Newsletter Vol2 Ish4 NO AD
Transcription
Newsletter Vol2 Ish4 NO AD
OCTOBER - DECEMBER 2008 • Vol. 2 - No. 4 • 24 pages • free Meet BPA/P’s New Board of Trustees EXECUTIVE PROFILE p. 18 Susan Padley, StarTek Interview highlights: Thriving on challenges and change ■ Meet BPA/P’s New Board of Trustees p.2-3 • The election process and the new Board of Trustees who will help shape BPA/P’s direction in 2009 • The eight new Board of Trustees, their profiles and contributions to the IT-BPO industry ■ The Top 10 Best Philippine Outsourcing Locations p.4 • Why Metro Laguna and Metro Cavite topped the list • The other cities that ranked from #3 to #10 ■ BPA/P’s Year-End Report p.5 • Number of players in the IT-BPO industry: 600+ • Number of BPA/P members: 200 and rising • Number of IT-BPO employees by end of 2008: 400,000+ • The number of certificates issued for the PGMA Training Scholarship Program: 40,000 by end of October 2008 • The conversion of scholarship trainees to hirees: 63% • Attrition: the subject of a BPO study to be finished by end of the year • Other markets beyond the U.S. that BPA/P is successfully penetrating ■ The BPA/P Info and Research Power Team Awards p.6 • The people and organizations who have made a huge contribution to BPA/P’s success since its early days ■ Talent to Detemine the Growth of the IT-BPO Industry p.6 • The programs that will turn near-hires into actual hires and make students more employable for the BPOs ■ On the Road to Marketing Excellence p.8 • The realization of foreign clients about the Philippines as a preferred outsourcing destination ■ Next Wave Cities Special pp. 15-17 • The factors considered for the final selection of the top ten outsourcing cities • Bacolod City: voted the Most Business-Friendly City with a 99.6% rating in crime solution efficiency Five represent Industry Members, and three represent Non-Industry Members On Oct. 7, 2008, 70% of the Business Processing Association of the Philippines’ (BPA/P) 200 members elected a new Board of Trustees composed of both Industry and NonIndustry players. “We expect the collaboration that will be facilitated within the different sectors of the BPO industry to be stronger, as a result of the recent elections,” BPA/P Industry Affairs Director Jonathan de Luzuriaga says. The elections followed a twoweek campaign period from Oct.13 to Oct. 26 after candidates were nominated by their peers. Member outsourcing companies nominated candidates representing Industry Members; and members in allied industries, e.g., vendors, suppliers, and service providers, nominated candidates representing NonIndustry Members. All nomination forms were submitted to the Election Committee which asked nominees to confirm in writing their acceptance (or not) of their nominations. The Turn to page 2 From l-r: Dan Reyes, President, Sitel; Barry Marshall, Sr. Country Operations Officer, JPMorgan & Chase Bank; Miguel Garcia, Managing Dir., DTSI; Eric Alberto, SVP, PLDT; Ester Punongbayan, Partner, Punongbayan & Araullo; Jesus Romero, Head, Corp. Group,Globe Business; Cathy Ileto, BPA/P Exec. Dir., External Relations; Jonathan De Luzuriaga, BPA/P Exec. Dir., Industry Affairs; Jojo Uligan, Exec. Dir., CCAP, Jamea Garcia. BPA/P Exec. Dir. Talent Devt, Fred Ayala, CEO, LiveIt; Edwin Domingo, Marketing & Bus Dev. Head, Eastern Telecom; Oscar Sañez, CEO, BPA/P, Myla Rose Reyes, President, MTIAPI; Atty. Bob Guinto, NMGRA; and Gigi Virata, BPA/P Exec. Dir., Info and Research. Metro Laguna and Metro BPA/P’s YearCavite Judged Top 2 Phil End Report Best Outsourcing Locations 200 members, 5-8 new The capacity to sustain the level of BPO employment was one major criterion Metro Laguna and Metro Cavite topped the list of Next Wave Cities for outsourcing in the Philippines on a report jointly developed by the Commission on Information and Communications Technology (CICT), the Business Processing Association of the Philippines (BPA/P), and the Department of Trade and Industry (DTI). The Next Wave Cities scorecard ranking aims to provide objective and credible information to investors and stakeholders in locations across the Philippines, other than the more well- known locations Metro Manila and Metro Cebu. According to BPA/P CEO Oscar Sañez, “The scorecard results have validated the view of analysts that areas close to Metro Manila would benefit from the spillover of the industry.” Metro Laguna was judged the best outsourcing location in the Philippines and covered the cities and municipalities of Santa Rosa City, Calamba City, Los Baños, Cabuyao, and San Pablo City [This is discussed more fully in the Next Wave Special Section – Ed]. Turn to page 4 members a month, and one prospectiveinvestoraweek By Marla Silayan-Gonzalez As 2008 draws to a close, BPA/P is confident that targets for Roadmap 2010 are very much in place. “The investors keep coming,” says Jonathan de Luzuriaga, Executive Director for Industry Affairs. “We meet at least one prospective locator a week and more often than not, that meeting Turn to page 5 BPA/P Stories OCTOBER - DECEMBER 2008 Breakthroughs Meet BPA/P’s New Board ... BOARD OF TRUSTEES ERIC ALBERTO FRED AYALA KAREN BATUNGBACAL beng coronel grace dimaranan miguel garcia GIL GENIO benedict hernandez BETH LUI BARRY MARSHALL DAN REYES myla rose reyes OFFICERS FRED AYALA OSCAR SAñez jonathan de luzuriaga dan reyes nette roselo ATTY. BOB GUINTO editorial advisory board manuel guillermo marian santos- hernandez JONATHAN DE LUZURIAGA businessinfo inc. confirmed nominations were finalized on October 3. Of the thirteen seats in the Board of Trustees, only eight seats were up for election: five Trustees representing Industry Members and three Trustees representing Non-Industry Members. Considered elected as other Board Trustees were the representatives of the partner industry associations (the Contact Center Association of the Philippines, Animation Council of the Philippines, Inc., Medical Transcription Industry Association of the Philippines, Inc., and the Philippine Software Industry Association), as well as BPA/P’s current President and CEO. By the time of the release of this newsletter, the new Board should have convened on Nov. 24, approximately 30 days after the release of the election results. The outgoing Board members are still in-charge of administrative requirements until the First Board Assembly. De Luzuriaga describes the first few tasks that are already on the table, “Standing committees will have to be filled and each new member will get the chance to participate in the different segments of BPA/P such as membership, research, talent development, among others.” Breakthroughs! presents the newly elected Board of Trustees before they buckle down for work in 2009: FRED AYALA The CEO of LiveIt Solutions, Inc., Ayala Corp.’s holding company for its investments in the BPO sector. Ayala is also the former Chairman and CEO and current Director of eTelecare. He was also formerly Chairman of SPi, one of the leading non-voice BPO companies in Asia. Previously, Ayala was a Partner at Crimson Investment, an international private equity firm that provides buyout and growth capital financing to companies capitalizing on the accelerating globalization trend in manufacturing and services. Before that, he was a Managing Director and Co-Founder of MBO Partners, an Asian investment firm. Ayala has a double major BA in Developmental Studies (Honors) and Economics from Brown University and an MBA from the Harvard Graduate School of Business Administration. “Fred is a tried and tested Chairman and has been quite successful in building BPA/P’s relationships with key stakeholders in government, industry and academe,” says Sañez. The Senior Vice-President and Head for PLDT Customer Sales and Marketing Group responsible for overall PLDT fixed line revenues from the Retail, SME and Corporate market segments (Est. 2008 at Php 42 billion). Prior to this appointment, he was the Senior Vice-President and Head Miguel Garcia He continues to spearhead initiatives to allow even mid-sized BPOs to experience the Philippines. He believes that every dollar spent on the right prospect will profit everyone, and spur a business ecosystem of opportunities for real estate owners and developers, design and construction companies, HR, accounting and legal firms, telcos, etc. According to Sañez, Garcia “is one of the most experienced leaders in this industry having been involved directly with it since its beginnings. He is quite familiar with investor requirements, having a good experience with developing product offerings in various areas of operations including infrastructure and capability. Miguel is quite passionate in selling the Philippine brand.” President heinz bulos Publisher cora llamas Editor in Chief william dizon Art Director DONNA LARAGA Executive Assistant VERONICA SILVA-CUSI EVA GOYENA MARLA SILAYAN-GONZALEZ JASON JOHN LIM Fred Ayala Contributing Writers KAREN BATUNGBACAL WILLIE BICERA PAUL DEL ROSARIO BONG MERCADO Photographers advertising contact nette roselo Administrator Eric Alberto 9th Flr. The Palisades Condominium 107 perea St., Legaspi Vill., Makati City Tel: 817-BPAP (2727) Fax: 817-8141 E-mail: [email protected] businessinfo Inc. 16th Flr. IJ3 Burgundy Corporate Tower 252 Sen Gil Puyat, Makati City Tel: 856-4956 Fax: 856-4954 E-mail: [email protected] Erratum: The What’s Inside column of the Breakthroughs Sept. issue stated that Davao City had 300,000 call center seats. The actual figure is 3,000. Apologies for the error. —The Editor Business Processing Association PHILIPPINES having enabled more than 80,000 call center seats throughout the country, Garcia and the DTSI Group are continuing to take bigger and bolder steps to bring contact centers and business process outsourcers to the Philippines. ERIC ALBERTO ARMIE DUARTE business processing association of the philippines Continuation from page 1 for PLDT-Smart Corporate Business Group. He has over 25 years of extensive experience in telecommunications, corporate banking, relationship management and business development, having held key positions in PLDT and leading local and foreign banks. Alberto sits as a Member of PLDTSmart Group’s Senior Management Committee and holds directorships in some subsidiaries of PLDT and Smart such as Acasia, Mabuhay Satellite, Smart - NTT Multi-Media, Inc., and as Chairman and President of Telesat, Inc. and as Chairman of Bonifacio Communications Corporation, Subictel, Clarktel and Maratel, Inc. BPA/P CEO Oscar Sañez says of Alberto, “He is an experienced leader in the telco industry. He can contribute well to building overall infrastructure capability, quality, cost and reliability.” The President of ICT Group Philippines responsible for its overall operations management, business development and strategic growth and expansion initiatives. ICT Group‘s Philippine operations comprise six contact centers and over 8,000 employees across the Metro Manila area. Batungbacal is a highly sought-after resource speaker in various customer service conferences and panels in the U.S. and the Asia-Pacific region. She received the Gold Award and the Diamond Award in Customer Service, Telecoms Sector, in the 1999 and 2000 Teleperformance Philippines Grand Prix Awards in Customer Service. She also serves on the Board of CCAP. Additionally, she is also responsible for co-founding the Customer Service Association of the Philippines, where she served as president since its creation in 1997. She is also a member of the Direct Marketing Association and the American Teleservices Association. Sañez says, “Karen is a passionate industry leader making her mark in our initiatives with the legislative and executive branches of government and with all the foreign chambers and foreign embassies. A passionate seller of the country and the industry.” GIL GENIO The CEO of Innove Communications, the Head of Globe Business and Carrier Services Group of Globe Telecom, and a Managing Director of Ayala Corporation. As head of Globe Business, he oversees relationships across all products with all business segments, from SMEs to the largest enterprises, as well as wholesale businesses with other service providers. Genio is concurrently responsible for Globe’s Carrier Services, dealing with MIGUEL GARCIA A veteran in the industry with 11 years of experience under his belt, serving over 40 BPOs and multinational companies, and Karen Batungbacal www.bpap.org BPA/P Stories Breakthroughs Gil Genio relationships with foreign and domestic telcos, as well as investments in international submarine fiber optic systems and landing stations. Before joining Globe, Genio had spent more than 11 years with Citibank in various capacities, in Manila, Singapore, Tokyo and Hong Kong. He obtained a Masters in Business Management, graduating With Distinction, from the Asian Institute of Management. He holds a Bachelor of Science degree in Physics, magna cum laude, from the University of the Philippines. Sañez describes Genio as a well-respected industry leader who can “promote Philippine BPOs well here and abroad and can link BPA/P to a host of available resources in their fields.” the delivery of technology services such as systems integration, application outsourcing and infrastructure outsourcing. Lui is a Certified Public Accountant with a Bachelor’s degree in Commerce, major in Accounting, from the University of Sto. Tomas (UST). She started her IT career with the Management Consulting Division of SGV. At Accenture, Lui has taken on various roles, such as software developer, designer, team manager, project manager, and senior executive, and has helped build and led industry practices like Utilities and Financial Services. Lui was a member of the very first BPA/P Board. Says Sañez of his colleague, “Her passion in the field of HR best practices and operational excellence will be quite important in the Roadmap 2010 projects in talent development and quality assurance. Beth is very well respected in the industry.” Lui has led the phenomenal growth of Accenture in the Philippines in recent The Country Managing Director of Accenture’s Delivery Centers in the Philippines who steers a more than 16,000strong workforce who provides high-quality IT and BPO services to global clients in Europe, North America and Asia. Lui is concurrently the Philippines delivery centers’ Lead for Technology, with overall responsibility for www.bpap.org Beth Lui years and is largely instrumental in creating the Accenture brand. Today, the company is one of the industry’s biggest. BARRY MARSHALL The Senior Country Operations Officer of JPMorgan Chase & Co. where he oversees all of the firm’s Philippine-based Offshore and Outsourced operations; his responsibilities also include providing direction for the growth and expansion efforts of JPMorgan Chase & Co.’s Real Estate and operational investments in the country. Marshall has been with JPMorgan Chase & Co. for over 15 years. He is the pioneer for the firm’s efforts in the Philippines, instrumental in growing its internal operations to over 3,000 FTE and leveraging over 5,000 FTE at strategic third party partners. He has had over five years of hands-on experience in offshore and outsourced operations across both India and the Philippines. Marshall has been a resident in Manila since 2005. He completed his Bachelor of Science degree in Business Management from the Arizona State University in 1993, and attained his Masters degree in Business Administration from the London Business School, UK in 2005. “Barry is very active in and supportive of many of the industry’s initiatives in marketing and industry development,” says Sañez. “He represents the ‘captive’ sector in the Board, a key source of growth and development in the Philippine IT-BPO sector.” DAN REYES BETH LUI OCTOBER - DECEMBER 2008 One of the respected leaders in the BPO industry who has been steering Sitel Philippines Corporation, where he is Country President, to phenomenal growth over the last nine years culminating in the company’s being voted as the “Best BPO Company in 2007.” One of the pioneers of the BPO Industry, Reyes is also one of the founders of BPA/P. Reyes started his career in Fujitsu Philippines in 1989. He held various Barry Marshall executive positions until his transfer to Salmat Corporation, an Australian BPO company in 1997, eventually rising to the rank