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BreakThroughs Break Throughs JULY—SEPTEMBER 2012 • VOL. 6, NO. 2 • 24 PAGES • FREE

4 IOS TO FOCUS ON IT-BPO’S NEXT FRONTIER THE PHILIPPINE BUSINESS PROCESS OUTSOURCING NEWSLETTER

W W W . B P A P. O R G

th

Summit to address global issues in IT-BPO

CATHLEA ROSAS

HAVE we entered the Golden Age of Outsourcing? The Fourth Annual International Outsourcing Summit (IOS) aims to answer this question. Organized by the Business Processing Association of the Philippines (BPAP), this year’s summit will take place October 7 to 9, 2012 at the Makati Shangri-La, and will facilitate high-level discussions on relevant issues and developments that will shape the industry’s next frontier. “We’re very excited about this year’s summit. Last year, we had an impressive record attendance and participation by overseas delegates with over 140 organizations represented by 400 delegates, speakers, and panelists from the global IT-BPO industry,” said Benedict Hernandez, BPAP

president and CEO. “This year, we’re targeting 500 delegates from around the world to provide a platform for addressing strategic issues including opportunities and challenges for growth, emerging markets, industry developments, and service expansion.” Delegations from top and emerging outsourcing markets and investment destinations have confirmed their participation, including Australia, Bangladesh, Brazil, Colombia, India, Japan, Kenya, Malaysia, Philippines, Singapore, United Kingdom, United States, and Vietnam.

Threats and challenges in global IT-BPO The summit will open with a panel discussion on the threats and challenges in global outsourcing. The first plenary session “Should

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President Benigno S. Aquino III announces an allocation of P500 million for TESDA’s Industry Training for Work Scholarship Program in the presence of TESDA Director General, Sec. Joel Villanueva at last year’s IOS

New Office Reflects Phenomenal IT-BPO Industry Growth

THE migration of the Business Processing Association of the Philippines (BPAP) to its new headquarters at the heart of one of the fastest-growing business districts in the country is reflective of the industry’s meteoric rise in the past few years. BPAP president and CEO Benedict Hernandez says, “We’re obviously very excited about the new office. It’s

bigger and better than our old office. It’s actually mirroring the success story and continued growth of the IT-BPO industry.” With DTSI as its main partner and sponsor, the new office was designed by Steven Leach, one of the leading design firms in the country. “The total floor area of 421.37 sqm is about 40 percent bigger than the current

WHAT’S INSIDE

BPAP moved to its new office at the C2 Building, Bonifacio High Street Central, in September

ACPI attends content markets in France and South Korea

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office,” reports Nette Roselo, BPAP administrator and project manager for the move. “Not only are there more rooms for BPAP staff, there are also more meeting rooms for its members.” “The response of our members to support the move was phenomenal,” says Raymond Lacdao, BPAP executive director for industry affairs. “All told, we received over ₱11 million to build the new office and furnish it.” DTSI completed construction in 40 days. Ronaldo Arambulo, BPAP executive director for finance, says, “The new office has a very modern design and feel and includes additional meeting rooms and a new library. The space is compact but cozy. Design considerations primarily focused on customizing the look, feel, and flow to BPAP’s needs. A key consideration was the flow of people in and out of the office; many visitors will get their first impression of the IT-BPO industry at this office.” The new office features a reception area, dedicated library, an expandable pair of showrooms, a presentation

BPAP Holds Elections Next Year THE Business Processing Association of the Philippines (BPAP) will hold the election for members of the BPAP Board of Trustees on February 2013. Eight seats are up for election; this includes five trustees representing industry members and three trustees representing supportindustry members. BPAP president and CEO Benedict Hernandez says, “We have been blessed with a very active and very energized board that has guided BPAP through the years, and we look forward and are excited to hold these elections. We anticipate that the newly elected board will also be as energized, if not more so, to help us carry the industry forward.” Raymond Lacdao, executive director for industry affairs of the BPAP says, “Members anticipate this event, so we expect a big turnout.” Taking the lead in this muchawaited event is BPAP’s legal counsel Nisce Mamuric Guinto Rivera & Alcantara (NMGRA) Law Offices.

As legal counsel, the firm has provided BPAP with various legal services in the nature of legal advice and opinion as well as assistance in some of the organization’s major undertakings including the TESDA Industry Training for Work Scholarship Program, Global Competitiveness Assessment Tool, Service Management Program, and Advanced English Pre-employment Training program. Suffice it to say, the role of NMGRA in the upcoming elections will be significant. Senior partner Atty. Bob Guinto explains, “On the documentation side, our role includes assistance in the preparation of the election schedule and the election rules to be used by the BPAP Election Committee.” The firm is also tasked to prepare nomination forms, acceptance of nomination and undertaking forms, ballots, and notice of the Members’ Meeting and Proxies, among others. “Of course, during election day,

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SPi Global wins European CSR Award p. 18

EXECUTIVE PROFILE

Ed Moran HIGHLIGHTS:

SunPower Exec Basks in Bright Future

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2 BreakThroughs July—September 2012 –Vol. 6 No. 2

BPAP Stories

Business Processing Association PHILIPPINES / www.bpap.org

4TH IOS TO FOCUS ON IT-BPO’S NEXT FRONTIER ... protectionism be a genuine concern for the global service delivery business?” will be led by panelists Som Mittal, president of NASSCOM; Sergio Pessoa, director of Global Market Development of Brazilian Association of Information Technology and Communication Companies; Aparup Sengupta, managing director and global CEO of Aegis Limited; and Hoang Nam Tien, chairman of FPT. Alfredo Ayala, chairman of BPAP and president and CEO of LiveIt Investments Ltd. will moderate the Chairman’s Panel.

Strategizing for high growth A public-private panel on the industry’s full growth potential as stated in the IT-BPO Road Map 2011– 2016 will be the highlight of another plenary session entitled “Strategizing for High Growth: Moving Up the Value Chain.” Benedict Hernandez, president and CEO of BPAP, will moderate the session that will discuss the industry’s initiatives to push collaboration with the government to support highgrowth areas in the industry. Panelists include H. Karthik, vice president of Everest Group; Paul Mitchell, head of Asia Pacific Markets for Advisory Services at Ernst & Young; Jojo Uligan, corporate secretary and executive director, Contact Center Association of the Philippines; JL Botor, president, Healthcare Information Management Outsourcing Association of the Philippines; Nora Terrado, president, Philippine Software Industry Association; and Vikas Bhalla, executive vice president and head of outsourcing at EXL Service.

Diversification strategy

In the President’s Panel entitled “How do IT-BPO companies wean themselves from dependence on the US market?” the spotlight will be on strategies to expand IT-BPO firms’ presence in different markets around the globe. The session aims to promote strategic responses to further accelerate the growth of the outsourcing industry. Moderating the session is Oscar Sañez, vice president–International of San Miguel Purefoods Co. Panelists include Rajiv Ahuja, president of Aegis ASEAN and ANZ; Mark Bretton, vice president and head of BPO–UK and Europe at Tata Consultancy Services; Tom Grealy, director of Telstra Regional Operating HQ; Vipul Khanna, global delivery head of Cognizant BPO; Asheesh Mehra, head for Asia Pacific, Japan, and the Middle East at Infosys BPO; and Tim Hardin, executive vice president for global operations and business development–CRM at SPi Global.

Revisiting the talent supply scorecard A strategic HR panel will focus on the government’s role in addressing the talent supply issue and improving quality of education. It will also provide insights on the visibility initiatives of the public sector to enhance perception on IT-BPO and position the industry as an attractive career opportunity to achieve the estimated 1.3 million industry jobs by 2016. The panel discussion, to be moderated by BPAP executive director for talent development Penny Bongato, will feature panelists Shridhar Aiyer,

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vice president for human resource, Sutherland Global Services; Carlo Jose, president and head of GSC operations– Philippines at HSBC; Sam White, senior director for HR at ADP Philippines; and Sriram Rajagopal, vice president for global HR at Cognizant.

