, college-educated human resources professionals, infrastructure, among other innovations to progress as an outsourcing hub. In addition to that, he said Cebu offers an environment that promotes well-being because it is less congested, therefore minimizing stress among workers. The region is also known to be less expensive than its counterparts such as Manila and other outsourcing hubs worldwide.

Of all the outsourcing hubs in the Philippines, Gullas said only Cebu and Metro Manila made it to the top 10 of the 2014 Tholons Top 100 Outsourcing Destinations.


Everest Group Sees Slower Outsourcing Activity

by @ News Feed

Research firm Everest Group recently found out that the volume of new IT and business process outsourcing (BPO) contracts dipped 20 percent from 516 during the second quarter in 2011 to 411, same quarter this year.  

Salil Dani, Practice Director for global sourcing at Everest Group, said the market is continuously growing but the rate is slowing down. Moreover, the drop in the number of outsourcing contracts was said to be caused by the debt crisis in Europe and other economic issues worldwide. Dani noted that majority of IT spending in Europe are at a standstill.
Dani added that businesses based in the US are now uncomfortable with outsourcing due to the recent events regarding the anti-outsourcing bill. On the other hand, some US companies are starting to subcontract locally, but are still fewer in number since outsourcing locally does not offer the same benefits that destinations such as India and the Philippines can provide in terms of costs and availability of talent.


Links Will Still Be Important Factor Of Google Algorithm in Coming Years Matt Cutts

by Mohnesh Kohli @ Mohnesh Blog

Good News for SEOs Links will not die soon – Matt Cutts Matt Cutts Distinguished engineers at Google in its latest video confirm that Google will not devaluate the links anytime soon. Links will still remain an factor for ranking in Google algorithm for next many years. “I think backlinks still have many, many years […]

The post Links Will Still Be Important Factor Of Google Algorithm in Coming Years Matt Cutts appeared first on Mohnesh Blog.

Swedish Companies Eyeing PH BPO

by @ 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.


BPO Revenues, Remittances Predicted to be on Same Level by 2017

by @ News Feed

Philippine BPO Earnings Could Match OFW Remittances by 2017

In a recent seminar of the Economic Journalists Association of the Philippines (EJAP) sponsored by the San Miguel Corporation (SMC), Jonas Ravelas, Market Strategist at BDO, said if the country’s business process outsourcing (BPO) industry continues to grow at 20 percent, its revenues will be at the same level with OFW remittances by 2017 and will make room for more economic development.  

 The BPO industry accounts for 5.4 percent of the domestic economy’s growth, seen in last year’s gross domestic product (GDP). The government aims an 8.6 percent GDP contribution by 2016.

Ravelas noted that as the call center sector grows, more jobs will be created even in the local services sector. For instance, establishments that cater to BPO employees will set up shop in call center areas. He added that working for BPO companies is an option that people nowadays are taking since the salary is better than the minimum wage and they would no longer have to leave their families to work abroad.


European Firms Expected to Expand PH BPO Operations

by @ 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.


How Corporate Culture Affects Outsourcing Relationships

by @ News Feed

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.


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SBMA to Establish �BPO City'

by @ News Feed

Soon to Rise: BPO City in Subic Philippines

During the recent speech of Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia at AMA College in Olongapo City, he shared that SBMA aims to build a “BPO City”, adding that local information technology (IT) professionals have a lot of employment opportunities in the business process outsourcing (BPO) industry.

Garcia said since the Philippines outdid India as the ideal location for voice-based BPO processes, Subic-based BPO and IT businesses have a favorable future.  Furthermore, he said the plan of attracting more investors to Subic is aligned with President Aquino’s initiatives such as provision of more jobs and to produce globally competitive talent.  

Subic is equipped with communication facilities, public transportation system, well-trained law enforcement department, and medical and fire departments. The area also has numerous establishments where employees, together with their families and friends, can relax and unwind.

SBMA projects that the BPO City will provide 20,000 jobs for IT experts and call center agents by 2016. The organization is also set to invite call center agents from Manila to work at Subic Bay Freeport.


JP Morgan Expects more Foreign Investments to PH this Year

by @ 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.


The web design process

by @ 4M Feed

Five important steps make up the web design process. It is crucial to understand each one thoroughly in order to have a successful web project. These steps follow the sequence of: the brief � research and insights � design � solution � production.

