The Outsourcing Week in Review: Tuesday, March 29, 2022

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

The global Business Process Outsourcing (BPO) industry will reach US$215.9 Billion by 2026 growing at a compound annual growth rate (CAGR) of 5.2%. Market research company Global Industry Analysts (GIA) attributed this increase to the growing desire of businesses to save operational costs and solve the skill shortage. GIA estimated that the market would hit US$164.7 Billion by year-end.

It seems that insurance is a driver of the outsorucing growth. In a report by technology research and advisory firm Information Services Group (ISG), American insurance companies are turning to BPO providers to meet rising customer expectations and keep up with the huge employee turnover during the COVID-19 pandemic. The choice to work with outsourcing professionals is also boosted by the goal of keeping with the new competitors — such as Insurtechs — and keeping their data safe from cyberattacks. On the other hemisphere, Australian insurance carriers are hiring outsourcing firms to assist in designing innovative digital products. ISG said insurers are looking for carriers to improve customer experience, reduce costs, and better leverage data for competitive advantage.

In the Pacific, Fiji’s BPO industry is looking into a potential partnership with telecommunications company Telstra. Minister for Economy Aiyaz Sayed-Khaiyum said that Telstra’s acquisition of the local mobile network Digicel Fiji could bring in more growth opportunities in the sector over the coming months. Minister for Tourism Faiyaz Koya added that harnessing the telecom and BPO sectors could open more jobs in the country. To date, the country has over 5,000 outsourcing employees.

The Caribbean is also building its nearshoring capabilities. The government of Guyana agreed to invest in the construction of two buildings that will house various call center companies that operate in the country. During his 2022 National Assembly budget presentation, Minister of Finance Dr. Ashni Singh said that this move will cater to the nation’s rising BPO industry. Upon completion next year, the building is expected to generate 1,500 jobs for locals. This decision was made after outsourcing giant Teleperformance announced that they are scouting for a larger space in Guyana as they have already run out of space in their Georgetown facility.

Trinidad and Tobago is welcoming not only one — but two! —- outsourcing companies to their shores. Customer support outsourcing firm iQor launched a third location in the city of Chaguanas, increasing its local workforce to 2,000 people. Minister of Trade and Industry Paula Gopee-Scoon said that iQor’s latest expansion shows its confidence in the country as a “profitable and practical investment destination.” At the same time, financial and legal services provider Valenta signed a lease agreement with the Trinidad & Tobago International Financial Centre (TTIFC) to commence its local operations at the Port of Spain. Valenta Co-founder Jayesh Kasim explained that the island’s strong infrastructure, skilled workforce, and time zone make it a nearshore destination of choice for the company. The Australia-based firm is planning to recruit about 100 employees there by year-end.

In Jamaica, offshore consulting provider Mint Technologies led the groundbreaking ceremony of the Black River Tech Park. The 30,000 square-foot space is expected to serve as the newest BPO hub in the country. Mint Technologies CEO Alanzo McKoy said that he is planning to build “one of the biggest BPO operations in the Caribbean.” Parliament member Floyd Green is hoping that this groundbreaking ceremony could mark the rebirth of Black River, bringing in more investors and people in the town.

In other news, US-based outsourcing firm SupportNinja recently acquired remote staffing solutions provider Bolton Remote in a bid to expand the former’s services into new markets. Boston Remote’s Ireland and Singapore are expected to build up SupportNinja’s geographic locations, as well as strengthen its established operations in the US and the Philippines.

Meanwhile, British infrastructure outsourcing firm Serco has won a £212 million ($278 million) contract with the UK Health Security Agency (UKHSA). In the two-year deal, the third-party provider will assist in support services in the United Kingdom — including contact tracing, isolation follow-up, test inquiries, and test bookings. The move comes one month after the government ended its “routine” contact tracing policy for potential COVID-19 cases. Serco had already supported the government’s test and trace system during the height of the pandemic.

A new BPO is born! Impact SourcingCX recently launched its operations in the US, promising to provide a network of outsourcing services in strategic locations across the country.  Impact SourcingCX founder and CEO Stuart Discount explained that he created the company to provide BPO access to countries where their services are most needed. Discount also believes that the BPO industry can employ communities in less developed countries.

Just don’t ask for a discount!

According to a joint survey, 35% of New Zealand’s workforce would need digital skills training to find jobs next year. The report, by Amazon Web Services and economics consulting firm AlphaBeta, frond that eight in 10 employees agreed that they need more digital skills to cope with changes in their jobs. This is most crucial as the research also stated that cloud-based and cybersecurity expertise are projected to be the most in-demand skills in the country by 2025.

Staying ahead of this challenge, Microsoft said that they are looking into expanding their cybersecurity skills campaign to 23 countries. The tech giant said that this expansion could help “combat unemployment threats” in the sector. Microsoft’s cybersecurity skills campaign partners with local community colleges to provide free cybersecurity curriculum and training for those who are interested in joining the industry. Moreover, a collaboration with the Organization for Economic Cooperation and Development (OECD), computer science training program Ecole 42, and LinkedIn’s learning platform is in the works to develop a detailed skills gap report in selected countries and assist them in expanding their programs reach to remote places.

Did someone say ‘remote’? About 53% of employees worldwide are pushing for a hybrid working model where more than half of their time will be spent in remote work. A study by job recruitment solutions provider Lee Hecht Harrison (LHH) and its parent company The Adecco Group revealed that 82% of workers feel “more productive” at home than their offices for the last two years. LHH President John Morgan said that this shows that workers are not opposed to going back to their offices, “but they want to do so on their own terms —with more flexibility and recognition both for their work contributions and their mental and physical health.”

Meanwhile, boomers are dusting off the suit and rejoining the workforce, with about three per cent of American retirees are going back to work. In an interview with Yahoo Money, Indeed Hiring Lab Director of Economic Research Nick Bunker said that this is due to an extreme financial need post-pandemic and the widening employment gap in the country. At the start of the pandemic, millions of older workers chose or were forced to step out of their jobs. The majority of them have not signed for their Social Security benefits, driving them to find new employment now that the economy is opening up again.

Welcome back to the team!

Tuesday, March 29, 2022

NEWS THIS WEEK

28 March 2022

• Valenta expands to Trinidad and Tobago – read article…
• Microsoft to expand cybersecurity campaign to 23 countries – read article…
• 3% of retirees in the US rejoin the workforce – read article…
• itel to open 1,500 jobs in Jamaica – read article…

25 March 2022

• Axiom to exhibit eClinical platform at outsourcing conference – read article…
• Investors break ground for new tech park in Jamaica – read article…
• StaffHealth.com creates new RPO division – read article…
• More than half of workers are pushing for hybrid work — LHH, The Adecco Group study – read article…

24 March 2022

• Remote work platform Omnipresent closes $120M Series B funding round – read article…
• iQor opens 3rd facility in Trinidad and Tobago – read article…
• Telstra looking to tap Fiji’s BPO sector – read article..
• Serco wins £212m ‘Test and Trace’ contract with UKHSA – read article..

23 March 2022

• Digital skills prerequisite for employment in NZ – read article…
• Global BPO industry to hit $215.9 Bn by 2026 – read article…
• US insurance carriers turn to outsourcing post-pandemic – read article…
• Beyondsoft Consulting opens operations in Costa Rica – read article…​

22 March 2022

• Australian insurers hire BPOs for improved CX – read article…
• Impact SourcingCX officially launched its US services – read article…
• SupportNinja acquires Bolton Remote – read article…
• Guyana to invest in call center infrastructure – read article…

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: March 24, 2022
2. The Outsourcing Week in Review: March 31, 2022