Philippines to boost its software development services in Japan

With the aim to boost the country’s proven track record in Japan as an ideal outsourcing destination for software development, the Philippines will join the Software Development Expo and Conference (SODEC) 2007 on 16-18 May at the Tokyo Big Sight.

“Our 5th participation in SODEC is a follow through activity promoting our strong points in the field of software development and other IT services,” said Trade Assistant Secretary and CITEM Executive Director Felicitas Agoncillo-Reyes.

The Philippines’ participation in SODEC is organized by the Center for International Trade Expositions and Missions (CITEM), in close coordination with the Philippine Trade and Investment Center (PTIC), Tokyo, Japan.

The following companies are the Philippine participants in this year’s SODEC: Advanced World Systems, Inc. (embedded systems to business applications development services); Alliance Software (applications software development); Astra (Philippines), Inc. (web-based systems, image management and medical applications, music, client-server, including mobile software development); Ayala Systems Technology, Inc. (Global Bridge: Suite of Technology Services, which includes offshore development, testing and maintenance services); iCatchIT (website development rich applications, software and database development services); Imperium Technology, Inc. (network monitoring system, contact center solution, voice recording system, digital banking, and enterprise telephony solutions, as well as turnkey delivery system); Tsukiden Software Philippines, Inc. (wireless, telecommunications, and business applications solutions); and Winsource Solutions Philippines, Inc. (contact center solutions).

In conjunction with the individual software development capabilities of the exhibitors, the country will also promote the FLY HIGH: Philippine Software 2010 program, a breakaway growth strategy spearheaded by the Philippines Software Industry Association (PSIA). FLY HIGH will showcase the country’s growing domestic market for IT, increasing software exports, rising number of skilled software development professionals, infrastructure for industry growth, and step-up efforts for the protection of intellectual property.

With Japan’s rising labor cost and shortage in manpower, the country’s offshore outsourcing for software development is seen to grow an average of 5% to 8% annually, this makes Japan a huge market for foreign service providers like the Philippines.

After many years of bringing their software development needs to countries like China and India, Japanese companies are currently looking for other countries that can provide more cost efficient and value-added services.

Philippine software companies’ adaptability and ability to meet deadlines remains impressive among the Japanese companies. “The country’s software development services includes a whole package of satisfactory projects, on-time delivery, technical support, and confidentiality,” added Agoncillo-Reyes.

The country’s participation in last year’s SODEC resulted in 113 trade inquiries, and generated sales of 1.6 million dollars.

A multinational company based in Japan producing multi-function peripherals which combines the functions of printer, scanner, and facsimile in their product lines, signed a contract with Advanced World Systems, Inc. early this year. “Our proven track record in providing services to multi-function peripheral manufacturers, and capability to efficiently implement their requirements, are the reasons they decided to do business with us,” said Ramil Villanueva, AVP for Corporate Planning.

To know more about the Philippine participation in SODEC 2007, contact CITEM’s IT Services Division at (632) 8325044, e-mail itservices@citem.com.ph, or log on to www.e-servicesphils.com/sodec2007.

(END)

BPO boom fuels property sector

Proximity to top workers and competitive lease prices have lured foreign business process outsourcing firms (BPO) to set up in Manila, according to the Center for International Trade Expositions and Missions (CITEM), the export promotion arm of the Department of Trade and Industry.

“BPO companies are not only on hiring binges, they are also in need of Grade A office spaces,” said Trade Assistant Secretary Fe Agoncillo-Reyes, executive director of CITEM. “For our commercial real estate developers, this strong demand is welcome.”

The influx of BPO providers and established names like GenPact, e-Telecare, Teletech, IBM-Daksh, Dell, and Ericsson Communication in 2006 is also part of the real estate boom the Philippines had in 2006.

According to a CB Richard Ellis report, a combined total of 120, 200 sq m office spaces have been allocated to new BPO locators in the first semester of 2006 alone and an estimated 60, 000 sq m of office spaces have been addded during the rest of the year.

