Posts Tagged ‘RP’

India-based BPO expands RP operations

September 18th, 2010

INDIA-HEADQUARTERED business process outsourcing firm WNS (Holdings) Ltd. is expanding its Philippine operations by adding 300 seats and looking at the establishment of new sites.

WNS Global Services group chief executive Keshav Murugesh said the company’s first Philippine site in Cubao was its fastest growing worldwide, expanding from just 200 employees in 2008 to more than 1,000 employees today.

The country’s huge growth potential, bolstered by the abundance of skilled English-speaking talents and strong government support, prompted the firm to further expand its 1,200-strong workforce, he said.

WNS’ second site within Eastwood City in Quezon City will add another 300 to the company’s personnel base.

Over the next six months, WNS Philippines Inc. chief executive Prabhakar Bisen said the company would be “analyzing the parameters” of choosing possible new sites for further expansion.

“We’re looking at three to four cities, some of them part of the Next Wave Cities,” he said, referring to places identified by the Commission on Information and Communications Technology and the Business Processing Association of the Philippines as the most suitable locations for BPO operations.

Murugesh said the Indian firm spent a significant part of its $20-million capital expenditure budget for the year on the new Philippine site. More investments were programmed for future expansions.

He said the Philippines should eventually account for about 10 percent of WNS’ global head count. The company currently has 22,000 employees in sites located in Costa Rica, India, Romania, Sri Lanka and the United Kingdom.

In the Philippines, he said WNS planned to shift from just traditional call center services to higher-value services such as finance and accounting.

To support this growth, however, he said the government should exert more effort to boost the employability of graduates by honing skills other than just the English language.

“Of course, the government should make more English-speaking [workers] available [to the industry]. But we also want to be provided with more employable people, to have access to the right kind of people,” he said.

Bisen added that proper focus should also be given on training people outside Metro Manila.

“We have to train people who are near-hires. We have to develop people’s skills in Metro Manila and have similar programs in smaller cities [in the provinces],” he said.

Right now, he said the company’s hiring rate was around 10 percent. “I think it’s shameful,” Murugesh said. “We should be able to select all 10 candidates who come to us for employment. They should all be qualified. That’s what I mean about employability.”

Source:http://business.inquirer.net/money/topstories/view/20100917-292878/India-based-BPO-expands-RP-operations

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RP urged to tap Europe outsourcing market

July 26th, 2010

Now that Cebu is fast capitalizing on being among the world’s destinations for global outsourcing and off-shoring (O&O) business, industry stakeholders here are encouraged to continue to taking advantage of the vast European market.

While the list for services that can be outsourced from Europe is “endless,” Cebu and the rest of the Philippines is still unable to fully maximize said market, which is currently being enjoyed by India, according to European Chamber of Commerce and Industry in the Philippines (ECCP) Executive Vice President Henry Schumacher.

“India is doing well in marketing itself as a growth location for European investors. But the Philippines has a huge potential to even grab a bigger share,” he said.

Schumacher urged, “Since Europe is also aggressively looking at opportunities from emerging countries in the East, now is the time for the entire Philippines to explore Europe since it is also the largest business process outsourcing market.”

Among the industries in Europe that can be outsourced to the Philippines are graphic and web design, information technology (IT) and IT-enabled services, global outsourcing like procurement, human resource (HR) administration, and back-office services like accounting and financial services.

Schumacher said that while several European companies have already come to invest in the Philippines, the latter’s lack of knowledge in understanding the European culture requires need for waging a more aggressive campaign when penetrating the foreign market.

“The European culture is not hard to grasp and the ECCP is willing to assist stakeholders here in that aspect,” he said. “If you have a business like a call center which caters to the European market then we can do initial training for employees.”

In order to jumpstart the country’s aim to explore untapped opportunities in Europe, Schumacher advised more visibility in the market including the need for a European “champion,” or someone with influence speaking for the Philippines and the business environment in the country.

Branding, he stressed, is also necessary when capitalizing on the “highly elusive” European market.

“The brand should professionalize Filipinos. We believe that everybody in the world has in one way or another been touched by a Filipino. The Filipinos’ individuality is important to market the Philippines to Europe, we just have to focus on the Filipinos’ capabilities,” said Schumacher.