Positive Outlook for PH Economy

by @ News Feed

A study done by Standard Chartered showed that a lot of people are ecstatic with the Philippines' above average GDP performance last year, resulting to positive and bullish predictions.  

Jeff Ng and David Mann, research analysts at the banking giant said the optimistic opinions are more noticeable now, compared to 2012. Moreover, they people's confidence to the improving economy.

Ng and Mann added that one industry that shows growth is the construction division, brought about by new businesses. However, the country faces challenges in infrastructure development and investment segments.

Meanwhile, it was noted that even if the Philippines got lower rankings against other Asian countries for business infrastructure and competitiveness, local businesses are still flourishing.

Other evident signs of the country's thriving business scene are the digitized bank services for remittances of overseas workers and the emergence of 24-hour food and beverage and retail businesses that widely cater to business process outsourcing (BPO) companies.


2014 IT Outsourcing Deals in UK Up by 15% in Value

by @ News Feed

IT Outsourcing Contracts in UK Outsourcing Index

According to the UK Outsourcing Index for 2014 created by outsourcing provider Arvato and analyzed by industry specialist NelsonHall, the total IT outsourcing (ITO) contracts closed last year posted a total value of £3.44 billion and 75 percent or £1.05 billion of that is composed of contracts from the utilities and energy sector. Those deals likewise represent the 187% of the year-on-year rise in the sector, from the £373 million spent on all outsourcing deals back in 2013.

The report also found that last year, UK’s outsourcing market was worth £6.65bn - £3.1bn of which comprised closed deals for business process outsourcing orders. In addition to that, hybrid contracts that comprised BPO and ITO arrangements were valued at £109 million.

Infrastructure management was the most outsourced IT service with a total £899 million spend, followed by application management at £772 million, and network management with £485 million.

Other findings in the report also pointed out that deals from the public and private sector being carried out remotely are only 8% of the total £2.49 billion.  

According to Debra Maxwell, Managing Director of Arvato UK, people still confuse outsourcing with offshoring, but the study underpins that UK delivery is still crucial in the outsourcing segment since the requirements and needs of customers become more complex.


Everest: Captives still Expanding and Evolving

by @ 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.


US Healthcare Firms Seen Looking for Medical Coding Resources in PH

by @ News Feed

MicroSourcing is seeing increased interest from US healthcare companies about building medical coding operations to help fill their need for medical coding resources. The upcoming implementation of ICD-10 medical coding regulations is a major disruption to the US healthcare industry and is expected to create an even larger shortage of qualified medical coding professionals in the United States.

The US healthcare industry has been working with the current version of ICD-9 since 1979 and the new ICD-10 regulations will become effective on October 1, 2015. The transition to ICD-10 is significant and will radically change the way coding is done, with the number of codes under ICD-10 increasing dramatically from approximately 18,000 to 140,000 codes.

At the recent American Health Information Management Association (AHIMA) conference, there were discussions about the impact of the loss of productivity as medical coders struggle with getting proficient with the new codes. There is also an expectation that many medical coders will decide to retire and not to get trained in ICD-10.

United Healthcare, WellPoint, and Aetna, which represent three of the largest US healthcare companies, all have operations in the Philippines and they have helped drive last year’s 55% growth in healthcare services outsourced to the Philippines. Industry experts are forecasting the number of Philippine workers in the healthcare outsourcing segment to reach 120,000 by 2016.

US healthcare companies looking to outsource medical coding operations

MicroSourcing is being told by many of the US healthcare companies inquiring about setting up a medical coding operation, that they feel they need to explore all the available options to ensure they can meet their production requirements. Cary Weltken, MicroSourcing’s SVP-North America, said, "Our Managed Operations delivery model is the perfect solution for healthcare companies who need certified medical coders to meet production requirements, but need to maintain total operational control and meet strict data security requirements for HIPAA compliance."

Philip Koojiman, CEO of MicroSourcing, added, "It is estimated that the Philippines has a pool of over 150,000 nursing school graduates that we can draw on to become AAPC CPC medical coders. Our current US healthcare customers who have coding operations with MicroSourcing have all indicated that they plan to grow their Philippine operations as a way to meet their increasing productivity requirements."