Examples of the buildings that were leased to BPO firms in 2006 were Net Square and Bonifacio Global City developed by 19-1 Realty; EC IT Center in Mandaluyong by Greenfield; Plaza A, Northgate Cyberzone developed by Filinvest; and Cybergate 1&2 at Mandaluyong developed by Robinsons Land.
A big part of the real estate demand, added Agoncillo-Reyes, is BPO firms who are expanding in Manila.

For 2007, the need for grade A office spaces is being answered by property developers doing “build-to-suit” deals and cyberzones for companies who came to Manila for BPO work.

Ayala Land is developing UP Science and Tech Park in Quezon City. Robinsons Land is developing the cybergate in Mandaluyong City and Robinsons Cyberpark in Libis, Quezon City; Federal Land is spearheading development in the Bay Area, Pasay City and in Bonifacio Global City. Filinvest Land boasts of developing the first IT campus-type of low- to mid-rise buildings. SM Investments Corporation is also joining the bandwagon of developing properties for call centers and BPO like Dell and Teletech. Megaworld has new projects in McKinley Hill and Newport City just to name a few.

“Class A office spaces are not difficult to find these days. The BPO industry’s runaway growth over the years also bring vibrancy to the property sector,” said Agoncillo-Reyes.

For information about BPO/IT sectors, please contact CITEM’s IT Services Division at 831-2201 loc 301 or email itservices@citem.com.ph

Senator Mar Roxas' Speech (e-Services Philippines 2007)

15 February 2007

EDSA Shangri-La Hotel

Excerpt:

Services Globalization Trends for 2007

Services globalization is now a key strategic imperative for successful enterprises and will be the single most important factor shaping how services are developed and delivered across the globe. The success of services globalization in the future will be determined by the quality of of delivery and supply. To this end, the future leaders in services globalization will stand on the following five tenets: Investment, Leveraging, Countries/Cities of Excellence, Scale and Quality of People, Process Excellence and Services Intellectual Property.

Key Trends that will shape Services Globalization in 2007:

1. Small and Medium Enterprises, driven by Private Equity Investors, will become significant participants in services globalization.
2. Firms will adopt the Cities of Excellence model, sourcing services from the best location for respective ITO/BPO domains/ processes.
3. Multi-Sourcing will dominate, as mega-deals will be sourced to a mix of Tier 1 and Tier II service providers.
4. ITO/BPO growth will be supply-constrained in an extremely strong demand market.
5. Globally, service providers will witness a significant resource crunch.
6. Engineering Services, R&D Services, ERP, Infrastructure Management, Product Development and Healthcare will see increased traction in 2007.
7. Captives will see heightened activity in 2007, with parent companies considering spin-offs to cash out
8. Offshoring of customer-facing processes will slow down, and some may even move back onshore/ nearshore
9. Tier II and Tier III service providers will spread their global footprint by making significant overseas acquisitionsIndia will continue to be the leading destination for ITO/BPO.
10. India will continue to be the eading destination of for IT/BPO. The Philippines will come in a distant second, and China will trail behind for next several years.

Source:
Avinash Vashistha,
Chairman and CEO
THOLONS

More jobs to the countryside as BPOs go regional

The Department of Trade and Industry Regional Operations Group hosted the Regional IT Hubs Forum as part of the government’s 7th e-Services Philippines (ESP) held at EDSA Shangri-La Hotel, the annual platform to promote the country's world-class capabilities in IT and IT-enabled services.

The ESP Regional IT Hubs Forum presented ten IT hubs as premier locations for investors and locators of various BPO-oriented services: Bacolod City, Batangas, Baguio, Cagayan de Oro, Clark, Davao, Iloilo, Leyte, San Fernando (La Union), Sta. Rosa (Laguna), and Subic.

