The Outsourcing Week in Review: Wednesday, September 11, 2019

Outsourcing week in review
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Finding office space in the Philippines is becoming a challenge for outsourcing businesses, according to the Information Technology and Business Process Association of the Philippines (IBPAP) president, Rey Untal. The National Capital Region is particularly hard hit with the government’s moratorium on new economic zones, but traffic and access to human capital are also driving firms to look beyond the traditional Manila CBDs. For example, BPO firm ARB Call Facilities said it has acquired an office in Alabang so that employees from Cavite and Laguna will not have to spend hours in traffic commuting to and from work. Australian financial services and technology firm DBA Advisory has said it has opted to set up its operations in offices in Clark, Bataan, and Tarlac.

Property firms are now beginning to see demand bottlenecks develop in a number of provincial cities as well. According to data from the Philippine Statistics Authority, different growth centers all over the country, including CALABARZON (Cavite, Laguna, Batangas, Rizal and Quezon) and the Western Visayas regions, have seen much increased activity. Megaworld is an example of a real estate firm that is taking advantage of this provincial growth surge by building new office towers in Cavite and Iloilo.

With its solid economic fundamentals there has been a steady stream of countries that have been examining opportunities in the Philippines, and that list now includes the Czech Republic. The Czech embassy in Manila has organized its first IT conferenceCzech Connect 2019: Bridging the Czech and Philippine IT Sectors”, which is taking place in Makati this week.

Underpinning this ongoing interest is a strong economy that should have a long future. According to an Oxford Economics study, the Philippines, along with India, will become the leading drivers of global economic growth in the next decade – surpassing even China – due to large populations and their potential for growth. There is also a new investment bill under deliberation in the House of Representatives which will allow foreigners to own small and medium-sized enterprises that could help boost inward investment significantly, and drive much-needed skills transfers.

The local BPO Industry will need to stay on top of its digital transformation, however.  A 2016 study by consulting firm Everest found that digital business made up 30% of the total global contracts signed in outsourcing, with 70% going to traditional services. That breakdown has now reversed, with 71% being digital services compared to 29% traditional.  Moreover, businesses undergoing digital transformation should better manage the expectations of their employees and align their leadership, according to a survey by Wipro Digital. Hopefully, Philippine technology provider ePLDT’s announcement that it is rolling out its managed IT services delivered through enhanced enterprise IT infrastructure should also play a helpful role.

Industry awards announced last week saw Accenture recognized as a Leader in Gartner’s Magic Quadrant for IT Services for Communications Service Providers, Worldwide. Startek Malaysia was named Malaysia BPO Service Provider of the Year 2019 by Frost & Sullivan; customer experience outsourcing provider Inspiro said it had won two award categories of the 16th Annual International Business Awards for Management Team of the Year and Customer Service Team of the Year; the only Philippine-based firm to have achieved such recognition.

Meanwhile corporate health has become the big thing in India, with top companies such as Cognizant, Accenture, Infosys, Godrej and American Express either launching their own mobile health apps, or teaming up with external providers to help staff improve their fitness. Not so healthily, Cognizant Technology Solutions announced that it is cutting its workforce by about 800 people. Ironically, sectors such as healthcare and life sciences are the main targets for cuts, with most of the layoffs likely to take place at the firm’s subsidiary Trizetto.


Wednesday, September 11, 2019


9 September 2019

  • Personnel Matter Most In Digital Transformation – Wipro – read article…
  • Startek Malaysia Recognized As BPO Service Provider Of The Year – read article…
  • DBA Locates In Philippines Due To Highly Skilled Local Personnel – read article…

6 September 2019

5 September 2019

4 September 2019

3 September 2019

  • Cognizant To Cut Nearly 800 Healthcare, Life Sciences Jobs – read article…
  • Philippines, India To Surpass China In Terms of Economic Growth – read article…
  • Megaworld Answers Office Needs Of Businesses In Iloilo, Cavite – read article…

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: September 4, 2019
  2. The Outsourcing Week in Review: September 18, 2019

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