Wednesday, July 26, 2006

Philippines targets Western Europe ITO/BPO markets

Philippine IT and business processing firms are eyeing Europe’s ITO/BPO market, according to the Center for International Trade Expositions and Missions (CITEM).

“The Philippines will adopt a country-by-country strategy that would fit the service requirements of each region,” said Trade Assistant Secretary and CITEM Executive Director Fe Agoncillo-Reyes. Activities will include business forum on the Philippine ICT advantage, pre-arranged business meetings, and high-level networking reception.


The global outsourcing market is projected to reach US$310 billion in 2008, 22% of which will come from Europe, according to PriceWaterhouseCoopers, one of the largest international professional services firms. The United Kingdom still stands out as Europe’s dominant market, but outsourcing has gained ground in Germany, the Netherlands, Spain, and France.

“The continuing pressure on time to market and cost bases are driving European companies to look at offshore outsourcing as a strategic alternative,” Agoncillo-Reyes said. The financial services sector is the largest consumer of BPO-ITES services in Europe, followed by utilities and telecommunications. Human resources, finance and accounting are also showing notable growth.

Western Europe’s spending on core BPO services will grow from US$20.9 billion from 2005 to US$39.8 billion on 2010, based on a research conducted by research group IDC. The largest was customer care (US$8 billion) and industry-specific BPO (US$7.6 billion). Procurement BPO is seen to be the fastest growing segment, from US$245 million in 2005 to US$716 million by 2010.

Another independent technology and market research company, Forrester Research, estimates that the UK will account for three-quarters of all European offshore outsourcing in five years’ time, with software development as the main service provided.

It was also predicted that large Dutch companies would outsource more projects, while SMEs would follow-suit.

According to Bernd Taselaar of Dutch brand organization ICT-office, on a macro-level, global outsourcing may indeed even improve their market position and give new economic impulses to the ICT sector. “In the Netherlands, we must focus especially on innovative applications and effective use of innovative opportunities,” Tasellar added.

“The EU trade mission is part of our ongoing promotion of the Philippine ICT capabilities to European IT/BPO market,” added Agoncillo-Reyes. The EU trade mission will be held on 13-24 September 2006.

In 2005, the DTI-organized trade mission yielded business leads with Logica CMG, a leading wireless telecom leader with headquarters in the UK that decided to set up an offshore development center and in-house call center in the country; Express Gifts for outsourced call center activities; KLM Royal Dutch Airlines for a shared-facility and contact center operations; Emirates Airlines for BPO and software development services; and HSBC with a prospect to continue its expansion for Philippine-based shared services, among others.

The business mission also aims to strengthen ties with the Philippines’ counterpart organizations such as the London Chamber of Commerce, National Outsourcing Association (NOA), International Association of Outsourcing Professionals (IAOP) in the UK; FENIT, The Agency for International Business and Cooperation (EVD), and CBI in Netherlands.

The Philippines consistently ranks among the top attractive offshore location by various research firms, such as the A.T. Kearney, Gartner, and META.

Philippines is now the outsourcing location of some Dutch companies like Getronics, ING Group, KLM Royal Dutch Airlines, and ABN-AMRO.

British companies like Standard Chartered Bank, Sykes, and Ambergis Solutions have established outsourcing operations in the Philippines.

For information on the Philippine trade mission to Europe, please contact CITEM, IT Services and Electronics Division at (02) 8325044 and 8312201 locals 212, 251, and 278, or email
itservices@citem.com.ph.

Monday, July 17, 2006

IFEX Philippines 2006 generates 79.9 million sales

IFEX Philippines, now on its third year in standing as the most significant country-sponsored event that showcases the best offerings of the local food industry, has achieved USD 79.9 million in export earnings, with a 316 per cent increase from last year’s sale of USD 31.8 million.

The country’s 283 food exporters, manufacturers, and consolidators hit the mark in accompanying 1,332 buyers—1,118 of which are from various local regions, while 214 are from different countries. These key foreign buyers came from Australia, Canada, China, Europe, Japan, Korea, Malaysia, Singapore, Thailand, Taiwan, and USA.