“Regions outside Metro Manila are becoming attractive for offshore e-Services as a result of improved infrastructure and abundance of IT capable manpower,” Trade Undersecretary for Regional Operations Carissa Cruz-Evangelista said.
The BPO sector, which employed 244,675 in 2006 is projected to grow to about one million in 2010. Last year, ESP generated US$ 20.7 million and hosted over 1,800 local and foreign trade visitors.

Three years ago, there were no e-Services companies operating outside Metro Manila. “But with the overflow of companies scouting for viable site for their operations, investors are seeing that the regions are profitable place for business activities,” Undersecretary Cruz-Evangelista said.

Presently, there are 45 business process outsourcing firms that are located in Bacolod, Baguio, Cagayan de Oro, Davao, Iloilo, Leyte, Sta. Rosa and Clark. Firms operating in the regions include call center/customer care, medical transcription, software development, and animation/computer graphics. The number does not include BPOs that are doing business in Cebu and Dumaguete, which are also major areas for IT investments.

“Notable BPOs are now in the regions which include InfoNXX, ePLDT Ventus, Client Logic and Teletech. These are multi-million investments that translate to jobs that will further spur the development of the countryside,” Undersecretary Cruz- Evangelista said.

“With this development we are now seeing these regions developing as “Regional IT hubs” that will host more BPO firms,” the DTI Undersecretary said. Regional IT Hubs, provinces and cities capable of ICT investment, software and e-services, have proven attractive with the increase in the number of locators in areas outside of Metro Manila.

“With the development of real estate, IT infrastructure, and the highly-trainable and available human resources in the countryside, these regional IT hubs would provide tremendous economic activity to the provinces,” Cruz-Evangelista said.

“When businesses come in, we can see the improvement in quality of life from the provinces down to the barangays. It is important that our IT-competent cities and provinces be recognized in the global economy to encourage more investments in the countryside.”

Animation industry registers 25% year-on-year growth

The Philippine animation industry posted a 25 percent increase in revenues for 2005, according to data provided by the National Statistics Office. Revenue increased to $52 million from $40 million in 2004.

The results were culled from revenues generated by registered members of ACPI. ACPI membership has also increased in recent years with 35 organizations, up from approximately 20 production houses when the association was established in 2000. According to Grace Dimaranan, CEO of Top Peg Animation and Creative Studio, Inc., and president of the Animation Council of the Philippines, Inc. (ACPI), a national association of animation industry players and stakeholders, the 25 percent annual growth is a conservative estimate in her view, given the recent boom in different animation verticals such as game development, flash animation, computer animation and mobile content.

Although the industry is growing, Dimaranan said a number of competitive threats could trim growth. She said that India and China are the industry’s most important competitors in the global market for outsourced animation work, which was estimated to be worth $72 billion in 2005. The Philippines trails India and China in terms of revenue. According to India’s National Association of Software and Service Companies (NASSCOM), India’s animation industry generated $285 million in revenues in 2005, while China captured $604 million.

One of the principal factors accounting for the India and China lead is the low cost of animation services in those countries compared to that in the Philippines. Clients who value low cost over creativity send work to India and China, rather than the Philippines. While cost is important to all clients, it is not the first consideration when outsourcing work, fortunately for the Philippines.

“In terms of creativity, there is no doubt that Filipino animators are highly preferred by clients to their Indian and Chinese counterparts. The earliest animation studios here have been outsourcing work to foreign clients since 1980s — and this experience is something that India or China cannot duplicate,” Dimaranan said. Because Filipino animators cannot compete on price, they leverage their track record for creativity to sell services at a premium, and to win contracts involving higher-value and knowledge-based animation processes.

Aside from the cost differential, Dimaranan said that growth of the local animation industry’ is also constrained by the thin talent pool.“ There are a lot of global opportunities. Unfortunately, the bigger the market, the more we have to prepare a sufficient skilled workforce to meet demand,” Dimaranan said.

