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Industry News: Is Philippines Losing Its Competitive Edge As A BPO Hub? Bank And Wealth Managers Outsources To Save Money, Artificial Intelligence Might Be The Reason For The Lost Jobs of 1.2 M Filipino Workers

Cebu Off The Top 10

Just this June, Cebu was still in the top 10 of the list of cities where BPO companies like doing their business in. However, after less than a month, it has slipped in the Global World of Business Process Outsourcing (BPO) list.

It is now in no. 12 in the Tholons Services Globalization Index for 2017. Moreover, Manila is also down two spots, from two to number four. Meanwhile, India has the top three cities on the list – Bangalore, Mumbai and New Delhi. Other cities include Dublin, Sao Paolo, Buenos Aires, Krakow.

The reasons as to why it has dropped off are because of the lack of infrastructure. Also, the internet speed of the country is one of the slowest in the world. Not only are those but traffic becoming worse. It is such a shame that the growing business will stop just because of solvable problems.


Bank and Wealth Managers Outsources Back-Office Functions

Times are really hard because even banks and wealth managers are outsourcing back-office support to cut costs and save money. According to SEI Wealth Platform, the management solutions provider, there are more than 15 the UK and other European countries that are contacting him for their services.

The demands are getting higher and higher and the mid-tier wealth managers and companies cannot handle it anymore. They have opted to outsource most of their back-office jobs to BPO companies. Ever since the new EU law has been passed and its goal to protect investors and create more transparency, it has made the wealth managers decide to outsource.

“Our pipeline in our private bank and wealth management segment is richer this year than it has been historical,” Kevin Russell, proposition director at SEI has said.


AI A Threat to Almost 50% of Jobs – The Trade Department

The trade department in the Philippines has announced that hundreds of thousands of jobs might be replaced by artificial intelligence or robots, specifically in the booming industry of the BPO.

Almost 1.2 million Filipinos might lose their jobs if their estimation and prediction are correct. The DTI has stated that “AI has presented itself more than just as a new technology, but as a threat to the current employees servicing the service export industry and the BPO, including the contact centers.”

The back-office support and the IT industry should be strengthened so the country can adjust to the changes that are happening in the world of technology, Trade Secretary Ramon Lopez said. Computer science, engineering, data science and AI application design, among others are the curriculum that should be focused on, Lopez added.