The Outsourcing Week in Review: Thursday, October 6, 2022

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

This week went fast and it left us with a trail mix of hot outsourcing tidbits. Spend the next 4m 52s reading this, and you’ll have all the industry’s top news inside your noggin. Let’s go.

The Philippine peso dropped to P59 against the US dollar (USD) last Monday, October 3, marking a new record low for the local currency. Economist expects further peso depreciation as the US Federal Reserve signals more rate hikes in the near term, starting with its meeting in early November. According to ING Groep NV Bank of the Philippine Islands and eMBM Services, the peso could dip to a historic low of P62 versus the USD in the following months. The Bangko Sentral ng Pilipinas (BSP) is set to hold a monetary policy meeting to discuss this issue.

However, the peso’s weak performance is favorable to the country’s Information Technology and Business Process Management (IT-BPM) sector, said IT & Business Process Association of the Philippines (IBPAP) President Jack Madrid.  According to Madrid, 70% of the sector’s clients are from North America, and he is confident that this will continue to be maintained in the future. The IBPAP stated that the IT-BPM industry has the potential to double its annual revenue, reaching $59 billion in 2028.

President Ferdinand Marcos Jr. secured US$ 3.9 billion worth of investment pledges covering the IT-BPO, data center, and manufacturing sectors during his recent official trip to New York City. According to the Office of the President, some companies expressed interest in investing in the country, while others are considering further expansion of their existing offices. The pledges are expected to generate about 112,000 jobs in the Philippines.

In line with Marcos’ reported success, the Board of Investments (BOI) is luring companies to Visayas and Mindanao by holding consecutive Strategic Investment Priority Plan (SIPP) Roadshows in both General Santos City and Iloilo City. According to the BOI, the events highlighted the cities as commerce and industry hubs for businesses looking for new opportunities. GenSan Head of City Economic Development Office Leonard Flores stated that they are confident that the SIPP will leverage business opportunities in their area so investors would consider the Soccsksargen region as their destination. Meanwhile, Iloilo City welcomed Business Process Outsourcing (BPO) firm TDCX to its locailty. In a statement, the firm said that thor expansion into the city allows it to entrench itself in the local innovation ecosystem and work with other stakeholders to enhance the outsourced customer experience industry’s competitiveness on the global stage. TDCX VP for Business Strategy Eliza Acuña is also optimistic that the city has matured and thrived in the BPO space. This is the company’s 12th office in the country.

Outsource Accelerator’s (OA) September performance report showed a record traffic for the month, with 189,152 unique visitors (up 8.18%) and 577,637 page views (up 25.29%). The looming holiday season failed to slow the volume of inquiries on the platform — hitting a total of 1,315 inbound inquiries, worth $83 million, from 69 countries, representing 28 sectors. For the last 12 months, outsourcing quotation inquiries came to a total value of US$768 million, requesting a total of 25,603 full-time roles in the industry.

Bring on Q4!

Go Negosyo Founder and Private Sector Advisory Council lead Joey Concepcion is urging the Philippine government to postpone the implementation of Work From Home (WFH) setup as the nation recuperates from economic losses. Concepcion emphasized that mobility is needed — especially by Micro, Small, and Medium Enterprises (MSMEs) — in Q4 to bounce back from the pandemic. He added that actions should be taken to mitigate the effects of rising prices and maintain robust economic activity throughout the holiday season.

Tech conglomerate Google Philippines, in partnership with the Department of Information and Communications Technology (DICT) and the Department of Trade and Industry (DTI), will offer online scholarships to 39,000 Filipino tech enthusiasts. Google PH Marketing Chief Gabby Roxas said that this program ensures the competitiveness of the country’s IT workforce. Filipinos 18 years old and above are encouraged to apply for online courses, which may run from six months to a year.

KodeGo, the web development educational boot camp of Globe’s 917Ventures, is now backed up by renowned Philippine tech leaders as board members. This includes former DICT Undersecretary Monchito “Mon” Ibrahim, Amazon Web Services (AWS) Head of Enterprise Jerry Bongco, Philippine Software Industry Association (PSIA) President Jonathan de Luzuriaga, Yondu Inc.’s Joan Penaflorida, and IBPAP’s Jack Madrid. The five new board members provide a wide range of talent and experience to help KodeGo shape the future of “edutech” in the country and uplift the lives of millions of Filipinos.

Speaking of tech, the Department of Budget and Management (DBM) is setting aside P12.47 billion (US$211 million) for digitization. Budget Secretary Amenah Pangandaman said their proposed budget emphasizes the importance of ICT in the government. The DICT will receive P4.24 billion (US$72 million), and the Department of Finance (DOF) will get P3.56 billion (US$60 million) out of the total budget. Pangandaman added that the BOI and Bureau of Customs (BOC) would get P3.56 billion (US$60 million), which is 28.6% of the proposed amount for digitalizing government processes and transactions. The DICT, meanwhile, is going full steam ahead towards accelerating free connectivity in remote areas across the country. DICT Secretary Ivan John Uy said their project would be geared at tourist stops and destinations for further growth in the sector. Additionally, they aim to procure a single and extensive e-commerce portal for MSMEs to allow them to participate in digital payments and the digital economy.