of Country Chairman. He holds a Bachelor of Science (BS) major in Computer Science from the De La Salle University. In 1999, he was able to complete the Senior Executive Management Program at Jardine Management Institute. Reyes is a “true BPO leader,” says Sañez, “back-filling the BPA/P Team 2010 duties in representing the industry in many of our external affairs.” Sañez also adds about the Trustees who have been with BPA/P for a long time and helped nurture its growth: “Fred, Dan, and Karen have been instrumental in leading the transformation of BPA/P into a ‘beefed-up’ organization. “They helped consolidate the industry and partner associations and led the work towards developing Roadmap 2010 and Team 2010.” z Business Processing Association PHILIPPINES BPA/P Stories OCTOBER - DECEMBER 2008 A BPA/P trip to the Next Wave City of Bacolod: Zyra Rayos del Sol, BPA/P; Rita Trillo- Ugarte, ExcelAsia; Jenny Garcia, ExcelAsia; Jamea Garcia, BPA/P. Breakthroughs Del Sol (left) and Garcia (right) of BPA/P with Yolanda Porschwitz, Provincial Director, TESDA Bacolod. The BPA/P ladies with Kristelle Ong of the Call Center Academy in Cebu , also a top outsourcing city aside from the Next Wave Cities. BPA/P CEO Oscar Sañez joins the BPA/P ladies in Bacolod. Metro Laguna and Metro Cavite Judged ... Second highest on the scoreboard is Metro Cavite composed of Dasmariñas, Bacoor, Imus, and Cavite City. The rest of the cities that rank from #3 to #10 are Iloilo City, Davao City, Bacolod City, Angeles-Clark-Mabalacat, Baliuag-MarilaoMeycauayan, Cagayan de Oro, MalolosCalumpit, and Lipa City. “Metro Laguna taken together ranked the highest for availability of graduates and workers out of more than 30 locations assessed,” says CICT Secretary Ray Anthony Roxas-Chua III. “The talent criteria carries the largest weight—a full 50%—in the overall ranking, which explains Metro Laguna’s position at the top.” Laguna, host to several industrial parks, is now known as the Silicon Valley of the Philippines and the Automotive Capital or Detroit of the Philippines. It is also home to a number of top academic institutions, like the University of the Philippines in Los Baños, Ateneo de San Pablo, Colegio de San Juan de Letran, Laguna State Polytechnic, Mapua Institute of Technology in Cabuyao, and the Polytechnic University in Sta. Rosa, as well as research and development organizations like the International Rice Research Institute. On the other hand, Cavite, according to the Philippine Economic Zone Authority (PEZA), has 13 economic zones as well as other industrial estates all successfully hosting various international and local companies that include some IT and business process outsourcing (BPO) companies. Infrastructure and the wealth of human capital made these two Metro cities preferred destinations for IT-BPO companies and leaders of the list of the country’s top ten Next Wave Cities. Expansion beyond Metro Manila and Cebu In addition to talent and infrastructure, the other factors affecting city ranking are cost and business environment. Cities are scored for the quality of their roads, access to international and domestic flights, presence of hotels, presence of providers of fiber optic networks—with at least two telephone companies in the location to prevent downtime, cost of labor and office space, power rates and reliability of power supply, Business Processing Association PHILIPPINES Continuation from page 1 City 1 2 3 4 5 6 7 8 9 10 METRO LAGUNA METRO CAVITE Iloilo Davao Bacolod Angeles-Clark-Mabalacat Baliuag-Marilao-Meycauayan Cagayan de Oro Malolos-Calumpit Lipa Score Talent (50%) Infra (30%) Cost (5%) BERM (15%) 88% 89% 95% 62% 82% 85% 84% 93% 63% 82% 81% 72% 89% 87% 92% 80% 78% 95% 80% 60% 78% 70% 81% 80% 96% 77% 67% 100% 60% 70% 74% 66% 95% 67% 60% 73% 63% 91% 87% 68% 73% 68% 84% 67% 68% 73% 67% 87% 67% 64% Source: BPAP-CICT-DTI Next Wave Cities Scorecard 1 vulnerability to natural disturbances, crime rates, the presence of PEZA sites and ICT councils, among other factors. There were 50 locations on the initial Next Wave Cities scorecard, with Metro Manila and Cebu included. “Basically, the research aimed to tell the investors where to locate and to give the cities advice on how they can improve further to be able to get investors,” explains Gigi Virata, BPA/P’s Executive Director for Information and Research. “We included cities that have and don’t have BPO locators yet. What is important is their ‘absorptive capacity’ or the level of BPO employment they can sustain.” The long list was refined as the study progressed; thus Metro Manila and Cebu were dropped as the further development of the industry necessitated its spread to other regions. “Competition tends to heat up (in major locations like Metro Manila and Metro Cebu) and salaries inflate. As a result, employees jump from one company to another. To keep salary rates manageable, the industry needs to spread out,” Virata says. “Attrition rate could also climb as it has in India; thus, we need to handle the growth of the industry properly.” Issues addressed in the study also include rising office space rental rates in Metro Manila and the availability of graduates and workers willing to work in the BPO industry. Figures show that more than 80% of the Philippine outsourcing industry is located in the Metro Manila; however, only 25% of the graduates come from these cities. Board of Investments (BOI) Executive Director Celeste Ilagan also stresses the problems that are caused by the over concentration of outsourcing companies in Metro Manila and Metro Cebu. “We realized early on that to help investors look beyond Manila and Cebu and to help local stakeholders prepare to be effective hosts for IT and BPO companies, we needed to provide more information about our cities and towns; otherwise pressures to raise rental rates and salaries in these major metropolitan areas would go unabated,” Ilagan comments. “Having ten Next Wave Cities and more will help ease the pressure and spread the benefit of employment, higher incomes, and increased business activity across the country.” This joint undertaking of BPAP, CICT, and DTI focused on gathering verifiable data through coordination with the Commission on Higher Education, the National Statistics Office, the National Statistical Coordination Board, PAG-ASA, and the Philippine National Police. “The cities that have ICT councils submitted their reports to us which we also used as information sources. We coordinated with the Chambers of Commerce and some city officials as well,” says Virata. BPA/P CEO Oscar Sañez describes the Next Wave Cities scorecard as an effort spurred by an agreement signed by the three organizations in November 2007 after launching the industry’s Roadmap 2010 which set to capture 10% of the global outsourcing market share and “identified the work that the BPA/P as the industry association needs to do to reach its target.” z Research compiled with additional report by Eva Goyena. www.bpap.org Breakthroughs BPA/P Stories BPA/P’s Year-End Report OCTOBER - DECEMBER 2008 Continuation from page 1 eventually results in the company setting up shop in the country,” he adds. The global slump has not affected the entry of new players to the industry. According to de Luzuriaga, stability is not an issue with prospective locators. Walking down the central business districts and finding familiar brands such as Starbucks, Krispy Kreme, McDonald’s, and other U.S.-based companies doing brisk business immediately puts them at ease and has them convinced. Having attracted numerous BPO players to set up shop, what is BPA/P doing to ensure they are here for the long haul? Membership BPA/P currently has more than 200 members, half of which are directly involved in the industry and the other half come from the support industries, e.g. telcos, training and recruitment houses, real estate companies, software and hardware vendors, and system integrators. Approximately five new members are added monthly but eight new members were welcomed in October 2008. According to de Luzuriaga, there are more than 600 companies involved in the BPO industry. “Although we live on membership, we want our members to have touch points with the industry. If we find that an organization is not involved in any way with the industry, we don’t push through with the application,” he says. The association is also open to receiving applications from other industries so long as they are involved in the BPO industry. He cites HMOs as some of the possible companies that may apply since these industries supply some BPO requirements. Membership to BPA/P is tiered. It is based on size for those directly involved in the industry and for those from support industries, it depends on the level of engagement of an organization. The type of membership determines the amount of information a company has access to. Aside from monthly general assemblies where members are updated on the association’s activities, the association intends to enhance other programs which are already in place such as the CEO Forums, major events such as the BPO Summit, tradeshows where members can showcase their capabilities, and De Luzuriaga with Lyndon Bird, Technical Services Director of the Business Continuity Institute community-building activities such as the BPA/P golf tournament. As major industry players form part of the membership, the association has been able to steer the industry toward the goals for 2010. “We can influence the direction of the industry because most of the major industry players are members,” de Luzuriaga adds. Talent development By the end of 2008, the BPO industry expects to have over 400,000 employees. The target for 2010 is to have 900,000 full-time employees. In the next three to four years, projections are such that one out of 10 jobs created will be in the BPO industry. “The Philippines became attractive to major players because of our English-speaking capability, our affinity to the U.S., and similarities in terms of jurisprudence and general acceptable accounting practices,” says de Luzuriaga. To further leverage the industry’s strengths and fill the gap, constant training and workforce enhancement is done. The Training for Work Scholarship started when President Gloria Macapagal-Arroyo allocated Php350 million for training development for the BPO industry. As of October 2008, 40,000 certificates have been issued worth Php260 million. These scholarships enable a person to be trained in a skill area needed by the BPO industry. The conversion of trainees to hirees is high with 63% hired by contact centers, 86% hired by transcription services, and 100% each for software development and animation. De Luzuriaga also notes that the growth of the industry has created a need for middle managers as well as professional training to augment and complement what they have already learned (and are learning) from experience. He says that these employees who finally fill the middle-management positions will need to develop the ability to forecast trends in a fast-paced environment. “In a traditional environment, performance appraisal is done once a year. But in the BPO setup, performance appraisal can be done weekly, monthly, quarterly, and yearly because of contact center tools. These tools enable management to look at numbers and determine trends that guide operational adjustments,” says de Luzuriaga. The ability to forecast and adjust a service’s direction complements the natural customer service orientation of the Filipino people. To further boost human resources capabilities, the association would like to see a National Skills Assessment Test to be given to graduating students to determine a person’s skill set and further work on developing a person’s skills. This will help develop healthy career paths for everyone. Employee retention “BPA/P is working to develop a standard to measure attrition. The study should be done by the end of 2008,” says de Luzuriaga. He adds that the measurement of attrition right now is done differently in different centers: “Attrition may be measured in several ways: attrition from the standpoint of total attrition—people who totally left the company—training attrition, operational attrition, or attrition through promotion or transfer to another program.” Trends also show that attrition rate in third-party contact centers is faster than that in captive centers. Centers such as JP Morgan and HSBC which provide offshore services for their companies are able to keep the loyalty of their employees for a longer period of time. “Although there is still movement within the industry, it has slowed down. People are finding their niches,” de Luzuriaga adds. He says that eventually the association would like to track movement within the industry. Attracting new locators The Philippines is making a name for itself globally in the BPO industry. “You cannot be known as a global player if you do not have a footprint in the Philippines,” he proudly adds. The association entertains at least one new investor a week. More than 10 companies have set up shop this year alone. De Luzuriaga enthuses, “We have managed to forge a good partnership between industry, government and other players to make barriers to entry disappear.” The association brings together the various sectors involved in setting up a business—government, telcos, recruitment houses, training, real estate, and other entities needed by the prospective locator. The Roundtable Discussion Group, as it is known, presents as one to sell the advantages of setting up shop in the country. This manner of presentation makes it easier and faster for the client to gather data and make an assessment. Currently this group is convened weekly as they meet at least one client a week. Aside from presenting to prospective clients, some of BPA/P’s members ask the association to do this same presentation to their prospective clients. BPA/P’s future Although the majority of industry players come from the U.S., BPA/P is currently making presentations in countries such as Australia, New Zealand, Singapore, and the U.K., etc. The industry has expanded its share of businesses from some of these countries. The global economic slump has made the Philippines even more attractive as it allows companies to stay in business. “Companies have only two choices these days—outsource or surrender and close shop,” says de Luzuriaga. The Philippines has not yet fully tapped the global BPO market. Aside from players from other countries, there are still higher-value processes the country can attract such as finance, accounting, and HR-related functions. All these can happen with a stronger partnership between the industry, academe, and government. z BPA/P Industry Affairs Exec. Dir. Jonathan de Luzuriaga at the 8th Annual BCM Conference in Singapore www.bpap.org Business Processing Association PHILIPPINES BPA/P Updates OCTOBER - DECEMBER 2008 Breakthroughs The Information and Research Power Team Awards: Pagpapasalamat I&R 2008 By Gigi Virata BPA/P Executive Director for Information and Research A grateful acknowledgment of the partners who have contributed to BPA/P’s success Convincing companies that sharing information is vital to the well-managed growth of the industry has not been easy. That said, I happily acknowledge that there were many individuals and companies that contributed in different ways to the Information and Research (I&R) Power Team’s activities in 2007 and 2008. First, I acknowledge the pioneering two-man I&R Power Team of Mike Garrison (Dell) and Gerry Topacio (DTSI) who ran BPA/P’s research efforts in 2007 including the IDC market survey (Gerry) and the DDI Global Leadership Forecast Survey (Mike). Mike helped ensure that there were enough responses from the Philippines for the DDI survey to warrant a benchmark country report. Because surveys are the lifeblood of research, I also thank all the companies that participated in our surveys on leadership (by DDI), attrition (by HRCC-BPAP), various issues (by Outsource2PhilippinesBPA/P), and health-risk behavior (by the Department of Health). Special mention goes to Penny Bongato (HRCC), Haidee Enriquez (ACS/HRCC) for leading the attrition survey effort and to DBM Philippines (Binky Kilayko and Marivic Gustilo) for its pro bono services for the survey. Thanks, too, to companies that have provided