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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.


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Study: Contracts Paralyze IT Executives

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A new study done by Alsbridge, an independent sourcing consultancy firm, revealed that 38 percent of the 250 senior IT executives who took part in the survey feel they are "stuck in the past" as their IT outsourcing (ITO) contracts thwart growth and development opportunities.

Also, 35 percent of the respondents, who are from Europe's developed ITO markets namely UK, Holland, Switzerland, and the Nordics, said their current delivery models hinder their plans of adopting new technology.
John Sheridan, Alsbridge's director and head of ITO, said today's technology provides numerous benefits for businesses, but rigid contracts hinder innovation and integration of new ideas. Moreover, unyielding IT contracts are stunting the growth of businesses and are holding businesses back.

Meanwhile, 54 percent of IT leaders are planning to update existing contracts to comply with the tech requirements of the business and 46 percent consider technology as a crucial factor when selecting an IT provider. Meanwhile, 34 percent are thinking that promotion of cost-saving tools and technology will be repressed by suppliers as these will affect their sales.


Service Management Program Seen to Improve PH BPO Workforce

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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.


PH Government Eyes 20% Growth for BPO Sector

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Even with the proposed bill which targets US firms that are outsourcing work offshore, and with two more legislations on the way, the business process outsourcing (BPO) industry of the Philippines is poised to grow 20 percent this year. This is according to Department of Budget and Management Secretary Florencio Abad. He said in a statement that the BPO sector is strongly supported by the government, and this partnership will help in further developing the sector particularly when it comes to finding talent that is suitable for BPO work.    

He added that the government is looking for other opportunities in Southeast Asia, among other regions, and is eyeing further development of favorable industries. On behalf of the Aquino gov't, the Department of Budget and Management reiterated plans regarding the country's fiscal sustainability, aiming a 2.6-percent deficit cap this year.

Abad is confident that the government will be able to lower the national deficit to two percent in two years' time, while the revenue target for this year is set at P1.5 trillion, equivalent to 14.2 percent of the GDP.  


Global outsourcing revenues 14.4% higher than 2008

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

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

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

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

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


PH's BPO 2012 Job Target Achieved

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

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

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

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

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


PH Nurses Urged to Explore other Job Opportunities

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

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

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

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

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


Survey Says Data Centers Outsource to Deal with Capacity Issues

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Data Center Outsourcing Survey

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

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

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

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

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

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


BPAP CEO Says Outsourcing Industry will grow 20% per Year

by @ News Feed

PH BPO to grow 20% Annually Thanks to Voice-based work

According to CEO Oscar Sañez of the Business Processing Association of the Philippines (BPAP), an annual growth rate of 20 percent will be seen in the country’s outsourcing industry in the next five years. If this happens, business process outsourcing (BPO) revenues will reach US$25 billion by 2016. Last year, the industry generated approximately $9 billion in revenues.

Sañez is also optimistic about the non-voice sector of the Philippines, saying that it will grow five times in size, as stated in the Roadmap 2016.

The country has long been known as an ideal destination for voice-based or call center work, and it has already dethroned India in that aspect. The industry is now offering non-voice services in the fields of media, health care, finance, accounting, and supply chain management. The Philippines may be considered as the no. 1 location for outsourced call center processes, but overall, India remains the top destination when it comes to outsourcing and offshoring.



Outsourcing is �back in vogue�, study shows

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Outsourcing Strategy Should be Inline with Business Strategy

According to the Economic Times, reports that "after fizzling out over the past couple years as companies simply slashed jobs rather than move them, outsourcing is back in vogue," referring to a study by Pricewaterhouse Coopers (PWC). The study indicates that outsourcing has been active in countries such as India, China, the Philippines, Costa Rica and even Romania.

"Cost is still the major factor," said PWC shared services practices managing director, Charles Aird. "But people are also looking for greater efficiency, better quality and access to talent."

Forbes remained critical of some processes that have been outsourced in the past stating that “computer customer service that was outsourced to India, for example, was notorious for alienating customers.”

The study by PWC also revealed a growing list of services being outsourced. Forbes warns however, that outsourcing some core services may not be the ideal solution:

 “The key is that you've got to tie your sourcing strategy to your business strategy.”


3 Simples Ways Improve Your SEO Content Writing

by Brian Armstrong @ 1st on the List

Several months ago, I read The Life-Changing Magic of Tidying Up Your Writing by Karen Hertzberg. It contained valuable information on being frugal with words that has changed the way I think about writing. Her main idea was to groom your blog and content writing down to the bare minimum. Writing less becomes more appealing […]

The post 3 Simples Ways Improve Your SEO Content Writing appeared first on 1st on the List.

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…

The post Turning Bad Reviews into Good Opportunities appeared first on

7 new locations to be added to RP Next Wave Cities

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BPO sector to expand to 7 new outsourcing cities

According to the Commission on Information and Communications Technology (CICT), the Philippines' business process outsourcing (BPO) sector will spawn 5 to 7 new outsourcing cities this year. This will bring the Philippines' Next Wave Cities count from 35 in 2009, to over 40, ABS-CBN reported.

Last year's next wave cities list included Metro Laguna, Metro Cavite, Iloilo, Davao, Bacolod City, Bulacan East and Bulacan West, Cagayan De Oro, and Lipa City in Batangas.

Although CICT Commissioner, Monchito Ibrahim, would not name which cities in particular were to be added to the list, he explained that the goal was to have the Next Wave Cities reel in 35% of  the total outsourcing investments in the Philippines – with the other 65% belonging to Metro Manila.

"Ideally we want a 50-50 percent ratio, but that might take another 2 to 3 years to accomplish," said Ibrahim.

The current ratio in outsourcing investments is currently 75% to 25% in favor of Metro Manila – short of the 2009 goal for a 70% to 30% ratio. According to Ibrahim, this is due mainly to cities having ceased investments in their ICT, which he hopes will change this year.

"The challenge is how to attract more locators. If there's anything those aspiring to become Next Wave Cities should focus on, it's improving the manpower to supply the demand from the firms," said Ibrahim.


3 Ways to Bring Emotion Into Your SEO Content Strategy to Build Brand Awareness and Trust

by Brian Armstrong @ 1st on the List

Emotions are a content marketing tool which SEO’s today can’t overlook. How we feel about a company determines whether or not we are compelled to share information about them and whether or not we bond with their brand. This is especially true for companies which offer intangible merchandise, such as services. Selling intangibles is based […]

The post 3 Ways to Bring Emotion Into Your SEO Content Strategy to Build Brand Awareness and Trust appeared first on 1st on the List.

BPAP Now Known as IBPAP

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


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

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


PH BPO Earnings Grew nearly $2B in 2013

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

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

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

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

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


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

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Healthcare IT in Singapore will post 4% Growth

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

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

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


PH Strong Candidate for Healthcare BPO Segment

by @ News Feed

According to Juanloz Botor, President of the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP), the sizeable workforce of the Philippines in the healthcare segment can help make it the next leader in the global healthcare outsourcing industry.

Moreover, he said the health information management (HIM) segment provides several employment opportunities for the oversupply of nearly 200,000 nurses in the country. They can carry out tasks such as medical transcription, data management, medical coding and billing, and pharmaceutical benefits management.

Meanwhile, Everest Group has reported that the Philippines produces 6,000 nurses a year, and has the largest pool of US-licensed nurses outside the US. Moreover, the nursing curriculum in the country is very similar to that of the US.

The report also stated that healthcare outsourcing contributed $102 million in 2010 to $430 million by end-2012, making it one of the fastest growing segments in BPO.


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Outsourcing Activity Drops in the EMEA Region

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Decline in BPO activity

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

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

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

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


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

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BPO, Remittances to Remain Key PH Economic Drivers

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PH's Gross International Reserves Backed by Remittances and BPOs

Citi, a renowned global financial institution, anticipates that the drop in the Philippines’ foreign exchange reserves last January will be restored by the bullish business process outsourcing (BPO) sector and remittances from overseas Filipino workers.  

According to Jun Trinidad, an economist at Citi, the continuous growth of the IT-BPO sector and remittances will carry on in supporting the gross international reserves (GIR) of the country. However, he said outflows for unwinding portfolio positions, external debt repayments, among other things remain a challenge.

The economist cited the sharp drop of the Philippines’ GIR from the $83.187 billion recorded in December, to $78.939 billion last month.
He further explained that last year, GIR stock decreased by $644 million even as revenues from BPO operations and remittances were strong. Last January, it fell by $4.2 billion - the largest decline in a month’s time.

Data from Central Bank showed that 2013 experienced the highest annual record for remittances with $22.76 billion, a 6.4 percent jump from the $21.391 billion posted in 2012.

On the other hand, IT-BPO revenues grew by 17 percent to $15.5 billion in 2013, which is a sign that they’re on target in achieving the $20 billion goal by 2016.


IT Outsourcing to see Further Growth in 2011

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Growth Predicted for the Global IT Outsourcing Sector

Research company Horses for Sources predicted that IT outsourcing will see further growth in 2011, the “banner year” for managed services. This can be attributed to the high speed transfer of operational software processes to offshore service providers.

The research company also predicted that firms will focus more on service integration. This is because more companies aim to set unified goals for sales, general, and administrative processed. "The only way [for firms] to start achieving new thresholds of productivity is to integrate the management, orchestration, and delivery of their sourced operations." It added that companies intend to expand their outsourcing scope in 2011.



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.


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.


DTI Targets $10B in Foreign Investments

by @ News Feed

PH President Eyeing More Foreign Direct Investments

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

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

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

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

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


CBRE: Global Interest for Office Space in PH Remains High

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PH Real Estate Industry Driven by Miltinational Firms and BPOs

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

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

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

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

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


Pres. Aquino: Gov't Committed to Supporting BPO Industry

by @ News Feed

President Benigno Aquino III said the government will help the Philippine business process outsourcing (BPO) industry for its further growth and to enable it to generate more jobs to Filipinos. 

�So you can expect from government, in cooperation with CHED (Commission on Higher Education) and DepEd (Department of Education) and the basic sector that we are gearing all our education towards training the people for the jobs available when they do graduate instead of chasing after jobs that are currently and will no longer be existent by the time they graduate,� he said during the 5th International Contact Center Conference and Expo (ICCCE) 2011 in Pasay City. With government support, the President aims to provide graduates better opportunities to get the type of work that they want.

According to the Contact Center of the Philippines (CCAP), the country's voice-based sector posted $2.6 billion in revenues in 2006 and about $6.2 billion last year. It is also projected that the call center sector of the country will be able to increase investments and generate more jobs in the next few years.


PH can be Outsourcing Hub for Mobile Apps

by @ News Feed

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

PH as potential mobile app development outsourcing hub

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

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


PH BPO Industry Seen to Outpace other ASEAN Members

by @ News Feed

As several members of the Association of Southeast Asian Nations (ASEAN) are preparing to join the outsourcing market, the Philippines is expected to become the best business process outsourcing (BPO) destination in the region.

According to David Rizzo, President of Teleperformance Asia Pacific, the Philippines presents a very adaptable business environment to its clients. Apart from that, the combination of cost and quality is unquestionable, making it a strong candidate among ASEAN members.

In line with that, the country is known for its strong command of the English language and it is one of its key selling points. Rizzo noted that the country is also evolving into a multilingual outsourcing destination - specifically for languages used in the ASEAN region.  
He added that based on his experience in leading Teleperformance Aspac, non-English BPO services are increasing in the region - from Japanese to Korean, Mandarin, Cantonese, and some of the smaller Southeast Asian language requirements such as Thai, Vietnamese, Bahasa Indonesia, and Malaysia.


Australian Companies: Why They Choose Offshoring to the Philippines

by administrator @

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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RP digital production and animation in high demand

by @ News Feed

The BPAP (Business Process Association of the Philippines (BPAP) has organized an effort to divert focus on the Philippines' creative sector; namely digital production and animation after assessing its high potential to boost the local BPO industry.

Content development companies in the Philippines now service big foreign clients like Cartoon Network, Nickelodeon, and a large variety of Japanese animation companies. The Philippines currently reels in 15% of the total creative outsourcing market with India earning 37%.

Growth in automative creative requirements in the coming years

“In the coming years we foresee a growth in automated creative requirements from other countries, especially in the film-making and gaming sectors,” said BPAP Executive Director for Talent Development, Jamea Garcia.

Garcia further encouraged graphic designers and animators across the nation to continue to augment and apply their talents to land contracts from offshore companies looking to outsource creative requirements.


Cebu City Ranked as Top Asian Outsourcing City

by @ News Feed

For the second time, global outsourcing advisory firm Tholons ranked Cebu City as the no. 1 outsourcing city in Asia. This is based on the quality of workforce and infrastructure, as well as business growth, risk profile, cost of living, and quality of life. Pasig City, Quezon City, and Mandaluyong City were also included in the list of top 18 Asian outsourcing cities.

Shanghai and Beijing in China ranked second and third respectively, followed by Ho Chi Minh, Vietnam and Krakow, Poland.

Cebu produces many graduates from its 10 universities and colleges. However, the low hiring rate of applicants and turnover after being employed for one or two years hinder the province from meeting the BPO demand. This leads BPO recruiters to look for qualified talents in nearby provinces.

When it comes to global rankings, Metro Manila got the fourth spot. The top three global outsourcing sites are Bangalore, Delhi, and Mumbai.


PH ICT Industry to reach $50 Billion by 2016

by @ News Feed

Even with the continuous rise of the peso, the Aquino government remains positive that the local information and communication technology (ICT) sector will be able to achieve $50 billion in revenues by 2016.

ICT sector to deliver $25B by 2016

According to the deputy executive director of the Department of Science and Technology-Information and Communication Technology Office (DOST-ICTO), Monchito Ibrahim, the government has furnished the requirements needed by the ICT sector. He estimated that the information technology and business process outsourcing (IT-BPO) segment will contribute $25 billion and other ICT-sectors such as animation will deliver $25 billion by 2016.

Moreover, Ibrahim pointed out that the reliable and abundant transmission networks and cable landing stations provided by key telecommunications companies such as the Philippine Long Distance Telephone Co. (PLDT) and Ayala-led Globe Telecom Inc. are key factors for the sector’s growth.

Other influencers identified by Ibrahim are the special five-percent tax on gross income, other tax and duties exemptions, four to eight years income  tax holiday, sales grants amounting to 30 percent of total sales and discounts on training costs.

Meanwhile, DOST noted that Metro Manila isn’t the only hub equipped for IT-BPO operations as Cebu and Davao have similar infrastructure as well.


Outsourced Work not Included in India's Data Privacy Rules

by @ News Feed

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

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

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


Let Our Team Keep Up With Googles Search AI

by Alexander Felsch @ NYC SEO Authority

Discover How Google Continues To Improve And Enhance Search AI When a company or website wants to stay up-to-date with SEO then they will need to watch Google closely to understand what it's planning. Recently a conversation between Leslie D'Monte of Live Mint and John Giannandrea, who is a top ranking member of Google's search [...]

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Some Common SEO Mistakes That You Should Stop Doing

by admin @ » Blog

No matter the amount of effort you put in to rank your page higher in the search engine results, if you are not doing it right, your hard work won’t pay off. SEO is not easy and rankings can’t be … Continue reading

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Website Redesign SEO: Avoid awkward client conversations

by admin @ SEO Brothers

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

by @ News Feed

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

Next Wave Cities for PH IT-BPO

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

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

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

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

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


PH 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 IT-BPM Industry to Retain Top Position

by @ News Feed

Even if the Philippines is coming up against heavyweights in the global information technology - business process management (IT-BPM) industry, it is seeking ways to sustain its position as one of the top outsourcing destinations in the world.

According to Jose Mari Mercado, President and CEO of the Information Technology and Business Process Association of the Philippines (IBPAP), the local IT-BPM industry is closely observing the changes in the global scene. He noted that the IT-BPM industry paved the way for economies to become a premier player in the market. The executive also said the country is exerting transformation efforts.

Meanwhile, the industry is still eyeing the revenue goal of $25 billion for 2016. Last year, the local outsourcing industry posted revenues of $13.2 million and employed 777,000 throughout the country.

He said the organization's role is to cultivate the industry's potential and achieve growth in various divisions of the country by reinforcing the skills and competence of local talent.

IT-BPM is also identified to have widely contributed in reducing poverty in the country as it has the capability to generate employment opportunities for Filipinos.

RP BPO expecting higher growth rates

by @ News Feed

The Philippines' outsourcing industry is expected to grow by 30% to 35% this year compared to 2009's 20% growth rate, Business World reported CICT (Commission on Information and Communications Technology) as saying.

Insights into the local outsourcing industry by CICT were made at a forum organized by the University of Amsterdam and the University of the Philippines.

"We are looking to end 2010 with total employment of 600,000 or 650,000,� said CICT commissioner, Monchito B. Ibrahim.

The Philippines' outsourcing industry has been steadily growing amid the global recession, posting revenues of $7.3 billion last year and $6.1 billion in 2008. Mr. Ibrahim noted that the Information Technology BPO sector alone employed 446,000 workers in 2009 � up  19.89% from the 372,000 workers registered in 2008. He further stated that the fastest growing sector is the IT or software subsector and stressed the need to further develop non-voice services.

University of Amsterdam lecturer, Niels Beerepoot, saw the development of higher-end services as a positive indication of the direction the Philippine outsourcing industry is taking:

"It is good to know that there is a lot of awareness that the sector needs to move towards higher value-added activities, compared to the traditional voice-based activities," he told the forum.


KPO Posts Steady Growth, Catching Up with Voice, Says Ibpap

by @ News Feed

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.


EMEA Region Posts Record Outsourcing Growth in Q2

by @ News Feed

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

Record-high outsourcing growth

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

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

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





Google+ Local Is No More And Other IM News

by David Jenyns @ Melbourne SEO Services

I hope you had a rockin’ 2015 and you’re now ready to take on 2016. I’m curious, what are you going to do differently this year? Have you got any goals you’re willing to share? I’d love to hear them. I could be like an accountability partner. I also wanted to let everybody know that […]

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Filipino Workers Ready for ASEAN Integration

by @ News Feed

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 Warned against too much Reliance on BPO

by @ News Feed

UNCTAD Warns PH on BPOs during World Investment Report

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

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

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



PH Remains Strong in Asia-Pacific's Voice BPO

by @ News Feed

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

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

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

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

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


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.


Outsourcing SEO: Why You Should Be Doing It

by administrator @

To understand the value of outsourcing SEO, you need to understand the value of digital marketing. How does SEO benefit you/your business? The fact is, one successful post can reach thousands perhaps even millions of people. Particularly when it’s ranked high enough. For this reason; the reach and benefits of the Internet, companies are spending […]

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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."


PH Industries Post Slower Gross Revenue Growth in Q1

by @ News Feed

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

Lower revenue growth for business process outsourcing sector

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

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

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

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

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


Cebu Ranked 8th in the List of Outsourcing Hubs

by @ News Feed

Investment consultancy firm Tholons and the Cebu Investment and Promotions Center (CIPC) recently announced that Cebu City, Philippines has climbed one spot to 8th position in the Top 100 Outsourcing Destinations Report for 2013.

Other local regions included in the list are Manila (3rd), Davao (70), Sta. Rosa, Laguna (84), Iloilo City (93), Bacolod City (94), and Baguio City (99).

Quality and availability of workers are some of the factors that were considered in ranking the outsourcing hubs. Cebu clearly fits the bill with a BPO workforce of 95,000. It likewise produces an average of 24,000 college graduates annually.

However, according to CIPC Managing Director Joel Mari Yu, Cebu's main challenge is to address the skill mismatch of its workforce.


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.



Data Privacy Bill to Benefit PH BPO Sector

by @ News Feed

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.


TESDA to Provide Finishing Courses for Call Center Agents

by @ News Feed

Call Center Agents Philippines

Business process outsourcing (BPO) is one of the revenue generators in the Philippine economy. That is why the government strongly supports the industry. To further improve the country’s pool of Filipino talent, the Technical Education and Skills Development Authority (TESDA) will provide free finishing courses for call center agents (FCCA) as part of the Training-for-Work Scholarship Program (TWSP). 
A total of 2,285 slots will be allotted to college graduates and students who have finished at least four semesters, according to TESDA-Cordillera Regional Director Yolanda Olano. She added that the TWSP is not only exclusive to those who are in Baguio and Benguet area - people from Cordillera may also apply for a grant. 
Of the 2,285 scholarship slots, 500 candidates will be chosen from Baguio City. Baguio-based organizations such as Globaltech, CTEISI, and Informatics College Baguio Inc, are the partner Technical-Vocation Institutions or TVIs of TESDA for this program. Interested college graduates and students can go their city or provincial chief executives for more information.
For those who want to further improve their skills or learn something new to be suitable for other job opportunities, Olano said they could avail of other training programs being offered by TESDA-CAR’s Regional Training Center and TVIs.

Solon Says US Anti-outsourcing Bill to Affect PH BPO

by @ News Feed

The proposed House Bill (HB) 3596 or the �Call Center and Consumers Protection Bill� in the US is considered as a protectionist measure and may gravely affect the business process outsourcing (BPO) industry of the Philippines.  

Rep. Evardone, who is also the Chairman of the House Committee on Public Information, urged the Aquino government to launch a campaign before the United States Congress to stop this initiative which will likely be approved come election season. 
The House Bill states that call center agents are now required to state their location and should ask US callers if they would want to be transferred to a local operator. Also, companies that fail to report their location to the US Department of Labor within 60 days will receive a fine of $10,000 per day. They should likewise be able to report within 120 days prior to their plans of moving work offshore.  Lastly, offshore call centers will not be qualified for loans and grants. 

Evardone said that if this bill becomes a law, it would affect the BPO industry of the Philippines. He also stated that the government should support the country's BPO sector as it is currently the leader in voice-based processes globally.  Moreover, there is a need to protect the factors that make the country an ideal outsourcing destination - a pool of workers with good English communication skills, as well as advanced telecom infrastructure setup.

He added that the industry earned $100 million in 2001 and has doubled its revenues annually, hitting the $3.3 billion mark in 2006.


How to Get an ROI from SEO

by Nathan Gotch @ Gotch SEO

The acronyms “ROI” and “SEO” don’t often go together in the agency world. I’ve been guilty of focusing on SEO-driven KPIs such keyword rankings, backlinks, and organic search traffic. But here’s the truth: Businesses only want one thing… RETURN ON THEIR INVESTMENT. When they invest $24,000 into a SEO campaign, they want MORE than $24,000 […]

Top 5 Competitive Analysis Tools Every SEO Company Should Use

by Asif Khan @ EZ Rankings

No matter what industry one is in conducting business calls for competition and with competition coming competitors.  One must keep a track on these opponents for beating any competition. The marketing move has to be spied upon. The spying regarding business online comes with tracking the opponent website’s social mentions, content, emails, search rankings and everything that is done by them for boosting the business. This is because what may be helping them might just help you too. Here are is a list of the five tools for analyzing competition that every company should be using. SEMrush A Best SEO Company will always recommend this instrument as it has the maximum votes and has been rated as the best tools […]

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…

The post eCommerce SEO: Optimizing your eCommerce Website for SEO appeared first on SEO Brothers.

PH Poised to become Next Investment Hub in Asia

by @ News Feed

Cyril Rocke, President of the French Chamber of Commerce in the Philippines (FCCP), said on behalf of the organization's members that they are really interested in creating partnerships with businesses in the Philippines.

While discussing the current trade environment between France and the Philippines, he mentioned that the purchasing power of Filipinos and local organizations are improving, resulting to better investment opportunities.

Moreover, he said the Filipinos' positive attitude, determination, and hard work paid off, which lead to growth and development across various industries. He added that investors should take note of this admirable event.

He cited business process outsourcing (BPO), infrastructure, healthcare, pharmaceuticals, beauty and wellness, as well as food as some of the sectors that offer great investment opportunities for French companies.

Meanwhile, FCCP and the Makati Business Club (MBC) are closely working together to reactivate the Philippines-France council.


Execs Take Part in 2010 Outsourcing World Summit

by @ News Feed

The International Association of Outsourcing Professionals (IAOP) brought together more than 550 outsourcing executives from different organizations around the world in the recently concluded 2010 Outsourcing World Summit held in Florida.

Companies learned the benefits of outsourcing

“This year’s Summit was particularly timely and relevant to organizations as the economy shows signs of rebounding,” said IAOP Chairman Michael Corbett. “Companies learned how outsourcing can help create change, enable growth and add value to their organizations.”

Joshua R.Jewett, senior vice president of Information Technology and procurement, and chief information officer, Family Dollar Stores, Inc.; Dmitry A. Loschinin, president and chief executive officer, Luxoft; and the late Dewang Mehta, past president, NASSCOM® were inducted into IAOP's Outsourcing Hall of Fame. Meanwhile, Johnson & Johnson’s Julia Santos and commercial real estate executive Rich Etzkorn were recognized as “Members of the Year” at the Summit Awards Luncheon held last Feb. 16.

IAOP's official publication “Globalization Today” was also launched during the event. This aims to tap insights of individuals from around the world and create “the best and largest informational resource on outsourcing”.


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

by @ News Feed

US Businesses urged to Create more Jobs Locally

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

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

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

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


Bonifacio Global City is PH's next Outsourcing Hub

by @ News Feed

According to Sheila Lobien, head of project leasing - markets of property management firm Jones Lang LaSalle, Bonifacio Global City as the emerging BPO hotspot. She said the high quality of office developments and location make it an attractive destination for BPO companies.

Leasing rates in BGC are said to be marginally lower than those in Makati. Office space at BGC ranges from Php700-900 per square meter per month, whereas in Makati, it costs Php600-1,200 per square meter.

Jones Lang LaSalle recently identified the business process management (BPM) industry as a crucial factor to the growth of the commercial space market in the Philippines. Outsourcing companies in Metro Manila comprise 80-90 percent of occupancy and reservations for office spaces.

Lobien added that at present, office space is over 168,000 square meters and pre-commitment is increasing - proving that the market is very optimistic. Of the 168,000 square meters allotted for office space, 52,000 square meters were taken up by BPO companies.


PH BPO: Weak Peso is Favorable

by @ News Feed

At the International Contact Center Conference and Expo (ICCCE) in Cebu, Benedict Hernandez, President of the Contact Center Association of the Philippines (CCAP), said the weak peso is favorable for local outsourcing and the call center segment. He explained that the strong peso is detrimental to the local outsourcing sector as it makes the operational costs in the Philippines more expensive than its neighboring counterparts.

Hernandez cited India as an example, where every time the peso strengthens, the operational costs of business process outsourcing (BPO) in the country become 25 percent less expensive. However, he noted that even with the substantial difference in rates, the Philippines' competitive advantages make it a preferred outsourcing destination.

He added that the strong brand of the Philippines as an outsourcing destination that possesses great work ethic from employees, affinity to Western culture, and exceptional English communication skills reinforces its position in the voice outsourcing segment.

