The Outsourcing Week in Review: Thursday, April 13, 2023

  • Home
  • Articles
  • The Outsourcing Week in Review: Thursday, April 13, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review


Welcome back from Easter’s choc-fueled malaise! While everyone has been resting, the world of outsourcing has been powering on.  Let’s review the happenings in Philippine outsourcing this week.

Gains in the Business Process Outsourcing (BPO) industry helped lessen the 17.2% trade deficit in the Philippines. According to the Asian Development Bank (ADB), the service surplus in the outsourcing, finance, and tourism sectors and rising remittances from Overseas Filipino Workers (OFWs) helped cushion the country’s 17.2% merchandise trade deficit for 2022. A trade deficit is when a country imports more goods and services than it exports. However, the International Monetary Fund (IMF) clarified that “whether a deficit is good or bad depends on the factors giving rise to that deficit.”

In economic news, the Philippine headline inflation slowed from 8.6% in February to 7.6% in March. In its latest report, the PSA said the downtrend was mainly brought by three commodity groups — food and non-alcoholic beverages; transport; and housing, water, electricity, gas, and other fuels. PSA added that the average inflation rate of the Philippines for Q1 2023 stood at 8.3%. Meanwhile, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort believes the government needs to implement new tax measures to boost the country’s revenues. In a statement, Ricafort explained that intensified tax collections and more disciplined fiscal spending will “further improve the country’s fiscal performance and help achieve more sustainable debt management for the coming years/generations.” According to data released by the Bureau of the Treasury, government revenues dipped by 0.25% to PHP211.9 billion (US$3.89 billion) in February, partly due to a drop in Bureau of Internal Revenue (BIR) collections.

Manila will stand out among other major cities in Asia Pacific (APAC) this year thanks to outsourcing. In its latest report, think tank Oxford Economics said the city’s dynamic BPO sector could help stabalize overall employment growth for 2023 compared to other major APAC cities. In line with this, the Philippine Statistics Authority (PSA) reported an 8.4% increase in outsourcing headcount in 2022, with hopes of hitting 1.7 million by year-end. And the Philippine Economic Zone Authority (PEZA) is ready to step in to reach this target! During his first State of the PEZA Address (SOPA), PEZA Director General Tereso Panga said they are prepared to work with outsourcing industry associations and locators to ensure job creation and security in the country. Panga added that he plans to leverage BPOs, semiconductor and electronics, and health services to ensure the Philippines remains at the forefront of global investment destinations.

Speaking of job openings, outsourcing firm Sutherland Global Services will hire around 1,000 fresh employees in its new Ilocos site. Ilocos Norte Investment Office Head Rona Leigh Cheng Bueno said they are assisting the firm in its transition. The outsourcing company also partnered with Mariano Marcos State University (MMSU) to help upskill Ilocanos in customer service and technical support. Sutherland Philippines currently has ten centers across the country.

However, local industry groups believe a national talent upskilling program is needed to address the lack of qualified workers in the Information Technology And Business Process Management (IT-BPM) industry.  IT and Business Process Association of the Philippines (IBPAP) President Jack Madrid said an online talent hub and early-stage interventions are needed to improve the employability of senior high school and college graduates. Contact Center Association of the Philippines (CCAP) Managing Director Rosario Cajucom-Bradbury added  upskilling and re-skilling are essential to ensure workers have the critical skills needed for the future “beyond what artificial intelligence (AI) can do.” Cajucom-Bradbury added that discussions are underway to update the curriculum and boost the employability of Filipino graduates in the outsourcing sphere.

Meanwhile, Bacolod City Mayor Alfredo Abelardo Benitez assured the IT-BPM locators of a stable power supply. The mayor — who also aims to transform Bacolod into a “super city” — underscored the need to “take good care of” the industry and committed the city government’s assistance in finding more ways to expand for more employment. According to data from the Bacolod-Negros Occidental Federation for Information and Communications Technology (BNEFIT), the IT-BPM sector contributes an estimated PHP8.1 billion (US$ 148 million) annual cash infusion to the local economy.

The Philippines is also chasing several partnerships across the world.

