The Oscars of the BPO Industry
Transcription
The Oscars of the BPO Industry
april - june 2008 • Vol. 2 - No. 2 • 24 pages • free The Oscars of the BPO Industry INDUSTRY PROFILE p. 14 Gabby Dizon, Game Devt. Association of the Philippines Interview highlights: How the Philippines' gaming industry stands in Asia ■ Oscars of the BPO Industry p.2 • Meet the winners and the finalists of the prestigious award • The categories of excellence • The significance of the awards and their overall contribution to the industry • Future plans of the organizers: where does the BPO industry go from here? ■ Europe: The Next Frontier for Philippine BPOs p. 4 • A comparison between the U.S. and European markets • Current perception of the Philippines by European companies • Steps that must be taken to attract more European clients to the Philippines ■ First 100 Days of Roadmap 2010 p. 4 • 50 percent increase in revenue • 30 percent increase in jobs generated during that same time period • The global crisis that is compelling U.S. companies to consider outsourcing as a means of cost-cutting • Non-traditional markets that Phil. BPOs will venture into ■ Comprehensive BPO Guide Will Promote 100+ Companies p. 4 • The contents of the O&O directory and the assistance they provide to BPOs, locators, and client companies ■ Phil. BPOs Assess Impact of U.S. Economic Crisis and Peso Appreciation p. 6 • The U.S. represents 67 percent of direct foreign investment and 86 percent export revenues for BPO-IT firms ■ 2008 Target p. 8 • Forty percent growth needed to reach US$7 billion in revenues ■ From the CEO’s Desk p. 9 • 10,000 TESDA scholarship vouchers released • 15 educational institutions now in partnership with BPOs to develop curriculum supportive of the industry ■ The BPA/P’s Initiative in Second Quarter p. 10 • The highlights of a roadshow to Australia promoting the Philippine BPO industry ■ Anand Chopra p. 12 • The Indian senior executive who became a BPA/P stalwart and a friend of Philippine BPOs ■ The Game Development Industry p. 13 • The Philippines ranks second only to Singapore when it comes to game development outsourcing • US$1 billion: the estimated revenue of game development outsourcing • The ability to deliver, flexibility, and excellent English communication skills are more important to clients than cost ■ The Game Development Association of the Philippines p. 14 • The game that won the Best Innovation in Audio Award and became a finalist in the U.S. Independent Game Festival in 2004 • The United States, the United Kingdom, Malaysia, Singapore, and India are some of the countries that outsource gaming work to the Philippines • How the Philippines’ gaming industry is positioning itself as the production center in Southeast Asia ■ Pixelstream p. 16 • Filipino gamers are strong in creativity • The Philippine icon soon to be the center of an original game ■ How Do We Train Culture? p. 18 • What may work for Americans may be disastrous for Britons The ICT industry recognizes movers and shakers with awards that serve as a benchmark for companies and individuals to continually measure themselves It was an evening comparable to the Oscars of the movie industry. Gentlemen and ladies in their best evening suits and dresses. Thirtyeight finalists vying for some of the most coveted awards in the industry. The difference was that no one among the finalists had inch-thick makeup, and there were no fans outside the awards hall shrieking for their favorites. But March 13 nevertheless marked a shining moment for an industry that has contributed so much to the economy, organizations, and individuals. That night, members of the business process outsourcing industry (BPO) once more recognized peers and colleagues who had contributed to put the Philippines on the BPO global map. By Veronica C. Silva-Cusi The Second ICT Awards– Philippines 2008 was attended by more than 400 participants who have made it to the list of Who’s Who in the local and international ICT scene. Eight winners further sealed the Philippines’ fate as the destination of choice for outsourcing and offshoring. Turn to page 2 Photo courtesy of PLDT L-R: LogicaCMG Global Business Dev. Exec. Mitch Locsin; Sitel Phils. Pres. Dan Reyes; Logica (Phils.) Inc.’s Marie Lee Rodriguez; Pointwest Tech Pres. Cristina Coronel; ICT Phil. Operations EVP John Langford; Accenture Phils. Country Managing Dir. Beth Lui; Hinduja TMT HR Head Vida Arciaga; Netsuite Phils. GM-VP James Dantow; and PLDT Sales and Marketing SVP Eric Alberto. Comprehensive BPO Guide Europe: The Will Promote 100+ Companies Next Frontier Photos by Willie Bicera The local outsourcing industry has found another channel to market itself globally The Business Processing Association of the Philippines (BPA/P) is working with Asiatype, Inc. to launch the Offshoring & Outsourcing Directory Philippines 2008 by June. The directory is a Turn to page 4 Phil. BPOs Assess Impact of U.S. Economic Crisis and Peso Appreciation By Rory Visco Photos by Shishiir Manzo The consensus of many execs is that there are more reasons to be positive than apprehensive The strengthening of the Philippine peso has drawn raves and rants from all sectors in the Philippines in the same way that the U.S. economic slowdown and the dip in strength of the once-mighty U.S. dollar sent shock waves around the world. Not surprisingly, the Philippine currency’s unexpected appreciation also drew mixed reactions from information technology-business process outsourcing (IT-BPO) executives Turn to page 6 for Philippine BPOs By Dahl Bennett Team Europe leads the campaign via global promotion and case studies in new website The time is ripe. The infrastructure is in place. The reputation is solid. No question about it: the Philippines is more than ready to look beyond its dominant U.S. market and gear up for the untapped European market. Multi-billion market With a potential market that is worth US$40 billion, where does the Philippines—or Europe, for that matter—start and how? These are exactly the questions that triggered the formation of Team Europe last year. So far, the Turn to page 4 april - june 2008 BPA/P Stories The Oscars of the BPO ... Breakthroughs Continuation from page 1 Interview photos by SANY CHUA BENG CORONEL ATTY. BOB GUINTO Neil Elias, Country Director of Logica (Philippines), Inc. receives the Best New BPO Locator of the Year Award from Berna Santiago, Director , Property / Facilities of Colliers Philippines. At left, the awards organizers from the Canadian Chamber of Commerce in the Philippines (CanCham): (left, top) Sean Georget, CanCham Executive Director; and (left, bottom) Richard Mills, CanCham ICT Committee Head And that was just exactly what the awards hoped to achieve: promoting excellence in BPO in the Philippines. Events organizers noted that the awards were an opportunity for the industry to promote itself locally and internationally while encouraging healthy competition. That the winners were selected by their peers in fact made the awards comparable to the Oscars, comments Richard Mills, ICT Committee Head of the Canadian Chamber of Commerce of the Philippines (Cancham), and founder of the awards. “Like the Oscars, [the awards] promot(ed) standards of excellence within the companies, among their own ranks,” Mills tells Breakthroughs in an interview. And just like the Academy Awards, it was more of the industry promoting itself, he adds. The top three corporate winners were Sitel Philippines Corporation, BPO Company of the Year; Accenture, Inc. (Accenture Delivery Services Center), BPO Employer of the Year; and ICT Marketing Services, Fastest Growing BPO Company of the Year. The awardees The only individual award went to Mitch Locsin, former Executive Director of BPA/P and now Global Business Development Executive of Logica (Philippines) Inc. Locsin was given the ICT Individual Contributor of the Year Award for his involvement in leading, promoting, facilitating, or assisting companies in the sector. Among the top corporate winners, Sitel was recognized for achieving successes in stabilizing its functions and fostering development in operations brought about by the grand merger of two of the world’s largest BPO organizations: ClientLogic and Sitel. Along with its President Dan Reyes, the company has championed the Philippines in the international market as the ideal BPO location. Meanwhile, it was Accenture’s second time in a row to win in the employer Business Processing Association PHILIPPINES category, where it was ranked at the top or close to the top in all the judging criteria. The company was recognized for its aboveindustry retention rates, growth rates, and size. Organizers said that one of the most telling indications that make Accenture worthy of the award is that last year, the company promoted 3,162 employees, more than a fifth of its 15,000-plus workforce. Then there was ICT Marketing Services or the ICT Group, which began operations in the Philippines in 2003 and has since continually expanded in employees and number of facilities. Today, almost 40 percent of the company’s global production is handled by the Philippine operations. With strong client demand across vertical industries and global markets, ICT Group plans to expand its Philippine operations in 2008. Other winners include: Netsuite (Philippines), Inc., Best Mid-sized BPO Company of the Year (foreign-owned); Pointwest Technologies Corporation, Best Mid-sized BPO Company of the Year (locally owned); Logica (Philippines), Inc., Best New BPO Locator of the Year; and Hinduja TMT Ltd. Philippines, Most Innovative BPO Company of the Year. Sean Georget, Executive Director of Cancham, told Breakthroughs that this year’s awards distinguished between local and foreign BPO mid-sized companies. New York-listed NetSuite was chosen for providing high value employment opportunities for Filipinos. It also has been an enthusiastic promoter of the country as a BPO destination. Pointwest Technologies, a 100-percent Filipino-owned company, was recognized for its profitability; it has experienced continuous growth, which almost doubles every year, since it began. Starting with nine employees in 2002, Pointwest now has 400 staff. The younger Logica began in the Philippines in March 2007 with 15 employees. Now it has over 200 staff. The company achieved profitability on its ninth month of operation. For 2008, the Philippine operation has been designated Logica’s Global Center of Excellence for Human Resource Management and Enterprise Content Management functions, showing the quality of work done by the Manila teams in 2007. Hinduja TMT, part of the multi-billion dollar conglomerate Hinduja Group, provides a range of outsourcing solutions, including back office processing, contact center, and customized IT services. The company was recognized for having implemented pioneering innovations for their clients such as doing the company reviews, evaluation, and video scoring of clips of motor vehicle incidents. With such innovations, Hinduja Philippines was able to replicate its clients’ core business process offshore while maintaining the highest quality standards. Promotion of excellence The awards were an initiative of Cancham to promote the country and individuals, including Filipino talent. Georget observes that the awards being led primarily by business chambers indicates that it is unbiased. Events organizers say that being the second award ceremony of its kind in the country, this year’s event was much easier to put together. But the judges, who included some of the movers and shakers in the industry and government, had a difficult time deciding the winners because they were all worthy of the awards, notes Oscar Sañez, Chief Executive Officer of BPA/P, the awards co-organizer. Aside from Sañez and Mills, the judges included Don Felbaum, head of the ICT Committee of the American Chamber of Commerce in the Philippines; Henry Schumacher, Executive Director of the European Chamber of Commerce of the Philippines; and Celeste Ilagan, Executive Director of the Board of Investments. After the event, organizers say it is now up to the companies and individuals to take ownership of the awards and promote themselves and the country in the international community. “People who have heard of the event have put the Philippines in their minds,” says Mills. ”The Philippines has emerged as a primary site for outsourcing right now that people want to know what’s going on [in the industry].” In his closing speech at the awards night, Sañez underscored the significance of such accolades to the Philippine BPO sector: “Growth will come from promoting excellence in ourselves and our industry. It is about organizing programs like what we have tonight, cheering on our demonstrated capabilities that count, and challenging ourselves to surpass what has been demonstrated.” ARMIE DUARTE President heinz bulos Publisher cora llamas Editor in Chief william dizon Art Director DONNA LARAGA Executive Assistant DAHL BENNETT LYNDA CORPUZ ARTEMIO CUSI III VERONICA SILVA-CUSI MARIA MUTYA FRIO RORY VISCO Contributing Writers WILLIE BICERA SANY CHUA SHISHIIR MANZO Photographers The other categories He added that such awards serve as a means to benchmark the companies, individuals, and industry against themselves. The following were the other finalists per category: BPO Company of the Year 1. Accenture Delivery Service CentersPhilippines 2. AIG Business Processing Services Inc. 3. eTelecare Global Solutions PEACHIE G. CORTEZ Operations Director 16th Flr. IJ3 Burgundy Corporate Tower 252 Sen Gil Puyat, Makati City Tel: 856-4956 Fax: 856-4954 E-mail: [email protected] www.bpap.org Breakthroughs BPA/P Stories april - june 2008 Beth G. Lui , Country Managing Director of Accenture Inc., BPO Employer of the Year, receives the award from Rain Reyes, Enterprise Industry Head of Globe. Maria Cristina Coronel, President of Pointwest Technologies Corporation, Best Mid-sized BPO (local owned), receives the trophy from Fred Stacey, Director for EMEA of Touchstar. James Dantow , GM-VP of Netsuite (Philippines) Inc., Best Mid-sized BPO (foreign-owned), receives the trophy from David Swales, SVP, Business Banking of HSBC. John Langford , EVP for Philippine Operation of ICT Marketing Services, receives Fastest Growing BPO Award from Antonio Pio de Roda, Managing Director of Nortel Philippines. Dan Reyes , President of Sitel Philippines Corp. (right), BPO Company of the Year, receives the trophy from Eric Alberto, SVP and Head of PLDT Customer Sales and Marketing Group (left). 4. Proctor & Gamble Asia Pte LTd - GBS Manila Service Center 5. PeopleSupport (Phils.), Inc. 6. SPi 7. Sykes Asia Inc. 8. TeleTech Customer Care Management BPO Employer of the Year 1. Convergys Services Philippines 2. DELL Philippines 3. ePLDT Ventus 4. HSBC Global Resourcing (GSC Manila) 5. ICT Marketing Group 6. Telus International Philippines 7. Maersk Global Services Centres (Philippines) ltd. Best Mid-sized BPO Company of the Year - Locally Owned 1. Gurango Software 2. Source Partners/Environments Global Best Mid-sized BPO Company of the Year - Foreign Owned 1. Genpact LLC Philippines 2. Perot Systems www.bpap.org Fastest Growing BPO Company of the Year 1. ePerformax Contact Centers 2. Sitel Philippines Corporation 3. Teleperformance Most Innovative BPO Company of the Year 1. BOMA One Pacific Corporation 2. NCO Group 3. PeopleSupport (Phils) Inc. 4. Sitel Philippines Corporation ICT Individual Contributor of the Year Award 1. Dan Reyes, Sitel Philippines 2. Ernest Cu, President, SPi Organizers say the awards also fostered healthy competition because both finalists and winners are able to showcase the standards of excellence in the local BPO sector. A third awarding opportunity is in the offing next year with the possibility of including a lifetime achievement award to deserving individuals and companies. z Vida Arciaga, HR Head of Hinduja TMT Ltd. Philippines receives the Most Innovative BPO Award from Gerry Clark, Regional Head of TPI for South East Asia. The only individual award went to Mitch Locsin who received the Individual Contributor Award from Oscar Sañez , CEO of BPA/P. Business Processing Association PHILIPPINES april - june 2008 BPA/P Stories Breakthroughs Europe: The Next Frontier for Phil. BPOs (L-R) Oscar Sañez, BPA/P CEO; Neil Elias, CEO, LogicaCMG Philippines; Stephanie Weber, Business Development Manager, EITSC and Project Leader of Team Europe; and Henry Schumacher, Executive Vice-President, European Chamber of Commerce of the Philippines paths are slowly being paved for the big and challenging journey ahead. The initial focus is on the United Kingdom, Scandinavia, the Netherlands, and German-speaking nations, which have diverse outsourcing needs that the Philippines can readily serve. “The European companies that are here which I have talked to are very happy,” says Stephanie Weber, Team Europe’s Business Development Manager, who has been in the country since last year to take the lead in plotting the team’s long-term goals. “Many of them plan to extend their business and that shows that the Philippines can handle the European (market) and the Europeans can handle the Philippines.” Europe had one foot in, so to speak. For some years now, big multinational companies based in Europe have been tapping the Philippines for their outsourcing needs, mainly back office services. Siemens, Atkins, Deutsche Bank, Ericsson, Henkel, HSBC, Nestlé, and Shell are just a few of them. Yet despite their presence, the European market here only makes up ten percent of the US$4.5 billion BPO industry in the Philippines compared with the 65-percent share of the U.S. market. Weber says that Europe has been “slow and conservative” in looking at outsourcing and offshoring, but since last year companies there have been catching up. “Europe has caught up, and it makes sense for Europe to come in as it will grow still in the future,” she says optimistically. Team Europe’s main goal is to promote the Philippines as an established outsourcing location offering world-class service in the Business Process Outsourcing (BPO) and Information Technology (IT) sectors. At this point, the team is still in the very first stages of implementing its long-term goals but, even then, it has started laying the foundation. Some of its notable achievements are: the organization of journalists’ visits, which has produced “very positive articles in the European media”; winning the United Kingdom’s National OutsourcingAssociation (NOA) Award; and the creation of the website, www.team-europe-philippines.com, to spread information about the Philippines and its BPO/IT industry and to become a venue for case studies and testimonials of successful European businesses here. “It will take a couple of years (to reach our goals) but it’s ongoing,” Weber says. She also notes that “the whole BPO environment changes” and Team Europe wants to make sure that