BPOs cautious on expansion due to Trump

MANILA - Some American companies have delayed expansion plans in the Philippines due to caution over the economic policies of US President Donald Trump, the head of a recruitment website said Wednesday.

Expansion projects in Dumaguete, Cebu and Davao have been pushed back to the middle of the year, from the first quarter, said Philip Gioca, country manager of Jobstreet.com.

"They have a wait and see attitude. They are very cautious and still awaiting directions in the American government," Gioca said.

Trump, who assumed office in January, has signalled a more protectionist US, threatening the outsourcing industry, though his recent moves have largely centered on bringing manufacturing jobs back home.

Despite uncertainty over Trump, Jobstreet.com data showed a 20-percent increase in job demand from the BPO sector.

BPO and small and medium enterprises, both expanding in the provinces, have fueled job demand, data showed.

Nearly half, or 44 percent of postings on Jobstreet.com in 2016 are in the provinces, up 16 percent over two years. These are mostly in Cebu, Davao, Iloilo, Bacolod, Pampanga and Batangas.

The government's infrastructure push is helping transform sleepy towns into investment hubs, Gioca said.

"Employees' preference is also always working within their locale," he said.

source: news.abs-cbn.com

BPO sector to hire 100,000 workers yearly until 2022

The country's business process outsourcing sector is expected to grow further in the coming years despite political uncertainties here and abroad.

Industry leaders said the country's education system needs to level up to provide Filipinos with the skills needed to get hired. Jekki Pascual reports. -- ANC Market Edge, November 30, 2016

source: news.abs-cbn.com

BPO sector to gain from Clinton victory: analyst

MANILA - Local property companies that lease out to Business Process Outsourcing (BPO) companies could benefit from a victory by Democratic presidential candidate Hillary Clinton, an analyst said Tuesday.

April Lee Tan, head of research at COL Financial, said there are a few reasons why investors favor Clinton over Republican Donald Trump.

“I think one of the reasons why people believe that Asia will not benefit from a possible Trump victory is his talk against trade between other countries and the US, like he would impose tariffs,” she told ANC's "Market Edge with Cathy Yang."

"Aside from that, he also has plans to impose tariffs on the BPO sector," she added.

Philippine shares are in the green in step with a big jump in US shares overnight.

The Philippine Stock Exchange is playing catch up to a region-wide rally that started when the Federal Bureau of Investigation decided to end its probe into an email scandal involving Clinton. -- With Warren de Guzman, ABS-CBN News

source: www.abs-cbnnews.com

Software giant SAP to set up BPO operations in PH

MANILA, Philippines - Good news for the business process outsourcing (BPO) sector.

SAP, one of the world's largest software companies, says it is expanding its operations here in the Philippines.

On the sidelines of the World Economic Forum in Makati, Adair Fox-Martin, newly appointed president of SAP Asia-Pacific and Japan, said they will establish a small "call center" operation in the country which would open up sales and marketing jobs.

"We will start off with a small nucleus and double it and double it as it continues to grow. Approximately, 50 staff in the first instance," she told ANC.

SAP has set up its human resources department in the Philippines, which caters to all its employees around the world.

The multinational company has been in the country for 15 years. - ANC

source: www.abs-cbnnews.com

1 million BPO employees seen by end of 2014 - DTI

MANILA, Philippines - The business process outsourcing industry is expected to add 100,000 new jobs this year, the Department of Trade and Industry (DTI) said on Wednesday.

Trade Secretary Gregory Domingo said BPO employment is expected to reach 1 million by end of 2014. As of December 2013, there are 900,000 employed in the BPO sector.

Domingo isn't too worried about US President Barrack Obama's State of the Union address, where he urged US companies to bring back jobs from abroad.

In his address, Obama once again urged US Congress to pass amendments to the Tax Code that provide incentives to companies that outsource jobs overseas.

"Both Democrats and Republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here and reward companies that keep profits abroad. Let's flip that equation. Let's work together to close those loopholes, end those incentives to ship jobs overseas, and lower tax rates for businesses that create jobs right here at home," Obama said.

However, Domingo noted that outsourcing is still a cheaper and more attractive alternative for US companies.

The challenge for the Philippines now is to maintain its competitiveness in the BPO industry, by providing the right training for Filipino workers.

Manila and Cebu are among the top 10 outsourcing destinations in the world, according to services globalization and investment advisory firm Tholons. Metro Manila ranked second only to Bangalore, which remained the top outsourcing city.

Also, Domingo emphasized the need to encourage students to study sciences courses such as chemistry and physics, as well as engineering, as more manufacturers require these specializations for product research and development.

