The Outsourcing Week in Review: Wednesday, October 17, 2018

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The publication of Tholons’ 2018 Services Globalization Index that ranks the top 100 global BPO hubs will have brought reassurance to the Philippines outsourcing industry. Manila, Cebu City and Bacolod City all moved up the rankings from last year, and Iloilo City returned to the top 100. Significantly, the Philippines is now only second to India in terms of top digital destinations, according to the report.

On the labor front, however, things are more uncertain. Casting blame on the impact of the proposed new corporate tax proposals, IBPAP said it was likely to miss its target of 100,000 new jobs created this year by as much as 40%. PEZA chief Charito Plaza said that she will ask President Duterte to reconsider the lifting of tax incentives to revive investment. News from foreign portfolio investors supports the need for concern. Total outflows of foreign portfolio investment reached US$440 million in September, reversing the net inflow of US$225.85 million in August.

Furthermore, with inflation worryingly high, government pressure to increase BPO wages is mounting. The House Committee on Labor and Employment started deliberations on raising night shift wages, and a proposal to introduce an additional mandatory 14th month bonus was mooted by Senate President Vicente Sotto III. To add to HR worries is the ongoing challenges of dealing with digital disruption. In response, IBPAP will convene an International Innovation Summit at its annual summit this year specifically to address cthe issue.

There was good news for the healthcare outsourcing sector. Thanks to Fitbit and other fitness trackers, the Philippines’s health-related business process outsourcing industry is thriving according to the Healthcare Information Management Association of the Philippines. SYNNEX will be happy that the Philippine Competition Commission has approved its acquisition of Convergys. Sales Rain, a United States-based training, marketing and call center solutions firm, has continued its expansion with the acquisition of IBM Plaza’s 27th floor at Eastwood City Cyberpark.

The process to select a third telecoms provider also seems on track. With the deadline for deciding upon the third telecoms provider fast approaching, last week saw  a number of formal bidders enter the contest that included PT&T, Norway’ Telenor, TierOne Communications International and NOW International. Bids will be closing on 7th November, and by year end the winner of the bid should finally be announced.

Wednesday, October 17, 2018


15 October 2018

  • PT&T joins bidders for third telco opportunity –  read more…
  • Iloilo City returns to Tholon’s top 100 BPO hubs – read more…
  • More foreign funds pull out of Philippines in September – read more…

12 October 2018

  • Bacolod among world’s top outsourcing cities – read more…
  • Naga landslide victims get aid from Teleperformance – read more…
  • PEZA chief to seek audience with Duterte on fiscal perks – read more…

11 October 2018

  • House starts debate on BPO workers’ pay hike – read more…
  • IBPAP to tackle digital disruption at its annual summit – read more…
  • 14th month pay bill not getting support from businesses – read more…

10 October 2018

  • Cebu, Manila remain in world’s top 20 outsourcing destinations – read more…
  • Five firms buy documents in bid for 3rd telco slot – read more…
  • Healthcare BPO industry gets boost from fitness trackers – read more…

09 October 2018

  • PCC approves SYNNEX’s acquisition of Convergys – read more…
  • IT-BPO likely to miss job creation target by 40% –  read more…
  • US-based coworking space provider buys property at Eastwood – read more…

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: October 10, 2018
  2. The Outsourcing Week in Review: October 24, 2018

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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.