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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.


CDO Cited as 'Most Competitive' Outsourcing City in Mindanao

by @ News Feed

With more room for business process outsourcing and a large pool of skilled workers, Information and Communications Technology (ICT) companies recognized Cagayan de Oro (CDO) as the most competitive city in Mindanao for outsourcing work.

Elpidio Paras, Chairman of the CDO ICT Business Council, told industry leaders and ICT students in the recently concluded Convergence 2009 ICT Roadshow at Pryce Plaza Hotel that Cagayan de Oro has several potential outsourcing sites including the Phividec [Philippine Veterans Investment Development Corp.], the new Lim Ket Kai Gateway Tower, and the SM City-CdO IT Building.

The low power cost in the city is also another plus for ICT companies. Paras said there is enough power supply from sustainable resources. �Utility rates here are lower by at least 30% compared with Manila's rates, management costs are also low, and salaries are low- to mid-level. Cagayan de Oro is also typhoon-free,� he added.


What To Expect From Ad-Clicks In 2017

by Alexander Felsch @ NYC SEO Authority

Google Makes Sweeping Changes In Search And Paid Ad Security In just the last few days, Google has announced that it will be encrypting all searches including paid ads. Since the inception of AdWords, Google has provided a way for advertisers to search for keyword data through their tool and through third-party tools that access [...]

The post What To Expect From Ad-Clicks In 2017 appeared first on NYC SEO Authority.

ILO: Asian BPO Markets may Ease Impact of US Bill

by @ News Feed

With the pending approval of the US House Bill 3596 or the �Call Centers and Consumers Protection Bill� that aims to discourage American companies from outsourcing overseas, Lawrence Jeff Johnson of the International Labor Organization (ILO) noted that there are other opportunities in the Asian market for Filipinos in the BPO workforce, as more and more Philippine BPO providers are offering services to neighboring countries in Asia.

During the launch of the ILO-Department of Labor and Employment's (DOLE) Knowledge Center, Johnson said US is not the only BPO market for the Philippines.  

The ILO representative said the Philippine government should have a backup plan for talented Filipino call center agents in case the anti-outsourcing bill is approved, and use it as basis for revamping employment strategies. He added that Filipino workers have favourable characteristics such as proper education and excellent English communication skills so they have more employment opportunities. 

Meanwhile, Johnson said the ILO-DOLE Knowledge Center can help provide a better understanding of labor issues and challenges in the employment world to employers, employee groups, as well as the academe and students, with the help of DOLE and various tools and research materials.


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by whitelabelseo @

If you are in the business of designing and developing websites, you will need to research information on how to get your website higher on Google. There are many factors that you need to be aware of when trying to rank a website. Let’s cover a few principles… Keyword research Deciding what keywords you would […]

The post How to get your website higher on Google appeared first on

Research Firm Advises Hospitals to Outsource IT Tasks

by @ News Feed

According to Frost & Sullivan, a business research and consulting firm that provides market analysis and reports, hospitals and healthcare agencies will gain financial benefits if they join the IT outsourcing bandwagon. Aside from outsourcing IT tasks such as data management, cloud computing service can be another alternative for the healthcare sector.

"It allows hospitals and healthcare agencies to focus exclusively on their core competencies of providing patient care," said Konstantinos Nikolopoulos, programme manager of Frost & Sullivan. He added that outsourcing IT requirements will be relatively inexpensive and though there is still no widespread acceptance of IT outsourcing, the healthcare sector is slowly changing its mindset about it.


Industry Groups Say Cyber Sex is not Part of the BPO Industry

by @ News Feed

After the release of news reports that compared girls who are involved in cyber sex with call center agents working shifts, the Business Processing Association of the Philippines (BPAP) and the Commission on Information and Communications Technology (CICT) said cyber sex is not BPO. The illegal practice is happening in different parts of the world and is not being outsourced to the country.

Cyber sex not part of BPO industry

BPAP President and CEO Oscar Sañez said cyber sex is online porn and not part of the industry. "Cyber sex and illegal sex dens as reported recently is pervasive on the worldwide web. We should not attribute or compare cyber porn with our flourishing BPO industry," said CICT Chair Secretary Ivan Uy.

Industry groups said they were alarmed by the “wrong association” as this could have a negative impact to the image of the country which is now considered as the no. 1 offshore outsourcing destination.


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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by admin @ dimensionangle

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

by @ News Feed

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.


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 Gov't, BPAP Team Up to Improve Quality of Talent

by @ News Feed

The Philippine government is partnering with industry body Business Processing Association of the Philippines (BPAP) to further improve the skills of workers who are entering the business process outsourcing (BPO) workforce and help the industry in reaching its revenue goals.

Guaranteed jobs in the outsourcing industry for scholars

In a statement by Department of Budget and Management (DBM) Secretary Florencio Abad, a Training-for-Work Scholarship Program will be launched this year and in 2012. A total of 37,000 out of 58,000 scholars who will take part in the program will get jobs - guaranteed. BPAP Chairman Alfredo Ayala said this will need P350 million worth of investments per year. A faculty trainer development program will also be implemented. This will require P150 million in investments.

These initiatives will help in making sure that the country’s outsourcing industry will remain a major revenue generator for the economy. "For the employment and the revenue potential of the industry, we see this as a reasonable investment that the government should consider," Mr. Abad said.

By 2016, BPAP expects that the industry will have 3.15 million job opportunities and post revenues reaching $25 billion.


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.


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.


SME Sector in India and Germany Poses BPO Opportunities

by @ News Feed

Outsourcing Demand in German and Indian SMEs Seen

Indian companies must tap the SME sector in India and Germany for IT, BPO, and engineering services. This is according to the “Opportunities for Indian IT - BPO industry in Germanic Countries” report from the National Association of Software and Services Companies or NASSCOM, in association with consulting firm PricewaterhouseCoopers.

“There is a huge demand in the SME sector that has largely remained untapped, and verticals like automobile, manufacturing, and logistics have emerged as quick-win opportunities for Indian companies,” said Sankar, executive director at PricewaterhouseCoopers.

It was found out that there’s a huge BPO opportunity in the mid-market segment of Germany. Indian IT companies with a large pool of technically skilled employees should forge partnerships with German firms from that segment.

India is one of the preferred offshoring destinations of Germanic companies, while Eastern Europe and CIS states are favorable locations for nearshoring.




SEO Audit Deliverables: How To Deliver Your SEO Audit

by admin @ SEO Brothers

Now that we have already covered what you should cover in an audit I wanted to focus this post on the options you have when delivering the audit and what the SEO audit deliverables should look like. There are many choices each with their level of work for you, value to the client, and impact.…

The post SEO Audit Deliverables: How To Deliver Your SEO Audit appeared first on SEO Brothers.

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.


RP Call Centers Air Concern over Proposed US Bill

by @ News Feed

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

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

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


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.


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.


Outsourcing Contracts in UK Increase, ACVs Decline

by @ News Feed

A 16-percent increase in commercial outsourcing contracts from the government, valued at �4 million (�3.4 million) or more, was seen last year, according to Information Services Group's (ISG) EMEA TPI Index. More than half (55 percent) of outsourcing deals from the government sector last year - worth �4 million and above - are from public sector accounts.

Meanwhile, ISG Director Luke Mansell said more from the public sector are recognizing the advantages of multi-sourced deals by selecting several niche-based providers that are identified to excel and contribute more to organizations, rather than contracting large deals with a single provider. Moreover, this prompted service integration and management to increase as well.

One of the key processes subcontracted by the public sector is the Work Programme of the Department for Work and Pensions. It aims to provide jobs to the unemployed - through 18 prime providers. Other processes include procurement, IT and HR services subcontracted by Barnett Council.


5 Reasons Why You Should Outsource Your Search Marketing Efforts

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Today, companies are starting to see the benefits that search marketing can have for their businesses, and are starting to push more of their efforts towards marketing on the internet.The question is, should they handle their search marketing efforts in-house, or outsource it?There are obviously pros and cons of both, but w...

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.


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.


China Narrows Gap with India as Top Outsourcing Destination

by @ News Feed

China a Runner-up as Top Outsourcing Destination

Canada-based ICT research and advisory firm XMG Global said China is consistently narrowing the gap with India as the no.1 outsourcing location of choice.

China is expected to end 2010 with US$35.76 billion in outsourcing revenues, a 28.7 percent global market share. On the other hand, India’s outsourcing industry still has the lion’s share of the market with 43.7 percent.

China posted a 30 percent growth rate, while India only increased by 14 percent. XMG chief analyst Lauro Vives said the revenue gap between these countries is getting smaller. "India's weakening lead is due to the substantial efforts of China, the Philippines, and other offshoring destinations in building their capacity to attract significant amount of investment," Vives said, adding that India maintains its lead, but other offshore outsourcing destinations are starting to mature.

By the end of this year, the global outsourcing market is expected to post US$425 billion estimated total revenue.



BPO Firms View RP's Negative Publicity as Risk Factor

by @ News Feed

In a survey conducted by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) with BPO executives as respondents, results show that the negative perception of the country is a significant risk factor when it comes to outsourcing business operations to the Philippines.

Fifty-one percent (51%) of respondents viewed negative publicity as either level one, two or three risk factor, with 20% ranking it as level one.

Another factor that poses a threat to the BPO sector is the tight labor market. Forty-nine percent (49%) ranked the increasing insufficiency of knowledge workers as either a top concern, level two or level three risk factor.

Executives still think that the BPO industry will thrive despite these risk factors. In fact, BPAP Chief Executive Oscar Sa�ez said in a statement that the industry is on its way to reaching 20% growth rate this year.


Trade Body Predicts Indian IT-BPO Industry will Reach $70bn

by @ News Feed

Software Tech Products to Propel Indian IT-BPO

By the end of the current fiscal year, India’s IT-BPO industry will hit the $70 billion mark as demand for software technology products picked up. This is according to National Association of Software and Service Companies (Nasscom), the country’s IT industry and business process outsourcing (BPO) sector trade body.

From $12.8 billion in 2009, Nasscom expects a 14 percent compounded annual growth rate for the domestic IT-BPO services sector over the next two years. IT industry revenues rose by 5.5 percent as demand in US markets increased this year. The country’s top software services firm Tata Consultancy Services (TCS) as well as its competitor Infosys Technologies Ltd. reported good revenues in 2010.

Moreover, expansion of workforce is expected during this fiscal year with TCS planning to hire more than 50,000 people. Infosys, on the other hand, is expected to employ about 20,000 workers early next year.



PH BPO Earnings Grew nearly $2B in 2013

by @ News Feed

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.


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

by @ News Feed

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

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

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

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

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


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.


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


Using Anchor Text The Right Way In 2017

by Alexander Felsch @ NYC SEO Authority

After Penguin, Getting Anchor Text Right Is Key To Successful SEO Thanks to multiple Google algorithm updates commonly referred to as "Penguin updates", proper use of anchor text has never been more important. These updates have made it necessary to pay close attention to the frequency and position of anchor text to avoid over optimization [...]

The post Using Anchor Text The Right Way In 2017 appeared first on NYC SEO Authority.

Global ITO Spending to Exceed $251B this Year

by @ News Feed

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

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

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

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

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

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



�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.


PH BPO Driving Growth of Commercial Property

by @ News Feed

BPOs Fuel Office Space Occupancy in the Philippines

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

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

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

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

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

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


15% Growth in Employment Predicted for PH Voice Sector

by @ News Feed

Philippine Call Center Operations to Grow 15%

Benedict Hernandez, President of the Business Processing Association of the Philippines (BPAP), anticipates a 15% growth in employment for the already bullish voice segment of the Philippine business process outsourcing (BPO) industry. The country’s contact center sector has 493,000 employees and is seen to increase to 567,000 in 2013.
Hernandez noted that the employment growth in the voice sector is the most bullish, outpacing the average employment growth in the country by five times. This goes to show that the voice-based sector creates more jobs and is more profitable than other sectors.

Furthermore, Jojo Uligan, Executive Director of the Contact Center Association of the Philippines (CCAP), the voice sector provides higher wage rates. He added that the usual monthly salary of an entry-level worker ranges from P12000 to P13000, which is 38 percent more than the usual basic minimum of P9000.

According to Hernandez, the country has been named as the leading outsourcing destination for voice-based services and is the world’s best country in business English proficiency based on a study done by GlobalEnglish Corporation.



BPO Sector Expects Increase in Employment Rate for 2009

by @ News Feed

200% Growth in BPO Jobs Predicted for the Philippines

In these tough times when outsourcing becomes an ideal solution for companies as a cost-cutting approach and to stay afloat, the country's business process outsourcing (BPO) sector sees an employment growth rate of 200%. This is based on an online survey conducted by the Business Process Association of the Philippines (BPAP).

According to Gigi Virata, BPAP research director, 95 percent of companies which participated in the survey expect employment growth, and half of the respondents expect a 15 percent increase in their workforce requirements. Thirty-three percent of companies with 5000-10000 employees expect an increase of 11-15 percent in employment rate, while companies with 1000-15000 employees as well as small and medium-sized businesses expect the number of jobs to increase by 6-10 percent.


Rising Property Value in PH Fuelled by BPO

by @ News Feed

Outsourcing Services Sector Driving PH Real Estate Prices

Since the business process outsourcing (BPO) industry of the Philippines is expected to remain strong in 2014 and the country continues to prove that it is one of the premiere investment destinations in Asia, more office properties are set to be occupied. Experts, in turn, anticipate that property prices may increase in the near future.  
CBRE Philippines stated that property take-up will not be concentrated in Metro Manila alone, but will also be felt in the provinces. Metro Cebu, Mactan, and Clark were also identified as regions having the ideal environment for both leisure and business.

According to property analyst and program director for real estate and senior adviser for Wong Bernstein Business Advisory, Enrique M. Soriano III, emerging central business districts will be taking center stage as the office market continues to grow. Some of the non-CBDs are Davao, Cebu, and Iloilo.
CBRE Philippines noted that the growth of the local BPO sector is one of the key contributing factors to the accelerating property occupancy, alongside tourism and rising demand for expat housing.
Makati, Cebu, Boracay, and Bonifacio Global City are known to have properties that are sought after by the budding market, and CBRE said developers might look into investing in the segment.



US IT Spending to Bounce Back this Year

by @ News Feed

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.


More LATAM Business Executives Outsource Back Office Processes

by @ News Feed

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.


Research: Demand for HR Outsourcing Increases

by @ News Feed

According to the research 'Talent2 APAC Market Pulse Study' commissioned by Talent2 and conducted by Galaxy Research, HR outsourcing was seen as a viable solution by most HR executives (80-90%) who participated in the survey.

A total of 579 HR executives participated in the online survey from countries like Australia, China, Singapore, and Hong Kong. They cited HR outsourcing as the solution to manpower-related issues such as search and recruitment (64%), and employee retention (50%).

John Rawlinson, CEO of Talent2Group, pointed out: "This research reinforces that ongoing skills shortages are hampering organisations across Asia from finding the people they need to drive top line business growth. What's interesting here is that HR executives are focusing on different ways to address these challenges - namely through outsourcing, and investment in learning and development."

Other important issues for HR outsourcing in Australia are the following:

- Other than recruitment, employee development and HR consulting are the processes that may be outsourced.
- More than half of respondents say that outsourcing enables them to focus on their core business functions.
- Sixty-three percent (63%) say that service providers' lack of detailed information about the business is a major disadvantage of outsourcing business processes.


PH BPO Urged to Offer Specialized Services

by @ News Feed

During the Fourth International Outsourcing Summit in Makati City, Mahesh Venkataraman, Director of Singaporean consultancy firm PwC, said the Philippines' outsourcing sector should not only focus on a specific segment, but also try other things to become innovators and be more competitive and significant in a fast-paced industry.  

He added that competition is getting tougher and if service providers fixate on a single process, chances are another company will outshine them with less expensive and better offerings. Venkataraman mentioned the Philippines as an example, a widely known leader in the voice segment, which is now also making a name in other sectors such as medical transcription.

Meanwhile, Everest Group Vice-president for Consultancy H. Karthik stressed that service providers should focus on segments that offer more growth opportunities, specifically the ones they excel in. These include transaction processes, customer service, finance and accounting, as well as other knowledge process outsourcing (KPO) functions.
It is predicted that the industry will post a 19% increase in revenues this year, reaching $13.4 billion, while full-time employees are expected to jump to 772,000. The overall goal of the industry is to reach $25 billion in revenues and employ 1.3 million workers by 2016.



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.

UK Outsourcing Spending Decreases by 50%

by @ News Feed

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

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

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


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.


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.


Talent Supply Remains a Challenge for PH IT-BPO Growth

by @ News Feed

Low Supply of IT Talent a Challenge for the IT-BPO Sector of the Philippines

XMG Global’s founding President and Chief Analyst Lauro Vives said the growing demand for information technology-business process outsourcing (IT-BPO) will be a problem as the country currently lacks talent with the needed knowledge and skill set, and this will remain a challenge.

 This may even result to a monotonous growth predicted to be between 19 and 21 percent for 2012, whereas the Business Processing Outsourcing Association of the Philippines (BPAP) assessed a 20-percent growth for the previous year.

Vives said since the country’s BPO sector is in the process of moving towards providing high-end services, companies nowadays turn to hiring non-Filipino candidates to fill higher-value positions. He added that experienced local IT workers are beginning to see and grab more opportunities in other ASEAN countries like Malaysia, which can lead to an increase in labor costs in the country.

XMG also predicts that due to the high attrition rate among high school and college students, a one-percent decline in the number of educated candidates is possible within the next five years.

Meanwhile, global recession is anticipated to have a minimal effect on the country’s call center sector, and the economic woes in Europe may push companies to invest in outsourcing to the Philippines.

BPAP and CHEd have both signed a five-year partnership to improve the country’s curricula and provide training programs for teachers. A “BPO 101” class is proposed to be included to the educational system and a standard global competitive test (GCAT) for call center hopefuls is set to be implemented as an added measure. 


PH IT Outsourcing Posts Highest Growth Rate in 2011

by @ News Feed

According to the Business Processing Association of the Philippines (BPAP), the IT outsourcing segment posted a 37% increase in revenues last year, reaching $993 million. The entire outsourcing industry, on the other hand, only grew 24% at $11 billion. The BPAP statement shows that for 2012, more IT deals could be awarded due to the growing demand. The IT outsourcing sector also employed 49,908 IT professionals in 2011.

Growth in the BPO sector

Meanwhile, new processes such as knowledge process outsourcing (KPO) posted a 24% increase in revenues at $2 million. Furthermore, the non-voice segment employed nearly 130,000 candidates last year.

With the Philippines already established as a call center hub, a strong 21% growth rate was seen last year for the industry at $7.4 billion, getting the lion’s share (65%) of the entire BPO sector.

Another growing segment is game development which grew 13%, contributed $8 million, and employed 1,400 workers. For animation, the BPAP statement said a slight drop in contracts was seen last year as competition in back-room animation gets tougher. It posted $128 million in revenues with a workforce of 8,600 in 2011. For the healthcare information management outsourcing, the first survey done by BPAP showed that the segment employed 24,700 and contributed $277 million.


Data Privacy Act to Increase PHL Global BPO Position

by @ News Feed

The Data Privacy Act of 2012, or Republic Act 10173, will significantly increase the Philippines' position as one of the most preferred destinations for business process outsourcing (BPO) in the world, according to the Contact Center Association of the Philippines (CCAP).

Espie Bulseco, Learning Series Task Force lead of the CCAP Security Council, said that the Data Privacy Act will mandate all BPO firms in the country "to ensure protection to personal data resulting to an increase in foreign investors' confidence in growing their outsourcing requirements."

All BPO companies are required to comply with RA 10173 and are given a timeline to register with the NPC on or before Sept. 9, 2017, or one year from the effectivity of the implementing rules and regulations of the law.

Data Privacy Act to strengthen BPO capabilities

This will strengthen and increase the capability to handle outsourcing requirements of countries that have their own data privacy laws that restrict transfer of data of their residents outside their region unless the offshore provider is based in a country with existing privacy laws, which the Philippines have in place.

In addition, CCAP said that the Philippine government is fully enacting the law to ensure BPO firms will comply with the cyber security and data privacy regulations to safeguard user information.

To further strengthen the implementation of the Act, CCAP has come up with several measures that include data privacy, cyber security, and governance-related issues and practices to update the BPO industry.

According to Tonichi Achurra-Parekh, CCAP board director and trustee for CCAP Security Council, "The industry has been playing an active role in educating our members through forums as well as answering data privacy-related issues in some of our conferences."

This includes organizing one of Asia's biggest data privacy summits, the recently concluded Data Privacy Asia 2017, which was held on July 20, 2017, at Makati Shangri-La Manila.

"The summit is in response to that growing need to educate and also accelerate our expertise in our industry," Achurra-Parekh said.

CCAP president Jojo Uligan said that the summit’s objective is to position the Philippines as the "best-in-class" when it comes to guideline implementation and upholding data protection and privacy, given the amount of data that goes through BPO firms in the country.

"Part of the objective is to communicate the trends and the threat landscape on cybersecurity when processing millions of data, and to establish the Philippines as a country with advanced data protection and privacy regulations to address these threats, ultimately to make the world entrust their business data with us," Uligan said.

The summit also focused on global perspectives as international experts discussed the best practices and creative solutions concerning data privacy and cyber security issues to apply in the country.

Additional initiatives include supporting, aligning, and rolling out programs related to the BPO industry, with the help of the National Privacy Commission (NPC) through its head and chairman Raymond Liboro.

CCAP has also been briefed on the NPC’s short- and long-term projects and is expected to continue to see the support through in implementation and guidelines.

Digital Marketing Blog with EZ Rankings- Stay Tuned

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Get information at EZ Rankings blog for all latest SEO trends, design & development news to keep up yourselves updated .

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.


Employment in Healthcare Outsourcing Surges

by @ News Feed

One of the key revenue- and employment-generating sectors in the Philippines is the information technology - business process outsourcing (IT-BPO). According to the President and CEO of the Information Technology and Business Process Association of the Philippines (IBPAP), Jomari Mercado, the outsourcing sector contributed nearly US$13.2 billion in export revenues last year, a 19 percent increase from 2011. It was also found that the sector created 137, 066 more jobs by year end, reaching a total of 776,794.

Meanwhile, the healthcare information management segment was found to have posted the highest increase in employment last year.  

A report done by the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP) indicated that employment in the healthcare outsourcing sector increased 80 percent in 2012, reaching 45,000. Revenues contributed by the sector also grew 66 percent to $460 million.

Another sector which showed noteworthy growth is game development. Alvin Juban, President of the Game Developers Association of the Philippines (GDAP), said the game development industry's revenues grew three-fold from $14 million in 2011 to $50 million in 2012 and employed 3,500.

The call center segment is still the leading job producer in the outsourcing sector.


Survey Says Cloud-based Outsourcing is the Next Big Thing

by @ News Feed

Cloud computing will take center stage in the world of outsourcing. In a survey conducted by the International Association of Outsourcing Professionals (IAOP), about two-thirds of the outsourcing companies said they intend to pursue cloud computing this year to improve management of customer relations and business operations.

According to Michael Corbett, chairman of IAOP, cloud-based outsourcing is likely to be one of the biggest changes in the industry. �Speed and flexibility are the biggest benefit customers see in these solutions.�

From more than 110,000 IAOP members, 62 percent indicated that they outsource to support their business opportunities in the future, while 80 percent said they plan to have new outsourcing ventures. Survey participants are also optimistic about the growth of this business solution.


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.


Five Questions to Determine If You’re Doing Your Website Copy Right

by 365outsource_admin @

Almost every business has an official website, but many companies are making web copy mistakes that prevent them from maximizing the benefits of having their own website. Are you committing any errors that make your website less appealing and cost you sales or conversions? Here are five questions to help you find out.   Are…

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Work Sent to India Predicted to End in 8-10 Years

by @ News Feed

According to a report presented by strategic consultancy firm The Hackett Group during the Nasscom Global In-House Centers (GIC) Conclave, offshoring of jobs from the US and European countries will begin to decline in 2014 and eventually come to an end in 8-10 years.

The offshoring research team at The Hackett Group surveyed 4,700 US and Europe-based companies in the $1 billion revenue bracket. The report showed that 2.3 million positions in finance, IT, procurement, and HR will be filled by offshore providers in 2016.

Martin Geerling, Director at The Hackett Group said India, the most popular offshoring destination, should find or develop a bigger market to continue growing because the boom in demand for outsourcing brought about by the 2009 economic meltdown is diminishing. In line with that, Hackett anticipated that the 40% share of India in the business process outsourcing (BPO) industry will drop to 38% in 2013.

Meanwhile, Nasscom said offshore captive centers of retailers, large banks, and insurance companies account for $14 billion of India's $100-billion IT-BPO sector. The Hackett Group also noted that of the 8.2 million exported jobs from North America and Europe since 2002, only 4.5 million will be retained in 2016. On the other hand, Partner and Head of ITBPO of KPMG Pradeep Udhas did not agree with the report from Hackett, saying that there's still ample room for India to grow.


Excessive Holidays Affect PH BPO Industry

by @ News Feed

Excessive Holidays Affecting BPO sector in the Philippines?

As the Philippines becomes one of the strongest outsourcing destinations globally, the Business Processing Association of the Philippines (BPAP) pleaded once again to the local government: “We don’t like more holidays.”

Raymund Lacdao of BPAP is hoping that the Aquino administration will respond accordingly to their call that too many holidays affect the outsourcing sector’s earnings. Since there are 22 holidays every year, he says BPO companies, especially the ones that operate 24/7, are forced to increase budgets for operational and labor costs. “The [declared] holidays in the Philippines has huge impact to our operations. We are serving other countries. It costs us a lot of money.” Another factor he says is the 60-day maternity leave for women and the impending approval of its extension in Congress. This will then increase the impact to the “cost of doing business” in the country.

The outsourcing sector is one of the major industries that helps in keeping the Philippine economy to stay afloat, and the government should look into the internal problems to reinforce the country’s weaknesses.
The diminishing talent pool as well as cut-throat competition are also alarming issues that may put off potential clients. Lacdao said it is possible for the sector to employ at least 4.5 million people in the next six years due to the growth of complex export services such as accounting, human resources, and financial services, among others. However, industry growth is somewhat threatened by issues faced by local BPO companies and lack of consideration by the government.


How To Use Crowd-Sourcing Platforms to Outsource Small Tasks at Scale

by Matthew Capala @

In this discussion Matthew Capala speaks on how to start executing creative ideas and producing original content while looking for affordable implementation when your goal is to expand scale and capabilities on a shoestring. Bootstrap Marketing Masterclass (4/10): Use Crowd-Sourcing to Outsource Small Tasks   Subscribe to our YouTube channel to get notified about the […]

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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.


PH ITO Market Seen to Grow Two-fold by 2016

by @ News Feed

The Philippines is Third Largest Supplier of IT Talent

Industry Development of the Information and Communications Technology Office of the Department of Science and Technology (DOST-ICTO) Deputy Executive Director Alejandro Melchor III announced during a meeting with the Philippine Software Industry Association (PSIA) that the country’s information technology outsourcing (ITO) industry can grow two-fold and get a bigger share in the global ITO market by 2016.

He then compared the ITO sector to BPO, saying that it bares similar benefits to the economy. He also noted that ITO has a rapid growth rate propelled by emerging trends that are considered as game changers. Some of which are the developments in technology and evolution of knowledge economy.

Melchor said the Philippines is the third largest supply of IT talent in the Asia Pacific Region (lagging behind India and China). The country has a talent pool equipped with diverse IT skills and is one of the most economical IT outsourcing destinations in the world.

On the other hand, DOST Secretary Mario Montejo said the ITO industry robustly grew last year at 37 percent and contributed about $1 billion in revenues, employing 50,000 workers.

DOST-ICTO Undersecretary Louis Casambre believes in the country’s potential to become a premier ITO destination as they are developing programs like ICT Public Private Partnerships (iPPP) with the help of PSIA. Nora Terrado, PSIA’s President said it is possible for the Philippines to become a leader in the ITO segment because it is already equipped with skilled and talented Filipino IT workers. 


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.


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.


SEO Meta Descriptions: The What, Why, and How

by Jennifer Johnson @ Alexa Blog

When it comes to using content to improve the value of a webpage, it isn’t all about the copy on the page. There are also hidden HTML attributes and metadata blurbs you can add to the back end of a webpage to send useful signals to both search engines and users. An important part of [...]

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Egypt's 5.8% Q1 Growth Rate Driven by ICT Sector

by @ News Feed

Egypt Wins Big in ICT Outsourcing Contracts

Egypt’s Information and Communications Technology (ICT) sector posted a growth rate of 11.3 percent. This helped the country’s economy to grow 5.8 percent in Q1 of 2010.

When it comes to outsourcing, Egypt got big deals from Sykes Enterprise and Stream Global Services and other companies in 2009. "We have had a positive start to the year with new companies investing and local companies developing and expanding their capabilities and services. We are confident that the sector will continue to grow during the remainder of 2010 and that we will see more multinational companies expanding and outsourcing their business to Egypt," said Dr. Hazem Abdelazim, CEO of Egypt's Information Technology Industry Development Agency.

Aside from investing in infrastructure, the country also focuses on reducing piracy, with its rating currently at 59 percent.  Abdelazim said this is lower compared to piracy ratings of other destinations.



PH Economy Seen to Reach the $-trillion Mark in 2030

by @ News Feed

According to Rajiv Biswas, Chief Economist at IHS Asia-Pacific, the Philippines - formerly known as "the sick man of Asia" - is well on its way to becoming one of the top three players in the Southeast Asia region with an economy worth trillions of dollars in 2030.

The growth is expected to be driven by factors such as the information technology-business process outsourcing (IT-BPO) sector and dollar remittances from an estimated 10 million overseas Filipino workers.

Biswas shared in a statement before the inauguration of the World Economic Forum on East Asia meeting in Manila that the Philippines has improved tremendously over the last decade. The executive added that the Philippine economy is capable of growing 4.5-5 percent annually for the 2016-2030 period. At present, the Philippine economy is worth $280 billion, and with the growth rate projections, it can transform into $680 billion in 2024, and a GDP of $1.2 trillion by 2030.

However, Biswas advised that the country has to work on the business environment and other industries such as tourism and manufacturing to attract more investors.


Companies Urged to Organize IT Infrastructure Before Outsourcing

by @ News Feed

David Kline, CIO of Discovery Communications, said companies should �clean� their IT infrastructure first through virtualization and consolidation before transferring it to a service provider.

"You could do an offshore � where your management staff is saying, 'It's over there. It's not my problem anymore.' And that's not true. IT's still your mess. Get it as clean as you can get it," Kline said in a keynote address at the Global Sourcing Forum and Expo. "Know yourself. Know your limitations. It is a huge proposition to do global sourcing."

Security credentials of the service providers must also be taken into account before the transfer of IT tasks. According to a VanDyke Software report, 61 percent of the IT professionals who took part in the survey said there was an intrusion in the IT systems that they outsourced within the past two years.


BPO Investors still Drawn to Metro Manila

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Metro Manila Philippines Continues to Attract Investors

Even though the Philippines is promoting the "Next Wave Cities" as feasible alternatives for business process outsourcing (BPO) operations, a lot of foreign investors still favor Central Business Districts (CBDs) in Metro Manila.

According to Jose Mari Mercado, President and CEO of the IT and Business Process Association of the Philippines (IBPAP), a handful of BPO firms are said to have expanded in remote cities and provinces, but majority still choose to set up operations in the National Capital Region. He added that one of the key factors that drive BPOs to continue to patronize Metro Manila is that it presents well-planned development. Mercado pointed out that most of the time, Metro Manila is the first choice of investors in North America.

Bonifacio Global City (BGC) is one of the hubs cited by real estate experts as a preferred location due to its growing supply of office space and well-developed infrastructure. The Vertis North by Ayala Land Corp. is another CBD tagged as an emerging BPO hub in Quezon City. It is one of the six growth centers unveiled by Ayala this month.

"Next Wave Cities" are chosen by IBPAP based on these factors: covered population, educational environment, telecommunications infrastructure, local Philippine Economic Zone Authority (PEZA) zones, etc.

Since BPO expansions are sources of employment opportunities, cities outside Metro Manila consider them as important investments. Canadian Chamber of Commerce of the Philippines President Julian Payne said the Philippines is a strategic location for BPOs because of its culture, English language proficiency, and time zone.


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.


ITO Providers Aiming for Growth

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According to a study done by IT consultancy firm Gartner Inc., growth is once again included in the IT outsourcing (ITO) providers' objectives.  

Sixty-two percent said growth is their number one goal and they are planning to achieve that by making use of aggressive marketing plans and investments in cloud, utility, and 'as a service' offerings.

