The Outsourcing Week in Review: Wednesday, August 7, 2019

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


The Philippines’ economy continues to enjoy robust growth, and as a result demand for workers has also been rising fast. According to Christian de Guzman, vice president and senior credit officer at Moody’s Sovereign Risk Group the country’s historically poor underemployment rate has improved considerably as new jobs are created on the back of the booming economy.’s online hiring report for June supports his view. There was a 16% growth in recruitment, and it was across all sectors. The consumer goods/FMCG sector lead the field with 29%, and the BPO and ITES sector grew at 15%. 

Growth in worker demand looks set to continue. The IT-BPO sector is forecast to add between 80,000 and 100,000 jobs this year alone, according to the Contact Center Association of the Philippines. An emerging new employer in the country is the English language teaching sector. The Department of Tourism says the Philippines has become the ‘Study English’ destination for many nationalities, and leads the way in Asia for English for international communication. The English-as-a-second-language sector in Cebu is particularly strong, says the DOT. 

This tight labor market should push employers to compete harder for talent, and the government to champion stronger worker protections.  The controversial ‘Endo Bill’ recently vetoed by President Duterte, has now been refiled by Senator Joel Villanueva with a number of tweaks that are hoped to address its previously perceived shortcomings.  Chinese technology company Huawei has said it has partnered with the Polytechnic University of the Philippines to provide students with access to high-end information and communications technology.

Concern over workers’ mental wellbeing also featured in this week’s news. In a Washington Post report, Filipino content moderators claimed that outsourcing companies such as Accenture and Cognizant, working for social media giants YouTube, Facebook, Instagram, Twitter and Periscope, do not provide them with sufficient support to address the psychological effects of the work ,which often involves vetting gruesome and disturbing content. 

In other matters, IT and BPM firm Datamatics Global Services Ltd was recognized in the July 2019 Gartner Peer Insights Customers’ Choice for Robotics Process Automation Software awards; and Qualfon was recognized as a Major Contender in the Everest Group Contact Center Outsourcing – Service Provider Landscape with PEAK Matrix Assessment 2019. The Philippine Board of Investments signed an MOU to boost trade with Kyushu Economy International, the primary body for international economic exchanges in Kyushu, Japan.

On an international front, India’s IT firms continue to contest vigorously their government sector reclassification, which now opens them to an 18% GST liability. Indian services giant Wipro has named company insider Rishad Premji as its new chairman. UK-based software development firm Kakapo Systems said it has launched its ‘Email Queues’ tool, which offers a new way for businesses to connect with customers quickly, and vice versa.

In Cebu, the sporting season is about to enter full swing. BPO companies in the city this year will be competing in volleyball, badminton and table tennis in the Cebu Inter-BPO Sports League, due to start on 17 August. Activities this year have also been extended to include less athletic pastimes – teams can now take part in mobile e-sport tournaments in Mobile Legends and Bang Bang.


Wednesday, August 7, 2019


5 August 2019

2 August 2019

1 August 2019

31 July 2019

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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.