data for the BPA/P Industry Inventory, especially on headcount. Participation in events and meetings in which information is shared is also important and I’d like to thank all the companies that attended our meetings, workshops, and forums. Special mention goes to companies that are regularly represented and have representatives who contribute to discussions at the I&R Power Team’s monthly meetings, these are: Accenture (Myra Arenas), Asiatype (Levi Balanon), BayanTrade, DTSI, HSBC (Philip Amores), Jones Lang LaSalle Leechiu (JLLL), Kaisa, SPi, and Sutherland Global Services. Deserving of special recognition are organizations that contributed most to BPA/P’s I&R efforts in 2008: PeopleSparx, led by May Cuevas, for providing voluntary services in the review of the DOH survey and, most especially, for helping prepare the presentations of our speakers, leading the breakout session at the National Competitiveness Council’s Local Government Unit Summit, and finalizing our report for the summit. Dan Reyes (Sitel), David Leechiu (JLLL), and Maulik Parekh (Teletech) also deserve special thanks for ably representing the industry at the summit. The Commission on Information and Communications Technology (CICT), especially Secretary Ray Anthony RoxasChua III, Commissioner Mon Ibrahim, Director Trish Abejo, Mae Agne, and Emmy Delfin are recognized for making up the public half of the highly productive and congenial public-private partnership (PPP) BPA/P has with CICT. The updated Next Wave Cities (NWC) Scorecard is just one of the many outputs of this model PPP. Celeste Ilagan, an executive director of the Board of Investments, also deserves recognition for actively participating in the NWC Working Group, sharing information, and helping facilitate PPP with other government units. These are civil servants that we can be proud of. We find some of the data for the NWC Scorecard on the Web sites of government and private organizations. However, there are member and government organizations that have contributed custom reports for the scorecard and they too deserve acknowledgement: Ayala Land, Bayantel, CB Richard Ellis (CBRE), Colliers, Commission on Higher Education, Department of Trade and Industry (Regional Operations and Development Group), Eastern Communication, Globe Telecom, various ICT Councils, JLLL, Meralco, Philippine Export Zone Authority, and PLDT. Carol Dominguez (John Clements Consultants) and David Leechiu (JLLL) contributed as well their time and expertise to make the scorecard metrics correspond more closely to investor concerns. We also thank all who attended the CEO forums, including industry panelists: Karen Batungbacal (ICT Group), Bong Borja (PeopleSupport), James Donovan (American Data Exchange Corporation), Ray Espinosa (SPi Technologies), Joey Gurango (Gurango Software), Rick Santos (CBRE), Nora Terrado (Headstrong Philippines), and Marife Zamora (Convergys). Special thanks goes to Accenture for sponsoring the first forum and to Globe Business for sponsoring two forums. Very special acknowledgement goes to Excel Asia Training and Development Inc. for sponsoring both forums and being a principal sponsor for the second. Since the beginning If there were “finalists” for the Best BPA/P Information and Research Partner for 2008, they would be: Outsource2Philippines (O2P), that is, Frank Holz, who since 2005 has sponsored the O2P-BPA/P Periodic Survey—efficiently filling the industry’s information gap. Frank was the only member to attend the second I&R Power Team meeting where we conceived of the CEO forum as a venue for discussing pressing industry issues relevant to all industry sectors and companies regardless of size. He has continued to be actively involved in conceiving, planning, and conducting the periodic surveys and CEO forums. Jones Lang LaSalle Leechiu, led by David Leechiu, for actively participating in all I&R Power Team and Next Wave Cities Working Group meetings. David and his team have very generously shared information, time, and expertise for the benefit of the industry as whole. JLLL has also committed to invest in personnel and logistical resources to assist in major BPAP research projects. Asiatype Inc. (ATI), for initiating the cooperative effort between ATI and BPA/P as co-publishers of Offshoring and Outsourcing Philippines Directory 2008. ATI invested in this two-year research and publication project and invited BPA/P to contribute to it. ATI also invested generously in the directory’s launch and is working with BPA/P to market and sell the directory. ATI continues to update the directory, providing us with invaluable information; future projects between ATI and BPA/P are being discussed. The Grand Finalist for Best BPA/P Information and Research Partner 2008 goes to TeamAsia under the very active and able leadership of Mike and Monette Hamlin. In BPA/P’s early years, TeamAsia provided pro bono services for BPA/P’s Web site and technical support needs. It has helped conceive and lead the implementation of all the O2PBPA/P Periodic Surveys since 2005. Most importantly, TeamAsia has unselfishly contributed to the conception, planning, and implementation of the CEO Forums. TeamAsia not only does 90% of the work for the forum, it also writes off or gives hefty discounts to BPA/P—amounting up to almost 50% of total costs—to ensure that the forums are an enriching experience and also help replenish BPA/P’s research budget. There many other companies and people who have helped; I’ve limited my “candidates” to (mostly) BPA/P members and government partners. I apologize to any company or person I may have inadvertently left off this list. Please don’t hesitate to jog my memory ([email protected]). z Talent Will Determine the Growth of the IT-BPO Industry By Jamea Garcia BPA/P Executive Director for Talent Development To reach our 2010 aspirations, the industry will need to employ 900,000 to 1,000,000 workers. These means that one out of every 10 Filipinos will be employed in this industry. Thus, the BPA/P Talent Development Team has drawn up several programs and initiatives to reach this goal. A number of these programs require the collaboration between industry, academe and the government. We have been fortunate that both academe and government have been proactive in this endeavour. BPA/P has an actively been working with the Presidential Task Force on Education (PTFE). We are also part of the National Competitiveness Council (NCC) and we are a member of the IT-Panel for Bi-Cameral Commission on Math, Science, Technology, and Education or COMSTE. Business Processing Association PHILIPPINES As 2008 draws to a close, we are pleased to update you on the various programs and initiatives of the BPA/P Talent Development Team. ADEPT The Advanced English Proficiency Training Program (ADEPT) is a tie-up between BPA/P and COCOPEA. This program focuses on developing near-hire and hiring-level competencies in English, so that graduates can be immediately employable in the BPO-IT industry. It is an intensive English proficiency training class to be taken by students in their final year in the university. ADEPT Working Group has finalized the standard courseware to be used in the ADEPT Class for the participating schools, including the assessment tools for the students who will be enrolled. An Administrator’s briefing and orientation was held last September 11, 2008 at the Far Eastern University. BPA/P CEO Oscar Sañez, gave an industry overview, Dr. Vincent Fabella (former President of COCOPEA), and I conducted the briefing. It was attended by university presidents coming from Metro Manila, Laguna, Cavite and Dagupan. A faculty training program for the ADEPT Courseware was held last October 20-24 at the Emilio Aguinaldo College. Twenty-nine faculty members from 11 universities and colleges participated. This five-day training workshop is designed for the faculty of the ADEPT participating universities. An initial pilot run of the ADEPT class was conducted last school year 2007-2008 and had very promising results. The 40 to 50% of students who underwent the ADEPT were assessed to be immediately hireable by the call center partners (as compared to the current 5 to 10% hiring rate). We hope that we will be able to replicate if not increase our hiring rates with this coming run. TOOL The Training for Offshoring and Outsourcing Leadership Program (TOOL) is a middle management program for the BPO-IT Industry done in partnership with Ateneo De Manila Graduate School of Business and the De La Salle Graduate School of Business. This program aims to help create more capable managers for the industry by enhancing leadership mindsets and developing managerial skills. This program is divided into two phases. Phase one is a basic management program developed for newly promoted managers and supervisors. The second phase is a management-and-leadership development program designed for middle managers which may be credited as a sixunit elective for those intending to purpose an MBA degree. We are currently accepting enrollees for the courses. PGMA-TWSP We are co-managing with the TESDA the PGMA Training for Work Scholarship Program for the BPO-IT industry. The total allocation for the BPO-IT Industry is Php350 million. To date, we have distributed over Php260 million of scholarship vouchers nationwide. We are optimistic that the above projects will help us move towards our 2010 goals and aspirations. There are more projects to look forward to for the coming year. z www.bpap.org OCTOBER - DECEMBER 2008 BPA/P Updates Breakthroughs On the Road to Marketing Excellence and London, UK for BPA/P By Cathy Ileto BPA/P Executive Director for External Relations Foreign companies are realizing that the Phil IT-BPO industry provides services beyond voice There is definitely no stopping the Business Processing Association of the Philippines (BPA/P) in terms of reaching its Roadmap 2010 goals. This explains why BPA/P, through the efforts of the External Relations team, embarked on an ambitious foray to reinvigorate its marketing strategies as it prepares to propel the Philippines to the global information technology-business process outsourcing (IT-BPO) market as a top and world-class IT-BPO destination. Foremost of these efforts are the new BPA/ P marketing tagline, “Experience Excellence. Experience the Philippines,” which was launched to the media early October. The new tagline was the result of extensive discussions between BPA/P executives and local IT-BPO industry players. The operative word that came out of those discussions was the word “excellence,” which they said best describes what the Philippines is all about with regard to IT-BPO, from abundant and highly skilled talent, robust telecommunications infrastructure, healthy and active Western-based lifestyle, and authentic and incomparable customer-focused mentality. These qualities, they said, are already encapsulated in the word “excellence.” The Web and the world BPA/P will also be deploying other marketing campaigns on the local front, particularly with regard to online recruitment, and other marketing tools that would generate deeper awareness among Filipinos about the ITBPO industry. For this, we have entered into a partnership with Havoc Digital, one of the country’s foremost web developers and also BPA/P portal developer, to effectively see this ambitious project through. BPA/P, true to its visionary inclinations, also plans to engage the use of online sites like Yahoo! and popular social networking site Friendster, which has a huge base of Filipino subscribers, to the tune of around 13 million, for its talent marketing initiatives. Yahoo! and Friendster would be very efficient mediums in order to generate more awareness about our industry, especially among the youth and also their parents. These sites would also be of big help to us in countering all other negative issues emanating primarily from the lack of understanding of what the IT-BPO industry is all about and what benefits it can bring to Filipinos, especially during these hard times. Finally, we are also proud to report to you that this new tagline had its “world premiere” of sorts during the recently-concluded National Outsourcing Association (NOA) Summit held at the elegant Queen Elizabeth II Convention Centre located right at the heart of London. The presentation of the new tagline, via a hip and cool marketing AVP, during the NOA Plenary Session where our CEO, Mr. Oscar Sañez, presented a case study about the Philippines, is in line with BPA/P’s strategy to gain inroads in the United Kingdom and other countries in Europe like Germany, and even in other significant IT-BPO markets like Australia and Singapore. After the plenary, foreign delegates to the NOA joined a round-table sessions, wherein BPA/P and members of the Philippine delegation answered various queries about the Philippine IT-BPO industry. During the roundtable, we made the foreign countries realize that the Philippines has already moved up from just speaking good English, answering mails and basic accounting operations work, to the higher end of the IT-BPO value chain like animation, design services, finance-related functions, software development, and efficient whole back-end operations. z IPO Forum: BPA/P Holds Exclusive Forum on Equity Funding for Sr. Execs L-r: Joey Gurango, CEO, Gurango Software; Luz Lorenzo, Regional Economist, ATR KimEng Capital Partners, Inc.; BPA/P CEO Oscar Sañez; Monette Hamlin of Time Asia (top photo); BPA/P Info and Research Exec. Dir. Gigi Virata; Michael Alan Hamlin, Managing Director, Team Asia; and Atty. Francis Lim, President, PSE Serious IT-BPO players — regardless of their size — will require access to capital to fuel continued growth. One alternative for generating capital is equity funding. In response to inquiries and discussions within the industry on the processes involved in obtaining equity funding, the Business Processing Association of the Philippines (BPA/P) and Outsource2Philippines (O2P), with the support of the Philippine Stock Exchange (PSE), organized an exclusive senior executive briefing entitled On the Road to Going Public: A Forum for Corporate Executives Considering Equity Funding last Sept. 18 at the Makati Shangri-La Hotel. TeamAsia, Excel Asia, and ATR KimEng Capital Partners were major sponsors; Globe Business and First Metro Investment House were minor sponsors; and BusinessWorld was the exclusive media sponsor. This briefing examined alternatives for equity funding in the Philippines with top executives of leading IT-BPO service providers who have or are considering Business Processing Association PHILIPPINES accessing equity funding to support growth. Respected ATR KimEng Regional Economist Luz Lorenzo presented an overview of the global investment outlook for the ITBPO industry. Next PSE President Francis Lim told PSE’s story and own journey to listing. Joey Gurango started off the panel discussion with the inspiring growth story of Gurango Software, a Filipino multinational in the global IT space. Bong Borja added to the picture the growth of PeopleSupport using equity capital up to its recent sale and delisting. Karen Batungbacal shared the many challenges in the highly transparent world of listed companies. PSE Legal Officer Varvie Roldan and Securities & Exchange Commission Director Justina Callangan clarified the requirements of listing. First Metro Securities, Inc., Chairman Roberto Juanchito Dispo explained how investment houses proposed to help fund expansion. TeamAsia’s Michael Alan Hamlin gave an overview of BPA/P’s recent survey on this same topic and moderated the panel discussion. The survey received the highest response rate of any of BPA/P’s past surveys, suggesting keen interest in learning more about equity funding in the Philippines.z O&O Directory to Help Market RP BPO Firms By Veronica Silva-Cusi Aware that adequate exposure is needed to promote the IT-BPO sector in the global market, the Business Processing Association of the Philippines (BPA/P) launched the Offshoring & Outsourcing Directory Philippines 2008 on August 15. It is expected that the directory will serve as a strong marketing tool to boost efforts by the IT-BPO sector in acquiring the 10% share of the US$130-billion market abroad by 2010. BPA/P CEO Oscar M. Sañez said the directory is an important marketing