The Outsourcing Week in Review: Thursday, October 27, 2022

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

We’re working hard to get you the Philippines outsourcing news that counts.  Read on for the latest happenings from the Philippine’s golden boy industry.

Monetary inflows BPO industry and Overseas Filipino Workers (OFWs) could help revive the tumbling Philippine peso against the dollar in the last quarter of 2022. According to Department of Finance (DOF) Secretary Benjamin Diokno, the two sources could come up with an additional income of $16 billion in Q4. The DOF chief also highlighted that the peso could return to the P55 level due to the expected influx of OFW remittances for the holiday season. The peso was just short of reaching the dreaded $1 to PHP60 in recent weeks.

We’re thinking that Diokno may be right about the BPO industry as we see more companies expand across the country.

Last week, Victorias City in Negros Occidental welcomed its first BPO firm, Global Strategic Business Process Solutions. In a statement, the homegrown outsourcing firm said they chose to locate in the province as it is a promising location for the sector. Mayor Javier Miguel Benitez said that the new company is a great opportunity to open more jobs for the locals and help the city’s economy recover. At the same time, Germany-based BPO provider HelloConnect launched a new office in Puerto Princesa, Palawan. In a statement, the city’s Local Economic Development and Investments Promotions Office (LEDIPO) Chief Lorraine Banzuelo said that the BPO showed interest in the area after discovering that obtaining business permits is a quick and straightforward process. Banzuelo added that the firm is an excellent economic partner as it does not complain and diligently follows the city’s protocols and instructions. HelloConnect is an in-house BPO and IT company established in 2019 to “address the scalability, cost, and quality issues that arise as companies expand.”

Meanwhile, call center agents are still the most in-demand workers in the Philippines. According to data from the Department of Labor and Employment – Bureau of Local Employment (DOLE-BLE), a total of 3,672 positions are currently open in the industry. The labor department also expressed their confidence in the improvement of the country’s employment situation due to the upcoming holiday season and local elections. Aside from call center workers, there is also a high demand for street sweepers, production workers, customer service assistants, staff nurses, and technical support staff in the Philippines.

Fortunately, Alorica is helping relieve the country’s soaring unemployment rate. According to the BPO giant, they achieved their 7,000 monthly recruitment target in September 2022 on the back of new global clients from various industries. According to Alorica Divisional VP for Customer Experience Sara Machan-De Silva, the firm performed “extremely well” thanks to its ability to quickly scale and effectively perform. The firm will soon open more employment opportunities as they are preparing to launch two new sites by year-end: one in Davao City and one in Makati, Metro Manila. Similarly, Megaworld Chief Strategy Officer Kevin Andrew Tan promised to add about 100,000 BPO employees in Bacolod City over the next five to 10 years. During the inauguration of a new Megaworld Township called The Upper East, Tan said that they aim to open job opportunities for more Bacoleños as more BPO companies expand in the city. The businessman added that they are committed “more than ever” to pouring in investments across the country following President Ferdinand Marcos, Jr.’s mandate to create more jobs.

In other news, global outsourcing solutions provider ibex was named as one of the Philippines’ Best Employers 2023 by local newspaper Philippine Daily Inquirer and statistics portal Statista. ibex Philippines Potski Alvarez said they are proud of the recognition as it validates the “amazing team and culture” they have within the firm. The winners were chosen from 2,000 eligible employers with at least 250 employees in the country.

Contact Islands is back on-site after two years of virtual celebrations. Spearheaded by the Contact Center Association of the Philippines’ (CCAP), the event serves as a gathering of IT-BPM players to discuss the most crucial issues in the sector. For this year, the conference’s main focus revolved around the new administration and the launch of a six-year industry roadmap. The association also reiterated the sector’s confidence in doubling its export revenue contribution to $57 billion and its total workforce by the end of 2028.

Congratulations!

The Philippine government is ready to support new workforce models for the BPO industry, said finance chief Diokno. In a statement, the secretary said that the DOF strongly recognizes the need to integrate new, adaptive, and sustainable workforce models to boost the Philippines’ competitiveness in the global outsourcing field. This statement comes as more BPO firms who want to extend their remote working arrangements are being urged to transfer their membership from the Philippine Economic Zone Authority (PEZA) to the Board of Investments (BOI). According to the Fiscal Incentives Review Board (FIRB), the transfer of registration will resolve the sector’s long-standing issue on tax incentive claims while performing business activities beyond their zone limits. However, PEZA is worried that the transfer of membership may result in BPOs “double-dipping” on multiple tax incentives. PEZA OIC Tereso Panga said they do not see any value in this transfer. He also insisted they will continue to present the WFH 30% limit to IT locators who want to keep their PEZA status.