Some of these leading foreign buyers/companies include Hirasho Shoten, Health Co. Ltd., Heuschen Schrouff, Manning Impex, Five Rings, and Wilby Commercial. They were also part of the IFEX Very Important Buyers

“We are very pleased to say that the significant growth in the number of visiting buyers and of course, in the earnings of IFEX proved that our country remains a reliable source and hub for Asian ethnic foods, Filipino cuisine, and fresh and processed products,” said Trade Assistant Secretary Fe-Agoncillo-Reyes, also head of the Center for International Trade Expositions and Missions (CITEM), the export promotions agency of the Department of Trade and Industry.

IFEX 2006’ best selling products were fresh and frozen fish; sardines; frozen fruits and vegetables like saluyot, ampalaya, and banana; octopus; meat preparations like ham and sausage; processed fruits like banana chips and dried fruit cocktail; fruit and vegetable juice; coffee and cocoa; cookies and crackers; and cereal preparations such as cake and polvoron.

This year’s Partner Region Program (PRP) featured the fiery dishes and flavorful packaged delicacies of the Bicol Peninsula. Twenty-six companies from the said region specifically highlighted their well-known pili, laing, pinangat, and crab meat products. Technical seminars regarding the ISO 22000 Food Safety Management Program, Supplier’s Requirements, and Business Opportunities for OFWs were also offered to the participants to help them update with the latest trends and developments on food quality systems, empowering them to be more competitive in the business arena.

“The seminars were very encouraging,” an SME Marketing Manager said. “We now learned additional modern strategies in enhancing our manufacturing skills, kaya I’m sure na we will attract more buyers on next year’s IFEX.”

Exhibitors were also given 30 minutes to conduct product/cooking demos in the Retailers Zone Special Events area. Organized with COOK Magazine, the cooking exhibitions did not only set the place for sharing the latest product innovations, but also for product sampling and cooking contests.

Competitions like Best Booth and Trendy Packaging were also held to motivate food manufacturers to further improve their standards of presentation as well as to give credit to those who have invested their time, efforts, and resource in developing a product for the export market.

KSK Boy Bawang triumphed over the 200 candidates for the Best Booth category. Meanwhile, five out of 21 nominees were declared as the Trendy Award winners: Antonio Pueo Incorporada, FD Gonzales Food Product, Gem Food International Inc., Nutri-Prime Products Inc., and Sorsogon Food Enterprises.

“So far, all of the objectives of IFEX including the upgrading of the Philippines’ image as a destination for modern food ideas in Asia and the global promotion of SME products were sufficiently accomplished. We hope that this victory continues on the succeeding years of IFEX,” added Agoncillo-Reyes. The annual food fair was held on May 12-14 at the World Trade Center Manila and was organized by CITEM.




Wednesday, July 12, 2006

Staying ahead in software outsourcing

Philippine software industry eyes new targets in global outsourcing

Dubbed as the best kept secret of global brands in software outsourcing, the Philippines eyes new targets to further fuel the growth of the country’s exports of software products and services.

“The industry is projecting an increase in software exports of 33% or 272 million dollars for 2006,” said Mon Villar, executive director of the Philippine Software Industry Association (PSIA). “Aside from growing the domestic market, we hope to increase our collaboration with foreign companies, either through cross-selling, resource pooling or sub-contracting.” Industry reports said that software exports rose by 20% from 2004 to 2005, equivalent to 204 million dollars.

Still, with competition from neighboring countries, Villar said that the industry plans to grow the domestic market, increase software exports, and focus on quality and domain expertise.

To date, PSIA members generate over a billion pesos in sales from the local market. There are about 17 software companies in the countries that are certified or about to be certified in CMM or CMMI. Likewise, 41 companies have been ISO 9000 and ISO 17799 certified already.

“In today’s global market,” Villar added, “there is a premium on business process knowledge as very few providers have it. This leads to our sustainable advantage over competitor countries like China and Vietnam. We want to focus on our process and technical expertise in finance, HR, gaming, and manufacturing.”