tool for industry players particularly when engaging in investor networking and trade missions abroad. “Over the years, we have all seen how the industry posted phenomenal numbers that led to the Philippines being recognized as a top IT-BPO destination in the world,” Sañez said. “With this directory, we hope to concretize that recognition and showcase to the world that the Philippines is not just about call centers but a whole lot more, and poised to achieve more growth even beyond our original projections.” The directory is the next major step of the BPO industry following the presentation of Offshoring and Outsourcing Philippines: Roadmap 2010 , a document which outlines the industry’s strategies and programs. “The growth of the outsourcing and offshoring industry in the Philippines could no longer be ignored – and neither could the need for a publication that promoted it abroad,” said Philippe Gauthier, Chairman of Asiatype. Aside from company information, the directory contains contact details and business description of over 550 local and foreign companies. To help investors find their way in the industry, the directory also has basic information such as how to register, a list of investment promotion agencies and relevant information regarding available office space. Published by BPA/P and Asiatype, Inc., the 364-page directory costs US$295 or Php13,500. z www.bpap.org BPA/P Updates Breakthroughs OCTOBER - DECEMBER 2008 From the CEO Desk A Historic Transition BPA/P has capped the year quite fittingly with the election of a new Board 30 days after the ratification of the new BPA/P charter in September and very much in line with the dictates of Roadmap 2010. At this time, it is only right that we acknowledge the valuable contribution made by the outgoing Board in forging the right direction for BPA/P and the BPO industry, for paving the way for the development of our strategic plan called Roadmap 2010 and the formation of 2010, the full-time management team tasked to lead the execution of the portfolio of initiatives embodied in the roadmap. If not for this bold move by the outgoing Board, we would not have achieved this industry breakthrough that is rarely seen in the Philippine business scene and the remarkable +50% annual export revenue growth that they had delivered over the past two years. Let’s take our hats off then to this Board that led us to where we are now – Chairman Fred Ayala, President Dan Reyes, Board members Karen Batungbacal, Bong Borja, Maulik Parekh, David Sutton, Rose Montenegro, Mike Garrison, Myla Reyes, Tarcs Taruc, and Grace Dimaranan. The new Board takes over in these very challenging times marked by a global recession, a new Obama presidency in the U.S. and a really full “Year 3” agenda in Roadmap 2010 that will take on untested initiatives like the National Assessment and Competency tests, the BPA/P Quality Assurance Program and Accreditation program, the roll-out of ADEPT and Middle Management Development program and the institutionalization of the annual Next Wave Cities ranking. The new Board will have to play a key role as well in supporting our new marketing campaign in the light of the worldwide economic issues and the growth of the emerging markets. The new Board will take us to the closing of 2010, the endpost of our Roadmap 2010 and should also take the lead in initiating the setting of the next big leap for our industry. It will truly be another historic period for the industry and one we should all be proud to be a part of. z The Insider By Jonathan De Luzuriaga BPA/P Executive Director for Industry Affairs Prophet of Boom That’s what I half-jokingly texted a colleague yesterday: “I’m the prophet of BOOM,” which counters in spirit the atmosphere of gloom and doom that has descended around the world—and yes, in our BPO industry—following nonstop news about a global recession that has seen thousands lose jobs and businesses close shop, if not declare bankruptcy. Yes, there is reason for concern; I’m not laughing that away. Yes, the financial giants in the U.S. which happen to be the customers of some of our BPOs have cited significant losses. Yes, the new U.S. President-elect Barack Obama has repeatedly said that he will translate into policy that the American economy would be best served by jobs being filled by Americans in their home country rather than being outsourced to BPOs across the globe. However, as an industry veteran who started in the front lines many years ago and who has seen its growth and wrestled with its challenges, there is one thing I do keep in mind: the time-tested rules of the economy. Economic crises, regardless of how hard they hit a sector or a country, come and go. They make people tighten their belts and compel companies to take a good second look at their budget—but they eventually run their cycles. It may take a year or two to recover, but the economy will eventually see an upturn. What is important is what we do now. My principle in life has always been: don’t panic during a typhoon, but strengthen the structure of your house, stock up on food and water, make sure your family is safe. In a manner of speaking, this is what we have been doing in the industry. Our English-speaking talent is still a pool to contend with, and the partnerships and programs we have established with the government, the academe, and other members of the private sector will ensure that that wellspring of talent will be nurtured, trained, and made ready when this ominous shadow hovering over us is finally dispelled. Another asset we have in our favor is the Filipino creativity and flexibility. We have the brainpower to adapt to change and adjust to new things. Make no mistake about it: the BPO industry during this crisis might have to www.bpap.org make a few changes which is what companies always do during times like these. New technologies might be introduced and new skills might be required. I am confident that the ever-adaptable Pinoy BPO worker can rise to the task. New horizons New technologies, new skills, and new accounts come from new horizons. Even prior to the U.S. crisis, BPA/P has been making aggressive inroads into markets like Australia, New Zealand, Singapore, and Europe. Though all of these places have been affected by the economic slowdown, their different cultural and market conditions may make outsourcing an even greater necessity rather than an expense that has to be removed. Even as I’m writing this column, I’m reading the statement of a British telecom company executive who is currently exploring options of setting up shop in Manila mainly because U.K. does not have the sufficient labor pool to do the jobs required. Oh, yes, that’s another thing to remember. The number of prospective locators who have come here has not diminished. I’ve been touring and entertaining one potential BPO client a week. And let’s not totally give up hope on getting business from the U.S. Let’s look beyond the news bulletins but ask ourselves: at the end of the day, will U.S. companies not realize that it will be more cost-effective to continue outsourcing work outside where labor costs are far more reasonable than they are in the U.S.? Will not the resultant savings from outsourcing lead to a healthier bottom line? As far as the proverbial laid-off American who will take on any kind of work just to keep afloat is concerned, how long will he stay on in a call center job until he finds something “better?” Let’s not forget that one strength of the Filipino BPO workers (and which our U.S. clients are happy about) is that many of them see a long-lasting career in the industry where they can literally start at the bottom and rise up the ranks. I’ve seen it happen, and it has happened to me. So, cheer up! The boom will follow after the bust! And, on that note, Merry Christmas and a Happy New Year! z Business Processing Association PHILIPPINES 10 OCTOBER - DECEMBER 2008 People, Places, Events Breakthroughs The Sept. General Membership Assembly Meeting BPA/P’s September General Membership Assembly Meeting (GMAM) was held at the Makati Shangri- La Hotel last September 29. The guest speaker, Michael Palacios, Managing Director of Havoc Digital Inc., spoke about online recruitment initiatives. Also discussed during the GMM was the election of the BPA/P Board of Trustees for 2009. z Jonathan De Luzuriaga, BPA/P’s Industry Affairs Director BPA/P CEO Oscar Sañez with Susan Padley and her StarTek team Cathy Ileto, BPA/P’s External Affairs Director Michael Palacios of Havoc Digital GMM has become an event to look forward to for BPA/P’s 200 members. A Warm Despedida to an Exec Director Globe Business hosted a warm send-off intimate party for BPA/P BPA/P ladies (Rona Quilban, Ali Arboleda & Zyra Rayos Del Sol) man the registration area. Business Processing Association PHILIPPINES Director for External Relations Cathy Ileto at the the Tower Club to celebrate her new venture, as the forthcoming President of Environments Global Foundation. Ileto will oversee all of Environments Global’s CSR initiatives, and concurrently hold the role of Director for Strategic Communications, managing Environments Global Limited’s PR and marketing functions. “I’m looking forward to this role because it will allow me to continue working in the BPO sector, an industry I love for its dizzyingly fast pace and dynamism,” says Ileto. “It’s exciting because Environments Global is at the cutting-edge of design and engineering, even by global standards.” By Doy Roque, Managing Director, MediaMeter. From l-r: Juris Umali, Chief of Staff of First Gentleman Mike Arroyo; Cathy Ileto; and BPA/P ladies Nette Roselo, Rona Quibilan, Zyra Rayos, and Gigi Virata From l-r: Tina Peregrino, Marketing Exec. Globe Business; MJ Hyndman, Lead for Marketing Services, Globe Bus.; Jay Perez, Marketing Exec, Globe Bus.; Doy Roque, Managing Dir., Media Meter; and Jesus Romero, Head, Corporate Group, Globe Bus. www.bpap.org Breakthroughs People, Places, Events The Elections of the Board of Trustees OCTOBER - DECEMBER 2008 11 Giselle Sanchez, host for the evening Raul Pagdanganan, CFO, Eastern Telecom BPA/P members line up at the registration area. The atmosphere is charged with anticipation The October General Membership Assembly Meeting last Oct. 27 at the Blue Leaf Events Pavilion was special in that it was the Election Night for the new Board of Trustees for 2009. z Turn to page 14 www.bpap.org Business Processing Association PHILIPPINES 14 OCTOBER - DECEMBER 2008 People, Places, Events The Elections of the Board ... Breakthroughs Continuation from page 11 Time to celebrate! From l-r: Dan Reyes, Sitel; Barry Marshall, JP Morgan Chase Bank; Miguel Garcia, DTSI; Eric Alberto, PLDT; Ester Punongbayan, Punongbayan & Araullo; Jesus Romero, Globe Business; Fred Ayala, LiveIt Solutions; Jojo Uligan, CCAP; Edwin Domingo, Eastern Telecom; Atty. Bob Guinto, NMGRA; and Jonathan De Luzuriaga, BPA/P. Information about the candidates is prominently displayed. Maulik Parekh of Teletech, Roel Ramos of BPO Training Academy, Dan Reyes of Sitel, Glad Ramos of BPO Training Academy Dave Rizzo and Eric Concepcion from Teleperformance and Grace Castillo of Globe Telecom From Epldt Ventus: Patrick Dy, Jessica Powell, Joseph Verzosa and Helen Marquez BPA/P members cast their vote for the new Board of Trustees. Industry members and Non-Industry members vote for their representatives. Business Processing Association PHILIPPINES www.bpap.org Next-wave Cities Breakthroughs OCTOBER - DECEMBER 2008 The Top 10 Next Wave Cities One of the many attractions of Sta Rosa, Laguna is the theme park The Enchanted Kingdom. The Battle of Imus monument commemorates the prominent role that Cavite played in Philippine history. BPO campus Nuvali is Sta. Rosa’s newest prime real estate located south of Metro Manila and less than an hour away from Makati. By Gigi Virata, Alma Mae Agne, and Tonette Consuelo A brief overview of the best locations for outsourcing outside the NCR On November 3, 2008, Commission on Information and Communications Technology (CICT) Secretary Ray Anthony Roxas-Chua III, Business Processing Association of the Philippines (BPA/P) Chief Executive Officer Oscar Sañez, and Board of Investments Executive Director (ED) Celeste Ilagan publicly announced the Philippines’ top 10 Next Wave Cities (NWCs) for outsourcing. Metro Laguna, Metro Cavite, Iloilo City, Davao City, and Bacolod City are, based on the BPA/P-CICT-DTI NWC Scorecard, the best locations for outsourcing in the Philippines outside of Metro Manila and Metro Cebu. Angeles-Clark-Mabalacat, Baliuag-MarilaoMeycauayan, Cagayan de Oro City, MalolosCalumpit, and Lipa City make up the rest of the top ten. These cities and municipalities garnered the highest scores for availability of talent, which carried 50 percent of the overall score. Other factors considered were infrastructure (30%), business environment (15 %), and cost (5 %). The aim of producing these rankings is two-fold: to provide investors with credible and objective information on recommended outsourcing locations; and to provide benchmarks for local stakeholders to improve their capability to host outsourcing operations. Achieving these goals should help lower the concentration of the IT-BPO industry in Metro Manila and Metro Cebu; together, employment in these two major locations comprises 86% of the entire industry. Spreading operations to other locations would avoid heated competition that could lead to spiraling salary rates and real estate rentals—such as was beginning www.bpap.org to happen in Makati City before the opening of several alternative locations within and outside of Metro Manila. The announcement of the top 10 NWCs capped a year-long validation and refinement process of the scorecard by the NWC technical team led by CICT Commission Monchito Ibrahim and the writers of this article [Ms. Virata is the BPA/P ED for Information and Research, Ms. Consuelo is a BPA/P Research Consultant and Ms. Agne is the CICT Head Executive Assistant – Ed]. This most productive and congenial publicprivate partnership also involved participation from other DTI units such as the Regional Operations and Development Group (RODG) and Philippine Economic Zone Authority (PEZA); and BPA/P members Jones Lang LaSalle Leechiu (JLLL) and John Clements Consultants (JCC). Information was provided by the Commission on Higher Education, ICT councils, PEZA, and the Philippine National Police as well as JLLL, Ayala Land, Bayan, CB Richard Ellis, Colliers, Eastern Communications, Globe Telecom, Meralco, and PLDT. The team also consulted organizations such as PAG-ASA and the National Electrification Authority (NEA). Demographic and other data were culled from the Web sites of other organizations such as those of various airlines and locations, the Department of Tourism, Manila Observatory, National Statistics Office, National Statistical Coordination Board, and NEA. The current version of the scorecard evolved from the original scorecard produced by the Roadmap Team of BPA/P and McKinsey and Company in the first half of 2007. Originally, 43 locations were considered including locations in Metro Manila and Metro Cebu. A memorandum of agreement between BPA/P, CICT, and DTI was signed in November 2007 and this collaboration produced the second version, which was rolled out at the eServices conference in February 2008 by Sec. Chua and covered 18 locations 15 A popular commercial complex rises in Cavite. with ICT councils. In July 2008, the NWC Working Group was convened—led by Sec. Chua, Sañez, and Ilagan; and including David Leechiu of JLLL, Carol Dominguez of JCC, Ibrahim, representatives from CHED, DTIRODG, and PEZA, and this article’s writers. The group identified 50 locations out of more than 1,600 cities and municipalities across the country for inclusion in the scorecard. Locations within close proximity to each other and, thus, sharing resources, were later grouped (such as locations in Metro Laguna, Metro Cavite, and Bulacan) to reduce the scorecard list to 30 potential locations. Locations 11 to 30 will be featured in publications on the NWCs planned for 2009. Here is a brief overview of the top 10 cities and the qualities that placed them on that list: 1. METRO LAGUNA Situated just 30 kilometers (km) south of Metro Manila, Laguna can be accessed via the Southern Luzon Expressway (SLEX) or the eastern road that winds through the towns of Anitpolo and Tanay. It topped the list of the country’s Next Wave Cities by garnering an overall score of 88.35% and scoring highest in talent. With its proximity to Metro Manila, Metro Laguna enjoys the same first-rate infratructure facilities such as telecommunications, road network, and power rates. The availability of big tracks of commercial spaces is imminent with the emergence of techno parks and BPO campuses from top-rated real estate firms. Laguna plays host to several industrial parks where different corporations, multinational and local, are nestled. As a major contributor to the gross national product, it is known as the Silicon Valley of the Philippines and the Automotive Capital or the Detroit of the Philippines. The stable peace-and-order situation continues to attract investors to Laguna. Laguna’s primary resource is its skilled manpower. Metro Laguna, which is comprised of Sta. Rosa, Calamba, Los Baños, Cabuyao, and San Pablo has access to a combined college graduate pool of over 148,000 annually and over 6 million people in the BPO-relevant labor force. It is home to a plethoria of esteemed academic institutions like the Ateneo de San Pablo, Collegio de San Juan de Letran, Laguna State Polytechnic, Mapua Institute of Technology in Cabuyao, Polytechnic University in Sta. Rosa, and the University of the Philippines in Los Baños. 