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Posts Tagged ‘ BPO ’

By John Mark V. Tuazon
Computerworld Philippines
August 13, 2010

A BPO and IT firm which recently revitalized its Manila hub has revealed that it is keen on using Web 2.0 functionalities in order to improve and streamline its business processes, an executive of the firm announced recently.

Probably one of the first of its kind, Cognizant 2.0—from the name of the firm, Cognizant—is a collaborative platform and ecosystem which helps in delivering projects across the company’s multiple locations around the globe.

Developing a modern collaborative tool to be used by its employees seems a logical step for Cognizant, who has a presence in more than 80 locations across the globe.

The firm’s unique business process includes having locations where their customers are based, nearshore delivery centers, and offshore delivery centers, ensuring that each location leverages the best-of-breed skills various delivery centers have to offer.

“We want to move from cost arbitrage and into intellectual arbitrage—which is the ability to leverage global talent to be able to do specific tasks, so that customers can get value [out of their investments],” explained R Chandrasekaran, president and managing director, global delivery, Cognizant.

Using Cognizant Web 2.0, which was internally developed three to four years back, according to Chandrasekaran, they will be able to realize the move to intellectual arbitrage, especially that they aim to service multiple customers from financial services, healthcare, communications, media, and high-tech industries around the globe.

In the Philippines, where their contact center hub is located, agents can use the platform to post queries answerable by their 88,000-strong workforce around the globe who also use the same platform.

“Anybody can post queries, and have their questions answered. We want to leverage the knowledge of all people working on the ecosystem,” the company executive remarked.

Chandrasekaran said they chose the Philippines as their contact center hub because of the Filipinos’ English language capabilities, the technological infrastructure, the robust educational system, and the citizens’ customer-friendly approach to service.

Cognizant recently moved to their new delivery center in Manila, transferring to a larger site that can take up at least 600 professionals, up from merely 200 seats in their previous Manila site.

Chandrasekaran said they are bullish about expanding in the nation’s capital—and possibly in nearby and far-flung provinces—especially since the stellar growth of the company has been achieved even if they are barely a year into operations in the country.

“Our Manila center will continue to strengthen our integrated global delivery capabilities, as our investments in new global, regional, and local delivery centers help our clients harness specialized talent globally in order to meet their requirements and risk preferences, as well as provide business continuity,” he added.

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By John Mark V. Tuazon
Computerworld Philippines
July 22, 2010

Even if workers in the BPO industry enjoy steady work hours and a heftier salary than employees in other local industries, they tend to be too stressed out by other factors inherent within the nature of the job, an ILO (International Labor Organization) study on the conditions of BPO work environments in four top global destinations revealed Wednesday.

Because BPO work, often called call center jobs, requires workers to report during nighttime due to time zone differences between customers and agents, stress levels are at an all-time high, caused mainly by disruptions in individual sleeping patterns, voluminous workloads, and unsuitable design of workstations.

These are compounded by the fact that workers in the industry enjoy very little autonomy with regard the way they carry out their work, on top of very high demands from their superiors, according to the study—which collated results from Argentina, Mexico, India, and the Philippines—published in the book “Offshoring and working conditions in remote work.”

“The high demand [for employees] combined with low control is the core of the problem [in the industry],” explained Jon Messenger, co-editor of the book, during a Web conference from Geneva, Switzerland, with local reporters. “This is something we call a high-strain work organization. High job-related stress is [often] a result of this.”

The work organization in BPOs in the country often give heavy workloads bound with periodic performance targets, enforced by electronic monitoring, which give BPO workers—often young and well-educated individuals, the study found—very little autonomy within the workplace.

Even very basic things, such as time devoted for toilet or cigarette breaks, and control of their personal work desks, are deprived of these BPO workers, it added.

These are in spite of the fact that locally, BPO workers go home with a fatter wallet than the rest of the industry, at a rate at least 53% higher than the prevailing minimum wage paid to workers of the same age in other industries, or an average of more than P16,000 a month.

Despite heftier salaries, these work-induced stressors, according to Messenger, “are linked with high rates of staff turnover or attrition” within the industry, which affect both workers and employers, and keep them from fully achieving decent work.

In addition, stressed-out employees often turn to stress reducers and vices—such as smoking, drinking, and consuming large amounts of caffeine—to blow off steam.

Messenger refused to comment, however, on a local study which found high rates of risky behavior and HIV/AIDS prevalence within the industry, but surmised that due to the aforementioned stressors, “there may be some truth to [those findings].”

Call to Arms
Because of these findings, Messenger stressed the need to effect key changes in policies and company practices to make these jobs better. “We need stronger managers who will, for one, protect the health and safety of night workers,” he suggested.

“They also need to redesign their work processes, [for these workers to] have more discretion with their work, because these things can affect the employee’s perceived experience of the job,” he added.

Messenger likewise stressed the need for policies and practices aimed at improving workers’ collective voice and social dialogue in the industry, such as collective bargaining—which ultimately would benefit both workers and employers alike.

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By John Mark V. Tuazon
Computerworld Philippines
July 5, 2010

Building the BPO (business process outsourcing) industry from the ground up, establishing a stable private and public sector relationship, and proving to the Filipino people that ICT can be an effective enabler for the government are just some of the legacies the Commission on ICT (CICT) is leaving behind, a commissioner remarked recently.

The CICT, created by virtue of Executive Order No. 269 signed by former president Gloria Macapagal-Arroyo in 2004, is a transitory commission tasked to oversee ICT projects, policies, and agendas of the government.

The agency was meant to be a transition team that will precede the creation of a Department of ICT. Bills filed in the Congress to effect this measure, however, have failed to prosper.

Commissioners of the CICT are co-terminus with the President, which means the agency may be abolished because of lack of an enabling legislation for a full-blown department. The new Aquino government has not made any decision yet regarding this matter.

Still, Commissioner Monchito Ibrahim believes the commission was successful enough to effect change in the government, especially in terms of policy and projects. “We’ve proven that even if your budget is small, there are other ways of pushing your initiatives,” he said.

Ibrahim likewise touted the close ties the agency built with its main stakeholders, which he said is part of their projects’ success. “We’ve shown the other government [agencies] that there’s another model of making our agency more relevant, especially with our public-private partnership model,” he explained. “Everyone knows that BPA/P (Business Processing Association of the Philippines) sometimes hold office with us, and we also hold office with them, that’s how close we are.”

Though not largely credited for it, the commission was actually one of the enablers of the BPO industry in the Philippines by stimulating the ecosystem through economic grants and building infrastructure that encouraged foreign investment in the country.

Ibrahim, meanwhile, said he was hopeful the new administration would continue what the commission has already done. “I just hope they retain it, and hopefully strengthen CICT [further],” he related.

Still, he maintained, the creation of an ICT body is especially crucial if the administration wants to leapfrog other Southeast Asian neighbors in terms of economic development. “We need to look at ICT as an enabler for competitiveness and development. We need a single ICT body to actually move us to the global digital economy,” he reiterated.

ICT Stewardship
Establishing a central body to oversee ICT implementations in government is likewise the thrust of CIO Forum and the CIO Forum Foundation, groups of current and former government CIOs who have come together to fortify ICT’s relevance in the public sector.

Comparing the leadership of ICT to a conductor in a symphony orchestra, Toto Magsino, president and CEO of DBP (Development Bank of the Philippines) Data Center, said during the first e-Governance Forum in the country that the need for someone to orchestrate ICT in government is a fundamental need to further growth.

“We need somebody up there in front orchestrating,” he explained. “You can have the best musicians, the best equipment, and the best score, but without someone leading the way, [you won’t get good results].”

Magsino, also the vice president of CIO Forum, said the recent automated elections showcased what ICT in government can do, and potentially what can be done better. “We need not just the hardware and the software, we also need to take into account the processes, the efficiencies, the rules, and the maintenance of the system,” he added.

Getting the Act Together
Ivan Uy, incumbent president of the CIO Forum Foundation, meanwhile said the government has to get its act together in pushing for ICT, especially now that each agency has its own IT projects.

“Currently, ICT projects in government are just like the Philippine archipelago—there are islands and silos of information that have to be pooled together,” he shared.

Uy, also a former CIO of the Supreme Court, added that the Philippines is an integrated nation, not just a bunch of islands, so the approach to ICT should be in a similar vein. “We need to deliver ICT as a single point. The agencies should be together, otherwise we lose our global competitiveness,” he said.

Leadership
“Leadership has everything to do with it,” remarked Esperanza Espino, current president of the CIO Forum, in reference to neighboring countries leapfrogging the Philippines in terms of economic development.

Espino cited the example of Singapore, which has a central body in the form of the Infocomm Development Authority (IDA) laying out the roadmap for ICT in government. “In the IDA’s setup, the IT agenda is discussed in the cabinet level,” she shared. “That fact needs to be recognized [by the Philippine government], since we’re the only country in Southeast Asia that doesn’t have it on that level.”

Espino added that having an ICT champion who is accountable and in charge for all ICT is necessary, since “IT use among the population now is changing the ballgame, shifting from just simple automation of projects in government.”

“This is a leadership issue. We need a paradigm shift,” she stressed, adding that institutionalizing the ICT champion would ensure that projects would push forward even if there is a sudden or legislated change in government.

Updating the Roadmap
Newly elected President Benigno Aquino III won the elections on the premise of having a daang matuwid (straight road) towards governance, but Espino believes that in terms of ICT, an updated road is more necessary.

“The GISP (Government Information Systems Plan) is quite dated, it was drafted way back in 2000,” she explained. “It lacks components on priority listing and a timetable for implementation of the projects.”

The GISP is a framework for bringing public services closer to the people through the use of ICT, drafted under the administration of deposed President Joseph Estrada.

Espina, calling the current GISP “a museum item” for its old age, said the plan needs a review and an implementing agency to deploy the projects contained in the draft. “We need to establish a leadership structure and a time-based roadmap that is sustainable [if we want to push for this],” she said. “There’s a lot of efficiency to be gained by simply centralizing our systems.”

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By Emmanuel Amador
June 29, 2010

The best IT and business process outsourcing (BPO) locations in the Philippines were feted awards at the Recognition Night for the Top Ten Next Wave Cities 2010, held at the Cebu Sports Club last June 22 in Cebu City. Topping this year’s list was Davao City, followed by Sta. Rosa (Laguna) and Bacolod City.

The ranking was based on the Next Wave Cities (NWC) scorecard, an evaluation system established by the Business Processing Association of the Philippines (BPA/P), the Commission on Information and Communications Technology (CICT), and the Department of Trade and Industry (DTI).

Iloilo City, Metro Cavite, Lipa City, Cagayan de Oro City, Malolos City, Baguio City and Dumaguete City placed fourth to tenth on the list respectively.