To beef up the talent pool, ACPI has partnered with the Technical Education and Skills Development Authority (TESDA) to institutionalize animation training beginning with the development of a modern curriculum, training regulations and assessment standards that are aligned with industry requirements. That work has been completed, and is available for assessment and incorporation into course offerings by academic and training institutions.

The ACPI also conducts road shows throughout the Philippines to promote animation as a serious career to incoming college students and parents, and to offer help in the form of trainers and assistance in developing an industry-focused but customized curriculum for academic institutions. ACPI is hopeful that their efforts will translate into an increase in the number of animators from the approximately 6,500 at present to 25,000 by 2010. The need for a deeper pool of qualified creative talent is becoming increasingly urgent due to an increase in global demand for newer animation verticals, including game development.

Despite serious obstacles to growth, some ACPI members are moving beyond contract outsourcing to produce original content. The risks are substantial. “Producing a 22- to 30-minute show could can cost anywhere from P2 to P3 million. To sell your work to a network, you need to make at least one series, which is 13 shows. So you can just imagine the risks and resources involved,” said Dimaranan.
The industry produced the TV series Panday and Captain Barbell in the 1980s, both of which were made manually. These were followed by Kwentong Kayumanggi, Ibong Adarna, Isko sa Animasia, and a few more animated shows. Top Peg’s Tutubi Patrol, an animated adaptation of the value-oriented book series for children, was the first full series created using computer-assisted animation processes. Since its release in 2004 to 2005, it has been shown locally and exported to Indonesia, Hong Kong and Germany, with subtitles. Following up on that initial success, Top Peg is now working on its second original series, “Jobert,” which is being fully funded by an investor.

As part of its promotional and capability-building efforts, ACPI has also partnered with the Center for International Trade Expositions and Missions (CITEM) in presenting a conference track on Digital Animation at the e-Services Philippines 2007 global sourcing conference and exhibition.

“We have been a staunch supporter of e-Services Philippines since its inception. This year, we are focusing on digital animation in response to the many inquiries that we’ve been getting on the newer forms of computer-assisted animation.” Topics to be covered during the track include: film animation and CGI, mobile animation and game development, and voice acting.

e-Services Philippines takes place from February 15 to 16, 2007, at the Edsa Shangri-La Hotel, Mandaluyong City. The Digital Animation track will be held on the second day, at the Batanes Rooms 1 and 2.
For more information on ESP 2007, please visit www.e-servicesphils.com or call CITEM’s IT Services Division at 831-2201 loc 301, 251, and 212.

First IT park to rise in Makati in 2008

Makati City’s first-ever information technology (IT) park will start construction during the second quarter of 2007, according to property developer Century Properties, Inc., which won the public bidding for the former site of the International School of Manila last year, it was announced during e-Services Philippines 2007.

Century Properties has tapped visionary architecture and urban planning firm Jerde Partnership for its flagship project, which will showcase mixed-use development, residential and commercial properties, an IT park, and a high-end hotel. The firm, which successfully bid for the property in June 2006, is set to construct a minimum of 160,000 square meters of Grade A office space.

“There’s always a premium for Makati locations. This is the largest available property for development of contiguous land, and it’s very rare that you can find a space that opens up like that, that you can essentially plan from scratch,” said Marco Antonio, Managing Director of Century Properties, Inc.

The IT park will cater to the business process outsourcing (BPO) sector, particularly the high-end BPOs, “who are willing to pay premium rates for a good location and something of this caliber,” Antonio explained. “We are currently applying for Philippine Economic Zone Authority (PEZA) accreditation and will most likely exceed the minimum requirement of one hectare for the IT park. We feel that we are poised to deliver products by 2008 or early 2009 for the first batch of office buildings,” he said.