Vice-President and distinguished analyst at Gartner, Rolf Jester, said, "It is clear that providers are optimistic despite considerable uncertainty in the global economies. However, we predict the ITO services market will reach USD 313.2 billion in 2011, a growth of 6.9 percent from 2010, and will reach 4.6 percent compound annual growth rate through 2015."

Survey participants, consisting of 47 ITO providers or 62 percent of the total ITO segment, came from all major geographies and all types of ITO services which include infrastructure, cloud services, and applications.

Half of the outsourcing providers who participated said they would allot 2 to 5 percent of their 2011 earnings to marketing, a figure higher than the usual 1 to 3 percent for IT services providers.


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

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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.


PH Senator Defends Data Privacy Act amidst Journalists' Woes

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After the Philippine Press Institute, Kapisanan ng mga Brodkaster sa Pilipinas, and the National Union of Journalists of the Philippines (NUJP) rejected the Data Privacy Act's penalty provisions, Senator Edgardo Angara quickly retorted through a statement that the proposed bill aims to reinforce the Philippines' e-commerce and business process outsourcing (BPO) sector, not to suppress the freedom of speech.

The organizations are keeping an eye on Sen. Angara's imminent decision to urge the bicameral congress to scrap the penalty clauses which are believed to impede press freedom. NUJP Spokeswoman Veronica Uy said they believe that the Senator will keep his promise regarding the omission of the penalty clauses.
Angara, who is also Chairman of the Senate Committee on Science and Technology, stressed that even if the proposed bill aims to protect and maintain the integrity and confidentiality of personal data, it will not affect journalists who publish �leaked� information. In fact, he pointed out that Section 4 of the Data Privacy Act in the bicameral conference version excludes �personal information processed for journalistic, artistic, literary or research purposes�. Civil servants and government officials are excluded as well.

Angara likewise reiterated that the Constitution clearly recognizes press freedom as well as a person's right to privacy. Also, the Data Privacy Act is an added protection for personal information stored and shared online or other ICT [information and communication technology].


Indian BPOs Testing IT Waters to Survive

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Leading Indian BPO companies are enhancing their IT skills and expertise to ensure their survivability in the global market and retain existing contracts, which are at risk of being won over by IT firms that offer integrated IT-BPO services, reports Indian newspaper The Economic Times.

Industry giants IBM and Accenture, which have been reported by Horses for Sources as one of the Big 4 cornering major multimillion dollar deals, are threatening the client portfolios of standalone BPO companies, says the newspaper.

Deepak Patel, CEO of one of India's biggest global outsourcing firms, Aditya Birla Minacs, tells the newspaper that the BPO industry is "evolving from being process-oriented to becoming more technology-intensive as customers look for the entire value chain of services."

The company has begun offering enterprise application support, RIM, ADM, and business analytics, alongside their usual BPO offerings.

The Economic Times

2018: Healthcare IT Outsourcing Market's Value Seen to Reach $50.4B

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The recently released "Healthcare IT Outsourcing Market - By Application [Provider (EHR, RCM, LIMS) Payer (CRM, Claims Management, Fraud Detection, Billing) Life Science (ERP, CTMS, CDMS) Operational (SCM, BPM) & Infrastructure (IMS, Cloud Computing)] & Industry - Global Forecast To 2018" report predicted that the global HCIT outsourcing market will be valued $50.4 billion by 2018, from $35 billion in 2013, by means of a CAGR of 7.6 percent.

Factors fuelling the healthcare IT outsourcing industry

The report identified the rise in demand for affordable healthcare amongst health institutions and facilities around the world as one of the key factors fuelling the HCIT industry. Since both the public and private sectors are seeking better quality healthcare, this then adversely affects the costs for healthcare providers. Reasons that are believed to be causing the rise in healthcare costs globally are lack of universal coverage of insurance, slow recovery from recession in some countries, impeded cash flow in healthcare organizations, costly innovations, and the growing number of aging population in selected regions. The rise in costs prompts providers to look for ways to reduce expenses and one of which is on the IT side (installation and application).

The report also included information on the opportunities in key markets: North America, Europe, APAC, and rest of the world. The market is then segmented according to application into provider outsourcing, payer outsourcing, life sciences outsourcing, operational services outsourcing, and infrastructure outsourcing. The market has also been segmented by industry.

Organizations seen in the market are healthcare insurance companies, healthcare providers, clinical research firms, biotechnology companies, and organizations in the pharmaceutical segment.


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US Anti-outsourcing Bill to Affect Offshore Call Centers

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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.


PH Call Centers Remain Confident despite Stronger Peso

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Call centers in the Philippines are not alarmed with the impressive performance of the peso against the dollar for the past consecutive weeks, with the peso opening at P41.61 to the US dollar last Wednesday. In a press briefing, the Contact Center Association of the Philippines (CCAP) said they are not "overly concerned" with the rise and fall in foreign exchange rates.

During the media launch of the International Contact Center Conference & Expo (ICCCE) 2012 in Makati City, CCAP President Benedict Hernandez said they are always on the lookout for the ups and downs of the exchange rate, but are not fixating on the issue. The Philippines is still perceived as a feasible destination for call center operations.

Filipino call center employees make PH leading destination for voice-based processes

Hernandez added that the work ethic and skills of Filipino call center employees are key factors that make the country a leading destination for voice-based processes.

On the other hand, CCAP Executive Director Jojo Uligan said should the peso appreciate beyond P41, it would be detrimental to call centers. Moreover, he said it will affect the operations of call centers as expenses are in pesos but clients pay them in dollars. If the peso further strengthens against the dollar, they would have to increase pricing of services. This will then result to more challenges as existing clients will surely be displeased and charging new ones at a higher rate will result to fewer leads.

Issues that will affect the business process outsourcing (BPO) industry, including the appreciation of the peso, will be discussed at the ICCCE 2012 on September 18 and 19 at the SMX Convention Center in Pasay City.


Everest Predicts Global Procurement Outsourcing to Grow 20%

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Global procurement outsourcing growth

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

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

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


PH GDP Growth to Surpass China's in 2016

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The Philippine Economy could Grow Faster than China's

In Citibank’s recently released ‘2015 Annual Outlook’, the Philippines is pegged to outperform China in terms of economic growth in 2016 on account of the country’s growing foreign direct investments, strong domestic upswing in business and industry, and highest-ever remittances from overseas Filipino workers. The forecast also stated that India will likewise outpace China.   

On the other hand, China is expected to slow down as it gears up in addressing national challenges such as high public debt, over-investment in real estate and infrastructure, reduced domestic consumption, and regional imbalances. China is also said to be preparing for a “more sustainable” GDP growth.

Last year, the Philippines posted an economic growth of 6.9% during the fourth quarter. As for the entire fiscal year 2014, the country posted a GDP growth of 6.1%, which is similar to the rates posted by other major Asian countries. Growth is predicted to reach 6.5% in 2015, and 7.3% for 2016.

China posted a growth rate of 7.3% last year, and 2015 and 2016 estimates are 6.9% and 6.7%, respectively. The report also pointed out that China is on thin ice as it continues to work on both growth and reform. This could lead to a drop in GDP growth where expansion could fall somewhere in the range of 6-7%.

Growth in the Philippine economy is linked to the continuous efforts of President Benigno Aquino III to improve the economy by means of strict anti-corruption campaigns and improved fiscal management reforms. These then resulted to upgrades by major debt watchers - right on the heels of an increase in foreign direct investment. Another growth factor is the increased public spending particularly in the business process outsourcing (BPO) industry and construction. Large-scale investors in the car and electronics manufacturing industry are also expected to expand operations in the country.


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Companies could Save �60,000 through Back Office Outsourcing

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According to InsideOut, outsourcing specialists to the recruitment sector, more and more companies are considering back office outsourcing. Instead of handling back office functions in-house, transferring those to a service provider can translate into savings of about £60,000 a year.

Back office outsourcing an economical option for recruiters

As the economy bounces back from recession, outsourcing back office processes is an economical option for recruiters, and will enable them to focus on core tasks. “Employing a couple of people in your accounts department means not only is there the cost of salaries, but also training, office space, office supplies and infrastructures like IT,” said Paris Sheppard, InsideOut Managing Director. “For around £10,000 a year, recruiters could be outsourcing their payroll and invoicing and not only saving money on paying salaries.”


IT Outsourcing Grows as Firms Look for Added Value

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

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

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


Companies can Benefit from Outsourced Contact Centers

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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.


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.


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.


Bacolod Ranked Third in List of Top 10 Next Wave Cities

by @ News Feed

Bacolod Moves Up in the IT-BPO Location List

From the 5th spot last year, Bacolod moved up two notches to No. 3 in the list of Top Ten Next Wave Cities for IT and BPO. This is based on infrastructure, business environment, crime rate, and other factors.

According to Mayor Evelio Leonardia, this recognition can be attributed to the continued trust of businessmen in the government, infrastructure, among others. Bacolod was also named as the country’s Most Business-friendly City. Recognizing the big role of outsourcing in the local economy, Leonardia said they will continue to initiate programs that will help provide more job opportunities in the IT industry for the people of Bacolod.

This recognition for Bacolod was awarded by the Commission on Information and Communications Technology, Business Process Outsourcing Association of the Philippines, as well as the Department of Trade and Industry.

Here’s the list of Top Ten Next Wave Cities for IT and BPO:

  1. Davao
  2. Sta. Rosa
  3. Bacolod
  4. IloIlo
  5. Metro Cavite
  6. Lipa
  7. Cagayan de Oro
  8. Malolos
  9. Baguio
  10. Dumaguete



PH Telco Giant Eyes Expansion for BPOs

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Philippine Long Distance Telephone Co (PLDT), the largest telecommunications company in the country, recently announced that it has finalized a service expansion program worth P1 billion for the growing business process outsourcing (BPO) industry of the Philippines.

The telco giant struck a deal with Cisco for the upgrade and reinforcement of its core network. As for the international network upgrades, they partnered with Ciena, a network systems specialist.

According to the Executive Vice-president and head of Enterprise, International and Carrier Business Group of PLDT, Ernesto Alberto, they want to provide an unremitting support to multi-media heavy enterprises that need social networking, video streaming, and advanced applications for their business.

He also stressed that PLDT's upgrades would be advantageous to industries that rely on international connectivity such as the country's BPO and banking and finance industries.

He added that their efforts in the telco industry have contributed to the growth and sustainability of the Philippines as a business hub for investors.
In line with that, the Information Technology and Business Process Association of the Philippines (IBPAP) aims to reach $25 billion dollars in revenues for 2016.


IT Propels Outsourcing Growth in EMEA

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Data from ISG (Information Services Group) indicates that IT outsourcing is fuelling outsourcing activity in the EMEA (Europe, Middle East, & Africa) region.

EMEA is said to be one of the key markets of the entire outsourcing industry. The Q2 2014 Outsourcing Index, which covers commercial outsourcing and large deals amounting to �4 million (�3.2 million), indicated that for the first two quarters of 2014, outsourcing activity in the region clocked in at �5 billion (�3.95 billion). This is nearly a third larger than the value posted by the region last year, and the deals signed likewise increased by 25 percent.

On the other hand, ISG noted that outsourcing activity in the UK remained stable, but total contract value grew by six percent to �1.4 billion (�1.1 billion). However, even with the growth, the number of large deals dropped from 92 to 83 year-on-year.

The IT outsourcing segment in the EMEA region peaked during Q2 with a total contract value of �2 billion (�1.6 billion).

David Howie, a partner at ISG, explained that EMEA remains as the leader of the global outsourcing market. He added that demand, particularly in Germany and France, contributed to the volume and value of contracts during the first half of 2014. Moreover, he said more deals are awaiting approval and execution in the second half of 2014. As for annual contract value, he said 2014 will definitely surpass 2013 figures.

Meanwhile, the total contract value posted by France is �930 million (�735 million), putting it to the second spot after the UK. Germany, on the other hand, experienced a 40-percent increase year-on-year on contracts.


e-Services Event to Highlight KPO Services

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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.




Eastwood City Cyberpark Launches New BPO Building

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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.


PH Economy Seen to Grow 6% Annually up to 2020

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

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

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

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

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


PH to Post 7% Growth in 2015

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According to Trade Secretary Gregory Domingo, lower oil prices and an increase in foreign direct investments will contribute to the growth of the country next year.

From January to September, the Philippine economy’s GDP showed a growth rate of 5.8 percent. Meanwhile, the government is targeting a 6.5-7.5 percent growth for 2014, and 7-8 percent growth next year.  

The DTI official stressed that the Philippines outperformed Malaysia, and that foreign direct investments have steadily increased in the past four years. In 2010, foreign direct investments amounted to $1 billion and $2 billion in 2011, $3.2 billion in 2012, and $3.8 billion last year. During the first three quarters of 2014, the Philippines posted $4.8 billion in foreign direct investments. Domingo predicted that by the end of this month, it will exceed $5 billion.

Foreign direct investments grew 61 percent to $4.8 billion, largely caused by the strong manufacturing and business process outsourcing (BPO) sectors. This also resulted to the latest credit rating upgrade the country received from debt watcher Moody’s.


India, China, and RP Named as Top BPO Players

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Philippines is third best BPO destination

As India and China registered outsourcing revenues worth US$48 billion and US$28 billion respectively, and the Philippines with an estimated US$7.3 billion by the end of 2009, these countries are the top players in the global outsourcing scene. This is according to a report made by XMG Global, a research firm in Canada.

The world's total revenue for this year is poised to reach US$373 billion. Vincent Altez, XMG Global senior analyst, said that India's market share will reach 44.8 percent, while China will account for 25.9 percent. The Philippines is considered as the third best BPO destination, and the country is expected to generate 6.9 percent of the global outsourcing revenue.

"We are seeing new levels of normalcy in which the recession has provided the opportunity to rationalize, and shift work to other offshore destinations other than India,” Altez said.


RP hosts e-Services Global Sourcing Conference

by @ News Feed

The 10th e-Services Global Sourcing Conference and Exhibition is being held in the Philippines having been recently dubbed as “Best Outsourcing Destination of the Year”. The Philippines won the award as part of the 6th annual National Outsourcing Association Awards in the United Kingdom – its second since winning the award in 2007.

According to Philippine Star, the event is an annual trade show spanning two days to bring together outsourcing providers from around the globe. This year's show promises 200 exhibitors and more than 2,000 trade buyers. The Department of Trade and Industry is preparing for the event through the Center for International Trade Expositions as part of the continuing effort to promote the Philippines as the premiere outsourcing destination.

Philippines moves up as one of the top markets for global investors

Research by UK Trade & Investment indicates that the Philippines has moved to 9th among the top markets for global investors in 2009 – up 14 spots from last year. The e-Services event will be held on February 8 and 9 at the SMX Convention Center in Pasay City, Philippines.


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Mid-sized Firms Outsource more than Large Enterprises

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The mid-sized market was seen outsourcing more compared to larger enterprises while using different suppliers.

Increase in BPO and ITO contracts

The mid-sized market posted a 124% increase in business process outsourcing (BPO) and information technology outsourcing (ITO) contracts through the past five years, with each valuing between $10m and $25m, according to a Forbes G2000 report shared by Information Services Group (ISG).  Meanwhile, contracts breaching the $25m mark increased by 72%.

Much of the growth identified in the G2000 range came from the smallest division which is composed of companies that have not or have minimally outsourced before, said Deborah Card, Partner at ISG. She added that only 25% to 30% of the firms belonging to the group have tried outsourcing before 2008.

Moreover, Card said some of the factors that make outsourcing marketable to mid-sized firms are its cost saving feature and the fact that it is easier for them to do so because they do not have legacy systems.

Other processes which are usually procured by the segment are Infrastructure as a Service (IaaS), Software as a Service (SaaS), and Business Process as a Service (BPaaS), but for companies that do not want a full-on outsourced operation, they turn to the cloud.

However, Card said those that are new to outsourcing are showing the same mistakes that bigger organizations made before. These include lack of preparation and planning for management turnover and poor forecasts on what to expect out of the operation.


Growth Expected in the Procurement Outsourcing Market

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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.


Manila posts $6.2b account surplus despite crisis

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The central bank reports that the current account surplus in 2009 totaled $6.2 billion due mainly to income from foreign investments in the business process outsourcing (BPO) and tourism sectors. The surplus was recorded despite the global financial crisis and is a stark contrast to the $4.9 billion deficit posted in 1997 at the start of the Asian currency crisis, Manila Standard Today said. 

According to Bangko Sentral Deputy Governor, Diwa Guinigundo, the total marks a 48 percent increase from the $4.2-billion surplus recorded in 2008 - up 3.8 percent from the gross domestic product of the same year.

The Philippines suffered a merchandise trade deficit of $4.09 billion throughout the majority of 2009 but that was offset by the $7.3 billion in revenue from the business process outsourcing (BPO) sector.  

According to the Toursim Department, the surplus was supplemented by tourists infusing $3 billion to $5 billion in receipts yearly.

The peso is expected to trade at 46 to 48 against the dollar this year as a result of the account surplus.



More BPO Spaces Expected in 5 Years

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Growth in BPO Office Supply Anticipated

According to Rick Santos, President at CBRE Philippines, demand for residential and commercial properties remains positive for the coming years, fuelled by unrelenting growth of residential, gaming and leisure, and business process outsourcing (BPO) industries. He also said buildings will become more eco-friendly and more sustainable to cut costs.

In line with that, developers are expected to put up more offices as the BPO sector is predicted to continue to grow. Moreover, demand for residential condominiums is high as units become more and more affordable.

About 80 to 90 percent of office real estate will be used by BPOs, said CBRE Global Corporate Services Vice Chairman Joey Radovan. His forecast is paralleled to the sector’s targets of increasing the workforce from 1.2 million to 1.4 million and $26 billion in revenues by 2016. He added that even if the economy faces a stronger peso, the quality of the Philippine workforce is what really matters.


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.   


Economic Growth Seen as PH Enters New Demographic

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

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

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

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

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


Report Shows Increase in Number of US Service Buyers

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Volume of US Offshore Outsourcing Operations Increased

Based on the fifth annual report of the Duke Offshoring Research Network, in collaboration with The Conference Board, the number of US companies with offshore operations increased from 22% in 2005 to more than 50% in 2008. The report also shows that more than half of these service buyers have plans to expand their operations overseas.

According to Ton Heijman, senior advisor at The Conference Board, companies that have successful offshoring practices are able to cut costs, meet target service levels, and have better relations with service providers. The said report further indicates that because of the tough competition for highly skilled domestic workers, small and medium-sized businesses (SMBs) are opting to transfer some of their business tasks overseas and are finding new talent in Brazil, Sri Lanka, Egypt, and Russia.


Latest Report in the Healthcare IT Outsourcing Market

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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.


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BPAP: 2012 PH BPO Revenue may Reach $14B

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By 2012, business process outsourcing (BPO) firms in the country can post revenues reaching US$14 billion.

Revenue growth for BPO firms

Fred Ayala, Chairman of industry body Business Processing Association of the Philippines (BPAP), said non-traditional outsourcing services such as engineering, sales and advertising, game development, and other knowledge-process outsourcing services are making the mark in the local outsourcing scene. He added that this year, they are expecting the industry to post about $11 billion in revenues, with a 20-percent growth next year as BPO firms expand service offerings that include new knowledge-intensive processes.

Meanwhile, BPAP Senior Executive Director Gillian Joyce Virata said the country’s BPO industry may post P2- P3 billion more if they continue to offer non-voice outsourcing services.

Voice-based outsourcing gets the lion’s share of the entire Philippine BPO industry. In fact, the country is now considered the top call center destination. Virata said that while voice-based work will still grow or even double in the next few years, its portion in the industry will decrease since non-voice services are growing faster.

Finding the right talent remains a challenge, which is why BPAP continues to ramp up its initiatives to further improve the skills of available workers in the country.


9.29% CAGR Seen for the Medical Billing Outsourcing Market

by @ News Feed

With the help of a team of industry experts and a comprehensive analysis of the medical billing outsourcing market, the report “Global Medical Billing Outsourcing Market 2015-2019” was recently completed and released. The report predicts that the market will grow at a compound annual growth rate (CAGR) of 9.29% from 2014-2019. It also covers the market’s growth prospects, key providers, and the overall market landscape for the following years.

Other aspects of the market were also tackled. These include healthcare spending which is anticipated to increase and strain healthcare systems, insurers, and governments. Spending is mainly driven by the fact that most developed countries have an aging population and lower fertility rate. As for emerging countries, spending is seen to be propelled by the increasing volume of chronic disease, poor infrastructure, and inadequate patient care.

Healthcare organizations are also seen moving towards outsourcing models that aim to improve agility and control as increasing cost pressures, increased need for risk and compliance management, process inefficiencies, and having closer ties with business goals continue to cause problems to their operations.

Tools such as outsourcing enable providers to improve their revenue cycles which lead to a balanced operation. Moreover, outsourcing reduces cash conversion cycle, improves unsettled transactions, and all in all, aids in improving the ROI during a specific timeframe.

The key providers in the medical billing outsourcing market are Accenture, AGS Health, Cognizant Technology Solutions, GeBBS Healthcare, Genpact, HCL Technologies, and Medusind. Medical billing companies, on the other hand, are said to be looking to expand operations in emerging regions.


PH Cities Join Top Outsourcing Hubs in the World List

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The Philippines is one of Top Outsourcing Hubs in the World

According to the recent ranking of top outsourcing destinations in the world from Tholon’s, an investment advisory firm, Manila placed second, outpacing one of India’s strongest cities - Mumbai.

Cebu, another city in the Philippines, took the 8th spot. Other Philippine outsourcing hubs were also included in the top 100 list: Sta. Rosa, Laguna, Davao, Iloilo, Bacolod, and Baguio.

Meanwhile, other reports indicated that the demand for manpower in the business process outsourcing (BPO) industry is rising, and it is looking to target 1.3 million full-time Filipino employees by 2016.

However, in order for the industry to reach its target, they would have to address a number of challenges first. Gillian Joyce Virata, Senior Executive at the IT and Business Process Association of the Philippines (IBPAP), said applicants are screened based on their critical thinking, computer know-how, and good command of the English language. In fact, for every 100 BPO applicants for entry-level positions, only nine applicants pass the initial exams and interview. Twenty to 40 of the 100 are subject to training while the rest are rejected due to lack of the needed skills.


PH Breaks India's Streak in Outsourcing Index

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Manila Overtakes Mumbia in Outsourcing

The latest Tholons Top 100 Outsourcing Destinations report revealed that the Philippines moved up as one of the top destinations for business process outsourcing. Manila, Philippines is now number two in the outsourcing index, pushing Mumbai to the third spot and breaking India’s potential top six spots in the list.

The rest of Indian cities in the top 10 are Bangalore - taking the top spot, Delhi at fourth, Chennai at fifth, Hyderabad at sixth, and Pune at seventh spot.

Manila and Cebu City, ranked 8th, retained last year’s positions, whereas the last two spots in the top 10 are Krakow, Poland (9th), and Shanghai, China (10th).

Mark Maddocks, CIO at Cambridge University Press, noted that they have chosen the Philippines as an offshore destination for its low attrition rate, low cost of operations, and stable wage inflation rates.

The organization started its first offshore captive in the country nearly five years ago, with 40 staff composed of software developers, testers, and support for online digital products. It now boasts 250 people divided into 18 teams working on different processes, and is anticipated to reach 300 by next year.


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Positive Outlook Seen for PH Economy

by @ News Feed

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

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

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

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

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


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NZ Firms Seen to Invest More in PH

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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.


DOST Pledges Support to BPM Industry

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Philippine Outsourcing Industry Supported by DOST

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

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

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

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

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


WB Says PH to Continue Steady Growth

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The economy of the Philippines will continue to grow steadily for 2011 and 2012, says the World Bank (WB) in its latest Global Economic Prospects 2011 report.

The report, which the WB publishes twice annually, estimates that the country’s 6.8 percent growth in 2010 will stabilize to 5 percent in 2011 then 5.4 percent in 2012.

GDP growth stronger than expected

During the launch of the GEP 2011, Eric Le Borgne, World Bank Senior Economist for the Philippines, commented that, "GDP growth has been stronger than expected, reflective of rapid recovery and election-related spending amidst a strong external position which has led to a sovereign credit rating upgrade in November by Standard and Poor's."

The senior economist explains that the continued economic growth of the Philippines relies on the assumption that the strong investor confidence will be supported by the government in much-needed reforms and in improving the overall investment climate.

Although the country faces risks from the economic downturn of developed countries, Le Borgne says the outlook for the country’s top performing sectors remains positive. The electronics and semiconductor sector will remain strong, while the services sector, led by the business process outsourcing (BPO) industry, will continue to grow, explains Le Borgne.


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.


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Pres. Arroyo Starts Cyber Corridor Visit

by @ News Feed

RP Pres. Gloria Arroyo visited Angeles, Pampanga last February 1, marking the start of the week-long tour in cyber corridor. This refers to the ten cities and capital towns that have the qualities and resources needed by companies which are engaged in the business process outsourcing (BPO) and information and communications technology (ICT).

Aside from Pampanga Central, the other so-called cyber corridor areas are Metro Laguna, Metro Cavite, Iloilo, Davao, Bacolod, Bulacan East, Bulacan West, Cagayan de Oro, and Lipa City. According to Presidential Deputy Spokesperson Gary Olivar, the availability of ICT workers, low rent and power costs, telecom access, and government support make these locations conducive to ICT-BPO operations. "It is the intention of the administration that the cyber corridor serve as a one-stop shop for e-services investors who may want to invest in our country," Olivar said.

The cyber corridor areas were identified by the Business Processing Association of the Philippines (BPAP), Commission on Information and Communications Technology (CICT), and Department of Trade and Industry (DTI).


China emerging as RP BPO rival

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According to Socio Economic Planning Secretary, Augusto Santos, China is an outsourcing destination that will prove as a key challenge for the Philippine Business Process Outsourcing (BPO) sector.

According to the Philippine Daily Inquirer, Santos stated in a briefing that the Philippines �may be overtaken� if precautionary methods are not undertaken. The briefing followed a meeting of the National Economic Development Authority (Neda) board and the National Anti-Poverty Commission in Malaca�ang.

Santos exhibited recent developments in China, namely its continuing effort to improve its English proficiency levels.
�We are part of the global community and there is economic competition among countries. If we want to increase our competitiveness, we have to continuously improve our proficiency in English,� Santos stated.

The Philippines' advantage as an outsourcing destination was partly affected upon integration of a new minimum wage law. Along with India, the Philippines has been facing competition from outsourcing destinations such as Vietnam, Malaysia and Sri Lanka � who have all been aggressively marketing themselves as BPO destinations; the Inquirer said.


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Europe Takes Lead as World's Highest Outsourcing Spender

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Europe is Top Spender in Outsourcing

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

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

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




2015 Healthcare RCM Outsourcing Forecast

by @ News Feed

The healthcare revenue cycle management (RCM) market in the US is segmented into three parts: Front-end Services, Middle Services, and Back-end Services. Industry analysts predict that the market will expand at a CAGR of 15.51 percent for the period of 2014-2019.

At the Healthcare RCM Outsourcing Market in the US 2015-2019 report, it was found that the key driver of outsourcing activity within the market is the need to keep up with government stipulations, and one of the processes seen being outsourced by healthcare service providers is RCM.

Automation has been implemented and used by some healthcare service providers to help RCM processes. However, IT applications and software are inadequate and lack the complex functionalities needed to address new models for RCM and reimbursements.

The complicated nature of medical billing and collections processes led to erroneous data, which then resulted to losses. As more and more healthcare service providers face this issue, they are seen strongly considering outsourcing RCM operations.
RCM outsourcing enables organizations to maximize collection operations amid growing challenges in the industry. It is also expected to reduce potential revenue leakage in various RCM processes.


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BPO, Tourism to Drive Cebu towards Economic Recovery

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Business process outsourcing and tourism are the two industries that will enable Cebu to recover in the current global economic downturn. This is according to economists and business leaders who took part in the recently concluded One Cebu Business Summit held at Mandaue City with surviving the economic meltdown and business recovery as the overall theme.

Cayetano Paderanga, Jr., UP Economics professor and guest at the event, said that both industries show resilience in these tough times as positive, though slower, growth continues to be seen in the province.

For the first semester of this year, Cebu had an increase of almost 9% in the number of foreign tourists who arrived in the province. On the other hand, 50,000 workers are employed in the BPO industry and there are no job losses.


UK Takes the Lead in EMEA Region for Outsourcing

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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.


Cebu BPO Fuels Office Real Estate Market

by @ News Feed

According to the latest global real estate report done by Colliers International, the usage of commercial properties in Cebu, Philippines has tremendously grown as the rate of vacancy has fallen from 5.5 percent in 2011 to 2.8 percent this year.

The report said local and major developers posted 80,000 square meters of new office space in their portfolios last year, which will lead to a total to 150,000 square meters when completed in 2014.

The drop in vacancy rate for office real estate in Cebu is said to be driven by the rapidly growing volume of new business process outsourcing (BPO) companies and investors in the province.

Meanwhile, the report noted that the drop in vacancy rate is mainly caused by the centralization of office space in locations like the 74-hectare commercial space called the Cebu Park District, which is a collaboration between Ayala Land, Inc. and Cebu Holdings, Inc.

The monthly average leasing rate in Cebu Business Park last year is P450 per square meter. In the upscale Cebu IT Park, the monthly rent varies - P500 to P700 and P300 to P500 per square meter.

The Cebu Park District is said to be attracting more offshore outsourcing firms to the province, according to the global real estate market.


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Growth Outlook for PH Economy Raised

by @ News Feed

Export Expansion, Construction Pushes Increase in PH growth Forecast

The Philippine economy is predicted to post a 6.7 percent growth this year, according to the International Monetary Fund (IMF). However, even if the growth prediction is marginally higher than the previous estimate of 6.6 percent, it is still lower than the growth target eyed by the local government.

IMF released a statement after its recent event “Mission to the Philippines”, saying the slight increase in the 2015 growth outlook is caused by strong private construction, export expansion, low commodity prices, and increase in public spending. In addition to that, IMF expects inflation to stay at the lower end of the Bangko Sentral ng Pilipinas’ (BSP) target range (2-4 percent), due to lower commodity prices. Also, the nation’s account surplus is seen to strengthen since the price of oil is lower, and earnings from the business process outsourcing (BPO) sector, tourism, and remittances remain strong.  

However, IMF noted that risks to inflation outlook will be caused by external and domestic pressures. For instance, disruptive asset price shifts in financial markets due to varying monetary policies in developed nations are considered threats, but the strong fundamentals of the Philippines provide adequate buffer to the impact. Moreover, external demand could be weaker should key emerging markets face deflation threats and lower potential growth.

The IMF also pointed out that the BSP’s efforts of reducing risks to financial stability, which include the real estate exposure of banks, have been successful and in fact contained liquidity and credit growth.
As for the Philippine government, growth projections are set at 7-8 percent this year, from 6.1 percent in 2014.



New Outsourcing Areas for RP

by @ News Feed

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

Companies to outsource supply chain management

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

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



BPOs Continue to Flock Ortigas CBD

by @ News Feed

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

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

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

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

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


PH Eyes P3.8T Investments, $117B Exports

by @ News Feed

The Philippine government is expecting a cumulative investment of P3.8 trillion over the next six years, with exports reaching $117 billion.

According to Philippine Trade and Industry Secretary Gregory L. Domingo, the said growth targets would be due to improved governance and the implementation of policies that sustain economic growth.

�The Aquino Administration's thrust to improve governance, the implementation of right policies coupled with a strong private sector will provide impetus for the attainment of for high sustained economic growth,� the cabinet official explained.

Domingo, speaking at yesterday's year-end briefing of economic managers, enumerated the following sectors: construction, agro-industry, electronics and semiconductors, tourism, and business process outsourcing (BPO) - as drivers of economic growth for investments and exports.

�But we would like to find a new BPO, meaning a new sunrise industry one that would be able to create half a million or more jobs,� said Domingo. �Perhaps, we can have coconut-based industry as the next sunrise industry also.�

The cabinet official said the BPO industry was very vital in improving the net services trade balance.

The projected P3.8 trillion would represent the total investments generated by the government's investment promotion agencies by the end of Philippine President Benigno Aquino III's term in 2016.


Asian BPOs Expected to Grow 17.9% in 2011

by @ News Feed

A study done by industry research firm Gartner shows that the global business process outsourcing (BPO) market is estimated to expand by 6.3 percent and 17.9 percent in the Asia-Pacific region this year.

Gartner Research Vice-President Cathy Tornborn said BPOs still serve as a solution for cost reduction and to keep businesses going.

It is expected that there will be an increase in demand for various services including customer management, human resources, as well as banking and finance in the next few years. Growth is also predicted in vertical markets such as retail, healthcare, transportation, as well as utilities.

