The Outsourcing Week in Review (International): May 22, 2023

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Happy Monday! Start the new week by loading up on the outsourcing industry‚Äôs hottest news across the globe. Are you ready for IO GlobalūüĆŹ?

Outsourcing is hot! Around 63% of organizations in the United Kingdom (UK) want to outsource more services to save on expenses. According to a study by market research firm Whitelane Research and management consulting company PA Consulting, most businesses want to outsource automation and simplify their IT systems. PA Consulting IT Transformation Expert Manish Khandelwal said that the UK outsourcing industry continues to thrive, and the industry players that are innovative, proactive, and can translate advancements in new technologies to deliver practical, tangible solutions at pace will have the opportunity to grow even stronger.

At the same time,¬†Hungary‚Äôs IT outsourcing industry expects to see a¬†10% annual growth rate in 2023, with an average yearly growth of 8.71% expected between 2023 and 2027. Damir ҆poljarińć, CEO of managed hosting provider¬†vshosting~, said outsourcing brings significant cost savings and efficiency gains by reducing the need for in-house IT specialists. ҆poljarińć added that by leveraging the expertise of service providers, Hungarian businesses could entrust their hosting needs to experienced professionals, allowing them to focus on their core competencies.

Latin America¬†also expects a¬†surge in tech talent demand¬†as Western companies become more interested in ‚Äúnearshoring.‚ÄĚ Companies like the mobile shopping platform¬†Fetch¬†and HR services provider¬†Deel¬†have already begun moving their operations to countries like Argentina,¬†Brazil, and¬†Peru. To cope with this growing demand,¬†TCS¬†LatAm Head Marcelo Wurmann said that employment services in the region should collaborate with local universities and technical schools to learn in advance the profiles of students in the pipeline.

Over in¬†South Africa, the Western Cape Government collaborated with its local BPO sector in organizing a¬†recruitment drive for unemployed youth. According to Western Cape Provincial Minister of Finance and Economic Opportunities Mireille Wenger, far too many young people need help finding work. With Western Cape‚Äôs reputation as one of South Africa‚Äôs leading locations for global business services delivery, the local government hopes that many of its young population will find employment in the sector. Successful candidates will receive a 12-month on-the-job ‚Äúlearnership‚ÄĚ with a BPO company, including a monthly stipend, and will earn an accredited qualification upon completion. Similarly,¬†a rural BPO unit was established¬†in the Banipore District in¬†India¬†to create employment opportunities for the local population ‚ÄĒ particularly the youth. The initiative is part of the¬†India BPO Promotion Scheme (IBPS), aiming to employ 150,000 people in the country. Equipped with modern infrastructure, the center contributes to the government’s¬†Digital India¬†campaign, and officials are exploring options to expand to other locations with network connections. So far, 750 individuals have been trained at the facility.

On the other hand, the¬†Philippine¬†BPO industry ‚ÄĒ which accounts for 10-15% of the global BPO workforce ‚ÄĒ might experience a few setbacks in the future. First, a study conducted by management consulting firm¬†Kearney¬†suggests that up to¬†100,000 jobs in the country are at risk of becoming obsolete, with retail and back-office roles taking the lead. Kearney Philippines Country Head Marco de la Rosa emphasizes the need for the Philippines to re-strategize its approach to maintain its position in the global BPO market, highlighting the importance of upskilling and reskilling workers to adapt to evolving demands. Meanwhile, the¬†IT and Business Process Association of the Philippines (IBPAP)¬†believes that the¬†gig economy could become a ‚Äúchallenge‚ÄĚ to the outsourcing industry. According to IBPAP President Jack Madrid, the pandemic catalyzed the rise of the gig economy, enabling people to work from home and opening up new opportunities for freelance workers. However, it has also become a ‚Äúleaking barrel‚ÄĚ to which the outsourcing sector is losing people to. Madrid stressed that the rising talent in the freelance industry is a ‚Äúforce that is hard to stop‚ÄĚ and something that the local outsourcing sector should pay attention to.

In other news, outsourcing firm¬†CGS¬†recently introduced its¬†Extended Reality (XR)¬†Immersive Learning as a Service (ILaaS)¬†solution, which integrates XR technology into employee training programs. The ILaaS platform, powered by CGS’s¬†TeamworkAR, provides a comprehensive approach to launching enterprise XR initiatives, including strategy, equipment selection, content creation, logistics, and device management. This solution removes barriers and enables large enterprises to save on costs and time-to-performance while executing collaboration at scale. BPO provider¬†ACCESS Group¬†also¬†launched a conversational AI program¬†called¬†Digital Intelligence Sales Agent (DISA)¬†in its Jamaican operations to enhance call center efficiency and improve client engagements. DISA, developed in collaboration with¬†VOCODIA, will assist live agents with scripted interactions during customer interactions. The implementation of DISA aims to leverage¬†Jamaica‘s educated workforce and favorable business environment.

Speaking of Jamaica, Senator Aubyn Hill, the country’s Minister of Industry, Investment, and Commerce, said that the outsourcing sector should not fear AI. In an interview, Hill said that technology should be embraced as a tool that can enhance businesses and make specific tasks easier for employees. He also believes that appropriate security measures will be implemented in the country to ensure the responsible use of AI technology.

Fear not, my friend

Source: Giphy

The outsourcing news this week

18 May 2023

  • Rural BPO unit in India brings job opportunities for locals –¬†read article…
  • PH-Israel bilateral trade surges 70% thanks to BPOs, other sectors¬†–¬†read article…
  • ResultsCX completes Bulgaria rebranding¬†–¬†read article…
  • Fiji’s BPO sector offers career dev‚Äôt opportunities, says BPO Council executive –¬†read article…

17 May 2023

  • Kearney: PH BPOs ‚Äėparticularly vulnerable‚Äô to changing job trends¬†–¬†read article…
  • Hungary turns to IT outsourcing for efficiency, cost-savings –¬†read article…
  • ACCESS Group introduces DISA AI in Jamaica¬†–¬†read article…
  • Outsourcing Inc. revenue up 13.2% in Q1¬†–¬†read article…

16 May 2023

15 May 2023

  • CGS introduces industry-first XR training solution¬†–¬†read article…
  • IBPAP: Gig economy a ‚Äėchallenge‚Äô to PH IT-BPM industry¬†–¬†read article…
  • Urban dev‚Äôt in PH countryside needed for incoming investors –¬†read article…
  • Jamaica‚Äôs outsourcing industry can embrace AI ‚ÄĒ Minister Aubyn Hill¬†–¬†read article…

12 May 2023

  • PSG Global Solutions wins Best RPO for 4th consecutive year¬†¬†–¬†read article…
  • Kelly named best U.S. temp staffing firm by Forbes¬†–¬†read article…
  • Bacolod to create IT-BPM ‚Äėsuper city‚Äô¬† –¬†read article…
  • Nearshoring boosts tech talent demand in LatAm –¬†read article…

Read more Inside Outsourcing here:

  1. The Outsourcing Week in Review (Mergers & Acquisitions): May 24, 2023
  2. The Outsourcing Week in Review (Future of Work): May 26, 2023

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