In addition to naming the Top 10 BPO locations, the NWC evaluation also moved Angeles-Clark from Next Wave City status to an Established IT-BPO Hub, joining Metro Manila and Metro Cebu. Metro Cebu and Metro Clark were also recognized as Centers for Excellence.

The general criteria of the 2010 NWC scorecard are the availability of graduates and workers, infrastructure, cost, and business environment. These criteria were further broken down to consider relevant factors such as the presence of higher educational institutions, capacity to absorb new employment requirements, quality of roads, access to domestic and international air travel, the presence of fiber-optic network providers, availability of property sites, cost of labor and office space, regulatory fees and taxes, vulnerability to natural disasters, reliability of utilities, the peace and order situation, and the presence of PEZA-approved facilities and ICT councils.

In a short presentation during the event, CICT Secretary Ray Anthony Roxas-Chua III noted the importance of the IT-BPO sector to the continued growth of the region. Chua pointed out that the sector had not only recovered from the global financial crisis, but was still growing and providing more jobs that allowed workers to stay in the Philippines.

BPA/P CEO Oscar Sañez followed up with another presentation on managing IT-BPO growth through the NWC initiative. He noted that the availability of qualified and competent local talent was still the most important factor for choosing the Philippines as an outsourcing location.

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By Emmanuel Amador
Computerworld Philippines
June 28, 2010

The University of Cebu (UC) and IBM Philippines launched a partnership called the “Earn As You Learn” (EAYL) Program in simple ceremonies at the school’s Banilad campus in Cebu City last June 22.

The first of its kind in the Philippines, the UC-IBM partnership is based on a successful collaboration between IBM and the University of Ballarat in Australia. The EAYL program consists of a new undergraduate course that combines a specialized curriculum with real-world experience in a professional IT environment. The EAYL is incorporated into UC’s eight-semester degree program, Bachelor of Science in Information Technology - Professional Practice.

IBM worked with UC to design the new course, recommending subjects to supplement the curriculum. IBM training material on topics such as business conduct, data security and privacy, database management, data analytics, and software quality assurance will also be provided. IBM subject matter experts will lecture on special topics and conduct continuous training for UC faculty.

“We are excited to work with one of the giants in the IT industry,” said Ms. Candice Gotianuy, UC Chancellor. “When IBM approached us and inquired if we were interested, we didn’t just say yes, we asked ‘when?’”

The EAYL officially began at the start of the 2010-2011 school year last June 15 with 16 scholars. The scholars were formally accepted into the program at the launch event, which was attended by the scholars’ parents’, top IBM executives, school and city government officials, and the media.

This is something exciting for both the university an the students,” said Dr. Ofelia Maña, UC - Banilad Campus Director. “If we provide our students with the right IT skill set and relevant work experience, we help ensure a healthy pipeline of competent IT graduates for the future,” she added.

GEOGRAPHIC EXPANSION

The partnership with UC is part of IBM Philippines’ geographic expansion efforts to reach new markets and transfer technology beyond its traditional Metro Manila client base. “Global demand for IT is growing is growing now more than ever. It spurs economic growth across all industries and economies. This collaboration will help address issues that collectively impact the IT industry,” said Mr. James Velasquez, President and Country General Manager of IBM Philippines. “It will help bridge gaps and address the shortage of competent IT professionals in Cebu City.”

Velasquez further explained that what would attract further investment from large players such as IBM would be a city’s openness to innovation, responsiveness to the demands of industry, and cooperation from the local government.

The launch was also attended by outgoing Cebu City Mayor and Congressman-elect Tomas Osmeña, who expressed appreciation for the new and timely training opportunities brought about by the EAYL program. Osmeña noted that for the first time, Cebu was not facing a shortage of jobs but instead a surplus of job openings particularly in the BPO (Business Process Outsourcing) industry without qualified candidates to fill them.

“We can’t keep on doing the same old routine of just cranking out graduates without a clear idea of where they will be going,” Osmeña said. He added that he was confident the new local administration of Cebu City would work with the private sector to train competent graduates who can qualify for high-paying jobs.

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By John Mark V. Tuazon
Computerworld Philippines
June 7, 2010

The emergence of the cloud, the potency of the new Web, and the proliferation of mobile devices are just some of the key technology trends global outsourcing provider Accenture is seeing to take over the enterprise world in the next three to five years.

In an announcement made before the press hours before the annual CIO Forum where the company gathered local CIOs and IT mangers to update them on new technology trends, Michael Redding, the BPO firm’s global managing director for Accenture Technology Labs, their R&D division, highlighted seven key trends that will define the way enterprises run their businesses.

Foremost of these trends is the jump to cloud computing, which Redding describes as a “powerful trend” that can match IT supply to business demand. “20% of servers in the world are bought by only four companies: Amazon, Yahoo, Google, and Microsoft,” he pointed out.

This enables the aforementioned firms to offer their servers for rent, which is a form of cloud computing. “Every layer of the stack can be subscribed to as a service,” Redding explained. “So instead of owning the hardware, they can just rent it.”

IT equipment, however, is not the only element of IT being dispersed by new technology developments. Special equipments—such as video and audio players—are slowly being replaced by new Web 2.0 elements, according to Redding.

“Now, the browser is all you need,” he emphasized. Redding highlighted the emergence of HTML5, which is able to deliver rich media experience through the browser, instead of other standalone applications. “This will change the way CIOs deliver applications to their employees,” he added.

Another change in the application delivery space is brought about by mobility, which is opening up the enterprise to new channels and devices acting as doorways to information. “Smartphones are not expensive phones, they are cheap computers,” the Accenture executive remarked.

Redding said CIOs should first think about building their mobile platform, because today, “the way to reach customers is through mobile.”

The name of the game, therefore, is flexibility, or as Accenture would candidly put it, elasticity. “The successful enterprise of tomorrow is going to be flexible, and can adapt to a number of factors and changes in the industry,” Redding added.

Other technology trends Accenture is foreseeing to dominate global organizations include: fluid collaboration through major software platforms; the rise of social media and the creation of the conversation economy; the use of data to make decisions in order to differentiate; and the fourth generation of system development, which relies on cloud-based architecture.

Accenture is a global management, consulting, technology services, and outsourcing company, with a 181,000 employee base in over 120 countries. In its delivery center in the Philippines, the company employs at least 18,000 people to service global clients in Europe, North America, and Asia.

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By Tom S. Noda
May 3, 2010

execAlthough presidential candidates for the May 2010 national elections have been announcing their various platforms for the country in their campaign, little is known about their stand on information and communications technology (ICT), which industry advocates view as a “vital tool for national development and growth.”

In this special report of Computerworld Philippines, the top five presidential candidates (based on surveys) share their platforms for ICT, which they agree has an effect on almost all kinds of national concern be it on the economy like trade and finance, national security, environment, healthcare and foreign affairs, to name a few.

The candidates we interviewed for this feature are Benigno “Noynoy” Aquino III (Liberal Party), Richard Gordon (Bagumbayan), Manny Villar (Nacionalista Party), Gilberto “Gibo” Cojuangco Teodoro, Jr. (Lakas-Kampi-CMD), and Eddie Villanueva (Bangon Pilipinas Party).

Among the tech platforms the candidates shared are their plans on how to further develop the local ICT industry, their opinions on past and future ICT bills, and strategies on how the country can leverage on the booming business process outsourcing (BPO) industry which is expected to exceed a record breaking US$9 billion revenues this year.

Meanwhile, ICT industry advocates, both from government and private sectors, also shared their recommendations and suggestions in order to guide the next president of the Philippines to come up with effective ICT strategies. Computerworld Philippines interviewed groups such as the Commission on ICT (CICT) for the government sector, and the Business Process Association of the Philippines (BPA/P) and the IT Association of the Philippines (ITAP) for the private sector.

PEOPLE EMPOWERMENT

The only son of the late Aquino couple – former senator Ninoy and former President Cory, who are known advocates of democracy and people power in the Philippines – Noynoy Aquino believes IT development can help empower the people in terms of job generation.

He says the positive values that can be drawn out of IT can be achieved by helping citizens, particularly students, if they can further develop their technology skills. “Through education, IT can be one of the best means to further empower the people and get them new job opportunities. The whole gamut of IT can help even the creative side,” Aquino told Computerworld Philippines at the presidential forum hosted by the People’s Management Association of the Philippines (PMAP).

An economist by education and a lawmaker by vocation, Aquino admits he is not technology-savvy but sees IT as a tool that can help improve the country’s economic situation.

“I’m not really much of a techie but IT is a tool that can be used properly,” he comments. Aquino, however, warns “it is a truism that when people want to make a lot of money, they will go into something few people understands.”

He adds “definitely, we will make sure that what was tried and forced on us with the ZTE deal will not happen.”

However, when asked about his views on the clamor for the country to finally have a Department of ICT (DICT), Aquino seems to share Senator Mar Roxas’ reported stand— which is “no” to a department. Roxas is Aquino’s running mate under the Liberal Party for vice president position.

Reports say Roxas opposes the creation of a DICT to avoid bloating the bureaucracy.

“I’m still studying the need to create a new department. The problem is there are a lot of departments already. We have lots of offices, and officers that are not actually doing something useful,” he explains in Filipino.

Aquino even wonders how many people are already presidential consultants, advisers, secretaries with no titles, also undersecretary, assistant secretary, and with all their assistant staffs.

Aquino served as congressman from 1998 to 2007. He has been a senator of the republic since May 2007 until today.

AUTOMATION RULES
For Senator Gordon, automation is the name of the game, be it in healthcare, national elections and, especially, in education.

During a forum at the Ateneo de Manila University in Quezon City, Gordon told Computerworld that he began the campaign for using ICT in government.

“I started this (ICT). When I was chairman of Subic there were GPS (global positioning system) and GIS (geographic information system) in our ambulances. I’ve been encouraging our people to use them since then,” he claims.

And as chairman of the Philippine National Red Cross (PNRC), Gordon claims the humanitarian organization is now “fully automated” with the use of GPS and GIS not just in ambulances but also in all of the group’s trucks and equipment. He has been a volunteer of the PNRC for 40 years.

Gordon is hailed by many as a “transformational leader” because of his legacy in transforming Olongapo’s “Sin City” (Subic) into a modern and model city during his mayoralty in the 1980s. When he was elected as senator in 2004, he sponsored the Automated Election System law. He believes it will help the country achieve a clean, honest, fair, and credible elections.

“I don’t have to show my achievements when it comes to ICT in this country. I’ve done it. I sponsored the automated elections and fought for it for four and one half years and I got it done,” Gordon exclaims, referring to the upcoming 2010 automated national elections which will be the first time in Philippine history.

According to Gordon, Filipinos should start thinking in terms of creativity, especially on software IT innovations.

“We must be the builders of new software, of new platforms to reach the heavens with our ideas,” remarks Gordon.

However, he claims that in order to further advance the country’s BPO industry, Filipinos must improve on their soft skills in English.