Meanwhile, Everest Group Vice-president H. Karthik said the weak peso is more vital in the non-voice and information technology segment of outsourcing. The executive noted that call center firms in the Philippines should offer differentiated services at lower costs to maintain its leading position.


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.



EU-PH Trade Reaches Record-Highs last Year

by @ News Feed

2014 witnessed the highest trade flows between the European Union and the Philippines. This puts the union of 28 member-states in the same position with the US as Southeast Asia’s third trading partner.

A 16-percent increase in trade in goods was seen between the Philippines and the EU last year where it grew from €10.8 billion in 2013 to €12.5 billion. It also produced a surplus of €1.1 billion in goods as stated in the data collected by the EU Delegation.

The Philippines’ second biggest source of imports is the EU. Consequently, EU’s exports of goods to the country increased by 70 percent over the past three years.
Trade in services also rose by 17 percent to €3.1 billion in 2014, producing a surplus worth €300 million for the Philippines. Transport, business process outsourcing, and finance sectors dominated the services trade.

According to the EU Delegation, the strong trade flows are partially triggered by the growth of the Philippines which can be attributed to concrete macro-economic policies - proven by the ratings indices upgrades, growth within the middle class, increased government spending, and economic reforms loosening the financial and other sectors of the country.

The Delegation added that the ongoing economic recovery in the EU also signals an increased demand for products from the Philippines and more investment opportunities. EU was the Philippines’ largest investment partner in 2014 for foreign direct investments. The union contributed €800 million or 26 percent of overall flows into the country, and added to the 450,000 current jobs produced by investors.


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.


Steps of Catalysing Link Building Campaign

by Abhishek Kumar @ Design and Rank

SEO constitutes numerous activities, link building is one of those. It is in fact termed as backbone of the entire process of search engine optimization. Without an effective link building, … Read more

The post Steps of Catalysing Link Building Campaign appeared first on Design and Rank.

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.


1st on the List President Chris Genge Featured in Media Shower’s Expert Interview

by Carissa Krause @ 1st on the List

We were recently asked to participate in an Expert Interview series with Media Shower, a Boston-based content marketing company focused on making content better. Since content plays a huge role in Search Engine Optimization (both from a visitor and Search Engine perspective) we thought this would be a great conversation. In the interview, Chris Genge was […]

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Surge of Shorter Outsourcing Deals Predicted this Year

by @ News Feed

According to Mark Lewis, an outsourcing executive at Berwin Leighton Paisner, a law firm, organizations will be busy working on data. He also predicted that financial institutions will outsource IT more using public cloud, but the deals will definitely be smaller or in shorter terms.

Furthermore, he said IT outsourcing deals will be overhauled, which in turn, will make it harder for some providers to outshine the competition. The ones who are innovative and can offer smart solutions will be successful.

Meanwhile, Lewis mentioned that hostile nations and state-sponsored terrorists will launch cyber-attacks on the UK government, and one or two will be successful in doing so, causing major damage even if online security is improved.

It was also predicted that the number of cloud-based outsourcing deals will increase rapidly over the following months.


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.


Strong IT Outsourcing Activity Seen in the EMEA Region

by @ News Feed

According to the Q3 2014 EMEA ISG Outsourcing Index, a study that covers deals with an annual contract value (ACV) of �4 million (�3.3 million) or more, discovered that ACV throughout EMEA reached almost �7 billion (�5.8 billion) even though the third quarter experienced a slowdown. It also found that during the past decade, this is the third highest year-to-date total so far.

In a statement, John Keppel, a Partner at ISG, said 2014 was a promising year for the EMEA market, leaving a positive outlook for the rest of the year. This could make 2014 one of the strongest - if not the strongest - years within the past 10 years.

Increased activity in Spain, Italy, and Southern Europe resulted to an ACV of �0.74 billion, the highest so far. Also, ACV in France amounted to more than �1 billion during the first three quarters, which is an increase of over 250 percent during the same period in 2013.

On the other hand, over the past five years, UK remains the largest and most mature outsourcing market in EMEA. Compared to the previous quarter, the UK's ACV climbed 120 percent, and the number of deals grew 48 percent. However, UK values and contract numbers did not reach 2013's third quarter figures.

During the first three quarters of 2014 throughout EMEA, ACV increased 15 percent compared to the first three quarters of 2013. As for the number of outsourcing contract deals, EMEA's contract volume reached an all-time high during this period.


4 Things to Consider Before You Outsource SEO

4 Things to Consider Before You Outsource SEO

Alexa Blog

Doing SEO yourself can seem like a daunting task, so many people consider outsourcing. But before deciding to outsource SEO, there are 4 things to consider.

RP challenging India for BPO supremacy, PGMA says

by @ News Feed

President Gloria Macapagal-Arroyo is confident the Philippines is poised to take over as the leading destination for Information and Communication Technology-Business Process Outsourcing (ICT-BPO), Philippine Daily Inquirer reported.

Arroyo's statements regarding the performance of her nation's ICT outsourcing sector were made during a speech at the John B. Lacson Foundation Maritime University in Iloilo City as part of her Cyber Corridor tour.

Iloilo is currently ranked as the third fastest growing outsourcing location among the top 10 next-wave outsourcing cities next to Metro Laguna and Metro Cavite. Iloilo's ranking is followed by Davao, Bacolod City, Bulacan East, Bulacan West, Cagayan de Oro, Lipa City and Pampanga Central.

�Today, the Philippines with 90 million people has challenged India's 1 billion population for BPO supremacy. Compared to $.02 B in 2001, which is almost nothing, our BPO industry has earned more than $7 billion in 2009. And that is not far behind India's $9 billion (earnings) for call centers,� Ms. Arroyo stated.

According to the President, the growth of the Philippines' outsourcing sector has shown positive growth trends due to services that include offshoring and outsourcing processes such as accounting, legal, medical, personnel and administration services. 


Mid-sized Firms Outsource more than Large Enterprises

by @ News Feed

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.


Debt Watcher Raises Growth Forecast for PH

by @ News Feed

Fitch Ratings’ report released last April 2 covered its March 17 rating and growth prediction for the gross domestic product (GDP) of the Philippines. The debt watcher anticipates that the country’s GDP will expand to 6.3% this year, from 6.1% in 2014. It is also predicted that it will reach 6.2% next year. The country currently has a “BBB-“ investment grade and a “stable” outlook from Fitch.

The latest forecasts for 2015 and 2016 are higher than the predictions released in January wherein growth was set at 6.2 percent and 6.0 percent, respectively. The report also revealed that the steady inflow of remittances from overseas Filipino workers and the bullish business process outsourcing sector will continue to propel growth.

However, Fitch’s growth predictions are lower than the 7-8% growth targets set by the government. Last year, the economy grew by 6.1% - marginally lower compared to the government’s 6.5-7.5% target. Issues that strained the growth last year include slow agricultural sector, and lower-than-expected and sometimes dwindling state spending.

Fitch said sustained and strong growth in the country will lessen the income and development differences with its ‘BBB’ range peers without causing imbalances, and it would be considered positive for ratings.


PH BPOs Now Looking at Alternative Locations

by @ News Feed

Property advisory and services firm CB Richard Ellis (CBRE) Philippines, Inc. said due to the increasing rents in Manila’s renowned business districts such as Makati and Bonifacio Global City (BGC), business process outsourcing (BPO) firms are now looking at other cities outside Metro Manila as well as provinces.

Alternative locations being considered for BPO expansion

CBRE, which is celebrating its 20th anniversary this year, stated that Alabang, Quezon City, and the Bay Area are some of the locations that are being considered for expanding BPOs.

Rick M. Santos, chief executive officer and founder of California-based CBRE Philippines, the local arm of CBRE Group, Inc. said these locations are home to a rising hub of retail and commercial developments which are helping attract new office growth. He added that secondary options for office properties opened up, which could mean old or former offices, and would be available soon.

A CBRE report showed that during this year’s second quarter, Metro Manila is still one of the prime rental locations in Asia even if rate is a bit more expensive than neighboring business hubs such as Bangkok, considering that it is not a BPO destination. Metro Manila offers $32 per square foot per annum while Bangkok’s is $30.

Santos also pointed out that key factors that are driving outsourcing companies to put up and expand operations in the country are steadily improving infrastructure, telecomunications, and rising volume of public-private partnerships.

Morgan Mcgilvray, director of CBRE’s corporate agency and brokerage department, said BPO hubs are expected to emerge in provinces such as Cavite, Pampanga (Clark), Baguio, Laguna, Cebu, Iloilo, Bacolod, Cagayan de Oro, and Davao.


Latest Data in Healthcare IT Outsourcing Released

by @ News Feed

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

Healthcare IT outsourcing solutions addressing challenges like rising costs

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

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

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

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

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


ASEAN Integration to Bring more BPO Opportunities to PH

by @ News Feed

ASEAN Integration Seen to Boost PH BPO

As more companies are looking to expand and set up operations in the Philippines, the integration of Association of Southeast Asian Nations economies is a perfect platform for the country to present information technology-business process outsourcing (IT-BPO) services to foreign companies.

According to Dan Reyes, Chairman of the Information Technology and Business Process Association of the Philippines (IBPAP), the firms that have chosen the Philippines as a location for their in-house centers or captives will have the chance to develop multilingual skills and culture, and gain access to a rich pool of resources.
IBPAP President Jose Mari Mercado cited firms that have operations in Singapore or Japan, saying they can now consolidate operations in Manila since they can now have global centers in the country’s capital. However, he pointed out that the Philippines doesn’t have the required language capabilities and skills to successfully tap potential investors even if the country is a favored outsourcing hub.
The IBPAP executive added that the sector is partnering with the Commission on Higher Education in identifying vernaculars that can boost the country’s position in the outsourcing space.

Basically, what the ASEAN integration can do is make it easier for other ASEAN member nations to work together. For instance, if a company considers having a regional shared service facility in the Philippines and needs Vietnamese agents but cannot find them in the Philippines, it should be easier for them to address this type of challenge.

IBPAP is scheduled to release a new list of next wave cities by the end of the month - at least 23 cities where BPO firms are now operating. Also, the sector is anticipated to employ 1.2 million workers by the end of the year.


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.


How to Become an SEO Expert [Complete Guide]

by Nathan Gotch @ Gotch SEO

Are you wondering what steps you need to take become an SEO expert? Perfect because this guide is going to show you everything you need to know. Becoming an SEO expert isn’t as complicated as you may think. All you need to do is follow the framework I’m going to show you and take action. […]

Foreign Investors Optimistic on PH Growth

by @ News Feed

Foreign traders recently stated that they remain optimistic on the growth prospects of the Philippines despite uncertainties brought on by the May national elections.

The country’s growing external trade, booming business process outsourcing (BPO) sector, and continuous influx of remittances have been noted by representatives of the British and German chambers of commerce.

Chris Nelson, President of Philip Morris Fortune Tobacco and Chairman of the British Chamber of Commerce, said traders are eyeing to invest on infrastructure and banking.

Moreover, the executive said the growth rates of the Philippines are impressive and British businesses are looking to sustain the growth.

Economic analysts predicted that the Philippine economy will grow by 6.5 percent this year, which is higher than the 5.8 percent growth posted last year.

Meanwhile, Charlotte Bandelow, Deputy Executive Director and Head of trade promotion at the German-Philippine Chamber of Commerce and Industry, said German businesses saw the positive changes carried out by the present government of the Philippines. These led to a stable economy and attractive investment climate. Furthermore, she pointed out that the trade volume between Germany and the Philippines amounted to P5.5 billion in 2015. However, she warned that the Philippines needs a “competent government” to remain on the right track.


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.


ICT-Davao Head Says Schools should Start Offering KPO Courses

by @ News Feed

Davao City got the top spot in this year's Top 10 Next Wave Cities, but it lacks enough manpower with the skills needed for knowledge process outsourcing (KPO) work. This is why Erriberto Barriga Jr., head of the Information and Communications Technology of Davao (ICT-Davao) said schools should start offering KPO courses like gaming software development.

The Philippines has long secured its place in the global outsourcing industry when it comes to voice-based work, but experts have advised the country to move to KPO, a different BPO segment that requires analytical and design skills. KPO demand may be increasing, but Barriga said there are no locators that offer skills needed to meet KPO requirements.

Barriga said 42 universities in Davao had produced 15,000 graduates earlier this year with skills that are suitable for contact center operations. ICT-Davao expects that they will be able to exceed the 10,000-seat target for call centers this year.


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.


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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.




Google Still Ignores Last-Modified Meta Tag

by Jennifer Slegg @ The SEM Post

If you are using the last-modified meta tag, be aware that Google ignores this tag when it comes to SEO. The tag is <meta http-equiv=”last-modified” content=”YYYY-MM-DD”> which was originally used to alert crawlers to the fact a page was updated, or as a reference to when it was last updated after it was initially published. […]

The post Google Still Ignores Last-Modified Meta Tag appeared first on The SEM Post.

Procurement Outsourcing Posts 10% Growth

by @ News Feed

In Everest Group's The Procurement Outsourcing Annual Report, it was found that the total value of contracts involved with procurement outsourcing has already reached $1.72 billion (�1.13 billion), and managed spend now amounts to $220 billion (�144 billion).

One of the key propellers of the procurement outsourcing market is the increased demand from tech firms and financial services. Meanwhile, consumer goods and manufacturing companies are still the biggest adopters of the practice.

Although it is uncommon to outsource direct spend to third party service providers, more and more companies are doing so. The top players taking up 50 percent of the market share in the procurement outsourcing segment are IBM and Accenture.  

The study also revealed that a growing number of businesses are tapping different countries for new deals to reinforce their global expansion plans. Other firms that are looking to outsource procurement processes try it with spend analytics first to understand how it works.


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.


NZ Firms Seen to Invest More in PH

by @ News Feed

More Investors from New Zealand Anticipated

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

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

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

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

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


Quality over Quantity: Making SEO Content Work for You

by admin @ SEO Outsourcing UK

Business people have in the past concentrated on producing a lot of content rather than concentrating on the quality. While producing loads of information may seem a good way to get a better google ranking, great content does not rely on the word count but the user’s experience.You don’t need to create a lot of […]

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Canadian Small Companies still don't Want to Outsource

by @ News Feed

Still Hesistant to Outsource

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

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

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

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

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


5 Reasons to Avoid “Affordable” SEO Services

by Nathan Gotch @ Gotch SEO

Falling for the “affordable” SEO services trap will wreck your business. I don’t want that to happen to you! This guide will explain why you need to avoid these services (and what to look for). Then, I’ll show you what you can do if you have a limited SEO budget. Let’s jump in. What is […]

5 Top Reasons You Need Local SEO for Your Small Business

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

When it comes to grow your company in terms of customers and revenue, local market can be your greatest asset. The local consumers from your nearby areas gets influenced really fast than the one residing far. Here, local SEO can be utilized to gain some potential customers for your business. Now a days, The businesses[...]

The post 5 Top Reasons You Need Local SEO for Your Small Business appeared first on SEO India - Top Indian SEO Experts Company with Proven Results.

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.


Engineering, MBA Talents Sought to Meet KPO Demand

by @ News Feed

Demand for Engineering Candidates to Rise in Philippine BPO

Knowledge process outsourcing (KPO) is poised to emerge as the next focus of the outsourcing sector, and the Philippines must have enough engineering and MBA talents that will meet the demand of KPO firms.

According to Larry Jones, CEO of StarTek, Inc., the country has what it takes to be an ideal KPO destination and meet the increasing demand in the industry that involves analytic-intensive tasks such as planning and research.

While the country has a constant supply of young and skilled individuals, Jones said lack of enough workers from the engineering and MBA fields poses a problem. Aside from education issues, “lack of assertiveness and accountability” of potential KPO workers must be addressed.


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

by @ News Feed

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.


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.


AU Companies Turn to Outsourcing for Growth

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As the effects of the recent economic downturn continue to plague Australia, top business executives shift focus on innovation, streamlining business processes, and upgrade of IT functions to drive growth.

A research from leading market consultancy firm IDC states that the ability of companies to keep up with the latest technological trends in the market is crucial in today’s fast-paced business environment. IDC Australia’s Senior Market Analyst Raj Mudaliar said another strong point that business leaders should look into is customer support to reinforce retention, centricity, and client base to keep the business going.

IT outsourcing services market in Australia projected to reach $9.5B by 2016

He adds that the IT outsourcing (ITO) services market in Australia was valued at $7.3 billion in 2011 and accounted for majority of the entire IT services market. It is also projected to reach $9.5 billion by 2016 with a compound annual growth rate (CAGR) of 5.4 percent for 2012-2016.

On the other hand, Mudaliar said the infrastructure services outsourcing (ISO) market was propelled by long-term cost saving goals, simplified IT infrastructure, as well as access to the latest technological advancements and talent pool with technical skills.

Other factors that are seen to affect Australia’s business environment are the looming economic challenges in Europe as well as the recession in the US and its effects on China which is the largest trading partner of Australia.

The IDC study also shows that the increase in labor and operational costs, tapping new customers, and penetrating new markets are the main concerns of Australian businesses in 2012-2013. Moreover, IDC shares that the concerns of CIOs for 2012 are consistent with their report which are lower costs of infrastructure, partnerships, and stricter IT environment.


Accenture to open BPO center in Kenya

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BPO in Kenya

Accenture has piloted a project in Kenya that will likely lead to the establishment of an outsourcing center there in the near future, The Industry Standard reported. The new pilot project is part of the NetHope summet, which supports humanitarian agencies with outsourcing and shared solutions.
 Accenture has worked with the Kenyan government for two years to investigate means of improving market and technical conditions in its growing IT export sector – set for a significant boost with the opening of an outsourcing park along Nairobi's Mombosa Road.

 "It means a lot to Kenya for Accenture to set up its base here; it is a leading outsourcing company and is likely to pull other outsourcing companies," stated CEO of Kenya ICT Board, Paul Kukubo.


Global HCIT Outsourcing Market to Reach $50.4B by 2018

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Healthcare information technology outsourcing market predicted to reach $50.4B

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

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

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

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

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


Increase in Demand for Office Space Seen due to BPO Growth

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Due to the incessant expansion of business process outsourcing (BPO) companies in the country's central business districts (CBDs), Rick M. Santos, chairman of the local property consultancy firm CB Richard Ellis Philippines, Inc., predicted an increase in demand for office space, saying that leasing in the Philippines is much cheaper - only one-twelfth of the rates in Hong Kong.

Mr. Santos sees a 30% or roughly 350,000 sq. m. increase in office space leasing compared to 2010.  �Last year, we hit 275,000 sq. m. It will be up this year because BPOs will expand,� he said.

Bonifacio Global City in Taguig, Pasay, and Eastwood City in Quezon City will still remain as �growth areas� for both BPO and KPO companies.

According to the quarterly report of CB Richard Ellis entitled �Market View: Asia Pacific Offices�, office space rent in Metro Manila (about $20.22 per square feet in the first quarter) is still the second cheapest in Asia Pacific.

Also, Mr. Santos said 20% of the Zuellig Building is now reserved for office use. This is the first ever US Green Building Council's Leadership in Energy and Environmental Design (LEED)-certified structure in the country.


BPO Sector to Continue Driving PHL Economic Growth

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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.

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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.


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PH Call Center Sector Expects up to 25% Growth until 2016

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Benedict Hernandez, President of the Contact Center Association of the Philippines (CCAP), predicts a faster growth rate for the country's call center industry - at an annual growth rate of 20 to 25 percent. This was lower than the initial growth forecast of only 15-20 percent, though he said the sector is more sustainable now. According to CCAP's mid-year evaluation for 2011, the 15 to 20 percent growth in revenue and workers are attainable.

This year, the sector is expected to post $7.1 billion in revenues with more than 400,000 in the workforce. In 2010, it employed 344,000 workers and generated $6.2 billion in revenues.

Hernandez said this projected growth will driven by expansion of companies and new investments. He also sees �captive� models as one of the most sought after solutions as businesses consider outsourcing amidst the financial crisis.

Hernandez identified the financial crisis in the US during 2008 and 2009 as the worst hurdle for the industry.  However, he added that during those times, larger global companies began outsourcing their manpower offshore to manage costs, which contributed to the �significant� growth of the sector and that businesses are always open to other options for cost reduction.

Meanwhile, the Commission on Higher Education and CCAP recently signed an agreement to improve college curricula and offer diverse training programs. Hernandez further explained that courses related to BPO will be available in universities as part of the educational programs by 2012-2013.


Fresh Grads can Land First Job in PH BPOs

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At’s  Jobs and Salary Report for Fresh Graduates, it was discovered that business process outsourcing provides the easiest means for fresh graduates to get jobs. In fact, the top five specializations for fresh grads are related to the BPO/call center sector which are IT/Computer - Hardware, Technical and Helpdesk, Telesales and Telemarketing, and Clerical/Administrative Support.

High-salaried jobs in the IT sector

It was also discovered that the information technology (IT) sector has high-salaried jobs.

According to Yoda Buyco, Marketing Director of Philippines, the report is based on the job opportunities posted at from January to March 10, 2015. Thirty percent of the job openings are related to voice-based operations or call center work.

There are also vast opportunities for fresh grads in non-BPO industries such as Finance - General/Cost Accounting, Human Resources, Banking/Financial Services, Hotel Management/Tourism Services, and Marketing/Business Development.

However, Buyco pointed out that the sector of the industry offers the highest paying jobs which include the IT/Computer Hardware-related jobs offering P24, 000 for fresh graduates, and jobs in the Network/System/Database Administration, Technical/Helpdesk Support segment are pegged over the P21,000 monthly salary mark.


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.


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Pampanga Cities to Become IT -BPO Hubs

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

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

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

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

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


Global outsourcing market up 40%

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

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

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

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


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.


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.


BPOs Planning to Move to Next-Wave Cities

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Next Wave cities, or areas with ideal business environments for outsourcing operations, are now being considered by business process outsourcing (BPO) companies. Most (85-90%) BPO firms in the Philippines operate in Metro Manila, and relocation will help reduce congestion and provide more employment opportunities to talent pools in other cities and provinces.

Next-wave BPO cities in the Philippines

The 10 “Next-Wave BPO cities” report stated that Davao City, Sta. Rosa City in Laguna, Bacolod, Iloilo, Cavite, Lipa in Batangas, Cagayan de Oro, Malolos in Bulacan, Baguio City, and Dumaguete, Negros Oriental have talent supply, infrastructure, and telecom setup that BPO companies need.

The Department of Science and Technology (DoST) and the Business Processing Association of the Philippines (BPAP) released a study indicating that Davao City, Sta. Rosa City in Laguna, and Bacolod City are the three leading BPO destinations out of the 34 locations in the country. Last year, the outsourcing industry posted more than $9 billion in revenues with more than half a million in the workforce.

The BPO sector anticipates an increase in revenues and employment opportunities in 2016 if the plan to relocate or expand to urban areas outside Metro Manila pushes through. Also, BPAP sees cities outside the capital will be employing one third of the predicted 1.3 million BPO candidates by 2016.


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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.


Call Center Sector still Top Revenue Earner for RP BPO

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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. 


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

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PH BPO Sector Unfazed by Salary Increase

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

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

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

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

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


Outsourcing Trends for 2014

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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.


CBRE: PH BPOs Initiate Decentralization

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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.


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

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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.


Growth Expected for Revenue Cycle Management Outsourcing

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ICD-10 and Revenue Cycle Management

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

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

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

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

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

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


Pres. Aquino Optimistic that PH BPO will reach $25B

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During President Benigno Aquino III's speech at the groundbreaking ceremony of a $50-million facility owned by Sutherland Services in Carmona, Cavite, he said the business process outsourcing (BPO) sector will post revenues worth $25 billion and provide 1.3 million direct jobs and 3.2 million indirect jobs at the end of his term in 2016.

Aquino thanked the BPO sector which plays an important role in the country's economic growth by providing employment opportunities to Filipinos. He added that his administration is improving the talent pool of the country. One of the initiatives is providing an Industry-based Training for Work Scholarship Program for those who want to enter the BPO workforce. The government had allocated half a billion pesos to this program. More than Php200 million have already been disbursed and through the Technical Education and Skills Development Authority (TESDA), the program was able to train almost 36,000 Filipinos.
The BPO sector posted $11 billion in revenues last year and was able to provide 640,000 direct jobs.

Sutherland Global currently employs 13,000 to 15,000 workers. The recently inaugurated facility has a capacity of 8,000 seats and is expected to provide 24,000 jobs.


US IT Spending to Bounce Back this Year

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After a five percent decline in 2009, the US IT services market is poised to recover this year and will reach $79 billion. This is according to a report from Forrester Research.

IT consulting remains to be the strongest segment in the US IT services, followed by hardware support/sales and system integration business.

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

Forrester report findings matched the projections of research firm Gartner on the global IT spending market, stating that it will grow 5.3 percent this year and will hit $3.4 trillion.


Cost Reduction still Primary Reason for Outsourcing

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

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

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

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

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


Outsourcing costs expected to decline in 2010

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

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

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

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

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


UK Outsourcing Activity Slows Down

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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.


�You get what you pay for' in Outsourcing Deals

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After studying different outsourcing deals, researchers at the University of Tennessee found out that there are several mistakes committed by companies when it comes to establishing outsourcing partnerships.

"One of the common mistakes companies make is that their business model and the outsourcing contract are not aligned," said Kate Vitasek, UT lead researcher and supply chain consultant. "Economist Steven Levitt states it best - one of the most powerful laws of the universe is the law of unintended consequences. And a key reason for unintended consequences is that people do what they are paid to do." Vitasek said buyers will only get what they contract for, and service providers will only do what is indicated in the legal agreement.

The research team had identified ten mistakes companies make in outsourcing deals. These include perception on outsourcing only as cost-cutting measure, outsourcing that is purely transactional, and the lack of mature processes to keep track of the service provider's performance.


Malaysia's Outsourcing Revenues to Grow 20-25%

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Things are looking up for the outsourcing industry of Malaysia. From about $1.1 billion reported in 2009, David Wong Nan Fay, Chairman of Outsourcing Malaysia, said revenues are expected to increase by 20-25 percent this year.

Contributions will be coming from retail, healthcare, financial and insurance, oil and gas, supply chain services, and engineering sectors, as well as business process outsourcing (BPO) and information technology (IT) processing.

However, a research report shows the country still has to work on other sectors that are lagging behind. "For instance, in the BPO segment, we are still on the mild-side as we have just created a foothold in outsourcing such as for human resources and customer care." This is in contrast to the multiple outsourcing segment which is already thriving in the Philippines.


The 25 Most Dangerous Outsourcing Spots in 2010

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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


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

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National Outsourcing Association names Philippines Offshoring Destination of the Year

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

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

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

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

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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.


ICT/BPO Sector Pushes for Impact Sourcing in Provinces

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ICT/BPO Training Programs in Rural Philippines

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

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

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

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


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Outlook Positive for PH Banking Market

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Rating organization Fitch Ratings recently revealed that the Philippines is the only banking market across the Asia-Pacific region that registered a positive outlook for next year.

