The Outsourcing Week in Review: Wednesday, June 27, 2018

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Welcome to Inside Outsourcing: The Outsourcing Week in Review

Events last week underlined that the outsourcing industry in the Philippines is not just in a battle for clients, but also a battle to recruit and retain talent. Industry giant Convergys held its biggest ever social event for 9,000 of its staff and their families; Intelenet also made public its actions to provide its staff with quality healthcare cover, and Sykes continued to roll out its CSR program of providing provincial schools with much needed PCs.  The government also did its bit by passing the so-called Work-From-Home Bill that strengthens the rights of home-based workers.

The news that the IT BPO online sector experienced another decline in hiring according to the latest Monster Employment Index is a little troubling, given that IT spending in the region is continuing on an upward trend at 6% per year, according to Technavio. Moreover, online recruitment was actually up 14% across all sectors, and – unsurprisingly – HR professionals were in the highest demand.  With a booming economy the challenge to outsourcing in its quest for talent is not only coming from direct competitors, but also from many other sectors. Improved HR practices will be critical to getting and keeping the best people. And the economic outlook remains strong. Helped by a weak peso and with good growth fundamentals, the country is still a top economic performer in ASEAN according to NEDA.  The acquisition by American BPO Intelegencia of Manila-based Microtech Global Solutions shows there is still confidence in buying into the sector from overseas.

Moving to new locations to access fresh pools of talent will also be important. President Duterte’s visit to Davao for the annual NICT conference is a reminder that the outsourcing industry and its supporting infrastructure is spreading fast into the regions. Samar’s Borongan City is being targeted for a new ICT business park, and Cebu Landmasters is opening a Citadines 200-room serviced residence in Bacolod with growing demand from BPO clients very much in its sights. Urban planning consultancy Palafox Associates also sees BPO driving the need for smart urban planning beyond Manila and into provincial cities.

Meanwhile, the battle to improve the country’s poor digital connectivity tiptoes forward, with the news from DICT – under increasing pressure from Malacañang –  that draft selection rules for a third telecoms provider will finally be published this week. Not all, however, feel there is the need for great urgency to bring in a new player. According to a PLDT official, despite claims to the contrary, the country’s internet speed is steadily improving and is not holding back the outsourcing industry. Not all would agree.


News Roundup

25 June 2018

  • Search for 3rd telco inches forward – DICT – read article…
  • Convergys concludes its biggest get-together BPO event in Cebu – read article…
  • Sykes CSR program supplies 50 PCs to public high school – read article…

22 June 2018

  • Philippines remains top global outsourcing destination – PLDT – read article…
  • Presidente Duterte addresses ICT summit in Davao – read article…
  • Health insurance boosting employee performance – Intelenet- read article…

21 June 2018

  • Samar’s Borongan City targeted for new ICT park – read article…
  • Southeast Asia’s IT spending to grow by 6% annually until 2021 – read article…
  • Philippines still one of top economic performers in ASEAN – NEDA – read article…

20 June 2018

19 June 2018

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: June 20, 2018
  2. The Outsourcing Week in Review: July 4, 2018

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