“We have to continue not just speaking in English but thinking in English. In the meantime, you have to get a better value out of our people because if we don’t do that, the Chinese and the other countries are going to try and get there as well. So we have to be nimble,” he says.

Gordon continues that among his concrete solutions to further develop the BPO talent pool in the Philippines are the establishments of “incubators” in universities and by providing students with a US$100 Kindle – a wireless electronic reading device that can be stocked with electronic versions of books and other printed materials. He sees the Kindle more helpful and useful compared to the Php4,000 worth of books that the government spends per student every year.

“With incubators in every university, kids can do their research, do their study, and make platforms there,” he says. “I would like to get our people in the United States to comeback. I would send more kids to go out there as scholars and have them return here as computer engineers and computer scientists.”

For his Kindle proposal, Gordon says the target is for kids to read more. Comparing books and wireless devices, Gordon says “books are often marred with errors.” With a Kindle, he says students will even get the right pronunciation of words, learn their history or etymology, or simply find anything by way of research.

Gordon shares he would love the country to have a DICT but its bill was left “stranded” during the Senate’s last session day in Feb. 3, when Senator Villar did a surprise speech defending his self from the C-5 road controversy.

IT INVESTMENTS

Meanwhile, Gibo Teodoro vows to pursue his priority strategies for ICT if ever he wins as the new president of the republic. Topping his list is IT investments.

“First and foremost, we must increase investment in ICT. Definitely, government must support the infrastructure necessary for greater interconnections; connectivity not only in schools but also in public infrastructure and in the enterprise private sector,” Teodoro told Computerworld Philippines during an ambush interview at the Perpetual Help University in Las Pinas City.

Teodoro says ICT can help many agencies and believes that a lot of efficiencies can be achieved through it. As the former head of both Department of National Defense (DND) and Natural Disaster Coordinating Council (NDCC), Teodoro believes IT can be a tool in helping the country prepare for and respond more effectively to natural and man-made disasters.

“There is a lot that can be done. From early warnings, to monitoring of levels of floods, to prediction of weather patterns, ICT can help,” Teodoro says.

Second to his ICT plans is the crecreation of what he calls “ICT professionals development.”

“The service of IT professionals is one of the best areas where there are growth potentials and we really have to synergize that. Filipinos in those areas can compete, not only when it comes to hardware but in terms of brain power,” Teodoro says.

Teodoro adds he will call for the passage of bills in the legislature that will give incentives for greater investments for ICT. “But this is without creating another layer to the bureaucracy,” he says, referring to the creation of DICT.

Although concerned about security, Teodoro admits he does not support the creation of the Cybercrime Law.

“There is difficulty. Number one, what’s the origin? Number two is the monitoring of an actual person. Even in the US there is a big difficulty in that,” says Teodoro.

Teodoro is also a licensed commercial pilot and holds rank as colonel in the Philippine Air Force Reserve Force. At 45, he is the youngest person to ever achieve the DND secretary position.

IT LEARNING

For his part, Villanueva says he will push for the creation of what he terms as the Commission on Human Resource Development or CHRD that will focus on the massive development of ICT skills in the country to contribute to nation building.

“We will transform state colleges and universities, and even grant incentives to private educational institutions to really produce scientists and mathematicians in order to invent new knowledge, products and processes,” says Villanueva, who puts a premium value on ICT.

A former professor of economics at the Polytechnic University of the Philippines (PUP), Villanueva says that in today’s global economic development, IT plays a vital role in creativity, innovation, and resourcefulness.

Villanueva says global competitiveness is shifting to knowledge-based economies, which is the primary reason why he fully supports allocating budget in the promotion of ICT as an integral part of educational programs.

“ICT brings value-added production in the economies, so we must ensure the mandate and practices of science high schools, producing graduates which are not only competent but also world-class in software programming, in Internet or network technology,” he says.

TRANSPARENCY VIA ICT

Aligned with Villar’s promise in alleviating poverty in the country is to curb corruption by using ICT. And one sure fire way, he says, is to capitalize on ICT to achieve transparency in government.

“We believe that ICT, when optimally used by the government, can provide limitless opportunities. One of which is the use of appropriate facilities by which transparency is directly available to the public,” Villar says, adding that he intends to utilize and maximize the benefits that can be derived from ICT.

Among the senator’s plans is to provide linkage between the government and the public through ICT by means of radio, TV, the Internet, among others, as he believes they will ensure transparency of government transactions as well as efficient delivery of information to a wider audience.

“We will also capitalize on available technologies to streamline business processes to cut bureaucracy and reduce red tape, thereby saving operational costs for the government,” he adds.

Villar believes his platform for ICT can be specifically achieved through the passage of the Freedom of Information Act. “The Senate has ratified the bicameral conference committee version of the bill, which seeks to establish a policy of transparency and free information access to the public.”

He stresses that the use of ICT in government transactions can expedite delivery of services, thereby promoting easy access to public records, transparency, and accountability.

An entrepreneur by profession, Villar says he aims to develop further the local BPO industry by improving the investment climate in the Philippines, which he claims is his party’s main thrust.

“We really would like to strengthen our service industries such as BPOs and Knowledge Process Outsourcing (KPOs). This will be done through our continued support to these industries through stable policies involving their sector,” he says. “More so, we will try to make sure that we have the proper mix of human resources to meet their demands. This can be done by upgrading our quality of education.”

Villar describes BPO, tourism and agriculture sectors as “key priorities” in his platform of government as they are all labor-intensive. “These industries create more jobs and at a faster rate, thus providing an effective solution to unemployment problems in the country.”

However, he doesn’t have a final say yet when it comes to DICT’s creation but claims he is “pliant” or open-minded about changes. “There are competing sides for the DICT. Thus we want to further study these sides so we can make informed decisions.”

But with regards to the Cybercrime bill, Villar says he is all out for its legislation into law.

“We are, in fact, one of the authors of the Cybercrime Prevention Act filed in the Senate. We believe that it is about time that the Philippines have a legislation criminalizing cybercrimes as at this point such criminals usually go scot-free due to gaps in the penal law in our criminal justice system,” Villar says.

With all their various plans for the local ICT sector, the candidates come to terms as to the importance of IT in this era. And that is, almost all industries will need IT empowerment to achieve growth at a faster scale.

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By Tom S. Noda
Published in the CWP April 2010 issue

IT industry groups from the private sector have created a policy report aimed at guiding the next administration in effectively implementing his or her ICT platform.

Entitled the “eGrowth Plan: The ICT Road to Economic Growth” the report is composed of a set of recommendations on policies and projects that the government needs to implement to harness growth.

The 32-page eGrowth Plan report was derived from several Focused Group Discussions (FGDs) and Roundtable Discussions (RTDs) by the IT Association of the Philippines (ITAP), Business Processing Association of the Philippines (BPA/P) and Computer Manufacturers, Distributors and Dealers Association of the Philippines (COMDDAP). It was written by Emmanuel Lallana, former commissioner of the Commission on ICT (CICT), who convened the group’s meetings.

The groups say government should harness ICT in its drive to stimulate the economy. But more than just recommendations, Lallana wrote the eGrowth Plan also forms an “agenda towards making the ICT sector more competitive and better able to contribute to national economic growth and development.”

Among the eGrowth Plan’s set of recommendations on policies and projects to the government include an immediate, intermediate and long term approach, which are: improving digital infrastructure; capacity building; enhancing eGovernment services; and creating an enabling environment for the ICT sector. For the long term plan, the report indicated ICT leadership, vision, strategy, developing competencies, and establishing genuine partnership between local government units (LGUs) and the ICT industry.

Oscar Sanez, president and CEO of BPA/P, told Computerworld Philippines the next administration should target to get the country in high rankings in the area of IT competitiveness via strengthening the infrastructure for ICT such as broadband access, computers for schools, e-government, and also by deploying the right IT policy and promoting broad education and usage for ICT technologies and competencies.

“The Philippines has no choice. If it wants to create more jobs for our young people, we need to have a government that puts priority to the ICT competitiveness of its working population.” Sanez says. “Government has to understand that even agriculture, utilities and small-scale industries will have to rely on ICT capability and competitiveness to flourish.”

Sanez says the next administration should promote a BPO strategy that is anchored on two fronts – one is to rapidly increase the supply of talent on the IT-BPO skills laid out by the industry through financial support to training institutions that will participate and scholarships for the identified competencies. Second, there should be a strategy on how to increase the level of awareness for Philippine BPO in the sourcing markets (US/Europe) through aggressive marketing campaigns highlighting the Philippine talent capability and country branding.

The BPA/P boss says “the administration of President Gloria Macapagal-Arroyo did not invest in international marketing missions and international marketing which did not help create the right level of awareness for Philippine BPO capability.“

As a result, many emerging countries like Egypt, Malaysia, South Africa, and others surged forward while the Philippines lagged behind in awareness. “This was a serious mistake which should not be repeated by the new administration,” Sanez stresses.

Sanez continues that the BPO industry will support a candidate who puts ICT at the top of his or her priority.
“The opportunities for getting the Philippines to reach US$20 billion to US$30 billion during the term of the next president depends on how much he or she can invest in promoting the right policy to enable industry growth,” Sanez said. “Foremost would be the passage of the DICT bill, the data privacy bill, the fiscal incentives regime, the cybercrime bill and the various amendments to the labor code. These bills will help clear the barriers to growth and promote a business environment that supports unencumbered investments in the ICT sector.”

Meanwhile, CICT chairman Ray Anthony Roxas-Chua hopes that the next president will view ICT not merely as a revenue generator or support tool, but also as a means of empowering the Filipino people and bringing the country closer to the ranks of developed nations.

“I hope his or her platform will include providing broadband Internet access to all Filipinos and using ICT to eradicate corruption in all levels of government. I also hope the next President will create a stronger entity, whether a department or in some other form, to oversee the ICT development of the country,” Chua says. “Whatever form it is in, one thing is certain – communications and information technology needs to be under one body in line with global convergence trends.”

Chua says “IT-BPO” has been and will continue to be one of the biggest success stories of the country. Despite the success, he says the Philippines must constantly strive to be even better and more competitive, because many other countries are aggressively trying to penetrate the market.

“I believe the next administration should Philippines as the No. 1 IT-BPO alternative to India, improving our educational system to develop more knowledge workers, migrating the industry to higher value KPO (knowledge process outsourcing) opportunities while still maintaining our dominance in call centers, diversifying our markets outside the US, and developing more cities as IT-BPO destinations,” Chua says.

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By Cora Llamas
Computerworld Philippines
April 12, 2010

The 4th International ICT Awards held on March 25 at the Dusit Thani Hotel recognized the contributions of eight players in the business process outsourcing (BPO) industry who had helped raise the bar even further in 2009. According to Oscar Sañez, President and CEO of the industry association Business Processing Association of the Philippines (BPAP), the awards body, since its establishment in 2006, has consistently proven the Philippine BPO industry’s capability to compete in the international arena.