"We also see an increase in transaction volumes, especially in payroll, recruiting, accounts payable and customer data analytics and knowledge process outsourcing (KPO) activities," Tornborn said.

Gartner stated that scalability, the infusion of new processes, and technology are crucial elements for the growth of outsourcing in the region. The firm also foresees a 3.8 percent growth in North America's BPO market in 2011. Western Europe, on the other hand, is predicted to grow 8.9 percent in US dollars terms.  When it comes to Latin America, Gartner predicts a 14.7 percent growth in US dollar terms this year.


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.


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RP Boosts English Proficiency of Potential BPO Workers

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Supplying English Skills to Potential BPO Workers in the Philippines

As a major outsourcing and offshoring destination and with the increasing number of job opportunities in the business process outsourcing (BPO) sector, the Philippines is initiating training programs to further improve the English language skills of potential BPO workers.

The Technical Education and Skills Development Authority (TESDA) and the Business Processing Association of the Philippines (BPAP) created Advanced English Proficiency Program which will help students to speak English more fluently. Other programs include IBM's Service, Science, Management and Engineering (SSME), Oracle Academy, and Cisco Networking Academy. These training programs also aim to equip students with the skills that IT companies need.


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.


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 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.


PH to Help Australia Tap China's Market

by @ News Feed

According to an executive at the Philippine Software Industry Association (PSIA), the Philippines is set to partner with the software development sector of Australia and be the bridge to the global market, particularly China's. After receiving news that Australian IT companies are looking to hire local talents, Nora Terrado, President of PSIA, said this is an opportunity for the country to progress.  

Martin Conboy, President of the Australian Business Process Outsourcing Association (ABPOA) and publisher of The Sauce BPO, said this is a good opportunity for the Philippines. He added that China's Five Year Development Plan requires 10 million call center agents. This means Australia would need the help of the Philippines to tap that market.

Australia's skilled workforce is thinning and candidates are difficult to find. For Australian companies to tap international markets like China, they would need help from other regions to improve talent supply and streamline internal processes.

Other important topics highlighted by Conboy during his presentation in Manila are tips for tapping the Australian market, upcoming movements in �outsourcing verticalization�, social media, processes that are most likely to be outsourced in the coming years, and what the sector has in store for software companies.


Egypt Bags Offshoring Destination of the Year Award

by @ News Feed

Egypt was recognized as the Offshoring Destination of the Year at the 2010 European Outsourcing Association (EOA) Awards held in Brussels. The award was received by Dr. Hazem Abdelazim, CEO of Egypt's Information Technology Industry Development Agency (ITIDA). 

According to Dr. Tarek Kamel, Minister of Communications and Information Technology, Egypt has made its mark in the outsourcing industry. "This award recognizes the outstanding progress Egypt has made in the last year as a global outsourcing destination. The country's credibility is going from strength to strength amongst European companies and has put its mark on the map of favored global services locations.�

With Egypt's multilingual capabilities and infrastructure, EOA Chairman Martyn Hart said the country has secured its place as a strong outsourcing player.


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.


Everest Group Projects 15-20% Growth Rate in F&A Outsourcing

by @ News Feed

Global services advisory and research firm Everest Group says the Finance & Accounting Outsourcing (FAO) will grow by 15-20 percent this year, as total contract values (TCV) of new deals and contract extensions reach an all-time high. This translates to US$4 billion in annual contract value (ACV) for this year.

�Last year saw a strong rebound in multi-process FAO adoption, which we expect to continue this year as buyers look to reduce costs and optimize processes,� said Saurabh Gupta, vice president, Research. He added, however, that clients still opt for a more phased approach than �big-bang solutions�.

Everest report also states that 70-75 percent of total FAO spending in 2010 can be attributed to strong adoption of FAO across different industries including financial services, manufacturing, travel and logistics, and retail. More than half of total FAO spending last year came from the US, but Asia-Pacific posted the fastest growth rate. The report also shows that accounts payable and receivable, as well as general ledger are the most outsourced business processes.


Eastwood City Cyberpark Named Top RP BPO Location

by @ News Feed

Eastwood Top BPO Hub in the Philippines

Among all registered IT parks and buildings in the Philippines, Eastwood City Cyberpark in Libis, Quezon City posted the highest employment figure of 16,856 in 2009. This is a 22-percent increase compared to 2008 figures, making it the top BPO location in the country.

Aside from the rise in number of employees, Eastwood City Cyberpark also posted improvements in exports of Offshoring & Outsourcing (O&O) locators reaching US$348.31 million, as well as in salaries from PEZA-registered companies at P6.72 billion. According to developer Megaworld Corporation, non-BPO establishments in Eastwood have provided jobs to more than 30,000.

“We are pleased that despite the global economic challenges of 2009, Eastwood City Cyberpark still managed to post increases in the number of employees, exports and salaries. As the economy improves further this year, we expect 2010 to be another banner year for Eastwood City Cyberpark,” Megaworld FVP for business development Jericho Go said.




Forrester: Traditional Outsourcing �on its Deathbed�

by @ News Feed

Global Business Process Outsourcing to Lose Traction?

Traditional outsourcing will be a thing of the past as the shift to innovation and emergence of technologies such as the Cloud take over. This is according to independent technology and market research firm Forrester Research.

“IT outsourcing as traditionally understood is on its deathbed,” said Ellen Daley, vice-president and practice leader at Forrester Research.

A Forrester study, involving 568 companies, reveals that expectations on costs savings are not met and more and more clients are not satisfied with the quality of work. Without cost reduction which is a primary reason companies outsource, clients are considering better technologies such as the Cloud.

Daley said there is a significant decrease in client spending on aspects that are usually present in corporate IT outsourcing budgets such as enterprise resource planning and human capital management software. On the other hand, the study reveals an increase in client spending when it comes to aspects such as business intelligence.


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BSP: Rosy Outlook for PH Economy

by @ News Feed

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

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

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

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

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


SEO Outsourcing

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UK IT Outsourcing Activity Slows Down

by @ News Feed

Outosurcing Activity Declined

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

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

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


Gartner Says KPO Opens Opportunities for Indian BPOs

by @ News Feed

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.



Filipino Workers Are 'Key' to the Growing BPO Industry

by @ News Feed

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

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

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

Demographics make the Philippines an attractive outsourcing destination

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

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

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

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

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

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

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

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Global BPO Industry to Grow 6.4% in 2011

by @ News Feed

In recent times, almost all of the business sectors benefit from the BPO market. Even manufacturing industries worldwide depend on the ability of the services sector to satisfy and meet the demands of customers and organize them as leads by applying proper CRM strategies. This enabled the BPO industry to start a trend in establishing revenue-generating businesses by tapping into unchartered countries, both developed and developing ones.

One of the areas that successfully benefitted from BPO is the Asia-Pacific region. Proof of that is India, a country known in the outsourcing industry. It is still growing and has an expected revenue figure amounting to $110 billion for the period of 2010-11. Prominent market research firms estimate that the industry in the Asia-Pacific region will grow 17.9% while the global BPO market will grow 6.4% in 2011.
Also, the demand for customer support services from the US, UK, and other European countries is rapidly growing. This prompted BPO firms in the Asia-Pacific region (India/Philippines/China) to further improve their skills and bring in more business to their country.


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.


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.


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Concerns CIOs Face with EHR Providers

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Challenges in Outsourcing Electronic Health Records

A study done by Frost & Sullivan and EHR Intelligence, in partnership with the College of Healthcare Information Management Executives, surveyed CIOs of medium and large hospitals from March to May. The study aimed to see what the CIOs feel about electronic health records (EHRs), and they soon found out that poor usability and search functions are the common issues that they have to deal with.

Survey participants said when it comes to the search functionality of EHRs, results are usually inaccurate and systems are slow. The study also found that this issue is caused by poor EHR usability and lack of user training and information about EHR.

When EHR clients have a hard time finding and reviewing data, they lose productivity not only in the clinical segment but also with end-users, making it risky for patients.  

Since most EHRs are still working on improving their status and capabilities, this is anticipated to increase competition and encourage software developers to improve usability, and for service providers to enhance their capacities.


Expert Says BPO Firms Need Disaster Recovery Plan

by @ News Feed

During the Business Continuity and Disaster Recovery Event sponsored by inContact, Rick Lowe, Chairman of Metro Manila-based R Lowe Services that specializes in information technology, marketing, and disaster recovery services, stressed that business process outsourcing (BPO) firms need to have disaster recovery programs (DRP) to survive man-made and natural disasters.

A study from global research and consultancy firm Gartner shows that less than 10 percent of BPO companies have integrated a recovery and continuity process, and only 35 percent of BPO facilities have complete DRPs.

Other topics that were tackled by nearly 50 IT executives from various companies during the conference include ways to disseminate information to customers if an emergency comes up, communication SOP with employees and external parties involved, and what local government agencies can do for the industry in times of disaster.

Lowe has worked with renowned companies such as eBay, Yahoo, Lycos, Dell, and other large corporations, building his 20-year career in information technology. He was also Vice-president for IT operations at Telus International-Philippines.


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.

Pres. Arroyo Urges Lawmakers to Pass DICT Bill

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President Urges Congress to pass DICT Bill

In Pres. Gloria Arroyo's State of the Nation Address (SONA) last Monday, July 27, she urged the Congress to pass the bill regarding the creation of the Department of Information and Communications Technology (DICT), as she highlighted the role of the business process outsourcing (BPO) sector in our economy.

Pres. Arroyo pointed out that the BPO sector is resilient enough to bring wealth to the economy amidst the global economic downturn. "With earnings of US$6 billion and employment of 600,000, the BPO phenomenon speaks eloquently of our competitiveness and productivity," she said.

At present, the Commission on Information and Communications Technology (CICT) is the coordinating body which is responsible for the management and implementation of ICT-related initiatives of the government. However, Oscar Sañez, Chief Executive of Business Processing Association of the Philippines (BPAP), said that having a separate department is necessary in implementing national strategic plans in terms of infrastructure and IT education.


2014-2019: Overview of the Global Healthcare BPO Market

by @ News Feed

Research and Markets, an Ireland-based research and consultancy agency, recently released “Global Healthcare BPO Market 2015-2019”, a report which covered the F&A BPO, HR BPO, and CRM segments of the global healthcare market. It revealed that demand for outsourcing is primarily driven by the increased need for affordable operations as healthcare costs continue to surge, growth strategies require additional improvements in infrastructure, companies needing more capital investment, and rising labor costs.

Moreover, the report stated that data security and privacy are crucial issues in outsourcing environments - citing that these are major hurdles in the healthcare market. Data collected amongst healthcare institutions are confidential and sensitive, and data theft and intrusion of information are risks that could dampen an institution’s reputation.

Business process outsourcing is one of the segments under outsourcing. It is the process of subcontracting a certain operation of a business to a third party provider. A service provider can either be an end-to-end company or an industry-specific organization. BPO is known to boost not only the operation and cost efficiency of the company but its output as well. The healthcare industry is said to be adopting BPO services since these have been proven to reduce costs, improve patient care services - the core mission of healthcare organizations - and staff efficiency.

Meanwhile, the latest trend seen in the healthcare market is the adoption of the cloud. Cloud-based solutions in the sector are changing the way BPO is integrated to an operation.


BPO to Create the most Jobs for RP in the next Three Years

by @ News Feed

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.



Report Shows Drop in IT Security Outsourcing

by @ News Feed

From 22 percent in 2007, 18 percent of CIOs surveyed said they outsource IT security, and only seven percent plan to outsource in the next two years. This is based on a report recently released by market research firm Ovum.

Rhonda Ascierto, senior analyst at Ovum, said activity in IT security outsourcing slowed down in IT-related management aspects namely security, IT systems management, and content management. However, this drop does not necessarily mean that service providers cannot meet the needs of buyers. �This doesn't translate into poor performance of outsourcers in this area - it's quite feasible that a number of CIOs chose to cease outsourcing security during the downturn as a way to gain more control and flexibility over their IT operations at a time when their businesses faced considerable change and uncertainty,� Ascierto said. 


Filipino Animators, Game Developers Trained in South Korea

by @ News Feed

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.


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."


Latest Global Healthcare Outsourcing Report

by @ News Feed

At the Research and Markets report "Healthcare IT Outsourcing Market by Application & Industry - Global Forecast To 2018", North America accounts for the largest healthcare IT outsourcing market share with 72 percent. It is currently valued at $25 billion and is projected to reach $36 billion by 2018. When it comes to compound annual growth rate (CAGR), Asia-Pacific and RoW are predicted to post 8.1 percent and 7.8 percent in five years' time. North America and Europe, on the other hand, are expected to post 7.6 percent and 7.2 percent CAGRs, respectively, over the same period.

The industry report included predictions about the healthcare sector which specifically covers hospitals, diagnostic laboratories, and clinics. Other segments are biotechnology, pharmaceutical, clinical research organizations, and health insurance.

Healthcare is one of the rapidly rising segments in the global outsourcing industry because of the growing demand for affordable and quality care and insurance. Management and administrative-related process are seen being outsourced to third party service providers.  Majority of the healthcare IT outsourcing clients come from large healthcare organizations, but recently, it has seen a growing number of mid-sized clients as well. Some firms outsource IT processes in fragments such as implementation of EMR, billing systems, and CRM. Others prefer to outsource the entire information management system.

Globally, the healthcare IT outsourcing market, which is currently valued at $35 billion, is anticipated to post a CAGR of 7.6 percent and reach $50.4 billion by 2018. The key propellers of the healthcare sector are health insurance segment, healthcare systems segment, and pharmaceutical segment. These use outsourcing to reduce operational and maintenance costs, tap skilled and trained workforce worldwide, streamline processes, innovate, and mitigate risks.


Indian IT-BPO �Disappointed� with Union Budget

by @ News Feed

The IT-BPO industry of India was disappointed with the imposition of the 18.5% Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) and stoppage of tax breaks in the Software Technology Parks of India (STPI), as mentioned by Finance Minister Pranab Mukherjee in his budget speech. These are both negative news for the $76 billion industry of the country, according to IT software industry body National Association of Software and Services Companies (Nasscom).

Small and medium-sized IT firms in STPIs are allowed to have a 10-year tax holiday with the goal of encouraging export-oriented economic growth.

Keshav R. Murugesh, Group CEO of WNS Global Services said government support is crucial to keep the current position of India in the global outsourcing market. He added that other outsourcing destinations such as China and the Philippines can pose a threat to India's BPO advantage as they enjoy support from the government in terms of tax benefits.


Advantages of Outsourcing SEO to an Agency

Advantages of Outsourcing SEO to an Agency

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Dear Community, although I work for an agency, this post is not as biased as you might think: Earlier in my career, I managed SEO in-house for a middle market firm, and later I did freelance SEO work…

The Philippines as an Ideal IT-BPO Hub

by @ News Feed

According to the Business Processing Association of the Philippines (BPAP), the Philippines is one of today's ideal offshore outsourcing destinations as it is equipped with skilled workforce and offers services at a fraction of the cost.

BPAP President and CEO Benedict Hernandez said the country continues to attract information technology and business process outsourcing (IT-BPO) investors due to several factors which include strong public-private partnerships, new investment models, sound infrastructure, proper investment climate, and the country's positive image.

He added that organizations in emerging markets are rapidly growing compared to firms in more advanced economies. Some of the world renowned IT-BPO companies have operations in the Philippines.

Moreover, the Philippines is able to break through the IT outsourcing arena. It is now capable of delivering engineering, finance, healthcare, facility management, support services and more, which in turn makes the country a feasible location for investors who are looking to outsource various functions.

In 2011, the country's BPO industry posted $11 billion in revenues and employed 640,000, putting the country at the top for voice-based services and second for high-valued, complex processes. Another delivery model that is predicted to grow within the IT-BPO segment is global in-house center (GIC) type which is said to reach $270 billion by 2016.
Meanwhile, the Next Wave Cities report highlighted information about the top 10 regions in the Philippines that are on the fast track in becoming IT-BPO hubs. These are Davao, Laguna, Bacolod, Iloilo, Cavite, Batangas, Cagayan de Oro, Malolos, Baguio, and Dumaguete.

In addition to that, the Data Privacy Act and the Cybercrime Prevention Act, which were recently signed into law, are expected to increase investor confidence and improve the country's IT-BPO industry.


Cebu to Train Scholars to Address Talent Shortage in BPO, KPO

by @ News Feed

Cebu City intends to give 5000 college scholars free training to help address shortage of highly skilled workers who are needed in the knowledge process outsourcing (KPO) sector.

The local government will offer free classes on English proficiency to scholars taking a four-year course to help them qualify for call center jobs. They will also help both BPO and KPO firms in finding highly skilled employees for their operations.

This initiative transpired after a recent study by Tholons, an advisory company on global outsourcing and investments, revealed that shortage of qualified talent remains a major challenge faced by BPO and KPO companies.

Cebu Investment and Promotions Center (CIPC) Managing Director Joel Mari Yu said they will continue to promote the province as an ideal location for call center work, though they need to work on increasing the pool of workers and improving their skills to meet the demand of KPO firms such as Lexmark, IBM, and JP Morgan and Chase. �They need people with special skills and a very much higher level of knowledge, so we need to build capability in this area,� Yu said.


PH BPO Posts 24% Growth in 2011

by @ News Feed

Bullish Philippine BPO Industry is on Track

The business process outsourcing (BPO) sector of the Philippines is right on track when it comes to meeting its 2016 goals as it posted a 24% ($11 billion) increase in revenues from 2010 to 2011.

Benedict Hernandez, President and CEO of the Business Processing Association of the Philippines (BPAP), said the figures posted by the sector last year were higher compared to the 20% yearly projection, and bested the 10% to 15% predicted global figures. A 22% increase in jobs was also seen last year, with a total of 638,000.
For the five-year target, Hernandez said the industry is eyeing to reach $25 billion or 9% of the country’s GDP. Meanwhile, the BPO sector’s largest segment, call center operations, contributed 65% of the industry’s total revenues and grew 21% in 2011.

According to Hernandez, one of the key growth drivers for the segment is the strong support from the local government, specifically the P450 million budget for BPO-specific training programs by the Technical Education and Skills Development Authority (TESDA), as well as the support from the Department of Science and Technology (DOST) and Commission on Higher Education.


Developer Takes the Lead in PH Office Property Market

by @ News Feed

Andrew L. Tan's Megaworld Corp. is expected to complete six new business process outsourcing (BPO) towers. This will fortify the property developer's position in the office space segment.

Executives of the company explained that the six new towers are anticipated to yield 112,000 square meters (sqm) of office space and are set to accommodate the growing demand from existing clients who want to expand, as well as new locators.
According to the first vice-president for business leasing and development of Megaworld, Jericho Go, Megaworld aims to become the leading office space developer in the country. He said they are considering office inventory expansions to augment their revenues from rental payments.

Two of the office towers are in Uptown Bonifacio, two towers are in Mactan Newtown, and the last two in Iloilo Business Park.
Once the 112,000 sqm of office BPO space are included to Megaworld's portfolio by the end of this year, they will end up with a total of 712,000 sqm.
Megaworld has 10 office towers in Eastwood City, one in Newport City - Pasay, 14 in McKinley Hill - Taguig, and another one in Mactan Newtown - Cebu.

Eighty-six percent of the developer's 126 clients are in the BPO industry. Some of which are Accenture, HP, Wells Fargo, IBM, United Health Group, Thomson Reuters, Dell, WNS, and Samsung.

Go said they are fully supporting the BPO sector's plans for growth and are seeking to help further by encouraging more companies to operate in the Philippines.


Firms Invest more in Shared Services than Traditional Outsourcing

by @ News Feed

In a study on outsourcing trends done by advisory firm KPMG, more than half (52%) of the companies based in Asia, Europe, and North America capitalized on shared services in the last three months. The demand for other segments such as IT outsourcing (ITO) and business process outsourcing (BPO) have grown only 37% and 27%, respectively.

The report also states that IT, finance and accounting, and HR functions are the most commonly outsourced processes by the banking and healthcare sectors.

Shared Services or Traditional Outsourcing?

Samus Rae, Partner at KPMG’s shared services and advisory team, said the weak projections for BPO growth are parallel to the reduced demand for traditional, generic, and transaction-oriented outsourcing deals particularly for finance and accounting compared to non-traditional BPO.

Moreover, 68% of IT vendors are confident about their pipelines and the potential growth in the next three months. Meanwhile, half of the vendors anticipate growth in the demand for bundled packages such as business and IT services.


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.


Service Management Program Seen to Improve PH BPO Workforce

by @ News Feed

The service management program (SMP) created by the Business Processing Association of the Philippines (BPAP) and Commission on Higher Education (CHED) is set to train upcoming graduates for jobs in the local outsourcing industry.

The additional skills acquired by nearly 20,000 graduates by 2014 from 13 state universities and colleges (SUCs) could help them get employed faster.

According to CHED Chairperson Dr. Patricia Licuanan, the program is a great leverage for students to have the required skills for basic positions in the outsourcing sector, even for future employment opportunities in the IT-BPO industry.

She added that the industry-designed program is designed to reinforce the skills and competence of students enrolled in traditional business administration and information technology courses.

Meanwhile, Alfredo Ayala, Chairperson at BPAP, said he is hoping that the program will improve the capability of BPO candidates, as well as the quality of the local workforce.

The 21-unit specialized course is scheduled to be delivered and integrated by 500 trained teachers in 13 SUCs. Some of the topics covered are business communication, service culture, principles of system thinking, fundamentals of business outsourcing, and computer literacy.


UK Investments to Strengthen Outsourcing in SE Asia

by @ News Feed

Increase in outsourced services

As firms look out for the status of Europe’s dwindling economy, BusinessMirror anticipates that private investments, particularly outsourced finance and legal services made by UK-based firms to the Philippines, India, and other Southeast Asian countries, will dramatically increase.

Southeast Asia is being eyed by UK firms as a refuge for diversified investments, said an official of the UK Trade and Investment. The official added that it is improbable for UK officials to restrict private companies from outsourcing overseas, like the pending bill in US that discourages companies to move business functions offshore.

Meanwhile, Filipino nurses in the UK were reassured by the official that amidst the crisis, jobs will not be lost. Nearly 600,000 business process outsourcing (BPO) employees in the Philippines are concerned over the result of the anti-outsourcing bill, which is strongly supported by US President Obama.

Indian firm Infosys got 14 European clients, with two being the largest deals in the $500-million range. TCS landed a total of 10 large deals, including four European contracts. HCL, on the other hand, got 18 large contracts valued at $1 billion.


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 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.


PH Posts New Record-high in Office Space Supply

by @ News Feed

According to Colliers International Philippines, even with the high demand seen in the local market, particularly from the business process outsourcing (BPO) sector, the supply of new office space in Metro Manila is seen to hit new record-high this year. 

Julius Guevara, Director at Colliers International Philippines, said starting this year up until 2016, new office properties will increase with 400,000 square meters annually. Metro Manila, the region to hit 481,068 sqm which will be greater than the 476,000 sqm posted back in 2009, currently has the highest on record. Guevara also anticipated that the supply of new office space will reach 449,481 sqm in 2015 and 486,726 sqm in 2016.

One of the main drivers for the strong supply is the demand coming from the BPO sector. He said BPO companies take up 85-90 percent of the supply. Global firms that are expanding operations are also contributing to the bullish increase in office space.


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PH to Reinforce Services Sector in APEC Meeting

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According to the National Economic and Development Authority (NEDA), the Philippines can use its position as the chairman of the largest global economic gathering in the last 19 years - the Asia-Pacific Economic Cooperation (APEC) Meeting, to leverage its services sector.

From January 31 to February 7, NEDA will host four events at the Asia-Pacific Economic Cooperation (APEC) Senior Officials Meeting to be held at the Clark Freeport Zone, Pampanga.

PH services sector largest contributor to growth

The services sector contributes 56.7 percent to the gross domestic product (GDP) of the country, and is the largest contributor to its growth during the fourth quarter of last year.

Emmanuel Esguerra, Deputy Director-general at NEDA, said the services sector could use a little more push for its potential to be maximized. He also pointed out that the country’s APEC chairmanship can enable local small and medium enterprises (SMEs) to make it to global value chains (GVC). In addition to that, he said out of all the APEC economies, the Philippines has the highest GVC participation in optical and electrical equipment.

Last year, the services sector posted a full-year growth average of six percent, similar to the figures posted during the fourth quarter of the same year. Also, the business process outsourcing (BPO) sector is eyeing to have 1.3 million full-time employees and $25 billion in revenues by 2016. The sector currently has 1.052 million workers.


Website Redesign SEO: Avoid awkward client conversations

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You know the conversation we’re talking about. We know you’ve answered that phone call before. You’ve poured your best work into a beautiful, functional, and lead-generating website for your client. The project went well. You got paid. The website launched as expected and it’s a real hit. Everyone loves it. So when you get a…

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

by @ News Feed

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.


DOLE to Carefully Monitor PH BPO Activities

by @ News Feed

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

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

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

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

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


SEO Outsourcing Isn't The Simple Fix You Think - Read This

SEO Outsourcing Isn't The Simple Fix You Think - Read This

SEO Outsourcing Guide

Looking for SEO outsourcing options? You need to read this before you spend your money. Find out what you need to know before you outsource SEO!

Fix Keyword Cannibalization To Prevent Hidden SEO Issues

by Jennifer Johnson @ Alexa Blog

All of your SEO efforts are executed with the goal of making your site easier for Google to crawl and understand. In theory, the clearer your layout, linking, and schema data are, the more likely you are to reap the benefits of search through higher organic traffic and links. However, even the best SEO professionals [...]

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�Smarter� Cities to Help PH BPO Growth

by @ News Feed

In order to become a premier hub for business process outsourcing (BPO), the Philippines should create �Smart Cities� and �Smart Countrysides�, according to BPO industry members.
On the contrary, Tony Del Carmen, Chairman of the Laguna Industry Network for Knowledge, Innovation and Technology Foundation (LINK-IT,) said there are other issues that need to be addressed such as skills match of workers to the requirements of the industry, incentives for the local government, and promoting awareness among local real estate developers.
He reiterated that the main focus of creating Smarter Cities is to cultivate an environment that promotes Information and Communications Technology (ICT) for BPO firms. Moreover, of all the challenges in the ICT industry, Del Carmen cited talent development as the main issue.
Santa Rosa, Laguna is making a name for itself as the Silicon Valley (Detroit) of the Philippines as it is being developed as a smarter city. Firms in the semiconductor industry and car manufacturing organizations were seen developing in the Metro Laguna area.

In line with that, the National ICT Confederation of the Philippines (NICP) will launch a program on behalf of �Smarter City/Countryside� at the 5th NICP National ICT Summit on November 22-23 in Santa Rosa.


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.


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.        


Q3 Outsourcing: Contracts Surge, Value Remains Constant

by @ News Feed

2015 Q3 Global Outsourcing Report

The third quarter ISG Outsourcing Index report revealed that major sourcing markets are moving towards shorter and more affordable contracts which resulted to an increase in contract volume, but a flat overall value globally.

The report covers commercial outsourcing contracts with an annual contract value (ACV) of $5 million or more. A total of 344 contracts were closed in the third quarter, which is a 20 percent increase from the same period last year. However, it is lower than the 448 contracts signed in the second quarter of 2015. Third quarter ACV for this year amounted to $5.6 billion. It is similar with the previous year’s ACV, but is nine percent lower than this year’s second quarter.

Five mega-relationships (contracts valued at more than $100 million annually) were posted, rounding it up the year-to-date total to 14, the lowest figure in the three quarters for the past 10 years.  

Meanwhile, for the first three quarters, the volume and ACV for deals valued less than $40 million both reached record highs. In fact, the total volume of contracts climbed eight percent with 1,094 - the highest ever from the same period in 2014 despite an 11 percent decrease in ACV to $16.8 billion.

Value of new-scope contracts reached $3.8 billion which is eight percent higher than last year. Restructured contracts fell 13 percent for the quarter to $1.8 billion. An 11 percent drop was seen for both new-scope and restructured-contract ACV due to a slowing manufacturing sector and unimpressive activity in the financial services sector.

Per segment, business process outsourcing (BPO) took the center stage with its ACV growing 53 percent to $2.0 billion, mostly because of the increase in call center outsourcing and industry-centric operations. In some segments such as information technology outsourcing (ITO), the volume of contracts declined by 15 percent as cloud integration continues to saturate the market.

IT Professionals for Hire: The Most In-Demand Tech-Related Jobs

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  Living in the digital age means that the role of technology continuous to evolve and our dependency towards it essentially grows. As it provides convenience and comfort, it greatly influences our lifestyle to the point that businesses have adapted certain practices to ensure that they remain competitive in their niche.   Recent studies show […]

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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”.


Cloud Computing Demand to Grow as Firms Aim to Cut Costs

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

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

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


PNoy: More Job Opportunities Available in the Philippines

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In President Benigno Aquino III’s second State of the Nation Address (SONA) delivered yesterday, he said that there are more jobs available in the country for Filipino workers. He added that the workforce is slowly embracing the idea of working in the country and not in a foreign land.

There may be more job opportunities and thousands of graduates every year, but PNoy stated that the jobs mismatch remains a challenge that local industries are facing. He asked the government units and agencies concerned to address this problem. The Department of Labor and Employment (DOLE), Commission on Higher Education (CHED), the Technical Education and Skills Development Authority, and the Department of Education (DepEd) are called on to analyze the present curriculum and guide students in choosing courses that will help them land jobs in industries that are in need of workers.

BPO industry works with academe and government agencies to help improve skills of students

The business process outsourcing (BPO) industry has been working with the academe and government agencies to help improve the skills of students, especially when it comes to English proficiency. According to Julito Vitriolo, CHED executive director, they are taking steps to improve the communication skills of students to make them globally competitive and meet the demands of the BPO sector and other industries.


PH IT Industry Suffering from Stronger Peso

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Valuation of Philippine Peso hurting IT Industry

According to Paco Sandejas, Managing Partner at Narra Venture Capital, even with cumulative efforts to balance the currency strength, the information technology (IT) industry is struggling along with other major sectors.

He cited during an interview with ANC’s Inside Business that for manufacturing software and electronics, the margins are very narrow. The slightest change in exchange rate, 10 percent for instance, will induce a negative effect. He added that there’s already a five-percent irregularity in the local currency.

Last year, the peso closed at P41.05 a dollar, and recently, it finished at P40.585:$1.

Sandejas explained that the IT sector should look into offering new products and innovation to counter the valuation of the peso.

The peso was also seen appreciating by six percent last year, from 2011’s P43.84 to $1.

Other segments affected by the stronger peso are the business process outsourcing (BPO) industry, exports segment, and has also dampen the spending power of the families who depend on remittances from overseas Filipino workers.


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Iloilo Making a Mark in the BPO Industry

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Iloilo City Mayor Jed Patrick E. Mabilog recently presented a report by investment and research firm Tholons entitled 2012 Top 100 Outsourcing Destinations. It showed that Iloilo moved up six spots, securing the 92th spot in Southeast Asia.

The Tholons list included other Philippine cities that retained their 2010 position: Manila (4), Cebu (9), and Davao (69). Santa Rosa, Laguna, on the other hand, climbed two spots to 86.

Other Southeast Asian locations that have improved ranks in the list are Singapore (35), Kuala Lumpur, Malaysia (28) and Penang, Malaysia (77). Meanwhile, Hanoi, Vietnam retained its spot at 21, as well as Jakarta, Indonesia at 62. Bangkok, Thailand fell 10 spots to 87 while Ho Chi Minh (Saigon) dropped a spot to 17.

Mr. Mabilog mentioned improvement of city infrastructure and a more economic coal-fired power source in La Paz district as some of the key drivers of the city's position in the BPO map ranking.

He also explained that the Tholons report can be a tool to engage and attract more BPO investors to the city. In terms of land expansion area and commercial spaces, Iloilo definitely has more to offer compared to Cebu. Moreover, there are plans to improve basic infrastructure such as main roads to the city, airport, and recreational areas.

Regarding the pending US bill which will affect jobs in the outsourcing industry, Mr. Mabilog confidently answered that US is only one of the many countries that engage in outsourcing.  He cited Europe, Asia, and the rest of America as opportunity sources and believes a lot of US firms do not support the said bill as it may adversely affect the costs of their operations, which will result to more businesses shutting down.  

Moreover, the Tholons report stated that the robust growth of NCR (National Capital Region) improved its image as a voice-based BPO hub in Southeast Asia. In fact, the IT-BPO sector saw a 10.6 percent increase in the number of employees. The country has also surpassed India as the top call center destination, with more or less 400,000 call center agents compared to India's 350,000.


Consulting Firm Says China Closing in on India in BPO Race

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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.


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.


