Cebu’s Outsourcing Workforce to Grow 5-10% Annually – Colliers
MAR 23 – Colliers Philippines, the local unit of real estate services firm Colliers International, said Cebu’s outsourcing workforce is projected to grow at an annual rate of 5% to 10%. The firm made the projection after revealing that Cebu’s retail market will continue to expand.
The growth of Cebu’s outsourcing workforce will support the expansion of the city’s consumer base, which will result in the further growth of the retail sector. Those employed by knowledge process outsourcing firms, in particular, will receive higher salaries, thereby expanding the purchasing power of the predominantly-young outsourcing workforce, Colliers said.
PEZA-registered Firms Still Enjoy Zero VAT – PEZA
MAR 22 – Companies registered under the Philippine Economic Zone Authority (PEZA) will continue to enjoy zero-rated value-added tax on the sale of goods and services. According to PEZA director general Charito Plaza this follows on from a clarification by the Department of Finance that the TRAIN law did not amend or repeal the relevant provisions of the PEZA law.
The tax incentive is used as a tool to stimulate economic growth, driven by foreign investment, among others. With the status quo remaining, suppliers that are PEZA-registered entities are advised by PEZA to continue applying the zero rate of VAT on their qualified sales of goods and services.
Only 9% of Consumers Think They Get Good Customer Service – Arvato
MAR 21 – According to survey findings released by customer service provider Arvato, businesses may think that the customer service experience they provide is satisfactory, but only nine percent of customers agree.
The survey, which covered 500 consumers and business leaders in the customer service space, found that 89% of business respondents gave their customer service a grade of A or B. 84% also believed that their industries always provide excellent customer service. In contrast, consumers said that while customer service departments do get the job done, the execution is poor and convenience is lacking. Issues like long hold times at 34%, and having to repeat information at 31%, were the biggest complaints of consumers.
BPO Revenue Up 9.6% in 2017 – Central Bank
MAR 20 – Revenues from the country’s business process outsourcing (BPO) sector grew 9.6% last year, according to the Bangko Sentral ng Pilipinas (BSP). The latest data from the central bank showed that BPO revenues reached USD22.1bn in 2017, up 9.6% from a year earlier. BPO revenue is one of the major drivers of the Philippine economy.
Additionally, Rosabel Guerrero, director of the Department of Economic Statistics at the BSP, said foreign direct investment inflows also jumped 21.4% to an all-time high of USD10.05bn last year, from USD8.28bn. Receipts from tourists as well as remittances from overseas Filipinos, also increased.
Universities Pushed to Set up IT parks – PEZA
MAR 20 – Some universities and colleges across the country will soon house information technology (IT) parks if the plan of the Philippine Economic Zone Authority (PEZA) pushes through. PEZA director general Charito Plaza has urged top executives of schools, colleges and universities to venture into ecozone development to attract scientists and venture capitalists into innovation and technology.
PEZA said a new type of economic zone, dubbed as a Knowledge, Innovation, Science and Technology (KIST) park, will be ready for launch soon in partnership with the Department of Science and Technology and the educational sector. The move follows the success of Ayala Technohub in University of the Philippines Diliman.