“The industry garnered US$7 billion in revenues in 2009 and employed 446,000 people. With more than 350,000 BPO employees in Metro Manila alone, the National Capital Region has been regarded as the biggest BPO city in the world,” Sañez adds.

Further data from strategic consulting firm Tholons have already ranked the Philippines as the No. 2 nation for offshore outsourcing.

Sañez foresees the continued growth of the industry and projects an over-all revenue of US$500 billion by the year 2020. Philippine BPOs intend to capture at least 10% of that market share which translates to US$50 billion in revenues.

The “BPO Company of the Year” category indicates that the winner would have the resources and drive to take a lead in that venture, if only for the size and growth of its own revenue and employees. Other criteria included the size, quality and diversity of international clients; depth and breadth of competencies as demonstrated through industry recognition; management capabilities reflected in the experience and accomplishments of the leaders; participation in corporate social responsibility initiatives; and testimonials from stakeholders.

Convergys Corporation, awarded the BPO Company of the Year for 2009, fits the requirements with its four newly opened sites and the addition of 4,200 jobs to its current 20,000 employees. Its expanded portfolio includes Back Office, Accounts Receivables Management, Finance & Accounting, HR Management, Customer Care, Technical Support and Market Research. Convergys’ commitment to talent development is evinced in the US $4.3 million it spent on training for about 11,000 employees the past year.

TELUS International Philippines was named “BPO Employer of the Year,” a category measured by the effectivity of employee retention rates, the alignment of all levels of the organization to their defined mission and vision, and the commitment to the continuous learning of their workforce. Some of TELUS’ programs include: Program ONE for orientation of new hires; Personal Empowerment Program offered to all team members; LEAD for developing leadership capabilities; OnTrac for developing operations management abilities; and Executive Development for senior leadership team members.

Deutsche Knowledge Services won the “Award for Shared Services Excellence of the Year” which was open only to captive operators which had a minimum of 100 employees at the end of 2009 involved in providing services from the Philippines to their company’s global network. Established in 2005 as a wholly owned subsidiary of the Deutsche Bank Group, Deutsche Knowledge Services provides accounting, reporting, profit and loss, cost, reconciliation, MIS, risk control, information technology and operations services to internal businesses worldwide. Based in the Philippines, it employs more than 1700 professionals and is managed by an international team of Filipino and expatriate executives.

The “Non-Voice Excellence of the Year Award” only qualified nominees who were “pure BPOs serving international clients.” The winner, SPi Global Solutions,is headquartered in the Philippines and has 14,000 employees in 23 delivery sites in Asia, Europe and North America. As global leader in Content BPO, it is currently serving over 500 clients across content-centric industries including publishing, healthcare, and financial services.

Commission on Information and Communications Technology (CICT) Chairman Ray Anthony Roxas-Chua III was named the ICT Individual Contributor of the Year, who must have shown long-term commitment to developing the Philippine BPO and ICT industries. Roxas-Chua was credited for the robust growth of the Philippines IT-BPO industry, especially by fostering an effective collaboration between the government and the private sector.

Other winners in the 4th International ICT Awards were WNS Philippines, Inc., Best New BPO Locator of the Year; Sutherland Global Services, Fastest-growing BPO of the Year, and Northgate Arinso, Most Innovative BPO Company of the Year.

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By Computerworld Philippines Staff
March 31, 2010

Claiming to be the “largest private employer” in the Philippines, Convergys was hailed as the “BPO Company of the Year” during the recent 2010 International ICT Awards in Manila, Philippines.

According to the judging committee, it gave the award to Convergys based on its leadership, size, diversity, commitment to continuous improvement, corporate social responsibility involvement, and its active support of the international information and communication technology industry in the Philippines. The judges are composed of a diverse group of independent individuals with extensive experience in the industry.

Organized annually by the Business Processing Association of the Philippines (BPA/P) and the Canadian Chamber of Commerce of the Philippines (CCCP), the prestigious award “promotes the work and achievements of companies, individuals, and the overall industry to the Philippine and international business community.”

Marife Zamora, vice president and country manager of Convergys Philippines, who accepted the award in behalf of the company’s 20,000 employees, described year 2009 as a banner year for Convergys.

“[In 2009] we opened five new sites and surpassed our goal of having 20,000 employees as part of our workforce, all whom delivered unparalleled service to our clients and their customers. This award is a testament to our employees in the Philippines whose hard work and dedication continue to support our growth and our goal of being the employer of choice throughout the country,” Zamora said.

Yet Andrea Ayers, Convergys president on customer management, said the award is truly a reflection of Convergys’ outstanding service in the Philippines, providing high quality of service from its clients abroad.

Since the launch of the ICT awards ceremony in 2007, Convergys received three international awards from the local ICT community. The company won as “BPO Employer of the Year” in 2009 based on its 2008 performance. 

Within six years, Convergys has established 12 contact center facilities in the Philippines – seven located throughout metro Manila – three in Cebu City, one in Bacolod City, and one in Santa Rosa, Laguna. – Tom S. Noda

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bte-awards_photoTeleDevelopment Services, Inc. (TDS) and the Philippine Society for Training and Development (PSTD) honored three individuals and two companies for their exemplary achievements in the field of call center, business process outsourcing (BPO), and knowledge process outsourcing (KPO) training during the First Annual BPO Training Excellence (BTE) Awards.

The BTE Awards honors individuals and organizations for their contribution to the Philippine outsourcing industry. By recognizing best practices, innovation, and excellence, the BTE Awards aims to further enhance the delivery of support solutions and services for the outsourcing industry. The awards ceremony was held during the recently concluded 4th Annual Call Center and BPO Training Convention.

“The number one driver of the industry is talent. We need to recognize our trainers and continue to motivate them as we move forward,” said Sec. Ray Anthony Roxas-Chua III, chairman of the Commission on Information and Communications Technology (CICT).

The winners of the BTE individual awards were Vita Marie Viajar, senior manager, Training and Development and Talent Acquisition, Integra Business Processing Solutions, Inc., Trainer Excellence Award; Orlando Agawin, manager, Training and Delivery, Aegis PeopleSupport, Inc., Training Manager Excellence Award; and Vina Paglicawan-Villegas, regional training manager, JP Morgan Chase, BPO Exemplary Trainer Award.

The corporate awardees were HSBC Electronic Data Processing Philippines , Business Training Innovation Award, and Integra Business Processing Solutions, Inc., Commitment to Training Award. Finalists for the corporate awards were Aegis PeopleSupport, DSM Manila LLC, Cyber City Teleservices, Advanced Contact Solutions, and Genpact.

“We can credit much of our success in BPO to highly skilled trainers who are passionate about learning, talent development, and industry growth,” said Jon Kaplan, TDS president. It’s time we recognize training excellence.”

TDS also gave special citations to Manuel Agcaoili, founder and president of Nova Foundation, and Dr. Jose Mordeno, founder and president, Speechpower, for their significant contributions to the country’s training and development industry.

Mordeno established the country’s pioneer communication training institution that offers courses in public speaking and American accent, among others. “What has glued me to this profession is the love for training and teaching. This is my life,” said Mordeno, who became the first Filipino to teach speech to Americans at the University of Hawaii .

Agcaoili leads the Nova Foundation, an organization that seeks to promote the full participation and the economic and social integration of persons with disabilities through career development. Since 2005, Nova Foundation has trained 540 differently-abled individuals, of which 286 are now employed. “What is the significance of 286? They have never been employed,” Agcaoili said. “With TeleDevelopment as our partner, we look forward to continue training the visually impaired in doing call center work,” he said.

According to Business Processing Association of the Philippines (BPAP), the industry is expected to generate US$11.6 billion in revenues and grow to 708,000 employees in 2011. “Recognition is very important, and setting the bar is a true mark of progress,” said Oscar Sañez, BPAP chief executive. “Without companies like TDS, we would not be where we are today. BPAP has been successful because we have partnered with the right, effective, and qualified organizations,” he said.

All BTE Award categories were open to companies, organizations, and enterprises that have been providing outsourced services to both on-shore and offshore client organizations in the Philippines as their main line of business for the period 2000–2009.

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By Cora Llamas
Computerworld Philippines
March 17, 2010

According to the “Top 50 Emerging Outsourcing Cities” report by Tholons in October 2009, the Philippines is acknowledged as the no. two offshore nation in the world, second only to perennial leader India. The National Capital Region of Manila is the number four global outsourcing city after its Indian counterparts Bangalore, Delhi, and Mumbai. Cebu City is ranked as the number 1 emerging global outsourcing city.
All these translate to a total BPO revenue of $7 billion in 2009, a growth rate of 46% per annum the past six years, and 440,000 employed.

The Philippine BPO industry members then have a good reason to experience optimism while continuing to push forward on its momentum, says Oscar Sañez, the CEO of the industry association the Business Processing Association of the Philippines (BPAP). The expression of that optimism will take shape in the 4th International ICT Awards on March 25, 6 p.m., at the Dusit Thani Hotel in Makati. Organized by the BPAP and the Canadian Chamber of Commerce in the Philippines, the awards recognizes success in organizations and individuals who contribute to put the Philippines on the global outsourcing map.

Sañez enthuses, “The voice sector continues to show strength at a growth rate of 22% up from 14% in 2008, while the back-office sectors register a 35% growth.”

Another international research firm, the Everest Research Institute, reported in January of 2009 that the Philippines is “poised to emerge as a leading destination for non-voice process outsourcing work.” I t also notes that the country “represented a healthy 15% of the offshore BPO market.”

Sañez continues, “Back-office and Knowledge Process Ousourcing Companies (KPO) built on the excellence in voice customer services and ventured into the more complex, higher-value services delivery from the Philippines. We need more specialized knowledge workers such as health care providers, engineers, IT, finance, and research.”

Can-Cham Chairman Richard Mills concurs with the trend, “More and more global companies are seeing that the Filipinos can do more of the value-added kind of services here such as human resources, financial analysis, design and engineering, among others. We are also beginning to see that, instead of their staff members as was in the past, the ones who are making the trip to the Philippines are senior leaders for foreign companies who can make decisions on a global scale. The Philippines has become a global hub for back-off services.”

There are eight categories that will honor the organizations and individuals who have contributed to the Philippines’ market leadership the past year: the Best BPO Company; the Best BPO Employer; the Best Shared Services Excellence; the Best Non-Voice Excellence; the Best New BPO Locator; the Fastest-Growing BPO; the Most Innovative BPO Company; and the ICT Individual Contributor of the Year.
The finalists will be announced on March 18, a week before the actual awards night.

Members of the judging committee include Sañez; Mills; Henry Schumacher, the executive director of the European Chamber of Commerce in the Philippines; Don Felbaum, co-chairman of the ICT Committee of the American Chamber of Commerce in the Philippines; and Elmer San Pascual of the Philippine Economic Zone Authority.

