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Outsourcing News Roundup (Sept. 7, 2017)

September 7, 2017 Claire Ponsaran No comments exist
Outsourcing News Roundup

Growth in BPO jobs ‘shows no sign of slowing down’ (Aug. 14, 2017)

BUSINESS process outsourcing (BPO) continued to generate the most number of new jobs in Cebu and the sector shows no sign of slowing down in the next quarters, according to online jobs board JobStreet Philippines.

Of the 3,000 Cebu-based jobs listed in JobStreet from January to March this year, BPO-related jobs accounted for 35 percent, equivalent to at least 1,000 jobs.

“The outlook is very positive. We expect this to continue in the next quarters,” said JobStreet Philippines marketing manager Eileen Camarillo-Go, amid speculations the BPO industry would slow down while US-based investors await details on the outsourcing policies of the Trump administration.

In terms of job listings in JobStreet for the entire country, BPO jobs also continued to dominate.



The total outsourcing services spending in the Philippines is expected to exceed US$500 million by 2021, according to the latest forecast from the IDC APeJ Semiannual Services Tracker.

Enterprises’ Digital Transformation (DX) initiatives, as well as changing patterns of IT procurement and rapidly evolving service delivery models, will drive the Philippines outsourcing market to continue growing.

Digitalization has created opportunities for new areas of business and organizational structures. However, as companies increasingly embark on a DX journey, outsourcing has been a way for them to address business challenges, such as growing complexity of ICT, lack of ICT budget, and the need for proper governance.

“The Philippines outsourcing market is undergoing a dramatic transformation propelled by the increasing adoption of disruptive technologies,” says Alon Anthony Rejano, Market Analyst for Services, IDC Philippines.

“CIOs and technology leaders tap external capabilities to support their DX initiatives, meet ever-changing customer demands, implement solutions faster, and reduce cost.

“In the age of greater automation, standardization, and modernization, external providers need to keep up and redefine their value proposition, offering new delivery and consumption models.”


PH to still dominate call center space (Aug. 31, 2017)

The Philippines will continue to lead in the information technology and business process management (IT-BPM) space globally, with the contact center sector driving the growth despite the challenges of automation, according to Benedict Hernandez, president of the Contact Center Association of the Philippines (CCAP).

In a press briefing announcing the group’s annual conference, Hernandez said the contact center industry will continue to add over 73,000 jobs per year to 1.2 million workers in 2022 from 751,000 in 2016.

Revenues will grow 8 percent per year to $20 billion in six years from $12.8 billion last year.

Both estimates take into account the impact of automation which would result to job losses.

“Net, there will be growth, we are not going to decline, nor stand still,” said Hernandez.

The industry, he said, is shifting to mid-range to complex jobs while simple repetitive front office tasks are being automated such that the latter’s share to total would shrink to 27 percent by 2022 from 47 percent in 2016.

Whereas before the contact center sector was mostly front office, the industry is now capable of doing backend work such as human resource, finance and accounting, procurement and marketing.

Trends point to healthcare, telecommunication, insurance and pharmaceutical as the largest growth segment targeted from the Philippines.


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