the Philippines and Europe are “moving in one direction.” Media play an important role in early goals of Team Europe as it faces the challenge of changing the continent’s negative impression of the Philippines, which is often associated abroad with coup attempts and Abu Sayyaf kidnapping reports. “We haven’t gone out (of the country) so far and we are planning to bring a delegation to Europe in the second half of the year,” says Weber. “We also want to invite more media people there (Europe) to give them an idea [of how the BPO/IT industry is thriving].” Making presence felt Another crucial strategy to achieve its vision is for the Philippines to exert more effort in making its presence felt in European market. “What the Philippines has to do is increase its presence there,” says Weber. She paints the picture happening in trade shows and events in Europe: “If you are an interested European company and you get approached by five Indians and five Chinese companies, then of course you consider first whoever is there.” She adds that Team Europe is there to support the local outsourcing businesses by helping build that necessary and crucial awareness for the Philippines in Europe. “Companies here, especially the smaller ones, don’t know how to start [breaking into the European market] and that’s where Team Europe comes in,” she says. Team Europe is in the thick of planning outbound missions for next year where the Philippines can participate in relevant trade shows, events, and conventions in Europe. “We also want to get more media coverage and get the IT associations involved as well,” says Weber. To do all these, funding is necessary and Weber admits that budgetary constraints have been a major roadblock in pursuing some of its goals at a faster pace. This has also been the reason why the team hasn’t been to Europe to promote the Philippines apart from last year’s trip to London to receive the “Best Offshoring Destination of the Year” awarded by the NOA. Help, financial or otherwise, is needed not only from existing members (Board of Investments, BPA/P, and the European Chamber of Commerce of the Philippines, to mention a few), but from outsourcing companies who want a share in such a big, almost untouched, pie. “We are happy to support these interested companies but they have to help in the funding,” Weber stresses. Active participation in the team’s newly launched website can literally go a long way and get the right information straight to Europe in order to win their confidence and get them to invest in the country. “We would like to ask the companies to participate in giving information (case studies) and testimonials through the website so that it can grow and help the Europeans who want to come here,” says Weber. “We want to cover as many companies as possible to show how big it really is.” How far Team Europe can go may depend on how far the local companies are willing to participate. It takes two to tango as they say, and while there’s still plenty of time, it is best to go out there and show that, apart from India, Vietnam, and China, there’s also the Philippines. “Present yourself, show the Filipino face out there,” Weber urges. z Comprehensive BPO Guide Will Promote ... comprehensive guide to the information technology/IT-enabled and business process outsourcing (BPO) services available in the Philippines. More than 100 companies offering these services will be included in the directory, which will be updated annually. At the soft launch-cocktails introducing the project last March 31, Asiatype, Inc. Managing Director Philippe Saurel said the directory would be a good marketing tool for the Philippine BPO industry. He added that it took Asiatype and BPA/P two years to work on the directory, which retails for US$295. BPA/P Chief Executive Officer Oscar Sañez said the directory will benefit local BPO companies that are looking for clients from around the world. The soft launch was preceded by the BPA/P monthly membership meeting where Sañez told members that the directory contains guidelines to help firms set up a BPO, including guidelines in filing for applications for tax perks under the Omnibus Investment Code of 1987 Executive Order 226. Some BPOs that choose to locate in designated and proclaimed economic zones are entitled to incentives, including income tax holidays. The directory also has a list of these economic zones, including updated availability of space, Sañez added. Companies included in the directory are classified according to the priority sectors identified jointly by the government and the private sector, namely: customer contact center, software development, computer Business Processing Association PHILIPPINES Continuation from page 1 Continuation from page 1 graphics / animation / publishing services, information processing and management, engineering design, and support services. Information on each company includes those on its market capitalization; revenue; year of establishment; address and sites; email address; contact person; and website. These basic data can help a potential investor looking at the Philippines decide which company to work with. There is a section as well that contains a brief profile of each company, its specific areas of operation, and members of the management team. To further help potential partners decide in choosing a Philippine-based BPO as a partner, the directory has a list of investment promotion agencies and industry associations. z By Veronica F. Silva-Cusi Clockwise: Oscar Sañez, BPA/P CEO speaks on the importance of the O&O directory; Philippe Saurel, Managing Director of AsiaType Inc., explains the partnership that created what he says can be an important tool for global marketing; and BPA/P members meet and mingle prior to the launch. www.bpap.org april - june 2008 BPA/P Stories Breakthroughs Phil. BPO execs Assess Impact of US ... during a breakfast forum organized recently by the Business Processing Association of the Philippines (BPA/P). The forum, entitled “Peso Strength and U.S. Economic Woes” and held at the prestigious Tower Club in Makati City, gathered executives from major IT-BPO firms in the country, including top BPA/P officers and economists from the private sector and government. The event tackled the possible impact of the U.S. currency situation and subprime crisis on the overall health of the IT-BPO industry in the country. Romeo “Romy” Bernardo, President of Lazaro Bernardo Tiu & Associates, a consultancy firm, predicted that Philippine GDP growth will be driven by the services sector, with inflation moving higher than the government’s own forecast of 3-5 percent. He added that the country’s current account surplus will again be driven by remittances from overseas Filipino workers (OFWs) and also by the IT-BPO sector, which he said will continue to expand. But University of the Philippines economics professor Raul Fabella was a bit more apprehensive about the Philippine peso appreciating at this time. “We shouldn’t lead the currency appreciation race but should be closer to the bottom,” he said. “For a country that has high costs of power, we don’t have the right to lead appreciation.” Diwa Guinigundo, Bangko Sentral ng Pilipinas Deputy Governor, however, disputed Fabella’s contentions. In his presentation, he showed that the peso’s cumulative appreciation from 2001 to 2008 was pegged only at 20 percent to land at the middle range among 10 countries they studied. It was low in 2001, he said, then went up in 2005 due to the passing of the extended value-added tax (E-VAT). But it still improved thereafter. In the ensuing panel discussion, select panelists from various IT-BPO companies and allied sectors like the real-estate sector aired their views on the U.S. economic situation and the strong Philippine peso. Marife Zamora, General Manager of Convergys Philippines, was emphatic in her statement during the discussion: “I believe there’s no cause for any grave concern. We’ve been doing well for our clients. Plus, despite the looming recession, we believe more jobs will be sent to the Philippines because it is a lot cheaper and the quality of work is superb.” In fact, Zamora said that Convergys already has a total of nine sites in the country, with plans of adding more this year, bringing their employee base to around 13,000 people. “We’re practically larger than India now,” she said, referring to the company’s India operations. She also gave credit to the government’s efforts in extending financial incentives to investors, given the U.S. recession, and relayed that Convergys is coming up with agreements with its clients on how to mitigate the risks of this cyclical economic condition. “For us, it’s the people, not the exchange rate, that remains a concern,” she stressed. “We believe that the U.S. dollar will rebound eventually.” James Donovan, President and Chief Executive Officer of American Data Exchange Corp. (ADEC), echoed Zamora’s views, saying that the Philippines’ IT-BPO companies need to position themselves as a strategic partner to their clients and at the same time, move to higher-value business work in BPO, like finance and engineering. Strategy and flexibility “BPO is a vital cog in the national economic development and growth of the Philippines,” he said. “The Philippines has the talent; we just need to position ourselves strategically to mitigate any foreign exchange movements.” Nora Terrado, Country Manager of Headstrong Philippines, a software solutions and services provider, had a slightly different view. She said that the effect of foreign exchange fluctuations on how companies run their business is a fact of life. Thus, companies should innovate more and focus on fundamentals and competitive advantage. “It’s the more practical approach. We just need to be agile in fighting external pressures,” she added. In the meantime, the Chairman of property developer CB Richard Ellis Philippines, Rick Santos, was even more optimistic of the impact of the economic situation in the United States and the peso appreciation on the IT-BPO industry. “With what is happening in the U.S. economy and the U.S. dollar, coupled with the strength of the peso, we see positive impact on the Philippine ITBPO industry,” he said. “A stable currency is a plus for investors.” He only lamented the fact that while there are a lot of successful business stories in the Philippines, these are generally not known to Economists and BPO execs who lent their expertise in the forum included: BPA/P CEO Oscar Sañez (topmost photo, right); Romy Bernardo of Lazaro Bernardo Tiu & Associates (top center); Frank Holz, CEO of Outsource2Philippines (top, left); Monette Hamlin of Hamlin-Iturralde Corporation (top, right) and BSP Vice-Governor Diwa Guinigundo (side, right). Business Processing Association PHILIPPINES Continuation from page 1 many people. “We need more visibility, more marketing efforts for the Philippine brand of BPO service,” he said. Ray Espinosa, Chairman of SPi Global Solutions and concurrently President of ePLDT, for his part saw continued growth of about 15-20 percent for this year. He said that SPi is now moving to performance-based compensation in order to offset high costs of labor and cost of living. Assessing the impact of the U.S. economic situation and currency performance on the IT-BPO industry, he said, “The best way to mitigate cyclical economic conditions like this is to really sell (market) more to clients.” Airing his views as a venture capitalist, Martin Lichauco, Vice-President and Country Manager of the Philippine office of Walden International, a leading global venture capital firm, said that now is the right time to invest. “The BPO industry will definitely stay, no doubt about it. Making investments in this industry will remain top priority for us,” he said. BSP Deputy Governor Guinigundo summed up the impact of the U.S. economic situation on business: “The ultimate impact of a possible U.S. recession is that it may even encourage more companies in the U.S. to outsource to other countries in order to lower their operational costs.” Based on the BSP data, the United States represents 67 percent of foreign direct investment in and about 86 percent of export revenues for Philippine IT-BPO firms. These concerns about the U.S. economic slowdown, the strong peso, and the idea of marketing the Philippine brand of IT-BPO service, explain why, according to BPA/P Chief Executive Officer Oscar Sañez, the industry association is trying to diversify its members’ client base and broadening its horizon through various missions and road shows to promote the Philippine IT-BPO industry in other markets like Europe. “We have already established what we call ‘Team Europe’ for this purpose, with the able help and support of the European Chamber of Commerce of the Philippines,” he said. [See related story in The Front Page – Ed.] “We are setting our sights and will be making trips to countries like the United Kingdom and Germany, perhaps even France.” z www.bpap.org BPA/P Updates april - june 2008 Breakthroughs 2008 Target: Forty Percent Growth Needed to Reach US$7 Billion in Revenues By Gigi Virata BPA/P Executive Director for Information and Research Continuing demand for Filipino services and a huge untapped manpower supply outside the NCR allay the apprehensions brought by the U.S. economic slowdown a direct result of the slowing U.S. economy. Yet companies are also reporting new client interest in offshoring and outsourcing as a means to cut costs—another direct result of the U.S. economic slowdown. As always, there are the pessimists and the optimists. If the Philippine IT-BPO industry is to capture 10 percent of the global market share by 2010, it needs to grow by 40 percent in 2008 and 2009. Can it do this with the U.S. economy in recession? Economists tell us that Europe will also be affected, and that global output will be lower this year. The good news from the economists, however, is that Asia will be a bright spot and stimulus will come from emergent economic giants China and India. Economists also say that the recession will be not be as bad as those experienced in the past because the U.S. economy now primarily runs on services, and this sector tends to rebound more quickly than the industrial or manufacturing sectors from economic slowdowns. From a more micro perspective, we hear similar good news–bad news refrains. Some companies have reported that call volumes have decreased in the first quarter of 2008— Reasons to remain positive Those who take the darker view say that the stronger peso has eroded margins to a point where MNCs will naturally look for cheaper places to do business; if not this year, then in the next few years. Their suggested strategy is for Filipino managers to learn the business as best they can and build an industry based on homegrown entrepreneurship and talent. The alternative, they say, is to pack up all your Filipino agents and move them to an isolated village in China or Vietnam to enjoy liberal incentives and to guard them against poachers. The optimists, meanwhile, say that they have weathered the shock of the rapid appreciation of the peso and rather than folding or packing up, they are instead planning to expand—some very rapidly. They report interest from new clients in addition to renewed business from current ones. Our experience in BPA/P this quarter Year Export Revenues ($000,000) 2004 2005 2006 2007 2008 (target) 2010 (target) 1,475 2,420 3,257 4,875 6,760 12,999 puts us on the side of the optimists, not just because it is our job to remain positive, but because we continue to receive almost nonstop requests for presentations to clients— new ones or those considering expansion; requests for information from both potential clients and suppliers; and reports of new contracts closed. A favorite anecdote for this quarter is of an animation contract lost to China because of cost, only to be regained because of quality. Supply-side issues also have two faces. Recent media headlines have been proclaiming a shortage of skilled workers for the IT-BPO industry. It would be silly to deny that the competition to attract talent is fierce. But like in many “shortages,” we suggest that the issue could be more related to distribution than to lack of supply. Eighty percent of the industry is in the NCR (and mostly in Makati City), while 75 percent of Growth Rate (%) 64 35 50 39 new graduates are outside of the NCR. But beyond the simple math there are more anecdotes that can only inspire. There are pockets in the NCR that are still virtually untapped, places reporting 100 walk-in applicants a day! There are remote places in Luzon that are rich in students who score higher in English-language tests than in the NCR! There are state-run colleges and universities that produce thousands and thousands of high-caliber graduates eager to join and stay in BPOs! And the stories of how well Filipinos learn and perform at global standards— our agents, IT professionals, animators, engineers, accountants, lawyers, medical practitioners—continue to spread. The secret of how good Filipinos are is not yet fully out there. But soon, it should be. z Comments and questions are welcome. Contact: [email protected]. BPA/P May Meeting The Business Processing Association of the Philippines (BPA/P) held last May 7 a special membership meeting in which the Board of Directors submitted to its members a set of proposed amendments to BPA/P’s Articles of Incorporation for final approval and the adoption of a new set of By-Laws. The proposed amendments called for the adoption of a few changes particularly in how the BPA/P should organize itself, among other things. After gathering all the votes of the members present during this special meeting, the amendments of BPA/P’s Articles of Incorporation and the adoption of the new BPA/P By-Laws were overwhelmingly approved. z Susan Vidal, Consultanf for eTelecare sandwiched by two BPA/P Exec. Dirs.: Jamea Garcia (left) and Cathy Ileto (right) Zyra del Sol (left, seated) and Rona Quilban (standing) of BPA/P with Lylah Fronda of Rockwell Land (seated, right). Business Processing Association PHILIPPINES A hearty dinner, cocktails, and interaction preceded the serious business for the night. L-R: Zyra; Bea Locsin, Training Specialist, People2Outsource; Nette Roselo, BPA/P Administrator; Cathy, who handles BPA/P’s External Relations; Nina Estenzo, and Rona. Rona (left) with Atty. Joan Musico of NMGRA and Atty. Bob Guinto, BPA/P Corporate Secretary and NMGRA. www.bpap.org BPA/P Updates Breakthroughs april - june 2008 From the CEO Desk Full Speed Ahead In the industry pursuit to drive a strategic plan, we had to start with building the strong foundation required to mount our programs. This is why we have spent a significant amount of time doing the following: tackling the business of planning and organizing; such items like writing and publishing the