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By Tom S. Noda
Computerworld Philippines
March 9, 2010

Failing to achieve a permanent entity status, the Commission on Information and Communications Technology (CICT) is now setting up policies that will guide the country’s next president to advance on ICT developments.
 
“What we really want to do in the remaining months is to put in place the policies that will guide the next administration,” said Ray Anthony Roxas-Chua, chairman of CICT, in an exclusive interview with Computerworld Philippines.

CICT is coming off from an advocacy loss in the Senate recently, with the death of the bills mandating the creation of the Department of ICT (DICT) and Cybercrime Law. And since it remained only a commission under the executive order of President Gloria Macapagal-Arroyo, the next president can easily do away with CICT. Arroyo’s term is scheduled to end on June 10, 2010.

Roxas-Chua said it’s up to the next administration if it wants to follow or not the policies CICT is now crafting.

“We want to leave these policies so that developments will continue. At least, we won’t have to worry about the longevity or permanent nature of CICT,” he explained, adding that historically, parts of CICT have been going in and out like its separation and reunion with the National Telecommunications Commission (NTC) and Telecommunications Office (Telof).

Roxas-Chua said CICT’s focus remains consistent on the cyber services and business process outsourcing (BPO) sector, e-government (e-gov), capital development, and also infrastructure development.

However, he said CICT should come up with a new flow chart or new structure so as to fully indicate the other agencies that were brought under it like the NTC and Telof. As a commission, he shared it was “difficult for CICT to create a comprehensive ICT plan.”

Appointed by President Arroyo in 2007, Roxas-Chua said CICT has achieved a lot of its targets when it comes to projects implemented and advocacy for ICT based on awareness. However, a lot more developments could have taken place if CICT was a department.

“I think we could have done more if we had a stronger entity. One of the challenges we had was we didn’t have the infrastructure component until this year,” Roxas-Chua said.  “NTC and Telof were only brought back to us in early 2009 and so we weren’t able to accomplish anything in the first year and a half.”

CICT is now reportedly trying to catch up with its universal broadband strategy and other issues being tackled by NTC.

Roxas-Chua said if only CICT was a department, “all ICT projects of government would have been cohesive — aligned with the central national ICT platform.” 

Yet Roxas-Chua reported CICT is doing well when it comes to projects among schools and is now in the process of connecting many of them by providing broadband connectivity. It is now on the stage of procuring satellite connectivity for schools that have no available alternatives.

And on the e-government side, he said CICT is strengthening its e-government fund guideline by working with the Canadian government which is helping them revamp the guidelines, for the latter to become more efficient and hopefully translate to more successful IT projects in government.

Roxas-Chua added CICT will be rolling out the new batch of computer laboratory and will also promote the country as the “offshoring destination of choice.” The commission’s officers plan to go to Germany, Australia, Singapore and in the US soon to promote the Philippines.

“The industry grew to about 20% last year. So hopefully this year with the recession finally coming to an end, it will be back to a normal run rate of 25%,” Roxas-Chua said.  

President Arroyo recently reported that revenues from the country’s BPO sector is expected to exceed US $9 billion this year compared to its record of US $7 billion revenues in 2009.

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By Computerworld Philippines Staff
February 22, 2010

Only on its first year of operations, StarTek, Inc., a provider of high-value business process outsourcing (BPO) services, recently opened its second customer care facility in the Philippines with 2,100 seats.

The new facility occupies about 15,000 square meters of the Eton Cyberpod Corinthian business center along Ortigas Avenue in Mandaluyong City, a major commercial complex in the Philippines. It is a new addition to StarTek’s 1,100-seat Makati facility which is targeted to be at full capacity by the first half of 2010.

Larry Jones, StarTek president and chief executive officer, said the addition of a second location in the Philippines will continue their goal for further global expansion plans. “We are building on the success of our first location in Makati that opened just over a year ago,” he said.

According to the Call Center Association of the Philippines (CCAP), StarTek’s planned expansion will contribute to the growth of the contact center industry in the Philippines, which is expected to expand at least 15% this year to US $5 billion in revenue. In 2009, the contact center industry recorded revenue of US $4.5 billion.

StarTek’s service suite includes customer care, sales support, complex order processing, accounts receivable management, technical support and other industry-specific processes. The company is headquartered in Denver, Colorado, USA, where it provides these services from 20 operational facilities.  – Tom S. Noda

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By John Mark V. Tuazon
Computerworld Philippines
February 17, 2010

A global technology provider for financial institutions has recently set up shop in Manila, laying the foundations for a contact center facility to service its customers worldwide and to expand its business locally.

FIS, which provides core banking solutions for six out of the top 10 banks in the Philippines, opened its BPO facility along Pasong Tamo Extension in Makati City, in an inaugural event graced by President Gloria Macapagal-Arroyo herself.

The tech vendor, who has been providing financial technology solutions in the country for over 21 years, said they initially outlined the facility for BPO services, with goals of expanding to IT outsourcing, core processing and payments, and item processing in the near future.

“We chose the Philippines as a site for our BPO operations because of the quality of the associates we were able to hire here,” remarked Gary Norcross, corporate executive vice president and chief operating officer, FIS.

Norcross said they are initially opening the US$5 million facility with 400 to 500 seats, to be expanded to as much as 1,000 seats over the next 18 months. The FIS executive said plans of establishing facilities to neighboring cities are not on the table right now, saying “we want to get a strong foothold in a particular city [first].”

With the new site, Norcross said FIS is looking to consolidate its resources and service offerings in Manila, in order to service other countries in the region. And with the recent economic crisis affecting most financial services institutions globally, he added that investment in IT will see renewed growth by the latter part of 2010, when they can leverage the Manila site to further increase their revenue, which was recorded at around US$5 billion in 2009.

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By John Mark V. Tuazon
Computerworld Philippines
February 10, 2010

The creative process outsourcing industry in the Philippines is making inroads since its inception a few decades ago, with more foreign companies outsourcing larger and more relevant parts of projects to Filipino animators and game developers, local groups claimed during the e-Services Global Sourcing Conference and Exhibition Tuesday.

“We are now on the higher end of the production side,” said Marie Grace Dimaranan, board member of the Animation Council of the Philippines (ACPI), a non-government institution promoting the growth of the local animation industry.

Dimaranan explained that when animation outsourcing began in the Philippines, foreign clients would only outsource the main production part of their projects. “Now, we are also into development of original content in animation, as well as conceptualizing designs in the projects that we do,” she added.

The same positive development can be seen in the local game development industry, which is starting to make inroads in developing popular games made for the international market. “We don’t just follow orders from clients anymore. Now, they allow us the liberty to choose the design and style fit for their projects,” said Ranulf Goss, president, Game Development Association of the Philippines (GDAP).

Dimaranan attributes this surge in foreign clients letting Filipino animators and game developers handle more complicated tasks to the sophistication of the local workers’ skills sets. “We’re a lot more competent now, especially because we have been exposed to different processes in animation,” she remarked.

Goss, on the other hand, said global game companies have proven that Filipino talent is worth taking the risk for. “At the start, they would test you first, and as it becomes good, bigger phases will follow,” he quipped.

Despite renewed trust in the local CPO industry, the two local groups say there are still a lot of ground to be covered in terms of filling manpower and skills to answer to demand in animation and game development.

For one, Dimaranan said the industry remains short of people to do the tasks. “And not just manpower, but skilled individuals at that,” she emphasized. In closing the skills gap, Dimaranan said ACPI is working closely with universities in order to make sure that graduates are fit to work in the industry. “We’re continually helping in curriculum development,” she added.

In his welcome speech during the opening of the two-day convention on global sourcing, CICT (Commission on Information and Communications Technology) secretary Ray Anthony Roxas-Chua pointed out that the government is prioritizing talent development in the industry through programs offered by CHED (Commission on Higher Education) and TESDA (Technical Education and Skills Development Authority).

Still, the local outsourcing industry is comprised largely by contact center and back-office providers, overshadowing other service vendors in the country. Nevertheless, Roxas-Chua said in previous interviews that the CICT is pushing for the uplifting of the CPO industry, which he said raises the level of the Philippines in the global value chain, pushing the envelope on competition further.

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By Tom S. Noda
Computerworld Philippines
February 8, 2010

There is nowhere else to go but up for the Philippines’ business process outsourcing (BPO) industry which is expected to beat all its record figures, whether in terms of workers, infrastructure, and revenues which is pegged to exceed US$9 billion this year.

President Gloria Macapagal-Arroyo disclosed the prediction at this morning’s official opening of the 10th e-Services Global Sourcing Conference and Exhibition at the SMX Convention Center in Pasay City.

“From scratch, with only 2,000 workers and US$24 million in revenues in year 2000, [the Philippine BPO industry] is now a global powerhouse. From almost half a million workers last year, it is expected to be 600,000 this year. And from more than US$7 billion revenues last year, it is expected to exceed at US$9 billion this year,” Arroyo said during her keynote address.

The president reported that about two-thirds of all foreign delegates present in the e-Services event came from New York City. Several of the foreign delegates include outsourcing executives from Australia and Japan, among others.

Arroyo claimed to have achieved already her administration’s vision for the ICT sector that was set 10 years ago–and that is to spur future economic development and create wealth by developing labor intensive and skills intensive service sectors such as the ICT. “Today, nine years later, we did it,” she exclaimed.

INCENTIVE STRATEGY
With only five months left in her term as president, Arroyo gave an unsolicited advice to her would-be successor on how to improve further or, at least, maintain the development of the multi-billion-dollar ICT-BPO industry.

“The ICT sector should be guided. There should be minimal government interference and more of government encouragement. Example, for call centers, you shouldn’t force the investors to specialize in build up management. Instead, give incentives in the development of ICT parks  assist investors in identifying promising provincial sites now known as Cyber Corridor, and to build more transport facilities to these new sites in the provinces,” Arroyo said.

The Cyber Corridor is composed of the country’s so called 10 “next wave cities” being endorsed as the best new ICT destinations, namely: Metro Laguna; Metro Cavite; Metro Pampanga; Iloilo; Davao; Bacolod; Metro Bulacan; Central Bulacan; Cagayan de Oro; and Lipa.

SMART POLICIES
The president shared that a “smart policy” approach was applied for the BPO industry, in which three areas were given focus, namely the development of physical infrastructure, having appropriate legal and business environment framework, and the development of human capital.

In terms of physical infrastructure, the president said broadband services have been rolled out in most cities in the country. She added that the cost of international calls went down from 40 cents a minute to 2 cents with the use of Voice over Internet Protocol (VoIP) and that the number of Internet users has jumped from only three million in year 2000 to more than 24 million today.

“And so that no Taiwan tremor or tsunami can cut off our cyber services from their global clients, we encouraged the major mobile telecomunications companies to invest billions in redundancy connections,” she told her audience.