UK Outsourcing Market Shows Slower Activity

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According to "UK Software Market: Trends and Forecasts" study done by market consultancy TechMarketView, even if the UK Software and IT Services (SITS) market is anticipated to grow to �44.3 billion (eight percent) by 2016, it will still fall five percent off from growth figures posted during 2011.

However, the report found that SMEs can still get prospects from larger players regardless of the tight market.

Meanwhile, data from the supplementary study "UK SITS Company Rankings" showed that in 2012, the top 30 firms in the UK SITS market contributed �30.4 billion, which equates to four percent growth and is a result of major buyouts.

Some of the companies that topped the rankings are HP, IBM, Capita, and BT.  However, TechMarketReview stated that even if HP took the lead, it decreased by five percent.
Richard Holway, TechMarketView's Chairman, shared his sentiments that growth and success firmly depend on proper management and how processes are executed. He named renowned leaders such as Steve Jobs and Tim Cook, Bill Gates, and Steve Ballmer, as well as their influence in the market and how CSCs like Mike Lawrie change the SITS market.

The executive also noted that the economic slowdown and rapid evolution of how IT services are delivered pose a great threat even for stable SMEs.


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.


RP BPO Fuels Expansion of Fastfood Chains

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The rapid growth of the business process outsourcing (BPO) industry is driving the expansion of fastfood chains in Metro Manila.

CEO and President of Binalot Food Fiesta Rommel Juan said fastfood chains see a 15 percent sales increase particularly in known BPO areas such as Makati, Libis - Eastwood, Sucat, Ortigas, and Alabang. Surge in sales and expansion can also be attributed to the fact that the industry operates 24/7.

BPO industry boosts local economy

“This has boosted the local economy, creating more jobs and business opportunities not only for services catering to the increasing number of BPO workers,” Juan said.

Based on a different report, the country’s BPO industry is on its way to reaching its revenue goal of $9.4 billion for 2010. After six months, the industry had already posted $4.7 billion in revenues.



Rapid Growth Expected at Medical Research Outsourcing

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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.


PH Business Leaders List 2015 Priorities

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After the five-day visit of the Pope to the Philippines which affected some of the business operations in the country’s main economic hub, Manila, companies quickly went back to work. As business groups go about the daily grind, organizations identify the core areas for growth, especially since President Aquino’s six-year term will end next year.

For business process outsourcing (BPO), industry bodies expressed that priorities include keeping tax incentives, as well as holiday policies that will reduce additional holidays, particularly the ones with short notice. The IT and Business Processing Association of the Philippines (IBPAP) explained that events such as sudden holidays cost the industry as much as P70 million a day because companies would have to give employees additional holiday pay since they cannot stop their operations.

On the other hand, the Management Association of the Philippines said jobs should be the main priority in the country.

Ramon Del Rosario of the Makati Business Club recently pointed out that the priorities should be more on passing the Bangsamoro Law for peace and development in Mindanao. Another priority is passing the Freedom of Information Bill which aims to fight corruption by giving the citizens the upper hand and letting them demand and study government records. Del Rosario also mentioned relaxing foreign ownership restrictions to attract more investors leading to the production of jobs.


New Wave Cities and Urban Areas Ready for BPO Tenants

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More BPO Cities in the Philippines Open Up

Robinsons Land Corporation (RLC) announced that their mall-based business process outsourcing (BPO) offices in New Wave Cities in Luzon and Mindanao are now ready for occupancy.

New office spaces in malls in Paco, Davao City and Tarlac City, an additional 21,000 sqm, are now available for BPOs for leasing, said Arlene Magtibay, RLC’s Business Unit General Manager of Commercial Centers Division. She added that if the BPO market demands additional office space, they can proceed with the construction in Tacloban and Dumaguete, which can be customized based on the requirements of potential tenants.

According to Henry Yap, Business Unit General Manager for Office Buildings Division, more RLC BPO buildings are in the construction phase in the Ortigas Business District, adding a total of 80,000sqm to its portfolio. This makes RLC one of the leading lessors in the Philippines.

Having offices within Robinsons Malls not only provides tenants shopping and dining convenience - it also boasts proper accreditation from the Philippine Economic Zone Authority or PEZA, armed with 24/7 support facilities and 100 percent power backup.

Industry reports state that there is a rising demand for BPO office space, and vacancy rates in Metro Manila stay low even though rents are increasing.


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Positive Growth Seen for PH Economy

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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.


Bayan to support Next Wave Cities

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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.


Outsourcing in 2014: Focused on Service, not Savings

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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.


BPO Revenues Seen to Surpass Remittances in 2 Years

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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.


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

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PH now more attractive as back office outsourcing hub

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

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

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

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

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


PH Expected to Post 4% GDP Growth Rate this Year

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Businessmen in the country believe that the Philippine economy will see a four percent increase in its gross domestic product (GDP) this year.

The outgoing president of the Philippine Chamber of Commerce and Industry (PCCI), Ambassador Francis Chua, said this prediction of four percent growth is lower than the revised 2011 growth target which is 4.5 to 5.5 percent. He also said that businessmen should be happy that the local economy remained positive despite the economic crisis in Europe and the US. He added that if not for the natural disasters that negatively affect the growth of the country's agricultural produce during the fourth quarter, the growth rate might be higher.

Chua is confident for 2012, with the implementation of the Public Private Partnership program and other projects, OFW remittances, as well as this year's top contributors: tourism, business process outsourcing (BPO), and mining. These industries will be revenue generators for the economy next year.


BPO Jobs Primed for Skilled Graduates

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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.


BPAP Expresses Support on Data Privacy Act

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Data Privacy Law in the Philippines Backed by BPAP

Outsourcing industry body Business Processing Association of the Philippines (BPAP) supports the Data Privacy Act, stating that once it is approved by President Benigno Aquino III, it can help propel the IT-BPO sector.

The measure is believed to help the Philippines to be at par with other countries that are following international standards of data protection, said BPAP President and CEO Benedict Hernandez. He added that it will help promote the country as a mature business process outsourcing (BPO) destination for investors.

The act is patterned on the standards of the European Parliament and aligned with the Asia Pacific Economic Cooperation (APEC) Information Privacy Framework.

He also noted that the IT-BPO industry of the Philippines is maturing rapidly as it is now providing different services other than voice-based processes to a variety of segments. In fact, high end services now contribute 30 percent to the industry’s revenues.  It is seen to help sustain growth for non-voice, high-end services.


Cebu's BPO Industry Empowered by New IT Locators

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Cebu is PH's New IT BPO Locator

The business process outsourcing (BPO) industry of Cebu continues to expand as new IT buildings and sites emerge to cater to the influx of IT firms that are interested in establishing operations in the province.

Cebu Property Ventures and Development Corporation (CPVDC) and Ayala Land Inc. (ALI) have teamed up in managing Asian i-Office Properties Inc. (AiO), a company that recently led the topping out of eBloc Tower 2 at the Asiatown IT Park.

Francis Monera, CPVDC President, said, “Cebu’s booming BPO sector is ripe for the expansion of new and existing IT locators. The opening of an eBloc Tower 2 will open the door to more investments and job opportunities in the area.”

eBloc Tower 2 is a follow-up to the eBloc Tower which was completed in 2009. The 16-level office building is situated at a 4,383-square meter lot, and is predicted to become the best location for BPO, IT, and IT-enabled services (ITES) business locators.   

Monera also said that various BPO companies are very interested in leasing office space. Sixty-five percent (65%) of the total occupancy were already reserved for upcoming operations, and once occupancy rate has reached 70%, AiO will begin the construction of the third tower.

ALI senior vice president and Visayas-Mindanao group head Emilio Tumbocon said that eBloc Tower 2 only accounts for one of Ayala’s 13 new projects to be launched this year. “With these strategic directions, we will take on new ventures and maximize the potential of the BPO industry, particularly in the Visayas and Mindanao areas,” he said.


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."


Clients Predicted to Spend More in IT next Year

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A study done by Offshore Insights, an advisory and research firm, indicated that IT spending could grow in 2013 after the information technology (IT) activity slowdown in American and European markets. Half of the 270 respondents who are decision-makers in IT companies from North America and Europe said they will increase their IT spending by 10 percent next year.

The study denoted that the IT offshoring market for India could increase 15-18 percent due to the growing IT activity in North America, although the European market will remain at a standstill for one more year. Moreover, Chief Executive and Research Director at Offshore Insights Sudin Apte found that international buyers are planning to spend more, but not quite as much compared to two years ago.

Meanwhile, 36 percent of the survey participants stated that they predict a more challenging business environment next year, whereas 32 percent said it would be a positive one. The report also noted that executives from North America were more optimistic than those in Europe. Furthermore, 60 percent of India's $70-billion IT services industry serve the North American market.

IT segments such as apps integration, enterprise applications, and innovation would post the highest growth.

On the other hand, more and more clients said they are unhappy with the services of IT outsourcing vendors, as well as their stringent position when it comes to pricing models. Also, global IT outsourcing firms were observed to be on the fast track on besting Indian IT firms in cost savings, software processes, and quality.


RP Bids to be Global Leader in Creative Process Outsourcing

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Philippines Expected to Lead Creative Process Outsourcing

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

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

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

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






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PH BPO Sector to Post 15% Revenue Increase this Year

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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.


PH BPO to Continue Driving Demand for Real Estate

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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.


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.


Research Shows Underinvestment in IT Hurts Companies

by @ News Feed

Business executives from 13 countries said underinvestment in IT had taken its toll on company operations during the global financial crisis. This may be a reason why there is a need for IT outsourcing.

In an Enterprise Intelligence survey by BT Global Services, 61 percent of CIOs and 63 percent of senior executives said ageing IT infrastructure hindered them to �think globally�. Also, 25 percent of business leaders said lack of enough funds for technology had negatively affected innovation while 23 percent said this prevented them from getting new deals.

"This research � should act as a call to action on key issues such as the role IT plays in driving global business success. The research also highlights that, in the current climate, CIOs face key decisions about how they approach the upturn," said Hanif Lalani, CEO of BT Global Services.


Survey Shows India Losing 70% of Voice BPO to PH

by @ News Feed

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

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

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

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

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

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


More Jobs in BPO Expected as Peso Weakens

by @ News Feed

Stronger Philippine Peso to Result to more BPO Jobs

According to House Assistant Majority Leader and Cebu Rep. Gerald Anthony Gullas Jr., the recent depreciation of the Philippine Peso against the US dollar means the business process outsourcing (BPO) industry of the Philippines and overseas Filipino workers (OFWs) are earning more.  This also implies that the robust BPO industry will be able to produce more jobs faster this year.

Gullas, who is also a member of the Nacionalista Party, noted that BPO companies are paid in dollars, but operation and salary expenses are in Philippine Pesos.  

Last Firday, the peso closed at its lowest level in over three years at Php45 to a dollar. It is a 10.48 percent difference from the 40.73 to 1 dollar exchange rate in January of last year. Gullas said BPOs now have a stronger Peso spending power, which they could use to expand and hire more employees.
He also estimated that for every $10,000 spent by BPOs on expanding operations, one full-time job is usually produced.

The Cebu Representative added that Cebu is an emerging BPO hub as it now has 25 fully functional IT parks, and 12 more on the way. More than 100,000 are now working full-time in BPOs located in Central Visayas where revenues reached $516 million in 2012. 

Meanwhile, the IT and Business Process Association of the Philippines (IBPAP) projected that the industry will produce 372,000 new jobs starting this year up to 2016.



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PH BPO still Driven by Call Center Segment

by @ News Feed

Call Center Industry of the Philippines Continue to Thrive

The recent report of the Philippine Statistics Authority (PSA)-National Statistics Office states that for 2012, the call center segment posted the fastest growth rate and was the largest in the business process outsourcing (BPO) sector of the country.
According to 2012 Census of Philippine Business and Industry for BPO posted at the website of PSA, 404 call centers operated in 2012, which is 49.8 percent of the 818 companies across the entire BPO sector.

The voice segment also has the highest number of employees with 364,454 as of Nov. 15 last year, or 83.5% of the cumulative 436,500 in that period. As for earnings, the segment posted P249.873 billion in revenues, or 73.8% of the P338.179 billion from the entire BPO sector.

As for establishments, call center operations were followed by computer programming operations with 243 establishments or 30%. Data processing, on the other hand, had 51 setups or 6.3 percent, and other services related to information technology (IT) taking up 31 operations or 3.8 percent. Meanwhile, medical transcription accounted for 3.2 percent or 26 operations.



PH Property Developer Launches 2nd BPO Hub in Cebu

by @ News Feed

Two World Center BPO Hub Cebu

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

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

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

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



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.


Eastwood Cyberpark retains billing as top IT exporter

by @ News Feed

Eastwood Cyberpark: First BPO Hub in the philippines

The Philippine Economic Zone Authority (Peza) calculates that, having produced $323.17 million in services export revenues in 2008, Eastwood City Cyberpark is still the number one IT employer and export-revenue generator in the country. Among 87 registered IT zones, the Cyberpark ranked far ahead of its competitors with the second and third ranked zones earning $216 milion and $173.3 million respectively.

Upon its development by Megaworld Corp. in late 1999, the Eastwood Cyberpark became the first Business Process Outsourcing (BPO) park in the country.

“We are proud that the Eastwood City Cyberpark contributed much-needed dollar earnings to help steady the Philippine economy in the midst of the global recession,” said Megaworld vice president for business development, Jericho Go.

Eastwood housed a personnel average of 13,774 last year – 10% higher than 2007. It currently has the highest total salaries paid at P5.054 billion which is 15% higher than 2007.

Go attributes Eastwood's success to: its location, the amount of BPO buildings and locators (over 60 ) as well as the lifestyle that only Eastwood City can offer.


PH Govt to Reinforce Economic Growth

by @ News Feed

According to Department of Finance Secretary Cesar V. Purisima, the Aquino administration is striving to improve and sustain the high level of economic growth seen during the first half of this year. He added that the government plans to improve the infrastructure, as well as investments in agriculture, tourism, and business process outsourcing (BPO).   

Purisima also said in a statement they will strive for innovative processes to align goals, reduce the cost of doing business in the country, including the development of new exports.

Moreover, he said amidst the economic uncertainty in the US and Eurozone and with the global growth slowing down, the country's economy grew from January to June.

The Finance Secretary noted that the 5.9 percent growth for Q2 2012 puts the country in a favourable position and helped yield a 6.1 percent growth for the first half of this year, which is far better compared to the 4.7 average GDP growth of the country for the past several years.
Other industries such as construction grew 9.2 percent, which is fuelled by public construction. Overall exports grew 8.3 percent, where goods exports increased 7.9 percent, and services exports increased by 9.9 percent.


7 Tips On Starting A Blog

by Alexander Felsch @ NYC SEO Authority

Now Let's Get Started Are you in New York City and thinking of starting a blog? If so, then go for it and don't procrastinate. Blogging is a good SEO strategy and if you need help, then you should work with the best New York City SEO agency. However, you will want to think about [...]

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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.


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by Stephanie Devers @ Business Marketing Engine

Over the past few months, we’ve been talking about SEO. From the immediate benefit of boosting your brand name on the search engine results page to the long-lasting effects, like brand recognition, it’s easy to see that, overall, SEO is good for your company. But did you realize that incorporating affordable search engine optimization services ... Read more

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ADB to PH: Do not Rely on BPO to Alleviate Poverty

by @ News Feed

BPO is not the Answer to Poverty in the Philippines

The business process outsourcing (BPO) industry has become one of the key revenue and employment generators for the Philippine economy. However, a recent study from the Asia Development Bank Institute (ADB) states that the government should not rely on the industry in dealing with the poverty situation in the country.
In a study by F. Tech Tschang, Associate Professor of Strategic Management at the Singapore Management University, he looked at the information technology (IT)-enabled services industries in China, India, and the Philippines. He said IT-BPO cannot be considered as a solution to lessen poverty since it does not help those who are poor and less educated. He added that while the impact of the BPO industry to the economy is significant, it is much less on a “per-person basis”. 
In the State of the Nation Address of President Benigno Aquino III, it was reported that the BPO industry generated more than 30,000 jobs early this year, and more job opportunities are expected for the rest of 2011. However, Mr. Tschang said this does not help a large part of the population. Only those with better education benefit from the industry. This increases the difference between people who have better education and those who don’t. 
Meanwhile, Socioeconomic Planning Chief Cayetano Paderanga said the BPO industry does not directly reduce poverty, but since it generates jobs, it still has a huge effect on the situation. He added that the government has direct programs to ensure that “nobody will be left behind”. 

CBRE: PH BPOs Initiate Decentralization

by @ News Feed

Global property consultancy CBRE Philippines recently stated that the robust business process outsourcing (BPO) sector of the Philippines, which has fuelled property development in secondary sites, could be one of the forerunners of the incoming administration’s decentralization plans.

CBRE Philippines noted that Metro Manila is the leading location of development, but their data showed that investments are being made in Laguna, Cavite, and Pampanga in Luzon. For the Visayas region, developments can be seen in Cebu, Bacolod, and Iloilo, and for Mindanao - Davao and Cagayan de Oro.

CBRE Philippines Chairman and founder Rick Santos added that initially, developers had limited access to locations outside Metro Manila, but national developers have been seen entering these secondary sites in more recent years. He said it could create a domino effect as it will encourage local developers to improve the quality of their buildings, which could lead to more investors, and growth and employment all over the Philippines.

Santos said the key factors that continue to propel the BPO sector are the country’s young talent pool, low cost of labor, low rental rate, notable customer service, and high yield rate.

CBRE identified the BPO sector as the Philippine economy’s star performer, and is showing no signs of slowing down at 17% growth annually. In fact, the entire BPO sector accounts for 7.5% of the country’s gross domestic product (GDP).

Moreover, the firm cited a report from consultancy firm Tholons which included seven Philippine locations outside Metro Manila in the top 100 outsourcing destinations - an indication that secondary cities are ready for BPO development.
CBRE also stated that numerous local developers have tapped land banks and targeted BPO-friendly locations outside Metro Manila to guarantee market share. These locations are known to cost less in terms of rental rates, making them a more cost-effective option for BPO locators.


UK Insurance Outsourcing Costs Set to Increase by 20%

by @ News Feed

20% Iminent Increase for UK Insurance Outsourcing

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

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

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



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%.


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

by @ News Feed

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

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

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


Job Opportunities for Nurses in the Philippine BPO Industry

by @ News Feed

More Opportunities for Nurses in the Philippine BPO Industry

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

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

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

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

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


16.93% CAGR Seen for the Global RCM Outsourcing Market

by @ News Feed

Market Research Store releases the “Global RCM Outsourcing Market in the Healthcare Sector” report where it is indicated that the global revenue cycle management (RCM) outsourcing market will post a CAGR of 16.93 percent this year and throughout the period of 2013-2018.

It is also stated that analytical solutions may be the answer for providers which are trying to dig deeper into what’s happening within their operation. Analytical solutions will likewise enable organizations to come up with better offerings - and a better grasp of what RCM, treatment outcomes, readmissions, and patient satisfaction are all about.

When outsourcing RCM work in the healthcare sector, choosing the right service provider is a pivotal step that requires deliberation and understanding. Healthcare service providers of RCM process begin with the pre-registration of a patient, processing and filing, to final zero balance invoicing for a certain visit. However, with all the digital upgrades the healthcare RCM sector is seeing, process automation has helped organizations to be more efficient. Healthcare service providers are slowly rolling out automated systems to reinforce RCM processes.

Factors that are contributing to the growth of RCM outsourcing market are the evolution of business processes, reimbursement and payment reforms, accountable care participation, ICD-10 coding reforms, collection issues, declining margins, and physical practice association.

Healthcare service providers have long since deployed automated systems to address RCM processes. However, since the IT applications are already outdated, they lack the capability to address the challenges brought on by new reimbursement models for RCM. The mismatch in technologies used resulted in gap and inefficiencies which eventually led to revenue loss. Through RCM outsourcing, healthcare service providers are ensured that they achieve maximum collections despite the challenges. It also helps reduce potential revenue leakage in other RCM functions.


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

by @ News Feed

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

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

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


PH �Back in the Radar Screen� of German Investors

by @ News Feed

The Philippines’ improving business climate has once again piqued the interest of Germany as trade volume between these countries increased to $1.57 billion in the first quarter of 2015, from $1.17 billion a year earlier.

According to German-Philippine Chamber of Commerce and Industry (GPCCI) Executive Director Peter Kompalla, this signifies that German investors are strongly considering doing business in the Philippines. He added that since the Philippines is said to be an emerging investment destination in Southeast Asia, it has since been positioned as a credible contender amongst its neighboring countries.

In 2013, the Germany-Philippines trade was valued at $4.48 billion, and rose to $5.24 billion last year.

The GPCCI executive noted that the improvement in the Philippines’ image was mostly because of governance reforms of the Aquino administration, and investment-grade ratings by renowned agencies such as Standard & Poor’s, and Moody’s.

A GPCCI report revealed that the Philippines’ top exports to Germany include data processing equipment, electrical and optical products, electrical equipment, clothing, food and fodder, as well as chemical products. The Philippines, on the other hand, imports data processing equipment, electrical and optical products, food and fodder, other vehicles, pharmaceuticals, and chemical products from Germany.

 Continental AG, Lufthansa AG, Volkswagen AG, Steag GmbH, Bayer AG, and Deutsche Bank AG are the top German investors in the country. German investors are also looking at expanding business process outsourcing (BPO) operations in the Philippines particularly for accounting and banking services, with the country surpassing India as the world’s top BPO destination for voice processes.


TESDA Urges the Academe to Offer more BPO courses

by @ News Feed

Technical Education and Skills Development Authority's (TESDA) Director General Joel Villanueva is urging educational institutions to incorporate more BPO-related courses, specifically for �non-voice� processes. He said it will open more opportunities for candidates who would want to enter the business process outsourcing (BPO) sector.

He said some of the profitable non-voice services that the industry should focus on are, finance and accounting, engineering and design, healthcare, animation, and software development.

When it comes to talent supply, tough competition for quality and quantity of BPO employees is one of the main challenges as other countries are also vying to be ideal outsourcing destinations.

Villanueva said TESDA fully supports the Visayas region as it aims to become an outsourcing location of choice. Next Wave Cities is a title given to locations that can have the infrastructure and manpower needed for BPO operations and Bacolod City, Negros Occidental is ranked as the third destination for IT-BPO processes in the Philippines. Bacolod City is currently home to 11 international call center companies, employing 12,000 workers. Three large IT parks in the city are also recognized by the Provincial Economic Zone Authority (PEZA).

Last year's P2-million grant from Training for Work Scholarship Fund of TESDA was used to establish Negros Occidental language and IT Center (NOLITC) which now provides courses such as Contact Center Services NC II; Finishing Course for Call Center Agents NC II; English Language Proficiency Program; and, Medical Transcription NC II.  2D animation is also a course seen to be provided in the near future.

Villanueva also believes that the partnership between TESDA and the Bacolod Negros Occidental Federation for IT (BNEFIT) will reinforce the province's IT-BPO growth and development.


White Hat SEO: Make Informed Decisions on Your SEO

by admin @ SEO Brothers

There seems to be a lot of confusion surrounding the “hat” terms with respect to organic search. The purpose of this post is to give a high level overview of what’s involved with white hat seo and compare it to other tactics and strategies that are available. Before diving in, we should clarify that white…

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by E-Curtis-Designs @ Sacramento Web Design

A question I am asked often about is the difference of SEO (Search Engine Optimization) and SEM (Search Engine Marketing).  As you would expect these are related, yet SEO is the optimization of the web pages where as SEM is the marketing after the web pages are completed. I’ve noted many times that the “so…

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UK Government Says No Protectionism

by @ News Feed

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.


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.


Global Data Processing & Outsourcing Services Market Predicted to Grow

by @ News Feed

Emerging outsourcing hubs identified as key growth propellers

The Global Data Processing and Outsourcing Services Market 2011-2015 report done by market intelligence firm TechNavio predicted that the segment will grow at a 5.2 percent CAGR from 2011-2015. The study was also able to identify emerging outsourcing hubs as key growth propellers.

Moreover, cloud technology was seen proliferating in the segment. However, global economic challenges still pose a threat to its growth.

The study was derived from a comprehensive research, as well as contributions from industry experts. It specifically covered regions such as the US, EMEA, and APAC. Furthermore, the future of the global data processing and outsourcing services market landscape is being observed as well.

Meanwhile, some of the key vendors identified in the market are Fujitsu Ltd., HP Co., IBM Corp., and Xerox Corp. Companies such as Computer Sciences Corp., Accenture plc, Convergys Corp., AON Corp., NCO Financial, Capgemini S.A., Genpact Ltd., TCS Ltd., Stream Global Services Inc., Wipro Ltd., WNS Ltd., Aegis, and Infosys Ltd were mentioned as well.


Gartner Says India Remains No.1 Outsourcing Location

by @ News Feed

India Leads Offshore Outsourcing Segment

When it comes to offshore outsourcing, India stays on top of the list, according to the recent offshore services report from IT consultancy firm Gartner.

Based on the report, India gets high scores in all 10 criteria namely: language, support from the government, manpower availability, infrastructure, educational system, cost, environment (political and economic), cultural compatibility, global and legal maturity, as well as IT security.

India remains the top outsourcing destination, but Gartner said the Philippines, Vietnam, and Indonesia pose as tough competitors in terms of service competitiveness and cost efficiency. "Attractive cost structures in the Philippines, Vietnam, and Indonesia create tough competition for India, while China remains the most prominent challenger in terms of scale." The Philippines, on the other hand, remains attractive to foreign firms due to its young manpower pool, good English communication skills, and cultural affinity with Western companies.




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In a previous article on WordPress Maintenance, we discussed importance of keeping your WordPress system up to date with the […]

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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.


Growth Potential Seen in PH Animation Outsourcing

by @ News Feed

With the increase in global demand for non-voice outsourcing processes such as animation, publishing, and engineering design, strong growth is anticipated for the Philippine IT-BPO sector.

During a business forum, David Caldwell, Managing Director at Wells Fargo Philippines Solutions Inc., said there's a great chance for the non-voice business process outsourcing (BPO) processes to flourish.

He cited the animation segment wherein he believes that the Philippines is a suitable outsourcing partner because Filipinos are innately talented and creative. Furthermore, Caldwell said large international animation firms regard the ability of English communication skills of Filipino animators as a huge factor, apart from lower labor costs, quality, as well as speed in delivering output.
Moreover, he said the engineering sector could also get ample boost with the annual turnout of graduates.


UK Outsourcing Deals Climb 65 Percent

by @ News Feed

According to the Quarterly Outsourcing Index released by arvato together with NelsonHall, outsourcing deals in the UK are 65 percent higher during the first quarter of 2014 compared to the first quarter of last year. It is estimated that the total value of the deals in this year's first quarter could reach �2.1 billion.
The report noted that public sector contracts, which grew 168 percent year-on-year and have a total value of �1.5 billion, propelled the growth. But for the private sector, contracts declined 20 percent year-on-year to �600 million.

Of the 39 contracts signed during the first quarter of 2014, 75 percent were onshore deals, and over 50 percent were new outsourcing deals.

Meanwhile, Debra Maxwell, Managing Director of arvato UK, said the outsourcing industry remains on the positive side because of the balance between the increase in total spend and first-time outsourcing partnerships. Moreover, organizations have been observed to use it to achieve and improve business goals.

The executive added that it is more evident in the public sector where outsourcing is crucial not only in reducing costs, but protecting the frontline services as well. Also, she said it is an advantage that there are now more onshore deals because it shows that the outsourcing industry is contributing to the economy of the UK and its position as a major player in the global outsourcing industry.

Seventy-one per cent of deals and �1.3 billion of spend are accounted for by HR, payroll, benefits administration, and recruitment business process outsourcing. On the other hand, IT outsourcing accounted for 29 per cent (�798 million).


BPO Firms Looking for Resources outside Metro Manila

by @ News Feed

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.


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

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2Q12 Recorded Improved APAC Outsourcing Market

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

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

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


How to Do SEO for Voice Search

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The latest voice technology such as Siri, Google Now and Cortana have changed the way we look for content digitally. We need to keep in mind that the digital domain is changing rapidly and the Internet users are adopting these … Continue reading

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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.


Is Your SEO Firm Outsourcing Your Work?

Is Your SEO Firm Outsourcing Your Work?

Online Marketing Blog - TopRank®

It's pretty common in the interactive, advertising and PR agency world to outsource components of an engagement where the lead agency does not have specifi

PH Improves Ranking in Cloud Readiness Index

by @ News Feed

Cloud Fuels Innovation in Global Outsourcing Sector

In latest Cloud Readiness Index report, it was revealed that the Philippines climbed four spots to the 10th place, from the 14th place in 2011, on account of its bullish business process outsourcing sector.  

Cloud technology is having centralized data storage and remote access to computer resources and services by means of groups of remote servers and server networks. It can be public, private or a combination of both.
According to Bernie Trudel, Chairman of the Asia Cloud Computing Association (ACCA), the BPO sector is identified as the key contributor mostly because it highly depends on the Cloud for innovation and improvement.

Trudel, who is also the Cisco Asia-Pacific Chief Technology Officer, said another advantage for the country is freedom of information as it is crucial to the progress of the Cloud.

ACCA has dubbed the Philippines as one of the “dedicated improvers”, together with Malaysia, Taiwan, and Thailand.

However, amidst the country’s low scores in government regulations and telecommunication infrastructure aspects of the index, the Philippines has been consistently improving in the cloud readiness parameter.

Japan is the leader of the ranking, and in fact has been on top for three consecutive years now, while Australia, Thailand, and New Zealand climbed four spots.

The index, which is currently on its 3rd installment, evaluates 14 countries against 10 indicators, which include infrastructure and regulatory systems, to see if which one is prepared for Cloud computing adoption.


Bill for the Creation of ICT Dept. Approved by Congress

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In an effort to develop the ICT sector as the business process outsourcing (BPO) industry posts continuous growth, the House of Representatives has approved the bill that deals with the creation of the Department of Information and Communications Technology or DICT.     

The new department will assume the telecommunication responsibilities of the Department of Transportation and Communications (DoTC) under House Bill (HB) 4667. It will be mainly responsible for promoting and developing the ICT sector of the country. The House Bill also indicates that the DICT will be the one to undertake the functions of the Commission on Information and Communications Technology under the Office of the President.

Eastern Samar Rep. Ben P. Evardone, Vice-chairman of the ICT committee and author of one of the DICT bills, said the DICT will help the country to be more competitive in the ICT industry and on a global scale, ensuring that government regulations will be in accordance to the trends in the industry.
The Business Processing Association of the Philippines (BPAP) and the Joint Foreign Chambers have been campaigning for the creation of the department that will focus on the ICT sector and promote the IT and BPO capabilities of the country.


What To Do When You Have Been Referred The Wrong Business Number On Google Maps

by Alexander Felsch @ NYC SEO Authority

Google Is Now Requesting Local Searchers Report Any Wrong Numbers They Find In New York City Google Searchers have now been given the ability to report wrong numbers when they come across business listings with local search or on Google Maps. Google has done this because many have reported to them that it's frustrating when [...]

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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.


Everest Report Shows Increase in Offshore Outsourcing Activity

by @ News Feed

Things are looking up again for the offshore outsourcing industry. As the economy bounces back from the global financial crisis last year, a report by Everest Research Institute shows the industry sees an increase in offshore outsourcing activity.

According to Anand Ramesh [CQ}, research director at Everest, US-based companies are now considering to transfer more work offshore, while other firms that have not outsourced work offshore before are now planning to do so in destinations with relatively low labor costs.

Based on the report, about 75 percent of small and medium-sized companies and 90 percent of large firms intend to expand outsourcing operations by more than 500 full-time employees over the next two years.

Meanwhile, Forrester Research principal analyst Sudin Apte [CQ] said this uptick in offshore outsourcing activity will increase demand for workers in offshoring locations. The Everest report added that more than 70 percent of buyers choose India as the location for their business expansion, followed by the Philippines and China.


BPAP Asks RP BPO Firms to Hire Workers Outside Manila

by @ News Feed

BPAP urges BPO industry to hire more workers outside Metro Manila

Recognizing the availability of competent talent pools in provinces, an official of the Business Processing Association of the Philippines (BPAP) said firms in the business process outsourcing (BPO) industry must hire more workers outside Metro Manila.

BPAP executive director Ma. Jamea S. Garcia said that out of 400,000 graduates every year, only 25 percent are from Metro Manila, illustrating the competent talent pool available in other regions. “Talents are always there, the companies just need to find the applicants who will perfectly match their expectations." She added that the perception of not having enough talent in the provinces must be changed.

