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Welcome to Inside Outsourcing: The Outsourcing Week in Review
THE WEEK IN REVIEW
Inside Outsourcing Philippine Edition is here! This week, we are giving you a peek into the future, and some award-winning industry luminaries.
At least 40 million small and medium enterprises (SMEs) worldwide will seek outsourced services by 2040, and the Philippines can become the major provider. According to Outsource Accelerator (OA) CEO Derek Gallimore, the trifecta of national government’s support, infrastructure development, and the private sector’s assistance “is the pathway for the country to connect to the global economy and the superpowers of the international economy.” Speaking at Philippine Online Freelancing Conference (POFCon) held in Iligan City, on Nov. 8, the outsourcing expert said that Filipinos need to continue to upskill and keep learning new skills to remain competitive in the global market.
The past week presented a lot of victories for BPO firms in the country. To start, US-based BPO provider PartnerHero finally opened its first physical office in the Philippines three years after it began its operations in the country. PartnerHero’s VP of Global Workplace Vicky Moreno said they have built an amazing team in the country “by putting our people first and prioritizing their growth and well-being.” Moreno added that they are excited to expand in the country and to continue their commitment to growing here in the Philippines.
Managed service solutions provider Eastvantage was named a Silver winner for two categories in the HR Excellence Awards (HREA) 2022. Winning the Excellence in HR Innovation category and the Excellence for Crisis Management and Recovery category, the firm’s VP of Shared Services, Beth Ballesteros, said they are happy to be recognized by peers for their efforts to improve the organization’s performance through their employees. Eastvantage CEO Kamal Asarpota was also one of the finalists in the Most People-Focused CEO category, as his efforts in instilling an empowered culture have earned the recognition of the HREA judges. Similarly, BPO provider SixEleven Global Services won big at the first IT-BPM Innovation Summit. The Davao-based firm received two of the seven recognitions given to the MSMEs, namely the Fastest Growing MSME award and the Barani Award for their effective COVID-19 response. Organized by industry body ICT Davao Inc and sponsored by the Davao City Investment Promotion Center (DCIPC), the summit is noted as a way to give back to the companies who have done so much for the city and encourage more locators to come to the city. Other big winners in the event include Ingenuity Software, VXI, and Sutherland.
Meanwhile, IT giant Accenture appointed Ambe Tierro as its new managing director for the Philippines. Before her appointment, Tierro led the Accenture Advanced Technology Center (ATC), led big deals in the Communications, Media & Technology industries, and was instrumental in driving Athe firm’s supply innovation and industrialization program. Tierro will replace the company’s current managing director Lito Tayag starting December 1.
Albay 2nd district Rep. Joey Salceda believes the peso’s depreciation positively impacted the Philippine economy. During a media briefing, the economist-lawmaker explained that the weakening peso boosted OFW remittances and the BPO industry, which, in turn, contributed to the economy’s acceleration these past few months. The congressman also noted that a strong dollar is good for OFW families since the remittances would translate to more pesos. Salceda’s statement follows the announcement of a 7.6% growth in the Philippine economy during the third quarter. Socioeconomic Planning Secretary Arsenio Balisacan said this high figure is surprising as the country’s consumer prices and interest rates surged in recent months. Department of Finance (DOF) Secretary Benjamin Diokno added that this “better-than-expected” Q3 economic performance “ reflects the many good economic news lately.” The Philippines’ 7.6% GDP was the second highest in Southeast Asia in the third quarter.
On the other hand, foreign direct investments (FDIs) dropped by 19.2% year-on-year to $797 million in August. According to the Bangko Sentral ng Pilipinas (BSP), this “gloomy sentiment” was primarily due to the projected global economic recession. That said, FDIs represent firmer commitments from foreign investors that generate jobs for Filipinos. The BSP projected that the Philippines would rack up $11 billion in net FDI inflows this year, higher than the actual $10.5 billion generated last year.
Several organizations are working to reach this year-end FDI target, one of which is the Philippine Economic Zone Authority (PEZA). In a statement, PEZA revealed that they secured around P3.88 billion (US$67 million) of investment pledges from seven Taiwanese firms during their official visit to the foreign country last month. PEZA OIC Tereso Panga added that they aim to attract more high-tech investments in Taiwan as its economy “is driven by a competitive manufacturing sector in the fields of electronics, machinery, petrochemicals, energy, and information and communications technology (ICT) products.” As of July 2022, there are 108 PEZA-registered Taiwanese firms with investments amounting to P32.87 billion (US$565 million). Concurrently, a 22-member India Business Trade delegation will visit Cebu next week to discuss potential investments in the province. According to the Cebu Chamber of Commerce and Industry (CCCI), the meeting aims to encourage Cebuano entrepreneurs to open themselves for linkages and market access deals with India-based firms. India is the Philippines’ 13th largest trading partner, with bilateral trade rising by over 35% between 2020 to 2021.