For having the appropriate legal and business environment framework, Arroyo cited the creation of the Commission on ICT (CICT), headed by Secretary Ray Anthony Roxas-Chua III, with the philosophy that the ICT sector should be guided by the market with minimal government interference but more of government encouragement.

She said that besides call centers, the market is moving towards the higher value segments of the offshoring industry such as the non-voice business processes, software development, engineering design, game development, animation, and knowledge process outsourcing.

“The highest IT value in the world can be found right here in the Philippines, the best knowledge services,” she said. “It is the world leader in terms of financial services and its technology workflow development.”

And as to her smart policy on human capital development, the president revealed that she intensified the implementation of various workforce programs for the Philippines to increase its profit share in the global offshoring and outsourcing services market. Among these was to help college graduates and skilled people in obtaining jobs in the ICT sector as well as educating the young on the use of computers.

“More than 5,000 of our 6,500 public high schools now have computer laboratories and almost 4,000 of them are connected to the Internet. In technical education and skills training, we invested Php46 billion or about US$700 million,” she said. “That is three times as much of the combined budgets of the three previous administrations. More than Php1 billion of this investment goes to BPO scholarships. And with this amount, the larger share goes to the skills training program for near-hires supervised by the Business Processing Association of the Philippines (BPA/P) which is now offering programs to close the voice [services] divide.”

With the local BPO market now pegged at US$7.2 billion, analyst group Everest Research has put the Philippines on the 3rd spot in the total global BPO market breakdown in terms of estimated revenues for 2008. The country was also named by the UK’s National Outsourcing Association as the Best Offshoring Destination of the Year for 2007 and most recently in 2009. Such accolades, according to organizers of e-Services, serve to prop the industry towards attaining its target of 10% global market share for 2010.

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accAccenture senior executives recently shared their unique insights on human resources (HR) management at the 46th PMAP (People Management Association of the Philippines) Annual Conference. Benedict Hernandez (in photo), Accenture’s new BPO Service Delivery Operations Lead in the Philippines, discussed the Pinoy Generation Y (those 21-29 years old) and its role in propelling the growth of the local outsourcing sector. Hernandez, who is also president of the Contact Center Association of the Philippines (CCAP), said that about 16 million young Gen Y Filipinos comprise the majority of today’s workforce, and, today and especially in the future. “Companies must think of new ways to marry time-tested values with Gen Y thinking as a way to engage and manage this increasingly growing and influential employee base.”

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Tech Knows No Boundaries

By Fei Lumbania on January 31, 2010

By John Mark V. Tuazon

He may not be fortunate enough to have graduated with a university degree in IT, but for Glenn Ganuelas, nothing too constricting as a formal IT education could stop him from pursuing a bountiful and fulfilling career in the field of Information Technology. Having graduated with a Hotel & Restaurant Administration degree from the University of the Philippines, a professional IT career seemed like a far cry from what he was trained to do in college.

“But I got hooked into the world of PCs and Data communications because of my brother back when 128kb and 300 bps modems were still high tech. I used to log on regularly to the online BBS (bulletin board services) and just search for free downloads. This developed a passion in me for everything computerrelated,” Ganuelas shares. Because he was able to experience the joy of IT, Ganuelas says he leveraged this enthusiasm for a possible career in the field of technology. “I translated [my passion] into a career in IT because I am doing something I don’t consider to be work, but merely pursuing a hobby that pays,” he relates. But before setting off on his quest, Ganuelas trained with IBM on scholarship in 1986 to get a formal feel of the world he’s slowly trying to conquer. Slowly, he climbed up the corporate ladder at San Miguel Corporation (SMC), starting off as an Operations analyst in 1987 to being the Network Manager of its Corporate Telecommunications division until 1998. After his decade-long stint at SMC, he jumped aboard the ship of Sea-Land Asia Administrative Services as Manager of Technology Services in Asia, where he says he “learned to deal with diverse personalities and cultures, having 12 countries in Asia under [his] responsibility.” His out-of-the-box and no-boundaries philosophy rubbed off on all his colleagues, especially when they were trying to pursue new projects.

“Challenges in IT in the many organizations I was privileged to be a part of have always provided opportunities to execute out-of-the-box solutions that can be used as examples for new teams I work with,” he narrates. “The reactions are, more often than not, ‘That’s simple enough!

Why didn’t I think of that?’” This impassioned enthusiasm endeared Ganuelas especially to his mentors, who commended him for his “attitude in accepting new challenges with enthusiasm, the ability to give bad news first, and the willingness to admit that I need help,” he points out. This further propelled him to other IT companies where he landed several top posts, most prominent of which is his stint in the IT division of BPO firm Accenture, where he set up the program for the first Accenture call center in the Philippines. Yet even with all these milestones, Ganuelas found his most fulfilling career venture outside of the IT world.

“I believe the one position that shaped my IT career was a non-IT position I held as a shift manager in a Jollibee store in 1986. The position I held taught me the basics of customer focus, service above self, and the sense of urgency I continue to carry with me as my career in IT developed,” he gladly shares. As if by some twist of fate, Ganuelas eventually found himself back to his roots, as he now serves as the head of infrastructure of the corporate information management section of Jollibee Food Corporation.

As a successful IT professional and a fulfilled individual, Ganuelas sees the value of looking outside the box and breaking boundaries to fulfill one’s dreams, even as he looks ahead and gaze at the future before him. “I’ve long wanted to be an entrepreneur, and channel some of the profit from the business to bring computers and the Internet to every barangay in the Philippines.”

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Computerworld Philippines Staff
January 29, 2010

Emerging markets that have weathered the financial storm of 2009 are posing a threat on the economies of developed countries, changing the rules by which the globalization game is played, a survey by BPO firm Accenture found recently.

Because of a robust domestic market, competitive cost structures and low price points for services, emerging markets fared way better than mature economies in the wake of the global financial crisis, the survey added.

This is posing new challenges to companies from developed markets, who are now pressed to adapt to the more efficient, agile, and competitive business environment.

The survey of 400 global business leaders revealed that top executives are not taking this lightly, with 88% of the respondents admitting to lack of strategic planning in preparation for the new business environment, and 41% saying the stellar growth of emerging markets will impact their businesses in the next five years.

“Together, these forces are accelerating the need for companies to master five competitive and interdependent dimensions of business: new consumers, talent, innovation, capital, and resources,” said Mark Foster, Accenture’s group chief executive, Global Markets and Management Consulting. “Our research shows that high performers in both developed and emerging markets are looking to leverage information technology with a certainty and pace that will give them the flexibility to adapt their business models and stay ahead of the competition as new economic circumstances arise.”

The swift economic power shifts among firms, consumers, and national economies brings in more stakeholders in the ecosystem that in turn drives competition, the survey explained. “The effective use of new technologies and strategies can help companies address the new dynamics of globalization,” it added.

“Responding to the newly complex and competitive ecosystem will require businesses to re-evaluate the roles they have played and the sources of value that they have followed traditionally,” Foster said.  “However, organizations also have a great opportunity to harness these new market forces to their advantage to optimize, extend and transform their business models.” — John Mark V. Tuazon

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By John Mark V. Tuazon
Computerworld Philippines
January 22, 2010

More companies are betting their budgets on outsourcing their legal processes to Asian providers—particularly Sri Lanka and the Philippines—with 20% of the global market choosing Asia Pacific as prime destinations, a survey on global outsourcing revealed recently.

The 2009 ORN Service Provider Report conducted by Pricewaterhousecoopers also found that software development, IT services, and Finance & Accounting service providers are also poised to expand their services in these areas in the next 18 to 36 months.

Due to the recent economic crisis, the research house said outsourcing providers are competing for a larger share of the market, and are on a bid to take the crown from current outsourcing destination of choice, India.

“The emergence of service providers in emerging markets has transformed the competition into a global race for market share,” explained Judith Lopez, chairman and senior partner, Pricewaterhousecoopers Philippines, during the pre-event news conference of the 10th Global Sourcing Conference and Exhibition.

During the conference, Lopez said emerging markets are attracting investors due to “low wages, high competency, encouragement of foreign investment, and capability-building by new entrants” which raise the bar of outsourcing, pitting them against current industry leaders.

The study says more than 80% of LPO service providers are planning to expand the scale of their operations, while 11% are new providers entering the market. India and other Asia Pacific countries, including the Philippines, also form part of the growing destinations for legal services, at 87% and 13%, respectively.

The Dragon Threat
Yet aside from emerging markets, the study said India faces stiff competition with the rousing giant in China, as its government designates 20 cities as outsourcing hubs that attract more international investment. “The Chinese government has provided investors with tax breaks, labor hour systems, and employment subsidies to raise the cities’ attractiveness,” it added.

Locally, the Philippine government has declared the outsourcing industry a priority industry, backing it with policies to boost foreign investment, the study said, adding that continued government support is yanking India out of its foothold as the only outsourcing hotspot.

Late last year, the local contact center association predicted a continued 17% industry growth rate for 2010, bolstered by around 45,000 additional manpower added to the current labor pool, as revenues grow by 21%, signaling the slow end of the impacts of the global financial crisis.

“For the coming year, the [local] BPO industry projects around US$11 to 13 billion in revenues; 650,000 to 900,000 new jobs; and 10% of the global market share,” claimed Peter Favila, secretary, Department of Trade and Industry (DTI), in a statement during the conference read by DTI undersecretary Elmer Hernandez during the e-Services launch.

The largest ICT/BPO event in the Philippines currently on its decade-long run, e-Services serves as the venue for suppliers, providers, and buyers in the field to meet, network, and learn from each other through various organized events led by the Center for International Trade Expositions and Missions (CITEM). The e-Services conference will be held on February 8 and 9 this year at the SMX Convention Center.

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By Tom S. Noda
Computerworld Philippines
January 19, 2010

Officials of the Commission on ICT (CICT) are literally on a last hurrah for the creation of the Department of ICT (CICT) as they plan to push for the bill’s passage in the Senate until its last session day this year before the May elections.

In an interview with Computerworld Philippines, CICT chief Ray Anthony Roxas-Chua III said he plans to be in the Senate all throughout the eight session days remaining of the legislative calendar.

“I plan to be there every session until the last day, because this is our last chance to get ICT bills passed,” Chua said.

The Senate’s regular sessions resumed on Jan. 18 and it is scheduled to adjourn on Feb. 5 which is the official start of the campaign period for national candidates.

Chua revealed all the other CICT commissioners will also be in the Senate and their role will be to provide assistance to Sen. Edgardo Angara, sponsor of the Bill 2546, mandating DICT’s creation.

The House of Representatives already passed HB 4300 for the same purpose in 2008.

“We’ll be there in the Senate to respond to interpellations,” Chua added.

If approved, DICT will take over the Commission on Information and Communication Technology, the National Computer Center, Telecommunications Office and the Communications Planning Service division. It will also take over the communications-related functions of the Department of Transportation and Communications.