Trade Assistant Secretary Allan Gepty said that the government is willing to adhere to the European Union (EU) conventions to guarantee the continuation of benefits from the Generalized System of Preferences Plus (GSP+). The GSP+ mechanism removes tariffs for over 66% of the products listed officially by the EU. However, beneficiary nations must ratify and implement 27 conventions on human rights, good governance, and sustainable development to receive benefits. Gepty said the country is committed to these conventions not only because of GSP+ but also because it is the state’s policy “to protect and respect human rights, protect and preserve the environment, protect labor rights and promote good governance.”

The United Kingdom (UK) also pledged to support Philippine startups and tech companies. UK Trade Commissioner for Asia Pacific Natalie Black said that many British companies are interested in spending more time on the Philippine shores. In a factsheet published in March, the UK and the Philippines saw a significant increase in their total trade in goods and services, including exports and imports, with a recorded jump of 35.5% or £610 million (US$758.4 million). The trade value between the two countries currently stands at £2.3 billion (US$2.9 billion).

Filipino economic managers are set to stage an economic briefing in the United States (U.S.) to convince and attract investors to do business in the Philippines. Department of Finance (DOF) Secretary Benjamin Diokno said the briefing would highlight how the Philippines transformed into one of the “fastest-growing economies in the fastest-growing region in the world.” The finance chief added that they would present the country’s 2022 economic growth at 7.6% on broad-based expansion. Lastly, the Philippine and Moroccan governments want to establish a labor cooperation deal to protect around 4,600 OFWs in the North African state. According to Philippine Ambassador to Morocco Leslie Baja, this solution will be a win-win situation that would help safeguard OFWs while opening the Moroccan market for more Filipino professionals. The deal would be a memorandum of understanding (MOU) and consider “some of the basic aspects of our concerns on migration and labor.”

More Filipinos prefer flexible and remote work is evident across various industries, said workplace consultancy Great Place to Work (GPTW). Speaking to BusinessWorld, GPTW Managing Partner and Principal Consultant Antoniette Mendoza-Talosig said the sentiment is clear through employees’ verbatim comments clamoring for more flexibility at work. Talosig added that it is now vital for employees to have a say in where and when to work. An earlier poll by the online employment platform JobStreet revealed that 46% of Filipino respondents prefer hybrid work, 28% want fully remote, and 26% prefer to work on-site.

Department of Information and Communications Technology (DICT) Undersecretary Anna Mae Yu Lamentillo highlighted the country’s efforts to bridge the gender gap. During the 67th Session of the Commission on the Status of Women (CSW67) in New York, Lamentillo cited several Philippine laws and programs that create an enabling environment where women’s and girls’ rights and safety are promoted and protected. She also affirmed the Philippine government’s commitment to ensure that everyone can fully participate in the digital economy — regardless of gender.

Digital fraud attempts in the Philippines dropped by by 18% despite landing in the top three countries with the highest fraudulent transactions in 2022. According to global credit firm TransUnion, phishing, smishing, third-party seller scams, and identity theft were the most commonly reported fraud schemes experienced by Filipinos last year. Amrita Mitra, chief operating officer at TransUnion Philippines, said businesses must continue to equip themselves with the proper tools to detect fraud at the first warning sign without inhibiting the consumer journey as fraudsters become increasingly sophisticated.

Always be on the lookout!

Source: Giphy

Thursday, April 13, 2023



12 April 2023

11 April 2023

10 April 2023

07 April 2023

06 April 2023

Read more Inside Outsourcing Newsletters here:

  1. The Outsourcing Week in Review: April 11, 2023
  2. The Outsourcing Week in Review: April 18, 2023

Start your
journey today

  • Independent
  • Secure
  • Transparent

Access fantastic talent at world-leading prices

Scale your business fast while reducing costs —
the average all-in employment costs in the
Philippines are typically 70% less than its
Western counterparts

Philippines United Kingdom Australia United States
Software Developer
HR Manager
Team Leader
Copy Writer
Customer Service
Virtual Assistance
Select a role to view salaries
Philippines $7,221
United Kingdom $39,913
Australia $62,653
United States $81,994

Avoid guesswork. Talk to the experts, free.

Get 3 free quotes

You can save 70% on staff costs, whilst driving quality & growth. Connect with an outsourcing expert to see how outsourcing can transform your business.

Why choose us?
  • Independent and unrivalled expertise
  • We carefully match you from 2,300+ leading suppliers
  • Access to Outsourcing Savings Calculator & Report

Get Started

How many staff to outsource?

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,300+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.