The Outsourcing Week in Review: Wednesday, April 7, 2021

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

President Rodrigo Duterte has finally signed the much anticipated CREATE (Corporate Recovery and Tax Incentives for Enterprises) bill into law – lowering corporate income tax from 30% to 25% for large corporations, and to 20% for small businesses. However, despite the enactment, Duterte vetoed certain provisions, adding limitations to the power of the Fiscal Incentives Review Board (FIRB), and giving the president the power to exempt any investment promotion agency from reform

It is hoped that the newly-signed bill will offer much-needed support for Philippine businesses that are struggling to cope with the impact of the pandemic. According to the IT and Business Process Association of the Philippines (IBPAP), the sector’s revenue dropped to $26.2 billion in 2020, slightly lower than 2019’s $26.3 billion revenue. Considering the pandemic and current economic conditions, the slight decline in BPO revenue doesn’t look bad at all.

Meanwhile, the strict COVID ECQ lockdowns have been extended past the original one-week period, which was due to finish on April 4.  The ECQ was extended for the Greater Manila area (comprising Metro Manila, Laguna, Bulacan, Cavite, and Rizal) until at least April 11, following rising cases and pleas from the Department of Health (DoH).

Independent research group OCTA said that the Enhanced Community Quarantine (ECQ) imposed last week was successful in lowering COVID-19 cases. The average number of daily COVID-19 cases decreased to 4,899 in Metro Manila from March 25 to April 1. To help the country’s fight against COVID-19, US pharmaceutical firm Johnson & Johnson has recently filed for emergency use of its vaccine in the Philippines. Food and Drug Administration (FDA) Director-General Eric Domingo said the application is now undergoing evaluation.

Outsource Accelerator (and Inside Outsourcing’s parent company) announced another record month for inbound outsourcing inquiries for March. The outsourcing platform’s Source Partner Program generated 65,573 visitors, 122,746 page views and 378 hot inbound inquiries.  The inquiries included 223 quotation requests and 123 phone consultations booked.  The quotation requests required a minimum of 934 staff (ie new Philippine jobs), valued at approximately $2,335,000.

GET 3 FREE QUOTES: 700+ BPO SUPPLIERS
LEARN MORE

International debt watcher, S&P Global, lowered its Philippine growth forecast to 7.9%, for 2021. S&P noted that the country’s inflation spike, lockdown restrictions, and slow rollout of the COVID-19 vaccines are all hampering its growth trajectory.

According to the Bangko Sentral ng Pilipinas (BSP), a total of $40.41 million of net Foreign Portfolio Investments (FPIs) or “hot money” left the country in February. FPI is the purchase of securities and financial assets by foreign investors. The central bank also revealed that the Philippines’ Foreign Direct Investments (FDI) climbed by 7.1% to $103.2 billion last year.

The Philippines is working on joining numerous global trade agreements in a bid to remain present and relevant amidst the shifting global norms. Department of Trade and Industry (DTI) Secretary Ramon Lopez expressed the country’s intent to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by writing a formal letter of intent to New Zealand. The country is also exploring Preferential Trade Agreement (PTA) negotiations with India, Korea, and other PTAs with Chile, Pakistan, and Turkey.

Locally, the Davao property sector remains optimistic as it sees signs of recovery. According to Damosa Land President Ricardo Lagdameo, inquiries to their offices and industrial projects “already started to really pick up in the fourth quarter of last year.” Lagdameo commended on the resiliency of the Business Process Outsourcing (BPO) sector, saying that Davao’s office recovery this year will be led by BPOs and traditional office demands.

In a statement, Coca-Cola Beverages Philippines Inc. announced that it will provide a free COVID-19 vaccination program for its 10,000 employees, as well as their immediate family members. Coca Cola’s local bottling arm said it allocated P2 billion for its employee assistance fund, ensuring that their workers receive their salaries and keep their jobs secured during the pandemic.

As the Philippines embarks on the ‘new normal,’ outsourcing providers also need to adapt and offer hybrid working arrangements. Everise, a customer experience solutions and technology company, offers flexshoring, an approach that “offers geographically distributed workforces that are hybrid and can work from anywhere.” With the proactive flexshoring approach, Everise claims to have outperformed its competitors when it seamlessly transitioned 95 per cent of its global workforce in response in the pandemic last year.

In other BPO news, McCain Foods, a global leader in planet-friendly food, made the decision to outsource its finance and accounting functions to WNS (Holdings) Limited. McCain Foods CFO Pierre Danet said they chose to partner with WNS “given the need for more intelligent automation opportunities close to our operations in India, accelerated by the rapidly changing dynamics brought on by the pandemic.”

GET THE COMPLETE TOOLKIT - FREE
LEARN MORE

>>> Got any burning news? Share your industry hot scoops and company press releases with Inside Outsourcing – the world’s leading outsourcing news hub.

 

Wednesday, April 7, 2021

NEWS THIS WEEK

 

6 April 2021

  • J&J files for emergency use of vaccine jab in PH – read article…
  • Last week’s ECQ implementation helped in lowering COVID-19 cases – OCTA – read article…
  • Rural telemedicine deterred by connectivity issues, doctor shortage – read article…

5 April 2021

2 April 2021

1 April 2021

31 March 2021

Related outsourcing resources

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