This June 28-30, the Philippines will be bringing several of its leading software development outsourcing players in the 15th Software Development Expo and Conference in Tokyo, Japan. These companies are ADTX Systems, Alliance Software, Astra Philippines Inc., Berthaphil Business Park, N Pax Cebu Corporation, Pointwest Technologies, and Tsukiden Software Philippines Inc. The Philippine participation to Sodec is organized by the Center for International Trade Expositions and Missions (CITEM), the export promotion arm of the Department of Trade and Industry.

“SODEC is an opportunity to highlight our capabilities beyond software development. We hope to strengthen the Philippine position as a destination of choice not just for software outsourcing but also for business processes and other value-added services like online ticketing, medical imaging and mobile applications,” said Trade Assistant Secretary Fe Agoncillo-Reyes, also head of CITEM.

A software powerhouse, the Philippines is home to multinational brands and players in the global software industry, Accenture, Hewlett Packard, IBM Solutions, Sun Microsystems, Headstrong, RCG-IT, and Software Ventures International. Some of the leading Japanese companies who are in the Philippines are Canon, Fujitsu, and WeServ to name a few. In a survey of overseas transactions in July 2004, the Philippines was one of the top ten offshore destinations preferred by Japanese software companies.

The Fly High Program

The software industry is a vital part of the Philippine economy. To further boost the growth of this sector, the PSIA together with the Commission on Information and Communications Technology (CICT) have mapped out a five-year plan for the sector known as, FLY HIGH: Philippine Software 2010.

To date, there are over 28, 000 software developers in the Philippines. “The software industry has exported a total 156 million dollars (8.1 billion pesos) in professional software services to the foreign market in 2005,” said Villar.

Of this figure, 23 million dollars is attributed to the local market. The industry, added Villar, had an estimated 50% growth rate in terms of manpower from 2004 to 2005. PSIA projects this figure to grow by 33% in 2006, with support from the government. Under President Arroyo’s “Training for Work Coupon” program, the software industry hopes to augment its current workforce through training of near-hires through accredited centers using PSIA-approved curriculum. “We are keen on recruiting talent and boost more opportunities for our creative software personnel.”

Prospects

Japan represents a large potential market for software outsourcing. Japan’s information services industry sales in 2003 amounted to 129 billion dollars, based on statistics obtained from the Japan Information Service Industry Association (JISA).

Statistics also showed that outsourced software development work in Japan rose to 445 million dollars in 2003 and could reach 3.5-5.8 billion dollars. “The industry intends to form industry clusters which will focus on niche markets, in which the Philippines is well suited to compete in the global market. These may include mobile/wireless applications, animation and gaming software or even geographical markets like Japan,” said Villar.

Last year’s Philippine participation to SODEC generated 8 million dollars in sales. For information about the Philippine participation to SODEC, please contact please call CITEM’s IT Services and Electronics Division at telephone nos. 832 5044; 831 2201-09 local 212, 251, or 278 or e-mail itservices@citem.com.ph

Thursday, July 06, 2006

Philippine IC design companies clinch US$2 million worth of deals with Taiwan

The Philippines 1st participation to Semitech Taipei, a platform that promotes focused interaction among different Taiwan semiconductor sectors, led to about US$2 million deal, according to the Center for International Trade Expositions and Missions (CITEM).

“Though the Philippines has very young IC design industry, we were able to capture buyers for our back-end IC design and product design service” said Trade Assistant Secretary and CITEM Executive Director Fe Agoncillo-Reyes.

Blue Chip Designs, Inc., Circuit Solutions, EAZIX, eDesign Technologies, Inc., Fastech Synergy, Inc., and Symphony Consulting, were the Philippine representatives for the event.

“Philippines impressed the Taiwan semiconductor market with the exhibitors’ product quality and functionality, as well as the adaptability to multi-assessment and functional application requirements,” added Agoncillo-Reyes.