The office market has changed dramatically in recent months, with lease rates hovering in the P1,000 per meter range, and strong demand continues to fuel the growth of the real estate industry. “It makes sense for developers to start building offices again,” Antonio observed. “We’ve talked to a lot of these potential locators and they have told us what they must have and what they wish to have, and we’re complying with their requirements.”

Century Properties also plans to donate land to put up an IT school in the area. “We believe that there will be a huge complementary relationship between the school and the availability of qualified manpower to eventually work in our buildings,” Antonio said.

A pioneer in the real estate and property development industry, Century Properties created the fully fitted, fully furnished unit. It was also the first to build a transportation-oriented development, SOHO Central, and the first to build a Wi-Fi community, Canyon Ranch.

Medical transcription is fastest-growing BPO sector

With an expected annual growth rate of as much as 90% percent in each of the next five years, the Philippine medical transcription (MT) industry will outpace growth in the high-profile contact center industry, making it the country’s fastest-growing business process outsourcing (BPO) sector. The sector is estimated to have generated revenues of US$ 75 million in 2006.

Membership in the Medical Transcription Industry Association of the Philippines, Inc. (MTIAPI) has increased from 46 to close to 70 firms in the past 12 months, a trend supporting the optimistic growth forecast. MTIAPI is a non-stock, non-profit industry organization and works closely with government and the business process outsourcing (BPO) industry to support the MT sector in the Philippines.

According to the Board of Investments data, the MT industry registered total revenue of $70 million in 2005, up from $42 million posted in 2004. Industry figures for 2006 have yet to be consolidated, but official projections estimate 2006 revenue at $75 million.

The U.S. is the largest market for Philippine MT service organizations (MTSOs). Josephine Gonzalez, senior corporate relations officer at SPi Technologies and Chairperson of MTIAPI, said the high demand for offshore MT services is the result in part of the Health Insurance Portability and Accountability Act (HIPAA), a 1996 law which requires all medical records to be archived in digital format.

This Act, together with the increased demand from Medicare, Medicaid and U.S. insurance companies for legible patient care documentation to comply with HIPAA and a rise in healthcare spending due to a growing and aging population, is fueling the increase in MT services requirements, Gonzalez explained. “Also, the steady decline in the number of qualified medical transcriptionists in the U.S., coupled with cost pressures, has encouraged U.S. companies to offshore their MT requirements to destinations with strong English-language skills and medical understanding,” Gonzalez said.

According to ValueNotes Research, 40 percent of the MT market in the U.S. — which covers hospitals, clinics, and health management organizations, and patients seeking reimbursement for medical expenses — is outsourced to third-party MTSOs and independent contractors. Of this 40 percent, five percent is offshored to MTSOs outside of the U.S., primarily India and the Philippines. India has a 78 percent share of this market, while the Philippines has just 10 percent. The remaining 12 goes to a number of other countries, including Canada and Ireland.

While ValueNotes Research identified cultural compatibility with the U.S. and strong government support as the Philippines’ distinctive strengths, it also found the small size of the industry and the limited talent pool as weaknesses that have kept the industry from achieving its full growth potential. In contrast, scalability is India’s unique selling proposition — a strength that reflects the large size of the MT industry and labor pool.

In response to increasing demand, however, BPO companies with operations in the Philippines that haven’t provided MT services previously are beginning to do so. PeopleSupport, one of the Philippines’ leading contact centers, is one such firm. According to Evelyn Abat, Program Director of PeopleSupport’s MT Division, the company’s significant technical and infrastructure resources, previously underutilized during regular working hours, and its corporate commitment to help grow the nation’s economy by creating jobs, were factors that led PeopleSupport to pursue the MT vertical 10 months ago. PeopleSupport now offers MT services as well as higher value transcription services such as broadcast, entertainment, offline transcription and captioning.

But there are continuing challenges. According to Abat, although PeopleSupport’s reputation as a leader in the customer service management industry has helped the company recruit top talents for its MT initiative, building a team of qualified transcriptionists proved to be a major setback.

