The Outsourcing Week in Review: Wednesday, July 31, 2019

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THE WEEK IN REVIEW

The Philippines enjoyed 5.1% growth in its IT-BPO sector last year, bucking the global trend that saw the industry contract between 3% and 4% for the same period, according to a report by consulting company Everest Group. Furthermore, the Philippine contact center industry should grow by 7% to 8% this year based on new office take-up figures, says Benedict Hernandez, chairman of the Contact Center Association of the Philippines. The strong performance should provide a positive backdrop to the upcoming industry gathering in Manila for the Philippines Shared Services and BPO Week commencing on 13 August.

Driving this growth in part is the successful adaptation of the industry to rapid changes in technology, so it was also good to read that the country has risen to the 54th spot in the latest Global Innovation Index, up 19 places from its previous ranking in 2017. Its 2018 position also marks the first time the country has been categorized as an “innovation achiever” and it was also listed as the top producer of “high-tech net exports” among 15 economies in Southeast Asia, East Asia and Oceania. 

Hopefully, its success is also because Philippine customer services operatives are in tune with their clients’ needs. According to a hard-hitting report, many firms are getting their customer service badly wrong. Two in three Australians would prefer to clean the toilet – and one in five would rather have root canal work – than interact with customer service teams, a report from Pegasystems said. 

Still, BPO firms are doing well and are continuing to expand, and not just in the capital. Qualfon was named a CCW BPO-of-the-Year-Award Finalist; Accenture Philippines opened a new office in Alabang; and Open Access BPO announced plans to expand in Davao and Iloilo. The Central Visayas region hit 7.6% GDP growth last year, said Kenneth Cobonpue, chairman of the Regional Development Council. The key drivers were tourism, construction and the BPM industry.  

The BPM industry is, by its nature, one that employs a lot of people, and consequently needs a lot of space to accommodate them. As a result outsourcing companies, along with English-as-a-Second-Language centers are driving office demand in Cebu, according to real estate consultancy Colliers International.  Moreover, the money they put into employees’ pockets is propelling the expansion of many other consumer sectors. According to the Philippine Retailers Association – Cebu’s former president, Robert Go, the city’s strong retail growth is mainly fueled by sustained remittance growth and the high-earning outsourcing workforce. 

Labour issues also dominated news laws week. BPO employees joined this year’s State-of-the-Nation-Address protests against contractualization and low wages in the regions. Allegations have also been made by some local Concentrix workers that they were being tasked with working 24-hour shifts when on the Amazon account:  a charge that is vigorously denied by Concentrix. Quezon City councilor Winston Castelo joined the growing chorus of concern that Chinese POGO workers, especially in Metro Manila, do not have the necessary permits to work in the country legally. At the other end of the scale, Accenture will implement its commendable ‘Suite of Accessibility Solutions’ at one of its Philippine centers. This provides their PWD (person with disabilities) employees with appropriate technology and equipment to help them be more productive at work. 

Wednesday, July 31, 2019

NEWS THIS WEEK

29 July 2019

• Philippines Shared Services And BPO Event Returns In August – read article…
• Philippines Rises To 54th Spot In World Innovation Ranking – read article…
• Cebu’s Outsourcing Workforce Drives Retail Demand – read article…

26 July 2019

• Philippines Continues To Lead In Global Contact Center Industry –read article…
• Philippine Contact Center Industry Expects 7-8% Growth This Year – read article…
• Qualfon Named CCW BPO of the Year Award Finalist – read article…

25 July 2019

• Outsourcing, ESL Firms Drive Office Demand in Cebu, Says Colliers – read article…
• Accenture Launches Inclusive Initiative For PWD Workers – read article…
• QC Councilor Castelo Urges BIR, BI To Investigate POGO Workers – read article…

24 July 2019

• Accenture Philippines Opens New Office – read article…
• BPO Workers Join SONA Protests Against Contractualization – read article…
• Amazon Subcontractor Workers Expected To Work 24-Hour Shifts – read article..

23 July 2019

• Open Access BPO To Expand In Davao, Iloilo – read article…
• Tourism, Construction, BPM Sectors To Sustain Region 7 Growth – read article…
• Aussies Prefer Cleaning Toilets To Dealing With Customer Service – read article…
  

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: July 24, 2019
2. The Outsourcing Week in Review: August 7, 2019