Fitch has changed its outlook from positive to stable for two Philippine banks - Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP).

Fitch also released the "2016 Outlook: Asia-Pacific Banks" report and said in an supplementary note that Philippine banks are able to withstand risks from high credit growth over the last couple of years because of the banks’ ability to have healthy funding and liquidity, high capitalization, and adequate loan-loss reserves.

The ratings also stem from concentrated loan books, ownership by large family-controlled conglomerates, and developing corporate standards.
Next year, the Philippine economy is seen to grow by 5.9% from 5.6% this year. Growth is said to be anchored on continuous influx of remittances from overseas Filipino workers, and sustained earnings coming from the business process outsourcing industry.

Fitch noted that general interest from foreign banks will be sustained by the positive environment even as competition in the banking sector remains strong. The debt watcher also anticipates a mid-teen loan growth next year especially since the nation’s credit growth has relaxed from 19.1 percent in 2014 to 12.6.

Fitch also said high loan growth could lead to credit excesses and could affect asset quality if not handled properly.

Moreover, profitability is seen to remain stable in 2016 brought on by higher-yielding consumer and middle-market loans are seen to counterbalance the ongoing competitive pressure on net interest margin.


BPO to Outpace IT Services

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Rising competition among outsourcing companies

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

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

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

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

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


BPO Firm Pledges to Invest More in PH

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Strengthened BPO partnerships with the Philippines

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

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

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

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


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.


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.


PPPs Needed by PH BPO to Stay Competitive

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Creating Public Private Partnerships (PPPs) would help the business process outsourcing (BPO) industry to stay competitive and continue to flourish. That is why Senator Edgardo Angara urged the Philippine government to speed up the process of improving ties with the BPO industry and academe to maintain its competitiveness as an ideal outsourcing destination.

Angara mentioned a recent World Bank report saying that the BPO industry of the Philippines will continue to grow, capitalizing on the improved skill level of available manpower.

�The study found that the industry can grow from $9 billion in annual revenues and approximately 500,000 direct employees today to $20 billion and 900,000 employees by 2016 if current conditions are sustained and with a lot of hard work,� said Oscar Sa�ez, CEO of the Business Processing Association of the Philippines (BPAP). However, he noted that the country can see a faster growth rate if the Private Public Partnership with the government will be strengthened. PPPs will pave the way for coordination between the industry and the academe in the goal of improving the number and quality of human resources.

Sa�ez also said that the industry is tapping other fields that require specialized skills. Angara said that if job requirements in areas such as IT, medical, and legal will not be met by highly skilled workers, the industry may �lose its momentum� and fail to establish a strong non-voice or knowledge-based sector.


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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.


Report Predicts Rise in Global Outsourcing Contracts in 2010

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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.


India and RP unite vs. EU, US anti-outsourcing policies

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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.


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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.



BPO Continues to Drive Investment Growth in PH

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

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

Growth in business process outsourcing intensifies demand for office space

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

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

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

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


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RP BPO targets $4 trillion Spanish-speaking market

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

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

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

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


Buyers Taking Slow Approach to Outsourcing

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Outsourcing Buyers Taking their time in Making Decisions

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

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

Other key findings include:

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



Aquino Admin Allocates P62M for IT-BPO Industry

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PH President Benigno Aquino III pledged support to the country's IT-BPO industry by allocating P62 million through a public-private partnership between the Business Processing Association of the Philippines (BPAP) and the Commission on Information and Communications Technology (CICT).

Pres. Aquino said the industry was able to reach over P9 billion in revenues and had employed about 550,000 workers in 2009. "You have contributed 10.2 percent of the growth of the Services sector, which comprises about 49.5 percent of the country's Gross Domestic Product (GDP). In the second quarter of 2010, you have already contributed 3.2 percent to the GDP growth," Aquino said. He added that by 2020, the industry can generate revenues of as much as US$100 billion. This accounts for about 20 percent of the global market share.

The Philippines was named Offshoring Destination of the Year three times by UK body National Outsourcing Association.


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PH BPO Firms Urged to Adopt DOLE Good Practices Code

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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. ;


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.


UK Outsourcing Deals Climb 65 Percent

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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).


Nasscom Outlines Ethical Practices for Indian IT-BPO

by @ News Feed

NASSCOM Publishes Ethical Practices for Outsourcing

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

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

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



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. 


Social Media Advertising FAQ

by Rachel Dankof @

10 Top Questions about Advertising on Social Media It may be surprising to learn that advertising on Facebook has been around for nearly 15 years. Since their advertising platform launch in 2004, Facebook has made a ridiculous amount of changes…

The post Social Media Advertising FAQ appeared first on .

PH Outsourcing Revenues to Hit $16B

by @ News Feed

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

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

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

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


Advantages of Outsourcing SEO to an Agency

Advantages of Outsourcing SEO to an Agency

Business 2 Community

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…

PH IT-BPO Sector Remains Strong

by @ News Feed

The study and 2011-2016 IT-BPO Road Map commissioned by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) state that the Philippines' IT-BPO sector is on the right track and can be maximized to its full potential with an estimated 20% or higher annual growth rate.

Over 179 shared services executives in over 20 IT-BPO and shared services sectors participated in the study and stated that extra efforts should be given in promoting or marketing the services of the IT-BPO industry to probable candidates and investors. They also believe that the local government plays an important role in achieving the industry's goals.

Also, there are signs of a drastic shift from low-value, voice-based process services to high-value, knowledge-based services. However, respondents say that there's still an issue in the manpower-supply-side due to poor internal visibility of the sector to potential employees and their influencers. This is believed to cause setbacks in attracting clients and investors, specifically in non-traditional outsourcing services.

Respondents also believed that comprehensive marketing communications initiatives should be instigated by the IT-BPO sector to make it more attractive to potential candidates and investors. The sector should be able to showcase clearly the kinds of jobs it offers, and the career opportunities available to students by means of working with the academe.

The survey results and the plans indicated in the IT-BPO Road Map are congruent with the survey results, stating that IT-BPO should be branded more effectively to increase awareness for local potential candidates and their influencers. This group includes students, parents, teachers, and other professionals in other industries.

Also, the sector should be able to create a positive image and promote the Philippines as a dynamic BPO provider that excels not only in voice-based work but also in complex, knowledge-intensive services. This, however, should be prioritized as India is vigorously working on besting in non-voice services, and recognizes the Philippines as a tough competition when it comes to providing voice-based services.


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.


Expert: Exports Fuel PH Economy

by @ News Feed

Michael Spencer, Chief Economist for Asia at Deutsche Bank AG, said the Philippines is the country in Asia with the strongest-performing economy, propelled by improved exports.

A 6.4 percent growth rate was seen for the local economy during Q1 this year, a strong comeback from a measly 3.7 percent growth rate last year. The Philippines comes next to China which posted 8.1 percent growth.

Meanwhile, data from the National Statistics Office (NSO) showed that during Q1 and Q2 this year, total exports reached $26.8 million, which is 7.68 percent more from last year's $24.8 million.

Spencer noted that the Philippines remained resilient towards weak global demands and reinforced exports by targeting Japan, which is also the country's top market at 17.8 percent of the total exports.

An 11 percent growth was seen for this year's first half in export shipments to Japan, from $4.29 billion in 2011 to $4.77 billion this year. This can be attributed to outsourcing to the Philippines after the earthquake in Japan.

For 2011, Japan was the largest market of the Philippines for product exports, accounting for 18.5 percent or $8.86 billion. The US followed suit at 14.8 percent, China at 12.7 percent, Singapore at 8.92 percent, and Hong Kong at 7.71 percent.


Forrester: Security Outsourcing may be Newest Trend in 2010

by @ News Feed

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

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

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


No Slowing Down for PH Real Estate

by @ News Feed

For the coming year, the local real estate sector is seen to remain strong, according to CBRE Philippines, a real estate consultancy company.

Rick Santos, the organization's chairman said this is the best break the industry has seen for the past two decades, with the constant growth and success. Moreover, he said there's no problem in finding residential and leisure property buyers. The challenge, according to him, is to maintain the industry's success.

Meanwhile, the vast growth of the business process outsourcing (BPO) industry of the Philippines, which is similar to India's BPO success during the early 90s, largely contributes to the Philippines' advantageous position in Southeast Asia for the office and commercial industry.

Santos also noted that apart from the country being the global leader for voice processes and second for non-voice services, other areas can be reinforced for the industry's growth. These include software and web graphics development, information technology and engineering services, as well as healthcare BPO. A growth rate of 10-15 percent is also predicted for the sector in 2016.

Some of the factors that make the country a feasible outsourcing provider in Asia include the large pool of skilled workforce, affordable leasing rates for properties, among others.


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.


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.

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.



Outsourcing Buyers Choose Cost Savings over IT Security

by @ News Feed

Cost Still Key Driver of Outsourcing

IT managers are concerned about IT security, but companies still opt for providers that offer low-cost services even if they cannot prove their IT security credentials.

According to the YouGov survey commissioned by the NCC Group, 20% of survey participants said the IT processes that they outsource are less secure compared to those done in-house. On a separate PA International Outsourcing Survey 2009, 31% said they will outsource more IT processes over the next year. These results show that low costs outweigh IT security when it comes to outsourcing.

“The security industry and IT managers are calling for suppliers to prove they are secure, yet companies choosing to outsource business critical systems simply aren’t asking the right questions, and are putting business critical functions at risk as a result,“ said John Redeyoff, head of 365 Assured, a new security and performance certification program from NCC Group. “Businesses that fail to check their suppliers’ credentials, choosing cost and convenience over security, are investing in false economy.”  


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.


Davao City Sees BPO Potential in Chat Nursing

by @ News Feed

ICT players in Davao City are eyeing the chat nursing industry, saying that this will be beneficial for nurses and nursing graduates in the city. Chat nurses are responsible for providing health-related customer support. Individuals can just call through a health desk call center for medical advice or general assessment instead of going to a hospital. With chat nursing, big companies are able to lower employee health costs.

While several things still need to be considered such as looking for a business model suitable for chat nursing and the kind of certification for chat nurses, Lisabel Holganza, President of ICT Davao, said that chat nursing has huge potential. She added that some firms are already discussing the business.

On the other hand, Holganza said that the medical transcription industry will benefit from the US healthcare reform as this will result to more work that can be outsourced. This includes medical coding and billing and insurance processing.


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.


SEO For WordPress Websites: The Most Popular CMS For SEO

by admin @ SEO Brothers

There’s no doubt that WordPress is one of the highest recommended CMS for SEO Maybe that’s why it’s so gravy! With WordPress powering about 23% of the websites on the web today, it’s no wonder that SEO for WordPress is such a popular topic. If I had to bet, I would say 90% of SEO…

The post SEO For WordPress Websites: The Most Popular CMS For SEO appeared first on SEO Brothers.

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”.


Global Outsourcing Industry Posts Higher Revenues in 2014

by @ News Feed

Global outsourcing industry posts higher revenues

United Nations Conference on Trade and Development, and the World Trade Organization recently revealed their assessment on the performance of the global outsourcing industry. It was found that during the third quarter of last year, revenues amounted to $7.1 billion, which is 11.8 percent higher than the amount posted during the same period in 2013. The growth seen in Q3 2014 is also higher than the $4.7 billion posted during the first quarter, and $6.1 billion in the second quarter.

According to Jose Mari P. Mercado, CEO and President of the IT & Business Process Association of the Philippines (IBPAP), the country is on track in achieving the $25-billion revenue target indicated in the 2016 IT-BPO Road Map. Factors such as the number of new locators and expansion of existing outsourcing firms are believed to be the growth drivers.

On the other hand, Senen M. Perlada, Director of the Department of Trade and Industry Export Marketing Bureau, believes that the overall service exports, which cover non-commercial services, will not reach the 2014 government revenue target of 12-12.2 percent or $24.4 billion to $24.81 billion. However, the increasing number of road shows, favorable exchange rate, and sustained interest from potential investors contributed to the positive outlook for service exports in 2015.


SEO FAQs – Get Started on Small Business SEO

by Dana Flannery @ Talk About Creative

SEO FAQs – Where To Begin SEO is confusing, particularly for beginners, so knowing what is SEO and where to begin is all about learning the basics.  This is our SEO FAQs guide built from 8 years of answering client questions! Start with an SEO friendly website, learn keyword research and the importance of keyword …
Read More

The post SEO FAQs – Get Started on Small Business SEO appeared first on Talk About Creative.

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). 


Advisory Firm Identifies Key Challenges in Multisourcing

by @ News Feed

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

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


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.





Here are 15 (Quick) audit tips when you’re doing SEO for your website

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

  These search engine optimization audit tips will help you to keep your site on top among your competitors. An SEO audit will help you to find problematic areas of your website, so you can correct them and make it more user and search engine friendly. Website SEO Audit Tips #1) Page Titles and Meta[...]

The post Here are 15 (Quick) audit tips when you’re doing SEO for your website appeared first on SEO India - Top Indian SEO Experts Company with Proven Results.

BPOs Keep a Close Eye on Strong PH Peso

by @ News Feed

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

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

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


UK SMEs Prefer IT Freelancers to Full-time Staff

by @ News Feed

Businesses more likely to hire IT freelancers

In a research conducted by online firm, it was found out that small businesses are more likely to avail services of IT freelancers than hire full-time employees.

Out of 360 SME owners who took part in the research, 61 percent said they plan to invest more in IT and web technology. Thirty-eight percent said they intend to increase investment in utilizing IT freelancers. Only 18 percents intend to recruit full-time staff. Also, 43 percent believe that IT is something for freelancers and “not as supplements to in-house IT professionals”.

“The last decade has seen a boom in remote freelance working, facilitated by the internet. This has been led by the IT industry, which lends itself to freelancing,” said Xenios Thrasyvoulou, chief executive of


Submitshop Announces Website Relaunch

by Aprajita Kohli @ SubmitShop

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 […]

The post Submitshop Announces Website Relaunch appeared first on SubmitShop.

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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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…

The post New Site Ranking appeared first on Sacramento Web Design.

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.


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.


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.


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.  


RP BPO Expects $11B Earnings, over 1 Million Workers

by @ News Feed

10th Year of Call Center Operations in the Philippines

For the 10th year of business process outsourcing (BPO) in the country, the sector eyes earnings of at least $11 billion and over one million workers employed in the industry.

According to TeleDevelopment Services (TDS) President Jon Kaplan, 2010 is a big year for the industry as it marks the 10th anniversary of call centers in the country. “As we approach this milestone, it is necessary to evaluate and carefully map our plans for our continued development. We need to resolve training challenges for a more specialized workforce to addressing the increasing demand for high-value and value-added services,” Kaplan said.

He added that outsourcing higher-value services (knowledge process outsourcing or KPO) will be the next revenue earner, so BPO players must be ready to meet the demand and challenges in the next decade.


PH Seen to become Top Healthcare Outsourcing Destination

by @ News Feed

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.


Tips to Find A High Quality SEO Reseller Program

by admin @ EZ Rankings

Many companies aim at doing their work themselves. It does seem like an excellent idea in the beginning. You feel like doing everything even reselling your SEO. However, there are certain things you must keep in mind that it is a job that requires full-time of the day. It could also be less effective if it is done alone and lack of motivation can result in you giving up and getting back to the widgets. For the development of an SEO presence that is stable enough, you have to outsource the services of the SEO. Hence to begin there are certain criteria that you should keep in mind and they are following. Result Standard Any SEO Reseller Program you go […]

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.


BPAP, CHEd Form Partnership to Improve Talent Supply

by @ News Feed

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

Improvement in HR processes to help achieve IT-BPO goals

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

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

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


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by Alexander Felsch @ NYC SEO Authority

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BPO Earnings to Surpass OFW Remittances

by @ News Feed

According to a Monetary Board executive, in five years’ time, the revenues from the business process outsourcing (BPO) sector will exceed remittances from overseas Filipino workers (OFWs).

Earnings from the BPO sector to surpass OFW remittances

During the 39th Philippine Business Conference Expo, former Socioeconomic Planning Secretary Felipe Medalla said with the robust state of the local BPO sector worth $16 billion, it will surpass OFW remittances which are currently worth around $24 billion. The BPO sector grows 10 percent a year and is expected to be worth $20 billion next year.

 The rise of BPO has also created a domino effect for employment and demand for properties. However, Medalla said talent shortage is still a challenge that the Philippines has yet to overcome.

Meanwhile, cash remittances from OFWs increased 6.8 percent during the first eight months of this year which amounts to $1.9 billion. Year-on-year, it increased by 5.9 percent.


PH BPO to Continue Driving Demand for Real Estate

by @ News Feed

According to property consultancy agency Jones Lang LaSalle (JLL), the upbeat growth momentum of the business process outsourcing (BPO) industry in the Philippines continues to drive local demand for office and residential spaces.
JLL Local Director Phillip Anonuevo cited the data from the IT and Business Process Association of the Philippines (ITBPAP) which states that the headcount for full-time BPO workers is expected to reach 1.3 million this year, which is set to take up 900 square meters of office space.

For this year, the total available office space is 745,390 sqm, and 68 percent or 506,574 sqm are already leased out, while 63 percent of the demand is from the BPO industry.
The country’s “new wave cities” such as Tuguegarao, Antipolo, Kalibo, Iloilo, Bohol, Davao, Puerto Princesa, Cavite, Balanga, Subic, and Clark could also benefit from the demand of office spaces as investors such as call center companies go where people are.
Apart from the BPO industry, remittances from Filipinos working abroad are also sustaining the demand for residential units.
Residential condominium units in Metro Manila totaled 216,830 sq.m., majority of which are near business districts where most BPOs are located.


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.


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PH BPO to Drive Real Estate Market Growth this Year

by @ News Feed

Philippine Outsourcing Sector Key Market for Real Estate

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

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

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

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

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



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.


Indian IT-BPO Firms Facing Major Employee Attrition

by @ News Feed

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

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

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


Asia-Pacific Office Leasing Accelerates in Q2

by @ News Feed

A research report done by global property research consultancy firm Jones Lang Lasalle (JLL) showed that leasing volumes in the Asia-Pacific region during the second quarter of this year are 40 percent higher than the same period last year.

The region’s real estate industry continues to accelerate as market activity increased during the second quarter. The key factor identified is the sharp growth in office leasing.

JLL said growth is seen in various occupier types with technology as an active segment, and IT outsourcing and e-commerce pushing office space take-up in many markets.

More than half (60 percent) of the total leasing deals are seen in Delhi and Bangalore, India with over 600,000 square meters prepared for new deals. As for Shanghai, China, the region posted its strongest year of office space take-up on record.

Improvements and consolidation to newer quality buildings, and IT operations are also boosting office space occupancy in Tokyo, Japan.

As for Southeast Asia, activity in the property sector was mediocre during the same quarter except for Manila, Philippines because of the high demand for offshoring and outsourcing.

The study also noted that Grade A office supply in Asia-Pacific, particularly China and India, rose by 120 percent year-on-year to 1.6 million square meters in this year’s second quarter.

Also, as more buildings and projects are being launched, vacancies in Beijing, Tokyo, Manila, Kuala Lumpur, and Jakarta increased.


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.


PH Seen to Dominate Global Healthcare Outsourcing this Year

by @ News Feed

According to Information and Communications Technology Office (ICTO) Deputy Executive Director Alejandro Melchor, with the large number of licensed healthcare professionals like nurses and recent triumph in the call center sector, the Philippines is predicted to become one of the prime providers of healthcare information management services. He added that for the country to remain competitive, it should tap “high-value-chain” services.

Targeted healthcare sectors

ICTO identifies healthcare information management outsourcing as one of the four targeted areas for growth. Other viable segments are finance and accounting, HR outsourcing, and animation and creative process outsourcing.
Not only does the healthcare sector focus on basic back-office medical transcription, it also includes top tier services like clinical coding, disease management, revenue cycle management, and pharmaceutical benefits management.

Melchor said healthcare information outsourcing is a favourable sector, and the country is definitely the primary outsourcing location of choice. He added that the recently sanctioned landmark healthcare law “Patient Protection and Affordable Care Act” by the Obama government, and the steady increase of senior citizens in the United States provide opportunities for the country’s outsourcing industry.  Furthermore, the US needs $530 billion dollars-worth of services to apply the measure - definitely a huge market for outsourcing destinations like the Philippines.

ICTO is hoping to team up with the Business Processing Association Philippines (BPAP) and the Healthcare Information Management Outsourcing Association of the Philippines in creating strategies for the four targeted sectors.

Department of Science and Technology Secretary Mario Montejo said they plan to focus on the outsourcing sectors for 2012. He added that the country needs to produce better graduates by means of partnering with other educational organizations.

BPAP predicts that the country will reach $25 billion in export revenues by 2016 and provide 1.3 million direct and 3.2 million indirect jobs.


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

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

Find and Convert

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

Firms Prefer IT Functions to Stay In-house

by @ News Feed

Outsourced IT Operations to be Brought Back In-house

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

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

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

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

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


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.



PH Economic Growth Helps Govt Reach Millennium Development Goals

by @ News Feed

The Philippines on track in Reaching Millenium Development Goals

During his speech at the Economic Journalist Association of the Philippines (EJAP) last Saturday, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said as the economy of the Philippines continues to develop, the local government has been able to achieve its Millennium Development Goals (MDG). According to Guinigundo, more Filipinos now have jobs and are able to sustain their daily needs.

He then pointed out that this target is the first item indicated in the government’s MDG. Moreover, he stated that the certification program under the Technical Education and Skills Development Authority (TESDA), which aims to assist those who want to work for the government, boosts their chances to get employed not only locally, but abroad as well.
For domestic opportunities, he cited the business process outsourcing (BPO) sector as a key provider of jobs in the country. Guinigundo added that the sector has contributed immensely to the growth of the country’s gross domestic product (GDP). The BPO sector is also a crucial factor in the growth of the food industry. Because of the increased purchasing power of Filipinos, restaurants are popping up where the BPO hubs are.


BPO Revenues Seen to Surpass Remittances in 2 Years

by @ News Feed

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

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

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

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

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


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.


IT Outsourcing to Continue in Australia

by @ News Feed

According to the survey executed by benchmarking and sourcing consultancy ITNewcom, out of 60 executives from top IT clients in Australia, 75 percent are already outsourcing some of their software and 85 percent outsource their IT infrastructure.

Scott Stewart, Research Director at ITNewcom, said the figures are anticipated to increase as 43 percent of the respondents said they will be going to outsource more application processes and 40 percent are planning to outsource more IT infrastructure-related processes.

Meanwhile, Stewart said only 29 percent of firms belonging to the private sector and 22 percent from the public sector will be retaining their current outsourcing setup. He added that the public sector is even considering offshoring. Also, an ITNewcom report noted that 39 percent of public sector agencies are looking into offshoring their application requirements.


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.


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

by @ News Feed

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

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

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


Clients Predicted to Spend More in IT next Year

by @ News Feed

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

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

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

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

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


Global BPO Industry Predicted to Reach $280.7B by 2017

by @ News Feed

In a report by Global Business Analysts Inc. (GIA), it is predicted that the global business process outsourcing (BPO) industry will reach US$280.7 billion by 2017. 

Business owners opted to outsource non-core functions to deal with the impact of the global financial crisis. This resulted to high outsourcing activity in destinations such as India and China.

Outsourcing has become a solution for companies, especially those in the US and UK, to resolve problems like lack of talent and the increasing operational expenses. Aside from cost reduction, outsourcing to service providers enables business owners to adapt to constant changes in the economy, make use of new technologies, and benefit from the emergence of newer media.

The market research entitled "Business Process Outsourcing (BPO): A Global Strategic Business Report" also states that finance and accounting outsourcing will likely post the fastest growth rate, to be driven by companies that need to keep costs aligned and stay competitive. Organizations in the fields of financial services, manufacturing, travel, as well as logistics are expected to avail of finance and accounting outsourcing services. 

GIA is a leading market research publisher, covering market and technology trends worldwide. 


PH Senator Defends Data Privacy Act amidst Journalists' Woes

by @ News Feed

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].


Submarine Cable System to Boost PH Competitiveness

by @ News Feed

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

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

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

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


SEO Outsourcing - Critical Questions about Pros and Cons of SEO

SEO Outsourcing - Critical Questions about Pros and Cons of SEO


SEO Outsourcing is the outsourcing of services related to search engine optimization, including on-page optimization. SEO Outsource can be ...

US Firms to Produce more Jobs for Filipinos

by @ News Feed

US companies such as American International Group Inc. (AIG) in New York and Capital One Financial Corp. in Virginia are expected to start back office operations in the Philippines, creating more job opportunities for Filipinos.

US Companies to Start Outsourcing Back Office in PH

According to Pasig City Representative Roman Romulo, the arrival of these companies is a great opportunity for Filipinos who are currently looking for jobs. Moreover, he said it will contribute to the growth of the business process management (BPM) industry of the country as Western businesses prefer the Philippines because of its ability to drive innovation and highly creative workforce.     

Romulo is the main supporter of the BPM industry and is the House higher and technical education committee chairman. He also co-authored the Data Privacy Act which aims to ensure the security and confidentiality of personal details of clients.


Outsourcing Sector to Benefit from UK Spending Cuts

by @ News Feed

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

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

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


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.


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.




Google Ignores Geo Meta Tags in Regular Search Results

by Jennifer Slegg @ The SEM Post

Geo meta tags are a meta tag that many SEOs are unfamiliar with, unless they work in local SEO or with sites with a multiple geolocations.  But does Google use those meta tags, especially in leui of better signals, such as hreflag? The meta tags in question, are the geo location meta tags: <meta name=”geo.position” […]

The post Google Ignores Geo Meta Tags in Regular Search Results appeared first on The SEM Post.

Concerns CIOs Face with EHR Providers

by @ News Feed

Challenges in Outsourcing Electronic Health Records

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

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

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

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


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.


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.






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.


BPO Leads Office Space Occupancy in Manila

by @ News Feed

According to Pinnacle Real Estate Consulting Services Inc., a firm that specializes in properties for buyers, lenders, and investors, developers are working double-time to sustain office demand in popular business districts in the Philippines. This is because majority of occupants, specifically from the business process outsourcing (BPO) sector, are rapidly leasing offices.

Meanwhile, office real estate developers are predicted to achieve 94-98 percent occupancy rate because of the support from the BPO sector.

The firm's report also stated that builders and investors are considering renovating old buildings, and reintroduce these to the market.

At present, the premier office locations are still Bonifacio Global City (BGC) and the Makati Central Business District (CBD). Taguig City, Ortigas Center, and Quezon City, on the other hand, are feasible options.

Pinnacle noted that office rent in BGC rose as demand has gone to an overdrive. As for Makati, investors are still keen on starting operations since majority of larger companies, as well as call centers, operate in the area. Moreover, the firm said it is beneficial for BGC and CBD to be near each other so foreign locators will not have a hard time starting up integrated operations.


