The Outsourcing Week in Review: Wednesday, June 13, 2018

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Last week saw a positive picture for outsourcing in the Philippines on a macro-economic front. Market Research Future’s latest report forecasts robust growth at 11% per annum for global the BPO industry through to 2023, and the World Bank retained its bullish forecast for the country’s economic growth unchanged. A report by the EU on the upcoming Philippines – EU free trade deal has also singled out the BPO sector as a beneficiary and – despite jitters over AI and automation – the CCAP reassured that the country will retain a significant share of the voice sector over the coming years.

The week also saw news of more operations expanding, and beyond Metro Manila. Naga City reported that outsourcing headcount in the city has risen now to 5,000; India’s WNS Global announced that it would soon be building new centers in the country, and in Bacolod there has been strong demand for hiring new employees for BPO at a recent jobs fair. Reassuringly for the government, a report from the CCAP claims that the BPO sector is aggressively hiring new high school graduates coming on to the job market for the first time under the K-12 scheme.

Meanwhile, the industry’s global consolidation continued to make its presence felt on the country. Japan’s NTT-owned Dimension Data acquired Millennium 1 Solutions, and CSP Alpha‘s bid for Philippines’ StarTek got approval from the regulator. Other significant developments were that John Henry Naga was named DICT undersecretary, although the organization still lacks a permanent head. The government also continued its push to market the country’s BPO services abroad by starting to round up businesses to join its delegation at the upcoming China International Import Expo in Shanghai. IBPAP did its bit to foster innovation by introducing a second batch of start-ups to established industry players under its Takeoff scheme, and positive noises were made at a recent event about how the Philippines could help in accelerating the transformation of the industry using blockchain technology.

Against all this good news there was a cautionary note. According to a report from Forbes, Vietnam is a rising threat to the Philippines in the IT outsourcing sector. It stands as a timely reminder that the country needs not only to transform to meet the threats from technology, but also do it fast enough before its would-be competitors get in on the act.

News Roundup

11 June 2018

WNS Global to build new centers in the Philippines – read article…
Naga City’s BPO industry now employs 5,000 workers – read article…
IBPAP introduces 2nd batch of startups under Takeoff scheme – read article…

08 June 2018

Outsourcing firms keen on hiring senior high graduates – CCAP – read article…
BPO firms to attend Kalayaan jobs fair in Bacolod – read article…
BPOs to benefit from Philippines-EU Free Trade Agreement – read article…

07 June 2018

CSP Alpha’s acquisition of Philippines’ StarTek gets approval – read article…
John Henry Naga named DICT undersecretary in reshuffle – read article…
World Bank leaves growth forecast for Philippines unchanged – read article…

06 June 2018

Opportunity to tap Chinese market pushed by DTI – read article…
Blockchain can fast-track BPO’s migration to the next digital wave – read article…
NTT’s Dimension Data acquires Millennium 1 Solutions – read article…

05 June 2018

Vietnam is a rising threat to Philippines IT outsourcing – Forbes – read article…
Philippines continues to get significant share in voice sector – CCAP – read article…
Global BPO services market forecast to hit $52bn by 2023 – read article…

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: June 6, 2018
2. The Outsourcing Week in Review: June 20, 2018