The Outsourcing Week in Review: Tuesday, November 8, 2022

Global Inside Outsourcing
  • Home
  • Articles
  • The Outsourcing Week in Review: Tuesday, November 8, 2022

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

In today’s outsourcing treasure trove… other countries are stepping up their outsourcing game. Could they catch up with the big leagues? 

China continues to step up as its outsourcing industry as service contracts rose 12.9% year-on-year in the first nine months of 2022. In the latest data released by the Ministry of Commerce, the sector secured deals worth 1.379 trillion yuan (US$192.7 billion) from January to September. The country’s outsourcing contracts with the European Union (EU) expanded the most at 14.1%, followed by the United States (US) and members of the Regional Comprehensive Economic Partnership (RCEP).

Vietnam’s tech industry is expected to expand with a compounded annual growth rate (CAGR) of 11.93% by 2027. According to market and consumer data firm Statista, the nation is set to benefit from the rising demand for global information technology (IT) services. The data firm also revealed that Vietnam’s IT Services revenue market could reach US$1,331.00 million by year-end. In response, the Vietnamese Ministry of Information and Communications has set a target of opening 100,000 digital firms in the country by 2025, up 56.25% from 2021.

Meanwhile, the Purchasing Managers’ Index (PMI) of India’s services industry continued to grow in October edging up to 55.1. According to a poll by finance and insurance company S&P Globalthis growth was mainly underpinned by a robust domestic demand for third-party services. S&P Global Economics Associate Director Pollyanna De Lima said that the latest results show that India’s service providers had no trouble securing new work in October despite inflationary pressures in the economy. The index has remained above 50 for the last 15 month, with anything above 50 indicating expansion. The survey also revealed that business expectations improved to an almost eight-year high for 2023.

Jordan promoted its IT outsourcing and Business Process Outsourcing (ITO/BPO) industries at the 2022 Web Summit. The event, which brought global tech industry players, was a chance for the Middle Eastern kingdom to promote itself as an ideal destination for investments in the ICT sector. Young Jordanian tech talents were also highlighted, as well as the nation’s competitive advantage, governmental support, and entrepreneurship framework. Meanwhile, Trinidad and Tobago’s investment promotion agency InvesTT will showcase the country’s ICT and BPO industries in the Caribbean Investment Forum (CIF 2022). InvesTT President Sekou Alleyne said that the event falls squarely into the agency’s mandate to support the government’s economic diversification thrust through investment promotion and securing of investments. So far, Alleyne confirmed that private sector representatives from 17 countries and 400 other participants would be present at the event. Thirteen investment promotion agencies from the Caribbean will also seek foreign direct investment at the forum.

Not to be outdone, Bangladesh aims to open about three million jobs and earn five billion dollars in exports in its local ICT industry. To reach this target, the country will be hosting Digital World 2022 this December. Feature industry summits, expos, and concerts,  State Minister for the ICT Division Zunaid Ahmed Palak hopes this event will give Bangladesh “an idea of our capabilities and future opportunities in the technology sector.” So far, Bangladesh has created more than two million job opportunities and made about 1.5 billion dollars in the ICT sector’s export earnings.

Women and the young population continue to dominate South Africa’s BPO workforce, said industry body Business Process Enabling South Africa (BPESA). According to BPESA CEO Reshni Singh, SA’s youth accounted for 89% of the new jobs in the BPO sector for the first half of the year, while women make up two-thirds (or 67%) of the country’s outsourcing industry. Given the rise in unemployment in South Africa, Singh promised that they are looking for solutions to end youth unemployment and economic challenges in the nation. Speaking of women, Outsource Fiji recently discussed the childcare issues faced by the outsourcing industry’s female workforce. In a roundtable discussion, Outsource Fiji and the International Finance Corporation (IFC) talked about how childcare support can further the growth of female workers in the sector. IFC Country Manager for AustraliaNew ZealandPapua New Guinea, and the Pacific Islands Judith Green said that the first step in this problem is to develop good practices and policies to support parents. Outsource Fiji Executive Director Sagufta Janif added that their agency will continue to search for ways to assist members and work with its stakeholders to create relevant policies for workers with children — especially mothers.

Egypt’Information Technology Industry Development Agency (ITIDA) will assist the expansion of 21 local IT companies to Europe through the agency’s CBI’s Export Coaching Program. Aimed primarily at supporting small and medium enterprises in the IT outsourcing sector, the program also helps fulfill the growing demand for ICT professionals in Europe. This initiative will last for three years, during which global and local experts will coach and assist beneficiary SMEs in devising market entry strategies to help them expand into the EU.

Congratulations on these expansions!

