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

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE 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. Monster.com’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

NEWS THIS WEEK

5 August 2019

• Datamatics Named A Gartner Peer Insights Customers’ Choice – read article…
• Senator Villanueva Refiles Endo Bill – read article…
• India’s IT Firms Cry Foul Over GST – read article…

2 August 2019

• BOI Inks Deal With Japan Group – read article…
• Wipro Scion Rishad Premji Named New Wipro Chairman – read article…
• Kakapo Systems Introduces Email Queues – read article…
  

1 August 2019

• Cebu Is Country’s ESL Hub – DOT – read article…
• Philippine Online Hiring Up 16% In June, Says Monster.com – read article…
• Philippine Economy Strengthens with Job Market Expansion – read article…

31 July 2019

• Qualfon Recognized In Everest Group PEAK Matrix Assessment – read article…
• DOT Says Philippines Is World’s ‘Study English’ Destination – read article…
• PUP, Huawei Sign Deal On ICT Cooperation – read article…

30 July 2019

• Cebu’s BPO Sports League To Start In August – read article…
• CCAP Predicts 80,000 New IT-BPO Jobs This Year – read article…
• Filipinos Reviewing Disturbing Social Media Content Lack Support – read article…