The Outsourcing Week in Review: Thursday, May 13, 2021

Outsourcing-week-in-review

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

The Outsource Accelerator platform generated a record number of outsourcing inquiries over the last 12 months.  The platform generated 556,765 visitors and 1,118 inbound outsourcing quotation requests worth over $164 million in contract value and requiring over 5,470 full-time jobs, according to Outsource Accelerator’s April performance report.

In a live interview with One News this week, Derek Gallimore, the CEO of Outsource Accelerator said that the Philippine outsourcing industry has seen a significant increase in global demand among small- to medium- businesses (SMBs), with April’s 341 inquiries coming from over 23 different industry sectors from 32 countries. Gallimore said that “outsourcing is booming” and predicted that the offshore staffing industry would add 40 million more full-time jobs over the next 10 to 20 years.

>>> MORE:  See the full One News interview with Outsource Accelerator here

The Philippines is further demonstrating resilience and strong performance despite the continued strain of the COVID pandemic. According to Philippine Economic Zone Authority (PEZA) Director General Charito Plaza, the PEZA economic zones were operating at 90% capacity during the MECQ (Modified Enhanced Community Quarantine) last month. Due to the continued strength and presence of the outsourcing sector, Plaza has, in a popular move, requested vaccine czar Carlito Galvez, Jr., to include BPO employees in the priority category of COVID-19 vaccination.

For the first two months of the year, the Bangko Sentral ng Pilipinas (BSP) registered $1.569 billion of foreign direct investment (FDI) net inflows, up by 20.6% year-on-year. The central bank said that most equity capital placements came from investors in Singapore, Japan, the Netherlands, and the US.

GET 3 FREE QUOTES: 700+ BPO SUPPLIERS
LEARN MORE

Further, the Department of Trade and Industry (DTI) has been urging various European companies to invest in the Philippines’ electronics and IT-BPM (Information Technology-Business Process Management) industries in response to the recent tax changes. Trade Secretary Ramon Lopez noted that the lowered Corporate Income Tax (CIT) Law makes it a good time to invest in the country. Outsourcing revenues have been cited as a factor in keeping the Philippine peso resilient as the country continues to fight against COVID-19. On Wednesday, May 5, the peso closed at P48.025 versus the dollar – its strongest finish since February 15.

The DTI has recently launched its Artificial Intelligence (AI) Roadmap, which aims to increase the adoption of AI in various industries, including BPO. According to Lopez, the agency is aiming to make big data processing “the next sunny sector” in the country after the outsourcing sector’s supposed maturation and plateau. The good news is that tech giant Google is here to help through its subsidiary, Google.org. Through its campaign “Go Digital ASEAN,” Google.org is set to teach digital skills training to at least 25,000 Filipinos.

Editor’s note: Inside Outsourcing ardently opposes the common consensus that outsourcing is a ‘sunset industry’.  In stark contrast, the outsourcing industry is positioned to grow faster and bigger than ever.

In March 2021, the Philippines recorded its lowest unemployment rate since April 2020 – which was conversely the highest recorded ever. According to data released by the Philippine Statistics Authority (PSA), the country’s unemployment rate went down to 7.1% in March 2021, a dip from the previous month’s 8.8%. Despite this, the economic impact of the COVID-19 pandemic remains pronounced. PSA reported that the National Capital Region (NCR) has lost P627.7 billion in production last year, adding that the Gross Regional Domestic Product (GRDP) declined 10.1 per cent.

In COVID-19 vaccination updates, the Philippine government is set to provide a green lane for vaccine manufacturers. According to the Anti-Red Tape Authority (ARTA), the initiative will help pharmaceutical firms establish a production facility within 10 months.

Overseas, South Africa, a rising BPO destination, is allocating funds to better equip its outsourcing sector. South Africa’s Cape Town City, together with the Cape Business Process Outsourcing (CapeBPO), will utilize ZAR55 million (US$38.2 million) in funds to equip 3,000 young people with the training and skills needed to succeed in the sector. The city has previously spent ZAR28.5 million (US$1.98 million) between July 2018 and March 2021 in an effort to increase the nation’s outsourcing potential.

More and more countries are realizing the advantages of the outsourcing sector. To stand out, the Philippines has no choice but to keep up and take various steps ahead to remain the leading BPO destination.

GET THE COMPLETE TOOLKIT - FREE
LEARN MORE

 

Thursday, May 13, 2021

NEWS THIS WEEK

 

12 May 2021

11 May 2021

  • BPO firms express ‘strong interest’ in Iloilo City – Megaworld – read article…
  • PH FDI up 20.6% in 2021’s first two months – read article…
  • South Africa voted 2021’s most favored offshore CX location – read article…
  • Outsourcing industry “absolutely booming” – OA CEO Derek Gallimore – read article…

10 May 2021

7 May 2021

6 May 2021

Related outsourcing resources

    Transform your business
    Icon
    CONSULT
    Icon
    3 QUOTES
    Icon
    START
    Icon
    FAST-TRACK
    Icon
    TOOLKIT
    X