The Outsourcing Week in Review: Wednesday, February 10, 2021

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

Last week, prominent Philippine economist and columnist for PhilStar Andrew Masigan asked if the Philippine outsourcing sector is bound for a boom, or an eventual doom.

In part 1 of a two-part opinion piece regarding the future of the Philippine outsourcing (IT-BPM) sector, Masigan commended the Philippines’ supremacy in voice-based business processes and more sophisticated IT-BPO methods. However, he noted that due to the advancement in technology, the Philippines “stands to lose hundreds of thousands of jobs and billions of dollars in revenues in the voice-based segment.” He suggested that the current efforts to upskill and keep up with the industry’s demands are not enough, adding that “we need to do more.”

The second part of the opinion piece was more upbeat, highlighting of all things – the efforts and impact of the Outsource Accelerator (OA) platform in the promotion of the country’s IT-BPO industry to the world. Masigan was highly supportive of the OA mission and said that the platform “provides a convenient funnel for interested business owners to explore outsourcing suppliers in our shores.”

Quarantine restrictions are gradually easing. The National Economic and Development Authority (Neda) strongly believes that the government will ease mobility restrictions by March. In addition, foreign nationals with valid visas – issued prior to March 2020 – will be allowed to enter the country starting February 16. However, they must have pre-booked accommodation for at least six nights in an accredited quarantine hotel or facility.

The country’s first-ever pharmaceutical economic zone is set to rise in Malolos, Bulacan. The Philippine Economic Zone Authority (PEZA) this week approved the Bulacan ecozone, which will host pharmaceutical companies and support information-technology firms and export-oriented industries.

The Organization for Economic Cooperation and Development (OECD) expects a slower-than-expected 5.9% growth for the Philippines this year. OECD noted that despite imposing the strictest lockdown in the ASEAN region, the coronavirus continues to spread across the country. Despite this, some institutions still believe in the Philippines as a strong resilient investment destination. The Associazione Italia-Association of Southeast Asian Nations (ASEAN) stated that Italian businesses seeking to expand in the ASEAN region look at the Philippines as their top priority location.

The sustained expansion of the BPO industry in the country is one of the keys for the real estate sector to “recover faster than expected,” according to Leechiu Property Consultants, Inc. (LPC) CEO David Leechiu. Leechiu also noted that “the worst is over” for the pandemic-stricken sector, as it is now showing early signs of recovery.

More businesses are seeing the value of the Philippine labor force and BPO model. Tobacco firm PMFTC Inc., which is the Philippine affiliate of Philip Morris International, is shifting their investments to BPO. In a statement, PMFTC said that they will streamline their Marikina plant “with the opening of new job opportunities in the planned shared services and call centers within the next two years.” In addition, internationally renowned Sri Lankan tea export conglomerate Ranfer has just launched a shared services and outsourcing firm, LionPride. LionPride will provide back-office support services for all of its 14 companies, as well as local and overseas enterprises.

Two major corporations have made their public trading debuts. Canadian telecommunications company Telus International (Cda) Inc. officially made its public trading debut on the New York Stock Exchange and the Toronto Stock Exchange. Its shares surged over 30 per cent on its first morning of trading. Payoneer, the global payment platform is also set to become a publicly-traded company as it announced its intention to merge with FTAC Olympus Acquisition Corp’s Special Purpose Acquisition Company (SPAC). Payoneer is well known to the Philippines and is a strong supporter and proponent of the burgeoning freelancer, e-commerce and outsourcing sectors.

In other BPO news, multinational conglomerate company GE is set to exit its Riyadh-based all-women Business Process Outsourcing (BPO) firm that was held in partnership with IT consulting company TCS. TCS will now take full ownership of the BPO provider. Further, global BPO firm Alorica got recognized as a Leader in NelsonHall’s 2021 NEAT vendor evaluation for Social Media CX Services for Content Moderation, Trust and Safety. The award commended Alorica’s expertise in delivering social media customer experiences.

Wednesday, February 10, 2021

NEWS THIS WEEK

9 February 2021

• Tea conglomerate Ranfer launches its BPO firm, LionPride – read article…
• Fusion reveals new brand identity and logo redesign – read article…
• PH healthcare workers’ COVID-19 vaccination starts Monday – read article…

8 February 2021

• More foreign nationals with valid visas allowed PH entry – read article…
• GE exits Riyadh all-women BPO; TCS takes full control – read article…
• Italian businesses eye PH as priority as it plans Asean expansion – read article…

5 February 2021

• Telus International debuts largest IPO in TSX history – read article…
• Payoneer to go public through acquisition deal – read article…
• Cognizant’s net drops for the first time – read article…
• PH economy to post slower-than-targeted economic growth – OECD – read article…

4 February 2021

• PH drops one spot in global democracy index – read article…
• Alorica named Social Media CX Services winner – read article…
• Tobacco firm shifts resources to invest in BPO – read article…
• The future of IT-BPO: Boom or doom? – read article…

3 February 2021

• NEDA ‘strongly believes’ further easing of quarantine rules by March – read article…
• Six Bacolod BPOs issued COVID-19 tracking violation notices – read article…
• PH’s first pharma ecozone to rise in Bulacan – read article…
• ‘Worst is over’ for real estate sector – Leechiu – read article…

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: February 3, 2021
2. The Outsourcing Week in Review: February 17, 2021