The Outsourcing Week in Review: Wednesday, February 20, 2019

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Welcome to Inside Outsourcing: The Outsourcing Week in Review


Two reports published last week present a rosy picture of the outsourcing industry market. By 2025, global business process outsourcing (BPO) market is projected to reach US$343.2 billion, growing at a CAGR of 7.4%, according to a recent study by Grand View Research. Legal process outsourcing is also set to grow in North America to US$5 billion by 2024, says a Graphical Research report;  a region that is currently the Philippines’ largest market.

It is positive news, therefore, given the importance of the market that a high level visit is being made by four former US ambassadors to the Philippines who will stay for three days to explore ways of improving bilateral cooperation and private sector relationships between the two nations. The US delegation will be headed by John Negroponte, former ambassador to the Philippines and Deputy Secretary of State.

For the Philippines to retain and build on the growing global outsourcing market it will need to keep ahead of the game in transforming itself increasingly from low-end, voice-based services to a major provider in high-end, knowledge based services. A report by Colliers claims that about 27% of all new office space take-up in the fourth quarter of last year was by knowledge process outsourcing (KPO) firms with robust demand expected to continue, is reassuring in this respect.

Some of the news coming out of the US last week reflects that the Philippines is not alone at needing to adapt to the challenges caused by digital transformation.  Indian giant Infosys has made significant inroads into the US market, having hired 7,600 staff in the country; US-based Bright Pattern Contact Center has signed up a new client for its customer relationship software with locations in Japan, and Stefanini continues to invest in its new Innovation Center in the country. In contrast, GC Services, another international operator with offices in 30 countries including the Philippines, has had to lay off many staff at its US site, and a recent survey by Accenture revealed that the US healthcare industry will have to go through major digital transformation in order to cater to the needs of young customers, particularly those belonging to the millennial and gen Z generations.

Despite other Asian nations catching up, the Philippines still retains its edge as the top regional economy for talent, according to the Global Talent Competitiveness Index, a study conducted by INSEAD, The Adecco Group and Tata Communications. Local firms like Telus International Philippines are also steadily beefing up their training efforts. Accenture continues to buy in talent through acquisition and has completed its acquisition of management consultancy and technology services provider Orbium, a leader in digital and core banking software for the banking and wealth management industry. On a very sad note, Accenture’s recent CEO, Pierre Nanterme has died, aged only 59. Under his tenure, the company became a huge force in the Philippines outsourcing sector, not only as one of its largest employers but also for its unparalleled strategic input in guiding the industry to the phenomenal success it currently enjoys.

Finally, an unusual threat appeared this week with the news that a former trade official in the Philippines is calling on the government to stop granting work permits to Chinese nationals who are coming to the country in large numbers, hoping to secure jobs in the BPO industry. According to reports, the Department of Labor and Employment issued 119,000 Alien Employment Permits last year, with nearly half granted to Chinese workers.

There will indeed be much to discuss this year at the annual Visayas ICT Organizations (VICTOR) Conference, the biggest gathering of information and communications technology stakeholders in the Visayas. This year it will take place in Bogo City, about 100 kilometers north of Cebu City.

Wednesday, February 20, 2019


18 February 2019

  • Accenture completes acquisition of Orbium – read more…
  • PH told to stop Chinese “job invasion” – read more…
  • New partnerships eyed in US dignitaries’ visit to PH – read more…

15 February 2019

  • Bogo City to host annual Visayas ICT conference this year – read more…
  • Global BPO market to reach US$343bn by 2025 – read more…
  • Since 2017 Infosys has hired 7,600 local staff in US expansion – read more…

14 February 2019

  • Legal process outsourcing market to hit US$5bn by 2024 in N America – read more…
  • Bright Pattern bags IT-Communications software deal – read more…
  • Healthcare must digitally transform to attract millennials – Accenture – read more…

13 February 2019

  • KPO accounts for a quarter of office space take up in Q4 – Colliers – read more…
  • Philippines leads emerging economies in talent, despite annual drop – read more…
  • GC Services lays off staff at US site – read more…

12 February 2019

  • Telus extends short courses to employees’ social communities – read more…
  • Former Accenture CEO Pierre Nanterme dies at 59 – read more…
  • Stefanini launches another set of innovative measures – read more…

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: February 13, 2019
  2. The Outsourcing Week in Review: February 27, 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.