The Outsourcing Week in Review: Wednesday, July 10, 2019

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Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

The ongoing fallout from the Duterte administration’s decision to ban new economic zones in Metro Manila continues. According to Tereso O Panga, deputy director-general for policy and planning at the Philippine Economic Zone Authority, 22 business process outsourcing projects worth PHP34.238 billion have been put at risk as result. A further 131 projects, which are yet to reach the president’s office for approval, are also at risk. Some approvals are still getting through. BGC Corporate Center 2 in Bonifacio Global City has been approved by the president as an economic zone for use as an information technology center.

The use of illegal Chinese labour continues to dog the industry. The Bureau of Immigration last week raided a business process outsourcing office in Biñan, Laguna, and arrested 106 foreigners found to be working there illegally, including 97 Chinese nationals and one minor, a 17-year-old girl. Meanwhile, the Department of Labor and Employment stressed the need to evaluate the impact of a proposed bill requiring private sector employers to pay 14-month bonuses. It has concerns that it might lead to an imbalance between the needs of labor and the capability of employers to absorb the higher costs.

Local business outlook remains very positive. Philippine businesses are the most optimistic in ASEAN, according to business advisory firm Grant Thornton. Trade and Industry secretary Ramon Lopez has also expressed his optimism that the country can grasp the opportunity to become a leader in AI jobs, with a growing, young and suitably educated workforce emerging. Of the country’s annual 700,000 new graduates, 75,000 are in science, technology, engineering and mathematics (STEM) subjects, according to Lopez.

Property companies are also bullish. Flexible workspace providers KMC Solutions and Regus are planning to further expand in the Philippines. Century Properties Group said that it has reserved PHP30 billion for its three-year expansion plan. Adding fuel to the fire is the influx of Philippine offshore gaming operators (POGOs). They have more than compensated for the slowing demand in the country’s US$24 billion outsourcing industry, says Dom Fredrick Andaya, a director at Colliers International Philippines.

In terms of digital infrastructure, it was also promising to see that Globe Telecom has now partnered with Aboitiz InfraCapital Inc and Frontier Tower Associates Philippines Group to build cell sites and towers for lease in Cebu, Davao and Olongapo, in support of the Department of Information and Communications Technology’s common tower initiatives.

Global BPO companies also had good news to report. WNS, a leading provider of BPM services announced it had secured a major contract with reinsurer Convex Group; TCS was recognized as a leader in banking BPO digital capability platform services in the Everest Group PEAK Matrix; Avaya received the 2019 Contact Centre Vendor of the Year award at the Frost & Sullivan 2019 India ICT Awards; and Teleperformance Brazil received the Best Workplace For Women Recognition award by Great Place to Work.

However, pride can come before the fall. As recent events with Wipro have shown, the growing risk of digital technology in the industry is accompanied by a growing risk of cyber attack. BPO firms are particularly at risk, and should be getting cyber insurance, recommends the country’s Insurance Commission head Dennis B Funa.

Wednesday, July 10, 2019

NEWS THIS WEEK

8 July 2019

5 July 2019

  • Trade secretary says Philippines can be leading player in AI jobs – read article…
  • Globe, Aboitiz InfraCapital, Frontier Tower to build telecom towers – read article…
  • Insurance Commission urges firms to get cyber insurance – read article…

4 July 2019

3 July 2019

  • TCS recognized as leader in banking BPO digital capability platform services – read article…
  • Century Properties allots PHP30 billion for 3-year portfolio expansion – read article…
  • Another BGC building designated as IT center – read article…

2 July 2019

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: July 3, 2019
  2. The Outsourcing Week in Review: July 17, 2019

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