Garcia said the country’s BPO industry is aiming to reach the $12-billion revenue target by 2011. Based on a different report, Commission on Information and Communications Technology (CICT) Chairman Ivan Uy said the BPO industry will likely hit the $9 billion revenue mark this month or in October, and may even close the year with revenue that is close to $10 billion.


Global IT-BPO Projected to Grow 11%

by @ News Feed

The information technology-business process outsourcing (IT-BPO) industry could be positioned at the lower end of its growth forecast as the unstable currency, growth slowdown for main business centres, and fluctuating growth of providers continue, according to the National Association of Software and Services Companies (Nasscom).

In a study done by Nasscom on Indian companies on global in-house centres and multinationals across different industries such as IT services, BPOs, research & development, engineering and products, it was found out that IT-BPO could likely post a growth of 11 percent and revenue of $75 to 77 billion.

Som Mittal, President of Nasscom, said there are certain factors that can affect the growth guidance of sectors. Every company is in a different environment and may encounter different situations. However, the entire industry needs to consider faster growth verticals such as retail and healthcare.

In a way, some of the top IT services firms were also responsible for the 11 percent growth target as the top four to five providers represent 40-50 percent of the entire export revenue. In line with that, Infosys shared a revenue guidance of only five percent for this fiscal year, and Wipro only grew one to two percent per quarter.
Mitall assured that even with the problems that the industry encountered this year, the outsourcing sector in India will grow.

On the other hand, Sudin Apte, Principal Analyst and Chief Executive at Offshore Insights, said they were able to come up with an 8-10 percent growth rate for the entire outsourcing sector for fiscal year 2013. But individually, some firms will post better numbers.


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eCommerce SEO: Optimizing your eCommerce Website for SEO

by admin @ SEO Brothers

Having a well planned eCommerce SEO strategy can really add to your bottom line. Small changes in site structure, keyword targeting, or link building can have multiplying effects on traffic and revenue. If you are just starting an online eCommerce store you are in a much better position to get things right from the start…

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BPAP Promotes �Work Abroad. Live Here� Career Portal

by @ News Feed

The Business Processing Association of the Philippines (BPAP) recently launched the career portal called �Work Abroad. Live Here� ( This is a new campaign which targets 517,000 fresh graduates, young professionals, and job seekers who may want to enter the business process outsourcing (BPO) workforce. This is in line with their efforts to reach the jobs target of 1.3 million by 2016. It is also a way to showcase various opportunities that the IT-BPO sector has to offer.

According to BPAP President and CEO Benedict Hernandez, applicants do not usually know where to look for job opportunities. The career portal is created to help job seekers find jobs that are suitable for their knowledge and skill set. It also enables candidates to work for global companies without having to leave the country. They no longer have to go overseas to provide for their families.  

The website covers various segments of the IT-BPO industry. Hernandez said there are available jobs for animators, game developers, IT professionals, software developers, financial analysts, accountants, and even doctors and nurses. He added that IT-BPO centers in outsourcing hubs outside Metro Manila are also looking for candidates who can fill job positions for voice-based and non-voice processes.

The �Work Abroad. Live Here� website is managed by TeamAsia, a marketing communications company, and was developed by Cloud Sherpas.


Everest: Numerous ITO Deals to Expire in the Next 18 Months

by @ News Feed

According to the �Impending Contract Renewals: Back to the Future� study by global services advisory and research firm Everest Group, many information technology outsourcing (ITO) and business process outsourcing (BPO) deals signed before the economic downturn are set to end in the next 12 to 18 months. The total contract value (TCV) of these deals will reach over US$85 billion by the end of 18 months.  However, IT contracts that are set to expire in the 12- to 18-month timeframe are smaller compared to the previous year.     

Ross Tisnovsky, Senior Vice-president at Everest Group, said majority of ITO contracts deal with infrastructure outsourcing, data center, and network tower. However, with the rapid adoption of cloud computing, the IT segment will see changes that were not predicted five years ago. Furthermore, the purchasing habit of clients has become a factor since they are no longer after just cost savings, but overall service quality.

Other factors that are set to influence ITO renewals included in the report are:

� Cloud computing will be a game changer for data center and applications projects.
� The number of remote infrastructure management outsourcing (RIMO) deals is rapidly increasing and gaining foothold.
� The gradual increase of mobile technology and data issues will affect the decision-making process of providers.
� Multi-sourcing and more focus on pricing models are seen in new deals.


Building an eCommerce Website? Tips on What to Outsource

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Global IT Spending Predictions for 2014

by @ News Feed

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

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

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

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


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.


ADB Says PH Shouldn't Depend on BPOs

by @ News Feed

Philippines Should Expand Beyond BPO

The Asian Development Bank (ADB) said depending too much on the services sector, specifically business process outsourcing (BPO), in the Philippines will not drive growth, contrary to what the government was saying in its inclusive growth plan.

It is apparent that the country is still troubled with the high unemployment rates, even if the BPO sector began to grow incessantly from 2001, said ADB senior country economist Norio Usui. He added that there are two important prerequisites to simplify the country’s growth. These are services and manufacturing.

In Usui’s recent presentation at the Federation of Philippine Industries (FPI)-organized First Philippine Manufacturers and Producers Summit, he said that the Philippine economy will not grow without manufacturing. This, together with modern services, will drive economic growth.

He later on added that even if the BPO sector has grown into a $10-billion industry, contributed 4.8 percent average economic growth, and employed half a million people from 2000 to 2009, there is low activity in the manufacturing sector. Also, investments are believed to have weakened because the country focused too much on services. Moreover, Usui said that while the BPO industry greatly helps the economy, it only provides job opportunities to those who have proper education.

According to Josef T. Yap, President of the Philippine Institute for Development Studies (PIDS), the contribution of the country’s manufacturing sector to the GDP dwindled to 21.4 percent in 2009 from 22.2 percent in 2000 and 25.7 percent in 1980.

Manufacturing sectors in other countries in Southeast Asia reinforced economic growth. In fact, Indonesia’s manufacturing GDP increased 26.4 percent in 2009 from 13.5 percent in 1980. Thailand’s sector grew from 21.5 percent to 34.1 percent. Malaysia also posted an increase - from 21.6 percent to 25.1 percent.  


PH BPO Firms Urged to Adopt DOLE Good Practices Code

by @ News Feed

Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz said the Voluntary Code of Good Practices should be adopted by business process outsourcing (BPO) companies to help improve the pool of qualified workers of the country.

She noted that the code aims to unite BPOs and educational institutions to design programs which will improve the curriculum of schools and produce BPO-qualified graduates.

Furthermore, Baldoz said in a statement that faculty internship programs, career talks, technical forums, and curriculum review will be administered by a partnership between the academe and the ICT (Information Communications Technology).

She added that BPO-ICT companies based in Region 6 are the only ones who are following the code and its principles wherein members strive to follow measures that contribute to improving the employment aspect of the region. Information and Communication Technology (ICT) Association of the Philippines Chairman Atty. Jocelle Batapa-Sigue as well as companies such as Teleperformance, Transcom, Teletech, Focus-Direct, and BENEFIT have already committed to the good practices code. ;


International Outsourcing Summit 2013 to be Held in the Philippines

by @ News Feed

Outsourcing Summit Philippines

The Information Technology and Business Process Association of the Philippines (IBPAP) said the International Outsourcing Summit (IOS) will be held in the Philippines at the Makati Shangri-La Hotel on October 6-8.

The conference "Unlocking Possibilities, Creating New Vistas" is expected to highlight new markets, opportunities, and innovation, plus the effects of the global power shift.

According to IBPAP President and CEO Jose Mari Mercado, the IOS extensively contributes to the growth of major outsourcing segments specifically the information technology and business process management (IT-BPM) industry. It provides the structure for partnerships, reinforces discourse, and it addresses relevant issues.

Meanwhile, the Philippines was cited by research firm Everest Group to have broken through the software development industry and IT outsourcing.

For 2012, the healthcare information management (HIM) industry of the country posted the highest growth - reaching up to $430 million last year. The voice segment also grew 21 in the same year.


US, European Investors Interested in PH BPO

by @ News Feed

According to Trade Secretary Gregory Domingo, he has observed newfound interest from European and American companies for the business process outsourcing (BPO) sector of the Philippines. He said during his trip in the US late last month, American and European firms that have been involved in outsourcing are strongly considering venturing out in the Philippines.

Trade Undersecretary Ponciano Manalo, Jr. said even before the investment promotions event took place, the department wanted to attract businesses that are looking for animation and gaming development opportunities, as well as healthcare information management and information technology-business process management.

Meanwhile, Trade Undersecretary Adrian Cristobal, Jr. went to Iceland for the signing of the Joint Declaration on Cooperation (JDC) with representatives from the European Free Trade Association (EFTA). He told reporters that a geothermal company from Iceland is planning to explore more opportunities in the Philippines. The JDC represents the first crucial step to free trade agreement negotiations with the EFTA, which includes Iceland, Liechtenstein, Norway, and Switzerland.


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by Mr. SEO @ Mr. SEO

For small businesses, one of the most ubiquitous advice they’ve heard is that they have to build their brand online. Building your brand means not just letting people know about your company, but also defining it in a way that effectively sets you apart from your competitors.  If you have a small business, you have […]

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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.


PH Teams Up with SKorea, Opens Training Center

by @ News Feed

During the recent launch of the $8-million Philippines-Korea Technological and Cooperation Center in Taguig City, Technical Education and Skills Development Authority (TESDA) Secretary Joel Villanueva said there’s a growing demand for health information management, animation, call center processes, and game development in the outsourcing sector of the country. He noted that the organization is eager to provide training programs to develop local talent in the Philippines.

The TESDA executive attended the inauguration of the Human Resource Development Institute - formed through the partnership between TESDA and the South Korean government. It is set to address manpower challenges for complex processes.

Growing demand in the outsourcing sector calls for skills training for graduating students

Non-BPO services are also being eyed for development in the country. Aside from BPO services, students can also improve their skills in construction, tourism, and language.

One of the key skills they are looking to develop is learning the Korean language since there is already a need for the skill, specifically for those who are going to work for Korean companies in Seoul. There are already volunteers from Korea International Cooperation Agency (KOICA) and Filipino trainers who are assigned to assist in teaching the Korean language.

South Korean Ambassador to the Philippines Lee Hyuk said the tech co-op center is donated by the South Korean government for the development of complex digital arts processes. Other segments that South Korea is working on are healthcare, agricultural development, and vocational training.


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.


RP BPO Firms Set to Expand Workforce this Year

by @ News Feed

Expansion Plans seen in Outsourcing Provider in the Philippines

In a survey conducted by the Business Processing Association of the Philippines (BPAP), executives of BPO companies said they are going to expand their workforce from 6-50 percent and offer more complex services this year.

“First, we see a return to optimism and better prospects for rapid growth. Second, the industry is more than just recovering from slower growth in 2009. It is diversifying and transforming as a result of increased demand for non-voice and more complex services,” said BPAP head Oscar R. Sañez.

However, many survey respondents are worried that the tight labor market may hinder their expansion plans. Thirty-four percent of BPO executives said that lack of enough qualified workers is their primary concern, and the upcoming elections may affect buyer perception.

A total of 160 BPO executives participated in the survey which was conducted early this year.


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A blog is a good way to give your brand a voice and keep your website updated with fresh, relevant content. If you don’t have a blog for your business yet, it’s time to get started. Setting up a blog is fairly simple if you follow these steps.   Determine Your Blog’s Goal   You’re…

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More Firms to Outsource IT after Recession, Study Shows

by @ News Feed

In a recent study by IT industry analyst Ovum, more companies will outsource IT processes this year as economic conditions improve after the crisis. One-third of chief information officers (CIOs) said that they will increase their 2010 budgets, though only between one and five percent.

According to Ovum senior analyst Patrick O'Brien, companies avoided long-term outsourcing contracts during the economic crisis, but activity in IT outsourcing is predicted to improve this year. "I really do expect in 2010 for outsourcing to pick up. The markets already expect that as well, judging by the fact that the share prices of outsourcing companies have outperformed the general market over the last six months."

It was reported that outsourcing spending, specifically on IT, is expected to increase this year as the economy recovers from recession.


Mega ITO Deals Awarded to Emerging Markets

by @ News Feed

Emerging Markets Nab Super-sized IT Outsourcing Contracts

According to the 2012 Global TPI Index, an upsurge in super-sized IT outsourcing contracts with values reaching $1 billion and up from companies based in the US and Western Europe were sent out offshore. In fact, during the same period of last year, only one mega deal was moved offshore, compared to this year’s five big ones. Three of which were subcontracted to Brazil and India. Four of the deals were new ones, and one was restructuring.

John Keppel, Partner and President of Research and Managed Services at ISG, said mega-deal activity varies almost every quarter, but the offshoring destinations are noteworthy. He added that emerging markets will shape the future of outsourcing and that the US and Western Europe have a major influence on the impending restructuring activity within the sector.

Moreover, 30 percent of the mega ITO deals’ global contract value amounting to $6.3 billion awarded in Q2 2012 were from the telecom, banking, and consumer goods industries. Mega-partnerships with annual contracts valued $100 million or more were also initiated during the second quarter.


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.


These 10 SEO Mistakes are Killing Your Website

by seoexpertscompanyindia @ SEO India - Top Indian SEO Experts Company with Proven Results

Search engine optimization (SEO) has changed a lot. However, there are some basic SEO practices that have remained relatively solid over time but still, SEO Experts are not performing it on their websites. Here are some of the SEO mistakes which are responsible for the struggle you are doing to boost your Google Search Rank.[...]

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Global Outsourcing Growth Weakens

by @ News Feed

According to the 2011 review of the global outsourcing sector done by Canadian-based ICT research and advisory committee XMG Global, the global outsourcing industry had a higher growth rate in 2010 compared to 2011. It brought in $374 billion in 2009, grew 13.9 percent at $425 billion last year, while it is predicted to post a 9.2 percent growth rate with $464 billion in 2011.

Arch rivals for the top offshoring destination title, China and India, continue to best each other in probing different markets, save for Europe and US.

XMG Global also predicts that the offshoring segment will bring in $144.8 billion in revenues, wherein the offshore market will be led by India with 42.5 percent ($61.5 billion) in revenues, followed by China with 31.5 percent ($45.7 billion), and Philippines at the third spot, with a revenue of $10.7 billion or 7.4 percent share.

Lauro Vives, XMG Global's chief analyst, said �The US economy, which remains to be a large market for offshoring, is still on the road to recovery with a forecasted 2011 GDP growth rate of 2.6 percent, slowing down from last year's 2.9 percent.�

The report also showed that the devaluation of the US dollar is affecting Philippine and Indian providers, which are dependent on the US market. Conversely, China is unscathed by the matter for it exports services to East Asian clients, even if Japan is at the wake of the 2011 earthquake.

XMG added that China is cashing in on the domestic BPO market to excel globally, and that major service providers in India that depended on high earnings from US and UK, namely Tata, Infosys, Wipro and Satyam, are looking into the growing domestic market.

The Philippines is also trying to increase its offshoring market shares by capitalizing on multilingual services. Proof of this is the Board of Investments partnership with IBM Philippines to improve programs locally for business process outsourcing.


Study Reveals Trends that Drive BPO Competition

by @ News Feed

A study done by an Information Services Group (ISG) company called TPI stated the major services that attract new clients and make existing ones renew contracts. The key factor in the shift of the trend in outsourcing was the rise of Cloud Computing technology last year. It resulted to tighter competition amongst BPO service providers as well as reduced values and shorter durations of contracts.  This trend is predicted to continue all the way through the end of 2011.

Paul Reynolds, Chief Research Officer of TPI Momentum, said, �For service providers to increase pipelines and improve profitability in 2011, they will need an accurate reading of current client preferences and market trends, an appropriate strategy to respond, and disciplined execution in the face of strong competition.� �This report provides the information they need to understand the size and scope of opportunity in the global outsourcing market,� he added.

According to additional data collected by exclusive sources and TPI advisors from around the world, majority of the clients are predicted to embrace Cloud Computing and include Cloud-based services in contracts. This prompted service providers to reformulate services related to the said trend, and bolster their portfolios. 

Other factors in the restructuring and change in strategic plans of BPO firms are shorter contracts and multisourcing. Proof of that was a large number of contracts that expired last year and over 500 more are expected to expire this 2011. In addition to that, clients who spend $50 million annually in outsourcing acquire the services of two or more BPO firms. 

The TPI Momentum Market Trends and Insights 2010 Annual Report also includes data in IT and business process outsourcing like, geographic regions, vertical industries, client company sizes, service provider market share, etc., tips for services providers regarding multisourcing, as well as factors that affect Cloud Computing services.


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.


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India Still Number One in Outsourcing - AT Kearney

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India Remains as Top Outsourcing Destination

According to the 2009 Global Services Location Index (GSLI) of AT Kearney, a global management consultancy, India is still the world's leading location of choice for companies which consider offshoring their non-core business processes.

With its low costs of labor, large pool of skilled workers, and attractive business environment, India has secured its place at the top of the list.

China and Malaysia claimed the second and third spots, respectively. Other key outsourcing players which made it to the top 10 are Thailand, Indonesia, Egypt, the Philippines, Chile, Jordan, and Vietnam.

Conducted by AT Kearney and established in 2004, the GSLI is an analysis on the top 50 countries which provide outsourcing services.


Davao: Rising BPO Hub in the Philippines

by @ News Feed

The Department of Science and Technology-Information and Communications Technology Office (DOST-ICTO), along with the Information Technology and Business Process Association of the Philippines (ITBPAP), once again recognized Davao City as the leading "Next Wave City" for outsourcing operations.

According to the region's key promoter, the ICT Council of Davao, the location possesses attributes such as skilled workforce, cost-effective business solutions, government incentives for locators, and peace and security which investors are looking for. Moreover, it is expected to produce over 13,000 graduates next year from 46 local colleges - 14 of which have high levels of accreditation.

Davao's outsourcing industry currently has 20,000 full-time employees. In addition to that, its ICT sector is working on developing and improving high-valued services like software development, animation, and medical transcription.

Other Next Wave Cities identified are Iloilo City, Baguio City, Dumaguete City, Lipa City, Metro Bulacan, Metro Cavite, Metro Naga, Metro Laguna, and Metro Rizal. Metro Manila, Metro Cebu, and Metro Clark are still identified as the Center of Excellence, with Bacolod City joining the roster.


Philippines to Emerge as Non-voice BPO Destination

by @ News Feed

The Philippines is Winning in the Call Center Segment

As more and more clients look beyond India to outsource non-core business operations, the Philippines is poised to emerge as an ideal destination for non-voice BPO work. This is according to a research done by the Everest Research Institute.

With the success of the voice sector or the call center industry in the Philippines, the country has long been established as an offshoring location for voice-based services. While there is significant growth in the non-voice sector for the past three years, clients are not yet aware that the country can provide other BPO services aside from voice-based work. Based on the research, medical transcription and finance and accounting outsourcing are the two non-voice BPO services currently being offered by service providers in the country.

While the Philippines will not likely replace India as the top offshoring destination, significant growth in the Philippine non-voice sector is expected, as the government focuses on developing the non-voice BPO industry and providers expand their service offerings.


India Regains some Call Center Services from PH

by @ News Feed

India lost 50% of Call Center Operations to the Philippines

It is a known fact that India was the one to beat in the call center outsourcing segment. But when the Philippines took over the top spot, India had a hard time recovering from its losses, with the lack of cultural affinity and neutral accent in the largest voice market - the US.

In a study done by the Associated Chambers of Commerce and Industry in India, it was reported that India lost more than 50 percent of its call center operations to the Philippines.

Meanwhile, a report from research firm IDC stated that the business process outsourcing (BPO) market in the US is projected to grow at a CAGR of 4.3 percent, and by 2017, it will be valued at $97.3 billion.

However, growth of voice services in the Philippines may soon slow down as it continues to face attrition, lack of manpower, etc.

Proof of the movement between these countries is the transfer of 600 jobs from the Philippines to India because the employees in India are better at upselling services. Companies such as Telstra are bringing back operations to India because of the skilled sales people - further proof that India is a feasible player in the voice outsourcing segment and work will slowly start coming in.

Also, different types of platforms such as email, social media, and chat are being integrated by multinational companies. These are eliminating constraints for India in terms of offering "purevoice" services.


BPAP Eyes 1.3M BPO Workers by 2016

by @ News Feed

The Business Processing Association of the Philippines (BPAP) is looking for 120,000 English-proficient individuals to fill positions in the country's business process outsourcing (BPO) sector as it aims to hit the target of employing 1.3 million workers by 2016. It is also predicted to become a US$25-billion industry in four years.

BPAP President Benedict Hernandez said they anticipate achieving the goal of employing 1.3 million, with strong support from the government and academic institutions which are set to help produce driven and competent candidates.

Some of the programs provided by BPAP are certification, training, and HR development. They also hold regular drills for trainers and prepare the youth for job applications, with the help of the Commission on Higher Education (CHED).

He added that BPAP is teaming up with government bodies to mend mismatched jobs and improve the skills of the local workforce in the long run.

In line with that, the information technology and business process outsourcing (IT-BPO) and global in-house center (GIC) industry is striving to draw more candidates.

Some of the high-valued services provided by large outsourcing firms in the country are multi-service delivery in consulting, IT and engineering, financial, manufacturing, customer engagement, public services and healthcare, facility management, security, real estate, and support services.


Outsourcing to Digital Marketing Agency

by admin @ » Blog

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

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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).


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.


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.


BPOs in Visayas Stop Operations during Typhoon Haiyan

by @ News Feed

According to Jose Mari P. Mercado, President of Information Technology and Business Process Association of the Philippines (IBPAP), business process outsourcing (BPO) companies in the Visayas region were temporarily halted to ensure the safety of employees who are seriously affected by the super typhoon.

Typhoon Yolanda, known globally as Haiyan, is reported as the world's strongest typhoon to hit land. It battered the Visayas region and some parts of Luzon.

Cebu and Iloilo are the outsourcing hubs in the Visayas region that were hit by the super typhoon. Although Mercado said they still have no concrete data on the extent of the damage left by the typhoon, they are sure that these hubs were affected.


Everest: Global Outsourcing Contracts Up 6.6% in Q2

by @ News Feed

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.


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.


UK Outsourcing Activity Slows Down

by @ News Feed

Outsourcing Activity in UK Declines

The recent data from Information Services Group (ISG) on UK’s public sector outsourcing market shows that this year is lower compared to last year’s activity levels.

Figures from ISG’s Outsourcing Index for Europe, Middle East, and Africa (EMEA) show that the UK public sector market was worth €4.6bn for the first half, which is twice as much as this year’s €2.0bn for the same period.

The report covers IT and business process outsourcing (BPO) contracts such as finance, human resources, among others that are worth €4 million or more. However, for Q1 2013, IT contracts are identified to have led the entire region - accounting for nearly two-thirds of contracts.

Meanwhile, the public sector trend in the EMEA region noticeably declined from last year’s first half (€3.1bn) to €2.4bn this year for the same period. The UK was also identified to be the market within the EMEA with the highest figures posted since 2008, and just recently, exceeded its five-year average.

All in all, across the EMEA region, the UK maintains its position as the top destination for public sector outsourcing. In fact, €2bn worth of public sector outsourcing activity posted by the UK represents five-sixth of all public sector outsourcing activity in EMEA.


Anchor Text Guide for 2017

by Nathan Gotch @ Gotch SEO

This is Premium Content from Gotch SEO Academy. Enjoy! What is anchor text and how do you use it? Don’t worry! This guide will show you how to use anchor text so that you can maximize your SEO results. Let’s jump right in: Table of Contents What is Anchor Text? Anchor Text Before Penguin 10 […]

Think You Have To Outsource SEO To An Expensive Firm? 5 Things You Can Do In House

Think You Have To Outsource SEO To An Expensive Firm? 5 Things You Can Do In House

Search Engine Land

Once upon a time, I had a lot of faith in SEO firms. I sought out top companies in the industry and paid thousands of dollars. What I got in return were mi

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by Alexander Felsch @ NYC SEO Authority

7 Deadly Web Design Mistakes For every website, the conversion should definitely be the endgame. A website's basic purpose is to have its page convert into either a contact from a prospective client or a sale. I am confronted almost every day with websites that don't include ways for visitors to interact, with the website [...]

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PH Receives another Investment Rating Upgrade

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The Philippines is on a streak in obtaining investment grade rating this year as it was awarded its third from Moody's Investors Service, a renowned credit rating agency, giving the country a Baa3 rating from the initial rating of Ba1. The first two agencies that gave the Philippines credit rating upgrades were Fitch Ratings in March, followed by Standard and Poor's last May.

Malaca�ang was overjoyed when the news came out and Secretary Ricky Carandang of the Presidential Communications Development and Strategic Planning Office said the agency's "positive outlook" remark is a surprise for them because this could mean another upgrade if all goes well in the future.

Moreover, Carandang said the upgrade is proof that the international community is confident with the Aquino administration's financial management abilities.

Moody's identified these key drivers: political stability, improved governance, and fiscal and debt consolidation. The agency also noted the smooth movement of the country's economic structure and performance to higher growth with low inflation.

In line with that, the economy expanded further from last year's strong 6.8 percent growth, to 7.6 percent for this year's first half. Moody's noted that with those figures, the Philippines posted one of the fastest growth rates in the Asia-Pacific region throughout emerging markets worldwide.

However, Moody's pointed out that compared to other investment-grade countries, revenue generation is still smaller, but the country is able to make way for infrastructure improvements and social spending.

Although the government shutdown in the US is anticipated to rock economies globally, Moody's was said to have taken note of the Philippines' resilience to external financial challenges � citing its impartiality to foreign loans as a rating factor.

The improved domestic spending activity of the Philippines is also identified as an indication that it possesses a healthy external payments position. Also, it shows liquidity in its banking system, which is likewise identified by Moody's as the only system to have positive outlook globally.

It is also anticipated that the country will post account surplus because of the influx of remittances from overseas Filipino workers and the robust business process outsourcing (BPO) industry.

With the strong performance of the Philippine economy, Moody's said it is unlikely for the investment rating to go down any time soon, but the macroeconomic instability of the country such as an erosion of the country's payments position, rise in debt-servicing costs and deterioration in fiscal/debt metrics can be detrimental in the future.

Meanwhile, Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said the upgrade is a strong indication of the country's solid prospects and that the latest rating upgrade could help in attracting more investors, which in turn will possibly fuel the growth of the economy.


Cloud Highly Considered in Outsourcing Contracts

by @ News Feed

Preparing for Cloud Technology in Outsourcing Contracts

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

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

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


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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15% Growth in BPO Revenues Seen for 2014

by @ News Feed

The BPO sector's revenues are predicted to grow by 15 percent this year, bringing in over $15.3 billion, and are expected to act as the balancing factor for the country's earnings.

The Philippines' flourishing business process outsourcing (BPO) sector is identified as a key contributor to the growth of the local economy. The sector has been cited as an attraction for foreign investors and a source for foreign currency earnings. But it still faces challenges as its Asian counterparts are stepping up in the outsourcing services space.
In the "2013 Top 100 Outsourcing Destinations" list created by strategic offshore consultancy firm Tholons, seven cities in the Philippines have been included - two of which are in the top 10.  Manila is second next to Bangalore while Cebu took the eighth spot.  Other Philippine cities were Santa Rosa, Davao City, Bacolod, Baguio, and Iloilo.
These cities, along with other emerging ones, are said to be contributing significantly to the Philippine economy through export services to businesses abroad. In line with that, a report from Bangko Sentral ng Pilipinas (BSP) showed that the BPO sector is the top contributor for tangible revenue by producing export earnings amounting to $13.3 billion in 2013. The tourism industry, on the other hand, posted $4.8 billion in earnings for the same year. Remittances from overseas Filipino workers remain as the top source for foreign exchange amounting to $22.5 billion last year.

Meanwhile, the balance of payments surplus has been declining in recent years from 2012's $9.2 billion to just $5 billion last year. BSP said it will continue to drop and reach about $3 billion due to the additional inputs from imports of manufacturing operations, and purchases of energy and raw materials.


Contact Centers may Soon Hire Agents based on Computer Skills

by @ News Feed

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

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

Be computer-savvy to land a contact center job

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


PH BPOs Worried about Proposal on Tax Breaks

by @ News Feed

PH BPOs Worried over Removal of Tax Incentives

Call center companies in the Philippines are eagerly waiting for the official announcement on tax incentives. The Contact Center Association of the Philippines aired their sentiments regarding the possible removal of tax breaks from the perks given to the outsourcing industry, saying it would weaken the sector and affect its achievements.

In a press briefing at SMX Convention Center, CCAP President Benedict Hernandez said officials need to see it from their point of view, stating that the proposed adjustments could be detrimental to the growth of the industry and affect job production in the country.

The key issue revolves around the outsourcing companies registered at the Philippine Economic Zone Authority (PEZA) that are entitled to an income tax holiday of four to six years. This is on top of other incentives that these organizations are already getting.

CCAP pointed out that call centers prefer the income tax holiday for six years instead of the proposed reduction of the corporate income tax of 10 percent for 15 years.

Hernandez added that other countries are getting better incentives, and though the Philippines’ package is not the best, they don’t want to have it worse.

Everest Group, on the other hand, said the Philippines is still the top destination for voice processes, taking up 36 percent of the total market share of outsourced services globally.
Voice functions take the lion’s share with 90 percent, followed by non-voice processes such as email and chat support that are seen gaining traction as demand continues to increase.


Better SEO Conversion – Tracking Leads Phone Calls & Emails

by Mr. SEO @ Mr. SEO

How to Track SEO Conversion through Phone Calls and Emails for Your Business  If you’re running a business online, SEO is just the first step to making your business successful. Effective SEO will get you to the top pages of the search results, and that leads to more traffic for your site. The ultimate goal […]

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BPOs to Set Up Shop in Cebu

by @ News Feed

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.


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.


Search Engine Optimization | SEO Outsourcing | Agency SEO Insights

Search Engine Optimization | SEO Outsourcing | Agency SEO Insights

SEO Brothers

Search engine optimization insights from the SEO Brothers. Click here to learn how we can help educate and train you to deliver world-class SEO solutions.

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…

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New Site Ranking

by E-Curtis-Designs @ Sacramento Web Design

I would imagine that most of you have a general understanding of the fundamentals of SEO by now, so this post is intended as a working example (case study if you will) of how to get a new website to rank well, and what will affect that ranking.  If you are yet unfamiliar with the…

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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.


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.


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.


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.


Latest Investment Upgrade to Fuel PH Economy

by @ News Feed

The investment-grade rating given by Moody's Investors Service to the Philippines will help in maintaining the country's strong growth momentum.

According to Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr., the potential for growth trumps the risks for the economy of the Philippines. He also noted that apart from the investment grade rating, the outlook is also positive amid the global financial issues.

With the strong growth of the Philippines, the improved fiscal management of the local administration, balance of payments, and debt ratio are also seen as crucial factors that contributed to the upgrade.

For the first half of this year, the country grew 7.6 percent which was one of the fastest in the region. Moreover, the debt-to-GDP ratio declined and the balance of payments posted a surplus as well.  

Tetangco also cited the reduced foreign loans of the country brought on by forex from OFW remittances and the business process outsourcing (BPO) industry which have helped balance the country's spending.


BPAP Launches National Competency Test

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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.


PH Call Center Industry Expected to Grow

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With the strong position the Philippines has in the global call center outsourcing industry, the Contact Center Association of the Philippines (CCAP) estimates that the voice sector has grown almost a fifth from the previous year.

According to CCAP President Benedict C. Hernandez, based on the reports submitted by the organization's members, they are seeing an 18-19 percent growth for 2013. He added that the sector's key markets are the United Kingdom and Australia, which are now being considered as "fast-growth markets". Meanwhile, the market share of the US has declined from 90 to 80 percent.  

Furthermore, the executive pointed out that the growth of the local voice outsourcing sector depends on the activities among existing service providers in the Philippines, as well as the entry of new competitors.

The actual growth figures for 2013 are set to be released in February or March.


PH BPO Industry Eyes $13B in 2012 Earnings

by @ News Feed

PH BPO industry targets 19% increase in revenues

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

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

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

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


Australian Companies: Why They Choose Offshoring to the Philippines

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In recent years, offshoring business processes has become a popular way to cut back on expenses and get menial tasks done more efficiently. While there are a few different options in regards to the country you may choose to outsource to, more Australian companies are outsourcing/offshoring to the Philippines every year. Why do these Australians […]

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Everest: Number of Outsourcing Contracts Decreases in Q3 2011

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The outsourcing market appears to be weakening as the number of signed contracts during this year's July-September period dwindled to 472, compared to 503 deals posted by last year's Q3 and 516 contracts of 2011's Q2, according to advisory and research firm Everest.
Amneet Singh, Vice President (Global Sourcing) at Everest, said the decline in global transaction volumes indicates a slowdown in outsourcing activity. However, even if there were fewer contracts this year, the global transaction volumes amounted to USD 2.7 billion in annual contract value (ACV) for this year's third quarter mainly because of large contracts.
Meanwhile, the number of valid transactions in IT outsourcing and BPO markets decreased by seven percent and 12 percent, accordingly. Nevertheless, IT outsourcing's ACV was up 14 percent during Q3 2011, whereas BPO decreased by 50 percent.
Everest stated in its Market Vista report that some of the sectors which contributed significantly are the Banking Financial Services and Insurance (BFSI) sector and manufacturing, distribution, and retail (MDR) segment. Contracts from the public sector decreased by 31 percent in volume and 48 percent in ACV.

