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Welcome to Inside Outsourcing: The Outsourcing Week in Review
THE WEEK IN REVIEW
Welcome back to Inside Outsourcing: International Edition! Grab your coffee, and let’s dive into the ocean of outsourcing news that’s making waves this week. First off…
The Customer Care Business Process Outsourcing (BPO) market is expected to reach US$34.57 billion by 2028 at a compound annual growth rate (CAGR) of 7.5%. Research firm Insight Partners said the market’s impending growth is due to the rising focus on customer satisfaction and the significant cost benefits of outsourcing. The report added that the pandemic highlighted the importance of outsourcing for business continuity and flexibility. By geography, North America is projected to witness significant market growth from 2023 to 2028, with the availability of efficient infrastructure in developed nations such as the United States (U.S.) and Canada and the increased focus on customer experience management
Meanwhile, India was named the most favored offshore customer experience (CX) delivery location for 2023 by market research and consulting firm Ryan Strategic Advisory. In a survey of 712 contact center decision-makers worldwide, 68% of respondents picked India as their top choice for offshore delivery due to its legacy in customer management and its recent focus on high-quality digital CX management. Meanwhile, the 2022 title holder, South Africa, fell to second place this year, followed by the Philippines, Poland, Malaysia, and Egypt. Ryan Strategic Advisory also noted the lack of American nearshore locations in the top five, adding that it is “the most glaring change in this year’s offshore rankings.”
However, the hiring demand in India’s BPO/ITES sector dipped by 13% year-on-year in April due to companies saving on talent acquisition costs. According to the online job platform foundit, other sectors like BFSI, healthcare, import/export, agriculture, and tech also witnessed a significant decline in recruitment compared to last year. On the other hand, the retail, travel, and tourism industries exhibited positive growth on a y-o-y basis. Similarly, online recruitment in Malaysia’s BPO/ITES industry also dropped by 24% due to the recent layoffs and hiring freezes by major tech companies. Its IT and Telecom/ISP sectors also dropped by 24%, while the hospitality industry increased by 59% y-o-y. Despite ongoing concerns surrounding the global economic outlook, foundit CEO Sekhar Garisa said that many companies are still seeking new talent — particularly individuals with specialized, high-demand skill sets.
Nigeria recently launched its National Outsourcing Strategy (NOS) in an effort to position itself as a leading global outsourcing destination. Released by the National Information Technology Development Agency (NITDA), the NOS aims to create around five million local outsourcing jobs and increase the contribution of outsourcing to the country’s GDP by 25% by 2027. Nigeria also seeks to acquire 30% of the global outsourcing industry by the same year. In the last couple of years, Nigeria’s BPO industry has grown and is now dominated by call centers providing services to both onshore and offshore clients.
Jumping to the Caribbean, Jamaica is set to host Outsource2LAC Global Digital Summit, the largest outsourcing conference in the Western Hemisphere, on June 14 and 15. The event is organized by the Ministry of Industry, Investment, and Commerce through Jamaica Promotions Corporation (Jampro) and Inter-American Development Bank (IDB) and is expected to draw roughly 400 entrepreneurs. Aside from focusing on cutting-edge technology, the summit is expected to allow industry leaders to explore the potential of Jamaica’s vibrant and growing market and experience the country’s unique culture and business-friendly environment.
See you there!
In other news, the Outsource Accelerator (OA) platform saw a slight drop in outsourcing traffic and inquiries in April. According to its latest report, the platform generated 1,570 inbound inquiries, from 66 countries, representing 28 sectors last month. Web traffic also slowed down to 557,694 page views and 172,778 unique visitors compared to last month. Of these inquiries, there were 1,177 quotation requests representing an estimated 4,114 full-time staff with an outsourcing value of US$123 million.
A new report from the University of Auckland’s Business School revealed that only 30% of companies in New Zealand work with outsourcing agencies. And most of these companies prefer working with local providers or agencies from Australia and the U.S. Professor Ilan Oshri, one of the report’s researchers, said this is “quite surprising” considering the high demand for tech talent that local universities cannot meet. He added that NZ firms should tap other countries for their outsourcing needs — preferably those in South Asia Pacific — as they are “very successful in offering services and has been doing that for the last 25 years.”
Interested in joining the BPO industry? International technology education company GoIT launched its first IT-BPM course to help train Filipinos interested in working within the sector. The firm’s first batch of students will follow a 10-month Fullstack program designed for people wanting a career change. GoIT Group Head of Growth Khrystyna Gankevych said their launch in the Philippines has been successful as they held 10 free webinars, attended by more than 3,000 people. The group is also currently organizing the launch of its QA manual program course for people looking to learn a complex programming language.
Speaking of the Philippine outsourcing market, Senator Imee Marcos filed a resolution calling for an inquiry into using artificial intelligence (AI) and its impact on the country’s job market. Marcos, who chairs the Senate Committee on Social Justice, Welfare, and Rural Development, expressed her concern about the possibility of AI replacing workers in BPO and Original Equipment Manufacturing (OEM) companies. Marcos also called for amendments to existing laws — such as the Intellectual Property Code, Revised Penal Code, and Cybercrime Prevention Act — and greater upskilling efforts to preserve jobs in the country.
Are you ready for AI?
The outsourcing news this week
11 May 2023
- BPO workers are 47% at risk of poor mental health – read article…
- Cyberattack to cost Capita $25Mn – read article…
- GoIT to train Filipinos interested in IT-BPM – read article…
10 May 2023
- BPO/ITES hiring dropped 13% in India – read article…
- PH authorities rescue over 1,000 ‘scam call center’ victims – read article…
- Wipro CFO admits to cutting fresher salaries to half – read article…
- Malaysia’s BPO/ITES recruitment down 24% in March – read article…
09 May 2023
- India named 2023’s Most Favored Offshore CX Delivery Location – read article…
- Only 30% of NZ firms work with outsourcing providers – read article…
- 91% of family offices predict outsourcing growth in 3 years – read article…
- Nigeria launches national outsourcing strategy – read article…
08 May 2023
- Jamaica to host Outsource2LAC Summit in June – read article…
- Customer Care BPO market to surpass $34Bn by 2028 – read article…
- PH senator pushes for AI regulation – read article…
- BPO office takeup in PH to grow further, says Colliers – read article…
05 May 2023
- 1Bn digital consumers to emerge in 10 years — Accenture – read article…
- Salesforce services market to reach $33.5 billion by 2029 – read article…
- 40% of Cebu BPO workers want to resign — survey – read article…
- Marcos bags $1.3Bn investment pledges from U.S – read article…
