The Outsourcing Week in Review: Thursday, May 8, 2019

Outsourcing week in review
  • Home
  • Articles
  • The Outsourcing Week in Review: Thursday, May 8, 2019

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

With the Labor Day holiday falling in the middle of last week, much of the news was understandably relating to employment issues. The good news is that employment growth continues to be robust. According to the Philippine Statistics Authority (PSA), the fourth quarter of 2018 saw hiring growth remain positive, slowing slightly to 8%, down from 9.5% the previous year. Meanwhile, online recruitment for the month of March this year rose 13% on the year, with the BPO sector achieving a solid 12% growth for the period, the recently-released Monster Employment Index revealed.

At the same time, union pressure is growing for a daily minimum daily wage of about P750 in Manila, and a complete end to contractualization. Labor groups such as Kilusang Mayo Uno, the BPO Industry Employees Network, Kilos na Manggagawa, the Metal Workers Alliance of the Philippines, and the Trade Union Congress of the Philippines; were all active during the week lobbying for changes. Government has countered. Progress has been made, says the Department of Labor and Employment, which claims that nearly half a million workers have been regularized since President Rodrigo Duterte signed an executive order putting a stop to contractualization on Labor Day last year. The PSA also claims that according to its calculations, P750is rather more than is needed to support a Metro Manila family of five daily.

The outlook for the economy also continues to look good. With its major infrastructure overhaul, tax reforms, and young workforce, the Philippines is poised to become the fastest-growing economy in Asia, according to the Asian Development Bank. Research agency IHS Markit, is also bullish on the country’s outlook in its latest report, predicting that annual GDP could exceed US$1 trillion by 2032.

The week also saw a number of high profile deals in the sector. The Ang-Hortaleza Corporation has agreed to sell 100% of its stake in the personal care unit of Splash Corporation to Wipro Consumer Care. Philippine firms Udenna Corporation and Chelsea Logistics signed a US$5.4 billion investment agreement with China Telecom to improve Philippine telecommunications services. Accenture is buying Zielpuls, a German technology consultancy that designs smart products and services for different industries. Mohit Joshi, president of Infosys said the firm is looking at making more strategic investments this year. Infosys also announced that it is losing another top manager. Suryaprakash Kareenahalli, a senior vice-president who headed the firm’s India software delivery verticals, will be joining the New York-based Institute of Personal Leadership. Kareenahalli’s exit is Infosys’ sixth top-level resignation since CEO Salil Parekh was appointed in January 2018.

In other news, Startek and Aegis, providers of customer experience management solutions worldwide, have been included on the 2019 Best of the Global Outsourcing 100 list released by the International Association of Outsourcing Professionals. Google has announced that it is opening the second edition of its Indie Games Accelerator program to game developers in the Philippines, and other countries that were not part of its initial run.

And a reminder that BPO life is not all work and no play. The Sykes Philippines team gave a strong showing in the inter-BPO basketball tournaments in Manila and Cebu, winning the title against IQVIA, and beating top-seeded Accenture, respectively.

 

Wednesday, May 8, 2019

NEWS THIS WEEK

6 May 2019

  • Infosys may make “significant” acquisitions this year – read article…
  • Sykes Philippines leads inter-BPO basketball leagues – read article…
  • ADB optimistic on Philippines’ potential as fastest-growing economy – read article…

3 May 2019

2 May 2019

1 May 2019

  • Google opens indie game accelerator program to Philippines – read article…
  • Startek and Aegis among world’s top outsourcing providers – read article…
  • Wage hike, end to contractualization among Labor Day demands – read article…

30 April 2019

  • Philippines to become trillion-dollar economy by 2032, says research – read article…
  • Manila workers seek minimum wage of PHP750 – read article…
  • Chinatel signs deal with Udenna to operate country’s third telco company – read article…

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: May 2, 2019
  2. The Outsourcing Week in Review: May 15, 2019

Start your
journey today

  • Independent
  • Free
  • Transparent

Get the most out of your money with Outsource Accelerator

Scale your business fast while reducing costs —
the average all-in employment costs in the
Philippines are typically 70% less than its
Western counterparts

Philippines United Kingdom Australia United States
Software Developer
$7,221
$39,913
$62,653
$81,994
HR Manager
$9,506
$46,669
$66,518
$78,007
Team Leader
$7,152
$31,174
$45,428
$75,823
Accountant
$5,959
$58,479
$67,190
$72,923
Copy Writer
$4,767
$52,088
$56,600
$62,653
Customer Service
$3,337
$22,137
$29,717
$35,275
Virtual Assistance
$2,285
$39,066
$42,240
$31,797
Select a role to view salaries
Philippines $7,221
United Kingdom $39,913
Australia $62,653
United States $81,994

Avoid guesswork. Talk to the experts, free.

Get 3 free quotes

You can save 70% on staff costs, whilst driving quality & growth. Connect with an outsourcing expert to see how outsourcing can transform your business.

Why choose us?
  • Independent and unrivalled expertise
  • We carefully match you from 900+ leading suppliers
  • Access to Outsourcing Savings Calculator & Report

Get Started

How many staff to outsource?

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

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.