On the other hand, the number of captives increased in Q3 with 20 new centers, compared to only four captive centers and nine expansions during the same period of last year.


Clients Miss Opportunities as They Focus Too Much on SLAs

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Business Strategies Overlooked?

A recent study done by Accenture and Shared Services and Outsourcing Network (SSON) stated that outsourcing providers and clients are mostly consumed by service level agreements (SLAs) and are forgetting business strategies in contracts.

Forty-two percent (42%) of the 600 respondents said their time is spent discussing SLAs rather than business outcomes. On the other hand, 25 percent said they used to do the same thing but have changed the process.

According to Tom Pettit, managing director of North America business process outsourcing at Accenture, although SLAs are vital for IT and BPO contracts, they can also confuse both parties from future developments. "SLAs are an important part of any managed service engagement. They set expectations and necessary service performance targets. However, the overwhelming majority of SLAs are focused on measuring process inputs, rather than business outcomes."

Cutting costs may be the driving force for clients and providers to overlook operational metrics. Fifty-eight percent (58%) of the respondents said they outsource work because they wanted to cut costs, 19 percent did it because they wanted access and capacity, and 12 percent did it for risk reduction.

It is also stated in the study that most of the outsourcing customers fail to gratify some members of the management team, which has become a problem. "The centralization of services, whether in an internal shared services model or in an outsourced model, involves shifts in power and influence, changes in roles and responsibilities, and disruption of familiar ways of working. These are notoriously difficult and often deeply personal issues that require focused and sustained management attention over extended periods of time," said Pettit.


PH BPO Revenues Poised to Reach $48 Billion by 2020

by @ News Feed

According to Vikrant Khanna, principal at strategic advisory firm Tholons, with the Philippines' compounded average growth rate (CAGR) of 9-12 percent seen during 2004 up to 2014, the local business process outsourcing (BPO) sector could expand and be worth $48 billion by 2020.

Khanna presented during the recent International Summit hosted by the Information Technology and Business Process Association of the Philippines (IBPAP) and pointed out that for the global BPO industry, CAGR was only 5-7 percent during the same period. The global outsourcing industry is projected to be valued around $250 billion by 2020. If the CAGR sustains its momentum, the Philippines could capture $48 billion or 20 percent of the total global projections.

IBPAP and the Department of Science and Technology teamed up in creating the information technology and business process management (IT-BPM) roadmap where it is predicted that the BPO sector of the Philippines will employ 1.3 million and be valued $25 billion by 2016. These revenues are only 12 percent of the global outsourcing industry.

Meanwhile, Science Secretary Mario G. Montejo said the goals for 2016 can be easily attained and doubled by 2020. IBPAP also remains positive and confident on the country's ability to reach the 2016 goals.


More US Healthcare Firms to Outsource to PH

by @ News Feed

After the road show piloted by the Department of Trade and Industry (DTI) in the US, American business process management (BPM) firms that are dealing with healthcare processes are considering the Philippines as a destination for expanding their operations.

According to Ponciano C. Manalo, Undersecretary of DTI, they went to New York, San Francisco, Atlanta, and Washington, D.C. and a lot of participants aired their interest to invest in the country. One of the key reasons, he said, is that the demand for outsourcing within the sector is really high. There are a lot of opportunities in the Philippines as well because of the recently ratified Affordable Healthcare Act in the US.  

The entire global healthcare information management industry is worth $3 billion, and the Philippines only represents $400 million. However, there are already plans to increase it to $1 billion by 2016.
Data from the National Statistical Coordination Board indicate that for the second quarter of this year, US posted the most investment pledges amounting to P43.2 billion in the country. Japan came in second with pledges amounting to a total of P4.2 billion, and the Netherlands with P3.8 billion.



Employee Retention still a Challenge in PH BPO

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According to a research report initiated by the Department of Science and Technology-National Research Council of the Philippines (DOST-NRCP) last year, those who are employed in the business process outsourcing (BPO) industry of the country are generally happy with their lucrative jobs. However, they stated that their stint in the industry is not long-term because of health and social challenges.

Almost 700 BPO workers joined the "Health and Social Policy Issues of BPO Workers in the Philippines: Is Happiness at Work Attainable" survey conducted by researchers Nimfa Ogena and Soccoro Rodriguez. Fifty-one percent of the respondents were from Metro Manila, 21 percent from Cebu, 15 percent from Davao, and 13 percent from North Luzon.

Respondents from the BPO industry happy but planning to leave

Ogena pointed out that even if majority of the respondents are happy with their jobs in the BPO industry, a lot of them are planning to leave in the next 12 months. Most of the respondents are in the voice segment, while others are in the non-voice segment which includes software development, back office, medical transcription, and engineering.
Some of the survey questions covered issues such as health and well-being, happiness, and problems that need to be addressed by the local government.

When asked why they want to join the BPO industry, 77 percent said they want the high salary, 65 percent said they want to gain experience, and 64 percent said it’s because of the benefits package. 

As for the health aspect, the study revealed that 50 percent were of "average health" and 25 percent were "healthier than average".

The researchers sought the assistance of BPO supervisors in the selected test sites so they could validate the online responses of employees properly.


UK Outsourcing Activity Posts 35% Growth this Year

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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. 


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

by @ News Feed

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.



Doing On Page and Off Page SEO With Modern Techniques 2017

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Search Engine Optimization (SEO) is the only way of increasing traffic and getting good ranking in the search engine results (SERP). Those of webmasters who often segregate some SEO techniques … Read more

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US Anti-outsourcing Efforts Expected to Intensify

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According to Pasig City Rep. and House Deputy Majority Leader Roman Romulo, anti-outsourcing efforts will intensify as US politicians are aiming to get more sentiments from voters. He adds that the phenomenon is just a political ploy for the November elections and that the Bishop bill is not a threat to the constantly growing business process outsourcing (BPO) industry of the Philippines.  

The Bishop bill is the proposed US Call Center and Consumer Protection Act by New York Rep. Tim Bishop. It will affect US businesses that are moving jobs overseas. If the bill is sanctioned, the firms will be disqualified from loans and grants, and would have to abide by new contact center protocols.  

Romulo is a known supporter of the country's outsourcing industry which is expected to employ 1.3 million Filipinos and post $25 billion in revenues by 2016. He noted that it is an advantage for US firms that they are able to procure more affordable non-core services such as call center processes from countries like the Philippines. He added that those with outsourcing operations in the country are likely to be returning profits to their respective companies in the US. He also noted that without the cost-saving feature of outsourcing, prominent financial institutions would probably cut more jobs as the economy is deteriorating.


The Potential Benefits of SEO Outsourcing |

The Potential Benefits of SEO Outsourcing |

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India, US Vow to Resolve Issues before Obama Visit

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India Hopes to Resolve Issues for IT Workers

In a joint statement, India and the US vowed to put an end to issues such as the outsourcing ban of Ohio and the increase in visa fees before the visit to India of US president Barack Obama.

Indian Minister of Commerce and Industry Anand Sharma aired India’s concerns about the anti-outsourcing moves of the US, saying that the trend “had created an avoidable feeling of negativity in the service sector." Sharma said, "when the global economy is still reeling from the aftershocks of the economic crisis and coming out of the recession any inward looking step of protectionist measure would slow down the pace of recovery and deepen the recession."

It was reported earlier that India criticized the passage of a US bill stating that visa fees for IT workers coming to the US will increase. This was followed by the issuance of an executive order in Ohio, banning the transfer of government IT and back office projects offshore.



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Cebu's BPO Stakeholders Revive Dept. of ICT Proposal

by @ News Feed

After three years when the creation of the Department of Information and Communication Technology (ICT) was first proposed, the stakeholders in Cebu's business process outsourcing (BPO) industry raised the said proposal to President Benigno Aquino III.

Cebu Education Development Foundation senior advisor Bonifacio Belen spoke on behalf of the BPO industry, saying that the creation of the Department of ICT would make government processes simple, reduce corruption, and ensure transparency. There is also a need for a national broadband network, and the new department would make it a priority. �At present, our telecommunication companies are only able to provide broadband Internet services to 66 percent of the whole country. Unlike in other countries like South Korea where all nooks already have at least 10 megabytes of broadband service. We need to also do that here especially that we have already started the automated voting,� said Bonifacio.

However, the President said the administration has yet to evaluate the proposal in terms of having many consultants and agencies that may be deemed redundant.


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.


Four Influential Factors in the Business & IT Services Market

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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.


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Talent Shortage Still an Issue in PH BPO

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

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

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

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

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


ISG Releases 2016 Q1 Outsourcing Index

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ISG Q1 2016 Outsourcing Index

According to the Outsourcing Index released by technology insights and market intelligence and advisory services company ISG (Information Services Group), smaller deals, which are contracts worth $40 million or less, rose 40 percent to $4.1 billion. Contracts that underwent changes surged 48 percent to $2.8 billion. Also, the volume and value of outsourcing contracts across the globe increased during this year’s first quarter.

The ISG Outsourcing Index interprets data collected from commercial outsourcing contracts with an annual contract value (ACV) of $5 million or more and it found that the ACV for the first quarter of this year climbed 20 percent to $6.1 billion.

It was also discovered that Q1-2016 is the second quarter that saw a contract volume exceed the 400 mark with 404 deals. The first ever was Q2-2015 with a record volume of 446. Compared to last year, the volume of contracts is 32 percent higher, propelled by restructurings which make up 78 percent or 173 of the total number of deals. Also, information technology outsourcing (ITO) contracts grew 51 percent to 301 deals. On the other hand, only five mega deals (contracts that are worth $100 million and more) declined from last year’s seven.
During the last 12 months, ACV totaled $24.7 billion. This is the highest level in the last four years and volume peaked with 1,542 contracts.

ISG cited their forecast for this year, saying 2016’s first quarter did far better than 2015 with ACV surpassing $6 billion for the second quarter which is an indication of a healthy market flow.

John Keppel, Partner and President of ISG, further explained that there’s a balance between the volumes of new deals and restructured ones. This means that there are a lot of opportunities in the market. Moreover, even if the use of the cloud is gaining traction, strong growth in ITO value and volume proves that IT solutions are positively impacting multiple areas in the outsourcing sector.

The total value of ITO contracts in the first quarter grew 24 percent to $4.2 billion. Business process outsourcing deals climbed 12 percent to $1.9 billion, despite a slight decline in the volume of BPO deals.


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RP BPO Urged to Penetrate European Outsourcing Market

by @ News Feed

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.


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.


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.


Everest Study: Enterprise Crowdsourcing Offers 70% Cost Advantage

by @ News Feed

Large businesses to use enterprise crowdsourcing instead of traditional BPO

The results of the study “Every Crowd Has a Silver Lining” done by Everest Group and Lionbridge Technologies, Inc. (Nasdaq: LIOX) showed that more and more large organizations are inclined to use crowdsourcing instead of traditional business process outsourcing (BPO) for its cost reduction features, flexibility, and provision of access to a more diverse talent pool.

Other vital results of the study are:

• Companies use the ‘private crowd’ model for processes like content localization, support for the shift from traditional BPO, and more.

• It provides more economic advantages - around 70 percent compared to traditional outsourcing.

• Companies enjoy reduced costs in labor and recruitment as crowdsourcing enables them to gain access to talent more quickly.

• Contracts that have been using crowdsourcing for quite some time gain additional perks from third-party service providers like quality assurance and management infrastructure.

The report also stated that crowdsourcing is also applied to almost 50 percent of processes that are related to products and manufacturing.

Sarthak Brahma, Practice Director, Pricing Assurance, Everest Group said crowdsourcing is a new wave method of using global professional services for new processes and is almost as cost-effective as traditional BPO.

Enterprise crowdsourcing is perfect for companies that have large staffing requirements. It enables companies to make use of a variety of talents from pre-qualified workforce to “private crowd”.  In line with that, the managed service providers see to it that clients are able to maximize the benefits of crowdsourcing.


SEO Outsourcing Warning

SEO Outsourcing Warning

Sacramento Web Design

Ok, so when you hear an “SEO Company” tell you something that sounds too good to be true, it probably is. For those of you looking to outsource your SEO efforts, here’s a quick list of times you should question your SEO consultant or online marketing agency. Question getting links by auto-generation of content or…

Expert Shares Key Factors for IT Outsourcing

by @ News Feed

A lot of companies nowadays are looking to outsource IT operations by means of the cloud platform. However, the main concerns of the business companies that are adopting the new technology are still to reduce costs and gain access to more flexible contracts. IT groups, on the other hand, are having issues with the security and service levels.

Important factors for IT outsourcing

For businesses that are planning to avail of cloud services, IT expert Michael Robert from shared five important factors to take into consideration:

Business owners should look into the requirements of their IT infrastructure and operation. They should also check if their processes are compatible with the cloud. Since businesses have sensitive information and are ruled by strict regulations, it may be best to keep the processes in-house.  

Robert said businesses should look into additional costs for future development and unpredictable scenarios. Also, businesses need to consider the different benefits of the process and not to focus only on cost reduction because IT outsourcing serves other purposes like support for the current IT structure.

His fourth rule focused on the preparedness of the current/in-house networks and bandwidth capacity. He said these things should be well thought of to avoid problems. Lastly, Robert said that businesses should research about the service provider and know the vital areas where they excel or fail.


Clicks, clicks, clicks…

by Clinton Dickerson @ CreatorSEO

Selections / Clicks for a typical Search Engine Query Every day, millions of people use search engines like Google and […]

The post Clicks, clicks, clicks… appeared first on CreatorSEO.

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.


Aquino: PH Ready for New Zealand Investors

by @ News Feed

President Aquino: PH now Ready for Investments

During the Philippine-New Zealand Business Forum, President Benigno Aquino III mentioned the hard work his administration has done to restore order. The administration battled corruption, reformed budget provisions, and implemented stricter rules in sourcing. He then quipped that now is the time to invest in the Philippines.

He added that the current government was able to accomplish crucial factors that were not addressed by his recent forerunners, one of which is to possess a business environment based on fairness and integrity. His administration was also able to promote transparency and equality among businesses.
Furthermore, he informed New Zealand investors that they can find the right partners based on their competency and not through political favors or “under the table” processes. Other industries and products such as electronics, home furnishings, and garments were also mentioned by the President.
According to the President, the robust business process outsourcing (BPO) industry had contributed $.7.38 billion in revenues for 2011, fuelled by customer-oriented Filipino workers.

Gartner: BPO Companies to Increase Spending this Year

by @ News Feed

Fifty-four percent (54%) of the 600 mid-to-large companies that were surveyed declared that they are planning to add 5% or more to fund their BPO projects, while 20% are planning to escalate BPO budgets by 10%, showing that opportunity to expand BPO or IT outsourcing has indeed returned since the recession.

Teresa Jones, principal research analyst at Gartner, said, "Many of these budget increases are driven by the fact that BPM is focused on improving business outcomes and explicitly meets the objectives of many organisations' return-to-growth strategies.�

This could be advantageous for the key players in the international BPO market -- India and the Philippines. Twenty-five percent of the participants in the Asia Pacific region were planning to increase BPO expenditures by more than 10%, which shows that �return to growth� trend is more aggressive than the 20% rate globally.

Also, companies turn towards BPO expansion rather than IT outsourcing, for they see that BPO offers more opportunities.


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.


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.


PH BPO Revenues to Match OFW Remittances by 2016

by @ News Feed

BPO Revenues Catching up with Remittances

Department of Transportation and Communication (DOTC) Undersecretary Rene Limcaoco said the business process outsourcing (BPO) industry closely lags behind OFW remittances in terms of earnings for the Philippine economy, but will continue to grow and match revenues from Filipino workers who are working overseas. This is likewise stated in the 2011 report from the industry body Business Processing Association of the Philippines (BPAP).

The report also states that the BPO industry contributed around $9 billion or 4.8 percent of the country’s gross domestic product, and it is predicted that it will be on the same level with the remittances of OFWs reaching nearly $25 billion in 2016.

The targeted revenue for the BPO sector this year is $11 billion.

The Philippines is now considered as the top global outsourcing location of choice in terms of voice-based services.


European businesses unaware of outsourcing value

by @ News Feed

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

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

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

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

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


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.


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.


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.

Gartner Predicts Increase in AU Data Center Activity in 2012

by @ News Feed

IT research and consultancy firm Gartner recently released its data center market predictions which show that data centers in Australia will reach 49,577 this year, but would drop to 45,545 by 2015.  

According to one of Gartner's Research Vice-presidents, Phil Sargeant, companies in Australia are looking for better solutions in managing their data centers. Many are thinking of using the internet to consolidate and transfer data from several physical sites into one to two sites. It was also predicted that AU$2 billion will be spent by Australian firms this year on data center hardware.

Naveen Mishra, another Research Vice-president at Gartner, said that according to business leaders they've spoken to, budgets for data centers will be controlled while the operations are eyed to provide greater return on investments due to constant upgrades of the technologies needed for the sites.

Furthermore, it is said that high construction costs for data centers in Australia, support issues, and long-term and fixed contracts with vendors are starting to become off-putting. This resulted to frustrated companies in Sydney, Melbourne, and Brisbane and drove them to rethink about their data center outsourcing strategies and contemplate on building data center captives of their own with cloud integration.


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.


RP BPO Sees Market Potential in Medical Transcription

by @ News Feed

Demand for Medical Transcription Outsourcing

After voice-based outsourcing or call center work, medical transcription outsourcing seems to be the next niche to be tapped, considering that the country has a pool of workers with English proficiency and educational background in the field of medicine.

Five years ago, there were more than 100 companies offering medical transcription services in the country. However, Myla Rose M. Reyes, Medical Transcription Industry Association of the Philippines, Inc. (MTIAPI) president and managing director of Total Transcription Solutions, Inc., said that number is now down to 50. The decrease in number of medical transcription companies is due to factors including output quality, competitive market, and the state of the economy. “While the Philippines maintains its reputation for better quality medical transcription, the thinning price points and margins are limiting the local companies’ ability to offer attractive career options and compensation packages for medical transcriptionists,” she said.

The training is also another challenge in medical transcription outsourcing. Reyes said workers need several months to acquire the necessary skills, but she is still confident of the market potential of this niche.



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.


Subic Free Port Steps Up Development

by @ News Feed

Subic Free Port Emerging as Services and Logistics Hub

The Subic Bay Metropolitan Authority (SBMA), a former US military base in the northern Philippines, is bent on becoming the region's hub for the services and logistics sectors as they accelerate plans on developing priority investment zones in the sprawling free port complex.
“We are very proud of the fact that we have attracted cumulative investments worth more than $7.16 billion and almost 1,500 investment projects as of 2010. Unfortunately, these investments won’t bring any economic benefit to us if they do not materialize for lack of space,” explains Armand Arreza, SBMA administrator.
Among the zones to be redeveloped is the Subic Gateway Park, which already hosts several business process outsourcing (BPO) companies. Arreza comments that the Subic Gateway Park is ‘emerging to be primarily our business process outsourcing (BPO) center within the next few years.’
Arreza says a 16-hectare area adjacent to the Subic Gateway Park will be developed into the new Gateway Business District, which will offer additional office space to the country’s expanding BPO industry.


India and RP unite vs. EU, US anti-outsourcing policies

by @ News Feed

The Business Process Association of the Philippines (BPAP) is scheduled to meet with members of India's National Association of Software and Services Companies (Nasscom) for a unified effort against plans of anti-outsourcing policies in the United States and in Europe.

The Philippines and India lobby against anti-outsourcing policies

The US and the European Union have gathered plans to enact protectionist legislations that would deter companies from outsourcing jobs offshore. Nasscom, India's main body representing the Indian software industry, has already been actively lobbying against this and has recently talked to BPAP to gain the Philippines' support.

"The Philippines and India are both BPO superpowers, so we need to have a common stand. We need to be ahead of the curb," said Jonathan de Luzuriaga, BPAP's executive director.

"Nasscom said we are No. 2 BPO destination in the world so we should help them out. It's just a matter of educating some geographies that outsourcing is now a reality and a global trend," he further added.

The meeting will involve plans to come up with a common position paper to be sent to the US and Europe. Nasscom and BPAP have agreed to explain the benefits of outsourcing directly to American and European companies should their efforts to stop protectionist legislation fail.


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.


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

by @ News Feed

PH BPO Goal for 2016

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

Buyers Taking Slow Approach to Outsourcing

by @ News Feed

Outsourcing Buyers Taking their time in Making Decisions

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

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

Other key findings include:

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



Gov't Official Calls for Stronger Alliances within Asia

by @ News Feed

According to a Cabinet official, country members of the Association of Southeast Asian Nations (ASEAN) can be protected from economic turmoil of Europe and the US by reinforcing alliances within the region.

During the Credit Suisse ASEAN+India Conference in Singapore, Finance Secretary Cesar V. Purisima said "What is becoming very clear is that [for] countries like the Philippines and other members of ASEAN, we’ll have to look ... at how we can continue to pursue our growth strategy with domestic consumption within our own country, within ASEAN and intra-Asia."

Purisima highlighted that the region is becoming independent from advanced countries and that a part of the dealings are made within Asia, having US as the fifth trading partner - behind China and Japan.

Increased competition in the Philippine BPO space

Though India is responsible for only 2.5% of ASEAN trade, Purisima said that having an ASEAN engagement with India will be very crucial. He also said that the Philippines is heading in the right direction to strengthening partnerships with India. The Philippines is currently ranked third in the list of outsourcing destinations. “We’re seeing increased engagement of Philippine-based companies with Indian companies and Indian companies competing in the Philippine BPO space.” He added that there is a need to work together so both countries can take part in the direction the global economy is heading.


TwoE-comCenter Bags Best Office Development Award

by @ News Feed

In the annual Asia Pacific Property Awards held in Kuala Lumpur, Malaysia last April 27, SM Land’s TwoE-comCenter at the Mall of Asia Complex (MOAC) in Pasay City was named as the best office development for 2012. This was organized by UK-based organization International Property Awards Group.

The Asia Pacific Property Awards aims to identify the best in real estate development and professionals worldwide.

David Rafael, SM Land Senior Vice-president and Head of Commercial Properties Group, said they were honored to receive the award, and their clients push them for the best and reach for success. Rafael noted that with their latest five-star win, SM Land prides itself for helping the Philippines become known all over the world for developing commercial properties.

E-com buildings home to business process outsourcing operations

The E-com buildings are geared for business process outsourcing (BPO) operations, equipped with high-technology facilities, capabilities, and unique design features.
The designers of TwoE-com are Arquitectonica, a Miami-based international design firm, and FS Lim & Associates which is the local architect counterpart.

One of the delivery centers of MicroSourcing is at the 10th floor of TwoE-comCenter.


BPO Revenues Seen to Make Up for Slowdown in Remittances

by @ News Feed

There may be weak global trade and a predicted slowdown in remittances from Filipinos working abroad, but revenues from the ever growing business process outsourcing (BPO) sector are seen to keep the Philippines' current account in surplus.

Jose Mario Cuyegkeng, economist at ING Bank, said flat growth is seen in remittances in 2015, posting a total of $22.83 billion in the first 11 months of last year. According to data from the Bangko Sentral ng Pilipinas (BSP), this was higher by only 3.6 percent compared to 2014 remittances which posted 5.9 percent growth reaching $24.438 billion. This accounted for 8.5 percent of the country's gross domestic product.

Meanwhile, economists from ANZ Research had also seen a slowdown in remittances, forecasting a .7 percent contraction in December as Philippine peso weakens against the US dollar. This makes the year's growth rate to only 3.2 percent.

On the other hand, BPO revenues are predicted to post strong growth this year at 15-16 percent, keeping the overall structural inflows growing. Information Technology and Business Process Association of the Philippines Chairman Danilo Sebastian Reyes said the sector was seen to post 16 percent growth in 2014, with revenues reaching $18.1-18.4 billion. The robust growth of the sector would also enable the country to post a positive position when it comes to external payments, even with the current slowdown in external demand and global growth potential.

In the next few years, BPO revenues are expected to surpass remittances, according to economists.


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.


Telco Company Seeks Call Center Agents with British Accent

by @ News Feed

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.


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.


UK Firms Looking beyond Cost Savings in Outsourcing

by @ News Feed

Industry consultancy firm KPMG, recently reported that 490 UK outsourcing contracts worth �10 billion are using outsourcing for customer service improvement, rather than just to reduce costs.

It was also found that businesses are now more willing to invest as economies are getting better. Some factors they are looking to spend on are innovation and new technology, mainly if they see the benefits in improving customer service operations.

Through KPMG's "Service Provider Performance and Satisfaction" report, it was revealed that 48 percent of the respondents said they based outsourcing decisions on the need to improve service levels, and that there was a 20-point increase in the desire to improve quality from the time the issue was initially raised in 2009.

However, KPMG cited challenges that can stunt the effort to improve organization-wide capabilities. Fifty-six percent of the respondents noted that they outsource to gain access to skilled talent. The report also stated that outsourcing clients want to be more involved in the outsourcing operation, rather than it being an "out of sight" agreement.


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.

Anti-Cybercrime Law Expected to Boost PH BPO

by @ News Feed

Anti-Cybercrime Law to Attract more BPO Investors to the Philippines

The Business Processing Association of the Philippines (BPAP) lauded the passing of the Cybercrime Prevention Act of 2012 as it is anticipated to boost investor confidence and the business process outsourcing (BPO) sector of the Philippines.

The bill was signed into law by President Benigno S. Aquino III last week, which became Republic Act No.10175. The ruling aims to penalize those who are involved in child pornography, online libel, hacking, cybersquatting, identity theft, etc.

Also, the Data Privacy Act was recently signed into a law which strives to protect personal data collected by private and public organizations.

According to BPAP President Benedict Hernandez, the Cybercrime Prevention Act will reinforce the country’s image as a strong player in the high-valued IT-BPO arena. He noted that the provision will be especially beneficial to IT-BPO firms in the country, as most of its processes and information depend on the internet.

Moreover, Hernandez stated that a 20-percent increase in revenues from $11 billion in 2011 to $13 billion this year is expected for the sector and that these developments will help the overall growth of the Philippine IT-BPO industry.


PH BPO to Remain Strong amidst Insourcing Activities

by @ News Feed

The business process outsourcing (BPO) industry of the Philippines is anticipated to continue growing even if insourcing activities are rising in foreign markets. One of its key traits is the ability to maintain its competitive edge in the global outsourcing space.

Department of Trade and Industry Secretary Gregory L. Domingo said executives usually give positive predictions, but decisions on where an operation is to be conducted still rely on competitiveness. The Philippines is found to be in a good competitive position in the information technology-business process management (IT-BPM) segment where cost competitiveness is a major issue.

The insourcing movement was first introduced in the US back in 2012. It was seen as a solution to create more jobs particularly in the manufacturing industry. Government benefits such as tax breaks were even suggested to entice US-based firms to source business processes locally.

Sec. Domingo explained that the manufacturing industry has been improving in recent years, but it's because of the 70 percent decrease in power costs and not to the effort of bringing jobs back home. He added that the IT-BPO growth projections will only be affected if the US implements a policy that forces companies to insource, which is improbable.

Meanwhile, Jose Mari Mercado, President of the Information Technology and Business Process Association of the Philippines (IT-BPAP), said in an email memo that revenues will reach $18 billion this year, a 16-percent jump from 2013's projected $15.5 billion.


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.



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.


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.


Expert Predicts 10M Jobs in Indian IT by 2020

by @ News Feed

IT Jobs in India

During the recent launch of NASSCOM India Leadership Forum 2013 in Mumbai, India, Union Commerce and Industry Minister Anand Sharma said by 2020, the country's IT industry will create more than 10 million jobs annually. It was found that the key driver is the 25 percent increase of the country’s total IT exports. Moreover, it is projected to be valued at Rs 200 billion and produce 10 million jobs. At present, the industry produces three million jobs directly and nine million indirectly.

However, he noted that the more industries, governments, and businesses become overprotective, the more problems they will come across. Instead of improving and acting as remedy, protectionism will worsen economic challenges.

The Commerce Minister is also hoping that that IT sector will perform better than 2012 as the economy is adversely affected and is put in a lot of pressure.  

He is also waiting for the new US Commerce Secretary to assume office so he can proceed with forging new partnerships. He strongly believes that now is the time to be aggressive by engaging, investing, and manufacturing to help boost their respective economies.

Regarding the anti-outsourcing bill in the US, he is hoping that whatever’s being drawn up will not have a negative effect on the IT sector.


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. 


PH BPO Earnings Expected to Grow 25%

by @ News Feed

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.


RP Economy to Hit Growth Goal through BPO, Remittances

by @ News Feed

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

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

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


PH 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.


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RP to Focus more on Higher-value Offshoring Services

by @ News Feed

Higher-value services such as finance and accounting, architectural and engineering work, animation, software development, game development, as well as medical and legal transcription will be highlighted in trade shows and exhibitions of the Department of Trade and Industry. This initiative aims to attract more businesses during these tough financial times and boost the outsourcing industry.

One of these trade shows is the upcoming 10th e-Services Global Sourcing Conference and Exhibition which will be held at the SMX Convention Center in Pasay City. �The e-Services 2010 is geared toward carving a bigger niche for the country in the global offshoring business given the unique possibilities presented by the recession,� DTI said.

The said event is part of the trade promotion program in an effort to further promote the country as the ideal outsourcing destination in Asia Pacific.


PH Stock Market Expected to Grow next Year

by @ News Feed

Expected growth in PH stock market

According to Col Financial Group, Inc. Head April Lee-Tan, they are still optimistic that the stock market will continue to pull up and reach 7,000 next year. However, the flattish earnings of local banks might pose a threat.

Meanwhile, Nomura Equity Research, the research division of Japanese investment bank Nomura, stated that on the earnings and profitability side, the Philippines will post slower growth compared to its counterparts in Southeast Asia. The bank added that Singapore and the Philippines might post the lowest growth rates while the region could experience an average growth rate of nine percent next year.

On the other hand, Tan noted that the country will withstand the challenges as it possesses a strong fundamental framework. She added that even with the unstable state of foreign economies, the Philippines will stay resilient.

Three things that are seen reinforcing the strength of the Philippine economy are the current account surplus of the country, remittances from overseas Filipino workers, and the strong business process outsourcing (BPO) sector.


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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.


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.


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.


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.


BPAP Pleased over US Anti-outsourcing Bill's Rejection

by @ News Feed

In a recent statement, Benedict Hernandez, President and CEO of the Business Processing Association of the Philippines (BPAP), said the rejection of the anti-outsourcing bill in the US is proof that outsourcing is here to stay and will continue to help companies in the Philippines and the US.  

Anti-outsourcing bill rejected

The bill was unable to get enough votes to be approved with 56-42, and was dismissed by the US Senate.

The act aims to provide more employment opportunities for people in the US. However, companies that are moving jobs offshore will no longer receive tax breaks and other benefits from the US government.

The outsourcing process was seen to have helped US businesses to stay afloat during trying times. In fact, Hernandez added that outsourcing has little to do with job losses in the US. Instead, it helps those businesses reallocate resources instead of spending them on additional personnel.

Hernandez highlighted several points from a study done by Matthew Slaughter, an economist at Dartmouth’s Tuck School of Business. He stated that for every job subcontracted abroad, at least two more are created in the US.

The annual revenue of the outsourcing industry in the Philippines is predicted to grow $25 billion and provide 1.3 million jobs. In 2011, the IT-BPO industry contributed $11 billion in revenue and employed about 640,000 Filipinos.


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India's Nasscom Predicts Slow Activity in Software Exports

by @ News Feed

Economic crises affecting IT outsourcing sector to slow down activity in software exports

The National Association of Software and Services Companies (Nasscom), the trade association of the IT-BPO industry in India, will possibly predict slow activity in software exports due to incessant economic problems affecting the information technology (IT) outsourcing sector.

According to a Nasscom official, there’s a possibility that the growth rate prediction for this year will not be surpassed, though a double-digit growth for 2012’s fiscal year would still be attainable.
For this year, Nasscom members such as Infosys, Tata Consultancy Services, and Wipro are believed to be having a hard time in explaining the situation and are still in the process of negotiating, when in fact the organization’s officials are usually ready with a forecast by this time of the year. 