“Our global brand is the greatest asset in our sales and marketing efforts and in convincing U.S. clients to send us work. Still, it was quite a hurdle to initially migrate our existing MT business from the U.S. to the Philippines because of the general impression that we do not yet have the qualified manpower to do the job,” Abat added. “As a start-up division , building competency and convincing clients that we have the capability and the expertise to deliver the work is an ongoing challenge.”

Abat believes that it is possible to further accelerate the growth of the MT industry, provided two conditions are met. First, it is important to build a large pool of qualified medical transcriptionists to achieve scalability; and second, country marketing, or promoting the Philippines as a destination of choice for high-quality and low-cost MT services is critical to correcting inaccurate perceptions of the Philippines.

MTIAPI is aggressively addressing both these issues, said, Myla Rose Reyes, who is President of the association and Managing Director of Total Transcription Services, Inc. Aside from partnering with the Technology and Skills Development Authority (TESDA) to develop a standard MT curriculum and working on the standards to professionalize the industry, MTIAPI has also been marketing MT as a viable business and long-time career through seminars, forums, and trade shows such as e-Services Philippines (ESP), an annual global sourcing conference and exhibition organized by the Center for International Trade Expositions and Missions (CITEM).

“ESP is a good venue to showcase the MT sector. We expect high-level executives from the international health information management industry to attend this year, and we have already received a number of inquiries about MT in the Philippines in response to marketing communications for the event,” Reyes said. “By participating in ESP, we hope to achieve better visibility locally and internationally, and make MTIAPI the first stop for all MT-related inquiries from potential investors.”

ESP 2006 is scheduled on February 15 to 16, 2007, at EDSA Shangri-la Hotel. For more information, visit www.e-servicesphils.com.

Animation industry registers 25% year-on-year growth

The Philippine animation industry posted a 25 percent increase in revenues for 2005, according to data provided by the National Statistics Office. Revenue increased to $52 million from $40 million in 2004.

The results were culled from revenues generated by registered members of ACPI. ACPI membership has also increased in recent years with 35 organizations, up from approximately 20 production houses when the association was established in 2000. According to Grace Dimaranan, CEO of Top Peg Animation and Creative Studio, Inc., and president of the Animation Council of the Philippines, Inc. (ACPI), a national association of animation industry players and stakeholders, the 25 percent annual growth is a conservative estimate in her view, given the recent boom in different animation verticals such as game development, flash animation, computer animation and mobile content.

Although the industry is growing, Dimaranan said a number of competitive threats could trim growth. She said that India and China are the industry’s most important competitors in the global market for outsourced animation work, which was estimated to be worth $72 billion in 2005. The Philippines trails India and China in terms of revenue. According to India’s National Association of Software and Service Companies (NASSCOM), India’s animation industry generated $285 million in revenues in 2005, while China captured $604 million.

One of the principal factors accounting for the India and China lead is the low cost of animation services in those countries compared to that in the Philippines. Clients who value low cost over creativity send work to India and China, rather than the Philippines. While cost is important to all clients, it is not the first consideration when outsourcing work, fortunately for the Philippines.

“In terms of creativity, there is no doubt that Filipino animators are highly preferred by clients to their Indian and Chinese counterparts. The earliest animation studios here have been outsourcing work to foreign clients since 1980s — and this experience is something that India or China cannot duplicate,” Dimaranan said. Because Filipino animators cannot compete on price, they leverage their track record for creativity to sell services at a premium, and to win contracts involving higher-value and knowledge-based animation processes.

Aside from the cost differential, Dimaranan said that growth of the local animation industry’ is also constrained by the thin talent pool.

“There are a lot of global opportunities. Unfortunately, the bigger the market, the more we have to prepare a sufficient skilled workforce to meet demand,” Dimaranan said. To beef up the talent pool, ACPI has partnered with the Technical Education and Skills Development Authority (TESDA) to institutionalize animation training beginning with the development of a modern curriculum, training regulations and assessment standards that are aligned with industry requirements. That work has been completed, and is available for assessment and incorporation into course offerings by academic and training institutions.