The DICT clamor, now almost 8-years-old, recently earned support from various government and private organizations including foreign chamber groups. These groups are: American, Australian-New Zealand, Canadian, European, Japanese and Korean business chambers; the Philippine Association of Multinational Companies Regional Headquarters, Inc.; Management Association of the Philippines; Philippine Chamber of Commerce and Industry; Business Processing Association of the Philippines; Contact Centers Association of the Philippines; and National ICT Confederation of the Philippines.

For NICP, the group believes DICT will propel social and economic growth, citing that the business process outsourcing (BPO) sector alone contributed export revenues worth US $6 billion in 2008 and created about 400,000 jobs despite the financial crisis.

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By Computerworld Philippines Staff
January 19, 2010

Year 2010 marks the 10th year of the local business processing outsourcing (BPO) industry in the Philippines and TeleDevelopment Services announced to tackle issues concerning this trade on its 4th Annual Call Center and BPO Training Convention on March 11 and 12.

With the theme “The Vision of the Next Decade: Conquering Uncharted Ground,” TeleDevelopment’s event will be held at the Makati Shangri-La Hotel to discuss about developments on talent, technology, and infrastructure for the industry’s new challenges in the next decade.

The company said although the massive industry growth was spurred by voice services, high-value added complex services known as knowledge process outsourcing (KPO) are predicted as the next revenue earners in the outsourcing industry.

Over the last 10 years, the Philippine business process outsourcing (BPO) established itself as a major mover in the global BPO landscape. As the fastest-growing segment of the Philippine economy, it is expected to earn at least $11 billion and employ 1 million people by the end of 2010, noted TeleDevelopment.

Major speakers from industry leaders and aligned sectors have been invited for the event to share their views and expertise on the new challenges BPOs will face, as well as the next trends and opportunities that will emerge.

Invited speakers include Celeste Ilagan, former board of investments executive director and now AVP for marketing and external affairs of Sutherland Global Services representing the industry; Vincent Fabella, president of Jose Rizal University and Philippine Association of Collegiate Schools of Business, representing the academe; and John Philip Orbeta, vice president for human resources of Ayala Corporation, representing talent and leadership management.

About 250 delegates from major industry service providers and their clients are also expected to attend the conference and share their insights on the outsourcing industry and its future.

“2010 is a big year for the BPO industry as it signifies the 10th year anniversary of call centers in the country. As we approach this milestone, it is necessary to evaluate and carefully map our plans for the continued development of the industry. We look forward to an interesting and interactive conference that will help resolve training challenges for a more specialized workforce competent in addressing the increasing demand for high-value and value-added services,” said Jon Kaplan, president of TDS.

The 4th Annual Call Center and BPO Training Convention also marks the launch of the first Annual BPO Training Excellence Awards, organized in cooperation with the Philippine Society for Training and Development (PSTD). The awards aim to recognize organizations and individuals that have exemplified distinction in the field of BPO training. – Tom S. Noda 

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By Computerworld Philippines Staff
January 18, 2010

With only seven weeks left before the May 10, 2010 national elections, 33 regional ICT councils in the Philippines joined forces to rally behind the creation of a Department of ICT (DICT) whose bill is still pending in the Senate.

Members of the National ICT Confederation of the Philippines (NICP) made the call on Monday shortly after foreign business groups last Jan. 7 urged the Senate to pass the DICT Bill 2546 which is yet to gain plenary approval.

NICP said a DICT is needed based on the crucial role that ICT plays in the Philippine economy and called on the Senate to approve the bill before the elections. It is a development that has long been clamored for in the past seven years.

NICP chair and Bacolod councilor Jocelle Batapa-Sigue said the NICP came out with a position paper last year under the term of its former chair, George Sorio of the Metro Clark ICT Council (MCICTC) to call for the immediate approval of Senate Bill 2546. The House of Representatives already passed HB 4300 for the same purpose in 2008.

“Any further delay could have a dampening effect on ICT industry’s future growth in the Philippines, especially during the ongoing global recession,” NICP said in a statement. “Positive Senate action will ensure the country’s continued competitive edge in the global market place, and provide social and economic opportunities for the Filipino people.”

NICP believes the creation of the DICT will propel social and economic growth, citing that the business process outsourcing (BPO) sector alone contributed export revenues worth US $6 billion in 2008 and created about 400,000 job, this, despite the raging economic turmoil that hit the global economy that year.

And as the country strives to maintain major strategic importance in the Association of South East Asian Nations (ASEAN) as well as in the global stage, NICP said the participation of stakeholders in the regions are a crucial element in ensuring ICT’S competitiveness and sustaining the fight against poverty in general.

Batapa-Sigue, also chairs the Bacolod-Negros Federation for Information and Communications Technology (BNEFIT), added that the creation of the DICT will finally create a permanent entity that cannot be easily modified without the passage of another bill. It is a permanence advocated by the various ICT councils and organizations in pursuit of a sustained support ICT development in the Philippines. 

She explained that DICT’s major task would be to increase awareness of the benefits of ICT in order to bridge the digital divide, increase mobile penetration rates, proliferation of internet cafes, accessibility to broadband connectivity, enhancing connectivity in underserved areas, empowerment of the marginalized sectors, creation of homegrown web content, among others.

“It is time that the clamor for a DICT is heard by the highest law-making bodies of this country. Other ASEAN governments heeded the call for an ICT Department or Ministry, and are now closing the gap on our hard-earned and much-valued ICT competitiveness,” Batapa-Sigue said.

Last Jan. 7, leaders of foreign business organizations composed of the American, Australian-New Zealand, Canadian, European, Japanese and Korean business chambers and the Philippine Association of Multinational Companies Regional Headquarters, Inc., as well as leaders of Philippine business and industry groups: the Management Association of the Philippines, the Philippine Chamber of Commerce and Industry, the Business Processing Association of the Philippines and the Contact Centers Association of the Philippines, signed a letter appealing for the DICT bill approval that was sent to Senate President Juan Ponce Enrile and Senate committee on science and technology chairman Edgardo Angara.  – Tom S. Noda

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By Stephanie Overby
CIO.com
December 9, 2009

FRAMINGHAM - Outsourcing prices dropped overall in 2009, and industry watchers expect the downward trend to continue next year. It’s not just the global economic slowdown that’s sending IT service prices south, it is also the increased use of offshoring, pricing pressure from customers, and a reduction in vendors’ services.

“We see more companies willing to outsource offshore to take advantage of global labor arbitrage opportunities than in the past,” says Ben Trowbridge, CEO of outsourcing advisor Alsbridge, which owns price benchmarking firm ProBenchmark. “One of the issues we see is that lower prices can also be driven by disaggregated services.” For example, lower desktop support prices might be due to a vendor delivering remote infrastructure management support. But they might just as well be the result of a reduced scope of services that leaves the client with a lower level of service or possibly having to retain other costs–which negates or reduces the customer’s potential savings, Trowbridge adds.

Mark Toon, CEO of outsourcing consultancy EquaTerra, says that buyers of outsourcing services have remained focused on cost cutting and avoiding future investment throughout 2009. Toon believes that IT services customers will continue to focus on price through 2010. But, that “price pressure will be tempered by the need to ensure overall deal parameters do not jeopardize success,” adds Stan Lepeak, EquaTerra’s head of global research.

Should the economy show strong signs of life in the new year, some say it won’t be a buyers’ market at all. “Much depends on whether or not the apparent signs of economic recovery prove true,” says Chris Kalnik, partner and managing director of financial analysis for sourcing advisor TPI. “If the economy strengthens, TPI believes that the service providers will attempt to recoup some of the price concessions that they have made over the past year.”

RIM’s Effect on IT Outsourcing Prices

On the infrastructure side of the IT outsourcing house, market share will continue to shift toward remote delivery of services where possible , and offshore players will drive desktop and network service prices to new lows. As remote infrastructure providers improve their capabilities, more infrastructure outsourcing customers may look offshore for savings, while the broader global economic slowdown will continue the pressure to reduce costs in the Americas, says Trowbridge. “These two trends are working together to drive overall market prices lower,” he adds.

But those cost savings may be short lived and slight. What’s more, RIM isn’t for everyone. “Maturity in this market has led organizations to identify the processes that are better delivered locally and to select service providers [based] on flexibility and customer intimacy as well as price,” notes Paul Cornelisse, managing director of Equaterra’s information technology advisory.

Overall, most infrastructure services–desktop, midrange and network services–will decline at single-digit percentages in 2010, according to Compass America. That excludes storage costs, which will continue to decline another 25 percent in the coming year.

Of course, the majority of cost savings that can be achieved by offshoring infrastructure support are labor-based. “Organizations should keep in mind, that if assets are included in their vendor’s pricing, offshoring is unlikely to have a significant impact because the hardware and software that makes up the majority of the price is unaffected by the locale of support personnel,” says Bob Mathers, senior consultant with Compass America.

IT Outsourcing Prices and Merger Mania

The biggest news in the outsourcing industry in 2009 was vendor consolidation. HP completed its integration of EDS, and new mergers were announced between Dell and Perot Systems and Xerox and ACS, among others.

So while increased offshoring, economic malaise, and customer focus on cost-cutting points to price drops, any further mergers could–in theory at least–foretell another story.

“Recent consolidation may portend upward price pressure, especially if other providers follow suit,” says Trowbridge. Decreased competition rarely leads to lower prices. But, notes Trowbridge, offshore vendors continued inroads into the marketplace could serve to keep prices in check: “We anticipate that this upward pressure will be more than offset by global delivery capabilities in the marketplace. It’s an area that will require reassessment as events shake out in 2010.

New IT Outsourcing Pricing Models

Amid continued economic uncertainty, outsourcing buyers will seek out pricing flexibility in the new year. “We see increased emphasis on on-demand transactional-based pricing predominantly because companies can’t predict what the rebound will look like,” says Bob Cecil, head of EquaTerra’s business and financial process practice. “We are also seeing more outcome-based pricing.”

Cloud computing will also attract more buyers. Dave Brown, head of EquaTerra’s financial architecture practice, says cloud service providers and customers will begin to better understand cloud computing pricing and software as a service pricing in 2010, and that will drive organizations to adopt the new cloud delivery model.

“The downside,” says Brown, “is that they are immature offerings [relative] to outsourcing transactions and will go through various iterations before the right pricing structure emerges.”

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By Tom S. Noda
Computerworld Philippines
November 26, 2009

A top executive of the Business Processing Association Philippines (BPA/P) is asking media organizations to practice “balanced reporting” of events that occur in the Philippines in order for the country to get its deserved business opportunities in the multi-billion dollar outsourcing industry. 

In an exclusive interview with Computerworld Philippines, Jonathan Defensor De Luzuriaga, executive director for BPA/P’s industry affairs, said the Philippines is not getting what it deserves in the call center and BPO space because of the negative perceptions that float around in some of the geographies the Philippines is rendering IT and BPO services.