Another Nasscom official added that they are still waiting for the revenue forecasts from companies, saying it does not look clear, and goal revisions may be in order this year.
There may be a slowdown, but the industry can reach the target for 2011-12. It is expected to post a 16-18 percent growth rate or $70 billion. On the other hand, IT research and advisory firm Gartner has reduced its IT spending predictions from 4.6 percent to 3.7 percent.

Meanwhile, Infosys Chief Financial Officer V Blakrishnan assumed that clients are now more cautious when it comes to IT spending. This has led to an indefinite forecast for the sector.


Asia-Pacific Region Expected to Turn into Biggest MES Market

by @ News Feed

The market-expansion services (MES) sector of the Asia-Pacific region can surpass Europe's and be the largest in the world by 2015. This is based on a report from DKSH and Roland Berger Strategy Consultants. From 2010 to 2015, the MES market in the Asia-Pacific region is predicted to grow 11.3 percent annually and will be valued at around US$853 billion. On the other hand, Europe's total MES market is expected to grow 4.3 percent annually, valued at US$759 billion by 2015.

As renowned companies focus more on core competency, productivity, and building their global brand image, and recession is still taking its toll in Europe and the United States, doors have opened for Asia to become a market-expansion services (MES) location. In fact, small and medium-sized firms are looking for partners that can provide leads and access to the global market.

Over 100 executives in Asia, the US, and Europe participated in DKSH and Roland Berger's study, where the rapid emergence of the middle classes was identified as the  key driver of Asia-Pacific MES growth. The middle class is comprised of families who are able to make ends meet and earn between US$10 and US$100 per person, daily. Charles Toomey, executive vice president and global business unit head for healthcare, DKSH Hong Kong said, the increasing number of middle-class consumers and the inclination of business owners to outsource certain processes will drive the growth of Asia's market-expansion services sector.


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. 


DOLE, BPO to Create Voluntary Code of Best Practices

by @ News Feed

A voluntary code of industry best practices will be crafted to address the concerns faced by the outsourcing industry and create more efficient policies concerning the welfare of both employers and workers. This was agreed upon by the Department of Labor and Employment (DOLE) and its tripartite partners in the business process outsourcing (BPO) industry during the consultative meeting organized by DOLE-National Capital Region.

Regional Director Raymundo Agravante said the best practices code could address industry-related issues including difficulties of availing transportation services and potential danger of working at night, workers getting deprived of socialization opportunities, impact of working on graveyard shifts to the health of call center agents, and exposure to insulting remarks in business encounters.

The creation of the BPO industry tripartite council (BPO-ITC) and the effects of the House Bill No. 2592, An Act Ensuring the Welfare and Protection of Business Process Outsourcing Workers and the Recognition of their Rights were also discussed during the consultative meeting.


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Survey: Companies Innovate through Outsourcing

by @ News Feed

According to a survey conducted by consulting and benchmarking agency Aecus, eight out of 10 buyers believed that outsourcing helps them innovate and generate new ideas.

Incentives with outsourcing operations

Out of 100 UK outsourcing buyers who participated in the survey, two thirds responded that they offer incentives together with their outsourcing operations to encourage and reward successful innovation. In addition to that, 58 percent believed that they are already equipped with innovative skills and the environment to pave the way for new ideas. Almost half said they are meeting with their provider regularly to talk about innovation.

Paul Morrison, head of outsourcing innovation at Aecus, said within their organization, innovation is defined as the process of creating value by doing things differently - even more so today when budgets are tighter and technologies are constantly developing. What’s important for them is to keep buyers happy through the innovative ideas they get from outsourcing.

The executive pointed out that outsourcing has become crucial to the business outcomes since it provides positivity not only to the buyer-supplier partnership, but the operations as a whole. One of the key perspectives that buyers are looking for these days is digitization - 80 percent responded that they want it in their operations, but only 35 percent have achieved it.

Over 50 percent of the survey participants said they already implemented a multi-channel engagement, while a third are still planning to do it in the next 12 months. As for robotic automation, two-fifths stated that they are planning to do it in the future.


Microsoft to Tap Manufacturing, Export, BPO Markets in Cebu

by @ News Feed

For Information Technology solutions company Microsoft, focusing on Cebu’s manufacturing, export, and outsourcing industries will drive the growth of the company this year.

According to John Bessey, Microsoft Philippines, Inc. managing director, the company can provide the technology tools that people need. “We are also seeing a trend in the demand for cloud computing and products that can make collaboration easier. We are proud to say that we have just about all the products needed for personal computing, mobile computing, and browsing,” Bessey said.

Aside from providing what Mike Tuohy, general manager for the Asia Pacific Region, said as new wave products such as Office 2010, Vision 2010, and Sharepoint 2010, Microsoft also plans to facilitate more information campaigns to educate people about the importance of buying and using licensed and legitimate software.  

Cebu as a major outsourcing hub

Cebu City recently launched the IP Seal campaign to increase awareness on intellectual property rights (IPR) protection, further improve the IT sector, and boost the position of Cebu as a major outsourcing hub.





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.


Ovum: Asian Governments will Invest in the Cloud this Year

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

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

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


SEO Outsourcing: What I've Learned in The Past 6+ Years

SEO Outsourcing: What I've Learned in The Past 6+ Years

Exploring what I have learnt in the past 6 years of outsourcing SEO. Should you outsource your link building?

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.


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.


Social Media: Paid vs. Organic

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PBN Mistakes: 5 Mistakes That Will Get Your PBN De-Indexed

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Everest: Captives still Expanding and Evolving

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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.


PH ICT Spending to Grow this Year

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International Data Corporation’s (IDC’s) Annual Continuum Survey revealed that companies are willing to spend 10.1 percent more on information technology - fuelled by the “3rd Platform” or the IT segment composed of mobile technology, social business, and the cloud.

According to IDC Philippines Country Head Jubert Daniel Alberto, bigger budgets illustrate a positive outlook for the country’s ICT industry as companies look for new and exciting ways to engage with customers and broaden their reach.

He added that these elements enable businesses to expand their capabilities particularly in the 3rd Platform such as cloud, mobility, social business, as well as Big Data and analytics. Moreover, these segments are expected to mold business models and consumption patterns.

The research firm pointed out that factors that can slow down the growth of the ICT industry such as port congestion and natural disasters are temporary. Mr. Alberto also stated that the positive outlook of the country, increasing demand for ICT, small and medium-sized enterprise (SME) sectors, as well as the anticipation for the expansion and integration of 3rd Platform technologies will reinforce the growth of the Philippine ICT industry this year.
He also said political reforms have helped transform IT spending habits, enabling buyers to focus on mobility, devices, services, and applications across the country. Other factors such as the growing business process outsourcing (BPO) sector and growing demand for ICT from SMEs will sustain growth in ICT spending in 2015.


Barack Obama Urges US firms to Insource

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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 BPO Posts Highest Number of Job Vacancies this Year

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According to figures posted by Phil-JobNet, the official online job portal of the government, the business process outsourcing (BPO) sector tops the list of job openings for private sector companies. This was validated by records collated by the Bureau of Local Employment (BLE) where job vacancies reached 39,281 as of September 2011. Baldoz said this affirms the Philippines’ standing as a global BPO location of choice.
The report also included that while there’s a large number of job opportunities in the industry, the job profiles of applicants do not match the needs of BPO companies. Only 1,030 candidates applied for BPO positions from January to September this year. 
BLE Director Ma. Criselda Sy said call center agents remain at the top of the list in terms of job vacancies, from 2010 up to September in 2011. 

BPO Sector of the Philippines Creates Highest Number of Jobs

A  P1.1-billion stimulus fund was provided by the government to aid the Technical Education and Skills Development Authority (TESDA) in providing training programs - P500 million of which was allotted for the BPO sector’s “near-hires”. TESDA is also planning to reach out to other cities to assist those who wish to enter the BPO workforce.
Phil-JobNet also showed that other in-demand positions were workers, carpenters, and drivers. Customer service assistants had the second highest number of vacancies at 16,589. 

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.


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

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PH BPOs Unfazed by Anti-outsourcing Plans

With at least half of the call centers in the Philippines serving US-based firms, the Business Processing Association of the Philippines (BPAP) appears to be reassured amid President Barack Obama’s mass petitioning for businesses to bring jobs back to the US. The outsourcing body also believes that the Philippines’ flourishing BPOs will see no adverse effects as the anti-outsourcing bill is being processed.

Martin Crisostomo, BPAP’s Spokesperson, stated that business process outsourcing is no longer a mere tool or a solution for businesses to stay afloat, but is now considered as a major factor to stay competitive. Furthermore, he strongly believes that outsourcing is here to stay and is now part of globalization.

In his State of the Union address, Pres. Obama said companies that are providing jobs to US citizens should be rewarded and prioritized, and not those businesses that transfer processes to offshore locations. Benefits such as tax deduction shouldn’t be given to firms that outsource work overseas, but should be given to companies that bring jobs back home.


India Gets Lion's Share of IT-BPO Industry

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In a survey done by Tholons Research, a consultancy agency in Bangalore, India has once again toppled other countries as the global leader of the IT-BPO industry, with revenues reaching $59 billion and covering 51% of the global offshore market.  

According to the report, both India and the Philippines have established a solid position in the global outsourcing industry. This can be attributed to their talent pool and revenue share over the years. India's IT-BPO sector has 1.98 million direct employees and 7.5 million indirect employees. On the other hand, the Philippines has recently become the leader of voice-based offshore processes.

Meanwhile, the National Association of Software and Services Companies (Nasscom) stated that for 2011, IT activities reached $574 billion and BPO spending amounted to $158 billion worldwide. However, large global companies are seen to have outsourced only 15% ($110 billion) of the total $732 billion to locations such as the Philippines, India, China and Malaysia. This means there is still more room for growth of the industry.

South East Asia, Latin America, and Africa are expected to cash in on the offshore outsourcing industry by addressing the growing demand of the market.


TPI: Outsourcing Spending Increases, Contract Values Decrease

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Outsourcing Spending Rises but Value Decreases

Outsourcing consultancy firm TPI said compared to 2010, businesses spent more on outsourcing in the second quarter this year. However, the average value of IT outsourcing contracts decreased for the same period.
Based on the TPI Index, while the total value of deals posted a 13 percent increase or €7.6 billion, the value of the global outsourcing industry decreased by 18 percent as the number of mega deals declined. In other words, there is an increase in IT and BPO spending, but the contracts have lower value. 
“We have actually seen the pace of UK public sector activity increase in 2011, but contract values have declined,” said Duncan Aitchison, a partner at TPI. Increase in demand for outsourcing is seen in the UK, particularly in the Netherlands and France. 

Global ITO Spending Maintains Growth

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Nelson Hall, a technology consulting firm based in the UK, recently conducted a study which found that private organizations have resumed investing in information technology services. This somehow prevented the outsourcing market to shrink further. Investment in professional services, which grew by three percent, is identified as the key driver for the overall IT spending activity in 2014's third quarter.

The research firm also pointed out that Q3 2014 is a milestone for the information technology outsourcing (ITO) segment mainly because this is the first time since Q4 2012 that spending is below the average level. In addition to that, corporate clients have gone back to their regular spending habits, and are seen closing higher ITO deals. The report also indicated that the number of long-term ITO contracts is increasing.

This is good news for IT outsourcing providers since ITO funding has been decreasing in the past two years. During the first to third quarter of this year, ITO deals declined by 20 percent mainly because of the 30-percent drop in bookings in North America. For the same period, the commercial sector in the region is up by 90 percent - though it's on the low total contract value (TCV) levels. A decline of 70 percent was seen for the public sector, also during the same period.

As for the outlook, Nelson Hall predicted that by the end of 2014, global IT services spending will increase by an average of two percent. For 2015, the report projected that ITO spending will be flat mainly because of the low level ITO activity during 2013 and 2014.


Positive Outlook for PH Economy

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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.


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.


Outsourcing Misconstrued by the British Public

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There seems to be a discrepancy between the survey commissioned by the National Outsourcing Association (NOA) entitled 'Public Perception of Outsourcing' and the study done by the Business Services Association (BSA). According to the survey by NOA, outsourcing is perceived by the public as a detrimental component to the British economy, while the latter showed that it contributed eight percent to UK's GDP, �14 billion in business taxes, and �21 billion outsourcers' income tax.

NOA believes that the respondents have negative perceptions of outsourcing due to lack of information about the process. More than half (53 percent) believe that outsourcing is responsible for job losses, 65 percent associate it with cost reduction, and 45 percent link it to India. Moreover, only 19 percent believe that outsourcing is a solution for the UK's current economic state.

NOA also stated that the public often confuse outsourcing with offshore captive projects. With offshore captives, there's typically no outsourcing involved and the operation is fully owned by the main company. In fact, only 27 percent of the respondents know the difference.

Even if the British public are vocal of their feelings towards the strategy, NOA Chairman Martyn Hart said the association can help the public understand that outsourcing will help businesses and the nation grow.


PH Foreign Investments could Reach $75B this Year

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

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

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

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

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

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


Procurement Outsourcing Posts 10% Growth

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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.


IT Outsourcing in Europe �not working�

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IT Outsourcing Services from India Ineffective in Europe

A recent survey conducted by Forrester Research indicates that outsourcers in Continental Europe feel the outsourcing model utilized by Indian IT service providers is “not working”. The survey was conducted during the last quarter and the first month of this quarter. A large portion of the firms surveyed indicated that they sourced hardware, software and people from different locations. 60% of the firms, however, said they still outsource to companies in India. Principal Analyst of Forrester Research, Sudin Apte, commented on their findings:

“Although Europe offers a lucrative opportunity, the success rate for Indian companies has been low and ramp-up of operations has been slow.”
The majority of the outsourcing firms surveyed said they did not expect IT budgets to be any cheaper in the UK, France and Germany – with “even fewer” considering India as an offshoring option.

The study by Forrester research cites a “highly federated decision making process”, complex procurement processes, and language barriers as the major challenges outsourcing service providers face in Europe.

“Most companies in Europe are more pan-European than global,” said Apte. “Many Indian IT companies confuse cultural compatibility with local presence.”  




Indian BPOs to Benefit from US Healthcare Reform

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Opportunities for BPOs from Healthcare Reforms

As the US House of Representatives passed the healthcare bill that will bring about 32 million Americans under insurance cover once it becomes a law, it is expected that work such as insurance and claim processing tasks will be transferred to Indian BPO service providers. Insurance companies will be looking for outsourcing service providers that will take on back-office tasks including member database management, claims and new member enrollment processing, and support services.

‘‘All existing IT systems including the electronic medical records, patient information systems and other technology platforms are going to stay untouched, barring some minor to medium tweaking, which will mean some additional work for existing providers like IBM, Accenture and EDS (HP). It's possible that minor portions of these might get shifted to India as well, but the sizable opportunity is for BPOs,” said Dr. Saji Salam, healthcare expert in Minneapolis.



Business Model Movement of Indian IT Firms

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

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

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


BPAP Launches Career Program for Underprivileged Youth

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Career Program in BPO Launched by BPAP

The Business Processing Association of the Philippines (BPAP) recently launched the Careers for Street Kids Program, a means to help the “poorest of the poor” yet talented high school graduates and college-level students land better jobs, specifically in the call center industry.

Twenty-five underprivileged but eligible kids were initially chosen by BPAP and its partners, Children’s Hour Philippines, Streetkids International, and Virlanie Foundation. The candidates will go through a six-month long training program. The organizations are now looking at adding 100 more kids for the next couple of years.  

The program is divided into two segments. One is for college-level students who can be call center agents. The other one is for high school graduates who can get blue collar jobs like janitors, messengers, etc.

Meanwhile, the Executive Director of Children’s Hour and one the authors of the program, Evangeline T. Mayuga, said they are hoping to prepare kids for a better future and get them out of the streets. She added that major business process outsourcing (BPO) companies contributed funds worth 1.2 million pesos, specifically for the first three years of the project. In return, these companies can hire the beneficiaries of the program.

Mayuga also noted that successfully hired candidates will be assigned to help continue the project by contributing funds after the first three years of employment. The graduates will also be observed and mentored to make sure that their careers will continue to prosper.


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.


PH Infrastructure Spending Predicted to Grow

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

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

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

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



PH Seen to become Top Healthcare Outsourcing Destination

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With its large talent pool of healthcare professionals, the Philippines is expected to generate revenues close to $2.4 billion in 2016 - putting it at the top of the global healthcare outsourcing sector.

According to David McKeering, public sector and healthcare leader at PwC South East Asia Consulting, the Philippines has the potential to become a leader in healthcare outsourcing services in the coming years.

In one of the events of the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), McKeering said with the country's sizeable workforce, qualified nurses, and rapidly developing economy, it can take advantage of the opportunities that the global healthcare sector presents.

Josefina Lauchangco, President of HIMOAP, further noted that they aim to have 120,000 full-time employees and hit $2.4 billion in revenues from the healthcare information management services sector by 2016. The global healthcare information technology industry is anticipated to reach $162 billion in 2015 at a growth rate of 10 percent.

According to Lauchangco, one of the Philippines' strongest characteristics is the large talent pool. Other countries do not have workforce resources that come close to the country's 250,000 nursing graduates. This will help improve the country's image to investors as a premier outsourcing hub for healthcare management services.

During the last few weeks of 2013, the industry posted revenues of $988 million and employed 66,000 full-time employees.

However, Lauchangco pointed out that training programs for future workers should be rolled out so the Philippines can claim the top global spot in the segment.


BPO firms open in Taguig, add 3,000 jobs

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American firms, CSS Crop. And UST Global have unveiled their new Business Process Outsourcing (BPO) centers in Fort Bonifacio, Taguig City. The pair are looking to hire over 3,000 workers this year, Manila Standard Today reported.

�We are looking at hiring around 1,000 people in the next 12 months,� said UST Global chief executive, Sajan Pillai in a briefing.

CSS and UST each have capacities of 1,000 workers and 400 seats. Pillai says UST Global expects its current workforce to increase to between 3,000 and 5,000 in the next three years, with revenues reaching an annual $150 million. CSS on the other hand, is looking to go from 400 to 2,000 employees this year.

�On the BPO part of our business, we see that our Philippine delivery center will contribute 20 percent to 25 percent in our revenues in the next few years,� stated CSS chief executive, Nick Sharma.

Sharma added that CSS could possibly expand to provinces for a second outsourcing facility in the Philippines. Its center in Taguig is the second-largest of its outsourcing facilities next to its center in Chennai, India.


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Gartner: Indian BPO Industry Likely to See Consolidation Wave

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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.


McKinley Hill Cyberpark employs 8,000

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McKinley Hill Cyberpark

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

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

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


Outsourcing SEO Program to Agency vs Building In-House Team

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CICT, BPAP return from successful overseas mission

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Outsourcing Trade Missions

The Commission on Information and Communications Technology (CICT), along with the Business Processing Association of the Philippines (BPAP), concluded a week of outsourcing trade missions in the US and Canada. The mission was conducted to further supplement the growth of the Philippine BPO sector amid the economic crisis. According to the BPAP, mergers, disruptions, corporate restructuring, cost containment needs, and business changes needs of overseas companies are the causes for the majority of outsourcing investments in the Philippines.

The Philippines was represented during the trip as a major sponsor at the “World BPO forum 2009” in New Jersey with Globe Telecom, Animation Council of the Philippines (ACPI), Philippine Long Distance Telephone Company (PLDT), and Sencor and Multi-Rational Corporation in attendance. The missions further included trips to New York – with over a hundred companies signifying interest – and Toronto, which attracted over 80 attendees.

Pointwest Technologies and the National ICT Confederation of the Philippines (NICP), SPI-Bpo, Peregrine, DPC DATA, DTSI , Cybercity Teleservices and Affinity Express were among other members included in the Canada-US mission.


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PH IT-BPM Sector Reaches Out to Typhoon-hit Areas

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Jose Mari Mercado, President and CEO of the Information Technology and Business Process Association of the Philippines (IBPAP), recently lauded the efforts of member organizations for their support and contribution to regions struck by Typhoon Yolanda. He noted that the unity that spurred within the organizations during and after the traumatic calamity proves that the business process outsourcing (BPO) sector of the Philippines not only focuses on their growth and business success, but the welfare of the Filipino community as well.

Donations from the BPO sector reach P34M in cash and in kind

As of November 15, donations from various outsourcing companies such as Wells Fargo, Genpact, Mondelez International Foundation, Arvato Corporation, e4e Global Services, TeleDevelopment, and Sales Rain have reached ?34 million cash and in-kind.

Majority of IT-BPM firms, specifically the ones spared from the typhoon, demonstrated business continuity. Sadly, one of the contact centers in Leyte which was severely affected by the tropical storm was found to have incurred damages. Shortly after the storm, executives reportedly flew in quickly to help the employees who came in to work. All of the employees were safe and the executives had ensured the employees’ safety and welfare through relief efforts.

IBPAP continues its efforts in Business Continuity Plans for member organizations in case business interruptions happen.



Outsourcing Used by Two-thirds of Marketers

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Online Marketers Leverage Outsourcing

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

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

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

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


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.


IT Leaders Prefer Long-term Deals

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UK-based IT analyst firm Ovum recently revealed through its "2013 Trends to Watch: Bundled Outsourcing" report that IT buyers prefer longer-term, single supplier IT outsourcing deals. This can be attributed to the fact that multi-sourcing contracts didn’t live up to its premise and IT outsourcing clients are looking for more stability and control.

Longer-term, single-supplier IT outsourcing deals preferred by buyers

According to Jens Butler, principal analyst for IT services at Ovum, buyers nowadays are already experienced and know well enough when a plan will not work when it comes to outsourcing, as they are on their third and second generation of doing so. He added that most of the clients saw that multi-sourcing will ignite loss of control.

Moreover, he said clients are looking beyond cost savings, and want to improve customer satisfaction and value for the company.

Ovum also monitors packaged outsourcing activities periodically. They found that international contracts from manufacturing, financial services, and the government sector go beyond four years. Furthermore, the change from multi-sourcing to long-term contracts was widely observed in the insurance sector.


PH Property Sector to Remain Strong in 2014

by @ News Feed

Philippine Property Sector reinforced by BPOs

According to Rick Santos, founder and chairman of property consultancy firm CBRE Philippines, growth in the Philippine real estate segment will not slow down in the coming year.  

During his recent interview with BusinessMirror, he said the Philippines showed that it was a key player among the countries in Southeast Asia with its multiple credit rating upgrades and office space take-up activity in the region.

CBRE shared that for Q3 of 2013, 97.3 percent of Metro Manila’s offices were already occupied. The thriving business process outsourcing (BPO) sector was cited as the key driver for the demand in offices in Bonifacio Global City, Quezon City, and Alabang.

Meanwhile, office space demand for traditional business operations is going strong in the Makati Commercial Business District but is outpaced by Taguig in terms of upcoming office space share up until 2016. Taguig is projected to have 37 percent, while Makati would have 24 percent.

However, low demand is seen for the luxury residential properties. Nevertheless, by 2019, Quezon City is anticipated to post the highest turnover of residential condominium units: 45,135 units or 22 percent of the entire local market share.   

In terms of price range, midmarket and affordable condominium properties account for 82.16 percent of the market.


Favorable Global BPO Opportunities from the Financial Services Sector

by @ News Feed

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.


PH Healthcare Sector Needs IT Professionals, Services

by @ News Feed

IT professionals and services are widely needed in the healthcare sector of the Philippines, but the lack of homegrown talent and facilities poses a challenge to the supposedly P5.2 billion requirement.

According to Samuel Matunog, chief of the ICT (Information and Communication Technology) Davao Industry Development, the healthcare sector, which covers government healthcare units and private hospitals, has various IT needs that are expected to improve operations. However, he said even if these organizations are willing to spend, only a handful of IT deals are processed due to the limited supply of IT companies - even IT individuals - in the country. He added that the business process outsourcing (BPO) sector is also reportedly needing the same number of IT graduates.

Matunog, who is also the head of the Software Industry Association of Davao City and leads the efforts in implementing software for storing patient data on mobile devices in the biggest hospital in Mindanao, has been working on gathering data to come up with the estimate for several years. He noted that majority of the IT processes and software needed in the healthcare industry are involved in back-office operations like finance and accounting, legal and communication, and bookkeeping.

ICT-Davao is working on promoting scholarship programs so that more enrollees will be encouraged to opt for IT courses. Some of the in-demand courses are computer engineering, computer technology, and software development.


RP Outsourcing Still Strong Despite Global Crisis

by @ News Feed

Philippine Economy Stands Strong

Industry players who attended the recently concluded State of the BPO Industry Mid-Year Report Conference agreed that the outsourcing industry in the Philippines continues to see growth despite the current global economic downturn. The said conference was held in Makati City and was organized by the Business Processing Association of the Philippines (BPAP).

While the impact of the financial crisis may have slightly affected the growth of the outsourcing industry, the Philippines has secured its place in the world of outsourcing as an ideal BPO destination.

According to Neil Elias, country manager of Logica, an outsourcing firm, the fourth quarter of last year was the best quarter for Philippine outsourcing. There was also an increase in the recruitment rate for skilled Filipino workers - from 4-5% to 9-10%.


Study Reveals Outsourcing Impact on Consumers, Competition

by @ News Feed

Companies can reduce costs through outsourcing, but a new research reveals that the process hurts consumers and tends to soften the competition among rivals in the industry.

In a research co-written by Yunchuan "Frank" Liu, a business administration professor in the University of Illinois, it is said that outsourcing leads to loss of jobs and higher prices. "If a firm outsources production to a low-cost country, there's a cost-saving effect, but there's also a weakening among on the competition," Liu said. "If the competition is softened and the production costs become lower, businesses don't have an incentive to pass those savings along to consumers." He added that in some cases, consumers pay higher prices.

Before outsourcing, the competition was more intense and businesses were more consumer-centric. According to Liu, when firms start outsourcing business functions to low-cost countries, the competition softens as more companies enter the scene.

Liu co-wrote the research with economist Rajeev Tyagi at the University of California. The study will be published in the journal called Management Science.


Gartner Predicts Global IT Spending to Reach $3.7 Trillion this Year

by @ News Feed

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.


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.


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.


Study Predicts More Outsourcing Activity in 2013

by @ News Feed

A total of 1,355 enterprise buyers, service providers, and consultants recently participated in a survey done by HfS Research and KPMG, comparing business process outsourcing with manufacturing outsourcing trends. The results showed that stakeholders have no plans of decreasing their outsourcing activity, as they are still looking to cut costs and become more updated in terms of the latest business processes.

According to HfS Analyst Phil Ferscht, outsourcing, a process which is commonly frowned upon by many, experienced slowdown in 2012. On the other hand, survey results indicate that most of the firms are motivated to reinforce their outsourcing portfolio using improved methods.

More outsourcing activity as stakeholders look to cut costs and streamline processes

Ferscht noted that out of 399 major buy-side survey participants, less than 20 percent are planning to minimize their outsourcing scope for IT or business functions. He also added that 50 percent are planning to outsource application services, four out of 10 will outsource their finance and accounting, while one-third are considering to outsource their HR functions.

It was also found out that 87 percent want to cut operating costs, 74 percent want to streamline processes, while 81 percent seek growth. Ferscht also added that payroll is another segment that enterprises are looking to outsource using the services of the best providers in the business.


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.



BPO Sector to Continue Driving PHL Economic Growth

by @ News Feed

Business process outsourcing (BPO), along with agriculture and manufacturing sectors, will continue to drive the country's economic growth, according to global research and consultancy firm Oxford Business Group (OBG).

In its latest publication, "The Report: The Philippines 2017", the three sectors are greatly supported by the government's planned reforms.

Positive growth outlook for the Philippine BPO sector

According to the report, the growth outlook for the BPO sector "remains positive after years of extremely rapid expansion, with the country moving to replace India as the world’s top BPO destination in just a few short years."

In addition, the Bangko Sentral ng Pilipinas has projected that the "industry revenues will overtake remittances from OFWs by 2017" should the BPO industry’s current growth rates continue.

A 2016 report cited a forecast that the sector is said to generate as much as $39 billion in revenue over the next six years.

This is in line with President Rodrigo R. Duterte's 10-point socioeconomic agenda that seeks to continue and maintain the macroeconomic policies of the previous administration, in addition to putting a new comprehensive tax reform program in place.

The agriculture and manufacturing sectors will also largely benefit from the 10-point plan that includes the prioritization of land reforms that will enable unused farm land to be developed into new industrial developments.

PH Ready to Face External Shocks, Says Standard Chartered

by @ News Feed

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

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

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

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

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


3 SEO Problems You’re Probably Not Monitoring

by Jennifer Johnson @ Alexa Blog

There are three lesser-known SEO problems that can hinder the success of your site: negative SEO, Google penalties, and keyword cannibalization. An Alexa survey of 17 SEO specialists reveals the impact these issues can have on a site’s search rankings and how to overcome them. Before looking into the SEO problems, it is crucial you [...]

The post 3 SEO Problems You’re Probably Not Monitoring appeared first on Alexa Blog.

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.


SEO Outsourcing Services: Pros and Cons of Outsourced SEO

SEO Outsourcing Services: Pros and Cons of Outsourced SEO

SEO outsourcing can save you a lot of trouble. But how to find outsourced SEO service that actually works? Find out and be prepared!

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

by @ News Feed

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

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

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


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.


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.


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.


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.


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.


Outsourcing Trends for 2014

by @ News Feed

Global Outsourcing Trends from 2013-2017

International Data Corporation (IDC) recently released its ‘Worldwide and US Business Process Outsourcing (BPO) Services 2013-2017 Forecast’, a report which indicates that in 2017, the global BPO industry will grow 5.7 percent with a total value of $209.4bn. Moreover, the US market will post a growth rate of 4.3 percent and will be valued at $97.3bn.

Datamark Inc. released similar findings in its ‘Ten Business Process Outsourcing Trends for 2014’, where it was stated that the BPO market in the US is likely to increase further due to the rising costs of offshoring to emerging markets.

The report also identified that the rising demand for American-accented English and Latin American Spanish contact-center services providers, desire to work with a geographically-nearer outsourcing partner (so time zones would be similar), and the rising cost of labor in China and India are also affecting the decision of business executives to move processes back onshore the US; or providers situated in nearshore regions.

Datamark also highlighted in their report the findings of business advisory firm AlixPartners and electronics trade association IPC regarding the onshoring movement.

AlixPartners found in their study that the cost of manufacturing in the US is now more similar to Mexico’s and the segment is working to attain cost parity with China by 2015. IPC, on the other hand, reported that 14 percent of electronics companies that took their survey said they are considering moving operations back home, or set up new ones in North America next year.


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.

PH Orgs Set to Promote the Country in the US

by @ News Feed

Promoting the Philippines for Healthcare IT Outsourcing

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

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

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

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

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


Industries that Give the Highest Bonuses in the Philippines

by @ News Feed

In the Philippines, companies are required to provide 13th month pay to employees, but are not mandated to give out Christmas bonuses. However, companies in certain industries allot funds for bonuses, but the amount differs depending on the organization.

Call center industry included in Bonus Report

Data from the 2014 Bonus Report done by Philippines indicate that the banking and finance industry gives the biggest regular bonuses. The next generous industry when it comes to bonuses is the business process outsourcing and call center industry, followed by manufacturing, food and beverage, and real estate.
The report revealed that these industries give up to 17th month in bonuses on top of the mandatory 13th month pay. These bonuses are given throughout the year.

Eileen Camrill-Go, Marketing Communications Manager of said if job seekers want to earn big, they should go for these industries.

For some employees, working in these industries is not always about the money. They stay or they choose to work in the company because of the management and stability.
The Employers Confederation of the Philippines said giving out salaries and bonuses should not just be scheduled during Christmas. Also, employers should prioritize the health, well-being, and future of the employees.


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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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."


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 - 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.


PH still Far from Matching India's BPO Industry

by @ News Feed

Philippines' Call Center Market Share higher than India's

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

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

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

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


Study Shows PH's Tier-3 Cities Keep it Competitive

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Tier-3 Cities in the Philippines Attracts BPO investors

According to a report “2016 A.T. Kearney Global Services Location Index (GSLI)” done by consulting firm A.T. Kearney, the labor supply in the Philippines’ tier-3 cities keeps it at the seventh spot as the most attractive country in the world for outsourced services.

The report read that the Philippines and India are still the go-to countries for offshoring, but business process outsourcing companies are now considering companies outside of the major cities to tier 3 locations. For instance, in the Philippines, they are now looking at Bacolod and Iloilo City for new talent.

The Philippines also has the leverage of its talent’s soft skills that cannot be replaced by machines. This can then be combined with the traditional business process outsourcing (BPO) skills.