Hyperspecialization: The future of IT-BPO? The future of the industry will be the highlight of the second day of the Summit, focusing on new models of work process and delivery, particularly “hyperspecialized” people, sites, and centers. Dubbed “Niches within Niches: Is hyperspecialization the future of ITBPO?” this year’s analyst panel will feature experts in the field such as Nikhil Rajpal, partner for advisory services–technology, communication and entertainment at Ernst & Young; Mahesh Venkataraman, director of PwC Singapore; Jean-Paul Binot, director for finance transformation at Deloitte Consulting Pte Ltd.; Gaurav Gupta, partner at ATKearney; H. Karthik, vice president of Everest Group; and James Donovan, president and group chief executive officer of ADEC Group. Moderating the discussion is Gigi Virata, BPAP senior executive director. For inquiries, contact Rona Castillo at +632 757-3500 local 311, +63917-8813706, and iosph@ teamasia.com. You may also visit http:// internationaloutsourcingsummit. wordpress.com. Check out its Facebook page at facebook.com/ internationaloutsourcingsummit or follow twitter.com/IOSPH on Twitter.

BPAP Holds Elections Next Year our work will include the actual conduct of the voting (including resolution of all vote eligibility issues), ballot appreciation and counting of votes, and finally, the announcement of the election results,” says Atty. Guinto. Apart from the election of the BPAP Board of Trustees, a referendum of proposed amendments to the association’s articles of incorporation and by-laws will be held concurrently. These include proposals to change

the name of the association from “Business Processing Association of the Philippines, Inc.” to “IT & Business Process Association of the Philippines,” change the principal office address, and create an Executive Committee to assist the BPAP Board of Trustees discharge certain delegated functions. The change of name is but timely. Atty. Guinto says it emphasizes that “BPAP does not just represent the business process outsourcing (BPO)

industry in the country, but also the fastgrowing IT and IT-related sector.” Hernandez says, “In one of our general membership meetings this year, we got into a very high approval rate. Most of those who voted agreed to change to iBPAP. We believe that it’s the right thing to do to represent the broader IT-BPO landscape. Meanwhile, Atty. Guinto says, “The proposal to create the Executive Committee is a practical necessity so

that it will no longer be necessary for the full Board of Trustees to meet and approve transactions that can very well be discharged by a smaller body like the Executive Committee, especially on matters requiring immediate action.” Amendments to BPAP’s articles of incorporation, particularly the change in the association’s name and principal office address, require the approval of two-thirds of all the members. The creation of the Executive Committee

Continuation from page 1 requires the approval of at least a majority of the members. It is therefore crucial that members participate in the referendum by voting or submitting a proxy. Hernandez says the election of the BPAP Board of Trustees tends to be one of most attended meetings of the association. He is confident that members will fully support the upcoming election, voting for individuals who will lead the industry to further growth in the future.

New Office Reflects Phenomenal IT-BPO...

Presentation Area

Reception Area

room, a meeting room, a board room, pantry, and storage rooms. Hernandez says, “Outside of having a bigger, more impressive office, which makes for a better showcase of our industry, we’re also located in a large, fast-growing IT-BPO park.” Arambulo adds, “The location of the office is excellent with direct access to Bonifacio High Street and a great view of some IT-BPOs and global in-house centers located in the area.” Several factors account for this

fortuitous move. For one, there was a growing need for space as more programs were developed for the industry by BPAP, says Lacdao. BPAP had grown to the point where all its employees and those of its partner associations could not be accommodated in the old office. Hernandez adds, “Because of the phenomenal growth, we continue to actually have to expand our support services and our programs for helping develop the industry. This meant that

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Pantry

we have to add more staff across BPAP and its support organizations.” It also came at the right time as the lease of the old office was already up. “It’s a better showcase office for prospective locators and investors. It completes the story of IT-BPO because it’s located where all the action is seen, making it more impressive for international investors and delegates who visit the office. The new office is befitting the stature of the IT-BPO industry,” Hernandez says.


BPAP Updates

4 BreakThroughs July—September 2012 –Vol. 6 No. 2

Business Processing Association PHILIPPINES / www.bpap.org

BSP honors BPAP with Hall of Fame award MANILA, Philippines, August 29, 2012—The Bangko Sentral ng Pilipinas (BSP) honored the Business Processing Association of the Philippines (BPAP) with the Hall of Fame award for Sources of Information for Balance of Payments Projections (Private Sector) in its annual awards ceremony. BPAP was elevated to the hall of fame for receiving this award three consecutive years from 2010 to 2012. BPAP senior executive director Gillian Joyce Virata received the awards in a ceremony led by BSP Governor Amando Tetangco Jr. and the members of the Monetary Board at the BSP Assembly Hall. “We thank the BSP for recognizing the importance and effort that our members and partner associations put into the generation of industry data,” said Virata. “Our research teams appreciate that the information we generate is put to good use by the BSP and other government agencies for making policies responsive to the needs of national growth and development.”

Virata’s work extends from overseeing day-to-day operations of the association to the marketing and research service lines. She has implemented an efficient process of information dissemination for news and updates about BPAP on multiple communications platforms. The IT-BPO industry makes an increasingly substantial contribution to the economy, according to the BSP. Given BPAP’s medium-term growth forecast of US$25 billion in industry revenues by 2016, the BSP said in a report that the surplus in the country’s current services account is expected to increase to US$3.8 billion next year from an estimated US$2.8 billion in 2011. The annual BSP Stakeholders’ Awards recognizes partner institutions that have provided exemplary support to the BSP’s various statistical initiatives, information requirements, and advocacy programs. This year, BPAP was among three institutions in

ERIC ALBERTO FRED AYALA BONG BORJA GRACE DIMARANAN MIGUEL GARCIA JOMARI MERCADO DAN REYES MYLA ROSE REYES BOBOY ROMERO LITO TAYAG NORA TERRADO JL BOTOR OFFICERS FRED AYALA Chairman

BENEDICT HERNANDEZ BPAP Senior Executive Director Gillian Virata poses with BPAP’s three stakeholder awards and Hall of Fame trophy for winning the award three years in a row from the Bangko Sentral ng Pilipinas

the National Capital Region (NCR) to be inducted into the BSP Hall of Fame. BPAP member PCCW Teleservices was also awarded by the BSP as best respondent for the bank’s Survey of Information and Technology‒BPO

Services. Hamlin-Iturralde, another BPAP member, was one of three finalists for the same award. A total of 67 awards were given to partner institutions in and outside NCR through September 2012.

BPAP welcomes US Senate rejection of anti-outsourcing bill JULY 27, 2012—Manila, Philippines — The Business Processing Association of the Philippines (BPAP) welcomed the rejection of an anti-outsourcing bill by the United States Senate. If passed, the bill would have eliminated tax breaks for companies outsourcing services and manufacturing jobs to other countries, and provide a 20% tax deduction on costs associated with closing outsourced operations and transferring jobs to the US. At least one senator, Orrin Hatch, R-Utah, claimed that there is no tax break for outsourcing, saying of the “Bring Jobs Home Act,” “It’s devoid

of serious content because it is of political rather than economic priorities,” he said. The bill failed to muster the votes required to end a Republican-led filibuster and bring it to a final vote. The vote was 56-42. Sixty votes were necessary to end the effort to kill the bill. “Outsourcing business services to the Philippines helps make American companies more competitive and profitable,” said Benedict Hernandez, BPAP president and CEO. “Profitable companies hire more workers, both here, and in the United States.” Numerous studies have shown

BOARD OF TRUSTEES

that outsourcing has little impact on job losses; instead, outsourcing can free up resources to create more jobs at home. “Dartmouth’s Tuck School of Business economist Matthew Slaughter, in a study of the hiring practices of 2,500 US multinationals, found that for every job outsourced, nearly two new jobs are created in the US,” said Hernandez. In an earlier study Slaughter found that American jobs created by subsidiaries of foreign multinationals almost doubled over a generation, employing 5.4 million US workers, almost 5% of private-sector employment, and

paid them 31% more than American competitors. “Outsourcing is a win-win proposition, and we’re glad to see that both Philippine and American companies and our respective workers will continue to benefit from the opportunities it provides,” Hernandez said. In 2011, the Philippines’ IT-BPO industry generated more than $11 billion in revenue and employed almost 640,000 Filipinos. By 2016, it is expected to grow to $25 billion in annual revenue and employ 1.3 million, according to an industry road map.

