The Outsourcing Week in Review (International): May 1, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

We’re so excited to bring you our brand new lineup of newsletters, so we’re going to get straight into it. It’s Monday, so we’re covering global outsourcing news. Let’s go!

First up, the global Business Process Outsourcing (BPO) market is projected to reach US$544.8 billion in 2032, growing at a compound annual growth rate (CAGR) of 8.5%. According to market research firm Market.Us, the rise of digitization and the increasing demand for cost-effective business solutions are driving the growth of the BPO market. The pandemic and shift to remote work have also made outsourcing essential for many businesses worldwide. Region-wise, Asia Pacific and North America will continue dominating the industry as demand for outsourcing services heighten.

At the same time, the global contact center software market size could grow to US$173.9 billion at a CAGR of 23.2% from 2023 to 2030. Market research firm Contrive Datum Insights (CDI) reported that this expansion would be boosted by the increased use of digital services to ensure customer satisfaction. In terms of service outlook, CDI expects the integration and deployment segment to expand over the next few years as more businesses adopt cloud-based contact center software options.

Jumping straight to Oceania, Fiji’s Minister for Communications and Deputy Prime Minister Manoa Kamikamica said that low mobile data cost attracts international outsourcing firms to the country. The island nation’s mobile data only costs US$1.50 per 10 gigabytes (GB), the lowest in the region and the fourth cheapest globally. Kamikamica added that digital connectivity and transformation are high on the government’s technology and ICT priorities, with several initiatives underway to bridge the nation’s digital divide. Speaking of outsourcing, industry body Outsource Fiji is looking to upskill and create a diverse and committed workforce.

According to Outsource Fiji CEO Sagufta Janif, they are currently engaging with offshore digital platforms to train locals and collaborating with international organizations to bring open-source learning platforms to the country. The Fiji National University (FNU), the Higher Education Commission, and the local BPO sector are also developing a certificate program to provide students with the technical skills needed to excel in the outsourcing industry.

Way to go, Fiji!

In other news, professional services firm Accenture will be laying off 75 workers in San Francisco, California. Accenture Senior Executive Kate Hogan said the layoffs are “due to a change in client contract requirements and [is] expected to be permanent.” While the firm did not reveal the client, reports claim that the affected workers are based at an office building leased to tech giant Google. Accenture’s announcement was released less than two weeks after publicizing its plans to cut 19,000 workers worldwide.

In contrast, Philippine-based BPO Six Eleven Global Services and Solutions aims to double its current headcount to 5,000 by 2025. Highlighting the company’s success, Six Eleven CEO Michael Bian stated that the firm grew by staying faithful to its aim of helping customers and putting people at the heart of its operations. Bian added that the firm is adept at various services and is ready to adapt to new technological innovations in the industry. The company services 90 clients worldwide in health care, technology, e-commerce retail, customer service, telemarketing, and back-office support.

Remember Capita’s IT outage last March? An internal investigation found that hackers may have accessed crucial “customer, supplier, or colleague data” during the cyberattack. And while Capita would not comment on the number and types of data affected by the breach, a Sunday Times report said that personal bank account details, addresses, and passport photos are now being leaked online by the hacking group Black Basta. Capita has about £6.5 billion (US$8.07 billion) in contracts with the United Kingdom government and employs more than 50,000 British citizens.

Industry association IT and Business Process Association of the Philippines (IBPAP) is highlighting the importance of talent development initiatives to the Philippine BPO sector. During an IT-BPM summit, IBPAP President and CEO Jack Madrid said that a “scalable, strategic, and sustainable talent attraction and development program” could help the sector reach its goal of creating 1.1 million new local jobs by 2028. Madrid added that the Philippines had already secured a place in the IT-BPM industry and now needs to work on the “talent crisis” to continue its growth and development.

It’s a good day for a job fair! Several outsourcing companies in the Philippines will participate in the National Labor Day Job Fair organized by the Department of Labor and Employment (DOLE). According to the agency, more than 59,000 jobs from different industries will be up for grabs in various job fairs nationwide, with BPO roles taking the lead. DOLE Secretary Bienvenido Laguesma said that the job fair is one of the employment recovery strategies to restart economic activities, restore consumer and business confidence, upgrade and retool the workforce, and facilitate labor market access in the Philippines.

Let’s keep those applications coming!

Monday, May 1, 2023

NEWS THIS WEEK

28 April 2023

• Global BPO market slated to hit $544.8Bn by 2032 – read article…
• Fiji to upskill outsourcing workforce – read article…
• IBPAP chief calls for talent dev’t initiatives for BPOs – read article…
• Rising employment, OFW remittances, BPO revenues keep SM bullish for growth – read article…

27 April 2023

• Global data center outsourcing market to reach $203.87Bn by 2028 – read article…
• Fiji Deputy PM: Low data costs attracts outsourcing investments – read article…
• Digital sector contributed 9.4% to PH 2022 GDP – read article…
• PH-based Six Eleven to fill up 5K seats by 2025 – read article…

26 April 2023

• Accenture to lay off 75 workers in California – read article…
• DesignRush names top call centers in April – read article…
• BPOs to participate in DOLE’s Labor Day job fair – read article…
• Malacañang approves two new PEZA ecozones – read article…

25 April 2023

• Capita finds data leak from March hack – read article…
• Global contact center software market may reach $173.9Bn by 2030 – read article…
• PH HIMS sector to tap into U.S. market – read article…
• PH still world’s leading IT-BPM center — ASoG – read article…

Read more Inside Outsourcing here:

1. The Outsourcing Week in Review (Mergers & Acquisitions): May 3, 2023
2. The Outsourcing Week in Review (Future of Work): May 5, 2023