Egypt Poised to become Key Outsourcing Destination

by @ News Feed

Egypt Emerging as Outsourcing Location

Having the key factors needed for outsourcing, Egypt is ready to become a major outsourcing hub. According to Hossam Megahed, board member for Egypt's Information Technology Industry Development Agency (ITIDA), the country’s infrastructure, business environment, and pool of multilingual workers have attracted investors to outsource business processes in Egypt.

"The presence of high-profile companies like IBM, Microsoft and Vodafone in Egypt today highlights ITIDA's continued success at building the country's reputation as a global service delivery location," Megahed said.

The 11.3 percent growth rate of the Information and Communication Technology (ICT) industry in Egypt propelled the economy to reach a growth rate of 5.8 percent in the first quarter.




BPAP: Make Employee Welfare a Priority

by @ News Feed

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.


PH Industry Body Eyes more �'Next Wave Cities� for BPO

by @ News Feed

The Information and Communications Technology Office (ICTO) of the Department of Science and Technology (DOST) is actively planning on developing more Next Wave Cities to accommodate business process outsourcing (BPO) firms in the Philippines.

Louis Casambre, Executive Director at ICTO, said they are hoping to create attractive alternative outsourcing destinations outside Metro Manila. Moreover, the organization anticipates that the new ICT destinations will spur development and reinforce growth in the nation’s provinces.

Philippines' Next Wave Cities for BPO

The Next Wave Cities in the Philippines are Metro Cavite (Bacoor City, Dasmariñas City, and Imus City), Metro Laguna (Calamba City, Los Baños, and Sta. Rosa City), Metro Naga (Naga City and Pili), Metro Rizal (Antipolo City, Cainta, and Taytay), Baguio City, Davao City, Dumaguete City, Iloilo City, Lipa City, and Metro Bulacan (Baliuag, Calumpit, Malolos City, Marilao, and Meycauayan City).

DOST-ICTO and iBPAP made sure that Next Wave Cities are qualified in terms of talent, innovation, connectivity, costs, accessibility, and business and political soundness.

Emmy Lou Delfin, Program Manager of Next Wave Cities, said their plans are supported by local government units, local ICT organizations, and school administrators.
In other news, seven cities in the Philippines made it to Tholons’ top 100 outsourcing destinations in the world.



BPAP Seeks Exemption from No-work Order

by @ News Feed

The Business Processing Association of the Philippines (BPAP) was believed to have been communicating with the government about possible exemptions for the no-work order released for the private sector due to heavy rains.

According to Gillian Virata, BPAP Executive Director, via a statement at GMA News Online, they are lobbying that business process outsourcing (BPO) companies should be exempted as they operate 24/7 and serve international clients. She added that nearly 75 percent or 480,000 people are employed by 600 member-companies of the association.

The government and BPAP found a resolution wherein during inclement weather, suspension of work will depend on the management's discretion.  

In line with that, BPAP said BPO companies in the private sector are not covered by the no-work order from the government, but was quickly retracted by Virata. She said her previous statements were premature and that her initial interview was based on the internal updates at BPAP. She further noted that she was not directly communicating with government at that time when her statement was released.


Gartner: Strategic Document Outsourcing in North America to Grow 2.8%

by @ News Feed

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.


PH BPOs Seek Holiday Policy Revisions

by @ 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.


Nearly 75% of Large Firms Plan to Outsource More

by @ News Feed

In the study "The State of Services & Outsourcing in 2014: Things Will Never be the Same" done by KPMG and HfS Research, it was discovered that almost 75 percent of global organizations are planning to invest more on outsourcing.

The study stated that firms are now more interested in the global delivery models of specific functions like finance, recruitment, and human resources. It also indicated that 72 percent considered increasing their outsourcing budgets; while 61 percent said they are going to increase the use of offshore global shared services for IT and business processes in the next two years.

KPMG cited report findings that an increase of 20 to 30 percent in offshoring activities is possible in the coming year.

One of the highlights of the report is that majority of companies are focused on using global service delivery models that utilize both outsourcing and internal shared services. In fact, 56 percent are found increasing investments in centralized management hubs that will help align outsourced, internal, and even mix type of operations with the goals of the company.