Fifty-five countries were surveyed in the report and the Philippines maintained its 7th place with a total score of 5.88 out of 10. The study had three major categories, with Manila posting a score of 3.17 on financial attractiveness, 1.43 on people skills and availability, and 1.29 on business environment.

The first six are India (6.96), China (6.49), Malaysia (6.05), Brazil (6), Indonesia (5.99), and Thailand (5.92).

The report also stated that in the global outsourcing space, the Philippines is second to India, which is known for contact center operations and moved to complex processes in BPO and information technology.

It was also noted in the report that the Philippines has improved infrastructure, environment, and tax regulatory costs since 2014.


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Research Shows �Big 4' Dominating F&A BPO Market

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Research firm Horses for Sources (HfS) says their market analysis of the global finance & accounting BPO market sees three large outsourcing service providers cornering more than fifty percent of the market.

The report, soon to be released by HfS, indicates that BPO newcomers are �clearly struggling to take any significant share away from the �Big 4' incumbent providers; Accenture, IBM,Genpact and Capgemini.�

HfS says the Big 4 has managed to close multimillion dollar deals during the past years, leveraging on existing contracts and renewing them. The firm says Accenture has been the most active in winning large enterprise clients. Most newcomers, HfS reports, close deals that fall under the sub-$5m category.

The HfS data, beginning with 2004 lasting through 2010, shows average contract deals steadily decreasing. The firm advises BPO newcomers to �stay the course,� winning smaller deals and growing them, and at the same time, turning a profit.

HfS advises that common technology platforms, common process workflows, and reliance on the Cloud will definitely help providers with their multi-client shared-service capability, but �flexible, ample, people-delivery resources� are still important in closing a deal.


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

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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.


PH Software Dev't Industry Posts Growth in Revenues, Employment

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Sovtware Development of the Philippines Posts higher Earnings

The Philippines’ software development industry had seen an increase in export revenues and employment last year, based on a report by Tholons, a services and investment advisory firm.
In 2010, the industry posted $725 million in export revenues. More than half (57 percent) were from the US market, while one-fourth of this figure came from the United Kingdom. Other markets that contributed to this growth include Canada, Japan, Europe, Australia, Middle East, and countries in the Asia-Pacific.
When it comes to job opportunities, a total of 44,962 were employed in the industry in 2010, up by 27.60 percent compared to 2008 and 2009 with only 35,300 full-time workers. Top services for foreign clients were application maintenance, software testing, and custom application development. In the local scene, sources of revenue were product engineering and system infrastructure support service.
This Tholons study was done to assess the current situation of the local software industry. It was commissioned by the Philippine Software Industry Association (PSIA), with funding from the Commission on Information and Communications Technology (CICT). According to PSIA President Nora Terrado, despite the financial crisis, the software development industry remains committed to reaching the goal of the Philippines to become the outsourcing location of choice.

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European Firms Expected to Expand PH BPO Operations

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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.


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Indian BPOs See PH as a Threat

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Indian Firms Keep an Eye out for Philippine Outsourcing Providers

Numerous BPO service providers worldwide have been striving hard to be the best in the industry. But India remains as one of the biggest and toughest contenders with an annual growth rate of 16-18 percent. Be that as it may, Indian BPOs still feel threatened by the Philippines when it comes to offshore outsourcing.  

Genpact’s Vice President Pramod Bhasin said in a statement, “I think it’s a serious issue for India. It’s about calibre and quality of people coming out of colleges. Earlier, Philippines was mainly into non-voice, but now it has expanded into finance and accounting. We have to review our education and skills training.” He added that BPO firms outside the Philippines welcome the competition.  

Indian firms were warned by Spa­nco BPO and Hinduja Global Solutions about the Philippines as a competitor. Global CEO of Hinduja Global Solutions, Partha Desarkar, said the Philippines is seen as a big contender. This is the reason they have established operations in Manila.

Meanwhile, Nasscom President Som Mittal said it is about making the most out of the outsourcing opportunities, although India has a lot of issues such as maintaining safety and security and elaborate taxation policies.


BPO, OFW Remittances Strengthen PH Peso

by @ News Feed

The Bank of the Philippine Islands (BPI) recently projected that the country's currency will remain resilient at P42 to US$1, averaging at P42.777 during the first few days of March and has recovered from the lowest valuation at P43.619 last January.

According to BPI's Asset Management Group Head Tere Javier, increasing investments on the emerging markets in the Philippines, remittances from eight million Filipinos who are working abroad, and earnings from the business process outsourcing (BPO) industry are the factors that keep the peso strong. In fact, the projection of P42 to P42.30 per US dollar is reinforced by the BPO sector's continuous growth and five percent increase in OFW remittances.

In the four-point investment theme of BPI for 2012, emerging markets are expected to fuel global growth and remain fund generators. The economy will be able to overcome challenges, though there will still be market volatilities as a result of geopolitical issues.

Javier said remittances for this year will be $21.1 billion. This is five percent higher than figures posted in 2011. On the other hand, earnings from BPO will increase by 19 percent reaching $13 billion. Healthcare, finance and accounting, human resources, animation, and creative services are seen as some of the growth areas in the BPO industry.


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.”


CICT Downgrade to have Negative Impact on PH BPO

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Impact of CICT Downgrade to PH BPO Industry

Following President Benigno Aquino III’s decision to downgrade the Commission on Information and Communications Technology (CICT) and make it an office of the Department of Science and Technology, Senator Edgardo Angara said this could have a negative impact on the growth of the country’s business process outsourcing (BPO) industry.

Angara noted that this move of downgrading CICT to Information and Communications Technology Office “sends the wrong signal” about how we think of ICT, which is an industry that can open opportunities for jobs and investment. This might slow down the growth of companies in the BPO industry. By 2016, it is expected that the industry will employ 1.3 million workers, and revenues could hit the $26 billion mark.

He has filed a bill to establish a Department of Communications Technology. The senator as well as the IT and BPO sectors are all for the creation of a department which will serve as the government body that addresses their needs and issues.


PH IT-BPO Posts 21.8% Growth in 2010

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

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

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

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


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.


Emerging Players Pose Threat to PH Voice BPO

by @ News Feed

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.


Higher Incentives Needed to Attract BPO Locators

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Increasing the Peso incentive was cited by outsourcing organizations in the Philippines as the solution to attract more business process outsourcing (BPO) locators to set up operations in the country. This is due to the fact that costs of doing business in the Philippines are higher compared to other outsourcing locations.

Furthermore, Department of Science and Technology-Information and Communications Technology Office's (DOST-ICTO) Deputy Executive Director Alejandro Melchor III said the country is equipped with talented candidates, but prices of real estate and power remain high. He added that in other outsourcing destinations, costs of electricity are lower and real estate is usually provided free of charge to BPO locators.  

Melchor noted during a conference with Business Processing Association of the Philippines (BPA/P) members that if the low incentive rate at 5% will be further reduced, it will affect the country's position as an ideal outsourcing destination. He added that BPO locators are more inclined to put up operations in Tier 2 and Tier 3 countries.

On the local employment side, it is expected that 400,000 to 800,000 jobs will be added by the BPO sector in the next five years.

The BPA/P Next Wave Cities (NWCs) Report (2010-2011) shows vast opportunities for the sector in New Wave Cities. Davao, Sta. Rosa, Bacolod, Iloilo, Metro Cavite, Lipa, Cagayan de Oro, Malolos, Baguio, and Dumaguete are the top 10 NWC in 2010-2011.


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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.


PH on Target to Becoming a $1T Economy by 2030

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Economic and financial analysis firm IHS Global Insight predicts that the Philippines will become a $1-trillion economy by 2030, and believes that it would be the only self-governing country that has an improving credit record in Asia.    

The improved outlook given by IHS, which is currently at the minimum investment grade of BBB-, could be raised over the near term. IHS reported that it has upgraded its credit rating outlook for the Philippines from stable to positive, with its improving financial fundamentals, investor confidence, and governance standards.

Meanwhile, the Sovereign Risk Review compares and evaluates all self-governing countries by means of rating agencies. It was found that the Philippines was the only sovereign in Asia that received an upgrade from IHS.
The Philippines’ current account surplus is said to be balancing its liquidity, coupled with several crucial factors such as improving debt control and management, and prudent fiscal management in a continuously growing economy.  

Remittances from Filipinos working abroad, revenues from the business process outsourcing (BPO) sector, and earnings from the tourism sector are the major drivers of the country’s current account which has amounted to $4.7 billion during the first six months of the year.


IT Outsourcing Market Projected to Reach $288B this Year

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IT outsourcing spending to increase

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

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

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

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

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


PH BPO to Receive Over P100M Grant from Govt

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PH Outsourcing Segments Receive Government Grants

Data from the Philippine Statistics Authority shows that     the national government allotted more than P100 million in subsidies to help fund the business process outsourcing (BPO) sector’s programs.

Back in 2012, a P119.1-million grant was given to the BPO sector particularly the call center and computer-programming segments - P118.8 million was given to the call center segment, while P329,000 was allotted to the computer-programming segment.

According to the PSA, the grants are a type of financial assistance from the government, which can also be in the form of tax holidays and tax privilege to promote growth in an industry.
Data also found that employees in the software-publishing segment received higher annual compensation per worker compared to call center employees - the voice segment is employing the highest number of workers and contributed the most profit.

In 2012, the BPO programs employed 436,500, according to the PSA. About 83 percent of those jobs were in the call center segment, or 364,454 of the total BPO workforce. As for compensation, the BPO activities provided P154.9 billion in total salaries or P354,932 annually per paid employee.

Call center activities paid 77.9 percent in compensation or P120.7 billion of the total compensation paid by BPO activities.


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.


RP primed for post-crisis

by @ News Feed

The JFC (Joint Foreign Chambers) along with Philippine Government agencies, are in the process of producing a road map that will maximize the growth of key sectors in the Philippines as the global economy shows signs of recovery.

Identifying key sectors primed for post-crisis

Henry Schumacher, executive vice president of the European Chamber of Commerce in the Philippines, stressed the importance of identifying “who is going to do what and when” in areas that the Philippines has a significant advantage over foreign competitors. These areas are agribusiness, creative industries, information technology-business process outsourcing (IT-BPO), tourism and wellness, infrastructure, manufacturing, and logistics, and mining.

The month-long meetings, which began on September 15, will conclude on October 15. In ensuring the key sectors are primed for the post-crisis, Schumacher voiced concerns regarding legislative functions amid the onset of presidential elections; which take place in 8 months.

“We will have a dialogue with government agencies on what can be done administratively. We want to see some cuts in bureaucratic barriers and come up with administrative innovations,” Schumacher said.


BPAP: Solid Government Support Needed to Reach US$25B

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Efforts to Improve Skill - Job Matches in PH BPO

The Business Processing Association of the Philippines (BPAP) is currently working on reinforcing partnerships with the local government and the education sector for further developments in the IT-BPO industry and to properly allocate skills to job openings.  

According to BPAP Industry Affairs Executive Director Raymond Lacdao, talent management, certification, and outreach initiatives are being prioritized in the IT-BPO sector. The US$25 billion revenue target will be a threefold increase over the course of five years.

“Support from the government is a big step towards meeting the industry’s US$25-billion expansion by 2016. He also said that if the industry reaches that goal, about 1.3 million will be employed and its revenues will make up 12.5 percent of the gross domestic product.

The mismatch in the skills needed and available talent remains a challenge. Lacdao said there is a need for a robust pool of workers who have leadership skills, English proficiency, as well as skills in strategic thinking, comprehension, and teamwork.

He also pointed out that in the upcoming Third International Outsourcing Summit (IOS) at the Sofitel Philippine Plaza, Manila, talent will be one of the main topics that will be discussed among top level executives and industry experts.


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.


More Accounting Outsourcing Deals Predicted for 2014

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A study done by finance staffing agency Robert Half Management Resources found that chief financial officers (CFOs) in the US are considering outsourcing general accounting and finance projects to financial consultants in the coming year. Some of the finance segments that will see this trend are financial reporting, forecasts and budgets, mergers and acquisitions, as well as systems and performance upgrades.

Fifty percent of CFOs are planning on outsourcing finance and accounting processes. Forty-eight percent said they are looking at outsourcing non-finance-related processes such as business systems and performance improvement. Overall, forty percent are focusing on governance, compliance projects, and risk management, while forty-two percent are eyeing taxation.

According to Paul McDonald, Senior Executive Director at Robert Half, financial consultants will be able to provide services to companies that are going through mergers and acquisitions, and are looking for a resource planning system.


DOLE Sees PH BPO Industry as Main Job Generator in 2011

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BPO Industry to become Top Job Generator in the Philippines

2011 will be a good year in terms of local job opportunities. According to the Department of Labor and Employment (DOLE), more than a million job openings are expected next year, and the business process outsourcing (BPO) industry will be the main employment generator for Filipinos.

DOLE Secretary Rosalinda Baldoz said the agency is coordinating with other concerned agencies so the country will be able to supply enough manpower for the BPO industry. To prepare those who want to join the BPO workforce, the Technical Education and Skills Development Authority (TESDA) will provide free English language communication training. “We also had an agreement with BPOs to ensure 100 percent absorption or hiring once the skills training is completed,” Baldoz said. The government also called for a national congress with the goal of strengthening the job facilitation services of DOLE.




Debt Watcher Raises Growth Forecast for PH

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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.


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.


BPO Firms Set to Operate Near Residential Areas

by @ News Feed

PH BPO Companies to Relocate Outside of CBDs

JLL (formerly Jones Lang Lasalle) said business process outsourcing companies may soon move out of heavily-saturated business districts like Makati or Fort Bonifacio and into areas that are close to where employees live. Those who will be working in these areas will have more access to public transportation.

According to JLL Associate Director for Markets Philip Añonuevo, office rent in central business districts is the major component in this initiative. He further explained that rents are going up since the leasing contracts of BPO offices in CBDs are short-term (6-12 months) only.

The executive also said the trend has sparked the interest of high net worth individuals and have prompted them to develop their own non-CBD properties to accommodate BPO companies.

Rent in non-CBDs is more competitive than in Ortigas (20 percent), as well as in Makati and Fort Bonifacio (30 percent). 


Another Positive Credit Rating Expected for PH

by @ News Feed

With its strong macroeconomic fundamentals, the Philippines may be getting another positive credit rating very soon, according to Finance Secretary Cesar Purisima. He is optimistic that the country will get its 24th positive rating in the next few weeks.

Aside from fundamentals, the Philippines has a strong external position and macro-environment. The business process outsourcing (BPO) sector and OFW remittances continue to be key revenue generators. Moreover, the country has less exposure to external volatilities such as the slowdown in China and US Federal Reserve rate increase. Purisima added that the country is least vulnerable to these risks.

Another factor that fuelled the finance chief's optimism for a credit upgrade is the decline of the Philippines' foreign debt to gross domestic product (GDP). Moreover, foreign borrowing went down, as 85 percent of financing was done locally. The economy's current position is better now compared to about five years ago, with its wider fiscal space, appetite to do business here, and investor confidence.

International credit rating agencies Fitch Ratings, Moody's, and Standard & Poor's all granted the Philippines credit ratings in 2013. These were then followed by an upgrade of BBB from S&P's and Baa2 from Moody's.


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RP 29 largest BPOs generate $2 billion

by @ News Feed

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

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

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


PH Exports Break $50B Mark

by @ News Feed

Philippine Exports Grew 33.3%

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

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

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

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


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.


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


BPAP to Retain $25B goal, Reintroduced as IBPAP

by @ News Feed

According to Benedict Hernandez, BPAP (Business Processing Association of the Philippines) CEO and outgoing President, the information and business process management, along with other outsourcing segments, will be utilized and reinforced by the organization to achieve the goal.

The organization has been rebranded to Information Technology and Business Process Association of the Philippines (IBPAP). This was done to properly state that the organization covers the entire outsourcing range of services provided by the country. They are hoping that the new name will attract investors in the IT-BPM segment, while expanding the Philippines' brand as a premier IT outsourcing destination for high-valued services such as creative processes and products, customer relations and health care information management, and software product development.  

Meanwhile, a compounded annual growth rate (CAGR) of 20 percent is projected for the IT-BPO sector. The $25 billion by 2016 goal is approximately 10 percent of the $256-billion global IT-BPO market share.

The IT-BPO industry is expected to grow 20 percent from nearly $13.6 billion last year to $16 billion this year, and employ 926,000.


What is SEO Outsourcing - Definition of Search Engine Optimization Outsourcing - Mohnesh Blog

What is SEO Outsourcing - Definition of Search Engine Optimization Outsourcing - Mohnesh Blog

Mohnesh Blog

SEO Outsourcing stands for “Search Engine Optimization or Optimisation Outsourcing“.  SEO Outsourcing can be defined as obtaining On page or Off page search engine optimization (SEO) services from outside vendor which otherwise can be worked by using internal sources. SEO Outsourcing can also be defined as the act of giving an outside supplier the responsibility …

5 Tips Professional SEO Services Use to Write Killer Content

by Stephanie Devers @ Business Marketing Engine

Back in my college days, the group Switchfoot came out with a song called “Adding to the Noise.” Even now, more than a decade later, the song rolls around in my head, especially after an internet-heavy day. We’re surrounded by content — emails, blogs, social media, videos, infographics…at the end of the day, it really ... Read more

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Indian BPOs Strengthening Onshore Presence

by @ News Feed

After dominating the offshore outsourcing market particularly for clients in the US and UK, Indian BPO companies are now pushing for a much better onshore presence for new business opportunities in financial services and healthcare.

Offshore will continue playing a critical part in BPO industry

"The BPO industry earlier was almost everything offshore unlike the IT sector, which always maintained a strong onshore presence. For BPOs, offshore will continue to play a critical part because of the cost and quality advantage," Patni senior vice-president and global head BPO Sanjiv Kapur said. "But from a BPO perspective, it is changing from a 95-97 percent offshore model to a 70-75 percent offshore model, with 25 percent of the work being done onshore."
Unlike offshore outsourcing in which tasks are outsourced to a firm located in another country, onshore outsourcing refers to the process of transferring work to a company in the same country.


Poor Service Remains a Concern with Outsourcing Vendors

by @ News Feed

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).


Local BPO Body Optimistic on 2016 Growth Projections

by @ News Feed

During the ICT Awards last March 13, Gillian Joyce "Gigi" Virata, Senior Executive Director of the IT-Business Process Outsourcing Association of the Philippines (BPAP) said for the 2016 onwards, a 15-percent growth for the information technology-business process management (IT-BPM) of the Philippines is achievable.

The official cited the global study done by KPMG a few years back which was based on a longer term outsourcing trend. The study is in line with the timeframe of the current BPO roadmap, which ends in 2016. It further stated that a 15-percent growth rate is feasible starting 2016.

However, she said they would first need to validate the figures since high-value technical services are now being offered by the local outsourcing industry. She added that these things are crucial, particularly because of factors such as global environment which can affect the growth rate.

The 15-percent annual growth for 2016 onwards may be deemed slower, but this is normal because the base is already high.

Meanwhile, BPAP is working on plotting the 2020 Roadmap for the IT-BPM sector of the Philippines.

The 2016 roadmap is eyeing P25 billion in revenues and 1.3 million jobs.


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.


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.


Google Mobile Search is The Future of SEO?

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For some time now I’ve been talking about Google’s obsession with mobile-friendly content and sites. In fact, if you don’t have a mobile site your SEO will suffer in 2017 and after. According to news provided by Search Engine Land from 2016, the biggest search engine will start with mobile-first indexing. What is mobile-first index?... Continue reading

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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.


Forrester Predicts 9.3% Increase in Global IT Spending

by @ News Feed

Technology research firm Forrester predicted an increase of 9.3 percent in the global IT market this year. This will be driven by increase in spending on software and computer equipment, according to Andrew Bartels, vice-president and principal analyst. He said US IT outsourcing services will reach $91 billion this year and grow to $97 billion in 2011.

It is expected that US IT spending will grow 11 percent this year, while an increase of 10.5 percent is predicted in software spending. �The 2009 tech downturn was shallower and shorter than the 2001-02 US tech depression,� Bartels said. He added that professional services companies, financial services firms, and the government sector will be the biggest IT spenders.

On the other hand, Bartels said IT outsourcing will continue to grow, but growth rate will be slower.


Submitshop Announces Website Relaunch

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Team Submitshop is delighted to announce the launch of its new redesigned website with better and more SEO services. On this big day, Submitshop Founder and CEO says, “We value our customers and have done a makeover of our existing website by providing a user-friendly navigation and advanced e-commerce integration for services we offer. Hope […]

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PH Exports Poised to Grow 10-17%

by @ News Feed

Philippine exports are poised to surge 10-17.2 percent this year, even after the decline in February. Merchandise exports are predicted to increase by 10 percent, according to Zeno Ronald Abenoja, Director of Department of Economic Research of Bangko Sentral ng Pilipinas.

Abenoja said sales of Philippine produce overseas are predicted to increase by 18.6 percent while coconut products will grow by 16.2 percent. Machinery and transport equipment, on the other hand, is expected to increase by 12 percent while a 10-percent growth rate is seen for electronics and furniture and fixtures.

Meanwhile, reports show a 7.6-percent growth in Philippine merchandise exports from $48.30 billion in 2011 to $51.99 billion last year.

Business process outsourcing seen as one of the key growth drivers for services exports

Business process outsourcing (BPO), information technology (IT), and IT-enabled services are seen as key growth drivers for services exports.

Other studies show that the IT-BPO industry of the Philippines will post a 20-percent growth this year, and contribute $16 billion in revenues.


Aussie Firms Prefer PH for Offshore Work

by @ News Feed

The Philippines is the top choice of Australian companies for outsourced work, reveals a study released today.

According to the Australian Contact Centre Outsourcing Market Study 2011, although 81% of all Australian outsourcing was still done domestically, 19% of all outsourced work is now being shifted offshore to the Philippines. The study, released by with the help of Aegis Australia, divided outsourcing into five categories - customer interaction (contact centers), back office processing, IT, finance, and HR.

In all categories, the study showed that the Philippines was on top - 20% of customer interaction, 33% of back office processing, 18% of IT work, and 25% of finance.

�As Australian businesses continue to have a strong focus on reducing operational costs there is continued growth in the outsourcing of business and customer related processes. There will also be an increase in the amount of work that will go off-shore. Service work will continue to be outsourced and off-shored to where it is most economically comparatively advantageous to perform. We call this the Services Shift,� says Dr. Catriona Wallace, director of �Although only 1 in 5 Australian and New Zealand consumers state that they are happy to speak to an off-shored customer service representative, they may soon have to get used to it.�

According to Denice Pitt, Aegis Australia president, �This trend to the Philippines is consistent from what we are seeing in the market. It is becoming prohibitively expensive for companies to keep all operations in-house because it requires agility, scalability, training and technology that could be better employed elsewhere.�

�The ability to provide blended offshore and onshore solutions such as those in the Philippines enables companies to create efficient outsource programs whilst reducing their costs. By leveraging our global resources we are able to offer our clients complex, yet flexible, tailored outsourcing solutions that deliver scope and high value,� the Aegis executive adds.


Major US Firm to Set Up Shop in PH

by @ News Feed

Emerson, a renowned industrial and consumer products manufacturer in the US, is set to invest P2 billion in Manila to expand their business process outsourcing (BPO) operations.

According to George Mulligan, Emerson's Shared Services General Manager in Manila, they are investing nearly P2 billion for facilities and long-term leases for the expansion of their BPO operations. He added that Emerson is planning to make more investments in Manila and continue operating in the country for many years.

He noted that on top of the initial investment, there will be outlays for human resource development, training, and long-term lease contract between Emerson and Cybergate Plaza in Mandaluyong City until 2024.

The company currently has 12,000 employees in the Philippines, with 3,225 candidates in the shared services sector.


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High conversion rate is the primary goal behind every website design strategy. It is the force that drives web designers to create unique web pages and sites. What is conversion rate? Conversion rate is the percentage of users who perform desired actions on a website. For instance, an online user will be a successful conversion […]

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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.


5 Affordable SEO Company Tips to Boost Your Holiday SEO

by Stephanie Devers @ Business Marketing Engine

It seems like yesterday that we were just buying roses and necklaces for Mother’s Day — even though we were more than likely thinking about the ties and cologne we’re picking up for Father’s Day. The Fourth of July is around the corner, as is the first day of summer (unless you live in Ohio, ... Read more

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DBS bank analyzes Philippine peso vs. Indian rupee

by @ News Feed

Southeast Asia's largest bank, DBS, released its Asian Currency Research report on September 24 which involved a cross-analysis of the currencies of leading outsourcing destinations, the Philippines and India. Studies indicated the Philippine peso had appreciated against the Indian rupee during three of the last four years; a trend that is expected to continue in the remaining year.

While India proved more resilient amid the economic recession, it also suffered record trade deficits and growth in the negative on its overall current account. The Philippines, on the other hand, recorded current-account surpluses which, as DBS currency strategist, Philip Wee points out, is the determining factor in the behavior of the peso in comparison to India when attracting business process outsourcing (BPO) investments.

Wee also noted that India will have to increase external loans to compensate in domestic savings shortages:

�Herein lies one important difference between India and the Philippines. When both countries were achieving high growth rates before the global crisis, India's external debt was rising and catching up with its foreign reserves, while foreign reserves were rising and closing its gap with external debt in the Philippines.�

The Philippines was assessed as having a more manageable budget gap of 2.7 percent of GDP in the second quarter of this year (vs. India's 7.3 percent), and a stronger international liquidity position overall.


IT Execs Say Outsourcing Poses Network Security Risk

by @ News Feed

Many IT executives and network administrators felt that outsourcing technology jobs to offshore locations poses risk on network security. This finding is based on a recent survey commissioned by secure file transfer solutions provider VanDyke Software and conducted by Amplitude Research, an independent mail and online survey company.

Outsourcing tech jobs a network security risk

Of the 350 respondents, 69% said that outsourcing tech jobs offshore has a negative impact on network security. Nine percent (9%) said it has a positive impact while 22% felt that outsourcing has no impact.

"The survey results indicate there is sentiment, as well as initial data, that suggests outsourcing tech jobs offshore is a matter that needs greater scrutiny in the area of network security," said Jeff Van Dyke, VanDyke Software's president and founder.


RP BPO Expects 26% Growth Rate this Year

by @ News Feed

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

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

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


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.


ICT-BPO Meet to Tackle Non-US Markets

by @ News Feed

ICT-BPO Conference 2012

The ICT-BPO industry in Cebu does not have to focus solely on the US market when it comes to outsourcing opportunities. Jun Sa-a, chairman of the ICT-BPO Conference 2012, stated in a press conference that here are a lot of opportunities for the ICT-BPO industry, particularly the market prospects in nearby countries such as Australia and Singapore.

The ICT-BPO Conference 2012 is a two-day event that will be held on June 27-28 at Radisson Blu Hotel, Cebu City. Around eight ICT-BPO speakers from different countries such as Malaysia, Vietnam, China, Japan, Australia, Singapore, and Europe will join the summit and give lectures about opportunities in markets apart from the US.

Meanwhile, ICT-BPO Conference 2012 Vice-chairman Anthony Noel said they are considering markets that are nearer to the Philippines to take full advantage of the slight time differences for non-stop operations.  


Davao Included in PH BPOs' Contingency Plans

by @ News Feed

The business process outsourcing (BPO) industry requires continuity in its operations. With the recent events in the Philippines, it was found that Davao is now being considered as a backup site for when a calamity strikes a major BPO hub.

According to Erriberto P. Barriga, Jr., Executive Vice-president of the Information and Communications Technology Association in Davao, the province is an ideal backup location for organizations that depend on redundant infrastructure facilities.

Barriga added that for cases where companies need to expand operations, the backup system can also serve as a feasible solution. He said after the recent earthquake in Cebu and Bohol, two companies asked if it would be possible for them to set up operations in Davao.

Meanwhile, a report from the Institute of Development and Econometric Analysis, a private organization based in the University of the Philippines, Quezon City, showed that only 35 percent of survey respondents have contingency plans, and only 10 percent stated that they have business recovery and continuity strategies.


BPAP Now Known as IBPAP

by @ News Feed

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.


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Iloilo City Urged to Attract more BPO Investments

by @ News Feed

Philippines Best Offshoring Destination of the Year

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

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

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




DTI Promotes PH in US Healthcare Roadshow

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Philippine Healthcare Information Management

The healthcare information management (HIM) sector of the Philippines opens job opportunities to Filipinos. It is also one of the growing sectors, contributing to the continuous growth of the outsourcing industry. That is why the Department of Trade and Industry promoted the country as an attractive investment destination on healthcare information management at the Healthcare Information Management Systems Society (HIMSS) Annual Conference and Exhibition held recently at the Sands Expo Convention in Las Vegas, Nevada.

The Philippine delegation to the US healthcare roadshow was led by DTI Industry Promotion Group (IPG) Undersecretary Nora K. Terrado. She said the conference helped in positioning the country abroad, and to attract investors and companies in the healthcare industry to set up operations in the country. Representatives from the government and business process outsourcing companies joined Terrado as the first delegation of the Philippines to the HIMSS conference.

As one of the leading sectors in the country, the healthcare information management sector employs 100,000 Filipinos. Its workforce is expected to reach 135,000 by the end of the year. Terrado said there is a growing demand for HIM services, and they are looking at attracting more US healthcare firms that will open more jobs for Filipinos.

DTI also cited a MarketsandMarkets research which shows that the healthcare industry accounts for 17.7 percent of the US GDP, translating to almost $3 trillion in spending every year. The industry is likewise expected to expand to $4.8 trillion by 2020. This means that there is potential for the HIM sector to grow and open more job opportunities to Filipinos who have a competitive advantage in terms of communication skills, affinity to Western culture, and strong customer service orientation.


Study Shows Progression of Business Services Worldwide

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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.


PH BPO Gaining Traction in Non-voice Sector

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

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

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

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


PH Becoming a Prime Location for Investors

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The Philippines Gains Traction as Preferred Location for BPO

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

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

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

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


Accenture Initiates BPO Training for India's Underprivileged Youth

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In an effort to educate underprivileged youth and enable them to find jobs and contribute to the economy, Accenture will work together with Dr Reddy's Foundation (DRF) and the Nasscom Foundation (NF) to provide training in business process outsourcing (BPO).

For this program, Accenture and DRF will train the facilitators who are selected by Nasscom. After the course, graduates can be hired to work for Accenture.

�Bringing BPO training to disadvantaged youth is part of Accenture's commitment to building skills that will help them sustain their families and their communities,� said Harsh Maglik, chairman and geography managing director, Accenture in India. �This effort is aimed at making a significant, lasting impact on the economic well-being of individuals who might otherwise become marginalized.� Similarly, Jitendra Kalra, CEO Dr Reddy's Foundation, is confident that this initiative of providing BPO training will make a big impact on the lives of underprivileged youth.


Metro Manila's BPO Sector Outpaces India

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Metro Manila, Philippines has taken the top position as the lead outsourcing destination.

According to a report created by Knowledgefaber, a research consultancy firm, the Philippines has bested seven of India's outsourcing hubs, all of which are in the top 25 cities list, when it comes to setting up a business process outsourcing (BPO) operation. The report also found that the banking and capital market spends the most on business process management (BPM).
The Philippines gradually became dominant in the BPO scene from 2010. Canada and Poland are also identified as strong players because these are able to address language constraint issues.

India's $20-billion BPO sector grew 8.9 percent, while the Philippines grew 15.6 percent.

Knowledgefaber's Nagarajan Ganesan said the Philippines' BPO sector developed because of its large and competent workforce for the voice segment. Moreover, its affinity to Western culture makes it a desirable outsourcing hub.

IT and software organization Nasscom said India has lost 10 percent of its global market share in the past five years, majority of which came from voice-based processes.

Meanwhile, two of India's key outsourcing destinations, Bangalore and Mumbai, ranked fourth and third in the list.

Kris Lakshmikanth, CEO and managing director at HeadHunters, said India is still the leader globally for non-voice outsourcing but the competition is getting tougher as new destinations are threatening to take India's place.


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

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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.




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.


Survey Reveals Slow IT Outsourcing Growth in Europe

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IT Outosurcing Growth Dwindles in Europe

According to the recent survey by sourcing consultancy firm Equaterra, the demand for IT outsourcing in Europe registered a slow growth rate of five percent in the second quarter of 2010.

Compared to 45 percent in the first quarter, only 40 percent of global sourcing advisers surveyed believed that the demand for IT outsourcing in Europe had increased. Moreover, 55 percent (36 percent in the first quarter) said there is slow activity in the economic environment, making business owners think twice about their outsourcing plans.

BPO demand, IT outsourcing and services, and internal process improvements were some of the factors that were considered in this survey.