2. METRO CAVITE Situated some 30 km south of Metro Manila, Metro Cavite’s strategic location has helped it become one of the country’s more viable sites; a place where investments and trading have prospered. According to PEZA, Cavite has 13 economic zones and other industrial estates hosting international and local companies engaged in processing and packaging agricultural products, or in manufacturing, IT, and BPO. The local government of Cavite has created an attractive investment environment by adopting local investment incentives in addition to those of PEZA. Infrastructure, particularly power and telecommunications, is more than adequate to serve the needs of its burgeoning business activities. Telecom providers like Digitel, Globe, PLDT, and their wireless subsidiaries have a strong presence in Cavite, ensuring redundancy for IT-BPO companies. Another factor that makes Metro Cavite a preferred destination for ITBPO is its wealth of human capital. Universities and colleges within Cavite are readily accessible to its residents. An added advantage of Cavite is its proximity to Metro Manila where most Caviteños go for higher education. Turn to next page Business Processing Association PHILIPPINES 16 Next-wave Cities OCTOBER - DECEMBER 2008 The Top 10 Next Wave ... Breakthroughs Continuation from page 15 Home to the world-famous Maskara Festival, Bacolod plays host to both local and foreign tourists who flock to witness and be part of the annual Mardis Gras-style fiesta. 3. ILOILO CITY Iloilo City is considered the center of finance in the Western Visayas Region. Its location, likewise in the center of the Philippines, makes it accessible to other regions by air, land, and sea. Though it is known as an important producer of agricultural and fishery products, the number of businesses, especially BPO companies, which are setting up shop in the region, is rising. Some of these locators include Callbox Customer Contact Center, ePLDT Ventus, Global Mega Communications Inc., SPi Corp., Techno Call Corp., and TeleTech. In recognition of the importance of the ITBPO industry, several of Iloilo’s universities have incorporated call center fundamentals in their courses. Four institutions offer finishing courses for call center agents and medical transcriptionists with full scholarships from TESDA. There are 13 major academic institutions, including the University of the Philippines–Iloilo, which produce over 13,000 graduates a year. 4. DAVAO CITY Davao City was featured lengthily in the September issue of Breakthroughs! This major province in Mindanao boasts of six major call centers, over 3,000 BPO employees, and was named the Philippines’ Most Competitive City in the Asian Institute of Management’s Philippine Competitiveness Ranking project in 2007. 5. BACOLOD CITY Bacolod City has consistently gained top ratings in surveys and studies of prominent business organizations: Most BusinessFriendly City in both 2007 and 2006 by the Philippine Chamber of Commerce and Industry; top 5 in the Most Competitive Mid-Sized Cities in 2005 by the Asian Institute of Management in coordination with USAID, the German Technical Cooperation, and Asia Foundation; and number 1 in that latter category in 2003. With a 99.6% rating in crime solution efficiency, it was awarded the Best Peace and Order Council in 2007. Bacolod is a thriving BPO hub with over 4,000 workers in the ICT sector. They are employed in major companies such as Convergys, TeleTech, and Teleperformance. Forty colleges and universities within Negros Occidental produce 10,000–14,000 graduates a year. There are also TESDAaccredited call center training centers and a training center for medical transcription. The five presidentially proclaimed IT zones are the Bacolod IT Park, East Bloc IT Park, Luxor Plaza IT Center, Monfort IT Building, One Sanparq, and Robinsons Metro Bacolod. The major airlines service the new Bacolod-Silay Airport, while13 operational ports provide access to the region by sea. A road network connects Bacolod to the whole island of Negros. Bacolod City has 40 major real estate developers providing the city with prime commercial spaces like Robinsons Land Corporation (above) for prospective IT-BPO locators. Mixing business with pleasure in Bacolod is not hard to do. The place is full of rich historical sites, resorts and hotels to unwind and relax. 6. ANGELES-CLARKMABALACAT BPO Sites Existing Call Centers (Medium to Big) Bert Barriga A map of the IT-BPO hubs in Davao Business Processing Association PHILIPPINES Angeles City has emerged as a first-class, highly urbanized city after clawing its way out of the devastation of Mt. Pinatubo’s explosion that paralyzed the province of Pampanga. The Clark Freeport Zone in Angeles City is an investor’s haven, playing host to companies like FedEx, Texas Instruments, United Parcel Services, Yokohama Tire Philippines, among others. It also is home to established IT-BPO companies like CyberCity Teleservices, eTelecare, Intellirisk Phils. Inc., NCO, SPi Corp., and Sutherland. The need for skilled manpower is readily addressed by the presence of 159 established and renowned academic institutions located in the heart of Angeles City like the AMA Computer Colleges, Holy Angel University, Philippine Womens University, STI Colleges, and the University of the Philippines– Pampanga, as well as other colleges and universities conveniently located around the city. Its minimum wage is pegged at US$0.8 per hour. Companies in the freeport enjoy generous tax incentives such as a 5% tax on gross income earned in lieu of national and local taxes, duty-free importation of equipment and raw materials, exemption from real property taxes, and free movement of goods within the zone. Another incentive is that foreign investors (of any nationality) are now permitted to maintain 100% foreign equity in all areas of investment which they will set up in the Philippines, provided such companies are neither financial institutions With 10,000-14,000 graduates every year coming from 14 colleges and universities within the city itself, Bacolod has more than enough skilled talent to power the HR needs of any IT-BPO locator. nor are indicated in the Foreign Investment Negative List. Clark’s excellent infrastructure includes a 400-km high-grade road network and telecom providers like Digitel and PLDT. The zone is equiped with a high-speed fiber optic cable, redundant fiber optic loop, as well as STM1 and multiple STM1 capabilities. Power rates in Clark, at $0.11/kwh, are the lowest in all of Luzon. The Diosdado Macapagal International Airport boasts of two runways that are capable of NASA Space Shuttle Landings. The facility will be developed as the Philippines’ premier gateway airport replacing the Ninoy Aquino International Airport by year 2010. Once completed, it can accommodate an Airbus 380 and will be one of the biggest airports in the world. 7. BALIUAG-MARILAOMEYCAUAYAN Meycauayan City, one of the three component cities of the Province of Bulacan, is located just 19 km north of Metro Manila. Meycauayan is a first-class city known for its jewelry and tanning industries and home to several industrial parks. Baliwag and Marilao are first-class urban municipalities. Baliwag’s economy features shopping centers and numerous banks as well as the province’s transportation hub; while Marilao is famous for its metal craft, food processing, and garments industry. Baliwag has the best private education in the province, where its reknown and established academic institutions attract students from as far as www.bpap.org Breakthroughs Next-wave Cities OCTOBER - DECEMBER 2008 17 The entrance to the Clark Freeport Zone covers a massive 28,000 hectares of property, formerly used by the United States Air Force as one of its military bases in the Philippines. 47,000 people from within the areas of Pampanga, Bulacan and Tarlac provide manpower fueling the development of the local economy. Copyright: www.istockphoto.com A diagram of the Gbps Digital Fiber Optic backbone that undergirds Cagayan de Oro Stepping out of the new Diosdado Macapagal Airport in Clark, one is met with low airport traffic. Pampanga (to the South), Norzagaray (to the North), Gapan (to the West) and Calumpit (to the East). The triumvirate of Baliwag, Marilao, and Meycauayan had an overall score of 73.53 % in the Next Wave Cities scorecard. In terms of infrastructure, this seventh-best outsourcing location scored an impressive 94.67% for infrastructure putting it at par with Metro Manila—specifically in telecommunications, power, and a worldclass road network featuring the North Luzon Express Way. 8. CAGAYAN DE ORO CITY Cagayan de Oro City (CDO) in Northern Mindanao has eight universities, 70 colleges, and six computer technology institutes, and its graduates are filling the seats of eight BPO centers. CDO is also known as a center of talent development in the fields of computer science, IT education, and mathematics. IT-BPO infrastructure in CDO consists of three IT parks and four IT buildings, all of which are PEZA-registered. Also present are the major telecom companies with unlimited capacity and with fiber optic lines. The www.bpap.org region is connected to the surrounding areas by an international airport in Laguindingan, diversion roads, and modernized seaports in Macabalan and Phividec. 9. MALOLOS-CALUMPIT The cities of Malolos and Calumpit are only 45 kilometers away from Metro Manila and thus enjoy the same first-rate infrastructure facilities and utilities as the megalopolis— in particular, its telecommunications, road network, transportation system, and power supply. This factor helped them achieve an overall score of 73% in the Next Wave Cities scorecard. The steady industrialization of MalolosCalumpit is evident in the increasing number of major commercial and banking establishments setting up shop in the are—including DBP, Keppel, and RCBC. Economic zones Bulacan Agro-Industrial Subdivision and First Bulacan Industrial City are location options for investors. The hub has a 108,000-strong labor force and taps a pool of about 4.2 million professionals from surrounding provinces and the NCR. Malolos-Calumpit is a The Next Wave city of Lipa is located in Batangas which is near the NCR. center of education in Central Luzon that produces 5,200 graduates. Other educational institutions outside the area but within a 50km radius serve as sources for about 103,000 fresh graduates every year. Some of the tertiary and specialized schools include AMA Computer College, Bulacan Polytechnic College, Bulacan State, Call Center Academy, Centro Escolar University, Divine Colleges of Malolos City, St. Augustine College of Nursing, STI College, TESDA–Provincial Training, and University of Regina. 10. LIPA CITY Lipa City, with its modern infrastructure and the highly qualified talent pool, has a business environment highly suited for the IT-BPO operations. First movers Advanced Contact Solutions (ACS) and Teletech opened their facilities in Lipa in 2007 and never looked back. In about a year of operations, total employment for these BPO centers grew to 2,300 full-time employees from 1,400. ACS and Teletech maintain a combined total of 1,800 seats. Lipa offers business-ready properties to investors, all equipped with world-class facilities and infrastructure. It is host to the LIMA Industrial Estate (economic zone) and multinational companies such as Nestle. The growing number of business locators like banks, financial institutions, and large shopping centers benefit from the city’s telecommunication facilities, transportation networks, and public transport system. Highways Southern Tagalog Arterial Road (STAR) and SLEX provide convenient access to Metro Manila and other neighboring cities. Among the most prominent tertiary schools in Lipa are De La Salle Lipa and Lipa City Colleges which offer undergraduate and graduate programs in various fields of study (arts, sciences, communications, business and economics, tourism and hospitality management, engineering, computer science, education, and nursing). Other tertiary educational institutions in the city are ABE International College of Business and Economics, AMA Computer College, Philippine State College of Aeronautics, and STI College. These schools turn out 3,000 English-speaking graduates a year. z Business Processing Association PHILIPPINES 18 OCTOBER - DECEMBER 2008 Executive Profile Breakthroughs Welcoming Innovation Susan Padley: The mastery of change and the building of a strong core group are the elements that contribute to StarTek’s 20-year success Although working in a BPO is considered a prestigious opportunity to earn a big salary in the Philippines, a common misperception is that industry employees are doomed to repetitive work, in offices that are bereft of any sense of fun and enjoyment. The reality is very, and pleasantly, different, and a legacy BPO company relatively new to the Philippines has set out to show just how much. At the Makati-based site of StarTek, Inc., brightly painted interiors greet prospective agents who are plied with free coffee or tea and are entertained by videos while they undergo the application process. StarTek General Manager and Regional VicePresident Susan Padley explains that the process is actually the first building block in developing a StarTek agent. “Application can take a couple of hours, so we want the career center experience to be fun,” she says. “This is our way of communicating to applicants that our company puts balance in their lives. We like to work hard but play and have fun too in a very healthy way.” Indeed, when it comes to its services, StarTek is no nonsense. Founded in 1987 as a small product packaging and fulfillment company, StarTek, then known as StarPak, quickly built upon its early success and opened its first customer contact center in Greely, Colorado. It now offers a variety of BPO solutions such as Customer Care, Technical and Product Support, Upsell/Cross-sell Campaigns, New Sales, Provisioning, Receivables Management, and Retention/Loyalty Program solutions to clients The company has also grown to 21 call centers in North America, recently adding its newest flagship facility in the Philippines. Padley says that StarTek wants everyone to feel at home. Employees are permitted — even encouraged — to bring personal possessions to decorate and personalize their workspace. “It’s always good to have family photographs around,” she says. “We want our people to surround themselves with what’s comfortable for them and what they are closest to. After all, this is their second home.” its business. StarTek’s IT infrastructure provides access to both global and at-home resources and multi-channel support through IVR, e-mail, and chat capabilities. “StarTek agent performance technologies ensure that a customer will reach a knowledgeable representative who will quickly resolve their issues and provide an outstanding