The Outsourcing Week in Review: Thursday, May 2, 2019

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


With the Philippines rocked by two earthquakes last week, the BPO industry has rightly focused on the effectiveness of its safety protocols in responding to such calamities. The BPO Industry Employees’ Network raised concerns over reports that some BPO companies did not evacuate their workers in the wake of the recent earthquake in Luzon. The Contact Center Association of the Philippines, however, said in a statement that its members did follow correct safety protocols during the incident, and that its members had checked that their equipment and infrastructure remained in stable working condition to ensure continuous operation. Reassuringly, it said that the majority of its members did not report any problems during or after the earthquake.

The recent publication of the 2019 Tholons Services Globalization Index has also raised some cause for concern. Although Manila retained its slot in second place, both Cebu and Davao dropped a few places, and three cities, Bacolod, Iloilo and Santa Rosa, dropped out of the list altogether. In the case of Bacolod City, poor internet connectivity was largely to blame, according to its mayor, Alfredo Marañon Jr. The announcement that the Philippines’ richest man, Manuel Villar Jr., will soon be rolling out high-speed fixed internet access across the country through one of his companies, will certainly come as good news to the BPO industry.

In the case of Cebu, Wilfredo Sa-a Jr., Cebu IT-BPM Organization managing director, said a significant cause was that the city lags in digital innovation and adoption. As a case in point, Cebu Exchange, the PHP8bn 39-storey structure developed by Arthaland and set to be finished in mid-2021, has already sold 60% of the property driven by high demand for newer developments that feature new technology, according to the company.

Companies should also diversify their services into non-voice, back office operations, shared services, IT outsourcing, finance and accounting, health information management services, engineering services, banking services, and digital content, says Sa-a. One such company benefiting from booming demand in outsourced legal services is Canon Business Process Services which said that it has been tasked by a leading law firm with eliminating a backlog of many thousands of legal documents. Infosys has joined the Huawei Cloud partner network to help business organizations transition seamlessly to the digital cloud.

The global industry is still enjoying robust growth. Outsourcing giants, Tata Consultancy Services (TCS) and Infosys both increased employee hiring in the 2018-2019 fiscal year over the previous year. Within the Philippines, the industry also continues to mature and improve. Philippine finance secretary Carlos G. Dominguez has urged US businesses to be more engaged in the Philippines with its rapid economic growth, tough government reforms, as well as huge investments in infrastructure and human capital development. Senator Risa Hontiveros is calling on the government to impose tighter policies to regulate the fast Philippine offshore gaming operators (POGOs) sector, amid concerns over illegal employment arrangements for Chinese workers, and their impact on local property markets.


29 April 2019

  • Association says BPO firms followed safety protocols during earthquake – read article…
  • Connectivity blamed for Bacolod’s exclusion from Super Cities list – read article…
  • Canon tasked to eliminate legal document backlog – read article…

26 April 2019

25 April 2019

24 April 2019

23 April 2019

  • IT-BPM sector needs to adapt to growing client needs, says CIB.O head – read article…
  • Villar firm to offer broadband service across country – read article…
  • Bangladesh cites Philippine BPO sector’s success in summit – read article…

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: April 24, 2019
  2. The Outsourcing Week in Review: May 8, 2019

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