industry roadmap; enrolling stakeholders and institutions enrolling the public sector, other allied industries, and the academe; staffing Team 2010; collaborating with all partner associations to create a unified front; and finally, ratifying the Association by-laws to formalize all the structural and organizational changes. As we take on the next phase of work behind the industry roadmap, it is important to get focused on the high-leverage items that we have so defined in our roadmap. The three main themes of the roadmap should now be moving on to the fast lane. In the Talent area, our leadership initiative in driving the distribution of the Training-for-Work Scholarship vouchers in partnership with TESDA is on “overdrive” with close to 10,000 vouchers released after two months. The ADEPT and ELITES Programs (talent partnership with universities) are now at roll-out stage with 15 universities adopting the industry program beginning with the new school term in June. The post-graduate program for middle management talent is also at the intermediate stage of development with the country’s top two graduate schools leading the charge. Our commitment to accelerate the development of Next Wave Cities in partnership with the Commission on Information and Communication Technology (CICT) and the Department of Trade and Industry (DTI) is now at a stage of preparing to release the publication of the country directory of all BPO companies in July and the O&O Cities Ranking in October. All the important research initiatives related to building pertinent industry data on relevant issues are also at fever-pitch level. Finally, the key components of our Business Environment initiatives have also accelerated their pace. The international conferences and trade missions schedule is more aggressive and more representative of various sectors in IT-BPO and with greater coverage in terms of target geographies. On top of two major conferences and a major trade mission to the U.S., we now have programmed events in Europe (primarily UK and Germany), Australia, as well as neighbouring countries Singapore, Taiwan, and Japan. Our recent IT-BPO forum in Sydney and Melbourne has proven that we can take on an aggressive country-sell program on the back of a combined DTI/CICT/BPA/P partnership strategically focused 100 percent on our sector and sharply addressed to a select group of high-potential companies in the audience. We can take this highly successful formula to all our future missions. Our efforts to get our legislative agenda get support from both houses of Congress are also starting to pay off. The tax incentives are almost certain to pass while our position papers on labour code amendments, the data privacy bill, intellectual property rights, and cybercrime have all been getting good traction and support. The BPA/P agenda has just become even more exciting. BPA/P’s Team 2010 working closely with the Power Committees and partner associations are just thrilled to see growing support for our many initiatives. As we drive toward more positive results, we will even see stronger commitment to do even more. z BPA/P and DDI Partner for Global Leadership Survey By Zig Rabara, DDI Leadership, its development, stages of transition, and current state are the areas covered BPA/P and Development Dimensions International (DDI) partnered for the 20082009 Global Leadership Forecast. The Forecast is DDI’s fifth study of practices related to effective leadership, a research series that began in 1999. It features responses from both HR professionals and leaders. This year’s study gathered a total of 1,493 HR responses and 12,208 nonHR leader responses worldwide, giving a truly global benchmark for leadership effectiveness. BPA/P and DDI worked together to gather industry data on leadership. From the 105 Philippine companies represented in the study, 28 companies came from the BPO industry. Through a unique BPA/P survey portal that was launched late last year, a total of 26 HR and 347 non-HR leaders responded to the surveys. As a result, an industry report will be prepared by DDI with leadership norms that www.bpap.org can be compared against both global and local norms in the following areas: the state of leadership today, leadership development, and transitions in different levels of leadership. DDI would like to thank BPA/P for their invaluable support in this benchmarking initiative, particularly BPA/P Information & Research Director Gigi Virata. Celebrating 30 years in the Philippines, DDI is a global human resources consulting firm that helps organizations close the gap between today’s talent capability and future talent needs. DDI’s expertise includes designing and implementing selection systems, and identifying and developing front-line to executive leadership talent. With more than 1,000 associates in 76 offices in 26 countries, DDI advises half of the Fortune 500. To learn more about DDI and how it can help your organization, call (632) 638-2061, email [email protected], or visit www. ddiworld.com/ph. z Business Processing Association PHILIPPINES 10 BPA/P Updates april - june 2008 Breakthroughs Share your Success Story! By Stephanie Weber, Business Development Manager, European IT Services Center “It is crucial to populate the newly launched information portal with case studies and testimonials.” The next milestone of the Team Europe activity plan is achieved: The Team Europe website has been launched with a press conference on April 9th hosted by Team Europe members Henry Schumacher from the European Chamber of Commerce in the Philippines (ECCP), Oscar Sañez from BPA/P and myself, as well as Neil Elias from Logica representing our industry partners. [See related story on The Front Page - The Ed.] The news about the website was received very well by the local media. This reflects the interest of the Philippines’ business community in Europe. First inquiries from European companies also show that there is interest in the Philippines. The most visited pages so far are the case studies and testimonials, which are the heart of our web portal. They show prospects in Europe that the Philippines is already a well-established offshoring destination for European firms of all sizes. One important fact is that these companies have grown rapidly in the last years, making it clear that the decision to invest in the Philippines is a right one. With these success stories, we address in particular small- and medium-sized companies in Europe that, in comparison to big corporations with much more resources, might find it more difficult to get a broad picture of the global offshoring market. Finding all the worldwide known companies already established in the Philippines gives them confidence that the advantages of the industry are really existing here and are not pure promotion. But the launch of this information portal was just the start. What is crucial now is to populate it with more case studies and testimonials. The company overviews briefly summarize the main facts of publicly known information. In this way, the Team Europe website gives as much information as possible while respecting the confidentiality requirements of companies that it features. We encourage you to browse through www.team-europe-philippines.com and share your success story to improve the reputation of the Philippine BPO industry in Europe. We appreciate case studies with or without testimonials from all European companies as well as global third-party providers and Philippine companies that already serve European customers. Global and local third-party providers can especially benefit from the Team Europe website as a free media tool to present their companies to interested firms in Europe. A strong BPO industry with a diversified customer base will be advantageous for all. A small contribution like sharing your experience can have a big impact on the Philippines’ BPO industry. I am looking forward to hearing from you. For questions and more information, please contact [email protected] or (632)845-1324. z BPA/P Initiatives Gain Ground in Q2 By Cathy Ileto BPA/P Director for External Relations the delegation’s “Core Team” composed of members of the BPA/P executive team and government officials. The Core Team helped guide Admerex on several areas, including expansion plans. Afterward, the group proceeded to the NSW Trade and Investment Centre for the NSW IT Industry briefing, where the members talked on issues such as the talent capability of the Philippines, its exceptional quality, and the possibility of doing IT-BPO business in New Zealand. Next came a presentation by Dr. Catriona Wallace, Chief Executive Officer of callcentres.net, an online publishing, news and research firm. Wallace practically vouched for the Philippine IT-BPO industry by touching on the country’s potential as a global IT-BPO destination. As in Melbourne, a business forum followed and was later deemed a resounding success since it resulted in the intention of three Australian companies to visit the Philippines and explore possibilities of locating here. A “networking cocktails” event between the delegation and members of the Australia-Philippines Business Council also opened doors for Philippine firms wishing to go into business Down Under. z L-R: Michelle Sanchez, DTI Trade Representative in Sydney; Oscar Sañez, CEO, BPA/P; Geoff Daly, Head of Human Resources, Admerex; Millie Telan, President, Australia-Philippines Business Council (APBC); Rob Yeldon, CEO & Director, Admerex; Cathy Ileto, External Relations Director, BPA/P; and Luis Ignacio Lopa, Business Head, PLDT Business Solutions. A roadshow to Australia promoting Philippine BPOs was the highlight The Government Committee, headed by myself, together with our legal counsel, the Quisumbing Torres law firm, which is affiliated with Baker & McKenzie, and BPA/P Trustee-in-Charge Karen Batungbacal, is now in the process of consolidating proposed changes to specific pieces of important legislation that can affect the information technology-business process outsourcing (IT-BPO) industry in the country. These include proposed amendments to the Philippine Labor Code, the Data Privacy Bill, and the Tax Incentives Law. In the area of internal marketing, initiatives are currently underway in partnership with Ms. Jamea Garcia, BPA/P’s Executive Director for Talent Development. Similar efforts are also being undertaken for external marketing, particularly the “e-commerce” link for the BPA/P website and the final testing of the BPA/P Board-approved new tagline; then there is BPA/P attendance in major international conferences like the CommunicAsia in Singapore this June and the World BPO Forum in the United States this July. The second quarter of this year, however, was marked by the very successful Philippine IT Services Roadshow to Australia, held in Melbourne and Sydney last April 28 to May 2. BPA/P, together with important Philippine IT-BPO companies, met with representatives Business Processing Association PHILIPPINES from various Australian companies and agencies. The activities started with the Philippine IT Services Business Forum in Melbourne highlighted by BPA/P CEO Oscar Sañez’s presentations as well as those of Secretary Ray Anthony Roxas-Chua of the Commission on Information and Communications Technology (CICT). After the presentation came a panel discussion, in which members of the delegation participated. The day was capped with a visit to the Stellar Asia Pacific office where, in a meeting with BPA/P executives, the company bared expansion plans, asked for relevant data about the Philippine IT-BPO industry, and expressed its desire to become a BPA/P member. Front row, l-r: Arup Maity, President and CEO, BlastAsia; Gerry Topacio, Chief Operating Officer, Diversified Technology Systems, Inc.; Dennis Guda, Segment Head (BPO), Globe Telecom ; Cathy Ileto, Executive Director for External Relations, BPA/P; Atty. Gil Zerrudo, Partner, Quisumbing Torres; Luis Ignacio Lopa, Business Head, PLDT Business Solutions; Paul Malcolm Jones, Orange & Bronze Software Labs; and Jim Griffin, CEO, Polaris Vanguard. Back row, l-r: Sean Argos, Business Development Manager, Tata Communications; and Alan McCartney, Senior Manager, Global Enterprise Solutions, Tata Communications. Trip down under The Melbourne trip also included a roundtable meeting with the prestigious Australian IT Industry Association (AIIA) at the Multimedia Victoria, where they expressed their desire to conduct high-level networking activities with BPA/P members, along with significant data and best practices exchange. The group then went on to visit Australia’s Center for Health Innovation (CHI) and the National ICT Australia (NICTA) at the Melbourne University. The Sydney leg, meantime, began with a visit by the delegation to the Australian Technology Park, followed by a meeting between Admerex, a provider of financeand credit-risk management solutions, and Arnul Pan, Country Manager, Phil. Airlines Australia (left) and Xavier Ugarte, Director, Hill Rogers Australia Jim Griffin, CEO, Polaris Vanguard (right) and Ed Alcordo, Director, First Pacific Capital Australia www.bpap.org 12 april - june 2008 Executive Profile A Stalwart Friend of the Philippine BPOs His BPA/P colleagues cite the contributions of the ex-Membership Committee Chairman to the O&O industry on the eve of his re-assignment By Artemio F. Cusi III Photos by Shishiir Manzo Anand Chopra, former Citigroup Business Process Solutions (CBPS) President and CEO, could not hide the joy of being a witness to the development of the offshoring and outsourcing (O&O) industry in the Philippines. “I have seen it grow like a baby,” says the 43-year-old Chopra, who also predicted that the Philippines would exceed industry expectations in Roadmap 2010. The Indian senior executive was recently transferred for a new assignment to the regional office of Citi in Singapore after the first quarter of 2008. Despite the status of the Philippines in 2003 as still an emerging destination of O&O investments, Chopra noted the relative ease of setting up CBPS in the Philippines upon his arrival in March 2004. Part of this accomplishment may be attributed to the managerial skills honed through his 18 years of working for Citibank. Chopra, a certified public accountant, also backs up his professional track record with an MBA degree from the Indian Institute of Management in Ahmedabad. CBPS is the provider of business process outsourcing (BPO), call center, and other IT and IT-enabled services such as CitiPhone Banking, Credit Operations, and Transaction Services for Citi’s Global Consumer business in countries like Australia, Guam, the Philippines, and USA. “I had to set up a company for Citi. It was relatively straightforward and easy in setting it up, but the more important thing was to quickly make it world class and successful.” Chopra reflects back on the start-up phase. At that time, Chopra says, the crucial question for investors mulling over the viability of the Philippines was: should we go there? “But today, it is ‘the’ destination. Nobody doubts the capability of the Filipino workforce,” he says, predicting that there will be good supply of middle managers in five years. In recounting his specific experience with Filipinos working for CBPS, he further says, “Filipinos are playing global roles in a global company.” Decisive, committed, low-key Business Processing Association Philippines (BPA/P) colleagues attest to Chopra’s selfless yet humble devotion in striving to achieve the goals of the organization even in its fledgling stages of development. During those times, BPA/P CEO Oscar Sañez already spotted Chopra’s ability to quickly react to important matters. “Anand has been a very committed member of BPA/P. He came at a time that BPA/P was in formation stage and quickly decided that he could contribute his personal time, talent, and effort in the membership committee as its Chairperson,” Sañez says. Chopra’s commitment to BPA/P did not go unnoticed despite his low-key style of work. “He was one of those who didn’t ask for anything in return,” says Sañez. “And in his own humble way, he would not attract attention to himself and instead, gave credit to the many Filipino friends he had made and how they have helped make his life in the Philippines quite comfortable and enjoyable.” Business Processing Association PHILIPPINES Breakthroughs Deep concern for industry More than being a contributor to the growth of BPA/P, Chopra is recognized by his fellow industry players as an active participant and partner in harnessing the O&O potential of the Philippines and giving a premium to the work of Filipinos. “But the really amazing quality of Anand is his deep and real concern for the industry and belief in the Filipino talent,” Sañez says. “He realizes the true potential of our country in becoming a leader in this industry and he committed himself to promoting this to everyone he can reach out the message to.” Promoting the achievement of the Philippines in the global arena endeared Chopra to Filipino friends who greatly valued his efforts. “He became an ‘ambassador’ for Philippine outsourcing even without the official title, and all the work he did in this end had been voluntary and drawn straight from his strong personal belief,” Sañez says. Cherishing bayanihan Chopra gained the respect and admiration of his peers, not only for his professionalism, but also that rare fondness shown by a handful of foreigners for the Philippines and its people. “Anand has been very single-minded throughout about contributing to creating a solid foundation for BPA/P and to helping propel its growth, firmly believing in its great value to the Offshoring and Outsourcing Industry in the Philippines,” Guillermo says. “But beyond that, I surmise that that kind of motivation on his part was equally spurred by his genuine fondness for the Philippines, which he and his wife have grown to cherish, by his own admission, as ‘home’,” Guillermo stresses. For Chopra, working in the Philippines added to his sense of pride and accomplishment, considering that his stint was a once-in-alifetime experience. Like a genuine leader, he believes that it is not by the efforts of one man alone, but by the collective action of a group that a goal, whether social or corporate, could be achieved. It is thus not surprising why he could relate very well to the bayanihan or the cooperative spirit of the Filipinos. “I like the spirit of volunteerism in the Philippines,” Chopra says in describing his experience of engaging in community development activities for the Sibol Schools of Gawad Kalinga (GK) communities and the environmental preservation efforts for the La Mesa ecological park. Indelible mark of friendship Anand Chopra: the unofficial “ambassador” of the BPOs in the Philippines which he and his wife have cherished as a second “home.” KSearch President and CEO Manuel