Sun.Star Economic Forum

AN EXECUTIVE of a business process outsourcing (BPO) company admitted that the companies in the industry are partly to blame for misconceptions about the kind of work in a BPO company.

Yogesh Malhotra, lead for Accenture’s Philippine Delivery Center Network for BPO, said “glamorizing” the work of a BPO employee is one of the reasons that many leave the industry.

Most of the recruitment advertisements posted by BPO companies usually highlight “fun at work.” (more)

AMID the lack of qualified people who meet the labor demands of business process outsourcing (BPO) companies, an official of a Cebu-based foundation remains bullish about Cebu’s potential to be a Silicon Valley or an “innovation island” and contribute to the country’s economic growth through technological entrepreneurship.

Bonifacio Belen, executive director of the Cebu Educational Development Foundation for Information Technology (Cedf-it), explained that Cebuanos possess the creativity and entrepreneurship skills that are waiting to be tapped by industry players. (more)

Next to the National Capital Region, Cebu has the biggest concentration of outsourcing and off-shoring workers, said a business processing group official.

Oscar Sanez, Business Processing Association of the Philippines (BPAP) chief executive officer, said aside from major outsourcing players putting up branches in Cebu, there are companies that have chosen to set up their first Philippine operations in the province.

He said that of the 15,066 business process outsourcing workers in Cebu, 10,013 are “voice-based” while 3,943 are “non-voice.” This figure is about the same as Clark and a third of that of Quezon City, he added. Sanez is one of the speakers of the ongoing Sun.Star Economic Forum on “Business Process Outsourcing: Prospects and Challenges for Cebu’s Economy.”
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Available workforce, a good business environment, and available sites for expansion, which drive the growth of the outsourcing and off-shoring industry, are also the factors posing problems to the sector.

Business Processing Association of the Philippines (BPAP) chief executive officer Oscar Sanez said that if the country fails to address these issues in the next few years, outsourcing and off-shoring investments will go to other emerging markets. Read the rest of this entry »

SUN.STAR Publishing Inc. President Jesus B. Garcia opened Wednesday’s Sun.Star Economic Forum on Business Process Outsourcing with the identification of challenges and issues confronting the industry.

This year’s economic forum is focused on the prospects and challenges of BPO.

Garcia, who was former transportation and telecommunications secretary, said Cebu being a limestone island couldn’t grow in terms of agriculture and industry.

“The only way for Cebu to grow is to grow through the services sector, “ Garcia added.

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STAKEHOLDERS in the business process outsour-cing industry in Cebu are expected to participate in the Sun.Star Economic Forum to be held tomorrow at the Parklane International Hotel.

The forum, set to begin at 8 a.m. with the registration of participants, will feature prominent local, national and international figures in the business process outsourcing (BPO).

In the first part of the forum, Cebu Educational Development Foundation for Information Technology (CEDF-IT) president Bonifacio Belen will present the future of BPOs in Cebu and in the country. (more)

By Ernesto G. Yap
University of San Carlos

ON July 17, 2008, the Bangko Sentral ng Pilipinas (BSP) raised its key interest rates by half a percent. This is supposed to help arrest rising inflation. Higher interest rates decrease spending as people are motivated to save. With less spending, there is less demand of goods and, therefore, inflation is expected to slow down.

On the other hand, higher interest rates would increase payments to all kinds of bank loans, as we assume production to be constant. But since businesses have to pay higher interest for their bank loans, would they not increase the prices of goods and services they provide? Is this not going to fuel more inflation?

With higher interest rates, will prospective investors be motivated to invest?

Under a high-interest scenario, an investor will have a higher required rate of return. This will then limit the choices of investment he or she can venture into.

Yet, in our past economic performance, investments were always below expectations, making our future sustained consumption in doubt. (more)