He bared that the ECCP is currently conducting talks with the Business Process Association of the Philippines (BPAP) to pioneer a committee called “Team Europe” to spearhead an aggressive marketing campaign for the country’s O&O industry. The team will also involve other institutions like the Commission on Information and Communication Technology (CICT), CITEM and a number of individual companies.

Source:http://www.mb.com.ph/articles/268986/rp-urged-tap-europe-outsourcing-market

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IT officials bullish on RP – BSP survey

April 19th, 2010

Officials of different business process outsourcing (BPO) companies operating in the country believe more multinational companies are likely to set up shop in the Philippines, a survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed.

The “survey on information technology and IT-enabled services for 2007 and 2008 conducted by the BSP showed more companies engaged in IT are expected to take advantage of lower costs in cheaper locations, including the Philippines.

“Top officials of different outsourcing companies and associations remained bullish on the prospects of the industry, citing that multinational firms are likely to outsource to cheaper locations like the Philippines to trim down costs,” the survey stated.

The survey showed that the Philippine IT and IT-enabled service industry remained resilient amid the global financial crisis, as shown by the results of the 2007-2008 BSP survey on the industry. 

The total revenue of the industry grew at a rapid double-digit rate of 44.8% to $6.3 billion in 2008 from $4.4 billion in 2007.

“The industry continued to grow at a rapid double-digit rate of 44.8%, although this was slightly lower than the 50.3% growth in 2007,” the BSP added.

IT-enabled services exports rose 51.5% to reach $5.3 billion in 2008 from $3.5 billion in 2007. Export earnings comprised about four-fifths of total industry revenues in 2008 and 2007. All sub-sectors reported that more than 70% of their revenues were sourced from exports, with the animation sub-sector having the highest export-to-revenue ratio of 95.8% in 2008.

Total equity investments in the industry amounted to $2 billion as of end-2008. Of the total amount, about 93.3% or $1.8 billion represented foreign equity participation.

More than half or 54% of the foreign equity investments amounting to $986 million in 2008 and 54.2% amounting to $445 million in 2007 were accounted for by American investors while Japanese investors cornered a 20% stake.

Employment in the IT and IT-enabled services industry jumped 30.8% to reach 355,135 persons in 2008 from the 271,556 employment level in 2007. Likewise, total compensation paid by the industry increased 29.7% to $2.8 billion from $2.1 billion.

The survey covered a total of 648 companies in 2008 from 624 in 2007. Survey results were based on an overall response rate of 59.9% and 55% in 2008 and 2007, respectively. Respondents included companies engaged in the operation of call centers, medical and legal transcription, animation, software development and other BPO activities. 

These companies represented the different IT and IT-enabled service industry associations as well as those registered with the Department of Trade and Industry (DTI)-attached agencies namely, the Philippine Economic Zone Authority (PEZA) and the Board of Investments (BOI).

Source:http://www.abs-cbnnews.com/business/04/19/10/it-officials-bullish-rp-bsp-survey

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RP eyes top BPO ranking

February 6th, 2010

Buoyed by the booming business process outsourcing (BPO) industry, President Macapagal-Arroyo’s economic managers are posing this challenge to her successor: beat India.

The next leader should explore the industry’s potential to grow to $100 billion in 2010 with a view of dislodging India from its top perch, the National Economic Development Authority said yesterday.

“If there’s something that the next administration should stress, I’d say it’s the wave of the present. We’re now No. 2 globally. So let’s aim for No. 1,” said Dennis Arroyo, Neda director for national planning and policy.

In her tour of the country’s “cyber corridor” this week, Ms Arroyo said the country’s BPO industry has become a “powerhouse,” challenging India for supremacy in the global BPO industry.

Its revenues skyrocketed from $0.02 billion in 2000 to $7.3 billion in 2009, behind India’s $9 billion for call centers. It now employs 446,000 people, up from 2,400 in 2000, she said.

To propel the local industry to No. 1, Arroyo advised the next administration to expand the “next wave cities” program by investing in digital infrastructure and human development.