Everest Group Sees Slower Outsourcing Activity

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Research firm Everest Group recently found out that the volume of new IT and business process outsourcing (BPO) contracts dipped 20 percent from 516 during the second quarter in 2011 to 411, same quarter this year.  

Salil Dani, Practice Director for global sourcing at Everest Group, said the market is continuously growing but the rate is slowing down. Moreover, the drop in the number of outsourcing contracts was said to be caused by the debt crisis in Europe and other economic issues worldwide. Dani noted that majority of IT spending in Europe are at a standstill.
Dani added that businesses based in the US are now uncomfortable with outsourcing due to the recent events regarding the anti-outsourcing bill. On the other hand, some US companies are starting to subcontract locally, but are still fewer in number since outsourcing locally does not offer the same benefits that destinations such as India and the Philippines can provide in terms of costs and availability of talent.


Cebu Seen as an Alternative Location for BPOs

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Data from real estate company CBRE Philippines Metro Cebu Marketreview report indicated that business process outsourcing (BPO) companies are strongly considering Cebu as an alternative business hub, and are in fact expanding and establishing operations in the province.

In the report, Cebu is being considered because of its considerably lower wages, utilities, and rent, making it a sensible choice for outsourcing firms that are looking to reduce operating costs.

Apart from lower electricity and water rates, Cebu's minimum wage for non-agricultural workers is P282-P327, a far cry from the P419-P456 rate in Metro Manila.
CBRE cited the Cebu Business Park as the most competitive location because office rental rates in the hub are 20 percent lower compared to rates in Quezon City, and 78 percent lower than Makati's rates.

The real estate company also found that during the first half of this year, the demand and supply for the office market in Cebu increased, and six new office buildings were recently opened. With the healthy demand from BPOs, the report stated that developers are confident in the market.



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.


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RP Economy to Hit Growth Goal through BPO, Remittances

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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 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.


BPOs now outsourcing facilities management

by @ News Feed

A study by Jones Lang Lasalle on eight leading global organizations in the business process outsourcing (BPO) industry has revealed BPO companies are, themselves, outsourcing. In the Philippines, this is practiced in areas such as housekeeping, security maintenance, and car fleet management.

According to head of Integrated Facilities Management in Southeast Asia, Marina Krishnan, companies are outsourcing due to the high �cost of a seat� in these areas. In addition to saving on costs for maintaining administration, outsourcing companies are able to avail of expertise and innovations that are not their core competency:

�Our clients in the Philippines � like a global pioneer in outsourced solutions and technology services and a leading financial services company � have outsourced management of services like reception and mail room services, as well as critical facilities like data services, networking and telephone systems that support around-the-clock operations,� commented Krishnan.

Krishnan  further added that �the aim of facilities management is to maximize opportunities for a facilities portfolio. This includes engaging in proactive analysis, contingency planning and preventative maintenance programs to reduce facility downtime and mitigate risks.�


Rent for Office Spaces still on the Rise

by @ News Feed

The Philippines BPO Office Demand Rises

According to consultancy firm CBRE Philippines, rents for business process outsourcing (BPO) and traditional offices continue to rise, due to strong corporate expansionary demand that typically affects leasing requirements. Rick M. Santos, chairman and chief executive of CBRE Philippines, said in a statement, “We believe this is just the start of the projected up-cycle for the Philippine property market as determined by real demand and strong macroeconomic fundamentals.”

Multinational and local companies’ high demand for office space in Makati and Ortigas is believed to support the increase in rental levels.

Office locations in BPO-dominant business districts of Alabang and Quezon City experience a more aggressive increase in office rents. From January to March, rent for office spaces in Makati increased 2.65% or P809 per square meter, whereas in Ortigas, rent increased to P554 per sq. m.

Monthly office rent in Alabang surged to P501 per sq. m. and P516 per sq. m. in Quezon City. Meanwhile, rates in Bonifacio Global City and Mckinley also grew with an average monthly rent of P698 per sq. m.

Mr. Santos added that because of supply pressures, office vacancy rates decreased even thought rents continue to rise. The most noticeable drop in vacancy rates is in the Fort Bonifacio district which is now at 1.48%, while Alabang is at 3.08%, Quezon City at 2.79%, Ortigas at 2.96%, and Makati at 4.6%.


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.


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.


IT Outsourcing Grows as Firms Look for Added Value

by @ News Feed

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

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

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


Report Reveals Growth in IT Outsourcing

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IT research company Computer Economics released a new report called "IT Outsourcing Statistics 2015/16" where it was discovered that spending on IT outsourcing has grown consistently with the IT operational budgets across the globe.

The report also found that companies utilize outsourcing to reduce costs, preserve capital, improve operational flexibility, reduce management overhead or rapidly deploy new capabilities, and increase service levels.

The survey conducted on 132 IT organizations in the US and Canada also declared that outsourcing is used to boost in-house operations without having to share long-term risks with the provider, or having to spend on large capital investments. The entire operation is anchored on the decision of IT executives, who are also expected to control and evaluate the process so that they are ensured that they will reach the tactical and strategic objectives.

Growth in IT outsourcing spending

The study showed that large companies that have IT operating budgets of $20 million and above are leading the growth trend as they are seen spending 7.8 percent of their IT budgets on outsourcing. The top processes outsourced are help desk and web/e-commerce functions.

Meanwhile, cost-reducing opportunities are seen in disaster recovery and desktop support segments of the IT sector, and outsourcing IT security and web functions has potential in improving a company’s overall service.

Software-as-a-Service has also grown rapidly wherein 65 percent of the respondents said they outsource application hosting and is the most outsourced function found in the report. Organizations also indicated that they are planning to increase the amount of work they are outsourcing.


Regulations Push AU, NZ CIOs to Outsource

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NZ and AU CIOs Prefer to Outsource App Development and Testing

With the continuous changes in legislation and industry standards when it comes to an organization’s mainframe applications, it was found that almost  one-third of CIOs in Australia and New Zealand prefer to outsource processes such as application development and testing.
A study commissioned by Micro Focus shows that in all development and testing markets, the US takes the lion’s share with 62 percent, followed by the UK with 40 percent. More than 500 respondents were from around the world, while 50 were from Australia and New Zealand.

Regarding the compliance issues faced by firms in Australia and New Zealand, 50 percent said it is very likely that the original knowledge of their mainframe and supporting data structure are no longer in the organization.

Furthermore, almost three quarters (74%) declared that documentation on their processes is incomplete.

The study also shows that 49 percent of ANZ CIOs who are aiming to comply with new regulations contractually pass legal responsibility for data security and privacy requirements to the outsourcing providers, while18 percent said they are planning to do the same.

Derek Britton, Director of Product Marketing at Micro Focus, said organizations are having a hard time addressing compliance issues because of unclear records. In fact, 23 percent of CIOs have indicated that they are not able to change application compliance internally because their records are not organized.


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CBRE: PH BPO still a Key Driver of Investment Growth

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PH BPO Sector Continues to Fuel Investment growth

Renowned commercial real estate firm CB Richard Ellis Philippines, Inc. (CBRE) said the business process outsourcing (BPO) sector of the Philippines is still a major contributor to the growth of investments in the Philippines.

During a forum held in Makati, John Corpus, Corporate Agency and Brokerage Director at CBRE, said the Philippines has overtaken India in providing voice services to information technology firms and Western banks. Moreover, he explained that for every BPO job, 2.5 more jobs are produced in administration, construction, and services. This also goes for the office market where the outsourcing sector is likewise cited as a growth driver. Office occupancy in major business districts peaked during the fourth quarter of 2014.

CBRE also pointed out that the rates of Prime and Grade A buildings in Metro Manila slipped from 2.53 to 2.13 percent quarter-on-quarter.

Furthermore, CBRE Philippines Chairman and CEO Rick Santos said even with the increase in office property rates throughout CBDs, investors are willing to pay for the quality and value in those areas.

Also, during last year’s fourth quarter, the total office occupancy rate in Makati, Fort Bonifacio, Alabang, Quezon City, and Ortigas is said to be at 97.87 percent.


A.T.Kearney: PH BPO Ranking Falls to No. 9

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The Philippines dropped two places from no. 7 to no. 9 in the Global Services Location Index (GSLI) for 2011 by management consulting firm A.T. Kearney. GSLI lists down the countries which are attractive offshore outsourcing destinations.

Be that as it may, A.T. Kearney said the country remains a key outsourcing player with workforce consisting of about 500,000 workers and $7.2 billion revenues generated in 2009. It is still strong when it comes to call center work. �The Philippines, an early entrant into the service sector, is also relatively well-rounded. It has had more than a decade to hone its capabilities, and by now has moved into ITO [information technology outsourcing] from being primarily a contact-center hub.�              

India got the top spot, followed by China and Malaysia, mainly for talent availability and low costs in these destinations. Other countries which made it to the top 10 are Egypt, Indonesia, Mexico, Thailand, Vietnam, and Chile.


Global Data Processing & Outsourcing Services Market Predicted to Grow

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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.


Indian Outsourcing Body Airs Concern over US Visa Fee Increase Bill

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US visa fee increase for IT workers criticized

The National Association of Software and Services Companies (NASSCOM) criticized the passage of a US bill stating that visa fees for IT workers coming to the US will increase.

Already signed by President Barack Obama, the law is created to tighten security measures at the Mexican border following the immigration concerns in the US. On the side of the Indian outsourcing industry, NASSCOM President Som Mittal said “the US policy in question is sending a signal that is loud and clear that foreign persons are not welcome to the country.”

Many US companies outsource processes to India, and this law will negatively affect the outsourcing industry specifically those Indian workers who are transferred to the US.



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

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MicroSourcing Talent Acquisition Team Joins Career Fair

The Manpower Acquisition Department of MicroSourcing participated in the recently concluded 2nd Job Fest and Career Fair 2011. This event was held last May 9-10 at the Glorietta Activity Center in Makati City.

Numerous companies from the business process outsourcing sector and other industries took part in the event, offering various types of jobs including marketing, accounting, customer service, clerical work, retail, administrative, etc. Moreover, different career talks and activities were done during the event. Recruitment Specialist Dan Katipunan provided some job hunting tips to help applicants in looking for work that is suitable for their knowledge and skill set.

Joining different job fairs is one of the major initiatives of the department to attract fresh graduates and unemployed individuals to join the MicroSourcing workforce and increase company awareness. According to Mr. Katipunan, the department is planning to participate in other job fairs to find new talent needed by clients of the company.


PH BPO Earnings 15% Higher in 2013

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PH BPO On Track in Hitting 2016 Targets

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

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

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

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

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

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

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

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

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


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.


IBPAP Names New Set of 10 Next Wave Cities

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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.


IT Outsourcing Market Projected to Reach $288B this Year

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IT outsourcing spending to increase

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

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

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

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

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


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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.


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BPO Leaders Tap Bacolod for 'Knowledge Process Outsourcing'

by @ News Feed

Bacolod City is eyed by leaders of the local information technology (IT) sector to follow Cebu City as one of the country's hubs of knowledge process outsourcing (KPO).

According to Joey Bondoc, research manager of Colliers International, a global real estate services company, "KPO companies offer higher value outsourcing services such as medical transcription or health information management (HIM), software engineering, and finance and accounting."

Colliers reported that outside Metro Manila, Cebu remains to be the largest and most practical choice for KPO firms due to its diverse and skilled labor pool.

Jocelle Batapa-Sigue, executive director of Bacolod-Negros Occidental Federation for ICT (BNeFIT), expressed that Bacolod City is primed for these high-value KPO services, especially HIM and software development.

"After having been declared as Center of Excellence for business process outsourcing (BPO) especially in contact center services in 2013, BNeFIT, in collaboration with the city and provincial governments has developed strategies to target three high-value areas: HIM, software development and creative processes like game development and animation," Batapa-Sigue said.

Road to Knowledge Process Outsourcing

She cited five important points in order for the city to become a fully-realized KPO key city.

  1. A solid marketing program. As per Batapa-Sigue, most investment leaders concentrate all marketing efforts on Manila. She believes that it’s about time these leaders consult with local stakeholders and carefully plan marketing strategies that accurately understands and capitalizes the strengths and talents of each city in the countryside.
  2. Reinforced incentives. "We also need to beef up our roster of fiscal and non-fiscal incentives for information and communications technology (ICT) companies." Incentives to ICT companies within the Philippine Export Zone Authority (PEZA) that are at or above par with other countries will help jobs and investments to grow steadily. 
  3. Industry-specific certifications and training. Batapa-Sigue suggests that the national and local government should offer incentives that would encourage companies to improve and strengthen their industry-calibrated certification and training programs.
  4. Early development of creative and critical thinking skills. Batapa-Sigue also suggests that BNeFIT and the industry should collaborate with K-12 educators to hone the students’ creative and critical thinking skills at an early age.
  5. e-Readiness. One of the top priorities in promoting the progress of KPO in the countryside is to scale up e-Readiness. Bacolod City should make efforts in improving its efficiency in service delivery through the integration of ICT and data analytics, among many other new technologies.

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.


Health Insurers Seen to Outsource more IT Work

by @ News Feed

IT Outsourcing in the Health Insurance Sector

A survey done by Black Book revealed that the healthcare payer IT outsourcing market could grow by 40 percent in the next two years. Insurers plan to use outsourcing as a solution for the sudden, unexpected increase in expenses, but didn’t produce the expected results.

However, less than 10 percent of healthcare leaders who joined the survey are willing to subcontract IT functions outside US due to cyber security concerns. In fact, 75 percent of reporting health plans were very careful when it came to their outsourcing strategies, citing data breaches and possible cyberattacks can lead to unsafe operations.

Doug Brown, Managing Partner of Black Book Research Group, stated in the survey announcement that IT outsourcing clients in the health plan sector have been more cautious and are doing intensive research to safeguard data privacy and avoid security issues.

Insurers are said to be raising outsourcing budgets to 20 percent for next year for certain functions such as application support as well as desktop and help desk support. The survey also indicated that nearly 80 of participants said they are considering outsourcing in the next 12 months.

Other functions that health plans are planning to invest on are mobile applications, virtual care, and remote health monitoring. These processes are anticipated to create a demand for big data and analytics for population health initiatives.

Despite having a potential market in the population health management, FierceHealthPayer reports that healthcare providers are still unequipped with the necessary tools for IT administrative work and data gathering capabilities on patient populations.


Providers Predict Rapid Expansion in Global Outsourcing Industry

by @ News Feed

In a recent survey from Duke University's Offshoring Research Network and PricewaterhouseCoopers, service providers think that the demand for the services they offer is rapidly expanding so they are increasing their workforce and adding new service offerings.

Survey results show that 62 percent of 514 providers in 50 countries plan to offer more services. Also, many providers said they expect to start new contracts on IT and software development in the next 18-36 months.

India is still at the forefront when it comes to outsourcing, but new destinations are tapping the global market. "Growing competition has transformed the outsourcing industry into a global race for market share," said PwC Managing Director Dr. Charles Aird. "India's success as the world's back office has motivated other developing countries with well-educated and underemployed populations to seek to duplicate their experience."


MicroSourcing to Attend 2014 AHIMA Conference in San Diego

by @ News Feed

MicroSourcing to be represented in AHIMA Conference

Cary Weltken, MicroSourcing’s Sr. Vice-president - North America, will be representing the company at the 2014 AHIMA Conference. Many of MicroSourcing’s healthcare industry customers will be in attendance at the conference and it will be the perfect place to be able to discuss the wide range of healthcare support services that MicroSourcing offers. 
MicroSourcing’s Managed Operations model is the perfect fit for US healthcare companies who want to leverage the cost benefits and flexibility of having offshore operations but struggle with the choice between outsourcing their work to an offshore third party and establishing their own offshore subsidiary. MicroSourcing offers a solution which provides the perfect middle ground where we enable our clients to leverage our resources and expertise in the Philippines while retaining full operational control over their offshore operations. Operational control and ownership are key issues in the US healthcare industry where industry regulations and HIPAA compliance would make traditional offshore outsourcing a risky undertaking. The control you have through our Managed Operations model extends to every facet of your operation: 

  • Your Own People - You send us the skills requirements, we recruit the candidates, and you choose the ones you want to hire and set their salary.
  • Your Own Office Space - Dedicated to your operation with full access control
  • Your Own Processes & Policies - We will implement your processes and policies, procedures for IT and data security, compliance regulations, and any other aspect of your operations you want to customize.
  • Your Own Systems and Tools - We use your systems and tools. Many of our customers use a thin client environment, so the data never resides in the Philippines.
  • Your Own Company - We can help you incorporate and help manage your Philippine entity in case you want to directly employ your staff in the Philippines.

MicroSourcing has more than 500 employees working in the HIPAA-compliant managed operations of our US healthcare clients. The processes they run from the Philippines include chart acquisition, clinical encoding, payment follow-up, and payment posting.

If you would like to meet Cary at the conference, call or text him at 707-364-0775.

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Like most startups, Linux Academy is in a competitive industry. They offer hands-on online cloud training courses on topics like AWS, DevOps, Linux, OpenStack, and more. However, they compete against popular sites that have greater brand awareness because of the broad mix of course topics those sites offer. While the larger brands might have the benefit [...]

The post How Linux Academy Increased Organic Traffic 84% with Incremental SEO Improvements appeared first on Alexa Blog.

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.


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.


IT Budgets in Asia-Pacific Expected to Grow in 2012

by @ News Feed

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

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

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

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


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.


PH BPO Industry Growth to Reach 30% this Year

by @ News Feed

Global BPO is Growing Faster than other Industries

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

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

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

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

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




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.”


RP BPO Sector Expects Significant Growth in 12 Months

by @ News Feed

A survey conducted by the Business Processing Association of the Philippines (BPAP) and Outsource2Philippines (O2P) reveals that the business process outsourcing (BPO) sector of the country will see significant growth in the next 12 months.

Sixty-five percent of respondents are confident that their business will grow between six and 50 percent, while 15 percent believe their firms will see an even faster growth. Moreover, survey participants are looking forward to more improvements for the industry under the Aquino administration.

BPO companies are optimistic, but lack of qualified workers remains to be a major concern, and this is getting more and more critical as it will greatly affect the growth of the industry. In addition to this, the tight labor market for knowledge workers is another challenge, according to almost 50 percent of the survey respondents.


EU Introduces Updated Data Outsourcing Rules

by @ News Feed

In response to the changes in data management of businesses and for greater transparency, the European Commission had updated the standard contractual clauses on outsourcing data processing work outside the European Union.

Updated clauses on outsourcing data processing work

Under the updated clauses, outsourcing companies that provide personal data processing services to clients in EU should get a written consent first before subcontracting data processing work to another company. European market research firms that transfer data processing operations overseas such as in India will be affected by the updated rules.

“This updated version of the standard contractual clauses takes account of new business models and the growing trends to global processing and outsourcing. The updated standard contractual clauses ensure a balance between global business needs and protection of EU citizens’ personal data,” said Jacques Barrot, vice-president of the Commission.


Employee Retention still a Challenge in PH BPO

by @ News Feed

According to a research report initiated by the Department of Science and Technology-National Research Council of the Philippines (DOST-NRCP) last year, those who are employed in the business process outsourcing (BPO) industry of the country are generally happy with their lucrative jobs. However, they stated that their stint in the industry is not long-term because of health and social challenges.

Almost 700 BPO workers joined the "Health and Social Policy Issues of BPO Workers in the Philippines: Is Happiness at Work Attainable" survey conducted by researchers Nimfa Ogena and Soccoro Rodriguez. Fifty-one percent of the respondents were from Metro Manila, 21 percent from Cebu, 15 percent from Davao, and 13 percent from North Luzon.

Respondents from the BPO industry happy but planning to leave

Ogena pointed out that even if majority of the respondents are happy with their jobs in the BPO industry, a lot of them are planning to leave in the next 12 months. Most of the respondents are in the voice segment, while others are in the non-voice segment which includes software development, back office, medical transcription, and engineering.
Some of the survey questions covered issues such as health and well-being, happiness, and problems that need to be addressed by the local government.

When asked why they want to join the BPO industry, 77 percent said they want the high salary, 65 percent said they want to gain experience, and 64 percent said it’s because of the benefits package. 

As for the health aspect, the study revealed that 50 percent were of "average health" and 25 percent were "healthier than average".

The researchers sought the assistance of BPO supervisors in the selected test sites so they could validate the online responses of employees properly.


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.


PH Real Estate to Retain Growth Streak in 2015

by @ News Feed

According to Claro Cordero, head of research and consulting at real estate consultancy firm Jones Lang LaSalle (JLL), the demand in the real estate market will continue to thrive due to the likely growth in the outsourcing sector and the continuous inflow of remittances from Filipinos who are working abroad.

Megaworld Corp. takes the lion’s share of the real estate market accounting for 34,000 units, SM with 28,600 units, and DMCI with 21,700 units. As for sales take-up across all property segments, Ayala Land Inc. posted the largest value with P80 billion, and Megaworld took the second spot with P70 billion. The third spot was claimed by Vista Land with a total value of P39 billion.

This year, the biggest office space occupancy is accounted for by the business process outsourcing (BPO) sector - taking up more than 50-60 percent. The information technology sector is at the second spot with 11 percent of the office take-up.

Shiela Lobien, head of leasing of JLL Philippines, said nearly 180,000 square meters have been leased out this year. Their biggest transaction was a 51,500-sqm lease by a multinational BPO at Bonifacio Global City (BGC). She noted that BGC is a feasible choice for BPO companies because of its proximity to key business districts and the availability of infrastructure needed by BPO operations.

The executive added that BPO companies are not as affected by economic and political challenges compared to businesses in other industries, and the BPO sector will sustain the demand for office space in popular business hubs all over the country.


Outsourcing Experts Seek more Cooperation

by @ News Feed

Global Outsourcing Summit 2009

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

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

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

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


PH 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 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.


More Jobs Predicted for PH Health Professionals

by @ News Feed

The launch of PhilHealth’s (Philippine Health Insurance Corp.) eClaims (digital claims) program prods optimism within the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP).

Great news for the healthcare information management of the Philippines

The healthcare information management (HIM) of the Philippines sees this as great news because of possible job opportunities for the country’s local health professionals.  

According to HIMOAP President Dr. Josefina Lauchangco, the launch of the complete eClaims program is great news as they expect more employment opportunities to the unemployed healthcare professionals. She added that is a breakthrough for efficiency in the local government and its processes. It is also seen to reinforce private and public partnerships.

Meanwhile, HIMOAP Industry Development Committee Chairman Myla Mundo-Reyes said the event is a milestone for the Philippines and is putting the country on the map as a promising destination for healthcare information management services.


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Accounting & Finance Outsourcing to Exceed $25B

by @ News Feed

A KPMG and Hfs Research study showed that finance and accounting outsourcing is doing well as 90 percent were seen reaching their cost reduction targets and performance goals. The sector is seen to earn $25 billion worldwide this year.

Meanwhile, business executives are still working on improving current processes to effectively reach, or even surpass, targets, especially at the heels of the global economic downturn. Large businesses are more aggressive in using outsourcing and other business solutions to reduce costs.

According to Ron Walker, partner and Finance and Accounting Service Division Executive at KPMG's Services and Outsourcing Advisory practice, enterprise leaders should see outsourcing as an addition to the operation and not a substitute.


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.


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.


BPO Leaders, Execs Gather at International Outsourcing Summit 2011

by @ News Feed

State of the Philippine BPO Indsutry at International Outsourcing Summit

The International Outsourcing Summit 2011 was held last October 11-12 at Sofitel Philippine Plaza in Manila. In this event, leaders, executives, and players of the business process outsourcing (BPO) industry convened to tackle global issues, challenges, and opportunities about and related to IT-BPO.  
With the theme “Global Market Leaders Addressing Global Market Issues”, sessions covered topics including the state of the Philippine BPO industry and the need to offer more non-voice and complex services while staying competitive when it comes to providing call center work. 
The IT-BPO Roadmap 2011-2016 was also presented in the event by the Business Processing Association of the Philippines (BPAP). It was discussed that the country should be the top IT-BPO location of choice, which can be achieved by having a large number of workers who have better education. Government support is likewise necessary, particularly in implementing laws related to data security and welfare of workers. BPAP said they are confident that the industry will meet its accelerated goal of US$25 billion in export revenues by 2016 through a strong partnership between the private sector and the government.
President Benigno Aquino III expressed his gratitude to the summit participants. He had approved the funds for training programs that will help address the challenge of finding the right talent for the BPO industry.

Outsourcing Misconstrued by the British Public

by @ News Feed

There seems to be a discrepancy between the survey commissioned by the National Outsourcing Association (NOA) entitled 'Public Perception of Outsourcing' and the study done by the Business Services Association (BSA). According to the survey by NOA, outsourcing is perceived by the public as a detrimental component to the British economy, while the latter showed that it contributed eight percent to UK's GDP, �14 billion in business taxes, and �21 billion outsourcers' income tax.

NOA believes that the respondents have negative perceptions of outsourcing due to lack of information about the process. More than half (53 percent) believe that outsourcing is responsible for job losses, 65 percent associate it with cost reduction, and 45 percent link it to India. Moreover, only 19 percent believe that outsourcing is a solution for the UK's current economic state.

NOA also stated that the public often confuse outsourcing with offshore captive projects. With offshore captives, there's typically no outsourcing involved and the operation is fully owned by the main company. In fact, only 27 percent of the respondents know the difference.

Even if the British public are vocal of their feelings towards the strategy, NOA Chairman Martyn Hart said the association can help the public understand that outsourcing will help businesses and the nation grow.


IT-BPO Seen to Drive PH Economic Growth

by @ News Feed

Growth of IT-BPO industry

Senator Edgardo Angara recently said the Information Technology and Business Process Outsourcing (IT-BPO) industry of the Philippines can be the key factor to drive the growth of the economy.

He added that the IT-BPO industry’s robust state was able to go beyond the previous predictions based on the public-private partnership [PPP].

Furthermore, the senator shared information from the Business Processing Association of the Philippines (BPAP) which stated that the IT-BPO industry of the country was able to grow 24 percent from 2010, posted $11 billion in revenue in 2011, and provided 638,000 or 22 percent more jobs.  

BPAP also anticipates that the industry will contribute $25 billion until 2016, and account for nine percent of the country’s gross domestic product (GDP). It will also represent 10 percent of the global IT-BPO market and provide 1.3 million jobs to Filipinos.

Angara noted that the IT-BPO sector rapidly grew in terms of work force and revenues over the past decade and has become one of the leading sources of jobs. He recommended that the government should exert extra effort to maximize the industry to its full potential.  


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.


BPAP Remains Positive in US Firms, Economy

by @ News Feed

With the re-election of US President Barack Obama and renewed discussions about the anti-outsourcing bill, the Business Processing Association of the Philippines (BPAP) said via Benedict Hernandez, President and CEO of the organization, they laud President Obama's win in the elections and they will still support businesses based in the US and its economy. The Philippines' IT-BPO sector in particular will carry on in enabling US firms to remain competitive.

