The Outsourcing Week in Review: Thursday, August 25, 2022

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Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

Taxes collected from Philippine Offshore Gaming Operators (POGOs) dropped 95% from their expected P32 billion (US$572 million) to P1.55 billion (US$27.7 million) during Q1 2022. Bureau of Internal Revenue (BIR) Commissioner Lilia Catris Guillermo said that the COVID-19 pandemic, the sector’s temporary restraining order, and the gambling crackdown in China were the main contributors to the decline of the taxes paid to the government. Philippine Senator Nancy Binay questioned the low tax figures as they will be used for the Universal Healthcare for Facilities Enhancement Fund. Guillermo responded that they expect taxes to pick up for the rest of the year as POGOs return to the country.

On the other hand, investment pledges from foreign sources surged by 105% to P46.23 billion (US$825 million) in Q2, with most of them going to the real estate sector. Among the different investment promotion agencies (IPAs), the bulk of foreign investments came from Subic Bay Metropolitan Authority (SBMA) at 71.34%. Regarding partner countries, the Netherlands came out as the Top 1 source of investments with P19.04 billion (US$340 million). According to the Philippine Statistics Authority (PSA), the foreign investment pledges from April to June could create 12,626 jobs for Filipinos. However, high hopes for foreign investments may be derailed due to the Philipppines’ human rights performanceDepartment of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo said that the country’s trade privileges with the European Union (EU) rely on the state of its human rights and whether it meets certain requirements at the “political level.” Rodolfo added that the engagement of senators with EU legislators is “very important” in smoothing out any issues. The Philippines is the only country from the Southeast Asian region that enjoys trade privileges with the bloc’s Generalized Scheme of Preference Plus (GSP+) scheme.

Amazon’s new project could drive further growth in the Philippine Information Technology and Business Process Management (IT-BPM) industry. Known as the Amazon Operation Services Philippines, Inc. (AOSPI), the P524.33 million (US$9.3 million) project will serve as a new services export provider of the firm’s Virtual Customer Services (VCS)Board of Investments (BOI) Managing Head Ceferino Rodolfo said the project’s approval shows that the country is not faltering in its efforts to advance the local IT-BPM market. The board also pointed out that this new investment emphasizes the Filipino workforce’s high technical skills and English proficiency. AOSPI is expected to generate over 1,000 jobs and contribute P959.5 million (US$17 million) to the Philippine economy. At the same time, IT-BPO provider Concentrix Philippines launched three new sites across Luzon, Visayas, and Mindanao. Called “One Concentrix Nation,” the launch event highlighted the remarkable growth of the company, its investments, and the career opportunities that it brings throughout the nation. Concentrix SVP and Country Leader Amit Jagga called the multi-site launch “a big growth milestone,” while Concentrix Site Director-Davao Finance Center (DFC) Ruby Jane Yonson said that the new facilities connote that the Philippine BPO industry is “thriving and in fact booming” despite the adverse effects of the COVID-19 pandemic.

Digitally integrated business services provider Teleperformance (TP) received a Great Place to Work Certificate in the Philippines for the fifth consecutive year. According to the Great Place to Work Institute, TP Philippines received about 85% of responses in the Trust Index Survey, which is a poll that evaluates companies based on their employees’ perception of them in terms of credibility, respect, fairness, pride, and camaraderie, among others. TP Philippines COO Jose Luis Marquez said that the recognition is “another milestone for TP and a testament to our vibrant, high-trust and people-centric culture.” This makes TP Philippines the first, the largest, and the only company in the country to be Great Place to Work-Certified for five straight years.

Congrats!

Remote staffing platform Cloudstaff recently appointed veteran technology industry executive and start-up CEO Jennifer Zanich as Chief Sales and Marketing Officer. In her new role, Zanich will drive continued growth of the firm’s remote staffing business in Australia and the United States, as well as its expansion into the United Kingdom and the rest of Europe. Cloudstaff founder Lloyd Ernst said that he is “delighted” to have Zanich on the firm as it accelerates into its “next stage of growth.” Zanich, for her part, added that she is looking forward to helping global companies access cloud staffing solutions that will help them realize their own growth ambitions.

In other news, Philippine Senator Grace Poe said that continuing the hybrid work setup could improve workers’ productivity and lessen their expenses. During a plenary session, the senator cited that an average worker living in the Mega Manila area spends about P56,000 (US$1,000) annually for commuting expenses and suffers 188 hours in traffic each month. Working from home will allow a worker to save time and money. Aside from monetary advantages, the senator pointed out that the WFH scheme boosts the physical, emotional, and mental health of employees. Poe has earlier filed Senate Resolution No. 125, which seeks to review the implementation of the Telecommuting Act in the Philippines. Other senators have also voiced their support for this call. Chiming in on the issue, Concentrix CEO and President Chris Caldwell said that he is confident that the government will allow an expanded WFH arrangement for the IT-BPM industry. He stated that the current administration “has been incredibly supportive [of] us trying to figure out a solution, and I’m more optimistic [than] I’ve ever been that they’ll come up with a workable solution.” This statement comes as Resolution No. 017-22 issued by the Fiscal Incentives Review Board (FIRB), which allows for a 70:30 hybrid setup, is bound to expire by September 12. The BPO leader stated that the industry’s ample growth opportunities would be affected if the WFH issue was not addressed.