President and CEO

DAN REYES

Vice Chairman

BONG BORJA Treasurer

MIGUEL GARCIA Assistant Treasurer

BOB GUINTO

Corporate Secretary

LINDY ANDRE’ ABLAÑA Asst. Corporate Secretary

GIGI VIRATA

Senior Executive Director

PENNY BONGATO

Executive Director for Talent Development

RAYMOND LACDAO

Executive Director for Industry Affairs

RON ARAMBULO

Executive Director for Finance and PMO

GENNY MARCIAL

Executive Director for External Affairs

NATHAN ANDAYA

Executive Director for Human Resources

BreakThroughs EDITORIAL ADVISORY BOARD RAYMOND LACDAO GIGI VIRATA BUSINESSINFO INC. ARMIE DUARTE President

HEINZ BULOS Editor in Chief

JENNIFER LEJANO Assistant Editor

DONNA LARAGA Executive Assistant

WILLIAM DIZON Art Director

KRISTINE ALAVE DOREEN IRINCO CATHLEA ROSAS MARLA SILAYAN Contributing Writers

ADVERTISING CONTACTS NETTE ROSELO Administrator

BUSINESS PROCESSING ASSOCIATION OF THE PHILIPINES From left: McDonald’s EVP and RMHC Treasurer Bing Bachoco, BPAP President and Chief Executive Officer Benedict Hernandez, Chief Happiness Officer Ronald McDonald, and BPAP Executive Director for Industry Affairs Raymond Lacdao.

Philippine Star Inside Track EDUCATIONAL Progress. Ronald McDonald House Charities, the charity of choice of McDonald’s, formalizes its partnership with the Business Processing Association of the Philippines (BPAP) in support of

Bright Minds Read (BMR), a program in partnership with the Department of Education (DepEd) that aims to teach beginning reading to grade 1 public school students all over the country. The BPAP has committed

to provide 100 BMR kits for public elementary schools in BPAP’s Next Wave Cities. To date, BMR is in 4,000 public schools, helping over 3.5 million Filipino kids. In the photo are McDonald’s EVP and

RMHC Treasurer Bing Bachoco, BPAP President and Chief Executive Officer Benedict Hernandez, Chief Happiness Officer Ronald McDonald, and BPAP Executive Director for Industry Affairs Raymond Lacdao.

5th Floor, C2 Building Bonifacio High Street, 30th Street corner 7th Avenue, Bonifacio Global City,Taguig Tel: 817-BPAP (2727) Fax: 817-8141 E-mail: netteroselo@bpap.org

PEACHIE G. CORTEZ Operations Director

BUSINESSINFO INC.

Shop No. 3, 4 & 5 Ayala Towers, The Peninsula Manila, cor. Makati and Ayala Avenues, Makati City Telefax: 856-4954 E-mail: peachie@businessinfoinc.com


6 BreakThroughs July—September 2012 –Vol. 6 No. 2

BPAP Updates

Business Processing Association PHILIPPINES / www.bpap.org

Legislative Committee: Bridging Policy-Making in Government and the Outsourcing Industry BPAP’s Legislative Committee, or LegCom as it is more commonly known, has set the foundation that will enable the IT-BPO industry to establish relationships with the policymaking sector of the government. The LegCom essentially provides the different sectors within and around the outsourcing industry with a bridge to support smooth and efficient communications and coordination with the legislative sector of government. “It’s important to note that, as a nation, it is incumbent for all Filipino citizens to be part of our country’s growth. BPAP embraces that ideal and, as such, it convened the LegCom in 2009, mandated to ensure the continuance of an attractive business environment for the country’s flourishing IT-BPO industry through a predictable legislative and policymaking agenda,” according to LegCom Head Genny Inocencio-Marcial. Among its functions, Marcial says LegCom partners with government agencies towards raising awareness on the different needs of the IT-BPO sector so that local government units (LGUs), as well as other sectors in government, can provide the right environment and support for this fastest growing sector of the country’s economy to flourish and expand, and achieve its growth target of 1.3 million direct workers and US$25 billion in revenues by 2016. The LegCom also works together with the Joint Foreign Chambers (JFC) and other industry associations in ensuring that the Philippines institutes the needed programs and policies that would support initiatives towards making the country the preferred investment destination. Just as the LegCom gets support from government institutions regarding specific policies, the LegCom also regularly provides BPAP members a rundown of requirements, guidelines, the latest policies, and any amendments or clarifications issued by various government entities that may potentially have an impact on the IT-BPO industry. The group likewise actively participates in policy-making exercises such as technical working groups (TWG), consultations with legislators, and committee hearings being held in both Senate and Congress. In particular, LegCom links with local government units (LGUs) to know their policy requirements as well as the viability of their existing infrastructure and talent pool that potential locators might find attractive.

Partnering with Government The LegCom has passionately worked for the signing of a number of government policies that encourage the expansion of business process outsourcing companies. For instance, the group pushed for the passage of an amendment to a labor law that prohibits women from working at night. This eventually made it safer for women to work as night-shift contact centre agents without employers being penalized. The signing into law of the Data Privacy Act just last August 15 is expected to further benefit the IT-BPO industry, in particular the provisions stipulating the protection of personal information and sensitive personal information being transmitted to and processed in the Philippines. Marcial says this law will considerably increase investors’ and clients’ confidence in having their business processes done in the Philippines. Similarly, Marcial says the recently

Photo shows LegCom members at the Senate with Sen. Angara and members of other industry associations and the Foreign Chambers.

LegCom members after a dialogue with Mayor Herbert Bautista of Quezon City.

LegCom members led by BPAP Board Member Dan Reyes during a recent meeting with Taguig Representative Sigfrido Tinga.

signed Cybercrime Prevention Act will help sustain and enhance investor confidence and strengthen the Philippines’ position as one of the world’s top locations for high-value ITBPO services as it provides the resources and legal framework to identify, prevent, and penalize Internet-based crimes and safeguard the integrity of data being processed online. “Right now, we’re trying to establish a direct line with the government so that the concerns and issues affecting the industry can be addressed immediately. Being in a dynamic industry that continuously grows and evolves due to increasing global demand for outsourcing services, it is extremely important for the government to be responsive so that the industry’s stakeholders and potential locators will be encouraged to invest in the Philippines. This symbiosis will eventually ensure that our industry remains on solid ground,” Marcial emphasizes.


Business Processing Association PHILIPPINES / www.bpap.org

BPAP Updates

July—September 2012 –Vol. 6 No. 2 BreakThroughs 7

The Technical Education and Skills Development Authority (TESDA) and Business Processing Association of the Philippines (BPAP) signed a memorandum of agreement with the University of Makati, the principal partner technical vocational institution (TVI) in NCR for the “Train the Trainers” program for the IT-BPO industry. Photo shows (from left) BPAP executive director for Finance and PMO Ronald BPAP president and CEO Benedict Hernandez discusses Arambulo, University of Makati Educational Development Foundation chairman Jose Emerico Cruz, the partnership between TESDA and BPAP. TESDA Director General Joel Villanueva, and BPAP president and CEO Benedict Hernandez.

TESDA Director General Joel Villanueva gives an overview about the trainers’ training program for IT-BPO.

BPAP-TESDA Partnership Brings Winning Results THE Business Processing Association of the Philippines’ (BPAP) strategic collaboration with the Technical Education and Skills Development Authority (TESDA) has brought unprecedented levels of support and cooperation between the two organizations, resulting in the generation of tens of thousands of jobs for the youth in the IT-BPO industry. BPAP president and CEO Benedict Hernandez says, “It is a record level in terms of funding for our near-hire program called the Industry Training for Work Scholarship Program (ITWSP). It is allowing the IT-BPO industry to train 68,000 near hires which would generate 47,000 jobs for us this year. We are also going to train trainers, about 1,800 trainers, to improve the way they facilitate the ITWSP program.”