He added that subcontracting processes to the Philippines allows American companies to make more profit, which will often result to more jobs locally and in the US.

The �Bring Jobs Home Act�, which was unsuccessful in the US Senate a few months ago, aims to reduce tax breaks and government grants for US-based firms, and allocate 20% tax reduction for companies that will bring jobs back to the US.      

However, Hernandez noted that outsourcing is not a major factor for the job losses in the US. He cited a study from �Dartmouth's Tuck School of Business� Economist Matthew Slaughter, which found that for every job outsourced, almost two jobs are created. He said outsourcing is a feasible business solution and companies based in America and the Philippines, and American and Filipino workers will benefit from it.


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BPO firms continue to stay, says US envoy

by @ News Feed

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

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

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

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

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

Filipinos are the preferred workers for US IT-BPO firms

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

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

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

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.


PH IT Outsourcing Posts Highest Growth Rate in 2011

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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.


PH BPO Driving Growth of Commercial Property

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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.


TESDA Urges the Academe to Offer more BPO courses

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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.


Business Exec Optimistic for PH, Southeast Asia

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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.


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.


CIOs Aim to Get more Value out of Outsourcing Contracts

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Maximizing Outsourcing Contracts

In the latest study, “From Cost to Value”, by global consultancy firm KPMG International, clients may be putting more pressure on their service providers as they aim to get more value out of their outsourcing deals.

Out of the 450 Chief Information Officers (CIOs) who took part in the survey, more than two-thirds said they would bring more pressure on service providers to get more value out of their contracts, while 81 percent said their top priority would be to get more value from IT.

"Understandably, CIOs are pursuing value by reviewing outsourcing arrangements and retaining a firm focus on cost optimization, for example," KPMG's UK advisory partner, Bryan Cruickshank, said.

The survey also reveals that 58 percent of respondents put cost optimization as second on their priority list, followed by portfolio management (51 percent).




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

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

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

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

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


Gartner Lowers Global IT Outsourcing Projections

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

Global IT Outsourcing Forecast

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

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

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

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


Nasscom Predicts Indian IT-BPO to Provide 30 Million Jobs by 2020

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NASSCOM Publishes Ethical Practices for Outsourcing

Trade body Nasscom forecasted that for the next decade, the IT-BPO industry in India will create 30 million jobs -10 million from direct employment and 20 million from indirect employment.

“There has been a 6-fold increase in direct employment. The number of direct employees in 2001 was around 4.3 lakh and now it has zoomed up to 23 lakh in 2010,” said Nasscom president Som Mittal. He added that best practices in the IT-BPO industry must be adopted, and firms must follow ethical hiring and perform background checks for workers.

At present, 37 percent of employees in the IT-BPO industry are women - 26 percent of which are chief wage earners. By 2020, about five million women employees are expected to be employed in the industry.



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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 BPO Urged to Go Beyond Voice Services

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Outsourcing Services Beyond Call Center Services

Senator Edgardo Angara urged stakeholders of the business process outsourcing (BPO) industry in the country to expand offerings and develop high-value services to stay competitive and protect the industry.
The chair of the Senate committee on Science and Technology said that for IT-BPO to remain a sunrise industry, there is a need to offer more than just voice-based processes. The pool of professionals must be skilled and knowledgeable in knowledge-intensive processes such as legal research, financial analytics, software development, creative content, and medical transcription.
The Philippines is now considered as the top call center destination, beating India in 2010. However, Angara said the aim now should be to be more than just a location of choice for voice-based work. He urged IT-BPO stakeholders to take part in the initiatives in terms of talent availability and development. One of these is the program of the Technical Education and Skills Development Authority (TESDA) and Business Processing Association of the Philippines (BPAP) designed to train more than 2000 scholars to improve their skills and meet the BPO demand.

India Still Takes the Lead in Global IT-BPO

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

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


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

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

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

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

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

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


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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.


RP 29 largest BPOs generate $2 billion

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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.  


Executives See Outsourcing as Key to Overcome Crisis

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Outsourcing Cited as a Solution to the Economic Crisis

According to the the Capgemini Executive Outsourcing Survey, majority (74%) of North America's business leaders agree that outsourcing can assist a company in staying afloat amidst the current global economic crisis. Conducted by Harris Interactive and commissioned by Capgemini, a leader in providing consulting, technology and outsourcing services, the survey was done to determine how public perception of outsourcing in times of economic downturn affects business leaders in making decisions.

Conducted last April 29 - May 15, the telephone survey further reveals that 79% of the 151 senior executives from Fortune 1000 companies agree that outsourcing has a poor public perception. However, public opinion has little or no effect on the executives' decision-making process when it comes to outsourcing IT, finance and accounting, and HR and procurement tasks.


PH Property Market to Continue Strong Growth

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Real estate agency KMC MAG Group expects that the real estate market of the Philippines will keep its bullish streak, backed by its growing service sector, rising foreign investments, and economic growth rate at 6.1 percent which is one spot behind China.

Michael McCullough, Managing Director at KMC MAG Group, said the country’s property market will remain active throughout 2015, thanks to several factors such as low interest rates, quantitative easing from the central bank, as well as positive response from investors, which then created a stable and favorable environment for local and foreign businesses.

 For office properties, demand is particularly driven by the business process outsourcing sector. In fact, almost 560,000 square meters of new office space are seen to sprawl throughout major central business districts - majority of which are set to be developed at Bonifacio Global City.
Local developers such as Ayala Land, SM Prime, and Robinsons Land, and other large players like Cosco Capital and DoubleDragon are said to be looking at new developments outside of Metro Manila, as BPOs expand operations in Next Wave Cities such as Cebu and Davao.


Indian BPOs mulling mergers, acquisitions

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Traditional BPO vs Integrated IT-BPO Players

The professional clash between pure BPO companies and integrated IT-BPO players is coming to a head, as rumors swirl in the large Indian outsourcing industry of mergers and acquisitions among pure play BPO firms.

The Hindu Business Line interviewed outsourcing experts to share their views about these M&A rumors. “I think it is more about speculation and investment horizon of PEs and less to do with performance of a sector or even integrated versus pure play BPO debate,” comments Sid Pai, managing director of outsourcing consultancy TPI India.

“Theoretically, it is rare for PE (private equity) firms to stay invested in companies for very long, and so naturally, when there is a recovery in valuations they may mull an exit,” Pai explained.

Nikhil Rajpal, partner at Everest Group, shared the same opinion. “I do not think it reflects any preference for an integrated approach at all. From an industry point of view, in companies where PE firms are invested in, there is generally an investment lifecycle. So 5-8 years is, typically, seen as a right maturity time for them to exit or cash out.”

On the other hand, Keshav R. Murugesh, group CEO of WNS, argued that buyers in the market for IT and BPO services were different clients. “We have gone for a vertical approach where we have people with deep domain knowledge, speaking to clients. As opposed to that there are integrated players, predominantly IT players for whom BPO is just a fraction of the business,” he argued.


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

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PH Eyes 5% Market Share of Global Healthcare Info Outsourcing

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

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

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



DOLE Delighted Over Disapproval of the US Anti-outsourcing Bill

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The recent disapproval of the anti-outsourcing bill in the US was indeed good news to the Department of Labor and Employment (DOLE) as it could help the country’s business process outsourcing (BPO) industry.

BPO is PH's Main Job Generator

According to DOLE Secretary Rosalinda Baldoz, the BPO industry is still the main job generator. She added that there are now fewer hurdles for the industry to grow as BPOs can further develop operations in the country and provide more jobs to local candidates.

However, she said DOLE had prepared contingency plans should the “United States Call Center Worker and Protection Act”, which discourages US-based companies from sending jobs abroad to countries like the Philippines, be approved.

Nevertheless, the defeat of the bill in the US Senate by way of vote (56-42) last July 19 is highly taken note of and welcomed.
The DOLE added that US-based companies that will eventually bring jobs back home will be rewarded by the US government. Meanwhile, other business groups in the US do not agree with the bill as it could be detrimental to their business operations and overall standing against competitors. It could also take a toll on the earnings of companies that subcontract offshore as penalties will be strictly imposed.

Baldoz quotes the President of the Business Processing Association of the Philippines (BPAP), Benedict Hernandez, saying outsourcing is an effective tool for businesses in the US to stay competitive and profitable.


Ayala's Integreon Bags $852M Outsourcing Contract

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Ayala Wins Outsourcing Contract

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

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

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

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



Outsourcing Executive: PH has the Best Talent in Asia

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Firms Believe the Philippines is the best Outsourcing Hub

According to the Managing Director of Shore Solutions, Darcy Lalonde, the Philippines is considered as one of the best outsourcing hubs because of its human resources and sound business environment. The Filipino workforce is said to have the commonly preferred traits such as great English-speaking ability, proper work ethic, and loyalty.

Moreover, he said the Philippines is the only country in Asia that offers affordable business solutions and high-quality human resources and it will only take 30 to 60 days to get an operation up and running, as long as clients contract with reliable experts and advisers.

Lalonde expected that foreign investors will continue to patronize the Philippines because of its welcoming environment. He noted that even if Malaysia and Singapore outgrew the Philippines over the last 10 years, the latter is now regaining traction and is becoming one of the key countries for investment opportunities.

A report from Bangko Sentral ng Pilipinas indicated that inflow of foreign direct investments grew to $1.3 billion during the first quarter of 2013.

Tourism, manufacturing, business process outsourcing (BPO), and health and wellness are cited as the sectors that will continue to benefit from foreign capital investments.


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PH Creative Content Industry to become Top Dollar-earner

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Creative Content Creation could bring in $25 B in Earnings

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

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

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




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Companies Urged to Organize IT Infrastructure Before Outsourcing

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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.


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Surge of BPO Seen as ICT Milestone in Arroyo Administration

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During the Gloria Macapagal-Arroyo administration, the Philippines had witnessed a dramatic surge of the BPO industry and improvement in the Information and Communication Technology (ICT) sector. This is according to Ray Anthony Chua, Chairman of the Commission on Information and Communication Technology (CICT).

The BPO industry has been a key driver for economic growth. Chua said the industry registered more than US$7 billion in export revenues in 2009. Having been recognized twice by UK's National Outsourcing Association as the Offshoring Destination of the Year, the Philippines has already made its presence known as one of the leaders in the field of ICT. "Now we are seen as the number 2 player in the world next to India which is something for a country of our size and our level of development." The industry currently employs approximately 500,000 workers.

Chua added that the first automated elections held last May and the initiative of providing computer laboratories in 5000 schools are other ICT milestones under Arroyo's watch.


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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.


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.



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Indian BPOs Testing IT Waters to Survive

by @ News Feed

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

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

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

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

The Economic Times

Paradigm Shift of IT-BPO: From Optimization to Transformation

by @ News Feed

BPO companies: from optimization to transformation

From optimization to transformation: Infosys BPO CEO and Managing Director Swaminathan Dandapani said the IT-BPO industry is undergoing a paradigm shift. Executives in the outsourcing industry said their clients think that transformation of business is the “most compelling” benefit of outsourcing.

In the International Outsourcing Summit 2010 held last month, Dandapani said clients expect their service providers to identify new business opportunities and improve processes, adding that IT-BPO companies must think about ways on how to increase clients’ revenues.

On the other hand, Everest Group Managing Partner (India) Gaurav Gupta said the Philippines needs to increase awareness that it can deliver more complex services, and must be promoted as a destination for transformative processes. “Companies view the Philippines as the world leader in voice BPO. What they don’t realize is that it is also a significant provider of non-voice, complex services.”



US Healthcare Firms Seen Looking for Medical Coding Resources in PH

by @ News Feed

MicroSourcing is seeing increased interest from US healthcare companies about building medical coding operations to help fill their need for medical coding resources. The upcoming implementation of ICD-10 medical coding regulations is a major disruption to the US healthcare industry and is expected to create an even larger shortage of qualified medical coding professionals in the United States.

The US healthcare industry has been working with the current version of ICD-9 since 1979 and the new ICD-10 regulations will become effective on October 1, 2015. The transition to ICD-10 is significant and will radically change the way coding is done, with the number of codes under ICD-10 increasing dramatically from approximately 18,000 to 140,000 codes.

At the recent American Health Information Management Association (AHIMA) conference, there were discussions about the impact of the loss of productivity as medical coders struggle with getting proficient with the new codes. There is also an expectation that many medical coders will decide to retire and not to get trained in ICD-10.

United Healthcare, WellPoint, and Aetna, which represent three of the largest US healthcare companies, all have operations in the Philippines and they have helped drive last year’s 55% growth in healthcare services outsourced to the Philippines. Industry experts are forecasting the number of Philippine workers in the healthcare outsourcing segment to reach 120,000 by 2016.

US healthcare companies looking to outsource medical coding operations

MicroSourcing is being told by many of the US healthcare companies inquiring about setting up a medical coding operation, that they feel they need to explore all the available options to ensure they can meet their production requirements. Cary Weltken, MicroSourcing’s SVP-North America, said, "Our Managed Operations delivery model is the perfect solution for healthcare companies who need certified medical coders to meet production requirements, but need to maintain total operational control and meet strict data security requirements for HIPAA compliance."

Philip Koojiman, CEO of MicroSourcing, added, "It is estimated that the Philippines has a pool of over 150,000 nursing school graduates that we can draw on to become AAPC CPC medical coders. Our current US healthcare customers who have coding operations with MicroSourcing have all indicated that they plan to grow their Philippine operations as a way to meet their increasing productivity requirements."

Strong Peso Pushes BPO Firms to Relocate

by @ News Feed

Strong Philippine Perso Driving BPOs Away

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

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

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

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


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.


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BPAP, TESDA Team Up to Improve PH Workforce

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BPAP and TESDA join forces to produce more world-class BPO employees

The Business Processing Association of the Philippines (BPAP) and the Technical Education and Skills Development Authority (TESDA) have joined forces in producing 1,700 mentors as the demand for skilled agents increases.

According to BPAP CEO and President Benedict Hernandez, they forged a partnership with TESDA as they are eyeing to produce more world-class business process outsourcing (BPO) employees. P25.2 million worth of funds have been allotted by TESDA as part of its goal of reinforcing the technical and vocational skills of Filipino candidates.

TESDA and BPAP pointed out that the rapidly developing industry such as the BPO sector needs highly qualified trainers to enrich and sustain the talent pool.

This program is an effort directed towards reaching the target of employing 1.3 million workers in the BPO sector by 2016.


Firms Urged to Avoid Common Outsourcing Pitfalls

by @ News Feed

Outsourcing Partnership Challenges

Luxoft, a leading offshore software development company, urged businesses to plan accordingly to avoid the common mistakes when it comes to transferring IT processes and delegating responsibilities.

According to Luxoft’s president and CEO Dmitry Loschinin, these pitfalls include failure to match requirements with what the provider can actually deliver, and choosing a company which does not have the capability for high-performance outsourcing. Also, he said that many firms underestimate how important having an effective communication is in an outsourcing relationship. "Without clear roles, responsibilities, and collaboration in place, the client and outsourcer teams may adopt divergent strategies that can dilute the value of the outsourcing engagement," he claimed.

Loschinin said companies must conduct regular transparency checks to ensure that both parties follow the workflow process and avoid problems later on.



DTI Sees 100,000 more Jobs from BPO Sector

by @ News Feed

Last December 2013, it was found that 900,000 Filipinos are employed in the local business process outsourcing (BPO) sector. According to Department of Trade and Industry Secretary Gregory Domingo, the employment rate in the sector is predicted to reach one million by the end of this year.

The official pointed out that not even US President Barrack Obama's plea for US firms to bring operations back home worries him because outsourcing is still a probable solution for most American companies to expand operations and reduce costs.
In his State of the Union Address, President Obama insisted that the Congress should make revisions to the Tax Code to discourage companies that move operations abroad.  He said the Tax Code of the US has a lot of loopholes which favor companies that outsource abroad and penalize the ones that invest domestically. He wants to put an end to the Tax Code's ambiguities by discontinuing the benefits received by US firms that outsource offshore.

Meanwhile, Jose Mari Mercado, President of the Information Technology and Business Processing Association of the Philippines (IBPAP) said he isn't fazed by Obama's statement.  He noted that for this year alone, the Philippine BPO sector has 140,000 job opportunities. He added that one of the important factors that BPO players have to focus on is providing the skills needed in the market.

The industry body executive also said the BPO sector of the Philippines is bullish as non-US companies like those from Europe, New Zealand, and Australia are starting to outsource their processes.


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.


BPO Employees Urged to Consider High Value Processes

by @ News Feed

At the Asia CEO Forum, SAP Asia Pacific Human Capital Management Solution Vice-president Raj Sundarason said the business process outsourcing (BPO) workforce of the Philippines should consider training for "higher-value chain" processes. 

Sundarason added that now is the time for the Philippine market to move up the value chain, because if the outsourcing market suddenly changes, the country will have a difficult time adjusting. The executive also noted the large supply of skilled medical professionals in the country, and that the local BPO industry should utilize it for diversity and growth of the healthcare information management segment, which is right up in the alley of the higher value chain.  

On the other hand, Sundarason said the country has to produce more human resources experts to support the transition and growth of the local BPO sector. A solution, he said, would be for the academe to reinforce and match the requirements needed in the industry.


Call Center Sector still Leads PH BPO

by @ News Feed

Call center sector leads BPO industry

The call center sector continues to have the upper hand in the Philippines’ business process outsourcing (BPO) industry, and is predicted to contribute US$14.7 billion in revenues and 800,000 jobs by 2016.

Benedict Hernandez, President to both Contact Center Association of the Philippines (CCAP) and Business Processing Association of the Philippines (BPAP), said the voice sector will provide more job opportunities in the future.

A 21-percent growth was seen for the sector last year. The voice sector employs 493,000, accounting for 64 percent of the sector’s direct employees, and $9 billion in revenues, which is 67% of the industry’s total returns.
According to Hernandez, some of the challenges that the sector will face in the coming years are talent shortage, high attrition rate, and maintaining the marketability of the country as an outsourcing hub.

Meanwhile, Senator Edgardo Angara reiterated during the recent International Contact Center Conference and Expo that the country has enough talent but their skills do not match the requirements. One of the solutions, he said, is the K-12 education program. He added that the government is thinking of providing P1 billion worth of investments on education and talent development to improve the skills and potential of candidates.


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The post How to Make Evergreen Content That Boosts Your SEO Success appeared first on Alexa Blog.

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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.


Prices of BPO Services to Drop 20% in 2010

by @ News Feed

Decline in outsourcing prices

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

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

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


Companies could Save �60,000 through Back Office Outsourcing

by @ News Feed

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.”


PH BPO Gaining Traction in Non-voice Sector

by @ News Feed

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.


Gartner Study Shows 7.8% Growth for Global ITO

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Global IT outsourcing revenues increased 7.8%

According to a report from global research and consultancy firm Gartner, global IT outsourcing (ITO) revenues increased 7.8% in 2011, with Indian IT providers and cloud services vendors posting the highest growth rate.  Meanwhile, global ITO market reached $246.6 billion in 2011, from $228.7 billion in 2010.

IBM got the lion’s share of the market and was seen to grown robustly much like the industry.  Moreover, IBM’s revenues contribute 10.9 percent to ITO industry’s total revenues. Hewlett-Packard, on the other hand, took the second spot amid a low growth rate at 2%, which is said to be brought on by internal management issues.

An 18.2% growth was posted by Accenture but only had 2.6% of the entire ITO market.  Furthermore, 43 service providers reported revenues of more or less $1 billion for fiscal year 2011.

Meanwhile, Bryan Britz, Research Director at Gartner, said the 2011 figures show just how hard it is for top players in the ITO space to maintain market share and acquire new ones. The situation is predicted to get worse for service providers that will not address the issues.


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 BPO Earnings to Surpass OFW Remittances in Two Years

by @ News Feed

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

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

Revenue from BPO sector expected to increase

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

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


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Anchor Text Optimization: What Should You Know in 2017?

by Nikolay Stoyanov @

If you’re a search engine optimization newbie, you probably heard somewhere that anchor text can help you rank in Google. Unfortunately, this was very much true several years ago. Nowadays, anchor texts are something that doesn’t affect your rankings as much as it can lead to a penalty. They can easily harm your blog so... Continue reading

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Manila Included in Top 30 Investment Cities in the World

by @ News Feed

Jones Lang Lasalle (JLL) recently announced that Metro Manila, Philippines made it to the list of Top 30 Real Estate Investment Cities in the world.

During the Asia Real Estate Summit 2015 in Makati City, Jeremy Kelly, Director of JLL Global Research, said the bullish growth of the country’s economy has aided in making the country’s capital as one of the attractive destinations for commercial real estate.

The executive also cited the factors considered in their Global City Commercial Attraction Index for real estate development - economic output, population, corporate presence, connectivity, real-estate stocks, and investment.

Kelly pointed out that they rank a city’s success based on its sustainable growth momentum, adaptability, and ability to innovate - and Manila has these qualities. He also said the Philippines’ vast capabilities in the business process outsourcing (BPO) sector are a key factor to make it a competitive hub. Manila got the second spot in both AT Kearney Emerging Cities Outlook 2014 and Tholons Top Outsourcing Destinations in 2015.

JLL also anticipates that Manila will be top 18 globally in terms of city gross domestic product (GDP) by 2030, and will post one of the highest economic momentums worldwide, together with Istanbul and Jakarta.


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.



How to improve your local SEO rank in Ireland – SEO Ireland

by Clinton Dickerson @ CreatorSEO

The post How to improve your local SEO rank in Ireland – SEO Ireland appeared first on CreatorSEO.

Global Outsourcing Activity Report

by @ News Feed

Information Services Group (ISG), a market intelligence and consultancy firm, recently released a general report on the global outsourcing industry’s activities for 2013 called the ISG Outsourcing Index.

Data from the report included findings on deals with annual contract value (ACV) reaching $5 million or more awarded in the last quarter of 2013 increased 13 percent, but the total ACV decreased 12 percent to $4.6 billion. For the entire year, the volume of closed deals climbed two percent, but values dropped 18 percent to $18.7 billion. 2013 accrued 1,155 contracts in total – 309 of which were awarded in the fourth quarter.
ISG notes that global outsourcing activity was strong during the fourth quarter, but then again, contract value continued to fall as buyers are now moving towards smaller deals. 

Slowdown in global outsourcing activity

Some of the reasons ISG found that have contributed to the drop in value are the decrease in number of mega deals (deals with ACV of $100 million and up), the slowdown in activity within the manufacturing industry, as well as financial services and overall weakness in the business process outsourcing (BPO) sector.

According to John Keppel, President of ISG, the figures they have reported are consistent with the organization’s initial predictions where the fourth quarter of 2013 was not able to recover the poor performance of 2013’ first half. However, for the long-term standpoint, the figures are in proportion to the pre-recession market levels. He added that they are starting to see a shift in demand for sourcing as economies are recovering from recession. He said outsourcing was once a tool used to take advantage of labor arbitrage during the economic downturn, and now, it is used to improve strategies for growth models.

It was also found that activity in contract restructuring increased 22 percent as more enterprises are moving towards multisourcing with short-term contracts. Information technology outsourcing (ITO) also climbed eight percent, specifically in the applications development and maintenance (ADM) segment.  Activity in the EMEA region was also noticeable as contract volume jumped 18 percent – but in smaller average-sized deals.



Global ITO Spending Maintains Growth

by @ News Feed

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.


PH a �Rising Star� amidst Economic Downturn

by @ News Feed

Philippine has a Steadfast Economy

Notable personalities from Moody’s Investors Service recently shared their insights about the current state of the economy of the Philippines.

One of the debt watcher firm’s divisions said the country is a "rising star" in a depressed global economy.  They also said if improvements in business and governance policies continue, the country can mature by eight percent by 2016.

Meanwhile, Glenn Levine, Senior Economist at Moody’s Analytics, said the Philippines could post between 6.5 percent and 7 percent growth this year up to 2014, both hitting the projected figures of the government.

He added that the Philippines already had accessed easy opportunities but if reforms continue, the country could achieve a growth rate of eight percent by 2016.

The current administration’s projections vs. medium-term targets are 6-7 percent for 2013, 6.5- 7.5 percent next year, 7-8 percent in 2015, and 7.5-8.5 percent three years from now.

Moreover, Levine said the increased spending of the government on infrastructure and office space can lead to "sustainable" growth.

The business process outsourcing (BPO) sector is predicted to counterbalance some weakening exports such as the trade of electronics, which posted a drop of 9.4 percent.

Another concern is the struggling inflation environment of the Philippines that has prompted the Bangko Sentral ng Pilipinas (BSP) to exert extra effort in reinforcing the flagging lending activities and improving growth.

For this year’s first quarter, inflation is at 3.2 percent, which is almost at the bottom of the 3-5 percent projection of BSP for the year. In line with that, consumer prices increased at an average rate of 3.2 percent last year and the overnight borrowing rate is at its lowest with 3.5 percent.

However, the recent investment grade rating upgrade from Fitch Ratings was cited to be the Aquino government’s "greatest achievement".


Traffic And Engagement Metrics And Other IM News

by David Jenyns @ Melbourne SEO Services

Now I’m not too sure if it’s my baby brain or a function of getting older but I woke up this morning and realised it’s October! What the? It’s time to line up all your ducks for Christmas. If you’re like most business owners, Christmas is the busy season! Are you well positioned to take […]

The post Traffic And Engagement Metrics And Other IM News appeared first on Melbourne SEO Services.

Europe is Now the Largest Outsourcing Market Globally

by @ News Feed

Results from Everest Group's Market Vista: Q3 2013 report indicated that the largest outsourcing market in the world right now is Europe with a market share of 43 percent, while US accounts for 35 percent. Europe also bagged two of the three largest deals recorded for this year's third quarter, with each having a value of US$1 billion or more. Those deals were the multi-billion euro deal of UniCredit, and the GBP 1.2 billion deal of Telefonica. The other mega deal was the US$1.25 billion contract of the Centers for Medicare and Medicaid Services in the US.

Other details highlighted in the report are major outsourcing transactions that occurred during the third quarter, state of the global offshoring environment, GIC (global in-house center) developments, as well as risks and changes among the major service providers.

With the incentive packages offered by Central European governments and sluggish recovery of economies worldwide, the number of GICs was noted to have increased and expanded in Central and Eastern Europe.


US Congressman to Propose an Outsourcing Accountability Bill

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Large companies, specifically the ones with revenues surpassing $1 billion in the US, may soon have to reveal how much of their processes are being outsourced to offshore locations once the house bill �Outsourcing Accountability Act' proposed by Rep. Gary Peters (D-M) and co-sponsored by Reps. Tim Bishop (D-N.Y.) and Jerry McNerney (D-Ca.) is ratified. The firms will also be obligated to indicate their domestic and offshore employment activities, as well as a detailed report that shows which countries their outsourced employees come from.

