A survey, "State of the Outsourcing Industry 2013", conducted by Big Four accounting firm KPMG, and HfS Research, a leading analyst authority on global business operations strategies, revealed that roughly half of major enterprises intend to increase the volume of application
In November 2009, Vestas looked to offshore staffing solutions to be able to lower its operating costs. Vestas needed to hire more than 200 FTEs at that time. The company looked around the contending offshore outsourcing destinations -- in India, Canada, Mexico, Singapore, and the Philippines (their matrix showed a couple more alternatives) -- and compared these countries side by side in terms of ease of doing business, cultural compatibility, availability of skills and competency, communication skills, cost, infrastructure, staff turnover, and anticipated salary increases / inflation.
European businesses aren't exactly enamored with the widespread corruption in the Philippines, according to Joona Selin, Executive Director of the recently formed Nordic Business Council of the Philippines (NBCP). Over a lunch meeting today, Joona explained that corruption and the ease of doing business with the Philippines are barriers to entry, but, the "business climate today is very promising" because of the country's very strong economic growth.
The Philippines' software outsourcing industry is considered one of the higher-value sectors and is credited for contributing some US$1.16 billion into the Philippine economy, employing nearly 60,000 software engineers and IT professionals. Estimated revenue per full-time employee (FTE) per annum is at US$20,500.
My conversations with clients and travels around San Francisco and Silicon Valley have taught me a lot about the value of relationships between service providers and clients.
A recent research reported that "Australian organisations are set to continue outsourcing more of their technology infrastructure and software applications". The annual study by ITNewcom interviewed 60 executives at top IT spenders in Australia about their software outsourcing intentions and it found that 75% of organisations already outsource some of their applications, while 85% outsource some of their infrastructure.
“Innovation is taking place in all parts of the world,” said Jerry Rapes, Exist Global CEO. “We hear about new inventions in Japan to amazing apps in Silicon Valley. We see Tel Aviv rising as a startup hub in the Middle East, and watch tech communities in Germany, Australia, and Singapore build up.”
Posting $1.5 billion in revenues last year (2012), the Philippines’ IT outsourcing services sector is rapidly gaining recognition as one of the more dynamic go-to IT delivery destinations globally.
I attended two workshops recently (well the latter one was more of a social forum) and learned a great deal of stuff.
At the "Cracking the German Market" seminar, I found out that:
I had wished for an updated report for 2011, to see how the industry has fared so far, given the ambitious goal 1.5B revenue in 2013. Now, I am again reminded that the industry isn't supposed to move as one big godzilla. Read below and let's discuss.
Despite the global economic crunch in 2008, the local software development industry was able to post a 27.60% growth rate in both export revenue and employment by the end of 2010, as reported by services and investment advisory group Tholons.
As you will reference from my previous post, I had a chance to witness the 2011 Cebu ICT & BPO Conference, where Cebu's Outsourcing Roadmap was discussed.
I have a transcription of the presentation of Comm. Mon Ibrahim about the Philippine Digital Stratgegy (launched yesterday) and would like to share it here: