Tuesday, July 24, 2007

RP among top 10 destination for outsourcing operations

MANILA, Philippines -- The Philippines has been cited by Frost and Sullivan as among the top 10 destination countries for shared services outsourcing alongside India and Malaysia.

In its most recent global study on Shared Services and Outsourcing (SSO), Frost and Sullivan estimates the global SSO market to be worth $930 billion and predicted that number to grow 15 percent by 2009. Rounding up the top 10 countries are China, Ireland, Singapore, Mexico, Czech Republic, Poland and Canada.

Shared services have become a sub-segment of business process outsourcing or BPO wherein a global company sets up outsourcing operations in one country to take advantage of local skills and other cost advantages.

In the Philippines, several companies like HSBC,CitiGroup, Dell Computer and Safeway have set upshared services centers. Others like IBM and Sykes have moved their SSO operations from India to the Philippines, according to Frost and Sullivan.

The Philippines already specializes in back-office operations for IT and IT-related services, making it an attractive destination for shared services. According to Frost and Sullivan’s estimates, the Philippine back-office industry generated revenues of $180 million in 2005.
India has always figured prominently as a top destination although the study reveals that factors like high attrition rates, rising wages and poor infrastructure are forcing investors to look intoother countries like the Philippines and even China.

Malaysia was also cited as an ideal shared services hub because of its excellent infrastructure and low attrition rates. Dell, IBM and India's Satyam have invested in delivery centers in Malaysia.

In a previous interview, Gerry Clark, regional headfor BPI consulting firm TPI, noted that Malaysia'sgovernment has been doing well in "incentivizing" investors. "Malaysia, however, is attracting end-users and not (third-party) service providers like those in thePhilippines," Clark said.

Thursday, July 05, 2007

Philippines to bring11 design-driven firms at HK Fashion Week

Filipino fashion catwalks into the spotlight as the Department of Trade and Industry brings the country’s top local fashion accessories designers and jewelers in the upcoming Hong Kong Fashion Week 2007, 10–13 of July at the Hong Kong Convention and Exhibition Centre.

Eleven local design companies will feature the Philippines’ finest in costume jewelry (ABS Export International, Ibarra Designs LTD., Inc., Selections Export International, and Unijel Int’l Trading, Inc.); sterling silver, fine and high-fashion jewelry (A. Suarez Sterling Corporation, Michelis Incorporated, Sanara Inc., and Sterling Gifts, Inc.); and fashion jewelry, accessories and leather goods (Fina Ornamentalia Crafts, La Cora Creatives, Inc., and Talimaya Gifts — Fashion Accessories Corp.).

“Hong Kong has been the center for fashion and creative design in the Asian region for years. As an aspiring fashion destination, the Philippines should learn from their Fashion Week, update ourselves with the current trends and get a feel of the pulse of the industry,” said Trade Assistant Secretary Fe Agoncillo-Reyes, executive director of the Center for International Trade Expositions and Missions (CITEM), the export promotion arm of the DTI.

Hong Kong’s fashion exports industry is steadily growing posting to HK$75.9 billion as of June 2007. Its three major markets all have positive growth rates: the US (11%), the UK (13%) and Germany (21%).

Annually, the fair attracts buyers from over 25 countries including target markets from Asia, Europe, Australia and North America, making it a convergent and conducive venue for business transactions and trade.

The trade fair also demonstrates the country’s ability to offer one-stop service, highlighting Hong Kong’s production and distribution capabilities and, more importantly, their creativity and marketing skills.

“We’re bringing the Philippines’ finest from the fashion accessories and jewelry industry because it is an excellent opportunity to showcase the Filipino brand of quality and creativity and meet our counterparts from other countries who are potential trade partners,” Agoncillo–Reyes added.

This venture to Hong Kong is in line with the DTI’s ongoing efforts to penetrate the vast trade and market opportunities presented by Hong Kong’s burgeoning fashion industry. Last March, the DTI brought six local jewelers to the Hong Kong Jewellery Show.