“The ITWSP program is directly driving and impacting meaningful employment numbers and addressing the shortage of the industry for skilled entry-level workers,” says Penny Bongato, BPAP executive director for talent development. “As the program progresses and improvements are implemented by both TESDA and BPAP, then the quality of the delivery can only improve and the positive cycle continues in terms of moving closer toward the industry’s employment target of 1.3 million direct hires by 2016,” adds Bongato. BPAP’s partnership with TESDA started in 2006 with the first deployment of the ITWSP voucher program. For the 2011 BPAPTESDA memorandum of agreement (MOA), some ₱450 million worth of scholarships was made available in

270 TESDA-registered Training and Vocational Institutions (TVIs) across the country. The scholarship fund is managed by BPAP together with its partner industry associations including CCAP, HIMOAP, ACPI, PSIA, GDAP, and NICP. “The objectives of the scholarship program are to provide domain training to some 68,000 IT-BPO near hires and target that at least 70 percent or 47,600 of them are employed within six months of completing their training. The ITWSP program is still ongoing with the last classes for 2011–2012 expected to run in November and employment tracking to continue until June 2013. Despite a slow start to the program, it has picked up steam and looks on track to achieving the training and employment targets by the end of the program,” says Ronaldo Arambulo,

BPAP executive director for finance and project management. Apart from training near hires, the new MOA also allocated a budget for the training of trainers with a BPAP industry enhanced curriculum. The objective is to create an IT-BPO– centric train-the-trainers program called Training Methods Plus (TM Plus) which would target some 900 trainers nationwide, says Arambulo. It was recently launched at the University of Makati, one of BPAP’s TVI partners. Arambulo has only praises about working with TESDA. He says, “The experience so far has been a very positive one, despite a steep learning curve. My key contacts at TESDA are Executive Director for Planning Patti dela Rama and Director for Scholarships PMO Marissa Legaspi. They are both extremely professional

and seasoned TESDA executives who are both thoughtful and collaborative. They share the dedication and drive to help steer the ITWSP program through and provide the needed support at each stage and to a successful conclusion.” Hernandez echoes Arambulo’s testimony, adding, “We are very happy to be working with TESDA. They’ve been extremely flexible, collaborative, and very hardworking. It’s an important point because we have this stereotype of the government and how it moves: slow and bureaucratic This is not the case with our experience with TESDA.” Hernandez adds, “We are preparing to give a full report of the year’s program with TESDA. We are also preparing our proposal for programs next year. We want to improve what we’ve done this year.”


8 BreakThroughs July—September 2012 –Vol. 6 No. 2

BPAP Updates

Business Processing Association PHILIPPINES / www.bpap.org

Work Abroad, Live Here—the Missing Piece WE’RE into the second year of Road Map 2016 and elsewhere in this publication you’ll find stories of the tremendous effort the BPAP team, member volunteers, and partners have made to keep us on track to reach our accelerated targets, principally, building a workforce of 1.3 million by 2016. There is one aspect of the talent development and recruitment effort that has seemingly been neglected, that is, the part of the program that educates the public on the benefits of careers in IT-BPOs and global in-house centers (GICs). Such a career marketing program would address negative or limited misconceptions that appear in the media and that are always asked in forums from persons who have no or limited direct experience of the industry but have the potential to influence applicants. As far back as Road Map 2010, it was known that increasing the percentage of qualified persons willing to work for the

industry would be a low-lying fruit that had the potential to rapidly expand the workforce. Using GCAT, we know that 20% of students are qualified to work in the industry. And we know that only 5% to 8% of all applicants qualify without additional training in basic competencies. This means that only 30% of all qualified students are applying for work in our industry. If we can increase the percent of qualified applicants willing to work in the industry from 30% to 50%, we could increase the direct hiring rate to at least 10%. If we could couple this with an increase in the suitability of applicants through assessment and training (GCAT, ITWSP, SMP, AdEPT, BEST, etc.) from 20% to 30%, the direct hiring rate could be as high as 15%—about double the current rate. This is the rate we will need to reach if we are to attain our 2016 employment target. This year, BPAP rolled out one of its central tools for career education and

we called it WorkAbroadLiveHere.com. This website, now in its pilot phase, will in the coming months be a repository for information on the great careers that can be had in our industry including content on why and how potential employees can join our workforce. It will also be a venue for companies to post job opportunities and for applicants to post résumés and will serve as the landing site for visitors directed to it using social media marketing (a Work Abroad, Live Here Facebook page went live simultaneously with the website). I urge all members to visit the site and the Facebook page and to stay tuned to Work Abroad, Live Here! Note: Since May this year, the Marketing and Research Units of BPAP have been combined into a single unit, which I lead with the support of marketing and research associate Indu Badlani (indubadlani@bpap.org). Please contact us for any queries on marketing and research.

Let’s Ta lk BPO IF anyone asked me during the early part of 2010 what a BPO is, I would have given them a blank stare and a tentative reply of “it’s a call center, right?” Now, more than two years and two months since moving to this incredibly dynamic industry, I not only know what AHT, RFP, EOD, and a handful of other BPO terminologies mean, I have also managed to successfully transition from being an industry “newbie” to a “tenured” member of the BPO workforce. And if there’s one thing I can say about our industry, it is that it’s in a class all by itself. I guess this is the reason why the Philippine government is more flexible

when it comes to our industry. Since we admittedly use a different business model as compared to more “traditional” companies, and we are the fastest growing sector (and the only bright spot, according to some government insiders) in the Philippine economy, our government is more willing to understand our distinctive genetic make-up and make some allowances for our idiosyncrasies, for which we are eternally grateful. But no matter how different we may be, or how atypical our operations and processes are, we make it work. As Congressman Freddie Tinga said at the recent BPAP GMAM, “You guys get it!”

And get it we intend to continue doing. To ensure that the industry will continue to “get it,” a group of gungho lawyers and wannabe lawyers from BPAP’s member companies formed the Legislative Committee some years ago. Full of passion and resolve to ensure that the Philippines maintains its attractive investment-friendly business environment, the pioneering members of the LegCom has been willingly volunteering their time and expertise for quite some time now, in the process scoring some major victories for the benefit of the industry in the policymaking front. Recognizing, however, that as the

GIGI VIRATA BPAP Senior Executive Director

Tonette Consuelo, BPAP Research Manager, 1969–2012 I am saddened to announce the death on Tuesday, September 25, 2012, of Tonette Consuelo, BPAP’s Research Manager, after a brief illness. Tonette joined BPAP in 2007 as Research Consultant and has in the last 5 years been the association’s gatekeeper of industry information and data. She maintained our Next Wave Cities scorecard and industry database.

Many of you have been helped by Tonette in your data requirements and will be able to confirm that she was exemplary in her professional, quick, and pleasant response to the hundreds of requests she received each year. Tonette was my “secret weapon” as she worked behind the scenes and mostly from home but could also be relied on to ably represent the industry at important meetings, events, and conferences. She will be much missed. My thanks to members and friends who sent kind words, prayers, flowers, and other expressions of sympathy and appreciation for the many positive experiences they have had with Tonette.

GENNY MARCIAL BPAP Executive Director for External Affairs

IT-BPO industry grows, so will the challenges that will continue to come our way. To make sure that all bases will continue to be covered policy-wise, the group decided to hold its first elections last August 23. The resulting line-up of elected officers came as no surprise as the familiar faces have been at the forefront of LegCom’s initiatives since the group’s inception.

Get to Know Your LegCom Chosen to steer the Legislative Committee to even greater heights are – Chairman: Martin Crisostomo, Governmental Programs Executive, IBM Philippines

Vice Chair – Labor: Kenneth Chua, Head, Employment Practice Group and Services Industry Group, Quisumbing Torres Vice Chair – Tax: Benedicta DuBaladad, Managing Partner and CEO, Du-Baladad & Associates (BDB Law) Vice Chair – I.T. Policy: Raul Cortez, Legal and Corporate Affairs Director, Microsoft Philippines, Inc. Vice Chair – Government Relations: Celeste Ilagan, VP for Marketing and External Affairs, SPi Global Vice Chair – Special Concerns: Kiko Victoria, Genpact Vice Chair – International Relations: Leleen Juarez, Medicall

From left: Martin Crisostomo, Kenneth Chua, Benedicta Du-Baladad, Raul Cortez, Celeste Ilagan, Kiko Victoria, and Leleen Juarez

Service Management Program—gearing up for 2016

PENNY BONGATO BPAP Executive Director for Talent Development

THE Memorandum of Cooperation with CHED continues to aid us in our goal to employ 1.3 million direct employees in the BPO industry by the year 2016. It paved the way for the Service Management Program to be rolled out in schools for students to learn firsthand about the industry and to train more teachers in the curriculum relevant to the BPO industry. In February this year, the Service Management Program was approved by CHED as a minor in business courses. It rolled out this school year in three universities—Jose Rizal University, Lyceum of the Philippines–Laguna and University of Makati. Asia Pacific College is also offering it this year as part of their curriculum in

grade 11 paving the way for secondary students to be employable as soon as they graduate. Aside from Asia Pacific College, Don Bosco College and Manila Times College have also signed up to include the curriculum in their grade 11 or grade 12 programs next school year. This pilot program has, collectively, 19 industry practitioners currently teaching the semester’s subjects, Fundamentals of BPO 101 and Service Culture, to 250 students. To enable the industry practitioner to move on to other colleges and universities and enable the program to flourish, school faculty members sit in and shadow each lesson to familiarize themselves with the teaching methods needed to properly teach the subject matter.