The ACPI also conducts road shows throughout the Philippines to promote animation as a serious career to incoming college students and parents, and to offer help in the form of trainers and assistance in developing an industry-focused but customized curriculum for academic institutions. ACPI is hopeful that their efforts will translate into an increase in the number of animators from the approximately 6,500 at present to 25,000 by 2010. The need for a deeper pool of qualified creative talent is becoming increasingly urgent due to an increase in global demand for newer animation verticals, including game development.

Despite serious obstacles to growth, some ACPI members are moving beyond contract outsourcing to produce original content. The risks are substantial. “Producing a 22- to 30-minute show could can cost anywhere from P2 to P3 million. To sell your work to a network, you need to make at least one series, which is 13 shows. So you can just imagine the risks and resources involved,” said Dimaranan.

The industry produced the TV series Panday and Captain Barbell in the 1980s, both of which were made manually. These were followed by Kwentong Kayumanggi, Ibong Adarna, Isko sa Animasia, and a few more animated shows. Top Peg’s Tutubi Patrol, an animated adaptation of the value-oriented book series for children, was the first full series created using computer-assisted animation processes. Since its release in 2004 to 2005, it has been shown locally and exported to Indonesia, Hong Kong and Germany, with subtitles. Following up on that initial success, Top Peg is now working on its second original series, “Jobert,” which is being fully funded by an investor.

As part of its promotional and capability-building efforts, ACPI has also partnered with the Center for International Trade Expositions and Missions (CITEM) in presenting a conference track on Digital Animation at the e-Services Philippines 2007 global sourcing conference and exhibition.

“We have been a staunch supporter of e-Services Philippines since its inception. This year, we are focusing on digital animation in response to the many inquiries that we’ve been getting on the newer forms of computer-assisted animation.” Topics to be covered during the track include: film animation and CGI, mobile animation and game development, and voice acting.

e-Services Philippines takes place from February 15 to 16, 2007, at the Edsa Shangri-La Hotel, Mandaluyong City. The Digital Animation track will be held on the second day, at the Batanes Rooms 1 and 2.

For more information on ESP 2007, please visit www.e-servicesphils.com or call CITEM’s IT Services Division at 831-2201 loc 301, 251, and 212.

e-Services Press Conference (January 18, 2007. Manila Peninsula Hotel)

Philippines readies for KPO. Trade and IndustrySecretary Peter B. Favila (center) briefed CEOs andindustry partners on the country’s advantage in KPOareas like game development and engineering andarchitecture design outsourcing in preparation for thee-Services Philippines Global IT Sourcing Conferenceand Exhibit on February 15 and 16, 2007, an annualmeeting of industry players in the IT and BPO space.Also present in the photo were: (From left) FrankStumpf, President and COO of SPi Publishing; DanReyes, President of the Business ProcessingAssociation of the Philippines; Trade UndersecretaryMel Alonzo; Tertius Vermeulen, President and CEO ofSiemens Inc; and Harlie Llave, Executive Director ofBaker & McKenzie Global Services Manila.




Philippines as the next KPO hub. Trade and Industry Secretary Peter B. Favila (center) briefed CEOs and industry partners on the country’s advantage in KPO areas like game development and engineering and architecture design outsourcing in preparation for the e-Services Philippines Global IT Sourcing Conference and Exhibit on February 15 and 16, 2007, an annual meeting of industry players in the IT and BPO space. The global KPO market is projected to grow to US$17 billion by 2010, Favila reported.

e-Services Philippines 2007 to signal shift of Philippines from BPO to KPO

January 30, 2007 -- The e-Services Philippines (ESP) 2007 conference and exhibition, the annual flagship show of the Philippines for the IT and IT-enabled services sector is highlighting the shift of the Philippines to high value knowledge-based outsourcing.

