The Outsourcing Week in Review (International): May 29, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

Get ready to uncover the latest developments in the industry over the past week. Spoiler alert: Several countries are moving to position themselves in the global BPO market.

Nearly $1 billion in workplace services contracts will be renewed this year. A workplace service lets a company’s employees work from anywhere, anytime in a secure environment through technology and support services. As the WHO declared the end of COVID, global IT research firm ISG says businesses are focusing on planning their workplace of the future. With companies prioritizing knowledge management tools, self-service portals, and mobile devices in their future workforce strategies, the nature of the new workplace service contracts will evolve. As the $1bn of new contracts roll over, the world will see the offices of the future further embrace the ‘new normal’.

Meanwhile, the global healthcare industry is emerging as a “bright spot” for its Information Technology and Business Process Management (IT-BPM) sector in the Philippines. According to IT and Business Process Association of the Philippines (IBPAP) President Jack Madrid, the country’s abundant supply of registered nurses could boost the sector and help achieve its target of 1.7 million full-time employees and US$35.9 billion in revenues by year-end. The Department of Trade and Industry (DTI) also revealed that participation of Philippine-based local Healthcare Information Management Services (HIMS) in a trade and investment show resulted in initial sales of US$72.9 million while generating potential direct investments of US$13 million.

However, several Filipino analysts fear a potential debt default in the United States (U.S.) could affect the Philippine economy. According to Diversified Securities Equity Trader Aniceto Pangan, a debt default by the U.S. — the world’s largest economy — would definitely affect the Philippines as it relies heavily on OFW (Overseas Filipino Workers) remittances and the BPO industry. Economic experts added that the situation requires cautious monitoring and preparedness to navigate potential challenges

Problems are also rising in India’s tech sector! First, S&P Global Ratings predicts a 5% slowdown in revenue growth for IT firms by FY2025. Macroeconomic concerns and cautious IT spending contribute to this deceleration, compounded by the sector’s exposure to the banking industry. Nevertheless, S&P identifies opportunities for stability, including cost-efficient projects, vendor consolidation, cloud migration, long-term partnerships, and the adoption of generative artificial intelligence (AI). At the same time, the Indian Staffing Federation reported that nearly 6% of outsourced contract workers lost their jobs in India’s IT sector during January to March quarter. The industry, which played a vital role during the pandemic, now faces challenges arising from inflation, supply chain disruptions, and the impact of geopolitical events. The Federation added that the current global slowdown in tech spending is affecting the recruitment of flexi IT workers

Despite these setbacks, we are seeing efforts to create more opportunities, especially for women returning to the BPO workforce. The sector recorded the third-highest share of job postings (14%) for women returnees. According to Sekhar Garisa, CEO of talent platform foundit, it is heartening to see more industries hire female returnees in various roles. Other sectors that demonstrated considerable demand include telecom/ISP (19%), recruitment/staffing (15%), advertising, PR, MR, and events (12%), and IT (11%).

On the other hand, other countries are looking to improve their outsourcing sectors. The Bangladesh Association of Contact Centre and Outsourcing (BACCO) and the Business Promotion Council (BPC) recently organized a BPO Summit that promoted back-office services in Bangladesh. The summit featured various activities, including a career council, seminar, and job fair. During a press conference, BACCO General Secretary Towhid Hossain expressed optimism about the sector’s potential in Bangladesh, targeting US$1 billion in revenue and creating new employment opportunities by 2025. Similarly, an IT/BPM Career Fair 2023 will occur in Sri Lanka from May 30th to June 1st. The event, organized by SLASSCOM and  Eastern and Southeastern Universities in the country, aims to facilitate the growth of the IT/BPM sector. It will also ​​provide students, graduates, and professionals a platform to explore career opportunities, enhance their skills, and network with industry experts

Brazil’s ICT body, Brasscom, is preparing a national development plan to enhance the country’s technology sector. The plan encompasses proposals to leverage current technologies and position Brazil as a major exporter of software and services. Initiatives include advocating for tax reforms, promoting sector-specific policies, collaborating with the education ministry, and regulating AI.  According to Brasscom projections, Brazil is expected to attract US$134 billion in digital transformation investments from 2023 to 2026.

Finally, recruitment company Randstad named the IT & Communications (ITC) sector the “most attractive industry to work in.” The latest findings from Randstad’s Employer Brand Research (REBR) show that 62% of the global workforce is willing to work for a company in the ITC sector. Around 89% of survey respondents also expressed a strong interest in upskilling opportunities, with a quarter willing to retrain for a new role.
Attracting more positive energies for the outsourcing industry.

The outsourcing news this week​

25 May 2023

• Potential U.S. debt default threatens PH economy, BPO industry – read article…
• Genesys Cloud CX experiences 30% YoY customer growth – read article…
• Indian IT firms’ revenue to drop by 5% in FY25 – read article…
• ITC regains spot as ‘Most Attractive Industry to Work In’ – read article…

24 May 2023

• TaskUs secures spot in Gartner Market Guide – read article…
• ibex named BPO of the Year finalist in CCW Awards – read article…
• India’s IT sector loses nearly 60K contract workers – read article…
• Global KPO market to reach $90.55Bn by 2027 – read article…

23 May 2023

• SLASSCOM to organize IT/BPM career fair – read article…
• IT-BPM expert urges reforms in Sri Lanka labor laws – read article…
• High demand for women returnees seen in India’s BPOs – read article…
• $1Bn workplace services contracts set for renewal in 2023 – read article…

22 May 2023

• Bangladesh’s BPO Summit to boost back office services, employment – read article…
• WNS reports strong financial performance for FY23 – read article…
• Healthcare sector to boost PH IT-BPM industry, says IBPAP – read article…
• Lawmaker files welfare bill for PH BPO workers – read article…

19 May 2023

• Brasscom to present plan for boosting Brazil’s ICT industry  – read article…
• GSAJ lauds Jamaica outsourcing event – read article…
• Global SaaS market to reach $819Bn by 2030 – read article…
• 67% of Indian firms plan to outsource security, says IDC – read article…