customer experience,” Padley explains. This opportunity to manage change and make it work to one’s advantage was one of the things that attracted Padley to the BPO industry 22 years ago. She admits, “When I go to work, I have a plan and then the plan changes and I love that. Change is good as we learn with every change that occurs. I enjoy the challenge to solve our customers’ problems and while helping them accomplish their business objectives.” Following a stint working on an MBA at Dallas Baptist University, Padley’s “baptism” in the industry began with a large telecommunications firm in Dallas, Texas. In 2004, she launched the Olympic Ticketing Call Center in Athens, Greece. She recalls fondly, “It was exciting to watch a ticketing center grow from a shell of a building with one employee to hundreds of agents taking calls in five languages talking to customers all over the world.” The next challenge came a year later and Padley was launching another new ticketing call center and implementing communications and customer service systems in England. The globe-trotting General Manager’s current position fulfills a dream to work for a lengthy period of time in a foreign country. It seems that this fun-loving problem-solver and innovator has found kindred spirits in the Philippines. She says about her Filipino workforce, “They’re genuinely interested in success. They really want to solve the customer’s problem; they don’t want him to hang up or go away, and not be cared for the right way. They’re educated, either getting their degrees while they’re working, or they have them when they come through the door. They’re very well spoken and definitely bilingual. It’s hard to speak English if it’s not a first language, but our Filipino workers do it beautifully.” She pauses and then chuckles, “And they also have an interest in having some fun while doing the work.” Cultivating a family spirit That philosophy contributes to building an obvious camaraderie as well as confidence and a strong esprit de corps that is critical to the smooth functioning of a productive organization. As Padley describes it, “We spend a lot of time together and it’s important that we work well together and enjoy each other’s company. Because we do, we produce high-quality results, and love the work because we feel we are making important contributions that help people as well as organizations.” The General Manger herself prefers to be called by her first name in line with her open-door management policy and the spirit of family the company cultivates. “Yes,” she says simply. “I want people to know who I am.” Joyce Peñalosa, StarTek’s Director for Human Resources, describes how Padley’s approach motivates her people and encourages them to be more participative: “She trusts her direct reports and as a result, they are empowered to meet, and in many cases, exceed expectations.” She adds, “Susan is very generous in sharing her past experiences, which is meant to inspire the team. What I appreciate most about Susan’s management style is her genuine interest in and respect of Philippine culture, which is then translated into how she adjusts her style depending on work situations. This trait is rarely displayed by expatriates who are assigned to the Philippines, which is why she was easily embraced by the team from the beginning.” Business Processing Association PHILIPPINES By Jason John S. Lim Photos by Paul del Rosario Strong support Seeing her people grow is a source of major fulfilment for Padley, a BPO veteran. Flexibility is in fact part of Padley’s distinct style. For instance, as a matter of policy, employees are requested to speak in English during work hours because StarTek’s clients are English speakers. However, says Padley, “although we don’t put up signs we do make requests for them to speak English while they’re in the building. We honor the fact that they were raised in the Philippines and that Tagalog is a very important language to them.” This authentic concern for employees and their development provides a genuine sense of customer service that in turn strengthens long-lasting client relationships. Padley elaborates, “A successful company is one that listens to its clients and their customers to create and deliver solutions that achieve client goals. At all levels of the organization, our people can make a difference by listening and responding to the needs of our clients and their customers. This approach to our work and our culture provides StarTek a distinct advantage within the BPO industry, because we do not accept the status quo. We continually work to improve processes and responsiveness, and the culture that drives this effort is difficult to replicate.” Riding the wave of change This refusal to be hemmed in by “business as usual” coupled with a spirit of innovation that pushes the envelope can be traced to the company’s transformation from StarPak to StarTek in the late ‘80s. Padley recalls, “We transitioned from providing productpackaging and fulfillment services for large technology firms when the Internet came of age and customers began downloading software and manuals online. As part of the fulfillment process, we began to answer technical questions for our large technology clients and our outsourced customer care business was born as a result. Transitioning to customer support allowed us to expand our client and service reach, as well as our product offerings.” This investment in change continues, and is seen in the company’s enthusiastic embrace of new technologies that enable and enhance Padley also has her share of cheerleaders, namely her two children and husband of 20 years, Jackson, who she jokingly calls “Sir” and whom she refers to as her counselor, coach, motivator, and best friend. She says with a smile, “I can’t do it without his patience and support. Every day he makes me laugh so I don’t get too serious. My children are also key to my happiness. Robb is a CFO in Oklahoma City and Chelle is an elementary school teacher. They play a huge role in my life and I am so proud of how they grew up and are raising their own children.” But Padley has her hands full nurturing another family here, given her marching orders to accelerate the ramp-up of the Makati site and lay down future plans for expansion. She accepts the challenge, saying confidently, “My greatest satisfaction is watching the growth of my team: agent to Team Lead, Team Lead to Manager; Manager to Director; and up. Their progress, their learning, their energy and passion for doing their best all the time is what thrills me.” “I get a lot from that – and I like to build and then hand over to others,” says Padley. “In my 22 years, I have always been proud of my team’s success and have never been disappointed at what can be accomplished with common goals and principles.” z www.bpap.org Breakthroughs Company News OCTOBER - DECEMBER 2008 19 Aegis Concludes the Merger of PeopleSupport CB Richard Ellis and Chevron in Business Mirror Forum on US Presidential Election’s Impact on the Phil Economy Aegis BPO Services Ltd., an Essar When the United States sneezes, the rest of the world catches a cold. Thus, the possible Group Company and a leading global business process outsourcing (BPO) provider has concluded the merger of PeopleSupport, Inc. (Nasdaq:PSPT), a leading offshore BPO provider, hrough its wholly owned subsidiary Essar Services (Mauritius). The combination creates a new global BPO leader with revenues of approximately $450 million, nearly 30,000 employees and 20,000 production seats in 31 locations worldwide, servicing over 60 different clients, most of which are Fortune 500 companies. In India, Aegis BPO is also the largest domestic BPO provider with a dominant presence in telecom, banking, and financial servies. This is the 11th acquisition of Aegis in the last three years. With the completion of this merger, Aegis has demonstrated a distinctive intellectual property of being one of the fastest aggregators of organizations in the services space across the world. This business combination catapults Aegis into a differentiated league of service providers with deep domain knowledge in telecom, banking, and financial services, insrance, healthcare, travel and emerging enterprises, with delivery platform spanning onshore, enar shore and offshore, thus providing end to end global delivery for all their clients. This global delivery platform provides right shoring opportunities for United States corporations helping them to significantly optimize their total cost of ownership. Aparup Sengupta, Global CEO and Managing Director of Aegis, commented, “We are extremely pleased to welcome PeopleSupport’s clients and employees to www.bpap.org our organization. The combined entity will offer clients and prospects an expanded set of solutions and services from a broader geographic delivery platform. With significant operations in the Philippines, India, the U.S., and Costa Rica, Aegis BPO provides cost-effective high-quality solutions. We will continue to serve PeopleSupport’s clients with their existing treams and with the same high-quality services they have come to expect.” Lance Rosenzweig, PeopleSupport CEO, said, “We are excited to become a member of the Aegis family and to create a global BPO leader offering award winning solutions. Our focus on high performance outsourcing locations will continue, and our value proposition is now stronger as we expand our industry and process expertise, service offering, and global delivery platform.” Rosenzweig continued, ‘We are pleased to close this transaction in light of the current economic environment, and we believe this is a testament ot the world-class organization that is Aegis and the Essar Group. This also reinforces the values of trust, goodwill, and honor that are prevalent at Aegis and Essar Group. We are proud to become part of such a high quality organization.” On October 30, 2008, the certificate of merger was filed with the office of the Secretary of State for Delaware, and PeopleSupport became a wholly-owned subsidiary of Essar Services, Mauritius and Aegis BPO. PeopleSupport also reported that it has filed for delisting of its stock with NASDAQ and has filed with the Security Exchange Commission (SEC) for deregistration under the Securities Exchange Act of 1934. z effects of the U.S. Presidential elections on the local economy were discussed by CB Richard Ellis Chairman Rick Santos, BPA/P Chief Executive Officer Oscar Sañez, and Chevron Country Chairman Randy Johnson with the Business Mirror’s Senior Editors last October. Santos gave an overview of how the world would change after the election, in particular how the Philippines is well positioned to withstand the current economic chaos, with the financial systems having learned some valuable lessons from the 1997 crisis. He also commented on how neither U.S. presidential candidate would be able to alter the offshoring trend to “bust” the much-touted BPO boom. Sañez described BPA/P’s efforts to work out the math: they were unable to generate a scenario where enough tax cuts for U.S. businesses that create jobs locally could equal the savings generated by putting up an office in the Philippines. Speaking for one of the first companies to put up a shared services shop in the Philippines, Johnson described Chevron’s activity in Manila as an important and geographically strategic unit in the multinational’s operations. “We don’t refer to our business here as outsourcing,” he said. “Our Manila operations are an integral part of Chevron’s global business – we’re in it for the long haul.” z Synnex-Concentrix Receives 2008 SSS Balikat ng Bayan Award SYNNEX-Concentrix Corporation recently received the 2008 SSS Balikat ng Bayan award for top employer in the large-sized category, Mindanao cluster. It is the only BPO company to receive the recognition in the said area. Jhayner Bufi, Concentrix HR Director, accepted the award from SSS President and CEO Romulo L. Neri, in ceremonies held last September during SSS’ 51st anniversary at the Ramon Magsaysay Hall, SSS Building, East Avenue, Quezon City. The Balikat ng Bayan award is given to employers, collecting and paying banks, and financial institutions in recognition of their invaluable support to the SSS programs and committed performance as SSS partners. According to Attorney Josefina M. OlanFornilos, SSS Assistant Vice President for the Northern Mindanao cluster, SYNNEXConcentrix was chosen for the company’s compliance with the provisions of the Social Security Law in terms of coverage, collection and giving out of benefits, accuracy and timeliness of the submission of reports, and participation in SSS programs. Aside from its three sites in Metro Manila, SYNNEXConcentrix also has offices in Davao and Cagayan de Oro. Present during the awarding rites were SSS Chairman Thelmo Cunanan and Health Secretary Francisco Duque III. SYNNEX-Concentrix is part of the Fortune 500 firm Synnex Corporation which has been operating in the U.S. for 25 years. z Business Processing Association PHILIPPINES 20 OCTOBER - DECEMBER 2008 Company News Breakthroughs Prime Communications Enhances SME Reach with EMC Information Infrastructure EMC, the world leader in information infrastructure solutions, announced that Prime Communications, the leading internet protocol (IP) communications service provider in the Philippines, is the first company in the country to implement the EMC® CLARiiON® AX4 networked storage system, a highly flexible, available and scalable storage area network (SAN) system for small and medium businesses (SMBs). The CLARiiON AX4 can easily be deployed, expanded and reconfigured in traditional IT environments with no application downtime, and is helping Prime Communications implement a more costeffective information infrastructure. It does so by reducing its number of servers, and helping minimize maintenance and operating overheads, while increasing processing capability, storage capacity and ultimately, uptime for the business. Prime Communications, formerly known as Pacific Internet, is the leading customer service-focused IP communications service provider in the country. The company partners with world-class technology players to help small and medium enterprises (SMEs) grow their businesses by providing a full suite of IP services, which include Internet access delivered via wired or wireless solutions, managed Internet security, back-up and disaster recovery services, VoIP, VPN, data center services and customisable value-added services. In order to provide these services to their customers, Prime Communications needed a reliable, scalable and cost effective information infrastructure solution. “We’re a small, but growing company and needed a more sophisticated storage solution for our server environment,” said Prime Communications MIS manager, Leo Veroy. “The model that was in place in our company was the ‘server farm’ concept where each solution was stored on a dedicated server. We ended up having to maintain multiple servers at an unreasonably high cost,” he added. With a view to implement networked storage and realize the benefits of a storage area network, Veroy considered multiple network storage arrays and finally selected EMC’s CLARiiON AX4 because of its scalability, functionality and affordability. “As a growing company, we also considered what our future needs are going to be and liked the CLARiiON AX4 system’s flexibility and software features, which are a little more sophisticated than you’d expect in an entrylevel networked storage system,” he said. “It was very easy to take the EMC CLARiiON AX4 and plug it and configure it into our existing IP network. Even though none of our MIS team had any hands-on experience in storage administration, the intuitive Navisphere interface was a big help in getting us up to speed and EMC’s partner (MSI-ECS) was more than helpful.” The system was up and running in two hours, and since deploying it five months ago, the company has not required any assistance from EMC or its partner. The CLARiiON AX4 includes features for high availability and reliability that are not typically found in competitive systems of this size. Designed specifically for SMBs, the CLARiiON AX4 is built on the same architecture used in larger, market-leading EMC CLARiiON CX3 midrange storage arrays which