The event will take place February 15-16, 2007, at the Edsa Shangri-La Hotel in Mandaluyong City.

"Unlike the previous events, ESP 2007 has been upgraded as a response to the industry’s more aggressive requirements. We are seeing local players moving from low-end processes to look for niches higher up in the value chain. We intend ESP 2007 to be the event that can help them move from BPO to knowledge process outsourcing (KPO)— and actually get there," Department of Trade and Industry (DTI) assistant secretary Felicitas Agoncillo-Reyes announced.

Agoncillo-Reyes is also the executive director of the Center for Trade Expositions and Missions (CITEM), the DTI’s export promotions arm.

Now on its 7th year, the ESP conference and exhibition has been hailed as an important IT and IT-enabled services (ITES) outsourcing show in the region.

For the past six years, the event has served to promote the Philippines as a preferred venue for IT outsourcing by attracting foreign investors and global trade missions. Last year’s event generated at least US$23.5 million in new contracts.

ESP 2007 will feature an exhibition; a CEO Forum that will discuss such topics as "The Global Business Process Outsourcing (BPO) Outlook" from both the CEO and the analyst’s perspectives, "The Next Level: Knowledge Process Outsourcing" and "BPO Best Practices" by speakers who will talk about the different BPO business models.

Some of the CEO Forum speakers that have confirmed include Ralph Schonenbach, CEO of Trestle Group, who will present his insights on how focused companies can successfully move up the value chain.

David Barrett, Simmons & Simmons partner and global head of Communications, Outsourcing and Technology, on the other hand, is set to present winning strategies in privacy, security and other challenges in international business.

"There will be five sector tracks intended to identify market niches for the IT and ITES sectors. These tracks include: IT Outsourcing, Health Information Management, Business Venture and Investment, BPO-KPO, and Creative e-Services," Agoncillo-Reyes explained.

The 2007 event will also be the first edition of the conference and exhibition that CITEM is aggressively promoting in Asia. In past years, marketing communications have primarily targeted North American and EU markets. "It is our aim to sell ESP 2007 as a platform where both buyers and providers from all over Asia as well as our traditional markets can converge and explore business opportunities," said Agoncillo-Reyes."We are upping our promotional efforts at an opportune time when the local IT and ITES sectors are starting to move from straightforward BPO to knowledge process outsourcing, providing higher-value services to the global market."

According to Agoncillo-Reyes, the capabilities of the Philippines’ outsourcing services providers have greatly improved as a result of competition and collaboration. "The Philippines is already a strong contender in the global outsourcing market. This time, CITEM intends ESP 2007 to signal to the rest of the region the arrival of the Philippines on the KPO scene. "The KPO wave is already being felt in the Philippines. "

The success of the outsourced and captive contact centers, followed by the fast growth of the back-office processing and shared services industry that supports multinational companies from the Philippines had paved the way for new opportunities," said Business Processing Association of the Philippines (BPA/P) president Dan Reyes.

Thus, "providers that used to offer only basic finance and accounting services like data encoding and document verification are now providing more complex and analytical processes such as financial capability assessment for mortgage companies, for example."

"The annual e-Services Philippines exhibition and conference provides a showcase for the Philippines’ KPO and BPO capabilities. The event enjoys broad industry support because it has been instrumental in the success of our promotional efforts," Reyes said. "e-Services gives potential clients a reason to come to the Philippines, and while here learn what the Philippines can offer at the exhibition and conference, and actually explore business opportunities and strategic partnerships with local providers in the investment track and through business matching."

For information on e-Services Philippines, please contact:CITEM, IT Services and Electronics Division T: (+632) 8325044 & (+632) 8312201 locals 212, 251, and 301www.e-servicesphils.com

Source:

http://www.prweb.com/releases/2007/1/prweb501170.htm