EAZIX’ ZigBee was one of the products that captured the attention of Taiwanese buyers. Zigbee is an emerging wireless platform using a robust technology compatible with existing technologies using the same band. The technology targets manufacturers for remote switching, wireless sensor networks, remote sensing/telemetry, wireless remote control, personal area networks, home and building automation, and industrial controls.

Philippine companies also met with the 150 members of the Taiwan Semiconductor Industry Association (TSIA). “We look forward to the business mission of fabless Taiwan companies to the Philippines so they will learn more about our capabilities in IC design services,” said Agoncillo-Reyes.

According to the Semiconductor Industry Association, worldwide sales of semiconductors are expected to reach US$205 billion in 2006, with compound annual growth rate of 9.8 percent through 2008, amounting to US$309 billion.

Taiwan remains the global leader in foundry and captures the second-largest IC design industry. Semico Research Corporation also reported that Taiwan outperforms the worldwide standard with a 6.7% annual growth rate with values reaching US$35 billion in 2005.




Philippines eyes niche in Middle East construction market

Filipino manufacturers and contractors are urged to explore niche in the $1 trillion Gulf construction market, according to the Department of Trade and Industry through its export promotion arm, Center for International Trade Expositions and Missions (CITEM).

The Philippines will participate for the first time in The Big 5 in Dubai, the most comprehensive annual event for contractors, specifiers, architects, engineers and buyers from the Gulf countries. It featured 2,000 companies from 50 countries, and attracted over 34,000 key buyers and decision-makers last year.

“Now that the construction materials sector is ready to be promoted independently, The Big 5 is an opportunity for our local companies to explore niche in the Middle East market,” said Trade and Industry Assistant Secretary and CITEM Executive Director, Fe Agoncillo-Reyes.

After The Big 5 in Dubai, the delegation will proceed to Bahrain for pre-arranged meetings with general contractors, property developers and distributors for exploratory talks and arrangements for possible project/contract. “A business matching meet is our value-added assistance to our exporters, which is proven to be a very effective vehicle to emphasize our competitive advantage,” added Reyes.

According to the new figures from MEED projects, a leading business opportunity tracker in the Middle East, the UAE remains the Gulf’s largest construction market. There were almost $300 billion worth of active projects in the federation, most in Abu Dhabi and Dubai. Projects in Saudi Arabia has doubled to more than $200 billion in the last 12 months, while Kuwait’s project market, has grown to $211 billion. The Gulf construction boom is seen to last for at least five more years. The Big 5 in Dubai is expected to bring opportunities to Philippine manufacturers and suppliers of building and construction systems, components, materials, fittings, and services.

The UAE is also seen to spend over US$7 billion to develop its water resources, through building desalination plants throughout the Emirates, making it an opportunity for water technology materials, treatment, systems, and technology manufacturers.

There are also business prospects for air conditioning services and systems, cleaning and maintenance, environmental, and refrigeration systems, as well as opportunity for custom built glass and metal fixtures and fittings. Interested companies may contact the Industrial Goods and Services Division of CITEM at 8311268, 8312201 locals 257 and 227, or email industrial@citem.com.ph.





Modern Indigenous

Tinalak cloth is one of the Tiboli tribe’s traditional properties exchanged during marriages and used as covering during births. Now, this distinct cloth is being shared outside the tribe and becoming the indigenous communities’ rich means and sustenance for livelihood.

Many businesses nowadays tap the exclusive services of Tiboli women of Lake Sebu, South Cotobato for tinalak-weaving, for no machinery can equal the dexterity, artistry, and patience of the Tibolis.

To further promote our SMEs from the countryside, as well as uplift the lives of indigenous communities, the Center for International Trade Expositions and Missions (CITEM) proudly included enterprises that support products and services of minorities in several trade exhibits, such as the National Trade Fair, which included the women’s cooperative T’boli Trade and Crafts, and the Tagum Agricultural Development Co., Inc. (TADECO) for the Manila F.A.M.E.