Since we are already on the topic of transferring, Senate Labor and Employment Committee Member Senator Sherwin Gatchalian is asking the labor department to assist displaced Philippine Offshore Gaming Operators (POGO) employees in shifting to a BPO employment.  BPO firms. The senator said that the DOLE should draft a comprehensive plan to help POGO employees transfer, transition well, and thrive in the outsourcing sector. He also noted that as “the most resilient and fastest growing” sector in the country, BPOs could attract more people into working in their firms instead of the offshore gaming sector.

Internet connectivity is about to get better in the countryside as the Philippine Domestic Submarine Cable Network (PDSCN) has officially landed in Mactan, Cebu. The $150-million joint project of telecom giants Globe, Eastern Communications, and InfiniVAN is set to improve the country’s mobile and broadband connectivity. Globe Business, Enterprise Group VP for Strategic Infrastructure Investments Arlene Jallorina said that they are hoping that this initiative would boost the country as “Asia’s next internet hub.” Additionally, three far-flung islands in Zamboanga City will gain internet access as the Department of Information and Communications Technology (DICT) launched free Wi-Fi sites in the area. DICT Secretary Uy Ivan John Uy shared the joy and excitement of the people finally getting a free internet connection in Zamboanga. He also stressed that it is a Filipino right to access the internet as this will provide them with many opportunities — including online learning, telemedicine, and online banking.

With all this development in the local tech industry, PLDT Chairman Manny Pangilinan said that the Philippines should consider hiring IT professors from other countries to expand the country’s tech workforce. During the PLDT Digicon 2022, Pangilinan noted that the country faces the challenge of teaching “proper” IT courses and finding qualified experts to teach in this field. He added that foreign IT professors would help produce the kind of IT engineers that the Philippines would need in the future.

More investments are coming! PEZA OIC-Deputy Director General for Finance and Administration Aleem Guiapal said that the Philippines is keen on attracting South Korean investors to the country. Guiapal stated that PEZA, itself, met several Korean businessmen at the Philippine-Korea Investment Forum in Seoul. Meanwhile, Aboitiz Infracapital Head of Economic Estates Rafael Fernandez de Mesa, who is part of the Philippine delegation in South Korea, shared that they are hoping to make more investors aware of the economic opportunities the Philippines has to offer. Concurrently, several French firms are looking for investment opportunities in the Philippines as the latter reopens its economy. According to French Ambassador to the Philippines Michèle Boccoz, French companies are observing various sectors that can be improved in the Philippines. A business delegation led by French consortium MEDEF International is set to visit the Philippines over the next months to promote economic and trade relations between the two countries.

As both tourists and business leaders venture into the country, the Department of Health (DOH) said that they are working on an eArrival Card to simplify and streamline arrival requirements for travelers. Called One Health Pass, the eArrival Card will generate a “scan and go” mechanism to reduce processing time at points of entry in the Philippines. The One Health Pass will be mandatory starting November 1, 2022.

Hooray for faster arrival process!

Thursday, October 27, 2022

NEWS THIS WEEK

26 October 2022

• PH domestic submarine cable network lands in Cebu – read article…
• ibex named among best employers in PH – read article…
• Hiring foreign IT educators could expand PH’s tech workforce – read article…
• BPO inflows, OFW remittances to prop up peso in Q4 – read article…

25 October 2022

• Alorica hits 7K recruitment target in September – read article…
• Gov’t to support new workforce models for BPOs – read article…
• 3.6K call center agents needed in PH – read article…
• France eyeing investments in PH – read article…

24 October 2022

• BOI transfer could result in ‘double dipping’ on tax perks, says PEZA – read article…
• German BPO expands to Puerto Princesa – read article…
• Megaworld official vows to add 100K BPO employees in Bacolod – read article…
• PH economy could miss growth goals in 2023, 2024 – read article…

21 October 2022

• Philippines lags behind Asean neighbors in mobile experience ranking  – read article…
• PH health department develops easier arrival process – read article…
• Alibaba Cloud launches support program for PH businesses, inks deal with ABS-CBN – read article… 
• Remote islands off Zamboanga gain internet access – read article… 

 20 October 2022

• Gatchalian asks DOLE to transfer displaced POGO employees to BPOs – read article…
• Negros’ Victorias City welcomes first BPO – read article…
• Web3 adoption to boost jobs, investments in PH – read article…
• PH looks to attract South Korean investors – read article…

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: October 25, 2022
2. The Outsourcing Week in Review: November 3, 2022