Agenda

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US President Obama’s move to institutionalize insourcing has gained public approval. But will it have sufficient financial impact significant enough to compel US companies to keep jobs inshore? What will be the effect on MNCs that have invested in delivery hubs and centers of excellence around the globe? Can they stand up to Mr. Obama and argue that to be competitive, outsourcing is necessary. Or is the argument just politics as usual as the presidential election nears?

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To attain the full growth potential forecast in the IT-BPO Road Map 2011-2016, the industry and the government must have a unified strategy to support high-growth areas such as finance and accounting, creative services, health services, human resources, IT outsourcing, engineering and multilingual BPO. Can the Philippine strategy support and boost growth in these fast-rising verticals? Are there lessons to be learned from the experience in India and elsewhere?

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Since the inception of outsourcing, IT-BPO players have been overwhelmingly dependent on the US market. No one expects that market to diminish, but every market has a tipping point. The result? Pressure on margins. How real is that threat? More importantly, how can the global industry expand its presence in and impact on markets outside North America? How are industry leaders hedging their bets? Or are they?

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The Philippine government has stepped in to help address the talent supply issue in a number of ways. Tactically it has expanded funding of remedial training initiatives. Strategically government is moving to improve the quality of education by extending formal education by two years. Meanwhile, government and industry are undertaking visibility initiatives to enhance perception of IT-BPO and position the industry as an attractive career opportunity. Will these efforts ensure the availability of the estimated 1.3 million people required to grow the industry to US$25 billion by 2016?

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In Wealth of Nations, Adam Smith predicted that division of labor would become one of the most crucial drivers of economic progress in the modern world. The knowledge age seems to be restructuring work in just such a way, redefining the assembly line model where phases in a process are being broken down and delegated to “hyperspecialized” people, sites, or centers. Are we back to the future? What other trends are emerging that will shape IT-BPO?

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Do the most visible brands necessarily attract the highest-quality and the largest number of employees? Is company branding being strategically leveraged as a tool for attracting and retaining talent? Speakers share how some of the most successful BPO players rely on corporate brand reputation and visibility as a core piece of HR strategy.

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An increasing number of BPO players are getting past security concerns and seeing the value of cloud technology, both in streamlining the value chain, and in reducing capital outlay and operational costs. Moreover, new trends such as the rise of “social contact centers” and the emergence of a mobile dimension to outsourcing (Datamark, 2011) open interesting areas for service and market expansion. How can these technologies add more value to the BPO service delivery process? Are we seeing more BPO companies delivering their services and addressing customers’ needs via social and mobile platforms in the near future?

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The IT-BPO Road Map 2011-2016 identified marketing and branding as a growth element. Early this year, the Philippines launched a new country brand and popularized it using the “crowdsourcing” model. Can the BPO industry leverage the brand’s popularity and translate this into a BPO-specific messaging? In what ways can we say “Outsourcing is more fun in the Philippines”?

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Technology and standards are shaping healthcare as we know it. In terms of opportunities, which areas need to be explored to ensure effective service delivery, patient safety, and better quality of care? What are some of the successful models being employed by healthcare BPO firms to become more responsive to the needs of patients, healthcare institutions, and providers? How are these firms making a difference on the ways things are done?

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The Philippines is now a mature global location for software services, joining the ranks of China, Brazil, India, and Poland, according to a report by Everest Group. With industry growth of 37%, total revenue of US$993 million, and an increase in manpower by nearly 50,000 full-time employees in 2011, the software industry is among the fastest-growing outsourcing sectors in the Philippines today. But do conditions exist that will allow the industry to fully unleash its potential?

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According to a recent Corbett and Associates study, outsourcers see innovation rather than cost as a key strategic benefit of outsourcing. Can local players now compete based on value? To what extent are customers willing to pay for innovation? To what extent do they demand innovation?

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The uncertain global economy is putting more focus than ever on the bottomline, and pressuring decision makers to rationalize outsourcing spend. In the face of an unstable economy and stiff competition, it is not enough to promise speed, flexibility and better efficiencies. How are outsourcing players innovating customer retention strategies to meet this challenge? From offering value-added services to increasing flexibility to identifying new sources of revenue, how are vendors changing their games to transform the traditional supply model?

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Last year, the DOST-ICTO launched the Philippine Digital Strategy, a five-year national ICT development plan 2011-2016, aligned with the Philippine Development Plan, that maps out the steps towards transforming the Philippines into a “digitally empowered, innovative and globally competitive nation.” The presentation walks the audience through the plan’s five key result areas, namely: policy environment, e-Government, ICT industry development, universal access to the Internet, and cyber security.

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