Guillermo also notes the soft-spoken but firm nature of the man. “My having joined the BPA/P Membership Power Team’s start-up two years ago gave me the opportunity of working with Anand and have since then enjoyed what I quickly observed of Anand’s powerful blend of subtle and low-key leadership style as its Chairman,” Guillermo says. Democratic,results-oriented leadership To prove that a leader need not espouse dictatorial tendencies just to be efficient, Guillermo points to Chopra as the epitome of a democratic manager and results-oriented leader. “He made things happen, yet made sure that everyone in the team had been consulted and gave his or her input to the process,” Guillermo says. “It was easy for me to gravitate to Anand’s persona: always exuding humility and charm, yet so competent and effective, never losing focus on what needed to be done.” Sañez shares Guillermo’s view and takes note of the seriousness that Chopra carried while taking the lead role as Membership Committee Chairman. “He took this role quite seriously and in a short span of time, he delivered well ahead of his promise of expanding our organization to more than 200 companies,” the BPA/P CEO says. Sañez also emphasizes that despite its small number of volunteers, the membership committee under Chopra became the most active in BPA/P. From Chopra’s own pronouncements, it is clear that he enjoyed his tasks at BPA/P. “When you work with a lot of professionals, it feels good. BPA/P gave me opportunities to work with colleagues in the industry,” he says. Chopra credits the cooperation of the members for much of its achievements. Particularly, he valued the vocal character of the membership committee. “People are not afraid to speak up. I owe it to the team,” Chopra says. His friendship with Chopra has transcended professional partnership, according to Sañez. “Anand had not been just a colleague or a partner in the industry. We have found a true friend in Anand. I know the Philippines has made a real mark in his heart,” he says. Those bestowed with Chopra’s friendship continue to hold it with high regard even for years to come. “I am proud and privileged that Anand and I have become very good friends, transcending BPA/P and our respective companies’ interest,” Guillermo remarks. “I will miss him immensely as I know everyone whose lives he has touched one way or the other.” BPA/P board member Rainerio “Bong” Borja relished those light moments, especially when taking respite and enjoying culinary delights, with Chopra and Guillermo. “Surprisingly, we share the same gastronomic cravings of various Indian and vegetarian cuisines, and of course, fine wines. I will miss our threesome monthly eat-outs with Manny Guillermo,” Borja says. Indeed, they could not prevent the reassignment of their dear friend, in the same way that their hands are helpless to hold the flow of a stream. But the industry colleagues of Chopra are comforted with the fact that their lives are forever immersed in the flow of that friendship. In bidding farewell to Chopra, Sañez leaves a heartwarming message to his friend: “Anand, please know that you have made an indelible mark here as well.” z www.bpap.org Breakthroughs In the Spotlight april - june 2008 13 The Games Development Industry By Maria Mutya Frio Photos by Shishiir Manzo The Philippines’ game development capability is getting second-mention next to Singapore, and our talents are drawing in clients Who knew that tinkering with the computer and trying to make your own computer game as a hobby would lead to a full-fledged, legitimate business? The captains of the industry did. Now these young gamers-turned-entrepreneurs are fueling the growing enterprise of developing games and outsourcing their services to produce video games. Although game development has had a long history in more advanced countries, its genesis in the country harks back to hobbyists who decided to make a real business out of making games. People who were passionate about games became entrepreneurial, set up their own outfits one after another, until the industry grew by itself. It is comparatively small vis-a-vis other business process outsourcing (BPO) industries like contact centers or software development. But the gaming industry is becoming a very promising commerce. In fact, it is poised for the potential global revenue worth as much as US$1 billion by 2010 that will be raked in from outsourcing games alone. Suffice it to say that the Philippines will enjoy a multimillion-dollar share of that huge profit. But moving from the game room to the boardroom cannot be too easy as changing players in a role-playing game (RPG). One has to be able to find the right niche, in this case overseas, before the business is recognized locally. Gabby Dizon, one of the founders of Flipside Games, a Philippinebased company specializing in full-scale development and outsourcing services for the game industry, confesses to encountering countless obstacles before his company got its foot in the door. “Not too many people have done what we are doing so it’s really hard to explain what your company does,” he says. “When you’re trying to do business, this is a hard problem. Almost from the start, we were forced to do outsourcing abroad because the companies that could understand what we were doing are companies that needed our services abroad.” Breaking ground The gaming industry broke ground in 2004 when Anito Entertainment, for which Dizon worked as a game designer before setting up his own outfit, developed the first Philippine-made, single-player, role-playing game (RPG). Anito: Defend A Land Enraged bagged the Innovation in Audio Award and became a finalist for the Open Category at the Independent Games Festival in the U.S. Showcasing Filipino talents and skills in regional and international conferences made the Philippines a viable outsourcing destination for developing games. Locally, Dizon credits the success of online games brought in from Korea for paving the way for gaming to become more accessible to the public. He, along with his colleagues in the sector, is also educating the industry, spreading the message that it is indeed possible to make games locally. At a steady pace, the Philippines’ game development capability is achieving a greater presence in the region, often mentioned next to Singapore. Dizon mentions that while many multinational companies are comfortable establishing headquarters in Singapore, they suffer from a deep shortage of talents. The talents come from other countries. These, Dizon believes, is where the Philippines often gets mentioned. www.bpap.org The Filipinos’ artistry and creativity make them a natural talent pool for outsourced gaming. Harnessing the workforce Today, graduates are schooled in classic courses like Computer Science for programmers and Fine Arts or multi-media design for artists. Dizon opines that Filipinos have inherent skills in art, like drawing. Programmers are excellent in their field as well. But Dizon thinks that schools and training institutions should come up with more specific curricula so students are trained with the skills that game development needs. He says, “What we lack now are the specific skills set that come from either professional experience or formal or informal training. We still do not have too many people trained in the specific skills set that are needed by game development.” The game development sector is changing the landscape by partnering with institutions like the Technical Education and Skills Development Authority (TESDA) and schools like the De La Salle University, College of Benilde and the Ateneo de Manila University. This way, these institutions can provide the proper game development-related skills to their graduates. Dizon also thinks that shortening the training time will make people more productive and faster, thereby helping the industry grow even more. Filipino-owned companies can encourage overseas clients to set up shop here. The industry need not have to start from scratch. New kids on the block Dizon, a baccalaureate holder of Management Information Systems (MIS) from the Ateneo de Manila University, is also President of the Game Developers Association of the Philippines (GDAP) [See Industry Association Profile – The Ed]. GDAP, formed in 2006, promotes game development in the country. Young as it is, GDAP takes its cue from other IT industries that have gone through the birth pains of establishing a startup company as well as reaped the benefits of leveraging their resources by joining an industry association. GDAP is now the latest member of the Business Process Outsourcing Association of the Philippines (BPA/P), a wider group of individual companies as well as industry organizations representing the contact center, software, medical transcription, and animation industries, among others. The young entrepreneur reflects on the advantages of collaborating under one umbrella industry association. “In the outsourcing industry, we may sell different services but it’s a similar game where you offer a service and a client abroad pays for good quality at a good price,” he says. “We’re usually not the cheapest option but we want to be very good value for money.” For him, knowing key strategies that other outsourcing companies have used is important. These include knowing how to position themselves in this kind of business, how to build up infrastructure, how to create manpower, and how to cope with fluctuating foreign exchange rates. “These are similar things that other sectors in the BPO industry are facing, though we do very different things,” he reflects. In addition, GDAP’s alliance with BPA/P gives them the voice to have a say on Roadmap 2010, a blueprint for the BPO industry’s growth. Game developers can contribute more to the high-end services market. Dizon sees a very bright future for game development in the BPO industry. As it is, the Philippines now ranks as the second outsourcing destination of choice next to India. He says, “I guess the challenge is for these established BPOs and contact center companies to keep this leadership and continue to evolve, and for the younger industries to catch up and show people that you can be a positive force in the country as an industry, as these other sectors have done.” z Outsourcing to the Philippines Dizon reveals that a lot of game development work was traditionally done in the United States. Games are very late in terms of outsourcing because of the long-held notion that creativity cannot be outsourced, he says. Clients do not typically look at the price first. Instead, they want to ensure various factors: that the company can get the job done, if the client can deal with and talk to their people easily, and if their English is good or if they will require a translator. Fortunately, the Filipino’s mastery of the English language and his cultural familiarity with the United States, where more than half of the clients come from, are key to inking the deal. Clients are comfortable in setting terms that a typical outsourcer may not be familiar with. They are put at ease if the outsourcing company can banter and share insights about their favorite games because this only proves that it understands the kind of work they require. Dizon feels that this is very important in a creative environment. “They may give a reference to an old game in the 80’s and say they want something similar to that,” he says. “If you understand that, it gives you a bigger advantage over those who don’t.” Furthermore, clients rely on a company’s previous work that, if done well, could very well bring in more business to Filipino companies. Government incentives from the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) could also entice more clients to outsource their game development needs to the country. By including the game development industry in government programs and incentive schemes, Business Processing Association PHILIPPINES 14 Industry Association Profile april - june 2008 Breakthroughs Tackling the Business of Gaming in deciding whether or not to make his own game, which is more capital-intensive but more fulfilling creatively. It’s also an all-or-nothing risk, he says. The other option is to stick to outsourcing, which is fulfilling as well, but does not give the same creative freedom. Currently, he is doing a bit of both, although the bulk of his company’s work is outsourced. The Philippines’ competitive edge Dizon says Filipinos have a latent talent in art. “In the past few years, we have been channeling artwork toward skills specific to game development. This could be concept illustrations or 3D modeling – some of the skills that clients look for abroad,” he says. Then there is programming, which is very similar to software development. At face value, it really is a software project with an entertainment component. A game should not just work properly, but has to be aesthetic and fun at the same time. A superior gaming culture and a deep understanding of games also give Filipinos an edge over competitors. Says Dizon: “You don’t outsource a game to someone who may be technically skilled but hasn’t played the game before. With the Philippines, it’s not usually a problem because we’ve been playing games since we were two to three years old.” Putting the Philippines on the map of outsourcing game development entails offering a good workforce that is talented, creative, and passionate. Dizon banks on the same strengths of BPO companies and contact centers in the country that have made it an ideal place for outsourcing. He cites mastery of the English language and the Western culture as fundamental elements for an industry that is based on creativity. A long history in gaming, particularly in playing video games from Japan and Korea, is another Philippine advantage over other outsourcing destinations. Manager behind the gamer Flipside Games fosters a results-based environment where there are very few hard-written rules. Dizon confesses that his management style is more hands-off than most managers. “What we ask and demand of our people is to get their jobs done well,” he says. “If you hire people correctly and they are passionate about what they do, then motivation is rarely a problem. We give them all the tools they need to do a good job. We’ve never had someone apply who was not interested in games.” Dizon further states that he invests in his people the most by providing them the hardware, software, and exposure to trade publications and magazines. He wants his staff to know the tricks of the trade, how it ticks in the global market, and how things can be done locally. It is, after all, a business that is dependent on developers’ talents and skills. Admitting that he reads more now than he plays games, Dizon says he turns to business books, biographies, and history books to learn how other people have succeeded in business. His management style alone tells that he does not necessarily adhere to traditional management structures; rather he looks for examples on how other companies have built a great working environment. Like most owners of game companies, Gabby Dizon is young and has played games all his life. By Maria Mutya Frio Photos by Shishiir Manzo The gamer turned entrepreneur-manager shows that Filipinos can be a formidable player in a very competitive field For gamers, by gamers. This is the principle behind the relatively small yet emerging sector of game development in the Philippines. And who would best stand as spokesperson for the industry than a gamer himself who turned video game-making into a lucrative, outsourced enterprise? Gabby Dizon is co-founder of Flipside Games Studios, an outfit that specializes in full game development and outsourcing services for the gaming industry. Dizon says that parents of gamers would probably never think their children would ever be able to use their deep knowledge of games to set up and run successful businesses. Dizon, however, is proof of that. Today he even stands on the frontier of directing the Games Development Association of the Philippines (GDAP), of which he is President. Set to promote the game development industry in the Philippines and to attract a high traffic of game development outsourcers, GDAP is marking its presence in the region as well [See In the Spotlight – Ed.] The fairly young entrepreneur and the equally young industry association may become the next big things as the game development sector slices a share off the outsourcing pie. Business Processing Association PHILIPPINES Setting up shop People who set up their own game companies are those who’ve played games all their lives, so Dizon claims. They also tend to be on the young side. After earning a degree in Management Information Systems (MIS) from the Ateneo de Manila University in 2000, Dizon worked as a game designer for Anino Entertainment. The company developed the first Philippine-based single-player, role-playing game (RPG) called Anito: Defend A Land Enraged. Based on Filipino folklore, Anito earned the Innovation in Audio Award and was one of the finalists for the Open Category at the 2004 Independent Games Festival in the United States. “Seeing your games downloaded and enjoyed by other people is a fulfillment in itself,” says Dizon. “We can see the immediate effects of our work, we can see people enjoying the game and that is very fulfilling.” Dizon dabbled with freelance work before setting up his own company in 2005. “It’s been a life-long dream to make games and eventually have my own gaming company,” he says. “In the Philippines where that industry was practically non-existent when we started, we had to be the pioneers. It’s almost out of necessity that I have my own company making games because there’s no one else to do it.” Setting up shop in a place teeming with natural talent but scant on financial resources made sense for the company to outsource. With ten full-time staff and a pool of contractors, Flipside is even able to learn its clients’ best practices, including how to upgrade its own skills and resources. Its roster of clients includes gaming companies from the United States, Singapore, India, Malaysia, and the United Kingdom. As an entrepreneur, Dizon sees the biggest challenge A collective voice As President of GDAP, Dizon envisions the Philippines to become the top-of-mind destination for outsourcing game development. Established in late 2006, GDAP is made up of ten companies developing games for different platforms. It aims to promote development of games in the Philippines and is currently composed of homegrown outfits that use Filipino talent. It also welcomes multinational companies that want to invest in the Philippines. GDAP positions itself as an association offering a staple of services in the Southeast Asian region where member countries enjoy a level playing field in the game development arena. Individually, GDAP