In other news, several mergers and partnerships unfolded over the past week. Here are some highlights:

BPO giant Teleperformance acquired recruitment process outsourcing (RPO) firm PSG Global Solutions to strengthen the firm’s added-value Specialized Services activities, maintain a major position in the dynamic US healthcare vertical, and boost their digital recruitment practices. Teleperformance President of Specialized Services Scott W. Klein said that this deal “will drive enhanced growth and new solutions and allow for the achievement of [TP’s] never-ending focus on delivering total and complete client satisfaction.” Even though it is still fresh, this merger is already projected to create immediate value for Teleperformance shareholders by year-end. Similarly, multinational IT services and consulting company Capgemini acquired two consultancy companies, namely Quantmetry and Quorsus, simultaneously. According to Capgemini Invent Managing Director Mathieu Dougados, the acquisition of Quantmetry strengthens the firm’s position in the artificial intelligence (AI), data consulting, and transformation market. Meanwhile, Capgemini Executive Board Member Anirban Bose noted that the acquisition of Quorsus brings a “set of in-demand compliance and regulatory expertise to reinforce our capital markets services for financial institutions.” Both firms add over 200 employees to its to Capgemini’s operations.

US-based personal insurance distributor Confie launched a new facility for its BPO division called Seguros Confie in Tijuana, Mexico. The new facility — Confie’s second in the country — will help accommodate the company’s rapid growth in customer call center and outsourcing services and facilitate expected future development. Confie CEO Cesar Soriano said this “marks significant growth” for their BPO division and an even greater opportunity for businesses to leverage the firm’s transformative business outsourcing tools to increase customers and revenues. Concurrently, consulting and services company Duco Consultancy is expanding its services into Fiji, opening about 150 new job opportunities for locals by year-end. Duco Consultancy Founder and CEO Chandan Ohri said they chose to locate in the South Pacific nation due to its “young, dynamic workforce and its position as a vibrant and connected hub.” Investment Fiji and Outsource Fiji helped facilitate this expansion by providing the company with industry updates, information on tax incentives, and collaboration with relevant agencies.
Online recruitment across the Gulf region grew by 15% year-on-year last August. According to the latest Monster Employment Index (MEI) report, the BFSI (Banking, Financial Services, and Insurance) sector recorded the sharpest increase in the region’s e-recruitment activity with 37%, followed by retail/trade and logistics and the oil industry. Online demand for professionals grew within the software, hardware, and telecom sectors by 19%. By country, the United Arab Emirates (UAE) saw the biggest MEI improvement, with 19%.

In line with MEI’s findings, talent solutions firm Randstad Sourceright reported that there is still an “unrelenting demand” for tech skills, financial management, and customer service professionals in today’s workforce. However, the demand for soft skills — such as communication, teamwork, and creativity — is also rising at 51% year-on-year. In its latest report, Randstad Sourceright Global CEO Mike Smith said that complicated labor trends had driven companies to rely on data-driven market intelligence to guide their talent strategies. The paper also suggested that employers can attract more tech talent by offering remote work opportunities or fostering a “resilient and adaptive workforce.” Market research company Frost & Sullivan suggests that maintaining a hybrid workplace could be the most effective way to stay competitive in the labor market and attract and retain the most talented professionals. In its latest white paper, Frost & Sullivan revealed that most businesses intend to support a hybrid workplace if it means getting ahead of their competitors. Melanie Turek, Frost & Sullivan VP of Connected Work, emphasized that firms “must shift from a reactive to a proactive approach.” She added that companies should also ensure they have the right technology and culture to support all their employees, regardless of where they work.

More than half, or 68%, of companies in Hong Kong had difficulties hiring talent in the past 12 months than at any point in the last five years. According to Bill Lee, Managing Director of job recruitment platform JobsDB, skills and talent mismatch was the “cause” of the city’s labor shortage. At the same time, poll respondents attributed the labor shortage to raised expectations for salary and benefits, difficulties in recruiting talent, and challenges in hiring experienced staff. Moreover, 38% of the employers believed that more Hongkongers were planning to emigrate to BritainCanada, and Australia, making hiring more difficult for local companies.

Calling all BPOs… maybe there’s a problem looking for a solution. You’re welcome.

https://media.giphy.com/media/z8XHWziJj81I4/giphy-downsized.gif?__s=xxxxxxx

 

Tuesday, November 8, 2022

NEWS THIS WEEK

 

07 November 2022

  • Firms to use hybrid work as a competitive strategy, says Frost & Sullivan study– read article…
  • Alorica appoints new APAC, India leaders  – read article…
  • 68% of companies in Hong Kong found it harder to hire talent in the past year — JobsDB  – read article…
  • China’s service outsourcing contracts up 12.9%  – read article…

04 November 2022

03 November 2022

  • InvesTT to promote ICT, BPO sectors in CIF 2022 – read article…
  • Telecom provider Rewardsco invests in a new BPO facility – read article…
  • Jordan to bolster ITO, BPO sectors at the 2022 Web Summit  read article…
  • Tech, finance, and customer service skills are the most in-demand — Randstad study – read article…

02 November 2022

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
$7,221
$39,913
$62,653
$81,994
HR Manager
$9,506
$46,669
$66,518
$78,007
Team Leader
$7,152
$31,174
$45,428
$75,823
Accountant
$5,959
$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
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 3,000+ 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 3,000+ 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.