According to Dave Brown, KPMG's head of global lead, shared services, and outsourcing consultancy, outsourcing is facing an issue about its real objective - if it actually adds value and helps businesses scale operations at a low cost. The executive added that providers should do more than increase the volume of the talent pool and carry out basic operations. In this way, they will remain valuable and clients will see them as business partners that can help innovate and develop strategies and not a staffing agency.


Protests Force Indian IT Firms to Close Down for a Day

by @ News Feed

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.


100,000 Jobs Await Fresh Grads in the PH BPO Industry

by @ News Feed

BPO industry updates

World Bank stated in its Philippines Quarterly Update that new graduates can expect more employment opportunities this year, as infrastructure spending increased and the business process outsourcing (BPO) sector continues to grow even though it is facing talent supply issues. In fact, the BPO industry is expected to provide 100,000 jobs this year.

Majority of the 700,000 Filipinos in the BPO workforce are employed in contact centers. Meanwhile, finance and accounting is seen as a growing segment for Filipino workers.

The BPO industry is stalled by economic problems globally which may affect those who are employed in the electronics sector.

Fewer overseas contracts are also anticipated by World Bank. However, structural reforms are said to be manageable solutions to beef up the volume of skilled candidates, and hopefully resolve advancement issues.

Rogier J. E. van den Brink, Lead Economist at World Bank, said the Philippines has the rudimentary elements against the worsening condition of economies worldwide. Also, the country has the potential to be a prime destination for other services.


Google Local Search Algorithm Change After Google Maps Bomb Fix?

by Mohnesh Kohli @ Mohnesh Blog

Google updated its local search engine ranking factors / algorithm in past few days resulting into lot of changes in local search engine results both Google Maps and the local packs in web search. It has happened after Google Maps GoogleBomb wrong results. It is not clear that it is related to the Google Maps […]

The post Google Local Search Algorithm Change After Google Maps Bomb Fix? appeared first on Mohnesh Blog.

Outsourcing Website Design and Development

by e4 BPO @ e4 BPO Business Process Outsourcing Call Center

These days, if your company doesn’t have a website, you basically don’t have a business.  At least from a reputation standpoint.  It’s basically a status symbol for your company.  And in many cases it can either make y0u or break you.  It’s the same if you receive an email from one of the free emails [...]

Chief Minister Says Ohio's Anti-outsourcing Move to Impact IT Industry

by @ News Feed

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.


Healthcare IT Outsourcing Market Seen to Expand until 2020

by @ News Feed

Growth Seen in the Healthcare IT Outsourcing Market

Healthcare payers are being pushed to modify IT and operation strategies to comply with the latest regulatory reforms. Individual consumers are now more accountable for their health outcomes. This results to an increase in activity in the healthcare IT outsourcing (ITO) market. The global healthcare ITO market is predicted to expand at a CAGR of 12 percent from 2013 to 2020, reaching US$68 billion in 2020.

Much of the activity is seen within the mid-size providers segment and they are looking for affordable ways to comply with the regulatory demands as well as ground-breaking strategies that will assist them in changing to a business-to-consumer from business-to-business marketing and service models.

According to Jimit Arora, Vice-president at Everest Group, two things are affecting the shifts in the industry. There’s the transition to ICD-10 and the uncertainty of the reforms under the PPACA (Obamacare). Also, payers are looking into updating their customer acquisition strategies since consumers now have greater ownership, control, and responsibility for their health outcomes.


Transforming SMEs with flexible outsourcing at CeBIT Australia 2017

by SHORE Official @ SHORE Solutions Inc.

Is my company big enough to outsource? What functions can I outsource? Can I afford to operate offshore? If you’re running a small or medium business, these are probably questions that come to mind when thinking about outsourcing. Or perhaps you haven’t even considered outsourcing at all? The right offshore partnership can help take your … Continue reading Transforming SMEs with flexible outsourcing at CeBIT Australia 2017

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Survey: Asian Outsourcing Sector has Room for Growth

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Outsourcing Market in Asia Continues to Thrive

The Grant Thornton International Business Report (IBR) 2014 shows that as the outsourcing industry in Asia continues to grow, opportunities are seen increasing as well. Businesses in the region are said to be experiencing more mergers and acquisitions, higher costs, and more talent management challenges