members innovate on their own, developing games in different platforms such as arcade, web, mobile, PC, or handheld devices. “We measure pretty well against others in the region,” says Dizon. “There is no dominant country when it comes to game development in Southeast Asia. Singapore has the most in terms of locators and workforce but they also have a shortage of talent. Global companies’ headquarters may be in Singapore but it may have production capacity here in the Philippines. That would be our positioning – that this is really the production center of Southeast Asia.” GDAP does this by participating in regional and international events, including the 2007 and 2008 Games Convention Asia in Singapore. It also took part in the Game Developers Conference, the largest in the world. This year, GDAP is gearing up for the Asian Advergaming Summit that will open up the market for companies to advertise in video games. “When people think about outsourcing, they think about either China or India, and also Eastern Europe,” Dizon says. “We’re trying to get the Philippines into that conversation. We want to make a bigger name for ourselves in the industry.” z www.bpap.org 16 Executive Profile april - june 2008 Breakthroughs It’s Not Just Child’s Play By Lynda C. Corpuz Photos by Shishiir Manzo The Japanese programmer fulfills his childhood dream of creating his own games right here in the Philippines Pixelstream Corporation started with – what else? – pixels that created images and later branched out to plant its roots in the Philippines. The enterprising soul who established it is a fun-loving Japanese who is heavily into games and thought it wise to put up a business in this country. Pixelstream President Nobuhiro Fujii had a gaming company in Japan, but found it hard to do business in such a competitive environment. He heard about the Philippines from a friend, made his first visit in 2003, and was drawn by the Filipinos’ fluency in English, which he describes as the language of business. He also took note of our direct access to cutting-edge technology that is crucial in games development and content creation. The start of a dream Another factor, naturally, was the cost-effective way in which he could do business. Fujii laments that it is difficult to get talented staff in Japan, because there are a lot of gaming companies scrambling to recruit them. In contrast, in the Philippines, “there are still a few [gaming] companies, so it’s easy to get talented people,” he says. For close to three years now, Pixelstream has been serving the U.S. and Japanese markets with its games development and content creation that adhere to strict quality assurance and multiple check content systems for 2D/3D animations. “While the ideas for PC and console games come from our clients, we also try to infuse our own ideas as well into every product and service we provide,” Fujii says. The executive knows whereof he speaks. He home-studied programming in his youth and went to the now defunct Human Creative School to further his gaming skills. As a young man, he realized that he liked games “because they’re easy to play. We can make our rules and make stories, and we can interact in games.” The Yokohama native started work as a programmer making numerous PC and console games. He also enjoyed a brief spell in Hawaii where he helped develop the popular Final Fantasy adventure series. But he soon realized that he did not want to just work in the gaming industry – he wanted to create virtual-reality adventures for others to play in. He is getting that chance now as Pixelstream is setting its sights to develop its own games. One example is Brando, a 2.5D game designed for Xbox 360 about a lizard-man who is the champion of humanity in a world dominated by monsters. Pixelstream is also working on a PC game featuring a Philippine icon, the jeepney. “It’s still in the development stage, but we think that the jeepney, which is a very popular vehicle, will make for a good PC game,” says Fujii. “The player will control the jeepney’s stopovers and maneuver it through traffic. We hope to have it both in Filipino and English.” He adds, “I’ve also ridden the jeepney and it was nice.” Business Processing Association PHILIPPINES Nobuhiro Fujii: from the land of the rising sun into the entertainment sector of the Philippines’ sunshine industry The Filipino gamers While the U.S. and Japan markets are really spending for games, piracy in the country is threatening the gaming industry. In Japan, the kids end up buying only one product at a time because of the high cost of the games. In the Philippines, Fujii laments, “once a game is no longer interesting for these kids, they can buy a pirated one at a cheaper price, and it would not really be expensive for them.” He also notes that while Filipino gamers are creative, they still have to improve their programming skills. Fujii illustrates that on average, Filipinos produce only one game every one to two years. A short game can take from three to six months, console games within 10 months, and Nintendo DS games from six months to a year. “By this present rate, we have to make games faster to catch up with the U.S. and Japan game industries,” Fujii says. Despite these challenges, Pixelstream is keen to grow here and expand its operations. It has an employee base of five programmers, 18 3D model designers, four 2D model designers, five computer-aided designers, and five administration staff. As Pixelstream’s President, Fujii says he develops his staff to develop their decisionmaking capabilities. “Game development is a very creative work. If the boss forces a decision upon his staff, then the staff might stop enjoying their work. But give them the power and responsibility and they’ll give their 100 percent,” he points out. It seems that Fujii feels quite at home in the Philippines now. He croons Tagalog songs as well as he does his Beatles favorites. He is married to a Filipina and the proud father of two children. That sense of satisfaction, serenity and fun – complemented with his constant drive for excellence – should carry over into his work and motivate Pixelstream to deliver more high-quality work and, in time, create its own games. Fujii says, smiling, “As long as we know that gamers have fun playing our games – that really is an accomplishment for us.” z www.bpap.org Breakthroughs In Sights april - june 2008 17 Engaging Executive Search Providers By Manuel R. Guillermo and J. Albert Gamboa Speed, strategy, and specialization are just some of the few qualities that firms look for in their ESPs A senior position in his BPO was still open after almost a year, and corporate recruitment manager Hans Montenegro knew it was time for some ESP – an executive search provider, that is, not a psychic. Also known as headhunters, ESPs have become essential in the Philippines and elsewhere as the corporate “war for talent” intensifies. Indeed, many progressive companies’ recruitment heads gladly admit their outsourced ESPs have helped them to a great extent. Montenegro, for one, says the ESP he tapped for the BPO he worked for was able to endorse the right candidate who fit right into the job, and in record time at that. But there are also those who have not been as lucky. Unlike Montenegro, HR head Barbara Gatbonton has found some ESPs disappointing. She says those she has contacted have consistently failed to comply with her call center’s urgent requirements, falling short of what they originally promised during their presentation of credentials. While ESPs may be quick to assert that they are able to provide immense value, the feedback from their clients tends to vary. Still, there is widespread recognition across industries that headhunters have better leads and contacts within the executive circuit, and are more capable of conducting targeted searches owing to their specialized skills. “Conventional wisdom dictates that ESPs are better equipped to provide candidates at senior levels and for very technical positions,” says Eric Concepcion, Director for Philippine Recruiting at eTelecare, a major player in the call center industry that is listed in New York’s NASDAQ Stock Exchange. Headhunters also spare him from awkward haggling situations and having to make small talk with candidates. One ESP, he says, even crafted a customized strategy leaving nothing to chance when he asked it to search for a country manager. Tricky task of finding right candidates “We also need to know who’s who and what’s going on in the industry,” says Eden Florencio-Caguiat, Recruitment Director of APAC Customer Services Inc., a leading provider of customer care solutions to the healthcare, publishing, travel, entertainment, financial services, and communications sectors. At the moment, Caguiat needs ESPs to fill up over 50 open positions in APAC’s leadership and support departments like team leaders and workforce managers. Veteran HR practitioner Gonzalo Ongpin, meanwhile, engages an ESP “when there is a need to immediately find a suitable and capable replacement for a key position.” This HR director of a Japanese pharmaceutical company says most firms lack internal capabilities for executive recruitment, a function that is increasingly outsourced. Plus, he considers headhunters a necessity in his particular industry for reasons of delicadeza, i.e., to maintain utmost confidentiality in hiring senior executives. The global talent acquisition manager of a transnational law firm also says that employers who are not yet recognizable as brand names find it crucial to use headhunters for the recruitment of a significant number of leadership roles. Montenegro, a former TV network executive who is now Senior Manager for Corporate Recruitment at BPO industry pioneer Convergys, for his part says ESPs are employed “when we have exhausted all possible internal candidates or when a hiring manager specifies that an outsider is needed.” Even Gatbonton, who also heads payroll outsourcing services at the British-owned call center Logica, says, “When the profile is difficult to source, such as IT or SAP specialists for European clients, we tap ESPs because of their wide network.” She recalls that when her company was a start-up ITBPO in January 2007, an ESP helped her build their pioneer group successfully. Ongpin is particularly impressed with one ESP whose reach goes beyond the country’s borders to search for Filipino expatriates who turn out to be excellent candidates for highly technical positions. Yet he echoes many executives in rating the top local ESPs at 7 to 8 on a scale of 10. This expatriate Country Manager of a leading global bank also has mixed sentiments about local headhunters. He says their level of sophistication leaves much to be desired as compared to their international counterparts. Ongpin allows that “there’s no such thing as a perfect candidate (for a position).” But teaming up with the right ESP can certainly limit the chances of ending up with a really wrong fit for a job. Top factors in choosing ESPs Track record is of primary importance to clients in choosing which ESP to engage. According to an HR relationship manager of a European bank operating in Southeast Asia, ESPs are subjected to an accreditation process just like all vendors. But he says richness of resources and lines of specialization, as reflected in their track record, eventually determine which ESPs are selected for the search. The HR vice-president of a French manufacturing company’s local subsidiary says an ESP’s reliability goes hand in hand with its track record. He reveals that background investigation is conducted to check out references made by ESPs, a practice that most clients adhere to. Background checking ranges from inquiries with personal networks and government regulatory agencies, to the hiring of private investigation firms. The goal is mainly to establish whether an ESP exhibits financial stability and a reputation for quality Concepcion says, “We always check an ESP’s brag sheet by validating with industry counterparts and even with candidates.” Gatbonton, however, finds no need for formal background checking, saying “since among practitioners, one can get a sense of the ESP’s track record.” Another leading factor in choosing ESPs is the quality of the decision-maker’s previous experience with them. Related to this are trust, integrity, reliability, and commitment to ethical practices. Some clients place importance on candidate handling as evidenced by how they themselves were handled by the ESP as candidates. The ease of doing business with an ESP usually depends on the point person or account officer assigned to the client, and to some extent on the latter’s relationship with the owner or CEO of the headhunting firm. Other factors that companies say influence their choice of ESPs include: Speed – turnaround time; sense of urgency; ability to work within tight deadlines; quickness of response; does not waste HR time by pushing too many candidates; flexibility Strategy – ability to understand client’s HR requirement and business strategy at a high level; sound recruitment strategy Specialization – industry niche; line of expertise; established network within the industry; excellent market intelligence; ability to give feedback on market rates and insights on industry trends and practices Thoroughness of search and selection – candor and truthfulness in evaluation of candidates; ability to bring in the right candidates; availability of talent pool After-sales service – matching success; ability to track candidates even when they are not hired; feedback mechanism; emphasis not on placement but on matching needs. Surprisingly, cost is not a major consideration for most clients in choosing an ESP. As Ongpin puts it, “Why will you scrimp on the search when in the long run, the real expense would be higher if you hire the wrong candidate?” He adds that price is irrelevant because quality normally suffers when the price is low, and he always sticks to the headhunters who are able to meet his search expectations. Most of those who use headhunters also simultaneous tap two to three ESPs in searching for senior executives. Companies find it beneficial to use multiple ESPs because this way, more options are provided for critical, difficult-to-fill positions. In looking for a Finance Director or CFO, for instance, Caguiat used three ESPs simultaneously and only one of them was able to deliver. One European bank has three ESPs on the ready so that each time its needs branch managers and relationship officers, one of them immediately provides two qualified candidates within a day. HR practitioners, however, advise against using more than three headhunters at a time. Otherwise, they say that commitment gets diluted, resulting in complications such as overlapping of schedules, poor service, and confusion for candidates. From all indications, ESPs are here to stay and their services will continue to be sought after. But given that their clients have become much more discriminating, only those that demonstrate quality processes and results will flourish. z Manuel R. Guillermo is the President and Managing Director of KSearch Asia Consulting, Inc., a Philippine executive search firm, which assists mostly transnational companies and Philippine conglomerates; J. Albert Gamboa, a Project Consultant of KSearch, writes for Philippine business publications and is an active member of the Financial Executives Institute of the Philippines. Creative Recruitment To Sustain BPO Growth It is time to get out of the box and venture into innovative and more creative kinds of recruitment in the business process outsourcing (BPO) industry, for at stake in the next few years is a potential revenue of US$10-12 billion. eTelecare Human Resources Director Eric Concepcion says we have barely scratched the surface of potential candidates who can turn out to be assets to their respective companies. He points out, “A number of the 400,000 graduates who enter the workforce each year remain unemployed. The hiring yield rates are going down – from a double-digit high to five percent or even less. That means there are many people out there whom we have not even screened yet.” eTelecare itself ventures out of its safe confines, sending recruiters to the farthest www.bpap.org corners of the country in search of talent. Concepcion continues, “We make sure that there is no labor pool out there, from north to south, that we haven’t tapped. Our job caravans try to reach all areas in the archipelago.” He also points out the Filipino employee’s good qualities that make him excel in the industry: “History as a good English-speaking country, we are a patient people, and a very close affinity with our American colleagues.” Concepcion adds that slowing down present recruitment efforts is not an option. “The Philippines cannot assume thinking that some of the business will just trickle down here. We have to take advantage of the demand in the industry right now. One way to do that is to get many of the programs from the customers as we can handle before they get shipped to either India or China.” Many of Concepcion’s industry colleagues are cognizant of the situation their industry is facing which he expalins this way, “Most of the call centers right now are not scaling back in terms of their requirements; their successes in the last few years have fueled their appetite for expansion and growth. But we are starting to see a labor crunch, the Philippine situation is not yet as pronounced [as that of India, five or seven years ago] but we’re seeing that right now.” One way to leap over that hurdle is exploring non-traditional sources of manpower like state-of-the-art technological portals like job sites. eTelecare has partnered with JobsDB Philippines, Inc. (www.jobsdb.com.ph), Asia’s premiere internet recruitment network which has more than a million resumes of qualified professionals in their database. JobsDB also holds an average of four job fairs a month in the Philippines in association with schools and universities, local government units, business corporations, and industry sectors. eTelecare sources 10-15 percent of their over-all recruitment needs from JobsDB. Concepcion describes another strategy, “We educate the labor pool that this is a good industry that has career progression. Over the years, we’ve seen employees who rose from the ranks to higher positions. This kind of career success at that kind of speed does not always happen as often in other industries. We have success stories, people who have experienced significant career development in their years in the call centers.” Third, happy, motivated employees become the best recruiters as they encourage friends, relatives, colleagues, and acquaintances they believe qualified to try their hand in the industry. Concepcion says, “We have a very high rate of employee referrals. Our employees do recommend