He said the DTI is coordinating with Commission on Higher Education (CHED) on this. - With report from Zen Hernandez, ABS-CBN News

source: www.abs-cbnnews.com

Anxiety over rising HIV, AIDS cases creeps into burgeoning BPO sector

MANILA, Philippines - Some workers applying for jobs at call center companies are being asked to reveal if they have the human immunodeficiency virus (HIV) – a clear violation of the AIDS law that prohibits discrimination against people living with the virus.

This was one of the issues discussed Friday at the National Dialogue on HIV and Human Rights organized by the United Nations Development Programme, and which focused on the forms of discrimination experienced by people living with HIV (PLHIV).

Edu Razon, president of Pinoy Plus, said some business process outsourcing companies have started asking applicants if they have HIV and requiring them to get tested. “If you’re a PLHIV and you’re applying for a job in the BPO, you’re reluctant to apply because of that,” he said.

UNDP officials at the forum advised the support groups working with PLHIVs to document such instances of discrimination in order to make a case against violators.

The concern about HIV cases in the burgeoning BPO sector is not surprising, given recent pronouncements by government agencies pointing to the galloping increase in HIV/AIDS cases in the country.

The National AIDS Registry shows that from one new HIV case detected every three days in 2006, this has risen to 10 cases per day in the first quarter of 2012.

Law bars mandatory testing

Republic Act 8504 or the country’s AIDS law does not prescribe mandatory HIV testing for employment and prohibits discrimination in the workplace on account of having the virus.

The BPO sector employs about 640,000 workers and has so far contributed $11 billion to the economy. It is expected to grow to a $25-billion dollar industry and employ a total of 1.3 million workers.

Document cases – UNDP

Teresita Marie Bagasao, country coordinator of the Joint United Nations Programme on HIV/AIDS (UNAIDS) said, there is a need to document these cases because they provide a clear picture of the different facets of discrimination experienced by those living with the virus.

“It’s very difficult to support an action if you don’t have evidence. You have to establish that such discrimination really exists,” said Bagasao.

Razon, however, noted that some BPO applicants are afraid to file a complaint because that would mean they have to disclose their HIV status. Participants to the dialogue, among them from the Commission on Human Rights, said PLHIV are faced with a dilemma between accessing services for redress and “coming out” publicly.

Jonas Bagas, executive director of TLF-Share, a non-government organization whose work is focused on the gay community, said most men having sex with men (MSM) do not submit themselves for HIV testing because of discrimination.

He cited a 2011 study of the National Epidemiology Center of the health department which showed that while the rate of MSM submitting themselves for testing has increased to 15 percent, only five percent of them come back for the results.

“They stop accessing results because of fear of being disclosed. They don’t want to know (if they’re infected),” he added.

Bagas said MSM are also afraid to go for testing because of the perception that HIV is a “gay disease.”

According to the UNAIDS, the transmission trend of HIV in the country has shifted from heterosexual to male-to-male sex, with five out of six Filipinos being infected with the virus in the country in 2011 coming from the MSM sector.

source: interaksyon.com

More fun to outsource in Philippines - study

MANILA – It’s more fun to outsource in the Philippines because of lower labor costs and bright young talents, according to an IT research company.

"The daily minimum wage is set to approximately $10 per day, making it far cheaper to outsource in the Philippines. As such, Filipino salaries are but a fraction of their western counterparts," Lauro Vives, chief analyst at XMG Global, said.

Based on a global study, Indian professionals are, on average, paid 37 percent higher than their Filipino counterparts.

Another cost-reduction factor for business process outsourcing is the fewer number of legal holidays, Vives said.

The Philippines has 18 holidays a year, compared with India’s 33.

"Lower business costs translate directly into higher business profits; let’s face it! The Philippines remains a less expensive choice. The typical operating costs of a BPO company in the Philippines results in average savings of $15,000 to $22,000 per annum," Vives said.

The Philippines also has plenty of economics zones, numbering 248 locations that give opportunities for investments, and locating business operations.

Besides lower labor costs, the country’s workforce is highly-skilled and competent, possessing a world-class education in IT and competitive infrastructure backed by several multinational companies.

Country estimations project 440,000 graduates for 2012-2013. Of that total, 50,000 are IT graduates.

Despite its advantages, the Philippines however lacks multilingual talent, Vives said.

"An estimate of over than 6,000 multi-linguals in 2011 far exceeds labor market projections. Last year, with insights and help from XMG Global, a tie-up between the Board of Investments and IBM was formed to implement programs to enhance the capabilities of multilingual talent in general, but more particularly in the BPO sector in languages other than English," he said.

"This effort will play a crucial role to hit the industry’s goal of generating $25 billion in revenue by year 2016. This is yet another example of government and business working in concert to achieve a common goal," he added.

As of last year, the BPO industry employed over 640,000 people directly and 1.3 million indirectly, generating $11 billion in revenues, equivalent to five percent of the Philippines’ gross domestic product.

source: interaksyon.com