Speaking of jobs, Micro, small and medium enterprises (MSMEs) could help generate more jobs for Filipinos, said Go Negosyo Founder Joey Concepcion. In an interview with Philstar Global, Concepcion said that this industry will help “hire more people which will, in the end, improve consumer spending and increase our country’s GDP.” The Go Negosyo founder and jobs group leader of the Private Sector Advisory Council (PSAC) disclosed that there had been talks with Department of Labour and Employment (DOLE) Secretary Benny Laguesma and President Ferdinand Marcos, Jr. to push growth in the local MSME industry in the coming years.

An estimated $22 million in business leads was brought on to the Philippines’ creative industry following a successful business mission to Tokyo, Japan. Organized by the Philippine Trade and Investment Center in Tokyo (PTIC Tokyo) — DTI’s Japan field office — delegates went to the East Asian country to meet with over 90 Japanese stakeholders in the industry. DTI Export Marketing Bureau (EMB) Director Christopher Arnuco said that they aim to optimize the growth prospects of the Philippine creative industry by exploring business opportunities in foreign markets and learning from global best practices. The participants also described the Tokyo mission as a “door-opening” strategy to outsource, promote and grow their businesses, as well as showcase the world-class talent of Filipino creatives. Six Japan-based startups have now expressed their interest in entering the Philippine market.

And DTI’s projects do not stop there. During a Senate public hearing, DTI Undersecretary Rafaelita Aldaba vowed to push for science, technology, and innovation-based industrial initiatives under the Marcos administration. The government official stated that this move would help the Philippines grow globally competitive and innovative industries.  Aldaba added that the three sectors would be the key to an inclusive and sustainable industrial transformation and development for the country. In line with this, the department is seeking to launch an Industry 4.0 pilot factory in the Philippines by 2023. The facility will be built in the Calabarzon area and will house advanced technologies like robotics, intelligence-of-things, drones, and virtual and augmented reality, among others. Mainly intended towards MSMEs, Aldaba revealed that they would be partnering with tech companies who would bring in advanced manufacturing equipment to the project. Tech company Siemens and commercial banking firm Union Bank of the Philippines are among the agency’s initial partners for the “cutting-edge” tech factory.

Filipinos are the most confident among the Association of Southeast Asian Nations (ASEAN) in believing that new technology will drive more growth in business. According to a survey by cloud computing firm VMware, 83% of Filipinos believe that the digital progress of the nation and its potential in jobs creation could leave a substantial impact on the country’s economy. Filipino consumers also show high reception to new technologies compared to other SEA countries. The survey showed that 55% are aware of the Metaverse and are optimistic about it. However, VMware Philippines Country Manager Walter So said that fostering digitalization and modernization requires more than the ability to acquire immersive technologies. “It also means creating environments where businesses can leverage innovation by delivering meaningful change to drive the best results for the customers,” he added.

Indeed has got bored at work and has taken up TikTok! The employment website recently created its own TikTok account to target the large millennial and Gen Z job seekers on the social media platform. The launch campaign, conceptualized as “You Better Work, Boss,” is based on research showing that the younger generation is already changing their relationship with work and expects employers to strive hard to attract and retain their employees. Indeed India and SEA Marketing Director Nishita Lalvani said that they “foresee the need to help this group of workers navigate the jobs sector whilst staying true to their beliefs.” TikTok channel @indeed_sg will feature diverse content on various trending issues such as mental health and recognizing work stress.

If you can’t beat them, join them!

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Thursday, August 25, 2022

NEWS THIS WEEK

 

24 August 2022

  • PH seeks Bangladesh’s cooperation in ICT, e-commerce sectors – read article…
  • DTI to push science, tech, innovation-based initiatives under current admin – read article…
  • EU trade privileges depends on PH human rights situation — DTI – read article…
  • BOP deficit hits 17-month high in July – read article…

23 August 2022

22 August 2022

  • New Amazon project to boost PH IT-BPM industry – read article…
  • Teleperformance Philippines receives 5th Great Place to Work certification – read article…
  • Concentrix CEO confident of WFH expansion in PH – read article…
  • Tokyo mission generates $22-M biz leads for PH Creative sector– read article…

19 August 2022

  • Foreign investment pledges jumped 105% in Q2  – read article…
  • Filipinos most confident in tech-driven growth among ASEAN – read article…
  • PH Senator: Hybrid work improves productivity and lessens expenses – read article…
  • BSP raises its benchmark policy rate by 50 bps – read article… 
  • Australian tech entrepreneur Jennifer Zanich joins remote workforce platform Cloudstaff – read article… 

18 August 2022

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$35,275
Virtual Assistance
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$39,066
$42,240
$31,797
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