have achieved coveted “Five 9s” availability – 99.999% of uptime. It features a mirrored cache design, builtin standby power supply, continuous disk ICT Phils. Partners With DOS-1 for E-Transcript Services consistency checking and hot swappable components which provide superior levels of data availability and reliability. For Prime Communications’ customers, the coveted “five 9’s” technical performance benchmark translates to an assurance of not having more than five-minutes of unplanned downtime per month. “When our network operations center receives a call from a client, they need to be able to access data about that client fast,” says Veroy. “By being able to guarantee that the servers and services will be up for them, we are providing crucial business continuity to our external clients.” To date, these external clients include one of the country’s leading universities and several government agencies as well. With EMC as technology partner, Veroy looks forward to better things to come for his company. With its built-in advanced information management and protection features, AX4 can also store, manage, secure and protect data from up to 64 Windows, Linux, Unix, NetWare and/or VMware Infrastructure hosts in a high availability set-up. It is designed for various applications including Microsoft Exchange, SQL, Oracle and SAP, and can be configured with up to 60 SAS and SATA II disk drives for an optimal mix of performance, cost and energy efficiency. For Prime Communications, the AX4 made it possible to integrate different business systems running on divergent platforms, with Unix-based and Microsoft-based solutions now integrated at the database level. Veroy said that by migrating certain applications and databases to the CLARiiON AX4, Prime Communications was not only able to reduce its number of servers, but they also minimized their maintenance and operating overheads, while increasing KSearch Celebrates 9th Anniversary KSearch Asia Consulting, Inc., one of the Philippines’ leading executive search and recruitment firms, celebrated its Signing the partnership agreement on the 25th of September 2008 were (from l-r) Account Executive for AIR21 Patrick Caces, DOS1 Business Development Head for Homegrown Projects Joanne B. Ramos, DOS1 President Edgardo Cayton, ICT Philippines Recruitment Director Marie Curitana, ICT Philippines Assistant Manager for Talent Acquisition | Sourcing Honeychelle Hernandez and ICT Philippines Assistant Manager for Talent Acquisition | Compliance Louie Ruste. DOS-1 e-transcript has extended its service to companies as part of their hiring process. ICT Group, a leading global provider of customer management and business process outsourcing (BPO) solutions, has teamed-up with DOS-1 e-transcript service for a more efficient, time saving and innovative service package to ensure authentic school documents presented by their applicants. This new concept is specially designed to guarantee the fast, efficient, safe, untampered and timely delivery of authentic official school documents. Transcript of Records in particular, may be requested over the phone which can be delivered right at their doorstep. Business Processing Association PHILIPPINES This is convenience at its best especially during compliance of requirements to prospective employers suitable even for those who are abroad. Present during the signing of the partnership agreement on September 25 2008 were Account Executive for AIR21 Patrick Caces, DOS1 Business Development Head for Homegrown Projects Joanne B. Ramos, DOS1 President Edgardo Cayton, ICT Philippines Recruitment Director Marie Curitana, ICT Philippines Assistant Manager for Talent Acquisition | Sourcing Honeychelle Hernandez and ICT Philippines Assistant Manager for Talent Acquisition | Compliance Louie Ruste. For more information call 7932104 or 4592145 or visit their website at www.e-transcript.com.ph. z processing capability, storage capacity and ultimately, uptime. With fewer servers to maintain, the company saved on licensing and maintenance expenses as well as enjoyed lower cooling and manpower costs. According to Veroy, the Prime Communications MIS staff is now able to serve the company’s other requirements as their time is freed from having to check on the servers. “As the IT environments of SMBs become more sophisticated, customers are looking for storage solutions that are reliable, simple to deploy and, most important, make their lives easier,” said Arnie Alvarez, Solutions Architect of EMC Philippines. “With the EMC CLARiiON AX4, we’re giving the IT manager the tools to act like a storage specialist and to do so with minimal effort and expense. We have taken SAN flexibility and ease-of-use to a new level. It’s a full function storage system that is affordable, has the most important software built-in and can be easily managed and scale to meet the future needs of our customers as their information requirements grow.” The EMC CLARiiON AX4 has made a significant difference in Prime Communications’ business goals. “It is our goal to become the benchmark of customer service in our business sector,” Veroy asserts. “For us to achieve this, we need to be able to maximize the use of our information not just as a resource but also as a tool. We at Prime Communications are convinced that our partnership with EMC will be a big contribution to help us achieve our goals.” EMC Corporation (NYSE: EMC) is the world’s leading developer and provider of information infrastructure technology and solutions that enable organizations of all sizes to transform the way they compete and create value from their information. z 9th anniversary last October 23 at Makati’s premier business club, the Tower Club. KSearch, an active member of the Business Processing Association of the Philippines (BPA/P) and a member of NPA, the Global Recruiting Network, is widely known for providing the executive and managerial requirements of mostly multinational companies, including those in the BPO sector. KSearch’s Chairman Mario Mananghaya and the company’s President and CEO, Manny Guillermo, together with the rest of their management team, Tony Pedro, Karmeli Kintanar, Ruby Barcelona, Lovelyn Marquez, and Dennis Bahia led the company’s 22-strong consulting team in hosting the anniversary party. The theme of the celebration, which was well attended by their clients, industry alliances, the BPA/P leadership, associated companies, and partners in their corporate social responsibility programs, was “Networking for the Future.” At the event, Guillermo, co-Chairman of BPA/P’s Membership Power Committee, agreed with the bullish outlook of the BPO sector for the forthcoming years. This is despite the onset of the financial crisis prevailing mainly in the Western countries that he believes could convert to potential opportunities for the Philippines. z KSearch President and CEO Manny Guillermo www.bpap.org Breakthroughs Company News OCTOBER - DECEMBER 2008 21 IP-Converge Establishes Phil Training Center for Salesforce CRM and Force.com PHINMA to Converge Data Center Inc., the IT and telecommunications division of publicly listed IPVG Corp (PSE:IP) and Select Consulting Partner of NYSE-listed Salesforce.com, announced last September that it will be setting up Salesforce.com’s 3rd Asia-Pacific regional training center in the Philippines. Along with Salesforce. com’s two existing training centers in Hong Kong and Singapore, the new training center will help customers in the Philippines and greater Asia-Pacific region realize success through their use of the Salesforce Customer Relationship Management (CRM) applications and the Force.com platform. Larger customer demand led to the establishment of this training center, with more and more companies turning to ondemand, Software-as-a-Service (SaaS) applications and subscription-based models to drive business growth and achieve operational efficiency. At the new center, Salesforce.com will provide original materials, curriculum, and content for the training sessions while IP-Converge will take care of training and logistics on a quarterly basis. The training center gives users from the Philippines and neighboring countries another option aside from Hong Kong and Singapore. “Customers in the Philippines and Asia Pacific region are adopting Salesforce CRM applications and the Force.com platform in ever increasing numbers,” says Steve McWhirter, Salesforce.com Asia-Pacific President. “We are committed to empowering our customers with the knowledge and techniques to make them successful with Salesforce.com. As our customers’ businesses grow, these regional training centers will help ensure their continued success and help them refine their strategies and solutions.” IP-Converge is the Philippines’ premier proponent of on-demand or Software-asa-Service and provides consultation and implementation services to salesforce.com customers in the country. When IP-Converge became the Philippines Consulting Partner, it foresaw the need to expand training for Salesforce CRM applications since the company believed that Software-as-a-Service would be the new trend in business. “As Salesforce.com becomes more prevalent in the region, we made sure that we had personnel equipped with the right tools to make us the practical destination for Salesforce.com training,” says IP-Converge President Reynaldo Huergas. “IP-Converge is a Salesforce.com Select Consulting Partner with highly trained Authorized Consultants (Level II) who will be conducting training sessions around the product sets for users.” Salesforce.com is the world leader in on-demand CRM solutions and the Force. com platform has helped more than 47,700 customers manage their sales, marketing, customer service, and other critical business functions. Salesforce.com pioneered the concept of delivering enterprise applications via a simple website. z ePLDT Partners with Pru Life UK Phils Threats such as super typhoons and mutinies do not disrupt the operations of Pru Life UK Philippines because of its partnership with the Disaster Recovery service of ePLDT. ePLDT is a premiere ICT company and a leading outsourced data center service provider, trusted by organizations to keep secure their mission-critical applications. It offers a host of IT services, including a range of disaster recovery solutions that help organizations continue operations even in the midst of an emergency. It is well-known for providing enabling infrastructure and services focusing on next-generation communications, connectivity and content to corporate clients and consumers. Brett Medel, Pru Life UK’s Vice President for Information Systems, explains the reasons why they chose ePLDT: “When we toured their data center, we were immediately impressed with its setup. The building was very secure and it has its own power supply – which is very critical for clients like us because we cannot have downtimes on our production.” ePLDT’s Disaster Recovery Solutions provides organizations with seamless continuity and immediate recovery in the event of disasters. The data center has readily available facilities and platforms complete with workstations, telephone and fax lines, and other office equipment such as printers and photocopiers to ensure availability of IT resources for today’s dataintensive business operations. By availing of ePLDT DR (Disaster Recovery) Seats service, organizations reserve the right to use these facilities should the need arise. Companies can have a few of their IT personnel work on resuming operations, or even have an entire department use the facilities as a temporary office. Pru Life UK’s flourishing partnership with ePLDT can also be credited to its entire support team, says Medel. “We have a very good relationship with the technical engineers, customer support group, and the industry manager assigned to us,” he says. “Any time of the day, we can call on them if we need something and they are ready to assist us.” The fast response of the ePLDT team is evident during the DR testing that Pru Life UK conducts twice a year. “We do testing to ensure that the service really works, so we have to familiarize ourselves with the site and test our systems to ensure that we can bring up the production environment at the data center,” Medel says. “From start to finish, the ePLDT team is there to assist us – the industry managers coordinate the entire activity, the support personnel help us in setting up everything,” he adds. “We can really rely on them and they are very good at what they do.” ePLDT Inc., is a wholly-owned subsidiary of telecommunications giant Philippine Long Distance Telephone Co. (PLDT). z Sell Asian Plaza, Inc. The PHINMA GROUP announced its intention to sell Asian Plaza a five-story office condominium building with a gross floor area of 10,310 sq m. on a 3,045-sq. m. property. The building is prominently located at 328 Sen. Gil J Puyat Avenue corner of Tordesillas Street and H. V. de la Costa Street in the heart of Makati City. The property has a redevelopment potential with a FAR of eight for office use and 16 for residential use. Asian Plaza is well positioned, with close proximity to shopping malls, restaurants, entertainment venues, and major office buildings and embassies at the Makati CBD. The property will be offered for sale via shares acquisition of Asian Plaza Inc. The PHINMA Group has in its fold several companies that address the basic needs of the Filipino such as affordable housing, construction materials, hotel facilities, and facilities management. Colliers International, the Philippines leading property Services Company, has been engaged by the Asian Plaza Inc. as exclusive marketing agent to arrange the sale of the property, and it expects strong interest from potential purchasers. “Phinma’s disinvestment plan is timed to take advantage of the strong real estate market and comes in the wake of other major development site acquisitions in Makati in recent weeks.” said David Young, Colliers’ Managing Director. “The sale is expected to attract interest not only from the local development community but also from overseas investors.” The sale will be arranged by way of a Tender process; a formal announcement will soon be made. z Robinson Land Developing Office Spaces for BPOs ROBINSONS OTIS EXTERIOR-mall and office Robinsons Land Corporation (RLC), a premiere property developer that has established an unparalleled multitude of landmark developments, is now strengthening its position as a leader in BPO development in the country. Through the synergy of its Office Buildings Division and Commercial Centers Division, RLC is presently developing and offering office spaces that are suited, designed and equipped for BPO and call-center industry standards. The continuing expansion of the global BPO industry drives RLC to develop more responsive BPO-designed spaces available in both office buildings and mall developments. RLC has successfully established major BPO sites in Metro Manila that have distinguished themselves as thriving and dynamic BPO hubs in their vicinities. Regionally, the breadth of RLC property locations extends to the key urban areas of Cebu, Davao, Northern Luzon, and the Calabarzon. These strategically placed properties offer the absolute advantage of accessibility, security and safety. Furthermore, their proximity to www.bpap.org major landmarks such as schools, public establishments and major thoroughfares gives valued clients the advantage of having strong visibility, as well as ease in recruitment. Aside from well-planned locations, zoning, and implementation, RLC is also committed to deliver world-class facilities and amenities at par with industry standards. With 24/7 facilities for utility provisions, the BPO sites have weathered typhoons and other natural calamities and assure stability for business operations. RLC’s BPO spaces also boast of state-of-the-art communications technology and infrastructure, redundant power capabilities, and cooling capacity. The first to house call centers and other BPOs inside shopping malls, RLC offers a total live-work-play environment. With their worksite’s unique retail and dining components, professionals can dine, shop, relax, and unwind before or after their work shifts. All malls are also near various religious houses; some even have mall masses scheduled every Sunday of the week. RLC’s