Cloud BPO Market Expected to Hit USD94.5bn by 2025 – Orbis
APR 11 – A report released by Orbis Research predicts that the global cloud BPO market will reach USD94.5bn by 2025, rising from USD31.6bn in 2016. Following a significant adoption of Cloud BPO across all major industries worldwide in 2016, companies are anticipated to continue to produce high-quality services by adopting cloud-based technology.
The cloud BPO sector can offer various types of services for different sectors such as human resources, e-commerce, finance and accounting, customer care, sales, and marketing. Major players in the Cloud BPO market include Firstsource Solutions, WNS, Infosys, HCL Technologies, Genpact, and Capgemini.
Local IT-BPM to Boost Exports to $122bn by 2022
APR 11 – Philippines’ exports are expected to reach at least USD122bn by 2022, driven largely by the contribution if its services sectors, particularly the IT-BPM sector. Other major sectors contributing to growth will be electronics, and processed food and beverages.
According to the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB), the export target is achievable because of the ongoing moves to upscale the country’s IT-BPM sector. DTI-EMB Director Senen Perlada stressed that the IT-BPM sector will still need to find ways to provide more value-added IT-BPM services that will make the services sector to remain relevant and more productive.
Vietnam, Philippines Challenge India’s IT Dominance
APR 12 – India’s Ministry of Commerce said the information technology (IT) sector, which accounts for a 45% share in India’s service sector exports, is facing tough competition from lower middle-income countries, such as Vietnam and the Philippines. Sudhanshu Pandey, Joint Secretary at the Indian Ministry of Commerce and Industry, said in a recent presentation that India’s services sector is running out of steam as other countries catch up.
India’s services sector contributes about 62% of gross domestic product (GDP) and it grew 7.7% nationally in 2016-17. 16 states enjoyed growth of more than 10%, with Chhattisgarh state achieving the highest growth.
APAC Managed Services Market Forecast to Hit USD64bn by 2021
APR 12 – A report released by NTT Communications showed that the managed services market in the Asia-Pacific region is on track to hit USD64.01bn by 2020, more than twice its current level of USD28.03bn. The region is also forecast to see the world’s highest compound annual growth rate of 18% in the market, surpassing North America and Europe at 7.7% and 7.2%, respectively.
The report was based on a survey that explored the reasons that managed services providers are being taken on by businesses in Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Thailand to resolve their issues. Results indicate that security and cloud infrastructure were the most frequently outsourced technology services.
New Tax Reform Package to Attract Robotics, AI Firms
APR 13 – Finance Secretary Carlos Dominguez III has said that the second package of the tax reform law was designed to attract new sunrise industries such as robotics, data analytics and artificial intelligence.
Dominguez said these are the kinds of industries that the government wants to attract as AI is poised to disrupt the lower-end of business process outsourcing (BPO) sector. The finance secretary reassured that the second package of the tax reform law will also make the incentives transparent that are targeted on the industries that the government most wants to attract. As well as reforming the incentives system, the second package also aims to reduce the corporate income tax rate from the current 32% to 25%.