The Outsourcing Week in Review: Wednesday, August 14, 2019

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Healthcare outsourcing has become the fastest growing BPO service in the Philippines, according to Contact Center Association of the Philippines (CCAP) president Jojo Uligan. With a large pool of medically trained professionals in the Philippines, often with overseas work experience, this sector looks set to boom. IT outsourcing is also growing fast. A recent report from IT research firm Computer Economics says that firms’ total IT outsourcing budgets rose 12.7% this year from 9.4% last year, hitting a five-year high.  Furthermore, it is the smaller businesses that have fueled the rise in IT outsourcing this year due to their practice of placing operational functions on cloud platforms. Good news supporting this sector is that Globe Business is working with the country’s IT-BPO community in advancing digital adoption to enhance work efficiencies and employee productivity.

The Philippine Department of Trade and Industry has reassured that new technology will not lead to job losses, but will instead create opportunities to increase productivity and generate new high-paying jobs for Filipinos. Initiatives such as Australian corporate IT training provider DDLS teaming up with Microsoft for a series of IT training courses in the Philippines, and the Technical Education and Skills Development Authority launch of a new employment app called 911 TESDA, are positive developments in this space. 

The Philippine economy posted lower growth again in the second quarter of this year due to budget delay and globally challenging times. Figures from the Philippine Statistics Authority showed that the country’s GDP) rose only 5.5% in the second quarter, slightly lower than the 5.6% in the first quarter and way below the 6.2% growth rate a year before. Improving employment practices and broadening the labor pool catchment area are also important if the country is going to compete in an increasingly challenging world.

Accenture, a major player in the Philippines outsourcing world, and IBM have recently emerged as two of the top companies for diversity and inclusion policies and practices in the 2019 Working Mother Media Index. The Department of Labor and Employment has just released its guidelines on the issuance of certification to employees who want to avail themselves of the involuntary separation benefit or unemployment insurance after being laid off from their job. 

In other company news, SYNNEX won three Microsoft Partner Awards in the IT channel, across various key product and solution categories. Wipro has partnered with Amazon Web Services to launch a new co-innovation hub in Bengaluru, India, and IT and BPM firm Datamatics Global Service announced that it has been included in the Gartner’s Market Guide for Data and Analytics Service Providers.

There was also news that Metro Manila remains an important hub for offshore gaming operators. However, the CCAP has reiterated the outsourcing industry’s concerns that the government’s move to stop the development of ecozones in the National Capital Region in favor of provincial ecozones, may turn investors away from investing in the Philippines. Offshore gaming does bring welcome investment, but the BPO sector also brings many more local jobs.

Wednesday, August 14, 2019


12 August 2019

9 August 2019

8 August 2019

7 August 2019

6 August 2019

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: August 7, 2019
  2. The Outsourcing Week in Review: August 21, 2019

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About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.