eTelecare as an employer to their friends and even their families.” eTelecare, cited by the People Management Association of the Philippines as Employer of the Year in the year 2005, invests heavily in employee training, skill development, and people-friendly facilities that encourage workers to recharge and have fun in a family-friendly environment. Concepcion says of recruitment strategies, “We should always be on the pathway of discovery.” z Business Processing Association PHILIPPINES 18 In Sights april - june 2008 Breakthroughs How Do We Train Culture? By Hayley McCarthy “We need to accurately distinguish between each of the major Western countries and the sub-cultures within them.” FuturePerfect’s Director of Education, Dr. Jane Lockwood, anticipating the demands of the industry, has recently hired training directors and curriculum developers native to each of the major Western English-speaking countries. Knowing that only native speakers can provide the level and relevance of information and exposure that will truly affect C-Sat scores, the FP team is now the only BPO training company to offer both trainers and curriculum developers native to Britain, America, Canada, and Australia. Just a few years ago, O&O in the Philippines was servicing American customers almost exclusively. Now with its foot resolutely in that door, Filipino call centers are increasingly taking on accounts from all over the Western world, from Britain to Canada, Australia and even New Zealand. In order to maintain this expansion, Philippine call center agents must be trained in specific, relevant cultural competency. Cultural competency Since it was founded in 2004, FuturePerfect Business English Specialists has incorporated cultural competency (generally targeted at the United States) into all of their BPO training courses and assessments. Research into the field suggests that the issue of cultural competency for call centers in the Philippines isn’t merely about understanding the difference between Filipino and Western culture. Now more than ever, we need to be able to accurately distinguish between each of the major Western countries and the sub-cultures within them. One call that FuturePerfect researchers analyzed that captures this issue perfectly featured an agent who had recently moved from an American account to a British one. The call revealed the disastrous results that can arise from assuming that “one size fits all” when it comes to soft skills. The agent’s gentle, coaxing, mollifying tone (something that would have gone down well with the average U.S. customer) acted as a catalyst, advancing the customer from mere irritation to outright fury. Worse still, FuturePerfect has found that many Filipino agents servicing British accounts frequently misdiagnose fury in British customers. This mistake is based on applying American expressions of anger (shouting, direct aggression) to British customers. Distinguishing accents Recognizing and correctly interpreting tone of voice is a vital part of callhandling skills, but here we touch on a more fundamental issue: recognizing and understanding accent. Extensive exposure to a wide variety of different accents is absolutely vital on any culture course (particularly British and Australian, since North American media is more prevalent in the Philippines). The diverse range of accents and their idioms within a given country can very often only been recognized and understood by a native speaker. Scottish, Yorkshire, and Northern Irish accents are notoriously difficult to decipher even for the native Brit, as is the broad Queensland accent of Australia. This is why we at FuturePerfect ensure that only native speakers teach this part of their culture courses. We also recognize that accent training needs to be ongoing after intensive culture training courses. Our solution? We offer continued support with online, easy-to-access listening clips and exercises with a range of accents relevant to specific voice accounts. Beyond accent But even being able to understand (and distinguish between) a Yorkshire farmer and a Californian surfer can only get one so far. We go the extra mile and believe that effective culture training requires the conversion of knowledge and exposure into useful, effective skills that agents can flexibly and competently apply on the floor. To be able to understand the idiomatic expressions and regional accent of a customer and know facts about their country does not necessitate effective intercultural communication. FuturePerfect training courses focus on turning knowledge into practical callhandling skills to promote empathy, rapportbuilding, and efficient AHT. But how to measure it? How to prove that we in fact provided your team with both knowledge and the necessary practical skills with which to apply this knowledge? As the only company to offer a purely cultural assessment system targeted to the call center industry (Cultural Competency Assessment System), we provide our clients with quantifiable data What drives Filipinos to join or leave their employers? By Mylene Masangkay and Stella Garcia, CCP What employees seek in the company and how employers intend to reward them may not necessarily match When asked for the reasons why they would leave their employers, Filipinos cited low base pay, stress levels, and promotion opportunity – in that order. Posed the same question, however, employers seemed to underestimate the impact of stress levels on one’s desire to stay in a company. In the 22 countries (including the Philippines) screened by a recent study, stress levels were not cited by employers as key drivers for employees’ departure. These are some of the eye-opening findings in the Global Strategic Rewards Survey that offers information gathered across five continents and 22 countries. In the Asia-Pacific region, the survey covered 400 employers and gathered the opinions of 4,000 employees. This includes the Philippine segment, which covered 45 employers supplemented by a random sampling of 500 employees. (See table 1) The Filipino employees also disclosed that base pay was the main reason for joining a company, followed by career development opportunities and finally, health care benefits. Yet Filipino employers did not recognize the importance of health care benefits as an Business Processing Association PHILIPPINES attraction tool for winning employees into their organizations. (See table 2) While many of the replies from employees were the same globally, those from the Philippines tended to put more emphasis on the “money-in-your-pocket” aspect compared to their counterparts elsewhere in the world. Meanwhile, employers tended to overestimate the importance of employer reputation in attracting employees. The survey also revealed that employees didn’t seem to fully appreciate the rewards offerings provided by their employers. It appeared that employers did not communicate effectively to the employees just what were in store for them. The good news is that while there were evident differences in the way employers Table 1: Reasons why employees leave their company: Rank 1 Employees Global Stress levels Employers Asia Pacific Philippines Stress levels Base pay Global Base pay 2 Base pay Base pay Stress levels Career Development Opportunities 3 Promotion opportunity Promotion opportunity Promotion opportunity Promotion opportunity Asia Pacific Base pay Philippines Base pay Career Development Opportunities Career Development Opportunities Promotion opportunity Promotion opportunity Table 2: Reasons why employees join their company: Rank Employees Global Asia Pacific Philippines Nature Nature 1 Base Pay of work of work Employers Global Asia Pacific Career Development Base pay Opportunities Career 2 Base pay Job security Development Base pay Opportunities Career Development Opportunities Health Care Employer Employer 3 Job security Base pay Benefit Reputation Reputation Philippines Employer Reputation Base pay Career Development Opportunities Table 3: Most common ways of addressing retention challenges Rank Asia Pacific 1 Implemented off-cycle increases 2 Increased responsiveness to findings of employee opinion surveys 3 Accelerated career development opportunities Philippines Increased responsiveness to findings of employee opinion surveys Implemented off-cycle increases Implemented/increased use of recognition programs or increased efforts to survey employee opinions on their agents’ knowledge transfer and skills transfer to measure cultural competency levels post-training. Culture for managers The ever-growing need for global cultural competency doesn’t stop with agents. Managers and middle managers are increasingly expected to negotiate, network, and converse effectively with counterparts in the United States, Canada, Australia, and Britain. The business cultures of these countries are so entirely dissimilar that to apply one rule to all might achieve promotion in one place and exclusion in the next! In order to ensure smooth communication across borders, middle and senior managers need to be conversant not only with the essentials of the cultures they are encountering, but also with the key differences between them. To share our knowledge of and research into effective culture training, FuturePerfect recently ran a free seminar for all BPA/P members entitled “Can We Train Culture?: How to Use Call Center Interactions to Teach Cultural Awareness.” This seminar, led by the Country Head of Logica, Neil Elias, was the fifth in the “Training Excellence” seminar series that started in February. z Hayley McCarthy is the Corporate Communications Director of FuturePerfect Business English Specialists, Inc., leading the industry in language and culture training and assessment through sound research and practical experience and a team of native speakers. and employees viewed rewards, the former have used various ways of addressing retention challenges. Although the immediate knee-jerk reaction would be to provide a counter-offer by implementing an off-cycle pay increase, we discovered that employers are now taking efforts to listen more to their employees by collecting opinions and addressing concerns raised in these surveys. (See table 3) At Watson Wyatt, we view these studies as effective tools to urge employers to address the rewards priorities of their targeted workforce segments more effectively. In so doing, they must avoid two pitfalls in order to maximize return on investment: Misguided investments – Allocating resources to rewards programs that are not important to employees is unlikely to produce the desired returns. Poor execution or implementation – Employee awareness and understanding of reward programs is required for these programs to have any power in attraction, motivation, or retention. Low employee awareness suggests that many companies have ineffective communication programs. z Stella J. Garcia, CCP, is Watson Wyatt Manila’s Office Practice Leader for the Human Capital Group. Mylene Masangkay is a Consulting Specialist and the Philippines’ Champion for the Global Strategic Rewards Survey. Watson Wyatt is the trusted business partner of the world’s leading organizations on people and financial issues. For more information on the Global Strategic Rewards Survey, please contact Ms. Garcia at stella. [email protected] or call (02)8415188 and Ms. Masangkay at mylene. [email protected] or call (02) 841-5137. Copies of the global report, including Asia-Pacific findings are available for sale. For inquiries, please contact Cherry Punongbayan at (02) 841-5143. www.bpap.org Breakthroughs Company News AIG BPSI Inaugurates New Operations Center in the Philippines april - june 2008 19 Colliers’ Head of Sustainability Lectures on Green Buildings Simon Carter, Colliers International’s Head of Sustainability for Asia Pacific, gave a lecture on “Sustainability in the Built Environment” to clients of the Manila office last January 24 at the RCBC Plaza in Makati City. His audience was a healthy mix of major developers, landlords, and tenants. The Executive Director of the Philippine Green Building Council was also present. Carter’s discussion revolved around Sustainability in the Real Estate Industry that had “Green Buildings” as one of its main components. Energy and water efficiency, waste management, and improving indoor environmental quality of buildings and offices, and how these can affect business operation and people productivity were the major points of interest. The presentation provided innovative, forward, and strategic thoughts on how organizations can best respond to and benefit from developing issues such as sustainability, new work practices, the transforming workforce and the knowledge economy. Carter is an Ambassador for Al Gore’s Climate Project and the author of Lifeblood, a groundbreaking report launched by Colliers International in March 2006. Colliers International Philippines Inc. was established in 1995 and is a subsidiary of Colliers Macaulay Nicholls Inc. (CMN), a member firm of Colliers International, an affiliation of independent companies with 267 offices in 57 countries worldwide. CMN is the largest member firm of Colliers International and provides a full range of services to real estate users, owners, and investors worldwide including brokerage, property and facilities management, corporate services, valuation and consulting services, project management research, and investment sales. z AIG-BPSI President Chris Duncan-Webb AIG Business Processing Services, Inc. (AIG BPSI) inaugurated its second operations center in the Philippines, the Manila Operations Center, last January. AIG BPSI is a service center providing back-office and call center support to AIG businesses worldwide. It specializes in complex insurance transactions supporting new applications, underwriting support, policy changes, and claims. The company employs over 1,000 employees in the Metro Manila area, where it has operated for over five years. The inauguration of the new operations center represents the latest expansion for AIG in the Philippines. The Manila Operations Center (MOC) will support AIG’s claims business in North America that is currently expanding and requires greater capacity. It will provide additional capacity, along with high-quality services and a more robust disaster recovery platform or the business. The new AIG BPSI facility, which houses 250 employees, is located within the Paragon Corporate Center in Alabang, Muntinlupa City. AIG BPSI plans to double the size of its new facility within the year as the company invests more heavily in expanding its Philippine presence. AIG has a long and distinguished history in the Philippines dating back over 60 years through the Philippine American Life and General Insurance Company (Philamlife). American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions, serving commercial, institutional, and individual customers through the most extensive worldwide property, casualty, and life insurance networks of any insurer. z Globe Business Increases Internet Bandwidth and Boosts Cable Diversity Globe Business has doubled its international Internet bandwidth to six (6) Gbps and is continuously upgrading to reach ten (10) Gbps by the first quarter of 2008, providing customers with even faster connectivity and less lag time. The increase in capacity will benefit all its customers ranging from everyday home users to Internet cafés and other growing businesses, as well as large corporations with bigger broadband access requirements. Globe offers its customers the best and diverse routes to enable borderless communication and easy access to realtime and relevant information. It has now the most number of direct network connections to Asia, the United States, Europe, and popular web portals. www.bpap.org Globe’s traffic passes through the Asia Pacific Cable Network 2 (APCN2) and City to City (C2C) cable system, as well as the East Asia Crossing (EAC). This year, Globe will expand its list to include the Tata Global Network - Intra-Asia Cable System (TGN-IA), adding another diverse route. Its various investments on cable routes ensure continuous Internet access to its customers. Cable diversity assures redundancy and provides peace of mind to Globe’s customers. The advantage that Globe offers is continuous Internet connectivity and the elimination of service interruptions in emergency cases such as natural calamities. Globe also established direct connection with online content providers, which include Yahoo and Google among others, and is hosting Akamai Servers in its data center. These connections ensure Internet traffic flows directly to these online content for faster access. z Simon Carter in action Punongbayan & Araullo Celebrates 20 Years of Excellence Accounting, tax and business advisory firm Punongbayan & Araullo (P&A) celebrated its 20th anniversary in February with a cocktail reception for clients, colleagues and friends, both from the business and the government sector. The celebration was held at the Blue Leaf Events Pavilion in McKinley Hill, Fort Bonifacio. Known as “the firm with a big heart,” P&A was founded by Ben Punongbayan and Joe Araullo, prominent personalities in the accounting and banking profession respectively. The firm’s soft opening happened, appropriately enough, on Valentine’s Day in 1988. At that time, P&A had all of eight people on board: seven CPAs and one secretary. “Even if we were only eight at that time,” says Joe Araullo, “we built the office to accommodate more than 100 people. The way we looked at it, we were going to be successful. Why lease a small place?” P&A expanded quickly, bagging several privatization engagements that helped establish the firm’s reputation, and attracting big batches of CPA board top-notchers who were eager to be a part of P&A’s pioneering team. Now, P&A, an active member of BPA/P, currently has 19 partners, a personnel complement of over 600 people, and five offices all over the country. Ester Punongbayan, one of the partners of P&A and a part of BPA/P’s Membership Power Team, heads the firm’s outsourcing arm, the Business Support Services, currently one of the firm’s fastest growing divisions. Punongbayan initiates and supports efforts at increasing BPA/P’s membership and addressing the needs of the booming local outsourcing industry. z P&A’s BSS Team (from left): Aris Pigao (Supervisor), Benee Dizon (Director), Ched Raña (Supervisor), Paz Malubay (Partner), Ester Punongbayan (Partner and Division Head), Grace Joboco (Supervisor), Beth Veluz (Supervisor) and Shyrwin Joboco (Supervisor) Business Processing Association PHILIPPINES 20 april - june 2008 Company News Transcom-Worldwide Selects RP for Asia’s Contact Center Hub Transcom-Worldwide formally opened its Asian regional customer contact headquarters, Transcom Center, on March 5 in Pasig City near commercial centers Tiendesitas and SM Hypermart at