The Outsourcing Week in Review: Wednesday, August 21, 2019

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

THE WEEK IN REVIEW

The outsourcing market in Asia Pacific posted a new record for second-quarter growth of US$2.2 billion this year, according to advisory firm Information Services Group. Moreover, annual contract values in the industry of US$5 million or more grew by 6% for the period, led by the managed services sector, which grew 15%. The global outbound telemarketing sector also was forecast to enjoy steady growth of 3.7% until 2025, according to a report from Transparency Market Research. And in the local market, the Information Technology and Business Process Association of the Philippines (IBPAP) said it remains hopeful about 2019 targets even though the industry failed to reach its 2017 and 2018 targets. 

Despite robust forecasts, the government decision for a moratorium on economic zones in Metro Manila continues to elicit concern from the industry.  According to Colliers International Philippines, the tightening of PEZA-approved office supply that is the likely result will drive up rents by 6% over the next two years. Furthermore, soaring demand for office space from the Philippine offshore gaming operators (POGOs) sector is in danger of driving up costs for the BPO industry beyond the level at which the sector is competitive globally, according to a South China Morning Post report.  To ease the bottleneck, Colliers has called on the government to quickly process economic zone accreditation applications to bring more supply onto the market quickly. 

There were also a number of noteworthy developments for global players in the industry last week. Cognizant’s current widespread restructuring may lead to even more job cuts, according to insiders. The news comes at a time when, ironically,  many IT outsourcing firms, including Cognizant, are struggling to retain young talent, and are having to offer salary hikes, hefty bonuses and promotions to prevent them from leaving.  

Medical billing and coding firm Global Healthcare Billing Partners announced it will build a 1,000-seat facility within the next six months in India. Accenture has revealed the eight start-ups that will participate in the latest Asia Pacific edition of its accelerator program FinTech Innovation Lab, a mentorship platform. Operations management and analytics firm EXL has announced that it has been included in the leader’s list of the IAOP’s Best of the Global Outsourcing 100.

In the Philippines, Sysgen, a provider of IT staffing and recruitment in the Philippines, said it has ventured into the growing offshore recruitment process outsourcing market with the establishment of Sysgen RPO, which will employ Philippine-based recruiters to process résumés for US firms.  The new BPO firm, Markable Solutions, broke new ground by becoming the Philippines’ first regular corporation to have been approved to have less than five shareholders. Hong Kong’s Internet Keeper Global (IKG) Philippines said it plans to team up with big Philippine telecom companies to establish a large presence in the local market.  Property developer Arthaland and Japanese real estate firm Mitsubishi Estate Co. Ltd. announced that they have come to an agreement to jointly develop a two-tower office condominium hub called Savya Financial Center in Arca South in Taguig city. With the current squeeze expected on office property in the National Capital Region, the development could prove to be a timely and profitable move.

Wednesday, August 21, 2019

NEWS THIS WEEK

19 August 2019

  • Cognizant’s Widespread Restructuring Could Lead To More Job Cuts – read article…
  • Colliers Urges Government To Accelerate PEZA Approvals – read article…
  • IT Firms Strive To Halt Attrition Of Skilled Young Workers – read article…

16 August 2019

  • EXL Honored In IAOP’s Best Of The Global Outsourcing 100 – read article…
  • Accenture Announces APAC Fintech Innovation Lab Participants – read article…
  • Sysgen Breaks Into Offshore Recruitment Process Outsourcing – read article…

15 August 2019

  • Global Healthcare Billing To Expand Workforce – read article…
  • Outbound Telemarketing Market To Be Worth US$12.2 Billion By 2025 – read article…
  • Philippines’ First Corporation With Less Than 5 Incorporators – read article…

14 August 2019

  • Metro Manila Office Rents To Rise 6% Yearly Amid Ecozone Ban – read article…
  • Arthaland, Mitsubishi Estate Co. Join Up To Build Office Condo – read article…
  • IKG Philippines Plans Partnership With Big Telecom Firms – read article…

13 August 2019

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: August 14, 2019
  2. The Outsourcing Week in Review: August 28, 2019

 

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