Furthermore, the bill is set to lessen the ambiguous employment figures declared by renowned companies such as IBM, Pfizer, and Apple. All of them publicly share the number of employees, but not the exact number of those who are working overseas. Also, from 2000 to 2009, 2.9 million jobs were lost in the US, while 2.4 million were created abroad.    

According to Peters, this will not make things harder for companies as they already have the needed information, and it is impossible for them to not know where they send their pay checks.      

Moreover, a report posted August of last year showed that companies that do not disclose exact data are also appealing for tax breaks under the impression of creating jobs, but since lawmakers are presented with vague figures, they cannot monitor which companies are actually creating jobs.   

General Electric (GE) and Wal-Mart are some of the large companies that have shared the exact numbers of employees who are working abroad. For GE, the number of US-based employees decreased from 54 percent in 2000 to 46 percent in 2010.

Peters added that correct data will help consumers who want to support American workers easily identify these companies and provide more information for investors.


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.


Global IT-BPO Projected to Grow 11%

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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.


PH BPO Sector Gets 26% Revenue Growth

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BPO Philippines Posts 26% Growth

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

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

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

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


Growth of India's Outsourcing Market to Slow Down

by @ News Feed

According to Gartner, a research firm, the offshore outsourcing industry of India will likely to experience slow growth due to the emergence of other ideal outsourcing locations and the looming US policy against shipping work offshore.

Challenges to India's outsourcing market

As the leading offshore destination, India is on top of the list of most clients who want to outsource their non-core business operations as a cost-cutting approach. However, countries like the Philippines, Brazil, Mexico, and Vietnam are emerging as ideal BPO alternative locations.

Another factor that will pose a challenge to India's outsourcing market is the US policy against outsourcing jobs. The current global economic downturn resulted in an increase in the unemployment rate of the US, and outsourcing in India will not help the nation in its effort to bring the economy back on track.


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.


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6.7% Growth Predicted for PH this Year

by @ News Feed

According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), growth of the Philippine economy will be slower this year at 6.7 percent from 7.2 percent posted last year. However, the Philippines posted the strongest growth compared to its Southeast Asian counterparts.

UNESCAP advised the country to beef up its revenue collection to achieve the targets. Efforts such as new policies that can improve domestic resource mobilization should be implemented. This would include new improvements in the way taxes are collected and distributed so that tax evasion and tax fraud can be avoided.

Last year, the Bureau of Internal Revenue (BIR) was able to collect P1.217 trillion in tax revenues, which is 15 percent higher than 2012's P158.72 billion. However, figures in 2013 were lower than the initial target.

Another recommendation stated by the UN body is more fiscal space for social services like education, health, and social protection. These, in turn, are expected to help further boost the local economy.

Meanwhile, the deficit in the trade industry was buoyed by strong dollar exchange from remittances, business process outsourcing (BPO) revenues, and tourism receipts. Account surplus surpassed the gross domestic product (GDP) by 3.5 percent.

The Philippines is also ranked as one of the countries in Southeast Asia to have increased the share of national income to the poorest 20 percent of its population.


Filipinos, BPOs to Benefit from SEA-US Cable Link

by @ News Feed

Improved Internet Connection through SEA-US Cable Link

According to Globe Telecom Inc., one of the major telecommunication companies in the Philippines, the $250-million Southeast Asia-United States (SEA-US) cable link will be advantageous for Filipinos and business process outsourcing (BPO) companies in the country.

Gil Genio, EVP and COO at Globe, said the project will give Globe the leverage and ability to provide excellent connectivity services for consumers and organizations, specifically ones that have tie-ups in the US. He added that it will benefit the business process outsourcing sector, large financial institutions, and other companies that operate in a global scale, especially now that the Philippines has stepped up to the plate as one of the preferred destinations of investors.

The submarine cable link worth $250-million is a project of global telco companies. It will be connecting Southeast Asia and the US by the fourth quarter of 2016. Other companies included in this project are PT. Telekomunikasi Indonesia International (Telin), RAM Telecom International, Hawaiian Telcom, Teleguam Holdings GTI Corp. (a member of the Globe Telecom group of companies), and Telkom USA. System suppliers of the project are NEC Corp. and NEC Corp. of America.

The areas that the SEA-US cable link are set to link up are Manado in Indonesia, Davao in Southern Philippines, Piti in the Territory of Guam, Honolulu on the island of Oahu in Hawaii, and Los Angeles in California.



IBM Brings Cloud Computing Technology to RP

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Cloud computing enables business owners to gain access to company data virtually anywhere

Cloud computing, the technology that enables people to gain access to services and storage via the Internet cloud, is now in the Philippines, thanks to global information technology pioneer IBM.

“Cloud computing is an important new consumption and delivery model for and business services. Based on two years of research, [this could] help clients turn complex business processes into simple services," said Daryl Tan, IBM regional service platform manager.

According to IBM, cloud computing can help reduce a company’s expenses in hardware and software maintenance by 40 percent. With cloud computing, business owners can gain access to company data virtually anywhere as long as there is an Internet connection. Remote employees can also access business information of clients, making the technology an ideal tool for financial firms and companies in the business process outsourcing sector.


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.


Obama Addresses Outsourcing Concerns in India

by @ News Feed

The US is seeing an increasing level of unemployment. Last month, it reached 9.6 percent. In his India visit, President Barack Obama said shifting work to outsourcing destinations such as India has cost Americans their jobs.

This is a major blow to the Indian IT industry, since about 60 percent of its $60 billion IT and IT-enabled services exports come from the US.

The US is increasing visa fees and implementing other protectionist measures as the country bounces back from the economic downturn and faces high unemployment levels. "As we look to India today, the US sees a potential to sell exports in one of the fastest growing markets in the world. For Americans, this is a job threat as we recover from recession," Pres. Obama said.


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

by @ News Feed

APAC Posts Lower Outsourcing TCV

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

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

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



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PH Government Eyes $50B Revenues from ICT-BPO

by @ News Feed

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

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

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

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

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


PH Commercial Real Estate Grew 18%

by @ News Feed

Philippine BPOs a Major Market Segment for Office Space

The Philippine commercial real estate segment grew 18 percent from the average demand of 360,000 square meters (sq.m) to 425,000sqm. during the months of January up to November this year. It is projected to reach 430,000sqm by the end of December according to global real estate services firm Jones Lang LaSalle (JLLL).

Sheila Lobien, Director for Project Leasing at JLLL, said apart from local business process outsourcing (BPO) companies, multinational companies (MNCs) and local firms are also considered as major market segments for office spaces in 2012. In fact, these segments account for 25 percent of the current demand, which translates to 100,000sqm.

Meanwhile, the national director for markets, Lizette Tan, said BPOs can still customize architectural design according to the requirements of their respective infrastructure. Buildings will also be strategically located to be near residential areas.


Data Privacy Act to Improve PH BPO Industry

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Ruling to Improve Philippine BPO Industry

The rapidly growing business process outsourcing (BPO) sector of the Philippines is set to benefit from the Data Privacy Act or Republic Act 10173 as it aims to protect personal digital data of private and public entities, specifically those that are dealing with offshore businesses.

Benedict Hernandez, Director of the Business Processing Association of the Philippines (BPAP) and President of the Contact Center Association of the Philippines (CCAP), said the local BPO sector must and will abide by the new law’s provisions. It is also predicted to attract more investors as it is set to reinforce protection of private data.

In an interview, Hernandez also highlighted several uses and benefits of the law to the outsourcing industry and other sectors as well. He added that private information should be handled with outmost confidentiality.

Moreover, he said having reinforced data privacy processes will help pave the way for better business practices in companies and more opportunities in attracting potential investors. He reiterated that BPAP will strive to work with the government in implementing and establishing the provisions of the Data Privacy Law.


PH Outsourcing Predicted to Post 13.9% CAGR until 2018

by @ News Feed

Philippine BPO Compound Annual Growth Rate until 2018

One of the highlights in the Research and Markets’ report "Outsourcing Market in the Philippines 2014-2018" is the projected 13.9 percent compound annual growth rate (CAGR) of the Philippine outsourcing market until 2018.

The Philippine outsourcing market is composed of three segments: voice BPO, non-voice BPO, and IT outsourcing and ESO.

It was also found that as the call center segment continues to grow, the country is looking at other outsourcing services to reinforce growth throughout the industry. In addition to that, knowledge-based outsourcing is on the rise while industry-centric outsourcing services depend on communication and industry-specific language.

As for countries, India and the Philippines are cited as having graduates who are skilled in Math and Science.

More and more companies have been observed to outsource HR, and F&A processes to cost-effective outsourcing hubs. The ongoing trends in the global outsourcing market pushed the Philippines to increase revenue margins and focus on processes related to engineering and healthcare.

Industry experts were solicited for inputs on the Outsourcing Market in the Philippines 2014-2018 report. Information included in the report also focuses on the growth of the outsourcing prospects and landscape in the Philippines in the coming years.

The report, the Outsourcing Market in the Philippines 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. The report focuses on the outsourcing market in the Philippine landscape and its growth prospects in the coming years. The report also includes highlights from the key service providers such as Accenture PLC, Convergys Corporation, JP Morgan Chase & Co., and Teleperformance SA.


BPAP Predicts Higher Revenues for Software Outsourcing Sector

by @ News Feed

According to the Business Processing Association of the Philippines (BPAP), the revenues of the country’s software outsourcing industry will rise in 2013 due to an increase in market demand.

Meanwhile, the industry currently has a 27% growth rate, said Nora K. Terrado, President of Philippine Software Industry Association (PSIA). Terrado added that the 30% year-on-year target in 2013 will result to an increase of $1.5 billion in revenues and a 25% growth in employment which will reach about 80,000 personnel.

Software Outsourcing

In 2011, the local software industry grew 27%, with $993 million in revenues and 50,000 employees.

Other growth contributors identified by PSIA Director Tae Abe-Abion are Filipino innovations such as marketing efforts to promote the country as software and ITO (information technology outsourcing) destination, as well as the large qualified workforce.

In line with that, BPAP Chief Executive Benedict C. Hernandez cited the software outsourcing sector as one of the key contributors of the local outsourcing industry. Hernandez added that the Philippine software sector is gaining foothold in the global market and that the robust growth of the segment indicates its capabilities in a rapidly developing market.


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.


India Losing BPO Foothold

by @ News Feed

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

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

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

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

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

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

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


Tax Break Eyed for Graveyard Shift Workers

by @ News Feed

A new legislation that aims to give tax breaks for nearly 904,00 employees with graveyard work shifts was recently submitted by Deputy Majority Leader and Makati City Rep. Mar-Len Abigail Binay.

According to the lawmaker, overtime and third shift premiums of workers receiving the minimum wage are taxed as much as 32 percent based on their tax bracket. She is hoping that with House Bills 2836 and 4682, all wages that fall under the graveyard shift and overtime category will be exempted from the tax deductions regardless of their hourly pay rate.

Binay explained that should the tax break take effect, it will empower the consumers to spend on taxed items such as goods and services. She said it will also alleviate the strain of rapid inflation in the country.

Binay also noted that workers in the business process outsourcing (BPO) sector will be the major beneficiaries of the proposed law. Also, BPO workers are remunerated above the stipulated minimum wage, and their third shift premiums and overtime pay are still subject to withholding taxes.

If an employee works beyond the required maximum eight hours a day, he/she is entitled to 25-30 percent additional compensation. As for the night shift premium, Binay explained that an additional 10 percent will be given to employees who work between 10:00pm and 6:00am.

Binay noted that under the Labor Code, if overtime work is within the graveyard shift, the additional overtime labor is first computed and added to the employee's regular hourly rate before the night differential pay is added.


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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.


India Losing Traction in IT-enabled Services

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High Cost Indian IT-Enabled

According to Ramesh Bhandari, MD of Pegasys Information Technologies Pvt. Ltd, India is believed to be losing traction on IT-enabled Services (ITeS) due to expensive rates. Tight competitors such as Brazil, the Philippines, and Sri Lanka are gaining from India’s loss and are offering more affordable services.

In the Business Orientation Program of IMT Hyderabad where a group of 120 students and faculty members participated, Bhandari discussed ITeS & Cloud Computing, stating that India’s IT outsourcing industry posted a 6.1% growth during 2010 and is predicted to grow by 19% in 2011. In India, ITeS contributes to the country’s economic growth and is responsible for nearly 5.66% of the country’s GDP and provides jobs to 2.3 million people. Bhandari also noted that cloud computing has drastically changed the industry by making way for new opportunities for businesses involved with IT/ITeS and traditional services.
Cloud computing basically means delivering hosted services over the internet without making use of additional hardware and software. It is also affordable and can be easily set up.

Services exports such as ITeS-BPO account for 85% of the country’s revenues. In fact, during 2009-2010, the total ITeS revenue amounted to $14.7 billion, a huge increase from 2004’s $2 billion.


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

by @ News Feed

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

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

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


Ovum: Asian Governments will Invest in the Cloud this Year

by @ News Feed

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

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

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


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.


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.

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

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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.


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Life as a Link Builder

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Today’s topic on Inbound Zen – The Inbound Marketing Podcast is Link Building. Links are a huge part of SEO so we invited Andrew Mitschke, our own Link Building savant to sit down with us and chat about the good … Continue reading

RP BPO Urged to Penetrate European Outsourcing Market

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PH urged to tap into European outsourcing market

The European Chamber of Commerce and Industry in the Philippines (ECCP) urged BPO stakeholders in the country to tap and maximize the European outsourcing market.

According to ECCP Executive Vice President Henry Schumacher, the Philippines can have a bigger piece of the market compared to what India currently has. “Since Europe is also aggressively looking at opportunities from emerging countries in the East, now is the time for the entire Philippines to explore Europe since it is also the largest business process outsourcing market.”

Web design, IT, human resources, and back-office functions are some of the processes that can be outsourced to the Philippines. To take advantage of the European outsourcing market, Schumacher said the Philippines must initiate campaigns that will enable Filipino workers to have a better understanding of the European culture. He added that branding and highlighting what Filipinos can do will play a big role to help the country in tapping the foreign market.


PH Congress Oks Data Privacy Bill

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BPOs in the Philippines on the Lookout for Data Privacy Bill

The Philippine Congress is set to enact House Bill 4115, or the Data Privacy Act of 2011, as the bill passed its third and final reading this week. The country’s booming business process outsourcing (BPO) industry is expected to benefit from the measure, which aims to protect and regulate recording of personal data in information and communication systems in the public and private sectors.
"The bill will also contribute to the promotion and development of electronic commerce in the Philippines and protect the consumers. It will also promote consumer trust and user confidence in electronic commerce through the issuance of clear, transparent, predictable, and enforceable rules to clarify and ensure the protection of personal data in information and communications systems in both the private sector and the government sector," explains Rep. Roman Romulo, author of the bill.
Bill co-author Rep. Susan Yap explained that the state needed to protect the fundamental human right to privacy of communication. "The State recognizes the vital role of information and communications technology in nation building and its inherent obligation to ensure that personal information in information and communications systems in the government and the private sector are secure and protected," the legislator said.
Once signed into law, the bill’s provisions on guaranteed security for personal data will be enforced by the Commission on Information and Communications Technology (CICT). Among the responsibilities outlined for the CICT include the selection and recommendation of the most secure technologies available to protect government databases from cyber attacks. The bill also protects the CICT from criminal or civil suits that may happen in the course of the commission’s protection of personal data.
The bill prescribes that data controllers and processors must use techniques in protecting personal data against accidental or illegal misuse, destruction, disclosure, alteration, or even illegal processing. At the same time, the bill makes it illegal to share personal data with third parties. Violators will be fined by as much as PHP5 million (USD 115,000), the bill prescribes.
The Business Processing Association of the Philippines (BPAP) had earlier lauded the data privacy bill when it passed second reading last month. “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,” said Martin Crisostomo, BPAP executive director for external affairs.
A counterpart bill was filed in August of last year at the Philippine Senate by Sen. Miriam Defensor Santiago.

PH Gets Better Ranking in 2012 Global Real Estate Transparency Index

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

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

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

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

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


Global Payroll Outsourcing Market 2014-2018 Report

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Global Payroll Outsourcing Market Evolving

It has been observed that more and more SMEs and large organizations are considering payroll outsourcing as a key component of their strategy. Moreover, payroll experts are said to be evolving with the changing market dynamics.

Some of the processes covered by the payroll outsourcing segment include analysis of organizational data, computation of gross salaries, TDS, allowances, reimbursements of expenses, and filing of TDS.

Research and Markets’ latest report "Global Payroll Outsourcing Market 2014-2018" found that organizations are motivated to outsource because of increasing work pressure, low costs, increasing importance of strategic roles, and better quality of services from providers. The report also discovered that having an efficient payroll system means having proper record maintenance and a timely payroll process helps retain employees.

Another highlight is the analysts’ prediction that the global payroll outsourcing market will grow at a CAGR of 3.91 percent over the period of 2013-2018.

Cost is a key aspect that drives activity in the payroll outsourcing market. This is why buyers prefer to outsource because applications and tools are accessible when needed. Outsourcing is also scalable and cost-efficient.

The market is also being driven by accuracy and accountability of expert payroll providers. Experts are held accountable for any mistakes, and are also the ones that find solutions. For the clients, payroll outsourcing helps them focus on core processes. 


China Dethrones India as Top Outsourcing Destination

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A survey from accounting firm KPMG revealed that for Asia-Pacific firms, China had surpassed India as the top location of choice for offshoring and outsourcing.

Out of 280 senior business leaders in Asia, 42 percent said they have established shared services centers in China, while 41 percent said they have an outsourcing partner in the country.

"Though at the moment the country has still not reached the level of maturity seen in India, the growth of China's outsourcing market is significant. Many Western companies may still see India as their location of choice, but for executives within Asia Pacific the message is clear - China is now leading the way," said Edge Zarrella, global head, IT Advisory, KPMG China.

Singapore was the second most popular outsourcing destination (29 percent), followed by India (25 percent).


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.


Filipino Animators, Game Developers Trained in South Korea

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

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

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

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

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

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

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


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.”  




Contact Centers may Soon Hire Agents based on Computer Skills

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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.


US Firms Urged to Bring Jobs Back rather than Outsource Offshore

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With the elections approaching, US President Barack Obama is trying to bag more votes and hold the presidential position for the second time by targeting the middle class segment through creating an advocacy against firms that are outsourcing jobs overseas. The US president is making an effort to bring jobs back home and even gave his word in assisting other business owners who would do so. He is also planning to create a program that he hopes will attract investors to the country.

Based on federal official comments, the Obama government is expecting an increase in employment opportunities in the US and attracting companies to not only invest and source jobs locally, but also to make use of US-based factories and plants.

There has been an ongoing debate about US companies that are moving jobs overseas, particularly to Asian countries like China and India where costs of labor and infrastructure are relatively lower. Ohio and Michigan are some of the industrial provinces that are significantly affected by reduced job opportunities in the manufacturing sector.

Republicans who have repeatedly countered the Obama administration were the ones who said that Obama's regulations regarding outsourcing will be the solution to the unemployment rate in the country. In fact, a study released last Friday states that the unemployment rate fell to more or less 8.5%, the lowest within the past three years.


KPO Firms in RP to Increase Employee Base

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The Philippines sees a rising demand for knowledge process outsourcing services. Sixty percent of KPO firms said that their employee base will increase between 11 and 200 percent this year, and 94 percent of respondents see continuous growth. This is based on the survey conducted last August 6-24 by the Business Processing Association of the Philippines (BPAP).

Of the 131 industry executives who participated in the survey, 43 percent said that it is �less risky� to outsource operations to the Philippines than to India, while 13 percent said that it is �much less risky�.

Respondents were executives from companies that offer services such as back-office KPO, animation, advertising, as well as financial and legal KPO.


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Slower Growth Seen in Indian IT Industry

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Technology and market intelligence firm Forrester Research warned that India's IT industry will see a slower growth rate in the next few years due to ��disenchantment� with mega deals, as well as lack of strong bounce back effect.

�There is a sense of disenchantment with large-scale IT outsourcing. Companies have realized that whole-scale IT outsourcing leaves you much more exposed. They are likely to go for more granular deals in the future,� said Andrew Bartels, principal analyst at Forrester Research. The industry will see slower growth and there may be no mega outsourcing deals over the next few years. 

US IT outsourcing will grow by about six percent. The growth rate of IT consulting and deployment services will reach 6.8 percent, while software will register 11.5 percent growth rate over the next two years.


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.


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PH IT-BPO Sector to Reach $1B in Revenue for 2012

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In an effort to preserve its 27 percent compound annual growth rate (CAGR), the Philippines' IT-BPO services sector is hoping to reach $1 billion in revenues this year.     

The IT-BPO sector posted approximately $993 million in revenues last year, according to the Philippine Software Industry Association (PSIA).

Moreover, PSIA President Noya Terrado said 49,900 software engineers and IT services professionals are currently employed by the IT-BPO sector which was seen to have grown 37 percent in 2011.

The IT-BPO market is expected to grow as companies in the US and Europe struggle to find ways to improve strategies at relatively lower costs. In fact, nearly 60 percent of the sector's revenues came from the US, and the rest are from countries including Europe, Japan, and Asia Pacific.

Terrado added that the economic downturn in Greece and Spain may result to business owners subcontracting work to external providers to minimize expenses and maximize operations. This will then be a window of opportunity for the outsourcing industry.


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Ovum Says BPO Sector to Recover in 2011

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

New opportunities for BPO sector

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

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



PH BPO Revenues to Reach $25bn in 2016

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Philippine BPO Industry Seen to Generate $25 billion in Revenues

The business process outsourcing (BPO) industry in the Philippines is likely to grow and post $25 billion in revenues in 2016, according to Maulik Parekh, CEO of BPO firm Spi. This forecast is almost three times higher than the industry’s revenues of $9 billion every year.

The Philippines is currently battling it out with countries such as Vietnam and Malaysia. Parekh said higher value services will be needed to beat the competition. He added that from 43 percent last year, non-voice services will grow by 58 percent.

Meanwhile, the Commission on Information and Communications Technology (CICT) is optimistic about the country’s BPO industry, even though there is a proposed US bill that will impose taxes on calls received from offshore call centers. In fact, CICT predicts the industry will grow by 26 percent.

CICT Chairman Ray Anthony Roxas-Chua said more than 440,000 Filipinos have entered the BPO workforce since 2010, and demand and job opportunities are expected to increase in the near future.




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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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.


Local BPO Body Optimistic on 2016 Growth Projections

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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.


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

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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.



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

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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.



Growth Potential Seen in PH Animation Outsourcing

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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.


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.


The Future of Contact Center Outsourcing

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

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

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

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

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

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

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


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.   


Global IT Outsourcing to Post 4.41% Growth in 2014-19

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According to the “Global IT Outsourcing Market in Capital Markets 2015-2019” report by Research and Markets, the global IT outsourcing in capital markets will grow at a compound annual growth rate (CAGR) of 4.41 percent throughout the period of 2014-2019.
The research and consultancy firm noted in the report that the key growth driver for IT outsourcing is the banking, financial services, and insurance sector (BFSI). Government and manufacturing sectors also play a major role.

The major development in the market is the adoption of cloud-based outsourcing. Clients have been observed integrating the process to get prompt access to applications and tools at their disposal. Other advantages of using the cloud-based outsourcing model are reliability, scalability, agility, and cost reduction. Moreover, the report pointed out that cloud-based operations do not require large, upfront capital investments, which is why it is the perfect option for organizations that are strongly anchoring strategies on cost reduction.

However, the report pointed out that one of the major drawbacks in the market is the lax control over information security. It also warned that IT outsourcing clients face the risk of security breaches, particularly for crucial company information.


BPO Firm Says Training is Crucial to Sustain Growth

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According to TeleDevelopment Services Inc. (TDS), the business process outsourcing (BPO) industry must focus on providing training to supervisors or frontline leaders. This is to improve productivity and sustain the growth of the industry which is estimated to increase by 25 percent this year.

More sophisticated BPO and KPO services

“The industry is growing to the tune of 2,000 new hires every week. It’s going to grow in ways we’ve never seen over the last few years in terms of more sophisticated BPO and knowledge process outsourcing services,” said TDS President Jon Kaplan. He added that supervisors can have a key role in minimizing turnover and increasing performance.

The country’s outsourcing sector currently employs 500,000 workers. With revenues reaching $7.3 billion in 2009, RP President Gloria Arroyo reported recently that the country is closely behind India’s outsourcing industry worth $9 billion.


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

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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.


BPO Firms View RP's Negative Publicity as Risk Factor

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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.


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.


Web Development Outsourcing: Filling the Knowledge Gap & Growing Your Business

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A business starts with an idea. While conceptualizing, you list down all the services you want to offer – and not all of them may necessarily be suited to your expertise. This doesn’t have to be a bad thing but it does mean you will need some help. When setting up and growing your business,…

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Outsourcing as a Cost-effective Solution

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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.


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100,000 Jobs Await Fresh Grads in the PH BPO Industry

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BPO industry updates

World Bank stated in its Philippines Quarterly Update that new graduates can expect more employment opportunities this year, as infrastructure spending increased and the business process outsourcing (BPO) sector continues to grow even though it is facing talent supply issues. In fact, the BPO industry is expected to provide 100,000 jobs this year.

Majority of the 700,000 Filipinos in the BPO workforce are employed in contact centers. Meanwhile, finance and accounting is seen as a growing segment for Filipino workers.

The BPO industry is stalled by economic problems globally which may affect those who are employed in the electronics sector.

Fewer overseas contracts are also anticipated by World Bank. However, structural reforms are said to be manageable solutions to beef up the volume of skilled candidates, and hopefully resolve advancement issues.

Rogier J. E. van den Brink, Lead Economist at World Bank, said the Philippines has the rudimentary elements against the worsening condition of economies worldwide. Also, the country has the potential to be a prime destination for other services.


Survey Shows Continuous Growth in Global IT Spending

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According to Chief Information Officers (CIOs) who participated in the survey conducted by institutional brokerage CLSA Asia-Pacific Markets along with outsourcing advisory firm TPI, global IT spending shows continuous growth, with the IT spend on the second half of 2010 expected to be the same as in the first six months.

�We are seeing lot of cheer in terms of IT spending across the globe. Thus we are moving steadily to achieve the guidance we gave last quarter,� said Rajan Kohli, chief marketing officer, Wipro Technologies.

India's top three IT services providers, TCS, Wipro, and Infosys, posted six percent growth in revenues, which can be attributed to Western firms which start outsourcing IT processes to cut operational costs.

Things are looking up for the IT sector, but some are concerned about the quality of contracts in terms of tenures and contract values.


PH Property Sector to Remain Strong in 2014

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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.


BPO Workers: Be more Considerate during Typhoon Period

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

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

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

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

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

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

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


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.


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New List of �Next Wave� Cities Released

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The Philippines' Next Wave Cities for Outsourcing

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

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

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

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

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


Study Reveals Trends that Drive BPO Competition

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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.