C5. Realizing the competitive economic advantages of its offshore location with its European connections, Transcom-Asia’s new building in the Philippines will serve as its headquarters or service center in the Asian region. It will be its Southeast Asian financial and business hub, catering to over 500 multinational companies in the region. Citing the Philippines’ competitive advantages such as good quality of HR, strategic location, good infrastructure, and hospitable lifestyle, the global call center seats over 1,000 agents and is targeted to increase to 5,000 by the end of the year to service its growing number of clients worldwide. Transcom-Asia Executive Vice President of International Operations Duncan Cowie expressed his optimism over the company’s future in the region: “The outlook for Transcom in Asia is bright. Filipinos are globally competitive and they showcase unique business outsourcing capabilities that can be exported to the region and help move Asia to greater heights.” He added, “The Philippines is the perfect location to showcase the global competitive advantage of our ‘secret weapon’—the Transcom people. It is the collective skill sets of these dedicated professionals that attract business opportunities and excite executives around the world to put their trust—their customer relationships—here.” Wilfred Julius Abo Jr., Transcom’s Vice-President for Philippine Operations of Transcom, affirmed, “Our people in the Philippines will help us maintain our position as a major player in the BPO market, and will be the catalyst that brings Transcom to even greater heights.” It will use the Philippines as its base to reach neighboring countries in Asia. “We will launch our expansion to China. And it will be led from here,” disclosed Cowie. Transcom is Europe’s leading Customer Relationship Management and Credit Management Service Provider. Established in 1995, it now employs more than 16,200 trained professionals, delivering services in 33 languages to hundreds of domestic and international clients, through 72 service centers in 29 countries across Europe and in the United States. z VISION-X, Inc. Launches Three New Sites Jobstreet Congratulates TeleTech for Winning Regional Excellence Award JobStreet.com, the number one job site in the Philippines, recently affirmed its support for TeleTech’s goal of developing globally competitive workers for the Business Process Outsourcing (BPO) market. TeleTech has partnered with JobStreet. com since 2004, making use of the site’s extensive jobseeker networks to source local talent for its offices across the country. The Department of Trade and Industry (DTI) awarded TeleTech the Regional Outsourcing and Offshoring (O&O) Excellence award at the recently conducted E-Services Global Outsourcing Conference. The award recognizes companies that support the development of “next-wave” cities through direct investments and other initiatives such as human resource development. The award is in line with the DTI’s campaign to establish cities outside Metro Manila as ideal investment destinations in anticipation of high demand from the global BPO market. Operating 12 delivery centers nationwide, TeleTech employs more than 15,000 workers, 10,000 of which are outside Metro Manila, namely in Cebu, Dumaguete, Lipa, Bacoor, Cainta, Iloilo, Vision-X, Inc (VXI), the premiere contact center solutions company, recently announced the newest expansion of its global footprint through the launch of three new sites this 2008. This year marks the most aggressive expansion initiative by VXI in the Philippines, with a new site in Makati City expected for launch by the end of the 4th quarter, and the addition of a new site in Quezon City. The new Makati site will be located in SM Cyberzone 2 along Sen. Gil Puyat Ave. and promises to be one of the largest business Business Processing Association PHILIPPINES process outsourcing facilities in the country. It has a total floor area of 10,000 square meters and should produce over 1,800 seats. The new Quezon City site will produce upwards of 900 seats. VXI continues to grow in the continental United States. Through its Lubbock Texas site, an estimated 500 seats will be added to the company’s global presence; it will be operational by early May this year. VXI currently has over 5,000 employees across the continental United States, mainland China, Hong Kong, Taiwan, Thailand, and the Philippines. Once its latest global expansion is finished, VXI will have grown by another 2,500 seats. z Bacolod, San Fernando (Pampanga), and Sta Rosa (Laguna) facilities. Maulik Parekh, TeleTech Senior Vice President and General Manager for Asia, says the award is a testament to the company’s exceptional commitment to developing world-class Filipino talent in these regional hubs and that the company aims to increase their employees to 25,000 by 2009. TeleTech is a leading global provider of customer management and business process outsourcing solutions. Established in the United States 23 years ago, TeleTech is headquartered in Denver, Colorado with a global network that extends across 68 customer management centers in North America, Asia-Pacific, Europe, and Latin America. JobStreet.com has a database of over 1.5 million jobseekers and an award-winning suite of online recruitment solutions. It operates in seven countries: Malaysia, Singapore, India, Indonesia, Bangladesh, Japan, and the Philippines. z ICT Group Named “Fastest Growing BPO Company of the Year in the Philippines” The ICT GROUP, INC. (NASDAQ: ICTG), a leading global provider of customer management and business process outsourcing solutions, was named “The Fastest Growing BPO Company of the Year” in the Philippines at the Second Annual International Information and Communication Technology Awards Ceremony held last March 13 at the Renaissance Makati City Hotel Manila. John J. Brennan, Chairman and Chief Executive Officer of ICT GROUP, said of the award, “This ranking is a testament to the responsiveness and flexibility of ICT GROUP and our balanced, diversified operating and service delivery model, which is capable of supporting clients across a range of products, markets, and geographies.” ICT GROUP rapidly expanded its Philippines capacity in 2007 to meet accelerated demand from key clients VXI and SM Executives and guests during the Ground Breaking Ceremony. (from L-R) Jess Lucas, Vice President of SM Land, Inc; Steven Wang, Vice President for Finance, Vision-X, Philippines Inc.; David Zhou, President and COO, Vision-X, Philippines Inc.; Anshu Bhartia, Director for Vendor Relationship Management (Asia), American Express; Paul Birdseye, Executive Vice President and Country Manager, Vision-X, Philippines Inc.; and Lulu Ng, Regional Director and Head of Contact Centers (Asia Pacific), Western Union. Breakthroughs for the delivery of cost-effective, highquality customer management and BPO support services from an offshore location. “Not only does this award underscore the significant accomplishment of successfully implementing this accelerated expansion,” said Brennan, “but it also recognizes the determination and skill of our management staff and all of our employees, in the Philippines, the U.S. and in all of the countries in which we operate, to consistently meet or exceed customer expectations.” ICT GROUP, headquartered in Newtown, Pennsylvania, provides a comprehensive mix of customer care/ retention, acquisition, up-selling/crossselling, technical support, market research and database marketing, as well as e-mail management, data entry/collections, claims processing and document management services, using its global network of onshore, near-shore and offshore operations. It currently manages more than 40 operations centers across the United States, Canada, the United Kingdom, Ireland, Mexico, Argentina, Costa Rica, the Philippines, India, and Australia. z School Transcript of Records Can Now Be Delivered Door to Door E-Transcript.Com.Ph is a customer-service package designed by Dynamic Outsource Solutions, Inc. to assist alumni in obtaining official copies of their school records. This innovative homegrown concept guarantees the fast, efficient, safe, untampered, and timely delivery of authentic official school documents, particularly the Transcript of Records, to alumni, especially during the course of job-hunting or in compliance with requirements by wouldbe employers. All they need do is dial one number and the system runs its course. This can also be availed through the internet. Dynamic Outsource Solutions, Inc. is a business process outsourcing company providing world-class customer, marketing, collection, as well as backroom services This service package has three major objectives: to allow alumni to obtain their official school records without having to personally queue in the university; to provide university officials adequate time and better-managed schedules to complete such requests while ensuring the timely delivery of these documents right at the alumni’s doorstep; and to help ensure that employers receive authentic and untampered school documents from their “near hires.” Visit www.e-transcript.com.ph. z www.bpap.org Company News Breakthroughs april - june 2008 21 Excellence in Any Language PLDT backs the International ICT Awards 2008 The Philippines continues as the destination of choice for the global business process outsourcing industry. In fact, according to the International ICT Awards, the country “has emerged as the world’s fastest growing destination” for BPOs. The proof is in the increasing number of clients and scope of services now outsourced to this country, signalling strengthened confidence in Filipino talent and competence. The 2nd Annual International ICT Awards–Philippines 2008, held last March 13 at the Renaissance Hotel Makati, recognized organizations and individuals who contributed the most to put the Philippines and the Filipinos in “the top of mind of global business leaders.” PLDT Business Solutions supported the annual event as premier sponsor with more focused ICT solutions that ably serve BPOs. PLDT SVP and Customer Sales and Marketing Group Head, Eric R. Alberto, in his keynote address said, “No matter what the language, the essence of excellence remains the same: a drive to continuously better oneself in all aspects, a commitment to enabling the best in others. Indeed, the Philippine Offshoring & Outsourcing Industry has manifested this excellence, working together with partners in the Private Sector, Industry, & Government.” Alberto also pointed out that the industry experienced “unprecedented employment” of more than 300,000 jobs and “record revenues amounting to nearly US$5 billion.” These achievements, according to Alberto, “captured the attention of worldrenowned organizations which have showered us with praises and accolades in 2007 – ‘Offshoring Destination of the Year’ from the United Kingdom’s National Outsourcing Association, recognition from Frost & Sullivan as being among the top 10 Shared Services and Outsourcing Destinations in the World, acknowledgement from Nomura Securities as the no. 2 outsourcing base for call center-based BPO activities, acclaim from Diamond Consultants as third in the world in terms of BPO location strategy, and recognition from Tholons of Manila, Cebu, and Quezon City, as top cities for outsourcing in the world.” Alberto also reaffirmed PLDT’s shared vision with the industry of “10 by 10 by 10 Roadmap,” namely achieving 10 percent of world market share through US$10 billion in two years, or by 2010. However L-R: PLDT’s Luigi Lopa, Optel’s Donald Felbaum, and Henry Schumacher of the European Chamber of Commerce in the Philippines. the industry faces challenges as well: slowing or shrinking U.S. and developed world markets, as well as aggressive competition from other countries eager to cash in on the BPO bonanza. He added that excellence is the guiding standard for surmounting these challenges, just as it remains the key principle at PLDT as it celebrates its 80th anniversary. As evidence of PLDT’s commitment to excellence, PLDT’s targeted CAPEX of over Php25 billion for 2008 includes the upgrade of its fixed line network into Next-Generation (NGN) technology, a new cable system and a landing station for unsurpassed bandwidth quite relevant to BPOs, broadened wireless coverage and wireless-broadband capabilities, and growing PLDT’s ICT businesses with enhanced abilities to deliver managed services, content, and solutions over and above current access platforms. UnionBank Receives Financial Insight Innovation Awards 2008 UnionBank, with its Cash Management Services OneHub. Gov product initiative, was recently recognized for its Business-to-Government (B2G) Payments by Financial Insights, a leading independent research and advisory firm. Left to right : Romina C. Meresen, AVP; Victor B. Valdepeñas, President and COO; Hermie M. Pugeda, EVP; Ana C. Sison, FVP; Elmer R. Paggabao, FVP. UnionBank was given this award in the FinTech Asia Congress 2008 held recently at the Raffles City Convention Center in Singapore. UnionBank OneHub.Gov is a facility that allows corporations, through an online integrated web platform, to pay online their obligations with the Bureau of Internal Revenue, the Bureau of Customs, GSIS, PagIBIG, PhilHealth, SSS, and the Philippine Economic Zone Authority. Previously, companies had to send their representatives to each government agency and its accredited banks to make manual payments. Because it was manual, the processing of payments information and reconciliation with funds collections took time. Today, the corporations simply access UnionBank OneHub.Gov to make a straight-through processing of their mandatory payments to the government agencies, thus making payment processing and reconciliation easier and faster. The UnionBank Onehub.Gov portal is available 24x7, allowing corporations to do online filing and payment anytime, any day, enabling them to efficiently meet the various payment deadlines. Users of UnionBank OneHub.Gov are safe and secure with 256bit SSL and Verisign certification. The Financial Insights Innovation Awards (FIIA) 2008, increasingly becoming the region’s most anticipated award for financial institutions, received 150 submissions from banks and insurers across the region. UnionBank was the only Philippine bank among the 10 companies that received the major awards. z Magazine Recognizes Convergys as a Service Leader in Outsourcing for Third Consecutive Year Convergys Corporation (NYSE: CVG), a global leader in relationship management, has announced that for the third consecutive year, it has been recognized by Customer Relationship Management (CRM) Magazine as a service leader in outsourcing in its “2008 Service Awards” issue - its fifth annual review of industry innovation and success. CRM referred to www.bpap.org Convergys’ strong customer satisfaction rating – scoring 4.5 out of 5 – and efforts to explore opportunities in Spanishspeaking markets. “We are honored to be recognized by CRM Magazine as an outsourcing leader,” says Andrea Ayers, Convergys’ President of Customer Management. “This award validates the strength of our relationship management approach and global outsourcing capabilities, supporting our vision of being a market share leader in the markets we serve.” CRM Magazine is a monthly publication designed to help business executives use CRM strategies and technologies to improve sales, marketing, and customer service; strengthen customer relationships; grow revenue; and increase profitability. The magazine determines which companies to recognize by using a formula that combines industry analyst ratings for customer satisfaction, depth of services, and company direction. Convergys is a member of the S&P 500 and has been voted a Fortune Most Admired Company for seven consecutive years. It has approximately 75,000 employees in 84 customer contact centers and other facilities in the United States, Canada, Latin America, Europe, the Middle East, and Asia. It has its global headquarters in Cincinnati, Ohio. For 25 years, Convergys’ unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to clients based in more than 70 countries and which require knowledge in 35 languages. z Business Processing Association PHILIPPINES 22 april - june 2008 Company News Breakthroughs Service Tata Communications Introduces EXL Establishes New Global Suite of Security Services Delivery Center Tata Communications (NYSE: TCL), a leading provider of the new world of communications, recently announced the launch of a robust suite of security services designed to protect the applications, IT systems, and networks that power its customers’ critical business infrastructures. The high-quality, cost-effective security services, which include premise and managed services as well as professional services, enable Tata Communications to provide its customers with security solutions on a global basis. Tata Communications delivers a full range of monitored and managed security solutions that are backed by aggressive performance-based Service Level Agreements (SLAs). The services are overseen by an experienced, globally distributed support team using state-of-theart systems, processes and tools. Its wide range of supported vendors and solutions, combined with its globally consistent and efficient service delivery model, meets the security needs of businesses. “Research by our global network of strategic partners shows that security risks continue to increase dramatically,” says John Landau, Senior Vice President, Global Managed Services. “As attacks continue to grow in complexity, effective solutions must integrate multi-dimensionally across Watson Wyatt’s Flexible Benefit Total Solutions Combats War for Talent Watson Wyatt Worldwide, a leading global consulting firm has launched its Flexible Benefit software solution, a powerful Internet-based tool, tailored specifically for the Philippine market as part of its benefits services. “Employers in the Philippines are facing a real war for talent and are keen to offer cost-effective benefits that employees really value,” says Andrew Heard, Benefits Regional Practice Director. “They have for sometime been seeking a provider with a leading edge, total end-to-end solution to help them with the administration of such flexible benefit programs.In this war for talent, only those with the best competitive solutions can expect to win and I am very pleased that we can bring such software tailored to meet the needs of the Philippine market.” The software is a powerful management, communication, and reporting tool. It provides the organization with the ability to address the various opportunities and challenges that come with the management and administration of a flexible benefits program. With this unique software tool, Philippine organizations have the option of administering their own flexible benefits programs or using