With the reported election-related killings in Maguindanao province in Mindanao last Monday dubbed “Maguindanao Massacre” – De Luzuriaga appealed to the media to do a fair and balanced reporting on the issue by at least giving some references.

“We need to isolate certain issues in terms of branding and the reputation of a country. When something happens in the southern part of the Philippines, let’s not construe that as the entire Philippines, because nobody really gives reference to what happens to Boston and New York. But somehow, when something happens in certain parts of the Philippines, it is always taken that the country is in this turmoil or challenge,” De Luzuriaga said.

Although he did not identify any media organization, De Luzuriaga said a number of news organizations, both foreign and local, reported the Maguindanao case as a form of “branding” the Philippines as an unsafe and chaotic nation.

“Let’s not generalized what the country has to offer and what the talent here is all about in terms of certain isolated events,” De Luzuriaga said. “Basically, what I’m asking for is what everybody is asking for – balanced reporting.”

President Gloria Macapagal-Arroyo declared a national day of mourning on Wednesday for the victims of the Maguindanao massacre, which involved the killing of more than 50 civilians, wherein some are lawyers and media reporters.

According to reports, the victims, led by the wife of Buluan town vice mayor Ishmail Mangudadatu, went on a convoy going to the provincial capitol in Shariff Aguak to file Mangudadatu’s certificate of candidacy for governor, when some 100 armed men blocked their path and killed them. Mangudatu’s wife was planning to file the certificate of candidacy for his behalf, reports said.

“It is really sad the Maguindanao massacre happened,” De Luzuriaga said, noting the incident could have affected once more the Philippines’ ranking in terms of “risk perception” among global investors. “Safety has always been a big issue.”

Prior to the Maguindanao massacre, De Luzuriaga shared figures that from the scale of 0 to 10, the latter being the worst, the Philippines’ risk ranking has improved significantly last year – that from the scale of 6 in 2007 to 2008, it went down to about 5.5 this year.

“There was study done by an advertising executive, who said that when you google about the Philippines online, you would almost always come across with the image of Imelda Marcos. And that’s the sad truth. We are equated with personalities or events that have nothing to do with what the Philippines can offer,” he said. “We are facing a challenge of promoting the country based on its capability.”

Yet De Luzuriaga said when it comes to feasibility or business environment in the Philippines, the country’s more than 600 plus entities today, most of them multinationals, can’t be wrong in choosing the Philippines as destination.

 “I still believe we are still the best kept secret in Asia in terms of outsourcing,” he said.

BPA/P reported the country today has 450,000 employees in the call center and BPO industry now pegged at US$13 billion, and they expect the employment to reach less than one million by 2010.

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By Tom S. Noda
Computerworld Philippines
November 10, 2009

CLARK FIELD, Pampanga – Appearing to be celebrating over an injury, the Philippine private sector is happy about the IT job shortages taking place around the world, seeing this as a great business opportunity.

According to Jonathan Rosenberg, CEO and chairman of Cyber City TeleServices, the world is already experiencing IT job shortages and described this as “a great opportunity!!!”

“It is expected that in the next 10 years IT jobs growth will out-surpass any other Job in the market place world wide,” he said. 

Speaking at the recent Convergence 2009 BPO-Call Center exhibit held in Fontana Hotel in Pampanga, Rosenberg reported the Philippines has not even scraped the beginning of its IT-based BPO (business process outsourcing) services growth potential – pegged as a multi-billion dollar industry with over 500,000 jobs at present.

Rosenberg said IT jobs are in constant demand growth, noting he Global BPO market is expected to reach US$259 billion, of which 28%, namely US$73 billion, is going to be outsourced.

“Cost considerations will result in increased outsourcing thus offshore outsourcing will offer additional cost saving opportunities,” he noted.

The BPO executive shared the Top 10 opportunities published worldwide in the IT sector on a global basis where dramatic shortages are expected world wide, and they are: machine learning, mobilizing applications, wireless networking, human-computer interface, project management, general networking skills, network convergence technicians, open-source programming, business intelligence systems, and embedded security.

However, on the BPO space, Rosenberg cited an IBM survey wherein the Philippines scored in the Top 4 worldwide with India and China. The said survey was testing a list of ingredients including language skills, telecommunication, flexibility, local potential for recruitment of manpower, general business environment, infrastructure, among others.

“The recent world economic recession is not an obstacle but rather a differentiating opportunity, delivering quality services at efficient prices with high quality IT personnel, thus differentiating our selves from other competition elements around the globe whereby the Philippines sector continues to be known as the center stage for high quality platform,” Rosenberg noted.

Yet the local private sector, Rosenberg said, realizes that the road to success for the nation does not only depend on the highway infrastructure and the telecom infrastructure, but more importantly on its education infrastructure.

“The investment in our young students is an investment that has an immediate measurable return to the Philippines economy as evidenced by our macro economic results in the past years,” he said. “We therefore look forward for the continued funding of the education infrastructure of the nation.”

Rosenberg added with global competition at hand, the private sector shall continue to fuel the IT and BPO sector growth together with government and the local government units (LGUs). “We do not plan to miss this continued opportunity.”

Among the priority plans of the private sector, he said, is to strengthen further the high quality English language of Filipinos at the early education stages.

Convergence 2009 is an ICT road show initiative led by the government’s Commission on ICT (CICT) supported by the Business Processing Association of the Philippines (BPA/P) and the Coordinating Council Of Private Education Associations (COCOPEA).

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Computerworld Philippines Staff
November 4, 2009

IT operations management company Cybernet-SlashSupport (CSS) is set to ramp up its existing support facility in the Philippines.

From its current 300-seat center in the Manila facility, CSS said it plans to expand its operations to 1000-seats by end of 2009. The company was set up in the country last March 2009. Its fully operational center provides multi-lingual customer services, retention services, outbound selling, technology and other business process outsourcing (BPO) services. The firm’s main headquarters is in San Jose, California, USA.

Nick Sharma, chief executive officer of CSS, said the company will hire 600 people for its Manila facility before the year ends.

“Our focus has always been on implementing practices that will enable us to enhance our clients’ revenue streams. Philippines, with its inherent advantages of friendly government policies, robust infrastructure and high-quality talent, enables us in our objective to optimize our clients’ investmentsm” Sharma said.

Sharma said CSS’s One-World Delivery Model provides customers with the right blend of expertise for the lowest possible cost, thereby assuring OPEX Optimization for its client organizations and its proven Service Assurance of 100% Customer Referenceability.

CSS reported it is witnessing “immense response” to its online certification program that offers world-class training in networking.

With a 100% referenceable customer base, CSS has built long term relationships with 80 plus clients in the last 10 years across India, the US, Poland and the Philippines, offering the advantage of cost beneficial off-shoring, while maintaining high customer service standards.

CSS’s consumer services business unit focuses on customer support, retention, sales and other BPO services for industry verticals including consumer electronics, travel, retail, hospitality, financial services, and also education. – Tom S. Noda

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By Computerworld Philippines Staff
August 24, 2009

Convergys Corp. announced that it is nearing its target of 20,000 employees this year 2009 and recently unveiled its latest contact center facility located in San Lazaro, Manila, which is the company’s 5th major site expansion in the Philippines since May 2008.

The company’s other new sites now include Cebu Asiatown i3, UP TechnoHub, Nuvali Evozone, and Glorietta 5. The latest one in San Lazaro can hold nearly 740 employees throughout approximately 47,000 square feet of workspace. It is located in an integrated leisure and business community near Manila’s University Belt.

convergys-glorietta-5Yet Convergys’ Glorietta 5 facility, situated among one of the largest shopping districts in the country and in the midst of the premier business district of Makati City, encompasses over 17,000 square meters and can hold about 2,700 employees.

Marife Zamora, vice president and country manager of Convergys Philippines, reported the company’s headcount in the country now tops 17,000, with 3,000 jobs added since the beginning of 2009.

“Convergys has reached a major milestone in its Philippines operations,” Zamora said. “With more than 17,000 individuals working for Convergys in the Philippines on behalf of our international array of blue chip clients, we are further distinguishing ourselves as the employer of choice.convergys-san-lazaro I celebrate the opening of this new (San Lazaro) facility with the thousands of devoted Convergys employees and look forward to reaching our goal of 20,000 employees in the Philippines at the end of this year.”

Andrea Ayers, president of Convergys’ customer management, said Convergys’ clients continue to demand the experience and expertise so manifestly present among its Filipino employees to drive their customer service operations.

“We have seen tremendous growth in the Philippines due to the support we receive from all levels of government and because of the quality and commitment of our employees,” she said.

Only recently, Convergys won the “Outstanding Exporter” and “Outstanding Employer” awards (Large Enterprise Category) at the 2009 Philippine Economic Zone Authority (PEZA) Investors’ Appreciation Day. The company likewise bagged the “BPO Employer of the Year” award at the 2009 International ICT Awards.

President Gloria Macapagal-Arroyo, in her recent state-of-the-nation-address (SONA), cited that the business process outsourcing (BPO) industry in the Philippines remains to be “resilient” with ongoing global economic crisis. She said the BPO phenomenon eloquently describes the Filipino’s competitiveness and productivity. – Tom S. Noda

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By John Mark V. Tuazon
Computerworld Philippines
August 19, 2009

Australian IT solutions provider Call Design has set up shop in Manila, aiming to establish the metro as one of the operations hub that will drive its global operations, officials announced Tuesday.

Miles Stanton, managing director of Call Design, touted Manila as an ideal services hub for the company for its “high quality labor force who are intelligent and speaks good English”—an ideal mix for BPO servicing, which is Call Design’s target market.

“What we’re really doing here is establishing a Center of Excellence for workforce management,” Stanton said. “We will enable the transfer of knowledge from our home base in Australia to the Philippines.”
Stanton added that they are bringing their brand of business-focused outcomes to the country, seeing to attract large BPOs to invest in the Philippines and adding value to the domestic market.

One of its recent domestic wins, a multimillion-peso workforce management solution deal with global BPO firm Transcom, proves Call Design’s expertise in workforce management, Stanton claims. The deal, which utilizes a pay-as-you-use model that offers scalability, is the first for Transcom.

“This is the first time our company is investing in a tool like this, because we have been using internal applications for over 10 years,” said Siva Subramaniam, country manager, Transcom. “We see it as a tool that will support growth and help optimize cost for end clients by delivering more for less.”

As part of the contract, Call Design will provide Transcom with Aspect’s eWorkforce Management solution in a hosted environment on a per-agent-per-month payment scheme. Aside from that, the vendor will provide consulting work and training and development of employees for the use of the product.

“Aspect’s software will help Transcom optimize their workforce by having less people do the same number of jobs and increasing the quality of work output by every individual,” Stanton said, adding that investments like this are not only beneficial to their company, but to the Philippine economy as well.

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