The Outsourcing Week in Review: Thursday, October 7, 2021

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Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

BPO companies in the Philippines are expecting to report double-digit growth this year due to strong market demand.

According to the Contact Center Association of the Philippines (CCAP), the positive outlook of these firms was based on the forecast of nine per cent of 2021 revenue growth for the sector. CCAP Chairman Benedict Hernandez noted that the Philippine outsourcing industry has experienced an “uninterrupted year-on-year growth” since the 2000s. In agreement with Hernandez’s statement, RL Commercial REIT Inc. (RCR) President and CEO Jericho Go stated that the stability and resiliency of the local BPO sector is helping the country’s economy recover from the COVID-19 pandemic. The services offered by the outsourcing companies in the country have put the Philippines on the map as a prime BPO destination in the world – even surpassing other competing offshore countries.

To maintain its position as a top BPO location, the CCAP has publicly urged the Philippine government to adopt long-term policies that accommodate the post-pandemic workplace and the hybrid work model. As per the current laws, certain sector-specific tax breaks are only valid if the bulk of the company’s employees are working on-site. Several outsourcing firms had already expressed their concerns on this issue, saying that a reduced tax break can potentially make the expansion in the country more expensive and drive away foreign investors.

Outsource Accelerator has launched its new website – v3.0.  This is a complete rebuild offering a clean interface, easier navigation and enhanced functionality.  The leading outsourcing marketplace has allocated $250,000 to enrich the existing BPO directory.  The new directory will contain 3,200 BPOs globally and provide unparalleled analytics and information on each firm.

>> Please visit the new site – and tell us what you think.

In September, Outsource Accelerator’s Source Partner platform generated 831 inbound outsourcing inquiries, an 8.3% increase from the previous month, from 27 different sectors across 34 countries. A total of 478 outsourcing quotation requests were submitted (up 8%), representing an estimated 2,136 full-time staff with an estimated value of US$64 million.

>> Read the full September Performance Report or visit the SP analytics dashboard.

Dumaguete City in Central Visayas is planning to develop a 174-hectare, P23-billion “Smart City” that will transform the province into a bustling economic and tourism hub. The project, which is expected to be completed in five years, will be primed with a 5G-ready underground cable network for ICT locators, BPO firms, and other businesses that will operate in the center. This Smart City is also expected to generate “tens of thousands of jobs” for workers in the region.

The Philippine Economic Zone Authority (PEZA) is working to attract investments from around the world. The investment promotions agency recently signed the New Southbound Trade Treaty between the Philippines and Taiwan. In a social media post, PEZA Deputy Director-General Tereso Panga said that Taiwan’s strong manufacturing, energy, and information and communications technology sectors can be expanded in the Philippines. In addition, PEZA is eyeing more US-based firms engaged in aerospace, semiconductors, pharmaceuticals, and information technology (IT) sectors to invest in the country’s ecozones. Panga noted that they’re expecting American firms to invest in the country’s “still booming IT industry.”

In lockdown news, Metro Manila, the country’s capital region will remain under Alert Level 4 until October 15 despite the decline in the COVID-19 new daily cases. To help with the economic recovery, however, the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) gave an additional 10% operation expansion for indoor establishments that are reopening their businesses. Meanwhile, the Department of Trade and Industry (DTI) now thinks that the best way for the economy to recover is to allow all businesses to remain open at all alert levels but with varying operating capacities. DTI Secretary Ramon Lopez said that this would enable business operations to at least reopen. There are about 78,000 businesses that have been unable able to operate since the alert level system was implemented in mid-September.

In POGO news, the 2021 combined income of the Philippine Offshore Gaming Operators (POGO) is forecasted to drop to just P3.39 billion (US$66 million). The Philippine Amusement and Gaming Corp. (PAGCOR) said that several POGOs cancelled their licenses due to lockdowns and border restrictions that stopped their operations and barred the entry of their foreign workers into the country. The POGO exodus has caused a 25% revenue decline in 2020 and has also affected the property market in the country.

Unfortunately, Bloomberg has named the Philippines as the ‘worst place to be’ during the pandemic. The country was placed 53rd in their list of countries from Southeast Asia.  Bloomberg said that the country struggled to contain the Delta variant with its “inadequate testing regime” and that its lockdown measures significantly disrupted the economy and livelihood of the people. Countries including Indonesia, Thailand, Malaysia, and Vietnam — joined the Philippines in the bottom five of the list.

Mirroring Bloomberg’s ranking, the National Economic and Development Authority (NEDA) Secretary Karl Kendrick Chua said that the Philippine economy will take more than 10 years to recover from the economic effects left by the COVID-19 crisis and return to its pre-pandemic levels. According to Chua, the total cost of the pandemic will reach P41.4 trillion pesos (US$916 million) – which is more than twice the country’s 2020 GDP.

We’re hoping for a better 2022…

 

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Thursday, October 7, 2021

NEWS THIS WEEK

 

06 October 2021

05 October 2021

04 October 2021

01 October 2021

30 September 2021

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Philippines United Kingdom Australia United States
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$39,913
$62,653
$81,994
HR Manager
$9,506
$46,669
$66,518
$78,007
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$31,174
$45,428
$75,823
Accountant
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$58,479
$67,190
$72,923
Copy Writer
$4,767
$52,088
$56,600
$62,653
Customer Service
$3,337
$22,137
$29,717
$35,275
Virtual Assistance
$2,285
$39,066
$42,240
$31,797
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Philippines $7,221
United Kingdom $39,913
Australia $62,653
United States $81,994

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About OA

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

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Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines 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 900+ 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.