More on digitalization! BanKo, the microfinance arm of the Bank of Philippine Islands, is boosting its efforts to widen its coverage and reach more Filipinos. Designed as a convenient mobile app, BanKo will allow clients to fulfill their banking needs anytime and anywhere. Senior VP Rod Mabiasen said the necessity of digital banking, especially during the pandemic, led them to innovate how they deliver products and services to their clients.

There’s a new kid on the block for the Philippine telco industry. NOW Telecom recently acquired a license to provide broadband services. In a report from Manila Standard, the Anti-Read Tape Authority (ARTA) asked the National Telecommunications Commission (NTC) to expand the operator’s license, permitting it to provide mobile, fixed line, and fixed wireless services. Now Telecom’s new provisional license includes the use of 220MHz spectrum in the 1,970MHz-1,980MHz; the 2160Mhz to 2170Mhz; 3.6Ghz to 3.8Ghz; and 5G frequencies. Cheaper internet is also underway as Northern Samar Representative Paul Daza urges the NTC to waive customers’ Spectrum User Fee (SUF). During a budget deliberation, Daza explained that the SUF hinders small and independent telecommunication companies from delivering adequately due to the extra cost they have to spend on WiFi frequencies that are supposedly “open to public use.” Waiving the spectrum fee, the representative added, will also substantially cut the cost of internet services in the country. Daza is optimistic that he will secure the NTC and DICT’s commitment to his proposal.

Philippine telco giant PLDT Inc. announced the sale of 75% of its towers to transmission site companies. According to the company, proceeds from the deal would be used to pay down debt and support operating and capital expenditures. Additionally, a portion of the towers’ was paid out to shareholders last month. The company expects additional closings before the end of the year, with the final closing anticipated to be completed by Q1 2023. PLDT’s industry rival Globe also sealed a deal to sell 1,000 of their telecom towers to Phil-Tower Consortium.  According to Reuters’ report, Globe will sell over 1,350 central and southern Philippines towers, with earnings to cover maturing debts. Globe president and CEO Ernest Cu said that their efforts will provide an “uplift to Globe’s overall value” and support their goal of enabling the digital lives of Filipinos.”

On the other hand, the City Government of Baguio is probing the alleged unauthorized construction of cellular towers in privately owned structures within residential areas. According to City Council Information Officer Jordan Habbiling, the unlicensed tower is for the use of the DITO Telecommunity Corp. (DITO), which has not obtained a location clearance before constructing the cellular tower. A request was released to investigate whether DITO secured the necessary clearance and permission from the concerned offices.

The Philippines landed 56th in the 2022 International Institute for Management Development (MD) World Digital Competitiveness Ranking, two notches up from last year. According to IMD, three factors are used to determine an economy’s overall ranking: knowledge, technology, and future readiness. IMD added that the nation’s top technological strengths are its investment in telecommunications, capital sub-factor, and the percentage of high-tech exports.

Taking things one small step at a time!

Thursday, October 6, 2022

NEWS THIS WEEK

5 October 2022

• BPI’s microfinance arm boosts digitalization efforts- read article…
• PH welcomes NOW telecom – read article…
• PH tech-voc participates in Worldskills Competition 2022 – read article…
• PLDT sells 75% of its towers – read article…

4 October 2022

• BOI encourages business community to invest in Visayas, Mindanao  – read article…
• DBM to allocate P12.47Bn next year for digitalization – read article…
• DICT pushes for fully digitalized e-governance – read article…
• Peso continues to weaken, records new all-time low at P59 against USD – read article…

3 October 2022

• Baguio local government probes illegal telco towers construction – read article…
• PEZA confirms 4,485 mass lay-offs following companies’ financial losses – read article…
• PH WebDev education boot camp, KodeGo, backed by tech leaders – read article…
• Business sector suggests postponed WFH setup may bring economic rebound – read article… 

30 September 2022

• DICT anti-cybercrime agency flunks monitoring 2021 budget allocation  – read article…
• Globe generates US$340M in tower sales – read article…
• PH president secures US$4Bn worth of US investment pledges – read article…
• PH 2 notches up in global digital competitiveness – read article… 

 29 September 2022

• PH BPO industry to benefit from surging USD – read article…
• Singapore-based BPO TDCX enters Iloilo – read article…
• Google PH partners with DICT, improves ICT industry sectors through scholarships – read article…
• Cheaper internet underway as NTC waives user fees – read article…

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: October 4, 2022
2. The Outsourcing Week in Review: October 11, 2022