The Outsourcing Week in Review: Wednesday, April 17, 2019

Outsourcing week in review

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

Expansion was a major theme in the news last week. Top Philippines co-working space provider KMC Solutions announced it has received new funding from the ASEAN Industrial Growth Fund to expand its business in the country. The timing looks good. According to real estate consultancy JLL, demand for office space should remain strong with vacancy levels in Metro Manila continuing at 6%, driven in large part by demand for flexible workspace, BPOs and an increasing number of Chinese firms setting up in the country.

Consumer and industrial goods giant 3M said it will further expand its Philippine business, having recently set up a BPO unit. Oracle NetSuite, which already employs approximately 1,300 people in the country, also said it is planning to expand its Philippines operations. Uber’s local outfit, now owned by Grab, has opened its second global hub in the Philippines in Bonifacio Global City. Outside of the capital, Mindanao Development Authority deputy executive director Romeo Montenegro said the property development and BPO sectors continue to see inflows of investment into Mindanao. Ulf Wennblom, country manager of Business Sweden in the Philippines, said two to three Swedish companies are entering the Philippine market every year, with the country’s IT-BPM as one of the three most attractive sectors.

Such expansion is underpinned by the availability of well-skilled labor. Trade Secretary Ramon Lopez believes that the government can upgrade the country’s IT, science, and engineering graduates to equip them with the needed AI knowledge, and is launching an initiative to train graduates to make them globally competitive. An example of local IT excellence is Ronel Boholano, in charge of the Information and Communication (ICT) unit of the Department of Education-Leyte Division, who was one of the winners in the “Creativity Challenge” during Microsoft‘s E2-Education Exchange held recently in Paris.

The impact of the pending new tax law, however, continues to throw a long shadow. With falling investment in economic zones, PEZA director, Charito Plaza, is overseeing a rebranding and a new focus of PEZA, away from its heavy reliance on the outsourcing sector. The “new PEZA” will help set up economic zones for food production, mineral processing, entertainment and tourism, according to Plaza, with new economic zones designed as townships or smart cities, with housing facilities, banks, and commercial establishments.

Overseas, the news from the big players was also healthy, despite global economic uncertainties. Outsourcing giants TCS, Infosys, and HCL are expected to post strong quarterly numbers.  Infosys is opening a new Swiss office; Accenture is to acquire France’s Cirruseo, a Google Cloud services provider; Brazil’s Stefanini has partnered with SaaS service management solutions provider 4me to enhance its customer service offerings. Teleperformance has announced the appointment of Gary Slade as the new chief executive officer of the company’s businesses in the UK and South Africa.

Wednesday, April 17, 2019

NEWS THIS WEEK

15 April 2019

3M aims to further expand in the Philippines – read article…

Metro Manila real estate vacancy levels to stay at 6% – read article…

Stefanini partners with 4me to help clients outsource successfully – read article…

12 April 2019

Co-working space provider KMC Solutions receives new funding – read article…

Outsourcing firms TCS, Infosys, HCL likely to post strong quarterly revenue – read article…

BPO investments continue in Mindanao – read article…

11 April 2019

Oracle NetSuite to continue expanding in PH – read article…

Philippines can excel in AI, says DTI head – read article…

Swedish investors keen on Philippines’ IT-BPM sector – read article…

10 April 2019

Teleperformance names Gary Slade CEO for UK unit – read article…

Accenture to acquire France’s Cirruseo – read article…

DepEd ICT head wins Microsoft challenge in Paris – read article…

9 April 2019

Uber opens 2nd hub in PH to support global customers – read article…

PEZA rebranding to push through despite tax reform concerns – read article…

Infosys opens new Swiss office – read article…


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