Philippine President Ferdinand “Bong Bong” Marcos, Jr. (PBBM) is encouraging business leaders in Cambodia to invest in the country. During a CEO roundtable meeting, Marcos told the prospective investors that the Philippines is looking to develop its manufacturing sector further. Department of Trade and Industry (DTI) Secretary Alfredo Pascual added that the CEO roundtable meeting represents leaders from various sectors such as logistics, hospitality, retail, pharmaceutical manufacturing, IT and BPO, and startup development. Pascual added that these sectors “very well match our priorities back in the Philippines too.”
Aside from Cambodia, DTI’s Pascual also met with German delegates to discuss potential investment opportunities in the Philippines. During the Asia Pacific Conference of German Businesses in Singapore last weekend, Pascual highlighted the country’s 7.6% GDP growth rate and the government’s legislative reforms that could benefit foreign investors. The DTI chief also cited the country’s large pool of young, vibrant, and trainable workforce and much-improved infrastructures. Pascual also sought the support of Germany in the Philippines’ application for the renewal of the EU GSP+.
The Senate is also making its moves to promote the country to stakeholders. Senate President Juan Miguel Zubiri recently met with some European Union (EU) leaders to invite them to invest in the Philippines. Zubiri told the stakeholders that the Philippines has “so much to offer, given its potential and recent growth.” The senator also promoted the nation’s tourism sector following the lifting of pandemic restrictions worldwide.
The employee rights group BPO Industry Employees Network (BIEN) advocates for additional compensation and benefits for Information Technology and Business Process Management (IT-BPM) workers, especially if they would be forced to return to their offices. BIEN Spokesperson Mylene Cabalona said that traveling to and from work is now expensive due to the rising cost of goods and services. Meanwhile, the Department of Labor and Employment (DOLE) calls on employers to look into the benefits of remote work and the Telecommuting Law. The labor department is also ordering its regional wage boards to see if they could impose another round of wage hikes next year. DOLE Secretary Bienvenido Laguesma said that this initiative could help Filipinos manage rising costs of commodities, especially after the country’s inflation hit 7.7% in October. The last wage adjustments were implemented just this June, raising the minimum wage for workers in the National Capital Region to P570 (US$9.81) per day while workers in the provinces get P350 to P500 (US$6 to US$8) in daily wages.
Meanwhile, tech services firm Okta is warning back-end offices in the Philippines against phishing scams. In its new report, the IT giant revealed that Philippine companies that provide services to global brands are more susceptible to cyberattacks than other countries. Okta Asia-Pacific and Japan General Manager Ben Goodman added that the Philippines has many companies that “fit that profile” and could become a big target for cybercriminals looking for an entry point. Phishing is a method used by cybercriminals to steal private data from their victims. A separate study released by independent risk advisory firm Kroll showed that 75% of enterprises in the nation have already dealt with a cyberattack, higher than the 59% average for the Asia-Pacific region.
The Philippines could be the next “blockchain capital” of the world. According to Donald Lim, lead convenor of the upcoming Philippine Blockchain Week, the country has the right tools and assets to lead in this new sphere, especially as it was hailed as the BPO, text, and social media capital of the world. nChain Country Director and Philippine ambassador for the Bitcoin Association Nicholas King added that the country has a strong potential in the blockchain industry due to its young population. Commonly used in the financial sector, blockchain is a digital database or decentralized ledger of transactions across users.
The future is looking bright for the Philippines!
Thursday, November 17, 2022
NEWS THIS WEEK
16 November 2022
- PEZA awaits approval for 13 ecozones – read article…
- PH eyed to become world’s ‘blockchain capital’ – read article…
- DTI invites German investors to PH – read article…
- Back-end offices at PH are ‘vulnerable to phishing,’ says Okta – read article…
15 November 2022
- BPO employees’ group asks for additional pay for onsite work – read article…
- Weak peso benefits PH economy, says economist-lawmaker – read article…
- PH drops ten spots in the Global Talent Competitiveness Index – read article…
- Sen. Zubiri promotes PH to EU stakeholders – read article…
14 November 2022
- PBBM urges Cambodia’s biz leaders to invest in PH – read article…
- CEZA cancels 25-year license agreement with FCDLC – read article…
- DOJ reports deportation and visa cancellation in POGO sector – read article…
- SixEleven won big at Davao’s IT-BPM Innovation Summit – read article…
11 November 2022
- PH economy up 7.6% in Q3 – read article…
- DOLE planning for another wage hike in PH – read article…
- FDIs down by 19.2% in August – read article…
10 November 2022
- PartnerHero opens first PH office – read article…
- PEZA secures P3.88Bn investment pledges from Taiwan – read article…
- Accenture appoints new PH Country Manager – read article…
- Indian delegation to hold B2B meeting in Cebu – read article…
