The Outsourcing Week in Review: Wednesday, July 18, 2018

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Welcome to Inside Outsourcing: The Outsourcing Week in Review

There has been strong industry support for the draft terms of selection for the proposed third telecoms company, according to DICT acting secretary Eliseo Rio Jr. However, he has threatened to resign if the oversight committee meeting this week does not pass off on the terms to allow the selection of bidders to finally proceed. DICT has been picking up in momentum in its efforts for the industry, and earlier this week solicited input from stakeholders to incorporate their interests into its National ICT Ecosystem Framework (NIEF) 2022 plan.

The desire for faster internet speed, however, does not appear to be holding the outsourcing industry back. Leading RPO firm, Robert Walters announced bumper revenue growth for the year, driven by its Asian fees. Market leader, Accenture picked up another award for its life sciences outsourced services, and forecast a record US$4.37 billion uplift to its annual revenues for its year end in August 2018. The macro picture also looks strong. ANZ expects the Philippines to maintain a robust rate of 6.8% growth for the year. ISG Index recorded a healthy 31% growth on year for global outsourcing contracts, and BPO industry association IBPAP announced its confidence that the Philippines can boost its global market share in IT-BPM to 14% by 2022 from the current 11%. Global giant Infosys also reaffirmed its forecast that the demand for outsourcing remains stable.

There was also positive activity in the emerging KPO sector. Canadian fintech firm MOBI724 Global Solutions made public that it was teaming up with the Philippines branch of Fexco to develop its services in the region. The successful Dubai-based KPO firm Cresco opened its Cebu office to act as a springboard for its Asian expansion.  The government will also breathe a sigh of relief that its restructuring of the education system has paid off – so far. According to top online jobs portal Jobstreet, Philippine industries are employing the new K-12 graduates, with the BPO sector leading the charge. The Cebu IT-BPM Organization agreed, saying it anticipated that the large outsourcing firms in the province are hiring the new graduates, with an anticipated take up of 10,000 fresh graduates expected this year.

However, underlying the upbeat swing there are two causes for concern. The first is that inflation is still not under control, and although the Mandaue Chamber of Commerce believes strong revenues should cushion the economy in the near term, inflation tends to drives up wages which is a cost to which outsourcing is particularly exposed. Furthermore, the Philippines has been ranked below average in a major global innovation ranking. If the country wishes to remain at the forefront of the new emerging, technology-driven outsourcing sector, the ability to innovate will be key.

 

News Roundup

16 July 2018

Infosys forecasts stable demand for outsourcing  – read more…

DICT head threatens to resign if 3rd telco selection delayed anew – read more…

Dubai-based outsourcing firm Cresco opens Cebu office – read more… 

13 July 2018

Canadian fintech firm teams up with Philippines branch of Fexco – read more…

Accenture positioned as leader in BPO life sciences R&D – IDC – read more… 

Philippines IT-BPM sector targets 14% global market share by 2022 – read more… 

12 July  2018

Global outsourcing contracts value up 31% in Q2 – ISG – read more… 

Employers hiring new graduates without experience – Jobstreet – read more… 

Despite vibrant ICT, Philippines ranks below average in innovation – read more…

11 July 2018

RPO firm Robert Walters posts 18% growth on back of Asia Pacific sales – read more…

Accenture forecast to gain record USD4.37bn in year to August 2018 – read more…

BPO revenues will help counter inflation – Mandaue Chamber – read more…

10 July 2018

Philippines forecast to sustain GDP growth at 6.8% – ANZ – read more…

Cebu call centers now employing senior high grads – read more…

DICT seeks industry advice for ICT sector development – read more…


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