Cebu Lacks Enough Manpower for BPO

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BPO Talent Shortage in Cebu

The 2009 top emerging outsourcing destination in the world is now facing the problem of not having enough workers. According to Cebu Investment and Promotions Center (CIPC), Cebu does not have enough manpower to meet the demands in the business process outsourcing (BPO) sector.

“Cebu does not have enough economies of scale to supply BPO firms that continue to expand here. We don’t have to attract more BPO investors but we must in the short term address the problem on human resource,” said Joel Mari Yu, Managing Director. He added that the province can produce approximately 23,000 graduates annually, and only about five percent will be qualified for BPO work.

At present, there are 60,000 workers in BPO companies in Cebu. Yu said that because of the lack of enough manpower, firms opt to hire workers from nearby provinces or expand operations outside Cebu.



High Attrition Hampers PH BPO Growth

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PH BPO Workforce Faced with High Attrition Issues

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

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

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

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


PH BPO to Create more Job Opportunities this Year

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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).


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.


PH Construction, Economy Driven by IT-BPO, Remittances

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IT-BPO sector among drivers of PH economy

According to Rajiv Biswas, Chief Economist at research and consultancy firm IHS Asia-Pacific, the bullish information technology business process outsourcing (IT-BPO) sector and strong inflow of remittances from overseas Filipino workers will continue to drive the economy of the Philippines.

He pointed out that between 2008 and 2014, the country’s revenue from service exports has doubled and over a million jobs were created. Last year, the sector posted an 18.7-percent revenue growth to US$18.4 billion.

In an earlier statement, Biswas said the Philippines and Malaysia are the frontrunners for IT-BPO in Southeast Asia as both countries have large pools of English-speaking, university-educated workforce. Meanwhile, the Bangko Sentral ng Pilipinas (BSP) reported that the total remittances in 2014 went up by 5.8 percent to US$24.31 billion.

The IT-BPO and inflow of remittances also propel the growth of the construction sector. Remittances push the capabilities of consumers to spend, particularly for residential properties, and act as leverage for the Philippines’ balance of payments. The IT-BPO sector, on the other hand, reinforces the commercial property sector.


PH Property Developer Launches 2nd BPO Hub in Cebu

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Two World Center BPO Hub Cebu

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

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

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

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



PH BPO Sees Faster Growth Rate in the next 5 Years

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With a 26 percent revenue growth rate in 2010, which translated to almost $9 billion, the Business Processing Association of the Philippines (BPAP) sees stronger growth, reaching 25 percent a year, for the industry. In the roadmap created for 2010-2016, it is estimated that the outsourcing industry of the country will reach a growth rate of 15 percent.

Last year, BPAP and associations reported that 525,000 individuals comprised the IT/BPO workforce, and $8.9 billion in revenues were generated. With a faster growth rate, BPAP Chairman Alfredo Ayala said the industry can post $25 billion in revenues by 2016 and employ 1.3 million direct jobs and 3.2 million indirect jobs. When it comes to the projected growth rate of 15 percent, the industry is capable of employing 900,000 direct jobs, 1.7 million jobs, and posting revenues reaching $20 billion.

Philippines takes lead in providing call center services

The Philippines had already taken the lead in providing voice-based or call center services. This sector alone grew by more than 20 percent last year. On the other hand, the non-voice sector, which includes back office functions and knowledge process outsourcing (KPO), posted a 30 percent growth rate in 2010.



RP BPO Feels Impact of Strong Peso

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Stronger Philippine Peso's Imapct to BPOs

According to Oscar Sañez, president of the Business Processing Association of the Philippines (BPAP), the BPO industry in the country is starting to feel the effect of the strong peso, at around 43 to the dollar.

Small companies may stop their operations. For BPO companies with contracts struck at 46php to a dollar, revenues will decrease. Sañez said having a strong peso will have a negative impact to the industry. This can also affect investor perception of the country as an ideal outsourcing location. "If you listen to the pronouncements of government, it actually prefers a strong peso. That is dangerous because the economy is dependent on OFWs (remittances) and exports of product and services," he said.

While the country’s BPO industry is worried about this issue, Sañez said BPAP remains on track in reaching the revenue goal this year. The problem would be how to keep this momentum despite the impact of the strong peso.


Gartner: BPO Companies to Increase Spending this Year

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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.


20 Point Checklist

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

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Moody's Investors Service affirms the Philippines' Baa2 long-term issuer and senior unsecured debt rating and maintains a strong and stable growth outlook.

It cites the country's economic performance and continuous debt consolidation as positive factors that will further converge key fiscal metrics versus corresponding peer medians.

On the other hand, developments in domestic politics pose challenges to the institutional strength and the economy's positive trend in performance. There are also constraints seen in material capacity despite a stable macroeconomics.

Strong growth outlook

Between 2014 and 2016, the Philippines had an average of 6.4% real GDP growth, which is more than twice the corresponding median for Baa2-rated countries. Over the next two years, Moody’s expect an above 6% growth per year, which will largely come from the private sector.

A young population will be key in private consumption growth stability. Overseas Filipino workers (OFWs) will maintain stable remittances to support household consumption. The business process outsourcing (BPO) sector, which comprises the bulk of services exports, will continue to improve the external environment.

Improved government spending, particularly in infrastructure development, is seen to achieve the target range of 7%-8%.

The Baa2 rating reflects the country's high economic strength, which balances its large scale and rapid growth against low per capita income compared to its peers.

Moody's assessment reveals that the Philippines' institutional strength is drawn from a long track record of sustaining macroeconomic and financial stability, despite weaker Worldwide Governance indicators as compared to other investment grade countries.

In addition, the government's fiscal strength also reflects low government debt relative to most Baa2-rated peers, as well as low debt affordability and elevated vulnerability to exchange rate depreciation. These indicators have shown significant improvement in the last 10 years. Furthermore, the country's susceptibility to even risks is reduced by a healthy banking system and its external payments position.


PH Likely to become Top Services Exporter in Asia

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

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

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

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

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


Keyword mapping: the most important aspect of on-page seo

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You can optimize a page for more than one keywords but you shouldn’t spend too much time optimizing multiple pages for the same keyword. I remember an old mentor telling me this years ago. While it is possible to have multiple rankings in the search engines for a specific search term, your effort is better…

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Building an eCommerce Website? Tips on What to Outsource

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  So you’ve finally decided to expand your business and delve into owning your very own online store. The catch, you want to make it an easy and effortless process – at least for the most part.   Say no more! Building an eCommerce website can be a breeze given the plethora of software available […]

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Proven Search Optimization

by E-Curtis-Designs @ Sacramento Web Design

SEO Services Should Be Questioned Anyone who has a business website wants to ensure that there website is found easily in Google. A lot of companies promise good SEO results if you pay them a substantial fee each month for their optimization services. The reality is, you don’t need to pay lots of money for…

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Demand for FAO Services to Grow in 2010, Survey Shows

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Survey Predicts Deman for FAO to Rise

Key findings of The WNS Annual CFO Survey 2010 show that this year, the demand for finance and accounting outsourcing (FAO) will continue to grow.

One hundred CFOs from companies with over $3bn in revenues took part in the online survey. More than 75 percent of senior finance executives said they aim for expansion of their outsourcing programs this year, while 85 percent are satisfied with the benefits from outsourcing finance and accounting processes.

"The survey clearly suggests that FAO has become a mainstream tool as 85 percent of respondents say they are satisfied with the benefits. While FAO has been commonly used to reduce cost of operations, it is increasingly becoming more strategic, focusing on transforming F&A operations," said Sulakshana Patankar, Business Unit Leader, WNS Finance and Accounting Solutions. "It is extremely encouraging to note that respondents who outsource plan to increase the scale of their programs in 2010, expanding both processes in scope and adding business units and geographies."

The survey was commissioned by WNS (Holdings) Limited (NYSE: WNS) and conducted by EquaSiis, an EquaTerra company.



Everest Says Outsourcing in China will Continue to Grow

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It is evident that hearsays don't stop business owners from outsourcing to China. In fact, industry analyst firm Everest Group said China's business process outsourcing (BPO) industry has grown almost three times from $1.2 billion in 2007 to $3.5 billion in 2010. More than half (65 percent) of it came from IT outsourcing.

Everest added that outsourcing in China will continue to flourish. The country's BPO market could hit the $10 billion mark by 2015 and may well become an ideal offshore ITO service provider in the near future.

China's already large workforce (5.8 million in 2010) has been reinforced with engineering and management graduates. However, signing contracts with BPO companies in China is harder than with their counterparts in India and the Philippines. Everest likewise stated that China doesn't offer a clear advantage like the other two - higher labor costs and lack of enough workers with English communication skills in the country are seen as drawbacks by investors.

On the other hand, companies see China as a great way to tap emerging markets in Japan, Hong Kong, and Korea.


PBN Domain Registration: Where To Register A PBN Domain

by admin @ SEO Brothers

Figuring out where and how to register your PBN domain is a fairly important aspect to building a successful private blog network. Depending on the size of your network and the number of domains you have the importance of choosing your registrar increases even more. I wanted to outline some of the options and things…

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India to Discuss Outsourcing Concerns with Obama

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India to Express Outsourcing Woes with US President Obama

India will discuss the recent US anti-outsourcing moves with President Barack Obama in his visit to the country on November 5. This is according to India’s External Affairs Minister S.M. Krishna.

"There are some serious reservations being expressed about India's IT industry about outsourcing and the tightening of visa rules. These are the kind of issues that will be discussed," Krishna said. He added that there may be outsourcing issues between the two countries, but these will not affect their strong relationship.

A US bill was passed a few months ago, stating that visa fees for IT workers coming to the US will increase. This will have an impact on the outsourcing industry specifically those Indian workers who are transferred to the US. Meanwhile, Ohio Governor Ted Strickland issued an executive order that bans the transfer of government IT and back office projects offshore. 




Global Procurement Outsourcing Posts 17% Growth

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

Procurement outsourcing market posts remarkable figures

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

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

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

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


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

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

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

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


PH BPOs Aim to Tap New Markets in Asia-Pacific Region

by @ News Feed

BPO firms to tap new markets in Asia-Pacific region to further promote PH BPO industry

To further promote the business process outsourcing (BPO) industry of the Philippines and reach the target annual growth rate of 30 percent, BPO firms in the country are eyeing to tap new markets in the Asia-Pacific region.

According to Senior Executive Director Gigi Virata of the Business Processing Association of the Philippines (BPAP), the country’s BPO industry can enter new markets such as China, Sri Lanka, and India as it has maintained its competitiveness in BPO for call center work and non-voice functions.

However, talent that meets client requirements remains a challenge for the industry. To improve the quality of recruitment and increase the hiring rate in the industry, BPO firms are working together with the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) to implement training and recruiting development programs.

Meanwhile, businessmen think computerized training and increased use of English in local TV can further improve the English communication skills of Filipino workers who wish to enter the BPO workforce.


Debt Watcher Retains Investment Grade Rating for PH

by @ News Feed

As the Philippines carries on as having strong economic growth, sound political environment, and improving finances, credit rating agency Fitch Ratings has recently affirmed its outlook and investment grade score for the country.

Fitch Ratings gave the Philippines a BBB- investment grade score last March 2013, along with a stable outlook.  

For this year, their decision to retain the investment grade and outlook is driven by the positive performance of the country, which includes improved government spending, stable consumer prices, and resilience against external volatilities.

Some of the factors that were seen to contribute to the continuous growth of the Philippine economy are the consistent flow of remittances, robust business process outsourcing (BPO) sector, and low interest rates.

Meanwhile, Fitch noted that challenges such as asset price bubbles and excessive inflation will be minimal. The country's external finances helped protect it against the financial market volatility from the decrease in the US Federal Reserve's stimulus program.

The current account surpluses of the Philippines likewise cushioned external impacts, resulting to a 7% GDP for its net external creditor position in 2013. Other counterparts received a -12 in the BBB range.


ADB: BPO �not enough� to Alleviate PH Poverty

by @ News Feed

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

Volume of jobs created by BPO segment not sufficient

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

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

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

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

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


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Asian ITO spending trend to be reversed

by @ News Feed

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

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

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

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


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.


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.


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.


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.


Why SEO Outsourcing Is Good Idea For Startups?

by admin @ SEO Outsourcing UK

Startup businesses can immensely benefit from SEO outsourcing while concentrating on their core activities, in order to get everything rolling in a smooth way. There are a number of reasons for hiring SEO Outsourcing services. Building online presence Building online presence within short time can be helpful for startup companies to establish themselves in their […]

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ISG Releases 2016 Q1 Outsourcing Index

by @ News Feed

ISG Q1 2016 Outsourcing Index

According to the Outsourcing Index released by technology insights and market intelligence and advisory services company ISG (Information Services Group), smaller deals, which are contracts worth $40 million or less, rose 40 percent to $4.1 billion. Contracts that underwent changes surged 48 percent to $2.8 billion. Also, the volume and value of outsourcing contracts across the globe increased during this year’s first quarter.

The ISG Outsourcing Index interprets data collected from commercial outsourcing contracts with an annual contract value (ACV) of $5 million or more and it found that the ACV for the first quarter of this year climbed 20 percent to $6.1 billion.

It was also discovered that Q1-2016 is the second quarter that saw a contract volume exceed the 400 mark with 404 deals. The first ever was Q2-2015 with a record volume of 446. Compared to last year, the volume of contracts is 32 percent higher, propelled by restructurings which make up 78 percent or 173 of the total number of deals. Also, information technology outsourcing (ITO) contracts grew 51 percent to 301 deals. On the other hand, only five mega deals (contracts that are worth $100 million and more) declined from last year’s seven.
During the last 12 months, ACV totaled $24.7 billion. This is the highest level in the last four years and volume peaked with 1,542 contracts.

ISG cited their forecast for this year, saying 2016’s first quarter did far better than 2015 with ACV surpassing $6 billion for the second quarter which is an indication of a healthy market flow.

John Keppel, Partner and President of ISG, further explained that there’s a balance between the volumes of new deals and restructured ones. This means that there are a lot of opportunities in the market. Moreover, even if the use of the cloud is gaining traction, strong growth in ITO value and volume proves that IT solutions are positively impacting multiple areas in the outsourcing sector.

The total value of ITO contracts in the first quarter grew 24 percent to $4.2 billion. Business process outsourcing deals climbed 12 percent to $1.9 billion, despite a slight decline in the volume of BPO deals.


Return On Investment With Digital Marketing

by Shawn Denney @

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

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Link Building FAQs

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5 Top Tips For Acquiring Quality Links Acquiring quality links is important for SEO but it can be a long and complex process. Here are 5 top tips to make the link building process a little more straight forward while still focusing on quality links! Diversity is Key. Using a diverse selection of sources and …
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Indian Animation Industry to Reach $1bn by 2012

by @ News Feed

Animation Industry in India

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

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

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



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.

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

Survey: Asian Outsourcing Sector has Room for Growth

by @ News Feed

Outsourcing Market in Asia Continues to Thrive

The Grant Thornton International Business Report (IBR) 2014 shows that as the outsourcing industry in Asia continues to grow, opportunities are seen increasing as well. Businesses in the region are said to be experiencing more mergers and acquisitions, higher costs, and more talent management challenges which is why more firms are outsourcing business functions.

Data from the IBR show that only 42 percent of businesses in the Asia-Pacific region are outsourcing or are strongly considering outsourcing. Japan has been identified as the country that favors outsourcing the most with 60 percent. Thailand is next with 48 percent, 38 percent for India, Hong Kong with 18, Vietnam with 12 percent, and the Philippines with only four percent.

As for the rest of the world, Brazil and Argentina are some of the top outsourcers with 53 percent and 64 percent, respectively. This is a strong indication that outsourcing is more favored in Latin America than their counterparts in Asia.

The survey also highlighted that like in Hong Kong, where only 27 percent of the total number of survey participants accept outsourcing as a business tool, the rest of businesses based in the Asia-Pacific region are worried over losing control of a key process.
Meanwhile, Laure Mathieu, Managing Director of Outsourcing - Grant Thornton Hong Kong, said trust is the most important thing in outsourcing relationships. Goals should be set and achieved as a team. This will help both parties ensure the operation is managed properly.

Other factors that affect the perception of business executives towards outsourcing are the high cost of implementation (15%), lack of a strategic outsourcing plan (7%), and complexity or risks associated with hiring a contract service (7%).


Attrition Rate Seen Dropping in PH BPO Sector

by @ News Feed

One of the biggest issues in the business process outsourcing (BPO) industry of the Philippines is the high staff turnover rate. However, many experts have observed that BPOs are coming up with better strategies to make their employees stay.

Drop in PH BPO sector attrition rate

Tower Watson, a global professional services company, revealed the results from their survey wherein the attrition rate in the Philippine BPO sector decreased to 20 percent last year, which is said to be the lowest since 2007.

Back in 2011, the attrition rate was at 33 percent, while in 2012, it clocked in at 24 percent, and just two years ago, it posted a 26-percent staff turnover rate.

According to Vangie Daquilanea, Global Data Services Practice Head of Towers Watson Philippines, the BPO sector has utilized several strategies in talent acquisition, one of which is expanding operations and sourcing from areas outside the National Capital Region (NCR). Some of the provinces that the industry is seen tapping for sourcing are Cebu, Davao, and Southern Luzon. This somehow affected the movements and attrition activity in NCR.
The report also noted that wages in Central Visayas are lower by 23 percent versus the wages in NCR, making the region a feasible location for BPO firms. The Towers Watson report also reinforces another survey where Cebu was named as one of the top 8 outsourcing destinations in the world.


PH IT-BPO Posts 21.8% Growth in 2010

by @ News Feed

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

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

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

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


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 BPO Revenues Predicted to Reach $25B by 2016

by @ News Feed

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

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

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

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

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

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


Global TPI Index Shows Companies Moving to Multi-Sourcing

by @ News Feed

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.


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.


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.

Survey Shows Mid-sized Firms Get More out of Outsourcing

by @ News Feed

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

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

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

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


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 […]

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. 


IAOP Says Outsourcing Seen as Vital Business Asset Worldwide

by @ News Feed

The International Association of Outsourcing Professionals (IAOP), a leading outsourcing industry body, said organizations around the world see outsourcing as a vital business asset. It is �one of the most powerful tools available today� when it comes to establishing better companies and economies.

According to IAOP Chairman Michael Corbett, about four million people are employed in the top 200 companies in the global outsourcing industry. "It's time for us in developed economies to realize the value of outsourcing and to start investing and competing for a share of the global, multi-trillion pound outsourcing industry," Corbett said.

Outsourcing is increasingly viewed as a vital and �mature� business practice. IAOP said the 10 percent revenue increase in 2010 indicates that more companies are outsourcing work and they are becoming more confident in the industry and economy.


MicroSourcing Opens New Office at Bonifacio Global City

by @ News Feed

MicroSourcing Opens Headquarters in Bonifacio Global City

As part of the company’s expansion to meet the needs of clients, MicroSourcing opened a new office last June 1 at Bonifacio Global City in Taguig.

MicroSourcing’s new office has 200 production seats divided over two work floors, 21 management and shared services seats, two conference rooms, a server room, and a restaurant. It occupies the entire 18th floor of Picadilly Star Building, home to a long list of multinational companies including Mindshare/Ogilvy, InContact, and DOCOMO interTouch.

Bonifacio Global City lies at the center of Metro Manila, right next to the Makati central business district. It is a high-end location with a lot of new luxury residential and commercial buildings. It is the location of choice for most multinational financial institutions such as HSBC, JP Morgan and Deutsche Bank.

The emergence of the new PEZA-accredited building has sparked an increase in the number of business process outsourcing (BPO) companies that are starting to set up their delivery centers in Fort Bonifacio. Moreover, the availability of 24/7 services catering to the average BPO worker is improving rapidly. This further makes the area a very conducive environment for BPO companies.


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

by @ News Feed

PH Outsourcing Employees Need to Up their Game in Selling

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


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


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


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


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




What are SEO Ranking Signals?

by Mr. SEO @ Mr. SEO

Google is notorious for not giving us the exact algorithm of how they rank websites. Sometimes they give hints as to the metrics they use, but in some cases these pronouncements can be confusing or contradictory. Most of the time, they just tell website owners to basically not to worry about SEO and that their […]

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PH Unemployment Rate Drops

by @ News Feed

According to the Philippine Statistical Authority (PSA), the Philippines' unemployment rate dropped from 7.3 percent last year to 6.7 percent in July this year.

In addition to that, findings from the Labor Force Survey (LFS) indicated that 93.3 percent of the Philippine workforce (Filipinos aged 15 upwards) are already employed. The National Economic and Development Authority, on the other hand, pointed out that a 2.8 percent growth was seen in the number of employed Filipinos - pushing the total from 37.4 million in July 2013 to 38.5 million in July 2014. Overall, 1.06 million jobs were created in one year.

PSA noted that workers who are looking for additional opportunities other than their current jobs are considered underemployed, and the underemployment rate also decreased from last year's 19.2 percent to 18.3 percent. It was likewise stated that the National Capital Region (89.7 percent), Central Luzon (91.7 percent), and CALABARZON (92 percent) posted employment rates which are lower than the national average.

Socioeconomic Planning Secretary Arsenio Balisacan said the government should continue in developing the economy and its labor market so it could attract and accommodate business and investments. He noted that labor-intensive industries should cultivate the workforce and urged businesses to maximize the supply of workers in the country. Demand for labor can also be improved through the infrastructure program of the government, particularly in regions that need extra hands in private construction such as Visayas and other areas affected by disasters. As for services, sales should be increased to funnel in job opportunities. Some of the sectors that can address these issues are business process outsourcing (BPO) and tourism.


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.


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.


Best Local SEO Tips and Resources for 2017

by Brian Armstrong @ 1st on the List

Local search has become a de facto standard for businesses that service consumers in specific locales. Your online presences is just as important (if not more important) than your offline presence. If you are new to the scene of Local SEO and search optimization for your local or small business, here are five Google local […]

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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.


Iloilo Lacks Enough Space to Meet BPO Demand

by @ News Feed

Not Enough BPO Office Space in Iloilo

With the expected rise in the number of BPO locators in Iloilo City next year, Jessraf S. Palmares, Acting Chairman of the Iloilo Federation for Information Technology (IFIT), said the Philippine’s third New Wave City lacks enough space for outsourcing.

“We have no more developed sites for BPOs,” said Palmares in the recently concluded Commission on Information and Communications Technology (CICT) Convergence 2009. “The four buildings which BPOs currently use are malls whose top floors had been converted into cyberparks.” He said they are encouraging the private sector to convert empty lots into cyberparks.

Palmares added that Iloilo produces 20,000 graduates annually, and they want to “bring the work where the talent is.” However, only 5,000 of the total number of graduates have taken IT and IT-related courses and the city needs more to meet the BPO demand. He said it is necessary to conduct training programs and train graduates to be more competent in web management and development.



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.


3 Search Engine Optimization Agency Tricks You Need for a Strong SEO Summer

by Stephanie Devers @ Business Marketing Engine

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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.


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

by @ News Feed

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

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

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



Employers Turn to HR Outsourcing as Economy Recovers

by @ News Feed

As the economy slowly bounces back from the crisis, human resources (HR) outsourcing has become the answer for thousands of small and medium-sized employers who want to reduce employment costs and HR risks, as well as improve employee performance. This is based on a recent white paper entitled “Preparing for the Rebound: How Human Resources Outsourcing Can Help Business Through Uncertain Economic Times” from CPEhr, a leading HR outsourcing firm.

Outsourcing human resources to reach goals

"Reports indicate that as the economy begins to recover and employers look to rehire lost personnel, their priorities will continue to focus on cost-containment and improving efficiencies," says Ari Rosenstein, CPEhr's Director of Internet Marketing. "Our research points to outsourcing human resources as a cost effective and efficient way to reach those goals in 2010."

The said white paper aims to determine the role of HR outsourcing in supporting three major employment factors: lowering operational costs, reducing employment risks, and improving efficiency.


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RP BPO facing incentives challenges

by @ News Feed

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

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

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

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

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

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



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by Jennifer Slegg @ The SEM Post

Site navigation is one of those areas that has many facets of importance when it comes to both SEO and usability.  A good site navigation makes it easier for Google to crawl and index a site, but it also needs to be usable for visitors to the site, since many use that same navigation to […]

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More Jobs in BPO for 2014 Graduates

by @ News Feed

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

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

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

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


Front End vs Back End vs Full Stack Developer: Decode The Right Developer to Hire

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  If you’re looking to create or enhance your website, then you are probably on the look out for a really great web developer who can assist you with this. Hence, the scenario of going through job sites to find the right person and then stumble upon titles such as “front end,” “back end” and […]

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Companies Must Focus on Strategic Contract Management

by @ News Feed

Strategic Sourcing Contract Management

Fifty-five percent (55%) of businesses do not give enough attention on the strategic management of outsourcing contracts. Instead, they focus more on the operational aspect. This is based on a Gartner survey of companies from different industries worldwide.

According to Frank Ridder, Gartner research director, "many organizations struggle to develop an effective and efficient sourcing environment, which is necessary to achieve positive sourcing outcomes." He added that companies fail to manage outsourcing relationships effectively because service providers usually tell buyers that they can deliver more than what they are actually capable of.

To have an efficient and long-lasting outsourcing relationship, Ridder suggested that sourcing activities must be in line with business goals and a flexible sourcing environment must be established to be able to adapt to the market and organization.


RP dubbed �destination of choice� by UK-based firm

by @ News Feed

Northgate Arsino (NGA) CEO, Mike Ettling commended the Philippines as a voice hub at a CEO Forum at the Tower Club in Makati City. NGA is a business process outsourcing (BPO) company from the UK and is one of the world's five largest HR software service providers.

�From our perspective, the Philippines has been a very successful venue for our business,� Ettling commented. �The Philippines is the business destination of choice for our voice services because of the high quality of education and English fluency, its affinity with the United States market and service-oriented approach.�

Ettling described the nature of NGA's service delivery as requirng more empathy and a more emotive response; as well as being far more complex. Filipinos were described by Ettling as having a �psyche of service� as they are naturally accommodating and have a solid work ethic.


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.



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.


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.



Is SEO Outsourcing the Right Choice for Your Small Business?

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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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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.


IT Leaders Go Beyond Cost Savings

by @ News Feed

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

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

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

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

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


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.


Companies from Japan to Invest in the Philippines

by @ News Feed

According to the officials of the Philippine Embassy, more investment opportunities from Japanese companies are expected this year.

They also noted that even if Japanese companies are looking into creative content and game development, outsourcing, and infrastructure projects, the South, through the Mindanao peace accord, is also a premier destination for agribusiness and mining investments.  

Hans Siriban, Second Secretary and Consul of the Philippine Embassy in Japan, said Japanese investors are considering the Philippines, Vietnam, and Indonesia as prime destinations for new ventures.