As part of our effort to continually improve systems and teaching methods and curriculum, we are in dialogue with our students, industry practitioner teachers and school faculty. This will enable us to further enhance our curriculum and, as a result, the future members of our industry. Next semester will see the roll out of Fundamentals of BPO 102 where more industry practitioners are needed to teach their students the operations side of the industry. Project management, Six Sigma, regression analysis and other related subjects are just some of the topics covered in this subject where experts are needed to share their knowledge with our partner schools

and teachers. Another subject to be offered in the second semester is Business Communication. Just this past August, CHED also approved the inclusion of the Service Management Program in IT courses. This act will prepare IT graduates to not only act as agents but also have fundamental knowledge for management positions. To help us ramp up our numbers and disseminate our program, teacher training is essential. We continue to work with CHED to train faculty from 13 state universities and colleges nationwide to prepare them to teach the Service Management Program in their respective areas by school year 2013. We are also working with DOST’s

Information and Communications Technology Office and its Science Education Institute to train more teachers to teach the Service Management Program using the method we find most effective in teaching our curriculum. We applaud those industry practitioners who are giving their time and effort to push our industry forward by being involved in teaching the pilot program to both students and faculty. We are still in need of more volunteers to help teach in their fields of expertise. For further information on how you or your company can help push talent development forward, please feel free to get in touch with me or email me at pennybongato@bpap.org.


10 BreakThroughs July—September 2012 –Vol. 6 No. 2

BPAP Updates

Stepping Up WE have seen the terrific success story of our call centers over the first decade and we will continue to protect our market position. However, the second decade is turning out to be even more promising as the Philippines is being discovered for all the other services that we can offer such as IT outsourcing, engineering services, creative process outsourcing, health information management, back office processing as well as corporate shared services. Looking at the current investments, growth of locators, and types of services, one will notice that the industry has become more diversified. A growing number of prominent financial institutions are now here. A growing number of big companies are also here, outsourcing their needs for financial accounting and back office processing, among others. Indeed, it’s going to be a very exciting next decade, and we are more than ready to meet this increasing demand for IT-BPO services. As the industry’s lead organization, BPAP is making sure that we have the right climate to host this growing demand for the Philippines to keep providing ITBPO services to the rest of the

world. That’s why we at BPAP have stepped up our efforts, gearing ourselves for more action. In many respects, the year 2012 has been a trailblazing one for BPAP and the IT-BPO industry.

Unprecedented support For one, we are currently running several talent development programs of a magnitude unheard of before in the industry. What we’ve seen this year is unprecedented levels of support and collaboration, particularly from TESDA. It’s a record level in terms of funding for the Industry Training for Work Scholarship Program (ITWSP), which allows the industry to train 65,000 near-hires and generate 47,000 jobs for this year. It is a significant program in terms of helping us scale up and add more talent to join the industry. We’re very happy to be working with the team in TESDA. They have been extremely flexible, collaborative, and very hardworking. And we’ve had a very positive experience working with them. We also have active partnerships with CHED, DepEd, and DOST.

Better showcase BPAP itself has significantly

stepped up. Because of the phenomenal growth of the industry, we continue to have to expand our support services and our programs for helping develop the industry. We’re also very excited about moving to our new office. It is going to be bigger in space, more impressive in design, and it serves to be a better showcase for prospective locators and investors, befitting the stature of the industry. The fact that we’re moving to Bonifacio Global City, which is a large, fast-growing IT-BPO park, is significant as we will be located where all the action is.

Business Processing Association PHILIPPINES / www.bpap.org

From The CEO Desk Benedict Hernandez

We are moving into our new offices very soon, which would enable us to do our job more efficiently. We have also hired additional staff to continue running our programs more effectively. We are also designing more talent development programs to keep pace with our industry’s outstanding growth.

Major changes We’re also getting ready for our referendum and elections scheduled for February 2013. We have been blessed with a very active and energetic board that has guided BPAP through the years. With the

coming elections, we look forward to have another set of board members, both old and new faces. We’re setting a referendum also for our members to vote on the change in our name from BPAP to iBPAP to emphasize that we’re representing the IT-BPO sector; the change of our official address, and the creation of an executive committee that would meet more frequently to hasten decision making, among others. As you can see, BPAP is more than ready to take on the challenges the future brings, which, by all accounts, would be an incredibly prosperous and exciting one!

“The second decade is turning out to be even more promising as the Philippines is being discovered for all the other services that we can offer.”

All in a Day’s Work Industry Affairs Insights RAYMOND LACDAO BPAP Executive Director For Industry Affairs

BUSINESSMAN and author Harvey Mackay once said, “Find something you love to do, and you’ll never work a day in your life.” More than anything, the statement is a lesson on perspective. In order to do well in any kind of work, you must enjoy what you do, and in order to achieve growth in your chosen profession, you must find meaning in your work. After more than two years of handling Industry Affairs – countless investor briefings and road shows, membership assemblies and industry events – the demands of the job continue to pose new challenges and equally rewarding experiences as BPAP continues to grow. Given the recent developments, we are relocating to a bigger place at Bonifacio High Street Central

in Global City Taguig in order to accommodate BPAP expansion. With growth comes change. One of the ways to gauge growth is through numbers. Six months into 2012, the target of 30 new members have already been surpassed with the inclusion of 34 new BPAP members, ABS-CBN Shared Service Center Pte. Ltd., Stellar Philippines Inc., Truelogic Online Solutions Inc., Creative Media Company, and eServe BPO Inc., among others. Investors have likewise expressed interest in establishing sites in the Philippines. Out of 114 meetings and investor briefings, 40 have expressed interest in investing, and out of those 40 who expressed interest, we are currently supporting 17 confirmed investors. Beyond the numbers, however, change can also be seen at the micro-

level helmed by our LGUs. Where a few years back, the reception has been lukewarm, recent road shows have seen more accommodating, more open and welcoming stakeholders to the potential of IT-BPO sector in their respective provinces. Through efforts in promoting local development through ICT, all stakeholders – from the academe to investors and the local government units (instrumental in our promotional campaigns) – have come together to build their province as the next IT destination. It’s not all work and no play, however. From Bicol, Baguio, Bohol, Sta. Rosa, Clark, Cavite, Davao, Cagayan de Oro, Clark, Cavite, Nueva Ecija, Manila, Subic—road shows are a great way to get connected with the local stakeholders. It’s also a golden

“The students’ enthusiasm are matched only by their dedicated teachers whose active involvement is instrumental to talent development.”

opportunity to get to know the culture of the Philippines. In Legazpi, for example, I swam with the butandings, experienced ATV trekking, and rode the zip line against the scenic background of Mt. Mayon’s famed perfectly shaped cone. Immersing ourselves in the richness and diversity of the Philippines gives us a clearer perspective on how our work fits into the bigger picture. Despite the distance, the languages, the heart of the Filipino remains the same no matter where we are. A recurring comment we’ve heard from visiting the next wave cities is the value for family. The opportunity presented by the ITBPO industry appeals to Filipinos in the provinces because they no longer have to endure displacement by leaving their families and loved ones behind to try their luck in Metro Manila. With Filipinos, it always boils down to what the students can do to help their parents, and with the IT-BPO, they’re given an even better opportunity for career growth without leaving their home behind. Oftentimes, too, we forget how tech-savvy and in tune the youth are when it comes to ICT and competitiveness in the global market. During one of the capacity building activities in Luzon, we were advised to speak in Filipino for clarity as most of the audiences were students. As it turned out, while we made sure to use Filipino all throughout the activity, the students meanwhile asked questions and

gave feedback in fluent English – clearly conveying their aptitude and readiness to converse in the global tongue. During another occasion, in a nearby province, when the students were asked how many owned a cellphone, not everyone raised their hands, but when asked if they had Twitter or Facebook accounts, the show of hands was overwhelming. The students’ enthusiasm are matched only by their dedicated teachers whose active involvement is instrumental to talent development. These are just some of the growth—whether in membership, awareness, or support—that we have experienced. We would be remiss in our responsibilities, however, if we neglect the foundation of our growth. Now on its 4th year, we continue to make children’s dreams come true by donating 10,000 school supplies and 500 units of PCs through “My Dream in a Shoebox” in partnership with the Ronald McDonald House Charities and the Department of Education. Since social mobility only comes once basic necessities are provided, we will continue to extend aid to casualties of calamities such as the recent Monsoon flooding. As the Executive Director for Industry Affairs, the task can oftentimes be daunting, taxing, and at times repetitive; but always, it is rewarding. From growth to giving back, Industry Affairs is now gearing up for bigger and better things ahead.


