Friday, March 31, 2006

Baker and McKenzie sends more work to Manila

According to ZDNet Australia, Baker and McKenzie plans to alleviate its Sydney and Melbourne offices of their workload by sending more work to Manila. The company has saved US$4 million since it opened its Manila center in the year 2000.

RR Donnelley takes controlling stake in Office Tiger

IndiaOutsourceWatch reported that Office Tiger has been acquired by RR Donnelley & Sons Co. in a US$250 million cash deal. Office Tiger provides BPO services to Fortune 100 companies through its operations in UK, Germany, India, Sri Lanka, and the Philippines.

Thursday, March 30, 2006

GenPact to set up in Philippines

According to ICE World, GenPact, formerly known as GE Capital Information Services, shall set up a global delivery services center in the Philippines and hire 1500 employees to handle voice-based transactions. A similar facility shall also be put up in Poland. GenPact also has entered into a 50:50 joint venture with NDTV to provide video editing, digitization, and graphics to news channel worldwide, according to The Financial Express. The company is facing challenges as well in preparation for its initial public offering.

Hinduja TMT rolls out Employee Stock Option Plan

According to Television Point, Hinduja TMT rolls out Employee Stock Option Plan for all its eligible managers globally that includes India, Philippines, Mauritius, Canada, and USA. This rollout is part of the company's vision to be a competitive player in outsourcing.

Citigroup ready to exit Progeon

According to the Business Standard, Citigroup is ready to exit Progeon, the business process outsourcing arm of Infosys. Citigroup holds a 23 per cent stake in Progeon. The valuation is expected to fetch Citigroup about US$140 million. This is part of InfoSys moves to make Progeon a wholly owned subsidiary and increase its service competitiveness.

Progeon has offices in India, Czech Republic, and the Philippines.

BSA Released 2005 Domestic Software Industry Development Study

The Business Software Alliance (BSA) released the results of its 2005 Domestic Software Industry Development Study highlighting the views of IT professionals in Asia on the development of the domestic software industry, together with statistics reflecting the views of IT professionals in the Philippines.

The key conclusions of survey are that IT professionals in Asia clearly believe that the government needs to play an important role in facilitating the development of the domestic software industry, particularly in terms of training and education. Industry self-regulation is preferred by the IT professionals as being more desirable than government-defined policies. IT professionals view the role of the government as fostering an environment of free competition such that all parties can compete freely in the market.

The survey reflects that there is substantial awareness among IT professionals in Asia about availability of open source options for software development, but the level and depth of understanding about open source and commercial software offering varies. There is expectation that open source solutions will bring about greater choice. It is a commonly held belief that the open source and commercial software models can and should co-exist.

This survey covered eight countries in Asia – China, Indonesia, Malaysia, Philippines, Singapore, South Korea, Thailand and Vietnam – to provide a representative cross section of the countries in Asia. 100 private sector IT professionals were surveyed in each country, totaling 800. IT professionals employed by the government were not included in the study. IT professionals surveyed are individuals who are IT executives, directors, managers, officers, whose primary job function is in a full time IT, software development, information systems or MIS department of a private organization. The survey was conducted by IPSOS Public Affairs, an independent research and survey company commissioned by BSA.

Printer firm looks forward

Lexmark CEO Paul Curlander got interviewed in this article by the Lexington Herald-Leader and was asked to confirm reports if the company is moving its color-science facility in the Philippines.

Sunday, March 12, 2006


I got this email message from Fermin Taruc, president of the Philippine Software Industry Association.


The Philippine IT Services industry consists of companies in the business of animation, call center and contact center operations, , business process outsourcing, medical transcription and software development. Collectively, these companies generated over $2 billion in export revenue in 2005. In total, the industry currently provides employment to 160,000 professionals. Our target is to reach $12 billion in annual revenue by 2010, providing employment to over 1 million Filipinos.

We are proud to say the Philippines is now mentioned as one of the preferred sources of IT services world-wide. While our entry-point into the global market has been our low costs, we are increasingly gaining attention for our quality, reliability and expertise.

It is easy to understand why. The Philippines has a pool of qualified professionals, cited frequently as among the best in the world. Local companies are investing in aligning their processes with international standards. Our telecommunications infrastructure is among the most competitive in the region. Our business incentives, grown over several administrations, are designed to attract foreign investment. Our list of high-profile international clients continues to expand.

The industry’s impact on the economy can be further multiplied if we consider the trickle-down effect on other local industries. The IT Services companies and their employees have emerged as prime consumers for other goods and services

We are confident in our industry’s abilities to reach its targets and to further increase its contribution to the economy. However, we cannot do it alone. A concerted effort among all stakeholders is required. We have to make sure that our schools produce enough graduates for us to hire. We have to make sure that government policies are in place to attract and retain investors. We have to make sure that we maintain an environment where Filipino professionals are given progressive opportunities to enhance their skills, careers & standards of living without the need to leaving our country.

We also have to make sure that our foreign customers and partners have the assurance that our ability to fulfill their requirements is not compromised or disrupted because of an unstable external environment.

We know that our business fundamentals as an industry remain strong . We have withstood all kinds of crises in the past. But, in our business, the perception of continuity and reliability is a key consideration. The global market is sensitive to isolated local incidents and can interpret these out of proportion.

We respect every party’s right to voice an opinion. Our industry has been, and will continue to be, an active participant in promoting transparency and good governance in our society. However, while there are national issues that cannot be ignored and need to be resolved, our call is for everyone to proceed with rationality, sobriety, responsibility and consideration. We have processes in place, let us use them and improve on them where necessary.

The Philippine IT Services industry provides an opportunity for the country to achieve long-term economic growth and stability. Let us not waste the opportunity. No less than 1,000,000 jobs depend on it.


Animation Council of the Philippines, Inc. (ACPI)
Business Process Outsourcing Association of the Philippines (BPA/P)
Medical Transcription Industry Association of the Philippines (MTIAPI)
Philippine Software Industry Association (PSIA)