The Outsourcing Week in Review: Wednesday, April 24, 2019

Outsourcing week in review
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Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

According to the International Data Corporation, IT and business services worldwide became a US$1 trillion industry in 2018, with growth of about 4.3% for the year. Furthermore, the legal process outsourcing market is expected to rise at a compound annual growth rate of more than 40% from 2017 to 2024. The Philippines should benefit significantly.

Strong market fundamentals will be reassuring while the country continues to invest in keeping its BPO industry competitive and cutting edge. Already, the nation’s major financial districts are dominated by BPO lessees, says Pronove Tai International Property Consultants in its ‘Metro Manila Office Market Overview Q1 2019’ report.

Better access to workers beyond the National Capital Region will continue to play an important part. Sitel has highlighted its countryside commitment at the recent Asia BPM Summit 2019; and now the Cordillera region has joined the list of locations suitable for BPO locators, according to Myrna Pablo, Department of Trade and Industry Cordillera Administrative Region regional director and EconDev committee chairman.

Investment in ongoing-training will also be critical. Japan has promised to help strengthen the Philippines’ IT skills, and good to its word, Japan representative Takahiko Shiba handed over a PHP196 million check to the Department of Trade and Industry to fund the Personal Computers for Public Schools Project Phase 5 in the Visayas and Mindanao, which has 380 school beneficiaries.

Government is also making the right noises.  Senatorial candidate Mar Roxas has recommended giving additional tax incentives to BPO companies that will train their employees to enhance their skills. Another, senatorial candidate Rodrigo ‘Jiggy’ Manicad has committed to crafting a law that will develop the country’s BPO industry, and make upgrading AI skills a key concern. Nicholas Mapa, senior economist at ING Bank Manila, believes the country may well receive a ratings upgrade from the international ratings agencies this year, because its economy is less exposed to the risks of trade protectionism than are many of its neighbors.

Making labor more efficient and accessible is also important. Most establishments in the country are seriously looking at telecommuting, or a work-from-home format, for their managerial staff if there is improved internet service in the country, according to an Employers Confederation of the Philippines survey. On a sad note, however, DICT, the hard working government agency tasked with delivering better connectivity to the country, has announced the tragic death of its assistant secretary, Carlos M. Caliwara. “For your wit and humor, your wisdom and passion, and your compassionate leadership and dedication to public service, you will be missed,” said the department’s Facebook page.

In the global arena, Infosys announced that it will give incentives to staff members with digital skills, and continue to develop its localization practices. Northern Trust, a leading mid-office financial services outsourcer, has appointed Conlon Chen as its Asia head for global fund services business. Global IT and BPM company Datamatics Global Services announced that it has received significant recognition at the IMC Digital Technology Awards 2018.

With new technologies come new risks. Outsourcing giant Wipro has launched an investigation into the hacking of its networks and systems, which are being used to attack customers. Forensic evidence showed that at least eleven companies have been attacked. But it is not known which ones.

NEWS THIS WEEK

22 April 2019

17 April 2019

16 April 2019

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: April 17, 2019
  2. The Outsourcing Week in Review: May 2, 2019

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