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

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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…

Thursday, October 7, 2021

NEWS THIS WEEK

06 October 2021

• SBCorp approves P5.6B loan for MSMEs – read article…
• 3M PH expands, aims to breach 1k employee count – read article…
• PH to procure 100M COVID shots next year – read article…
• 95% of PH firms plan to strengthen zero trust initiatives – Okta – read article…

05 October 2021

• Long-term WFH and remote work policies urged by BPO sector – read article…
• 174-hectare, P23-bn worth Smart City to be built in Dumaguete – read article…
• PH GDP growth slowed to 4.6% in Q3 – survey – read article…
• PEZA hoping to attract more US investors – read article…

04 October 2021

• BPO demand drives the sector’s resilience – read article…
• PH economy to take over 10 years to recover from the pandemic – read article…
• POGO income expected to drop to P3B this year – read article…
• Taiwanese investments in PH reached P32.3B – read article…

01 October 2021

• Unemployment rate jumped to 8.1% in August – PSA – read article…
• Metro Manila under alert level 4 until Oct. 15 – read article…
• UNCTAD added PH to countries with free-flow data – read article…
• DTI proposes biz opening in all alert levels – read article…

30 September 2021

• BPOs forecast double-digit growth in 2021 – read article…
• PH named the worst place to be in COVID – read article…
• PEZA targets addt’l investments from Taiwan – read article…
• PH drops to 58th spot in digital competitiveness ranking – read article…

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: October 5, 2021
2. The Outsourcing Week in Review: October 12, 2021