The Outsourcing Week in Review: Wednesday, May 29, 2019

Outsourcing week in review

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

Employment issues featured significantly in the news last week. In Cebu, BPO employment soared in the first five months by 19% according to local job website Mynimo.com. Manila is now within the top ten most friendly cities for fintech start-ups in Startup Genome’s yearly Global Startup Ecosystem Report. The country can also be proud that it stands out when compared to other countries in the number of women holding tech management positions, says country head of IBM, Aileen Judan-Jiao, who is the firm’s first local female president and country general manager.

With the economy turning in a strong performance, and a balance of payments surplus of US$4.7bn in the January to April 2019 period, strong demand for skilled labor is unlikely to abate any day soon. Keeping the IT industry’s underlying infrastructure world class is consequently vital. The Philippine Institute for Development Studies has urged lawmakers to review the scope of the Department of Information and Communications Technology’s authority, and remove overlapping roles and define its functions in the regulation of e-commerce and ICT services, to help achieve this.

Finding skilled employees, particularly for the new transformational technology being adopted by much of the industry is now a growing challenge. Employers are facing skills mismatches, gaps in education and training, and a diminishing pool of skilled IT professionals, according to LinkedIn’s 2019 Emerging Jobs in the Philippines Report. The news from the finance secretary, Carlos Dominguez, that the Philippines intends to increase its level of cooperation with South Korea is welcome. The country is a powerhouse of IT innovation, and a long-time friend of the Philippines.

Measures such as The Alternative Working Arrangement bill which recently passed its third reading in the Senate may also help free up more potential employees. 92% of Filipino freelancers worry about job stability, according to a survey done by digital payment company PayPal. Although the recently passed Security of Tenure law that aims to end contractualization will help address some short term employment abuses, there may be a price to pay says Sergio Ortiz-Luis, president of the Employers Confederation of the Philippines.  Some provisions in the new law could discourage investors.

What is essential is that the skills of would-be employees must be upgraded because BPO companies are now inexorably set on digital transformation, and transformation is now crucial for BPO firms to become industry leaders, says Mark Lyndsell, CEO (Global English Region) for Transcom Worldwide. An example of this new thrust in the industry is vCom Solutions, a software and managed-services firm that has announced the appointment Srihari Hosahalli as its new CIO. Previously with Accenture, he is tasked with helping vCom develop its AI-based analytics engine.

Colegio San Agustin-Bacolod and the NGO Lifebank Foundation have stated that there is a pressing need to create awareness of the impact of artificial intelligence on different industries and society. Their researchers have advised the academic world to develop academic programs that will equip graduates with skills to keep pace with the AI era.

Meanwhile the industry continues to prosper at home and abroad. Indian powerhouse TCS is on track for double-digit growth in current fiscal year; Teleperformance has received the highest credit rating in the industry with a Standard & Poor’s BBB long-term investment grade rating.

Wednesday, May 29, 2019

NEWS THIS WEEK

27 May 2019

Teleperformance has highest credit rating in industry – read article…

IT sector faces growing skills mismatch, talent shortage – read article…

Academic institution and NGO urge action to create AI awareness – read article…

24 May 2019

Employers’ group wants limited ban on contractualization – read article…

Philippines keen on deepening ties with South Korea – read article…

Transformation is key to being industry leader, says BPO firm’s CEO – read article…

23 May 2019

vCom hires former Accenture executive as CIO – read article…

Flexible work arrangement bill passes final reading – read article…

Manila one of the top cities for fintech startups – read article…

22 May 2019

Cebu BPO industry records 19% employment growth in first 5 months – read article…

PIDS urges policymakers to review scope of DICT authority – read article…

Philippines posts USD4.7bn BOP surplus in first 4 months – read article…

21 May 2019

Philippines has more women in tech industry, says IBM – read article…

TCS on track for double-digit growth in current fiscal year – read article…

Job stability a major concern for 92% of Filipino freelancers – read article…


Suggested articles from OA

November 9, 2018

Here at Outsource Accelerator, we strongly believe that outsourcing is one of the best strategies a company can use when…

May 22, 2019

Welcome to Inside Outsourcing: The Outsourcing Week in Review THE WEEK IN REVIEW Whereas the world’s large multinationals have long…

February 27, 2019

So you have decided to use supply chain outsourcing in your company’s daily operations. What’s the next step? Hiring a…

March 23, 2018

Recently, more and more companies have been choosing to outsource from the Philippines. Outsourcing is the act of getting services…

Shares

James D. has submitted "3 free quotes"

Start Now

days ago.