According to Ambassador Manuel Lopez, the Philippines is a convenient ASEAN economy for Japan because of its proximity, and it's probably the most affordable. He said tax perks for export-oriented businesses and putting up business process outsourcing (BPO) operations are what Japanese firms are interested in.

Meanwhile, Dita Angara-Mathay, Commercial Counsellor of the Philippine Embassy in Japan, said enterprises are eyeing infrastructure and transportation investments in the country.

It was also noted that the Philippines is poised as Japan's gateway to Southeast Asia. Another sector in the country that is said to have caught the attention of Japanese firms is the manufacturing industry.


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.


Survey Says CIOs Optimistic about 2011 Growth

by @ News Feed

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

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

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

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

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


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KPMG Sees Shift in Outsourcing Landscape

by @ News Feed

The demand for outsourcing services is nowhere near slowing down, and KPMG Director Claudio Altini sees that the format of the outsourcing industry continues to evolve. Gone are the days when cost reduction was the only reason companies outsource business processes, because they are now looking for higher value for their money. Even with the depressing condition of Europe's economy, outsourcing is still seen as a viable business solution.

Companies are now more cautious when it comes to selecting providers and are going beyond margin and overhead issues. Altini said customers are looking for rates, results, and responsibilities, which vendors can use as a pattern for business proposals. He adds that companies are looking for flexible terms that can be changed as the company expands. They are also seeking solutions that are suitable for the needs of the company, without going over budget.

The cheapest outsourcing deal is no longer attractive nowadays. The best way to land decent deals is to simplify and innovate processes according to the needs of the client.


Survey Reveals 2011 Major Trends in Dutch IT Outsourcing

by @ News Feed

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

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

Here are some of the evidences of the said development:

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

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

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

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


Study Shows Demand in IT Outsourcing Increases

by @ News Feed

Majority of service providers said there is an increasing demand for IT outsourcing. This is based on the recent study of EquaTerra entitled �Advisor and Business/IT Service Provider Pulse Survey�. Also, 68 percent predicted that they will see this market trend up to the end of this year.

"The bulk of outsourcing demand is still defensive, aimed at short-term cost-cutting and cost-containment strategies," said Stan Lepeak, managing director of global research.

The survey also found out that with the current global economic crisis, outsourcing has become a cost-cutting measure for more buyers.


10 Absolutely Simple SEO Tips How To (Google Boost) Your Web Site

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

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RP to Benefit from Changes in Global Workforce

by @ News Feed

The diminishing global workforce will be a good thing for the Philippines, but according to Towers Watson regional managing director Bob Charles, strategies such as giving incentives, deferment of early retirement, and establishing a strong leader-team member relationship must be implemented by top managers to retain employees.

Young talent in the country must remain engaged in their work for retention and to prevent them from moving abroad to work. "The primary drivers of engagement for �Generation Y' is career advancement, genuine concern that the company is making a difference, and opportunity to give input," Charles added.

He added that outsourcing work to Asian countries with young talent will be an �increasing trend�. The Philippines, having more births than other countries, can take advantage of the changing face of demographics, with the decreasing birth rates seen in different parts of the world.


Debt Watcher Surprises PH with another Upgrade

by @ News Feed

Standard & Poor's, a renowned financial services company, unexpectedly raised the Philippines' rating from BBB- with a stable outlook to BBB, likewise with a stable outlook. The upgrade was considered a surprise because the organization did not change its outlook to positive first. Nonetheless, it is the highest credit score the country has seen so far.

According to S&P, the score was raised because of the visible efforts implemented by the current administration in improving structural, administrative, and institutional factors, and governance.

Meanwhile, even with the upcoming 2016 presidential elections, the debt watcher is concerned with how momentum and direction of the country's economic growth will be maintained. S&P further explained that the progress brought on by government-generated revenue, improved spending habits, progression of the country's debt profile, and sound investment environment will buoy the economy from major challenges under the next administration.

In addition to that, the higher rating indicates the strong macroeconomic position of the nation, which in turn can help the country against external shocks. Two of the country's dollar-earning industries are expected to not only offset trade deficits of 6-9 percent of GDP, but keep surplus levels at bay as well. These are remittances from Filipinos working abroad and services exports from the business process outsourcing industry.  

One of the problems identified by the debt watcher is the high unemployment and underemployment, pulling the country's income level down.  

It also noted that growth challenges remain even with the improvements fuelled by structural changes that boosted the GDP from 3.2 percent five years ago to 4.3 percent this year.


Increase Your Websites Conversion Rates

by Alexander Felsch @ NYC SEO Authority

The Success Of A Website Is Measured In Conversions Many advertisers and internet marketers use the number of visitors or page views to measure the success of a website. However, the naked truth is that a successful website is rather about conversions. If you attract thousands of visitors per month, but you only get one [...]

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Pres. Arroyo Urges Lawmakers to Pass DICT Bill

by @ News Feed

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.


Social Media: Paid vs. Organic

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With over 2.3 billion people on social media last year and 2.5 billion projected for 2017 according to Statista, it’s hard to deny the impact that social media can make on consumers. Businesses of all industries should understand the benefits…

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Indian BPOs to Benefit from US Healthcare Reform

by @ News Feed

Opportunities for BPOs from Healthcare Reforms

As the US House of Representatives passed the healthcare bill that will bring about 32 million Americans under insurance cover once it becomes a law, it is expected that work such as insurance and claim processing tasks will be transferred to Indian BPO service providers. Insurance companies will be looking for outsourcing service providers that will take on back-office tasks including member database management, claims and new member enrollment processing, and support services.

‘‘All existing IT systems including the electronic medical records, patient information systems and other technology platforms are going to stay untouched, barring some minor to medium tweaking, which will mean some additional work for existing providers like IBM, Accenture and EDS (HP). It's possible that minor portions of these might get shifted to India as well, but the sizable opportunity is for BPOs,” said Dr. Saji Salam, healthcare expert in Minneapolis.



Google Penguin 3.0 Algorithm – Facts, Disaster and Reliefs

by Mohnesh Kohli @ Mohnesh Blog

Google rolled out penguin 3.0 on Friday night (October 17th, 2014) after a gap of more than a year and still the full update is not complete. Google first penguin algorithm was launched on 24th April 2014 to fight against the spam link creating techniques used by webmasters, SEO and owners of website to get […]

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3rd International Outsourcing Summit to Highlight Non-voice BPO

by @ News Feed

International Outsourcing Summit Philippines 2011

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

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

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

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


PH Recognized as One of the Leading Global Service Exporters

by @ News Feed

PH Services Exports Increased 3.6%

World Bank recently recognized the Philippines as one of the leading global service exporters, thanks to the business process outsourcing (BPO) industry. They also noted that for the country to progress, travel and tourism should also be developed.

According to World Bank senior trade economist Sebastian Saez, the factors that affect the services sector are infrastructure, manpower, and excellence of institutions. “The experience of exporting outsourced business services in the Philippines shows that by creating an enabling environment where the private sector can deploy its creativity, developing countries can reap the benefits that services exports opportunities are opening,” Saez said.

Services exports increased 3.6 percent per year, from nine percent in 1999 to 21 percent in 2009.

The Philippines holds 15 percent of the global BPO industry, with India (37%) at the top spot and followed by Canada (27%).

According to Business Processing Association Philippines (BPAP) chairman Fred Ayala, during 2010, the country’s BPO industry employed around 500,000 people and yielded $9 billion worth of services. The industry plans to reach $25 billion in revenue by 2016 and employ 1.3 million.

World Bank study also emphasized that the tourism sector should be cultivated and reforms outlined in the National Tourism Development Plan (NTDP) should be addressed to maximize the sector’s potential and in the long run, help resolve poverty issues in the country. 


Companies can Benefit from Outsourced Contact Centers

by @ News Feed

Outsourcing can be beneficial for companies when it comes to making contact center operations more efficient and aligning processes with business goals. This is according to The Contact Centre Business Transformation report by business information and market analysis firm Datamonitor.

With outsourcing, companies will be able to reduce expenses in infrastructure and operational costs, while improving service delivery and eliminating business risks. "In light of escalating costs and service demands we are seeing a focus on new and innovative contact centre operating models," said Peter Ryan, Datamonitor's lead analyst for call centres and business process outsourcing.

Teleperformance UK's Chairman and Chief Executive Jeff Smith said that companies with outsourced contact centers and operating within a reduced budget can also maintain communication with their customers.


BPO Remains Revenue Generator for Cebu

by @ News Feed

The business process outsourcing (BPO) sector, which posted a yearly growth rate of 20 percent, is expected to provide jobs and opportunities in the province of Cebu which could echo into the coming years.  

Francis Monera , President of Cebu Property Ventures Development Corp. (CPVDC), the developer of Cebu IT Park,  said the growth of BPO resulted to an increase in the demand for office spaces. That is why property developers in Cebu are investing in office leasing. 

Monera added that factors such as a large educated workforce from nine large universities and the healthy fiscal environment continue to attract companies and investors to establish operations in the province. In fact, it was reported that Aegis People Support recently launched its own Aegis Tower Cebu at the Cebu IT Park. 

According to Monera, Cebu Park District is set to house 20 percent more of its current 50,000-strong workforce once the buildings are completed. Some of the firms that are said to be expanding are Stream Global, Convergys, HP, Fluor Daniels, Dell, and JP Morgan & Chase. 

Monera also said Cebu is being primed as the second most viable BPO destination in the Philippines, with Manila being the first, and that more jobs will be provided once the hubs start operations. 

As for service offerings, Jerry Rapes, Chairman of information and communications technology (ICT) at Cebu Chamber of Commerce and Industry (CCCI), stated that with additional training and proper allocation of skills to job openings, Cebu's candidates will be competent enough to handle knowledge process outsourcing (KPO)-related processes. 

This was also supported by Monera, who's also the Chairman of the Board for Cebu Educational Development Foundation for Information Technology (Cedf-it). He identified the private sector, academe, and local government as a team, striving to improve the skills of potential candidates.


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If you have a website online you have most likely received unsolicited emails for SEO services; a client recently forwarded me one which he had received that noted problems with his website’s optimization and promised to improve his website’s SEO ranking. I wanted to write this post since many of our clients have questions on…

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India's BPO Market Share Shrinking

by @ News Feed

According to a survey, the Philippines, China, and Brazil are now at the forefront of the global business process outsourcing (BPO) as India's $20-billion (Rs 1-lakh crore) BPO sector lost 10 percent of the global market share in the last five years.  

It added that for voice-based process, the Philippines, Malaysia, China, Egypt, Morocco, Brazil, Chile, Polan, Mexico, Columbia, and Ireland are emerging as the preferred destinations.

During 2005 and 2011, the Philippines saw a 69 percent annual average growth for its BPO sector, while Sri Lanka posted 28 percent, Ukraine grew 59 percent, 27 percent for Russia, Argentina with 37 percent, and 35 percent in Costa Rica.
The survey noted that the Indian BPO sector needs to create a better platform for outsourcing so that developed countries will be properly informed and that it can resolve industry issues.  

Other competitors were recently seen reinforcing key competences. For instance, China is reinforcing its English proficiency. The Philippines is also a threat to India's outsourcing industry as the former is the second-largest BPO hub in the world.



UK Outsourcing Activity Posts 35% Growth this Year

by @ News Feed

UK's Scarce Manpower Drives Outsourcing Growth

In a survey of 2200 small UK firms conducted by, it was found that outsourcing activity increased 35 percent this year. Outsourcing destinations are developing nations such as India, Pakistan, and the Philippines. China posted a 20-percent growth of the total outsourcing work from UK small businesses.
Meanwhile, respondents said they will be hiring more freelancers abroad in 2015, while 43 percent said they are looking to outsource more work overseas.

UK businesses outsource mainly because they lack manpower to work on specific tasks such as complex programming and IT, and to save on costs which will enable them to increase margins and capacity. Forty-eight percent said they outsource work so they would not have to turn customers away.

Fifty-two percent of the respondents also said outsourcing is enabling them to grow over the past 12 months. Meanwhile, 42 percent of small business owners said with the increasing demand for innovative solutions and services, and to compete with advanced industry players, they resort to outsourcing.

According to Bill Little, European Director of, operational cost reduction is no longer the main driver for UK businesses to outsource. They are more focused on increasing the capacity of their operation so they are able to accommodate more of their clients. In fact, UK small businesses are seen maximizing incoming work that they can’t do themselves. 


PH Cities Join Top Outsourcing Hubs in the World List

by @ News Feed

The Philippines is one of Top Outsourcing Hubs in the World

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

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

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

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


Software Development Deemed as Next BPO Battleground

by @ News Feed

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

Software Development to Play a Major Role in BPO Services

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

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


Property Investments in the Philippines Expected to Grow

by @ News Feed

CBRE Philippines Founder and Chairman Rick Santos stated during a press conference that the property sector of the Philippines will remain strong. The industry is said to be propelled by its remarkable performance last year in all real estate segments namely office, residential, retail, and leisure.  In addition to that, it was witnessed that while markets in Asia experienced a slowdown, the Philippines remained resilient.  

Also, amidst the series of unfortunate events that the Philippines went through in 2013, the local real estate sector remained afloat and foreign investors began noticing the country as a premier investment destination.

Santos stated that vacancy rates are below five percent due to the high demand from the market. Rental rates in national commercial business districts (CBDs) began increasing, but are still found to be one of the sources of affordable investment properties all over the world at $26 per square foot annually. Amongst all the major international CBDs, Makati is still offering the lowest rents for prime spaces.  
Meanwhile, CBRE Vice-chairman Joey Radovan said information technology - business process outsourcing (IT-BPO) sector accounts for majority of office space take-up in the country. Moreover, he said Metro Manila and Metro Cebu continue to gain traction as the best outsourcing destinations worldwide, and are climbing the list of top 10 outsourcing destinations in the world.

Even alternative delivery locations are experiencing more investment activities as large and mid-sized firms expand operations. He added that for this year, the anticipated 600,000 square meters of office space occupancy this year will be made up of outsourcing operations for call center and back office processes.

Santos predicted that the BPO sector will continue to develop due to the demand for back office outsourcing from banks and financial institutions from developed countries.


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


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.


SEM and PPC are Two Different Marketing Terms

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In the digital marketing world, SEM and SEO are the most discussed topic along with other marketing elements, but these concepts are sometimes misinterpreted to be the same thing. Although both are search engine services, there are some differences between … Continue reading

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7 Critical Questions When Outsourcing SEO

7 Critical Questions When Outsourcing SEO

Convince and Convert: Social Media Consulting and Content Marketing Consulting

Many agencies without full service digital marketing departments choose to outsource any SEO work to a specialist. While I believe that the present focus on good content makes SEO easier, not harder

IT-BPO still Main Revenue Generator for PH Services Sector

by @ News Feed

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

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

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


PH now a Prime Location for Software Services

by @ News Feed

The Philippine Software Industry Association (PSIA) said the country is at par with other international �mature locations� for software services as it continues to post significant growth.  Moreover, the organization stated that the industry is one of the fastest growing segments of outsourcing, employing close to 50,000 workers in 2011.

Global consulting and advisory firm Everest Group identified the Philippines as a mature location for software services. The country currently has more than 50 software services operators. Other �mature locations� are China, Brazil, India, and Poland.
According to PSIA President Nora Terrado, the key growth drivers of the country's software services sector are extensive transactions with foreign markets and increasing demand for software services.

Terrado added that the research and development activities concerning software and other platforms of technology are propelled by the mass usage of consumers in the country. In fact, last year, the country's software industry was seen to have grown 37 percent, contributing $993 million in revenues.

On the other hand, Terrado said changes should be made regarding low wage rates, unstable employee retention rates, working permit issues, and proper vendor management processes. She stressed that locations that can overcome these challenges will definitely dominate the software services industry.


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.


Google Quality Impact of Using NoIndex on Large Part of a Site

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Many SEOs use the noindex page for a variety of reasons, such as for duplicate landing pages for tracking, for crawl budget purposes and for content that site owners are concerned is below a quality threshold.  But does Google do anything with those noindexed pages, since they are still crawled by Googlebot, for assessing the […]

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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.




CICT Downgrade to have Negative Impact on PH BPO

by @ News Feed

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 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.


PH Real Estate to Remain Strong with BPO Demand

by @ News Feed

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

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

BPO sector expected to post $25B in revenues

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

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


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Gartner Predicts IT Expenses in MEA Region to Reach $93bn

by @ News Feed

MEA IT Expenses

Research and consultancy firm Gartner predicts that overall IT spending in the Middle East and Africa (MEA) region will increase by 6.3 percent, from $88.51 billion in 2011 to $93.87 billion this year.

Peter Sondergaard, Gartner’s Senior Vice-president and global head of research, said the growth rate throughout the region was larger in 2011 compared to what it is now. He added that the cloud, social media, mobile, and information are four factors that will affect IT organizations and technology providers in the Middle East, but then again growth for the organizations could be hindered by challenges such as the market for cloud services, talent shortage, and large volumes of data to be handled.

These challenges will then push CIOs in the Middle East to outsource construction of infrastructure and application environments. With ample bargaining power and proper vendor management skills, CIOs are likely to land good outsourcing deals, added Sondergaard.

It is expected that the banking and securities industry, particularly in the Mena region, will post the fastest growth, followed by transportation and healthcare.


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.


PH BPO Revenues to Reach $25B by 2016

by @ News Feed

2016 Revenues of PH Outsourcing Sector

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

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

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

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


PH Receives another Investment Rating Upgrade

by @ News Feed

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

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

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

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

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

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

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

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

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

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

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


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The post Finding Good Keywords to Rank Well in YouTube SEO appeared first on Design and Rank.

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.


AU BPO Driven by Document Management

by @ News Feed

According to a study done for the Australian Business Process and Outsourcing Association, most business functions sent out by Australian companies are related to printing/document management, propelling the country's business process outsourcing (BPO) sector.

Forty-four percent of the 216 companies that participated in the study stated that they are currently outsourcing at least one business process. Print and document management (PDM) is the top business process being outsourced by Australian firms (18%). This was followed by human resource (HR) process at 15%, which is predicted to grow 23 percent in a year or so, and finance and accounting (F&A) at 13%.

The report also states that BPO transactions from large Australian companies employing 1,000 to 5,000 workers will definitely increase. This group accounts for one-third of the survey participants.  

Russell Ives, Director of Global Process Services at IBM Growth Markets, said the report clearly shows that Australia's BPO industry has indeed evolved and diversified over the past 10 years. Outsourcing has become more than just a tool to cut costs - it has enabled companies to improve business strategies.
Ives also noted that business executives are looking into the benefits of outsourcing which include improvement in financial flexibility, better feedback from customers, more opportunities, tapping new markets, and maximizing of prospects.

Aside from the traditional business processes in outsourcing, the adoption of the cloud is now increasing as 35 percent of the companies are considering the use of the cloud. Furthermore, 15 percent have already integrated cloud computing as an outsourcing strategy.


Data Privacy Act Seeking Aquino's Approval

by @ News Feed

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

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

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

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

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

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

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


Number of PH BPO Workers Hits 1 Million Mark

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PH BPO Employee Count Reaches 1 Million

According to Jose Mari Mercado, President of the IT and Business Process Association Philippines (IBPAP), with the bullish performance of the local outsourcing industry in the last 10 years, it finally reached an employee count of one million.

The Philippines is known as the second strongest business process outsourcing (BPO) destination next to India. It is anticipated to earn $18 billion this year and the executive noted that they are still eyeing to hit 1.3 million employees in 2016.

He also recounted that during the early 1990s, the industry started from nothing, then emerged as the shining star of the Philippine economy with revenues amounting to $1.5 billion and employee count of 103,500 in 2004, and is now poised to increase earnings to $25 billion by 2016.

The industry also paved the way to improve the living conditions of a lot of Filipino people by providing well-paying opportunities. This has also presented an opportunity for a huge number of overseas Filipino workers to seek employment locally.
The industry body also pointed out that for every person directly hired by the industry, 2.5 support jobs are created.

The Philippines has been identified as the global leader for call center operations - even surpassing India. The country is also moving towards complex processes since Western organizations are also looking at the Philippines as an option for back office outsourcing.


PH IT-BPO Industry Readies 6-year Road Map

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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.


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

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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”. 

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. 

India may get Mega Deals this Year

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Mega Outsourcing Deals

Outsourcing contracts worth $1 billion may be granted to India this year as companies from different industries such as retail, banking, and telecom and utilities aim to cope with increased service demand and to reduce operational costs.

Early this year, British Petroleum’s IT outsourcing contract worth $1.5 billion was awarded to TCS, Infosys, and Wipro.

 “We see both large and small deals coming back to the table. Although the traditional verticals like telecom, financial services and manufacturing have gained volume, it has been observed that new verticals like retail, media and entertainment, healthcare are also driving growth,” said Suresh Sundaram, HCL Technologies global head for marketing and strategy.

“Deal pipeline has picked up and 2010 is certainly a strong year compared with 2009,” said Managing Director Sid Pai of TPI, a global sourcing advisory firm. According to the most recent TPI Index, outsourcing contracts increased by 47 percent in the fourth quarter of 2009 compared to third quarter of the same year.



PH IT-BPO Exceeds 2012 Revenue Goal

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IT-BPO Industry of the Philippines Surpasses Targets

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

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

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

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


RP BPO Reaches Half of Projected Revenue Goal for 2010

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

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

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


Acceptance of Outsourcing Boosts RP BPO

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In a recent industry forum and survey, the Philippine BPO industry is benefiting from the increasing acceptance of outsourcing.

BPO industry to increase workforce between 6-80%

BPO executives are confident that the industry will gain momentum in the next 12 months as about 80 percent of BPO firms intend to increase their workforce between six and 80 percent. “Our previous survey showed a return to optimism in the industry. The current survey shows that sentiment achieving momentum,” said Oscar Sañez, CEO of Business Processing Association of the Philippines (BPAP).

Aside from the expansion in the workforce, the BPO industry is also seeing an expansion in the service offerings. From process-based, the industry is also offering high-value services including knowledge-based processes.

Moreover, survey respondents expect a stronger and better working relationship with the Aquino administration. The automated election and smooth transition of the administration also had a positive effect on client and investor perception of the country.


Asian BPOs Expected to Grow 17.9% in 2011

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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.


Study Shows Sectors Spending More on IT Outsourcing

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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.


Expanding Your Reach: Digital Marketing Strategies For A National Audience

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You’re doing very well with your small brick and mortar store in your hometown and want to grow. Where do you go now? Online, of course! You create a beautiful website with all the bells and whistles to showcase and…

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European businesses unaware of outsourcing value

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

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

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

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

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


PH BPO Growth Driven by Young Talent, Gov't Support

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Philippine Outsourcing Industry Driven by Young Talent

Having a young workforce and strong support from the government reinforces the position of the Philippines as one of the top countries for business process outsourcing (BPO, or IT-BPO) services, according to Information Technology and Business Process Association of the Philippines (IBPAP) Senior Executive Director Gillian Joyce Virata.

Virata said BPO companies consider the Philippines and India in terms of having an educated workforce at competitive rates. Moreover, she noted that they are constantly coordinating with two to three firms every week, proving that the Philippines is an ideal offshore outsourcing destination.

Tholons, a globalization and investment consultancy firm, ranked Manila as the third destination in its top 100 global destinations list. The organization also mentioned the continuous effort of the Philippine IT-BPO industry in maintaining its position in voice-based outsourcing processes while venturing into other offerings such as healthcare information management (HIM)outsourcing , IT outsourcing, software development, game development, and animation.


British Experts Remain Optimistic on PH BPO

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In a formal meeting last Feb. 2, British-Philippines Outsourcing Council (BPOC) Board Members Ian McGowan and Richard Patterson told Philippine Ambassador Enrique Manalo that they have a �very positive� outlook regarding the position of the country's business process outsourcing (BPO) sector.

According to the Department of Foreign Affairs (DFA), the BPOC noticed that more and more clients, particularly from the UK, Australia, and Asia, are looking to outsource high-end services to locations that offer competitive pricing. Furthermore, McGowan and Patterson said outsourcing is not entirely unacceptable for established economies like the UK, stressing that businesses outsource to be globally competitive. They were also able to discern that with their experience with numerous British firms that are outsourcing to the country, when a position is filled in the Philippines, more job opportunities are created in Britain.
Manalo strongly supports BPOC's efforts in shaping the country to become a prime outsourcing destination for the British market, saying that the Embassy will persevere in working with BPO organizations to develop the industry. 

BPOC is a London-based, non-profit independent organization that aims to showcase the Philippines as a viable outsourcing location for British companies.



BPO Revenues, Remittances Predicted to be on Same Level by 2017

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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.


Strong Outlook Seen for PH Economy

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According to Fitch Ratings, the Philippines will retain its post as one of the bullish countries within Asia even though official growth targets are not achieved.

In an email response to BusinessWorld, Sagarika Chandra, Associate Director for Asia-Pacific Sovereigns at Fitch Ratings, said the growth forecast for the Philippines is 6.2 percent this year, and 6.0 percent next year as the country faces a steady inflow of remittances from overseas Filipino workers and bullish performance of the outsourcing sector. The local government’s gross domestic product (GDP) growth estimate for the country is 7-8 percent.  Chandra’s estimates are clearly lower than this forecast for 2015 and 2016.

This year, the Philippines’ growth is faster than emerging Asian countries, sans China - all of which are expected to post a growth average of 6.0 percent. However, for 2016, growth will be identical throughout the region.

The credit rating agency is also reviewing its GDP growth assessment for 2014. Fitch Ratings head for Asia-Pacific Sovereigns Andrew Colquhoun said the Philippines could face a lower outlook since the figures posted by the country are below the official 6.5-7.5% growth target range for 2014 due to the slower-than-expected economic growth in the third quarter.

The country posted a 5.8 percent GDP growth during the first nine months of 2014, wherein only a 5.3 percent growth was seen during the third quarter.


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.


Davao City Offers more BPO Office Space

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In 2015, Davao City is expected to yield an additional 30,000 square meters (sqm) of office space intended for business process outsourcing (BPO) operations.

Samuel Matunog, President of ICT-Davao said the additional BPO space is driven by the entry of new IT parks in the city. These include Lanang Business Park, Matina IT Park, Felcris, and other office properties offered by SM Malls. At present, there are 7,500 sqm. of BPO space in the region.

Matunog predicted that the additional office space will produce about 9,000 jobs. He added that the occupancy rate will not be an issue since Davao is considered as an alternative hub to ensure business continuity strategies.

However, he noted that there is an outstanding issue on the lack of manpower for the IT outsourcing segment. He said the volume of graduates should be beefed up to resolve this issue. At present, Davao produces 20,000 graduates and 20,000 full-time employees in various BPO segments including IT. Matunog also said Davao is looking to fill 9,000 positions in the BPO sector in the next two years.


More Jobs in BPO Expected as Peso Weakens

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Stronger Philippine Peso