12 BreakThroughs July—September 2012 –Vol. 6 No. 2

Executive Profile

Business Processing Association PHILIPPINES / www.bpap.org

SunPower Exec Basks in Bright Future ED Moran, who heads the first shared services office of the Silicon Valley headquartered SunPower, practically grew up with the business process outsourcing (BPO) sector. Moran, a young executive, started out in an oil and gas company after graduating from the Ateneo de Manila in the late 90s. He admitted that he had no inkling that he will be a mover in the BPO industry. He did not stray far from his energy sector roots though as he now leads SunPower’s shared services office, a fast-growing department in the company. Moran, an avid gamer and a comic book collector, has only been a year in SunPower, but he finds the job at the green company both rewarding and challenging. “SunPower has a powerful vision – to change the way the world is powered – and being part of that vision for me was a tremendous opportunity and proposition,” he said in an interview in his office. Moran also pointed out that SunPower, which has about 2,000 dealers worldwide, is a technology leader. He noted that the company’s solar cells, which are manufactured

in the Philippines, are up to 24% efficient. SunPower panels are also 50% more efficient than conventional technology. “SunPower designs, manufactures and delivers the highest efficiency, highest reliability solar cells, panels and systems available today, with guaranteed performance,” he said. “ We’re constantly working to challenge ourselves especially as it relates to technology and our products,” he added. SunPower’s SSO division was established in 2006, with 10 employees. From being a traditional contact center, Moran’s department now provides marketing operations support, order management, logistics and supply demand planning, design services and project support, technical services, business analytics. That SunPower expanded its SSO in the Philippines is a testament to the Filipinos’ ability to rise up to challenges and exceed expectations in the professional field, Moran said.”Magaling ang Pinoy,” he said. The SunPower executive said he was drawn into the BPO sector because of its promise of professional growth.

Moran, who described himself as a collaborator who does not shy from making hard decisions, said his experience in the BPO world gave him an opportunity to learn about other markets while honing his people management skills. Moran said he is looking forward to the changes and improvements in the BPO sector in the next few years. “As our industry has matured, the challenge now I believe is to demonstrate what more is capable of being done within a shared service in the Philippines, moving from transactional work to more strategic and value added involvement. The need to constantly up your game and prove what is possible --- that is a powerful driver for me,” he said. As an industry mover, Moran said it was heartening to see the Philippines lead the BPO services in the world. “I am just happy to continue to contribute to the growth of this sector in our country, and through my own personal experience, I have seen investors and customers open their eyes and realize that the Filipino is a world class professional and can perform equally well to anyone else in the world,” he said.

Ed Moran heads SunPower’s shared service office


14 BreakThroughs July—September 2012 –Vol. 6 No. 2

Industry Association

Business Processing Association PHILIPPINES / www.bpap.org

ACPI attends content markets in France and South Korea THE Animation Council of the Philippines, Inc., together with its member Toon City Animation, participated in MIPTV 2012 in Cannes, France, held April 1 to 4, 2012. Dubbed as the world’s greatest gathering in media, MIPTV is the world’s leading content market for creating, coproducing, buying, selling, financing, and distributing entertainment content across all platforms. MIPTV gathers about 11,500 media professionals from 107 countries representing all aspects of the new ecosystem of the entertainment business such as in the television, digital, and advertising fields, including 4,000 buyers and 1,500 exhibitors to make new deals that will define the future of the entertainment business. The annual event also provided a market conference and networking forum to discover future trends and trade content rights on a global level, and offered a multitude of exciting new business opportunities for the global TV industry. MIPTV is described as a vibrant community of dynamic companies and individuals that are forging the new future of TV entertainment. New platforms and expanding global markets drive new blockbuster TV content deals at MIPTV, from formats and scripted series, international co-productions, to factual and experimental media. ACPI’s participation in this year’s MIPTV highlights the capabilities of the Filipino animation companies to produce their original content and not just serve the animation requirements of other countries. MIPTV 2012 sheds light on the growing opportunities in Asia, specifically the Philippines which was presented as Asia’s best-kept secret in animation. From the MIPTV market in Cannes, the Animation Council of

ACPI participates in Busan Contents Market 2012

the Philippines Inc. (ACPI) went to the Busan Contents Market (BCM) held at the Busan Exhibition and Convention Center (BEXCO) in Busan, South Korea from May 12 to 14, 2012. The Philippine delegation was composed of Tuldok Animation Studios and Genesis Instrumentation & Creative Design Training Center, with the delegation led by ACPI’s Executive Director, Michael Kho Lim. Tuldok presented its original content currently in production, which includes six short folk tales of 15 minutes each, namely, “Si Bulusan nan si Aginay” (Bulusan and Aginay), “Pilandok,” “Ang Alamat ni Bernardo Carpio” (The Legend of Bernardo Carpio), “Si Pagong at Matsing” (The Turtle and the Monkey), “Indarapatra at Solaiman” (Indarapatra and Solaiman), and “Katalina.” Genesis presented its ongoing animated series entitled “Starfall.” It is clear that the way TV content is being financed, produced, delivered, and consumed is changing and the demand for quality content is increasing. From ACPI’s vantage point, there are more opportunities than ever before. ACPI is a non-profit organization recognized and supported by the government to promote Filipino animation talents worldwide. Annually, it holds the Animahenasyon Philippine animation festival, which features works of aspiring and professional animators in the country through competition, conferences and work exhibits of lifetime achievement awardees. To learn more about ACPI and Animahenasyon, please visit www.animationcouncil.org, www. animahenasyon.com, or connect with them through Facebook <facebook. com/Animahenasyon>, <facebook. com/AnimahenasyonPilipinas>, or follow them on Twitter <twitter.com/ animahenasyon>.


Company News

16 BreakThroughs July—September 2012 –Vol. 6 No. 2

Business Processing Association PHILIPPINES / www.bpap.org

Cognizant Opens Second Delivery Center in the Philippines to Support Rapid Growth COGNIZANT to Deliver Full Range of Applications, IT Infrastructure, and Business Process Services from the Center MANILA, Philippines, July 24, 2012— Cognizant (NASDAQ: CTSH), a leading provider of information technology, consulting, and business process outsourcing services, today announced that it has expanded its presence in the Philippines with the opening of a new delivery center in Pasig City, Metro Manila. The center, located in the IT-BPO services hub, Ortigas Center, will accommodate approximately 1,000 professionals and will deliver a full range of applications, IT infrastructure, and business process services to global clients in the financial services, healthcare, manufacturing and logistics, retail, hospitality, telecommunications, and consumer goods industries. Cognizant started operations in the Philippines in December 2009 to provide business process services to global clients and has since grown to more than 700 professionals delivering a broad range of services from the company’s existing facilities in Manila. In April 2011, Cognizant won the prestigious Philippines’ International ICT Award for Best New BPO Locator of the Year. Cognizant is working closely with academia in the Philippines to develop talent across a full range of services and has an active campus recruitment program in the country. As part of its corporate social responsibility program, Cognizant is running several community initiatives. Key among them are conducting classes,

setting up libraries, and organizing health camps in local schools to develop talent at the grassroots level. The company has also adopted Eusebio C. Santos Elementary School, a public school located in Taguig. “I congratulate Cognizant on the expansion of its operations in the Philippines, one of the world’s fastest-growing ICT destinations,” said Louis Casambre, Undersecretary and Executive Director, Information and Communications Technology Office, Department of Science and Technology. “Cognizant’s decision to expand its operations in the Philippines underscores the confidence that the company has in our country and our people. By creating high-value jobs, enhancing the local talent pool, and engaging actively with academia and the local community, Cognizant has brought to the Philippines the benefits of its industry-leading growth, and industryacclaimed business and technology insights. Our people in the Philippines are prepared to take on the global challenges that come with the demands of the industry. We shall work hand-in-hand to make our country synonymous with world-class excellence.” “We are delighted at the way Cognizant has established itself in the Philippines, and enriched the country’s ICT credentials in the global marketplace,” said Gigi Virata, Senior Executive Director of the Business Processing Association of the Philippines. “Cognizant’s expanded presence will further help the consulting, IT, and BPO industry in the Philippines increase its competitiveness to meet

