The apex of the stock market occurred on February 19, 2020, before the COVID-19 pandemic outbreak set off a steep decline in share values. Since then, the world has evolved, impacting how we live, our economies, and how well our businesses are doing. This ongoing journey is mirrored in the ups and downs of share prices. The fundamental dynamics have quickened, propelling some businesses forward at historical rates and intensifying obstacles for other companies.
Information technology outsourcing is the transfer of ownership of some or all information technology processes or operations to a service provider. When a business hires people from outside its organization to handle its information technology (IT) activities, this is known as information technology outsourcing (ITO).
This subcategory of outsourcing includes a range of IT services, including software development and programming, as well as infrastructure, maintenance, and support. A business that outsources its IT operations might collaborate with other companies that employ the required subject-matter experts or people with the specialized skills they need.
ITO connects businesses with emerging nations to reduce labor costs while maintaining technological capabilities when used as a kind of offshore.
U.S. government officials in the late 1940s The State Department launched a drive to establish an International Trade Organization (ITO). The IMF and the World Bank, founded at the Bretton Woods Conference in 1944 to address international financial flows, would be supplemented by this new organization, overseeing international negotiations on trade liberalization, foreign direct investment, cartels, and commodity trade liberalization agreements. A comprehensive system for controlling global economic issues would be made up of the IMF, World Bank, and ITO. In the United States and other countries, the planned ITO proved quite divisive, and lawmakers had to decide whether to support this outcome of three years of arduous international discussions.
Many businesses across industries are now facing a “survival of the fittest” scenario due to the relentless speed of digital transformation, where “fittest” refers to having a solid IT foundation to support all facets of the organization. This has led to an increase in demand for IT specialists, such as development teams or cybersecurity engineers, and as a result, a significant skills gap has emerged globally.
But because we now live in a time when a global network that connects individuals from all over the world has emerged, many businesses have been able to access talent that not only filled in the gaps in their IT activities but also helped them get through one of the most trying times in human history.
IT outsourcing: What is it?
A corporation may contract with a third-party supplier to manage all or a portion of its IT operations, including network engineering, software development, infrastructure support, and data security. This is known as IT outsourcing.
The service provider aids a business in the recruitment, upkeep, and maintaining IT personnel or even creating an entire IT department.
Onshore outsourcing, which involves a provider within the country, can be expensive; nearshore outsourcing, which consists in outsourcing to neighboring countries, typically within the region; and offshore outsourcing, which many people believe to be the most cost-effective outsourcing model because providers source talent from nations with lower costs of living.
Top 10 Philippines-based IT outsourcing firms
STAFFVIRTUAL – STAFFVIRTUAL provides outsourcing and human resources management solutions that connect companies with affordable staff in the Philippines at a massive scale. STAFFVIRTUAL performs Customer Support, Back Office, IT, Content Marketing, Legal, and Recruitment services for global brands, startups, and SMBs.
Convergys Philippines Services Corp. (Php19.830 billion) – Convergys Corporation is based in Cincinnati, Ohio, selling large corporations’ customer and information management products.
24/7 Customer Philippines Inc. (Php13.061 billion) – The company’s customer engagement platform assists several hundred million visitors across all channels and engages in 1.5 billion automated conversations annually.
JPMorgan Chase Bank N.A.-Philippine Global Service Center (Php11.789 billion) – JPMorgan Chase & Co. is a leading global financial services firm and one of the largest banking institutions in the United States, with operations worldwide.
Telephilippines Inc. (Php8.722 billion) – DBA “Teleperformance Philippines” is a leading provider of outsourced customer experience management services in the country. The company began operations in the Philippines in 1996.
Sutherland Global Services Philippines Inc. (Php8.080 billion) -a top-tier innovator and supplier of business solutions and services
Hewlett-Packard AP (Hong Kong) Ltd. (Php7.081 billion) – The Hewlett-Packard Company was an American multinational information technology company headquartered in Palo Alto, California.
Stream International Global Services Philippines Inc. (Php6.924 billion) – Stream Global Services (formerly known as Global BPO Services Corp.) was a BPO company acquired by Convergys thru a definitive merger, with more than 37,000 employees in 22 countries in 50 contact centers; it managed more than 100 million voice, e-mail, and chat contacts a year.
Teletech Offshore Investments B.V. (Php6.590 billion) – TeleTech Holdings, Inc. is a global business process outsourcing company headquartered in Englewood, Colorado.
IBM Daksh Business Process Services Philippines Inc. (Php6.307 billion) – International Business Machines Corporation is an American multinational technology and consulting corporation with corporate headquarters in Armonk, New York.
Leading players in the Information Technology Outsourcing (IPO) Market include:
- HCL Technologies
- Fujitsu Ltd
- Larsen & Toubro Ltd
- Tech Mahindra Ltd
- NTT Data
10 Companies That Will Be In Demand After the Pandemic
Home exercise. Due to the pandemic’s widespread closure of gyms in the U.S., various businesses that offer home-based related exercise items and online programs have gained popularity. But given that these services and programs are already ingrained in people’s daily lives, it’s likely that they will endure.
Cybersecurity. IT has been difficult for businesses because many more individuals have worked from home throughout the pandemic. Corporations have invested in cybersecurity solutions to protect their computers, phones, and data when utilized nationwide instead of just in corporate headquarters. The necessity for cybersecurity will persist even though some businesses have advised employees to continue working remotely after the outbreak.
E-commerce. More people than ever are shopping online because many physical stores still can’t operate at total capacity due to the pandemic, and some have permanently closed due to COVID-19. Now, even if customers return to these stores after the epidemic, online purchasing will still be convenient, and more customers will use it.
Franchise for fast food. Some franchises are thriving, even though not all have maintained normal demand levels during the pandemic. In particular, fast food chains have adjusted to shifting consumer behavior, which includes more people purchasing in bulk, a preference for “contactless” pickup, in-app digital ordering, and new traffic peak times. Fast-food businesses will benefit from new investments in automation and technology to weather the crisis and remain popular after the pandemic.
Food delivery. During the epidemic, fewer people went out to eat, and more ate at home. Therefore there has also been an increase in the number of people getting food delivered. While food delivery firms like Grab and FoodPanda have had trouble making a profit, the pandemic has increased demand for their services. For instance, FoodPanda said that the need for deliveries in the second quarter of 2020 more than doubled. Before the outbreak, several researchers predicted that the market for internet meal delivery would reach P200 billion by 2025. There is reason to anticipate that meal delivery will catch on now that the pandemic has made more customers aware of its ease.
Gaming. Consumers turned to games to pass the time in 2020 as more individuals were trapped indoors due to the pandemic. Sales increased whether people played on consoles, computers, or mobile devices. Many gamers who participated in the pandemic will keep playing long after it ends.
House renovation. Home sales have increased due to Americans looking for more cozy homes to survive COVID-19, improvement businesses have expanded due to the increase in individuals living in newly purchased homes and the number of people confined to their homes, and upgrades will continue for some time as individuals invest in new things, according to companies like Wilcon Home Depot, Ace Hardware, and Builders.
The Philippines is becoming more popular for outsourcing services to foreign companies, including computer services and customer care. The fact that the Philippine IT sector is still expanding despite the nation’s current economic and legal issues is encouraging.
While India continues to dominate the ITO, the Philippines is quickly overtaking it as a viable option. According to data made public by the Department of Science and Technology (DOST), the Philippines boasts the third-largest pool of IT talent in the Asia Pacific. Its ITO expenses are among the lowest in the world.
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