“So far, we have BPO and ICT (information and communication technology) all centered mostly in Metro Manila, Cebu and Davao cities. We should expand the progress to other cities in the Calabarzon area, Bulacan area, the Visayas, and Dumaguete, and other cities in Mindnao,” he said.

By next-wave cities, he is referring to the 10 urban centers from Central Luzon to Mindanao that now host 750 BPO and IT companies.

For starters, the next administration should continue wiring public schools to the Internet, and promote the use of WiMAX, which functions like a wi-fi but covers a larger area, Arroyo said.

“There are now more than 5,000 high schools with computer laboratories, while almost 4,000 are connected to the Net. That should continue,” he said.

Arroyo said legislation creating a Department of Information and Communication Technology to oversee the country’s ICT development should be prioritized by the next administration.

“Any President can just dissolve the commission,” he said, referring to the Commission on Information and Communication Technology. “We should have a permanent DICT.”

Arroyo said there’s a huge potential in the BPO industry that could be explored by the next administration.

He pointed to the “huge gap” between the manpower needed and the number of jobs filled. He said for instance that only 220,000 were filled out of the 350,000 jobs available in call centers; 21,000 out of 75,000 in software; 10,000 out of 32,000 in transcription, and 10,000 out of 25,000 in animation.

“There’s still much room for growth,” Arroyo said when asked if the BPO industry has peaked. “By 2011, we’re looking at $13 billion in revenues, and by 2020, $100 billion in a global industry of $500 billion. That’s one-fifth of the market share.

Source:http://globalnation.inquirer.net/cebudailynews/news/view/20100206-251571/RP-eyes-top-BPO-ranking

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Texas radio search engine Radiotime to outsource software development to RP

January 27th, 2010

A Philippine investment in Texas-based radio search engine Radiotime, currently world’s leader in Internet-based radio search, is tapping Filipino software developers for its web application expansion.

Radiotime.com, an investee company of Philippine-based venture capital ICCP Ventures, is taking advantage of its partnership with ICCP through its outsourcing of software needs to Filipinos.

“We’ve built a lot of software. We’ve done some of these works in the Philippines, and we’re looking forward to do more software here,” said Radiotime Chief Executive Officer Bill Moore in an interview at an Ayala Foundation Innovation Forum.

An entirely entrepreneurial effort eight years ago, Radiotime has become 20 times much larger than its next competitor in the radio search engine business. Among its competitors are BBC and CBS radio. Its revenue comes from the sale of devices, software or hardware as part of the radio listenership service, and from advertising. It enables search of around 60,000 radio stations globally including those in the Philippines. Its market is mainly from North America, and then South America, followed by Asia.

ICCP which has investments in 40 companies put in $1 million into Radio Time for a 30 percent interest some four years ago, according to ICCP Group President William M. Valtos Jr.

“We saw very little technology risk in it. OEM (original equipment manufacturers) clients signified that Radiotime was ahead of its competition. Radiotime is in the best position to be the leader in radio media space,” said Valtos.

Radiotime has actually started acquisition talks with some big radio online businesses such as the US’ CBS. It has signed a contract with Nokia so that Nokia mobile phone users can listen to any radio station they like through Radiotime.

One does not have to be a subscriber to avail of Radiotime’s accelerated search service, but a regular listening service would require one to pay $50 per device. This device may be a software that an iPhone user can download or a physical device that one can plug in if he is using for instance a tabletop radio.

The company is growing at 10 percent per month, and its sales come from licensing agreements with certain companies. On the device, Radiotime has partnerships with companies like Philips or electronic parts manufacturers.

The site enables listeners to connect to radio through devices like TV, mobile phones, portable media players, PC and web-based applications. In order to ensure accurate station listings, it has partnerships with Sonos, Logitech Squeezebox, Cisco Home Audio, and Windows Media Center
ICCP has been able to invest in Radiotime as one of its board of directors has links with companies in Silicon Valley. It also has investments in Silicon Valley-based Marvell Technology which develops and markets integrated circuits, in Level Up!, Ionics Inc., Shopwise, and SiRT Technology which is led by its advisor, Dado Banatao, who is a co-founder of technology startups like S3 and Chips and Technologies.

Source:http://www.mb.com.ph/articles/240529/texas-radio-search-engine-radiotime-outsource-software-development-rp

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