BPO sites are excellently planned both for the clients’ business activity as well as for the holistic enrichment of their most important assets, the employees. z Business Processing Association PHILIPPINES 22 OCTOBER - DECEMBER 2008 Company News Breakthroughs TeleDevelopment Services and The Call Center School Announce Training Partnership TeleDevelopment Services, Inc. (TDS), the premier training, management, recruiting, and HR solutions provider to the Philippine contact center/BPO industry since 2004, announces its partnership with The Call Center School (TCCS), a worldwide recognized leader in providing comprehensive training and certification programs for all levels of call center professionals. Under the partnership agreement, TDS will provide over 50 TCCS training modules and services to meet the increasing demand for professionally trained team leaders, operations managers, workforce planners, quality specialists, and frontline agents. TDS and TCCS, both headquartered in the United States, now combine their 30+ years of successful international operations and reputation in servicing contact centers. Training courses are available in specialized learning tracks to meet the needs of all levels of call center professionals. Tracks include: • 10-course Call Center Supervision (supervisors, team leaders) • 8-course Workforce Planning and Management • 5-course Call Center Operations • 5-course Quality Assurance • 5-course Leadership/Business Management In addition to the management courses above, the curriculum is rounded out with an eight-course Frontline Fundamentals program available via web or classroom delivery, and a 15-module Call Center ABC’s course designed to acquaint new staff with call center operations. TDS President Jon Kaplan explains, “There is an opportunity for significant development for contact-center middle managers and specialists in the Philippines. Our partnership with TCCS is very exciting, since it will fill the gap in training courses designed to develop current and future team leads, operations managers, workforce planners, and quality specialists. The firstclass curriculum has a proven record of success with all types and sizes of contact centers all over the world. Our TDS trainers will join the experienced TCCS faculty to leverage our experience in delivering course content, which is aimed at the unique Philippine market.” Clients throughout the Philippines can choose from traditional classroom seminars, instructor-led web seminars, and self-paced e-learning programs. Students may attend public deliveries of these programs, or TDS can arrange private, customized programs on any topic. “Our web seminar offerings have been very popular,” says Penny Reynolds, a TCSS founder. “Each web program is packed full of information and is designed to be highly interactive. The 90-minute length allows participants to be more easily released from normal call-center duties for a set amount of time each week. The sessions are also very cost-effective since an unlimited number of students may attend via one web/audio connection. For example, if 15 people attend a public web seminar at a cost of US$300, the cost per person is only US$20. Additional Internet connections can be purchased at reduced rates to support multi-site training needs. For those organizations training several individuals over multiple sites, the company’s per person training cost can be substantially reduced.” z Logica Phils On Path to Growth Logica Philippines’ ambitious headcount growth targets have borne fruit in the accomplishment of its expected milestone in 2008. It now pledges to continue to build on this progress in 2009. Its goal is to have 8,000 staff in its nearshore and offshore centers by the end of 2009 (compared to 3,900 midyear in 2008). Its presence in the Philippines, including new offices in Fort Bonifacio and Makati, will represent a significant component of this increased reach. As part of its growth and expansion plans in the Philippines, Logica has acquired MAPASC Inc., a subsidary company of Michelin that specialized in Application Support & Development in the Philippines. The 36 individuals who joined Logica through this acquisition bring complementary skills to the different teams within Logica. They will join project teams such as application management, support and development, and internal support groups. Further milestones include a longawaited ISO27001:2005 certification and the completion of offices in other floors of the current building. There are also immediate plans of an ISO9001:2000 certification and a CMMi Level 3 assessment by year-end. Logica is a leading IT and business services company, employing 39,000 people across 36 countries. It provides business consulting, systems integration, and IT and business process outsourcing services. z From l-r: Mitch Locsin and Neil Elias of Logica, Rizalino Dalangin and John Ticzon of MAPASC Sitel Footprints: Making Marks on Ilocos Norte and Cavite From l-r: Cavite Prov. Administrator Aristides Velazco, Imus Municipal Mayor Emmanuel Maliksi, Cavite Prov. Gov. Ayong Maliksi, Sitel Phils Chief Operating Officer Tim Hardin, Sitel Phils President Dan Reyes, Sitel Phils Regional HR Director (Metro Manila & South Luzon) Robbie Berba Sitel Philippines provides free skills training through the help of local provincial governments to those who initially may be below the cut to qualify as a call center agent. Officials of Ilocos Norte and Cavite provinces recently signed a memorandum of agreement with Sitel in a partnership that will launch the Sitel Community Training for Employment Program (SCTEP). SCTEP is one of the many components Business Processing Association PHILIPPINES of Sitel Footprints, the company’s Corporate Social Responsibility program. It addresses the industry’s concern on increasing demand for qualified manpower by providing free capability-building training for interested residents of the partner local government unit (LGU) via the Sitel Mobile Academy. The training includes English communication skills coaching, technical and call-center skills workshop, and self-confidence building exercises. The SCTEP was well received by Ilocos Norte, whose governor, Michael Keon, remarked, “It is but proper for us to be ready for the opportunities that the emerging BPO industry brings. We are currently working on the requirements for the inclusion of our province in the Information and Communications Technology (ICT) map of the Philippines, and our partnership with Sitel will help us realize this goal.” Sitel is banking on Ilocos Norte’s untapped pool of talents as the business expands, acquires new clients and braces for its future growth. In return the company gives alternative career options and source of income to unemployed, underemployed, out-of-school youth, returning overseas Filipino workers, career shifters, and retired individuals of the province. Meanwhile, Cavite Governor Ayong said that the soon-to-be-implemented training program in his province would help people earn the necessary skills to qualify for a BPO job. Both Sitel and the local government of Cavite are confident that the SCTEP program will further boost the already rich manpower pool of Cavite. For now, Cavite Computer Center in Imus will house the classes. This was the same strategy used in the farflung provinces of Ifugao and Mountain Province, where hundreds of trainees have already completed the course and have been subsequently hired by Sitel. Sitel is positive that a permanent training facility can open in Cavite. The Ilocos Norte government is already the fifth local government unit to partner with Sitel for SCTEP while the Province of Cavite is the sixth. The program is being implemented in several other areas: Baguio, Tarlac, and La Union, where Sitel Academies have already been established, and Ifugao and Mountain Province, where Sitel Mobile Academy also operates. z www.bpap.org Breakthroughs Company News OCTOBER - DECEMBER 2008 23 Call Design Opens To focus on SaaS Call Design (Philippines), an Australian-based company providing an extensive line of contact center solutions and technologies, set up a local office in Makati City last October. It provides Contact Centre technology and solutions, including Workforce Management, Call Recording, Speech Recognition, and Unified Communication solutions. It also offers Managed Services and Hosted Solutions / Software as a Service (SaaS). According to Jaime Richard Sese, Country Manager of Call Design, there is a great potential in the Philippines for the firm’s technologies and solutions, especially with the country’s contact centers. “With staff recruitment and retention being the number one challenge facing local contact centers today and the constant pressure to reduce costs, businesses need to start thinking how to better optimize their contact centers,” he said. “Call Design’s suite of products and services help contact centers of all sizes optimize their workforce with Workforce Management, improve quality and efficiency with Quality Management, and increase First Contact Resolution by harnessing Unified Communications in the contact center, effectively doing more with less.” With SaaS becoming a more prevalent delivery model, Call Design believes that it can also help take the company further up in the contact center solutions ladder. “SaaS is being utilized more these days especially with underlying technologies that support Web services and serviceoriented architecture (SOA),” explained Sese. “Broadband services have become increasingly available to support user access from more areas around the world and this has increased SaaS acceptance.” SaaS allows smaller businesses access to applications that traditionally were available only to enterprise-class customers, thereby opening up access to world-class products and services to the wider marketplace. Call Design offers applications on a per user basis, which includes installation and maintenance. This significantly reduces the entry costs for smaller businesses. “As global outsourcing becomes increasing competitive we believe that better technology and resources available to both Contact Center Agents and their Managers will help keep the Philippines as a leader in the Outsourcing marketplace,” said Miles Stanton, Call Design Pty Ltd. Managing Director. Harnessing their relationships with global partners has allowed Call Design to expand its operations beyond Asia Pacific. It now has a presence in 17 countries. z Datacraft Helps IPCCO To Quadruple Capacity and Boost Reliability Datacraft, the region’s leading independent IT solutions and services company, has won a deal to help one of the Philippines’ fastest growing BPO providers, IP Contact Center Outsourcing, Inc. (IPCCO), quadruple its capacity within the next 12 months. The project includes designing new architecture, implementing high-availability servers and a sophisticated call-center management solution, and providing carrier-grade support services in the form of Datacraft’s Uptime maintenance service to ensure rapid response to and quick resolution of any IT infrastructure issues. IPCCO began its operations in July 2006 and has already won a number of prestigious outsourcing contracts from Fortune Global 200 and NASDAQ-listed companies. It is the local partner of one of the largest ICT providers in Asia, PCCW Teleservices. One of the fastest-growing contact centers in the country, it identified ramping up its agent capacity as the key enabling factor in expanding its business. With the goal of increasing this capacity from 250 to 1,000 seats in less than a year, without compromising agent performance and affecting customer service, IPCCO recognized its needs to boost its core network. “As an outsourced contact center service provider, IPCCO needs the flexibility and scalability to meet new and growing customer demands while ensuring customer satisfaction,” said Lim Puay Koon, Regional Director for ASEAN, Datacraft Asia. “To meet their business objectives, Datacraft worked closely with IPCCO on the development of a new architecture that would enable a contact center outsourcing model (that) could reduce costs, enhance operational efficiency, and improve responsiveness to marketplace changes.” The new solution is based on the best-inclass Cisco Unified Contact Centre Enterprise for network-to-desktop computer telephony integration and multi-channel contact management over an IP infrastructure. This includes implementing eight units of Cisco’s advanced 7800 Series media convergence servers and upgrading its Cisco Unified Communications Manager (CCM 3.3 to 4.2) and Unified Contact Center Enterprise to deliver advanced presence-based communication applications to IPCCO’s clients and employees. IPCCO Chief Operating Officer Mike Murphy expects to achieve a number of significant benefits from the deployment. These range from making customer service agents more efficient and productive to increasing revenues through upsell and cross-sell opportunities while reducing cost per seat. “Fundamentally, Datacraft is building IPCCO a highly reliable, scalable and futureproofed contact center,” said Murphy. “But there’s much more to it than efficiency and room for expansion. This new architecture will enable IPCCO to deliver powerful self-service solutions that will enhance our customers’ experience.” “The new IP-based network will provide a platform for a new generation of customercentric applications with highly flexible deployment models,” he added. “These will, in turn, allow IPCCO to provide personalized service through unique customer experiences – a key differentiator in an increasingly competitive market.” Datacraft will also provide IPCCO with Uptime powered by Cisco Services – a collaborative service offering developed by the Datacraft-Cisco Global Services Alliance. IPCCO has signed a one-year contract for this service, which will see it benefit from Datacraft’s enhanced service offerings, among them robust service level agreements (SLAs), helpdesk support and problem escalation to the Cisco Technical Assistance Centre. z Convergys’ New Bacolod Contact Center to Employ 1,000 by Year-end Convergys Corporation (NYSE: CVG), a global leader in relationship management, plans to employ up to 1,000 workers in its integrated contact center in Bacolod by year-end. The new facility was launched last October with Her Excellency, President Gloria Macapagal-Arroyo as the guest of honor. Located in One Sanparq, San Antonio Square along Lacson Street, the new contact center currently employs 700 local residents. With this new site, Convergys now has nine of the largest, multi-client, US-companyowned contact centers in the Philippines. The firm has two centers in Cebu and six in Metro Manila. One of the largest and most recognized employers in the country today, Convergys maintains a workforce of over 14,000 Filipino professionals. The 6,000-sqm Bacolod facility encompasses the contact center, administrative offices, recruitment and training rooms, an advanced language laboratory, a cafeteria, and common areas for employees. It is outfitted to international standards with ergonomically designed furniture for contact center work, state-ofwww.bpap.org the-art generators, and specialized lighting. Similar to Convergys centers nationwide, the Bacolod City facility provides both general support and advanced technical help desk services to a variety of clients via traditional voice calling, email, and Web chat as well as “back office” application and document processing. “We have an employee base (made up) of the best minds and talents and have created a competitive advantage by harnessing the individual strengths of peoples and cultures around the world,” said Marife Zamora, Convergys Vice-President and Country Manager, Philippines. “With our new facility here in Bacolod City, we continue to tap the tremendous pool of people resources available in the Philippines.” Convergys has been recognized by the Philippine Economic Zone Authority as Outstanding Employer of the Year twice, as well as Outstanding Exporter. In 2006, the company was honored with the title Employer of the Year at the International ICT Awards. Convergys has also won the Philippine Quill Award in the Employee Communication category. z Business Processing Association PHILIPPINES