The Outsourcing Week in Review: Wednesday, November 14, 2018

The Outsourcing Week in Review
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The big news from last week is that the Philippines has now appointed a third telecom operator. The Davao-based Udenna Corp and China Telecom consortium are the formal winners. The appointment will hopefully be a boost to Davao, still struggling to attract foreign BPO businesses under the impact of martial law and poor international payment systems, according to US-Philippines Commerce and Industry Agency vice-president Rick Von Pfeil, and Leechiu Property Consultants CEO, David Leechiu. Management of the new operator falls under the remit of the Department of Information and Communications Technology (DICT), which has also chosen a new head, pending confirmation by the Commission on Appointments. If confirmed, Senator Gregorio “Gringo” Honasan will replace acting DICT Secretary Eliseo Rio Jr at the helm.

Although pundits are increasingly jittery about declining GDP growth in the country – last week the Philippine Statistics Authority reported it had slipped to 6.1% for last quarter – the good news is that expansion in demand within the broader BPO and KPO sectors remains robust.  Recently published reports noted that the CRM outsourcing market is likely to reach US$10.66bn by 2023; healthcare outsourcing revenues are projected to hit US$91.6 billion by 2024, and despite the worsening GDP growth figures, the Philippines investment grade rating has kept at BBB.

Successfully taking of advantage of these opportunities, of course, is another matter. Finance Secretary Carlos Dominguez III maintains that adapting to the impact of artificial intelligence poses more of a threat to the Philippines’ BPO sector than mere corporate tax rate tinkering. The country’s outsourcing industry must change fast in absorbing new technologies and retraining staff to use them – and faster than its competitors. As such, it was welcome news that PLDT chairman Manuel V. Pangilinan has backed the proposed PHP40 billion subsidy for retraining in the BPO sector. Accenture, a major player in the country, is opening a new robotics lab in Shenzhen; IBPAP also recognized Philippine senator Paolo Benigno “Bam” Aquino IV for his contribution in developing and strengthening the IT and BPO sectors through legislation. It also undertook a promotion of working in the industry by holding its first industry awareness fair.

There was also overseas promotion for the industry as well. A BPO delegation headed off to Shanghai to tout their services at the first China International Import Expo mega fair. Cracking the huge China market could be hugely significant for the industry. Consequently, the announcement that various government operations, Philippine firms and a state university, have all signed deals with China’s Confucius Institute to improve access to Chinese language learning, could be very timely indeed.


Wednesday, November 14, 2018


12 November 2018

  • Senator Honasan to head DICT –  read more…
  • Martial law and payment woes cripple outsourcing growth in Mindanao –  read more…
  • 6.1% GDP growth below government target –  read more…

9 November 2018

  • Udenna-China Telecom wins telco bid as others drop out –  read more…
  • IBPAP conducts first industry awareness fair –  read more…
  • Accenture to open new robotics lab in Shenzhen –  read more…

8 November 2018

  • Mislatel Consortium wins bid to be Philippines third telecoms player –  read more…
  • Outsourcing firms attend China trade expo –  read more…
  • CRM outsourcing market to reach US$10.66bn by 2023 –  read more…

7 November 2018

  • IBPAP recognizes Philippine senator for supporting IT, BPO sectors –  read more…
  • Healthcare outsourcing revenues to hit US$91.6 billion by 2024 –  read more…
  • Philippines investment grade rating kept at BBB –  read more…

6 November 2018

  • AI a bigger threat to BPOs – DOF chief –  read more…
  • PLDT head backs PHP40 billion subsidy for BPO sector –  read more…
  • Gov’t firms, state university sign deal to boost Chinese skills –  read more…

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: November 7, 2018
  2. The Outsourcing Week in Review: November 21, 2018

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