The Outsourcing Week in Review: Wednesday, October 9, 2019

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The Department of Finance has hit back at the Joint Foreign Chambers of the Philippines (JCF) over its recent claim that the proposed Corporate Income Tax and Incentives Rationalization Act will lead to thousands of job losses. According to finance undersecretary Karl Kendrick Chua, for two years he has pushed the JCF for evidence to support the claim, but to no avail. Meanwhile, Albay representative Joey Sarte Salceda, the House Ways and Means Committee chairman, has argued that reform of FDI regulations for the country is what is badly needed to boost investment. Citing a 2018 survey by the Organisation for Economic Co-operation and Development, Salceda says the Philippines has the most restrictive laws on FDI among the 10 ASEAN countries.

There are undoubted opportunities in the country to attract more foreign investment and expertise. The booming construction sector is already providing considerable work for overseas project management service providers, with many local developers now keen to outsource such requirements, says Lloyd Wallace, head of Philippine and Asian operations at Pure Projects, an Australian project management specialist. Property developer Filinvest Development Corp has recently partnered with Japan’s Mitsubishi on the development of a mixed-use office retail project in Alabang. Investment opportunities should also come as the Philippines is forecast to benefit from huge trade growth in Asia, according to the recently released Trade20 index report by Standard Chartered Bank.

Reassuring news on employment practices for the BPO sector continues to make headlines. Although the more glamorous advertising, marketing, promotions and public relations sector was top choice for a job in a survey by online recruitment agency Jobstreet Philippines, winning 25% of the votes of Generation Z workers (those born between the mid-1990s and early-2000s); 22% still opted for the back-office BPO sector. The figure reflects well on the efforts of the industry to constantly improve its employment offerings. Johnson & Johnson Philippines, and its BPO unit Global Services Philippines, have been named among the best companies to work for at the HR Asia Awards. Teleperformance, a big BPO player in the Philippines, has been designated the 2019 Asia-Pacific Contact Center Outsourcing Service Provider of the Year for the eighth time by international consultants Frost and Sullivan. IBM has been recognized as one of the 2019 leaders in data center outsourcing and hybrid infrastructure managed services for Europe and Asia-Pacific, as part of the annual Magic Quadrant review conducted every year by global research firm Gartner.

Part of effective HR management is keeping staff up-to-date with the skills needed to operate the new technology that is rapidly driving global business. According to Brian Manusama, a senior director analyst at Gartner, 56% of respondents in a recent survey said the nature of both existing and future jobs will change with AI, with employees facing the need to re-skill or up-skill to perform such jobs. Moreover, the global IT outsourcing market is forecast to grow annually by 6% over the next four years, with its value reaching US$531bn by 2022, according to a report by Beroe, a US-headquartered procurement intelligence specialist. Significantly, end-user computing services are tipped to lead the way in driving growth, says the report, with process automation and virtualization also making substantial contributions.

Upgrading technical skills is a challenge but should also be an opportunity. A new fiber-optic domestic gateway delivering faster, lower-cost internet access to residential users across Luzon and connecting to surrounding islands has been promised for end of next year by Converge ICT Solutions. Finding skilled trainers in the provinces, however, is a problem. The Technical Education and Skills Development Authority is seeking ways to boost its partnership with different industries in the Negros Occidental province of the Philippines to expand its training options.

Eyeing the opportunities presented by digital transformation is Infosys, India’s second largest IT business, which is to partner with SAP, the German enterprise software pioneers, to provide services to help third party companies accelerate their digital transformation. For BPO employees, developing skills for working with AI support, rather than being replaced by it altogether, will be key to changing AI from a threat to an opportunity, says Albert G. Sarabia, business development manager at ChatbotPH. To do so, he says, BPO employees should prioritise adapting and learning new skills, including how to make the best use of chatbots, to increase their efficiency.


Wednesday, October 9, 2019


7 October 2019

  • Teleperformance Wins Outsourcing Service Provider Title for Eighth Successive Year – read article…
  • IBM Cited as Data Center Outsourcing Leader for Asia, Europe and North America – read article…
  • Filinvest and Mitsubishi Partner for Philippines’s Office / Retail Development – read article…

4 October 2019

  • Standard Chartered Report Highlight’s Asia’s Trade Growth Potential – read article…
  • Infosys and SAP Partner Up to Streamline Corporate Digital Transformation – read article…
  • Chatbots More Complementary than Competitive for Call Centers – read article…

3 October 2019

  • Latin America Set to Take Global IT Outsourcing Market to US$531bn by 2022 – read article…
  • Philippines Construction Boom Lures Overseas Project Management Companies – read article…
  • Converge Pledges Faster, Cheaper Internet Access for Luzon – read article…

2 October 2019

1 October 2019

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: October 2, 2019
  2. The Outsourcing Week in Review: October 16, 2019

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