The Outsourcing Week in Review: Wednesday, September 23, 2020

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

The Department of Trade and Industry (DTI) will be conducting a webinar to encourage Australian business to outsource their IT-BPM (Information Technology – Business Process Management) services in the Philippines. The webinar, titled “Philippine IT-BPM Industry: Your Tool for Business Recovery and Continuity,” will focus on the country’s current initiatives to maintain resiliency and show readiness for business amidst the pandemic. The talk event will be hosted and moderated by Outsource Accelerator Founder and CEO Derek Gallimore and Australia Philippines Business Council (APBC) President Eduard Alcordo.

The Philippines remains confident in its position as an outsourcing destination of choice. At the 28th Metro Manila Business Conference, DTI Secretary Ramon Lopez said that despite the growth in emerging technologies such as artificial intelligence, the Philippines is still the “go-to guy” when it comes to IT-BPM despite the challenging business environment brought by the pandemic and the rise of new technologies.

The North American edition of the Outsourcing Summit 2020 is drawing closer.  It promises to be a unique full day virtual event, showcasing the best of the Philippine outsourcing industry to over 2,000 businesses across North America.  Register now for free tickets while they last.

The Philippines foreign direct investments (FDI) saw further improvement as it yielded $481 million net inflow for the month of June – up 7.1% from $449 million in the same period in 2019. The country’s FDI rose for the second straight month as the global economy gradually reopened after months of hard lockdowns due to the COVID-19 pandemic. This is good news considering that last week, we reported that total foreign investments (FI) approved by the Philippine government plunged by 68.8% in the second quarter of 2020, as revealed by the Philippine Statistics Authority (PSA). Approved investments are not actual investments, but rather commitments by foreign entities, which may come in the near future.

In line with this, the Department of Trade and Industry (DTI) has taken to wooing French businesses to improve trading relations between the two countries moving forward. Raman Lopez, DTI’s head expressed hope that France’s MEDEF International could assist in the REBUILD PH (Revitalizing Businesses, Investments, Livelihoods, and Domestic Demand) Program.

GET 3 FREE QUOTES: 700+ BPO SUPPLIERS
LEARN MORE

To mitigate the economic impact of the COVID-19 pandemic, the Bangko Sentral ng Pilipinas (BSP) has injected an additional P1.4 trillion of liquidity into the country’s financial system across various programs. This amount is equivalent to 7.3 per cent of the Philippines’ gross domestic product (GDP). BSP governor Benjamin Diokno remains positive, saying that authorities are laying the groundwork for a post-COVID economy that is well prepared and well equipped to move forward and surpass its past achievement under the ‘’new normal.’’ However, the country’s economy is still poised to shrink in the third quarter, with the BSP warning that the economy will sink deeper into recession, even with the eased lockdowns in place.

On a brighter note, a new economic zone began construction in Binalonan, Pangasinan this week. The 26-hectare North Luzon Aero Industrial Park (NAIP) is projected to generate 10,000 jobs and hopefully help with the employment setback caused by the ongoing public health crisis. According to the Philippine Economic Zone Authority (PEZA), the economic zone will be home to both the outsourcing (BPO) and aviation industries. In addition, another PEZA zone in the Visayas area has been given the green light. The Northern Negros Agro-Industrial Export Processing Zone (NNAIEPZ) project is to be built on a 160-hectare local government-owned property in Sagay City, Negros Occidental. The new project was approved following a COVID-style virtual signing ceremony via videoconference from the City Council’s session hall on Wednesday.

In other news, President Rodrigo Duterte signed into law a new bill aimed at bolstering the P165 billion (US$3.41 b) COVID-19 relief fund, including new taxes which will more than double revenues from Philippine Offshore Gaming Operators (POGOs). The new Bayanihan to Recover as One Act will increase POGO tax collection from P7 billion (US$144.5m) in 2019 to approximately P17.5 billion (US$361.2m) in 2020, according to House Minority leader Franklin Drilon during an interview with local radio station DWIZ.

Alibaba Cloud, the digital technology and intelligence arm of Alibaba Group, last week launched a digital ecosystem strategy in the Philippines aimed at helping businesses adapt to the post-pandemic pro-digital era. Alibaba Cloud said it currently has local partners from various industries such as retail, fintech, media, information and communications technology (ICT), BPO, healthcare, and education. The group aims to serve 5,000 businesses, targets to train 50,000, and certify at least 10,000 IT professionals in the country by the end of 2023.

Overseas, BPO firm Sykes has begun expanding its operations to rural Costa Rica. Sykes will initially staff the new office with around 100 people and eventually increase the headcount to 600 over the following 18 months. In Australia, HCL Technologies has agreed to acquire Australian IT, business and management consulting group DWS for an undisclosed sum. The acquisition will enhance HCL’s contribution to digital initiatives in Australia and New Zealand while strengthening its client portfolio across key industries.

 

Wednesday, September 23, 2020

GET THE COMPLETE TOOLKIT - FREE
LEARN MORE

NEWS THIS WEEK

 

22 September 2020

21 September 2020

  • BSP releases P1.4 trillion to boost economy – read article…
  • Bacolod LGU inspects BPO firms’ health protocol compliance – read article…
  • Telus International enhances track record as a global leader – read article…

18 September 2020

  • PH economy still poised to shrink in Q3 – read article…
  • Alibaba Cloud launches digital ecosystem strategy in Philippines – read article…
  • Baguio City sustains economic loss due to pandemic – read article…
  • PH remains a reliable IT-BPM destination – DTI chief – read article…
  • DTI to conduct IT-BPM webinar to attract Australian businesses – read article…

17 September 2020

16 September 2020

Related outsourcing resources

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