Living Room Culture

In the April edition of the Manila F.A.M.E., tinalak caught the attention of both local and foreign buyers. This intricate cloth that usually takes months to accomplish were beautifully rendered as sofa, center table, footstool, throw pillows, votive and vase covers by the Tagum Agricultural Development Co., Inc. TADECO products were first noticed at the National Trade Fair, and now one of the well-sought exporters of tinalak-based home furniture and accents.

Simple lines, clean details, and the character of materials used in TADECO’s living room collection further inspire the emerging trend of modern indigenous (MODI) living. A boxy sofa turned so comforting with the right softness of its off-white cushion, paired with cuddly throw pillows accentuated with wood beads in ethnic patterns designed by Cesar Gaupo. You can also choose from deep reddish-brown, black, and silvery-gray throw pillows accentuated with coco and glass beads in modern yet simple patterns. Buyers were also awed with footstools shaped like bongo drums—all these are made of tinalak.

Abaca-based home accents also charmed Manila F.A.M.E. visitors. Tinalak that were carefully stripped then twisted, bound and laced with copper wire were used as special vase holder or design for photo albums. Sinamay, that can be dyed with various colors were pleated and beaded as cover for tea light candleholders. Candlesticks measuring 3 to 4 ft. made of deep-brown abaca raw fiber with copper wire also made a statement during the fair.

Beyond Living

For many, it is such a great pride to fashion tinalak as part of clothing or home. But this growing interest for this culture-rich cloth is an enormous help to the lives of the minorities - one, by giving them livelihood, second, by aiding them in promoting their cultural identity, and lastly, by making their beautiful culture live forever.



Philippine participation in Singapore expo to boost wireless industry

The Philippines will bring its major players in wireless services to CommunicAsia in Singapore, an exhibition for the information and communications technology market, in a bid to boost the local wireless industry, according to the Center for International Trade Expositions and Missions (CITEM), the trade promotions body of the Department of Trade and Industry.

“The Philippine presence in CommunicAsia aims to promote the Philippine brand of ICT services to Asia and the world, as well as provide a venue for our local ICT companies to expand markets,” said Trade and Industry Secretary Peter B. Favila.

This year is the third time the Philippines is joining the annual expo in Singapore. Scheduled on 20-23 June 2006, CommunicAsia is attended by over 35, 000 trade visitors from Europe, United States, Canada, Australia, China, and the Asia Pacific.

As a strategic decision, local companies join CommunicAsia to highlight our excellent communications infrastructure, highly skilled workforce, innovative and creative content, and proactive government support, according to Trade Assistant Secretary Fe Agoncillo-Reyes.

For 2006, seven ICT companies from the Philippines will join CommunicAsia: Chikka Asia, D3Systems, Inc., Globe Telecom, Innove Communications, Load.com.ph, Mannasoft Technologies, PLDT and Smart.

To date, the Philippines is a recognized leader in mobile technology applications. Several firms recognized internationally for their world-class wireless capabilities were: Wolfpac Communications Inc. (WAMMP product); Smart Money (“Most Innovative GSM Wireless Service Customers,” 3GSM World Congress 2002); Globe G-Cash (“Best Mobile Messaging Service,” GSM Association Awards); Mannasoft (e-Services Philippines Best in Mobile/Wireless); Load.com.ph (Best Website); and PLDT (Best Emerging Market Carrier, Telecom Asia). Meanwhile, Chikka is the first mobile application developer in the Philippines to receive CMMI Level 5 ranking under the Carnegie Mellon’s Software Engineering Institute.

Aside from expanding their markets, the CommunicAsia participation is also an opportunity for local firms to scale up their operations, meet potential business partners, and enhance the country’s position as a hub for global infocomm business. CommunicAsia is being held in conjunction with Enterprise IT 2006, a platform for business and IT solutions and Broadcast Asia.

For information about the Philippine participation to CommunicAsia, please contact itservices@citem.com.ph or call 831-2201 loc 212, 251 and 301. Visit the website at www.e-servicesphils.com/communicasia2006