Watson Wyatt as a third-party administrator. The software provides employees with an online total rewards statement that highlights the list of benefits and base pay. It allows employees to understand the total investment that employers are making in their rewards package, which is a valuable communication tool to assist with employee retention. Conrado de la Cruz, Benefits Director for the Philippines, remarks, “We have seen a strong and growing interest in There is a clear message that employers are looking for innovative tools to assist with the attraction and retention of key talent. We believe this service offering will provide organizations with an edge in becoming the employer of choice.” Watson Wyatt (NYSE, NASDAQ: WW) is the trusted business partner to the world’s leading organizations on people and financial issues. Watson Wyatt has 7,000 associates in 32 countries. z STAR Signs Media IP Network Expansion Deal with BT BT announced that its Media and Broadcast sector has been awarded a multimillion-dollar three-year managed service IP network solution contract for STAR Group, Asia’s leading media and entertainment company. STAR broadcasts over 60 services in ten languages, reaching more than 300 million viewers in 53 countries across Asia. The service will run across BT’s Global Media Network, an MPLS-enabled IP network designed specifically for carrying broadcast traffic. BT is one of the world’s leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of local, national and international telecommunications services to customers for use at home, at work and on the move; higher-value broadband and Internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale. STAR, a wholly owned subsidiary of Business Processing Association PHILIPPINES News Corporation, controls over 20,000 hours of Indian and Chinese programming and also owns the world’s largest contemporary Chinese film library, with more than 600 titles. In partnership with leading companies in Asia, STAR businesses extend to filmed entertainment, television production, cable systems, direct-to-home services, terrestrial TV broadcasting, wireless and digital services. Initially STAR will carry eight channels from Hong Kong to Los Angeles: STAR Plus, STAR One, STAR News, Vijay, STAR Gold, STAR Chinese Movies, STAR Chinese Channel, and [V] Taiwan. Signals will be fed through Direct To Home (DTH) platforms, including deploying connectivity to DirecTV, Echostar, and cable systems that reach millions of subscribers across the United States. By using the BT core IP network, STAR is gaining access to a globally deployed Media IP network that already touches over 300 points of presence in 170 countries. Dr. Guo Xiao Yong, Chief Technology Officer of STAR, says: “This is our second Media IP contract with BT. BT’s service has provided us with a giant technology leap, particularly in assisting us to expand the distribution of our channels in North America.” z different categories of security infrastructure, take on global visibility of incidents and events, and build upon best-available realtime intelligence.” “Tata Communications has assembled extraordinary expertise and purposefully designed its defense-in-depth services suite to address this concerning trend,” he adds. Tata Communications’ focus on managed services allows enterprises to reduce costs by outsourcing the increasingly difficult and expensive task of both monitoring and managing their security infrastructure, while simultaneously delivering higher levels of coverage and protection. The suite of security services, which includes managed and monitored Firewalls and Unified Threat Management (UTM) appliances, Intrusion Detection and Prevention systems, Distributed Denial of Service (DDoS) Detection and Mitigation, and Penetration Testing, offers customers proactive detection and evaluation of information security threats, accompanied by swift incident response and remediation actions. Evaluation and response is based on Tata Communications’ sophisticated real-time security incident and event analysis, which draws upon a global base of current activity and trends. Says Rob Ayoub, Industry Manager - North America Information & Communication Technologies for Frost & Sullivan: “It is hard to predict when a new problem with security is going to arise. Service providers offering managed security services have a better view on the threat landscape and more data points then any individual enterprise can have access to on its own.” “Tata Communications combines security with telecommunications services on a global basis, operating in more than 100 countries,” he continues. “This sets the company apart from others and allows it to offer simplicity for multi-national companies looking to rely on a small core of service providers.” z in Pasay City EXL Service’s new delivery center in the Philippines will serve as its first major outsourcing service delivery location outside of India, an important first step in its strategy of providing seamless global delivery from countries around the world. The new facility will offer a total seat capacity of over 950 seats and a world-class, modern environment for its professionals. It is located in OneE-Com Center in Pasay City, Metro Manila. The site is Philippine Economic Zone Authority (PEZA)approved and adjoins Mall of Asia, the third largest shopping mall in Asia. Sumir Anand, Vice President and Global Head of Infrastructure and Strategic Initiatives, spearheaded the Philippine project to meet the expanding demands of EXL’s existing clients in multiple industry verticals as it seeks to spread its operations more globally. Through this expansion, EXL seeks to provide a range of outsourcing services from the Philippines for both new and existing clients. EXL believes that the Philippines represents a valuable source of talent that will complement the significant transformation and outsourcing capabilities it offers today from India. A significant presence in the Philippines will also further enhance EXL’s business continuity capabilities and disasterrecovery framework. With this addition, EXL now has nine delivery centers located across Noida, Gurgaon, and Pune in India, and Manila in the Philippines. It is headquartered in New York and has offices in New Jersey, London, and Singapore. z Mercer Signs Agreement with TalentNet in Vietnam Mercer, one of the world’s leading global providers of consulting, outsourcing, and investment services today, has entered into an agreement with TalentNet Corporation, a leading executive search and human resource consulting company in Vietnam, to market and provide Mercer’s proprietary research, HR management tools, and survey data. Under the agreement, TalentNet will market and provide to clients salary benchmarking tools and surveys such as the Mercer Total Remuneration Survey, benefits survey, and eIPE (International Positioning Evaluation), as well as Mercer’s global insights publication, corporate benchmark monitor, and global mobility products. Guo Xin, Deputy Region Head of Mercer, Asia Pacific, says that the agreement with TalentNet further underscores Mercer’s ongoing commitment to expand in Vietnam, a strategy that started nine years ago. He says, “With Vietnam experiencing such phenomenal growth in the past years, so too has demand for Mercer’s offerings, particularly with data-driven products and services from our Information Product Solutions (IPS) division.” Mercer provides services to over 25,000 clients in more than 40 countries. Mercer IPS offers advice, data, and tools to human resources and human capital decision makers, working for local and international organizations from across all industries. Neo Siew Khim, regional leader of Mercer IPS in Asia Pacific, says, “As one of the most attractive and fastest growing economies in the region, Vietnam’s workforce landscape is becoming more and more dynamic, yet also more challenging as employers compete for the best talent. To succeed, businesses need reliable compensation and benefits information, as well as benchmarking and insights to help organizations manage talent, including local hires and individuals recruited to take an assignment in Vietnam on both a long-and short-term basis.” Tieu Yen Trinh, General Director of TalentNet Corporation, comments, “We are confident that this arrangement with Mercer will serve as a new benchmark for professional human resource services in Vietnam.” Mercer is a leading global provider of consulting, outsourcing and investment services. It works with clients to solve their most complex benefit and human capital issues, designing and helping manage health, retirement, and other benefits. Mercer’s 17,000 employees are based in more than 40 countries. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York, Chicago, and London stock exchanges. z www.bpap.org Breakthroughs Company News april - june 2008 23 Accenture Wins Philippines ‘BPO Employer of the Year’ Award at International ICT Awards Accenture (NYSE: ACN) was recognized as the Philippines’ business process outsourcing (BPO) employer of the year at the International Information and Communications Technology (ICT) Awards held March 13 in Manila. “We attribute the success of the Accenture delivery centers in the Philippines to the talented workforce that comprises our organization,” said Beth Lui, Country Managing Director of Accenture in the Philippines. “Our employees – about 15,000 in the Philippines - are Accenture’s greatest asset. We relentlessly strive to help our people grow and hone their talents by providing them with continuous training and development programs, and by promoting an inclusive culture that respects their cultures, beliefs, skills and personal achievements.” Philippine-based BPO companies serving international clients were eligible to submit nominations for the award. The criteria included: leadership that manifests in company policies and programs; strategic human resources (HR) focus, particularly on employee retention strategies; commitment to talent- and skills-building; involvement in corporate social responsibility initiatives; and strong support in industry development. “The primary success factors for Accenture’s selection as ‘BPO Company Employer of the Year’ are our high employee engagement rate, which measures employees’ overall satisfaction in company practices; our competitive benefits and compensation package; the work our professionals do; opportunities for advancement; employee quality of life; and our lower-than-average attrition rate,” said Ramona Velasco, an Accenture Senior Executive and human resources lead in the Philippines. With eight facilities in Manila and Cebu, Accenture provides capabilities from systems integration to infrastructure and applications outsourcing, and data and voice BPO. In fiscal year 2007, the company invested US$776 million in training its global workforce. This included organizational, professional development and projects-based training. Accenture is a global management consulting, technology services, and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. With more than 175,000 people in 49 countries, the company generated net revenues of US$19.70 billion for the fiscal year ending Aug. 31, 2007. z Headstrong and Gallagher Leading Call Center Calls on Datacraft to Financial Systems Form Support Expansion Strategic Alliance Global consultancy Headstrong and Gallagher Financial Systems (GFS), a leading provider of mortgage and consumer loan origination software solutions, officially announced a strategic alliance between the two companies last April. The partnership combines a proven and industry-winning product with strong advisory and global implementation capability to address large-scale technology projects within major financial services institutions, according to Nora Terrado, Country Manager of Headstrong Philippines. The partnership brings together more than half a century of leadership in financial and mortgage services. Gallagher Financial System’s NetOxygen is an award-winning Loan Origination System based on the latest .NET and AJAX-based technologies. “As a strategic alliance partner, Headstrong will leverage its 26-year track record in business consulting, project management, and technology delivery using its global delivery platform,” Terrado says. The partnership offers clients access to a delivery team that is ‘always-on’ with the cost advantages of an offshore delivery model and a faster time to market. “Lenders are reacting to unprecedented market conditions by seeking out a combination of technology and related services that enables adaptability in the face of accelerating change in the lending industry,” says Chris Anderson, President at GFS. “This partnership delivers the right technology and resources at a much lower cost by utilizing both an onshore and offshore presence.” “This is a complementary relationship that allows Headstrong to provide a cost-effective solution to all tiers of the mortgage market; the amount of flexibility and configurability of NetOxygen, coupled with our global delivery centers will drive down the time and cost of implementation and maintenance,” says Hung-Chou Tai, Head of the Mortgages Services Practice at Headstrong. Founded in 1985, Gallagher Financial Systems is one of the largest residential loan origination systems providers in the United States. Headquartered in South Miami, Florida, with its national operations center in Brentwood, Tennessee, the company provides flexible, scalable, Web services-based loan origination and decisioning solutions for both the mortgage and consumer lending industries. Headstrong’s more than 25 years of consulting experience drives proven solutions in financial services to reduce infrastructure overhead, improve crosssell effectiveness, and enhance overall client retention. It supplies customized solutions for some of the world’s biggest and best-known companies in complex production environments across Credit Derivatives, Fixed Income, Marketplaces, Mortgages, Securities Financing, and Wealth Management. z Datacraft, the region’s leading independent IT solutions provider, has won a project to help the Philippines’ premier call center and business process outsourcing provider, Advanced Contact Solutions (ACS), dramatically expand and support its facilities to ensure business continuity. The US$2.5 million project will see Datacraft upgrade and expand the capacity of four of ACS’s existing call centers, as well as build two entirely new ones. The project will add nearly 2,000 more seats to address the business needs of ACS’s clients. ACS is a pioneer and leader in the Philippine contact center industry. It provides full contact and Business Process Outsourcing (BPO) services to top U.S. Fortune 500 companies, as well as companies based in Canada, the United Kingdom, and the Philippines. In January 2004, ACS became the first publicly listed call center in the Philippines Stock Exchange and achieved ISO 9001:2000 certification in 2006. It has grown a 300seater call center in 2003 to 7,000 within four years. ACS has six state-of-the-art call centers conveniently located in highly accessible areas that serve clients from a broad range of industries such as financial services, airlines, telecommunications, technology, retail, and healthcare. The sites are fully equipped with IP phones, which connect them to other ACS call centers located in the United States, and are well supported by full power and telecommunication service redundancy for maximum service availability. “The Philippines accounts for more than 20 percent of the total world market in contact center services, which is also the fastest growing sector in the Philippines information technology,” says Raymund Del Val, Country Manager of Datacraft Philippines. “The companies that are leading in this industry are the ones that integrate contact center business processes with supporting technologies to deliver a holistic customer experience.” Datacraft will also deliver Uptime powered by Cisco Services to help ACS support and maintain its call centers and network. Uptime powered by Cisco Services is a collaborative service offering developed by the Datacraft-Cisco Global Services Alliance. By signing up for Uptime powered by Cisco Services, ACS will benefit from Cisco’s industry-leading technology expertise and problem escalation to the Cisco Technical Assistance Centre, as well as Datacraft’s enhanced service value that includes flexible Service Level Agreements (SLAs) and local language helpdesk support. In engaging Datacraft for this service, ACS can be assured of quality online as well as guaranteed on-site engineer and hardware support to minimize network downtime, resulting in business continuity. z IP-Converge’s Salesforce.com Optimizes Productivity for BPOs IP-Converge aims to optimize productivity for BPO players by offering nothing less than best of breed, globally renowned solutions. “It is the mission of IP-Converge to equip BPO companies with the right tools so they are empowered to thrive and seize opportunities in today’s global market,” says IP-Converge President and COO Reynaldo Huergas. “Being proponents of the “Platform as a Service (PaaS)” www.bpap.org concept, IP-Converge believes that embracing such is the key for both small players and major players to achieve their productivity targets and ultimately a better bottom-line, especially in this time of US dollar depreciation.” IP-Converge’s banner product which allows BPOs to experience the power of PaaS is Salesforce.com, proven leader in on-demand customer relationship management solutions. “The beauty of the Salesforce.com platform is that it is on-demand and web-based. It provides the flexibility for customers to subscribe to the service only when it is required, making it extremely cost-effective,” says Raymond Remoquillo, IP-Converge Vice-President for IT Sales and Services. Salesforce.com delivers business process innovations that allow customers to attain workplace productivity and efficiency through simple yet accurate management of business information. It combines functionality, proven integration, point-and-click customization, global capabilities, and the best user experience, resulting in CRM success. To complete its PaaS proposition, IP- Converge also offers V.O.I.C.E.S. (Voice Over Internet Call Exchange Suite), a platform hosted in its telco-grade Internet Data Center. The V.O.I.C.E.S. portfolio leverages on the company’s high speed network connectivity and robust IDC infrastructure that provides high quality VOIP termination with superb latency to North America and the Asia Pacific region. It delivers excellent call quality and creates the ideal environment best suited for call center operations. V.O.I.C.E.S. ensures efficient VOIP communications and call center operations, on-demand. z Business Processing Association PHILIPPINES