the demands of a fast-changing global business landscape. We thank Cognizant for investing in the Philippines, and providing an opportunity for experienced professionals as well as fresh graduates in the country to serve global customers.” “The new center is a result of our continued investments in people, facilities, systems, and processes to meet continued strong demand for our services,” said Lakshmi Narayanan, ViceChairman, Cognizant. “The Philippines is among our key global delivery centers that provide a broad array of capabilities across industries and service lines. It has played an important role in helping our customers build agility into their businesses, unlock enterprise value, and drive top-line growth. The new development center further strengthens our integrated global delivery capability, and our success in leveraging the best talent globally.” “We are pleased with our experience and growth in the Philippines, and chose Pasig City to expand our footprint in the country because of its highquality talent, sound infrastructure, good connectivity, and a great business environment,” said Prabhakar Bisen, Country Head, Cognizant Philippines. “In our mission to help customers drive operational efficiencies and innovation, we have benefited immensely from the rich talent pool and high-growth ecosystem provided by the Philippines. We are committed to growing our operations in the Philippines by expanding existing facilities and adding new ones.”

Inauguration of the Cognizant Hanston Center: From left: Usec. Mon Ibrahim, ICTO; Mr. Prabhakar Bisen, AVP and Country Head, Cognizant Philippines; Mr. Lakshmi Narayanan, Vice Chairman, COgnizant; Ms. Gigi Virata, Senior Executive Director, BPAP; Mr. Jojo Uligan, Executive Director, CCAP

About Cognizant

Forward-Looking Statements

Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50 delivery centers worldwide and approximately 140,500 employees as of March 31, 2012, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed in our most recent Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

SPi Global CEO was Voice of the BPO Industry in Government’s Economic Briefing WITH 2016 fast approaching, SPi Global President and CEO Maulik Parekh said the government and the BPO industry should close ranks to be able to recruit 1.1 million skilled and talented employees within the next four years and meet the industry target of $25 billion in revenues. Parekh, who represented the BPO industry during the last Philippine Economic Briefing organized by the Investor Relations Office (IRO) of the Bangko Sentral ng Pilipinas, said that there is huge challenge on the supply side of the BPO business and urged the government to extend full support to the industry in the areas of talent development, marketing and the continued grant of competitive incentives. “We are on a trend to supply only 580,000 people in the next four years. We need to support the BPO road map to reach our goal of employing 1.3 million workers and generating $25 billion revenues (by 2016),” he said. The Philippine Economic Briefing is a major government information campaign to report the government’s economic performance including the programs and projects in the pipeline that will fuel economic growth and development. Held twice a year and on its tenth year now, it is led by the government’s Economic Managers, who are the Cabinet Secretaries of key departments. Through the briefing, the government also hopes to gather ideas, insights, and feedback from the private sector so that it can help the industries meet the challenges and constraints to their goals. It is attended largely by the business community, representatives from government, international organizations, members of the media and other stakeholders. The recent

SPi Global President and CEO reports on the IT-BPO industry at the government’s economic briefing early this year

briefing featured three industries that are considered government top priorities in terms of investment and employment generation potential and BPO was among them. Invited as one of the three private sector “reactors” to the government’s report, Parekh had the opportunity to also give an update on the industry’s current status, prospects, challenges and recommendations on how best the government can help the industry. In Parekh’s remarks, he lauded the efforts and support of the government over the past few years, especially in continuing to allocate funds to TESDA that’s intended to help train potential BPO employees. But still, he said “we need to make significant changes in our strategy to support the growth of the industry.” “I think we need to promote the BPO career as the career of choice. The BPO industry today offers opportunities that are quite complementary to what the

OFWs are doing. It gives opportunities to educated Filipinos by allowing them to pursue a thriving career without having to leave their homeland, their families, and their friends,” said Parekh. “I believe the time has come for us to recognize our BPO workers bilang mga bagong bayani,” he added. He urged for greater support of government in both voice and nonvoice services with particular emphasis on the huge potential of the latter. “We have to focus on non-voice. We have to tap financial and HR services, procurement, IT and others. We need to go deeper into vertical specializations such as health care, content solutions or publishing, etc. because they are highervalue and not as easy to transplant,” he said. “Meeting the BPO industry’s target of $25 billion in revenues by 2016 will require the intelligent exploitation of promising pockets of growth,” Parekh added. Still touching on another important

consideration, Parekh indicated that the predicted explosive growth in the demand for BPO services will also require a new batch of leaders. “We always focus on the entry- level people and whether we can get them or not. But when we have close to 1.3 million working in the industry, do we have enough leaders highly skilled in mentoring the others to the next level?” said Parekh. On yet another concern that’s worrying to the BPO industry, he urged the government to continue its support through a more strategic incentives regime, saying that “we should not look at our incentives in absolute terms, but in relative terms, how they compare to the competition, to other countries.” To sustain the entry of more investments and outsourcing contracts to the country, more marketing support through more road shows in key and emerging markets can also help. The passage of BPO-friendly bills, like DICT,

Data Privacy, and Anti-Cybercrime, will also strengthen the industry, according to Parekh. To round it all up and ensure continued investor confidence in the Philippines, the government’s unrelenting pursuit of good governance is essential, he concluded. The three other reactors to the government report were San Miguel Corporation Chief Finance Officer Ferdinand Constantino and Philippine Travel Agencies Association President Aileen Clemente and Asian Development Bank Vice President Stephen Groff. Other private sector participants in the ensuing panel discussion included: Ayala Corp. Managing Director John Eric Francia, JG Summit Holdings Inc. President and CEO Lance Gokongwei, Chamber of Furniture Industries of the Philippines Vice President and Corporate Secretary Nicolas De Lange, Management Association of the Philippines President/Director Eduardo Francisco. In attendance from the government side were BSP Governor Amando Tetangco Jr., Finance Secretary Cesar Purisima, National Economic and Development Authority Secretary Cayetano Paderanga Jr., Budget Secretary Florencio Abad, Trade and Industry Secretary Gregory Domingo, Energy Secretary Jose Rene Almendras, Public Works Secretary Rogelio Singson, Agriculture Secretary Proceso Alcala, Transport and Communications Undersecretary Rene Limcaoco. Editor’s note: BPAP president and CEO Benedict Hernandez also represented the BPO industry in a subsequent government economic briefing.


inSPiring FiliPino outSourcing excellence

SPi Global, the largest Filipino-owned BPO company, is a proud recipient of the following recognitions: 2012 ®

Best 10 Leaders – Entertainment and Media Best 20 Leaders – Financial Services (Insurance) Best 10 Leaders – Document Management Services Best 20 Leaders – Customer Relationship Management Services

Top Mid-tier BPO Provider Top Industry-specific Niche Leader Top Global Knowledge Process Leader Leader, Mid-tier Customer Management Services

Sao Khue 2012 Prize for “BPO service for BPO Services Group” Sao Khue 2011 Prize for “BPO service for BPO Services Group” and “Pre-eminent service” for content processing solutions

Multi-Year winner

Best 20 Leaders – Transaction Processing Services Multi-Year winner Award for Corporate Social Responsibility BPO Company of the Year 2011 International ICT Awards Non-Voice Excellence of the Year 2010 International ICT Awards Healthcare Informatics 2012 HCI 100

Multi-Sourcing Company of the Year 2009 International ICT Awards

Ranked #1 Service Provider: Print and Publishing Outsourcing Vertical, 2009 Black Book of Outsourcing


18 BreakThroughs July—September 2012 –Vol. 6 No. 2

Company News

Business Processing Association PHILIPPINES / www.bpap.org

SPi Global wins European CSR Award SPi Global, one of the world’s leading BPO companies and the largest Filipinoowned BPO company, has won the 2012 European Outsourcing Association (EOA) Award for Corporate Social Responsibility. SPi Global’s CSR program “Power to Inspire” was bestowed in June 2012 the highest honors among the many CSR programs of some of the best outsourcing companies in the world. The company’s CSR Day held in March 2012 focused on youth welfare and education, generating 20,230 volunteer hours in just one day in 16 global sites across the United States, India, the Philippines, and Vietnam. More than 8,100 children benefited from 23 outreach projects which included school rehabilitation, literacy classes, computer training, leadership training, arts and sports activities, setting up of computer

laboratories and mini-libraries, feeding programs, and other youth-centric activities. “We are so proud of this achievement because we were able to showcase our company value of malasakit to the European outsourcing community,” said SPi Global President and CEO Maulik Parekh. “We initially set a goal of 15,000 employee volunteer hours to help and inspire the youth. We were surprised by the overwhelming support we got from our employees.” Martyn Hart, European Outsourcing Association Chairman, said, “With all the targets exceeded, the judges selected SPi Global as the winner due to its excellent objective, implementation and the fact that it has clearly helped so many. They also have an innovative way of contribution by gain share to the benefit of their clients, their staff and the charities they support.”

The European Outsourcing Association Awards was held recently in London. It is the premier awards ceremony that celebrates pan-European outsourcing best practices. The event took place at the prestigious Law Society in Central London. “We have a responsibility to everyone in our communities, to get outsourcing and shared services right. Which is why these awards are so important; they celebrate best practice, they celebrate getting it right. These awards are a major initiative toward making outsourcing and shared services consistently successful,” said Hart. “The competition was tough. Some had resources that we could not match. And yet, with our simple, unique and effective approach to help the youth wherever we are in the world, we impressed the judges,” Parekh concluded.

India

Philippines

US

Vietnam

HSBC bags Shared Services Excellence of the Year award

Carlo Jose (right), Head of HSBC Service Delivery in the Philippines receives the Shared Services Excellence of the Year award.

HSBC Electronic Data Processing, Inc. (HDPP), HSBC’s Global Service Delivery (GSD) in the Philippines was conferred the Shared Services Excellence award at the 2012 International ICT Awards. Every year, the International ICT Awards draws entries from large BPO organizations including multinationals that have set up shared services operations (global in-house centers) in the country. The jury, a group of independent professionals, evaluated the winner for this category based on several criteria including: size and growth of revenue and employees; depth and breadth of competencies; diversity of services offered and clients serviced; management capabilities; involvement in corporate sustainability; and investment in the development of people, process and technologies. The award acknowledges the strength of HSBC’s Global Service Delivery in the Philippines in providing service excellence to HSBC’s customers and delivering operational excellence to the company’s global businesses. It also recognizes the opportunities for quality and global careers that HSBC opens to the local talents.

Commenting on the win, Carlo Jose, Head of HDPP, remarked, “I have been both amazed and proud of what Global Service Delivery in the Philippines has accomplished in the past 8 years, gaining a reputation of high standards in sourcing and selection, delivering great service to our customers and diversifying the kind of work that we do for the larger HSBC Group. Because of this, we have been able to provide quality career opportunities for Filipinos. Today we have over 5,700 colleagues undertaking more diverse and complex line of services covering knowledge process outsourcing, voice, and non-voice. HSBC’s global presence has also paved the way for local talents to be recognized and hold global careers within the larger HSBC group.” Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC’s international network comprises around 7,500 offices in over 80 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. HSBC provides a comprehensive range of financial services to around 89 million customers through four global

businesses: Retail Banking and Wealth Management (formerly Personal Financial Services); Commercial Banking; Global Banking and Markets; and Global Private Banking. In the Philippines, HSBC has been doing business for over 132 years. In 2004, HSBC Electronic Data Processing Inc. (HDPP) was established representing HSBC’s Global Service Delivery in the country. HDPP is an integral part of the HSBC group and offers diverse and complex line of services in the areas of Global Banking and Markets (Treasury Back Office), General Banking Operations, Credit and Risk, Security and Fraud Risk, HR Operations, Global Publishing Services, and Contact Centre–Sales and Service, Collections, Card Operations to 55 countries across 4 regions. Global Service Delivery is part of HSBC Technology and Service (HTS). HTS provides solutions which connect people, devices, and networks across the globe and combine domain expertise, process skills, and technology to deliver unparalleled business value, thereby enabling HSBC to stay ahead of competition by addressing market changes quickly and developing profitable customer relationships.

Southwoods Center to Become Home to ₱2.5-billion BPO Center and I.T. Park

SOUTHWOODS Center, located just out of the Southwoods Interchange in Biñan, Laguna, is set to become Laguna’s biggest development this coming 2013. Southwoods Center, which is a 12-hectare project out of the 75-hectare Southwoods Commercial District, will include an IT-BPO park, a strip mall, an outlet center, a lifestyle park, and residential condominium towers among other facilities. Southwoods Center is a Special Economic Zone proclaimed by the Philippine Economic Zone Authority (PEZA). A ₱2.5-billion IT center is being built for BPO locators. To maximize values for locators, the Southwoods Center will also have a 3.5-hectare lifestyle park that will have restaurants and al fresco dining. A firstof-its-kind premium outlet mall will have seven buildings all devoted to the pleasure of shopping for luxury brands at economic-zone prices. In the spirit of community, the residential area will have three condominium towers. The Sto. Niño Church and Colegio de San Agustin have already been established in the area. Splash Island Water Park bounds the PEZA zone on the south. A hospital

is also set for ground-breaking this year. During the July 25, 2012, inauguration, Southwoods Avenue, a 180-meter tunnel that directly links the Southbound exit toll gate of Southwoods Interchange to the Southwoods Golf & Country Club was also formally opened. Together with the opening of the new McDonald’s branch at Southwoods Center two weeks earlier, this signals the speeding up of developments at Southwoods Center PEZA Zone, soon making it the premiere destination for business, shopping, and entertainment in the south. With the fast-developing residential and business areas in the south, Southwoods Center becomes the most ideal location for investors and locators due to its accessibility to Metro Manila. It is situated right at the exit of Southwoods Interchange along the South Luzon Expressway (SLEX) in Biñan, Laguna, which is immediately after Susana Heights and even before the Carmona and Sta. Rosa exits, and only 20 minutes away from Makati City. With all these developments, Southwoods is definitely poised to become the South’s premiere BPO and shopping hub.

Formal Inauguration of Southwoods Center Peza Zone at the entrance of the underpass just after the Southwoods Interchange. Mayor Len-Len Alonte-Naguiat of Biñan, Laguna does the ribbon cutting with Southwoods Center chairman Robert Sobrepena and special guests. Others present include Southwoods Center board members Rafael Perez de Tagle, Freddie Campos, Wilbur Chan, Edward Dy, Alice Logarta, Fely Ong & Bobby Roco. Also present were BPAP executive director Raymond Lacdao & CCAP executive director Jojo Uliga.

Mayor Marlyn “Len-Len” Alonte Naguiat of Biñan and Robert Sobrepeña, Chairman of Southwoods Ecocentrum, cut the ribbon to inaugurate the Southwoods Center. It was blessed by Sto. Niño parish

priest Fr. Danny Dagsaan. The event was also attended by the Southwoods Ecocentrum Board of Directors led by Freddie Campos, Wilbur Chan, Rafael Perez de Tagle, Edward Dy, Alice Logarta, Fely Ong, Jojo Bondoc,

and Sylvia Hondrade, along with BPAP Executive Director Raymond Lacdao and CCAP Executive Director Jojo Uligan, Laguna local council members, and investors in the business process outsourcing industry.


Business Processing Association PHILIPPINES / www.bpap.org

Next Wave Cities

July—September 2012 –Vol. 6 No. 2 BreakThroughs 19

5th NICP National ICT Summit to Highlight Smarter City for Smarter Philippines

ENVISIONING fully sustainable and developed locations for ICTBPO industries, the National ICT Confederation of the Philippines (NICP) will launch the “Smarter City/ Countryside” campaign during the 5th NICP National ICT Summit on November 22–23 at the City of Santa Rosa, Laguna. In partnership with the local government of Sta. Rosa and the Laguna Industry Network for Knowledge, Innovation and Technology Foundation (LINKIT), this year’s summit seeks to promote countrywide ICT industry development using the concept of building smarter cities to attract balanced progress to transform the

whole Philippines into a globally competitive provider for global services. “The concept of the smarter city is to develop a whole ecosystem that will promote the use of ICT in the development of BPO companies,” LINK-IT Chair Tony Del Carmen explained. “That would mean, not only providing the infrastructure but making sure that talent development is aligned to the needs of the industry, that local government incentives are provided, and that real estate developers in the area are also cognizant of that development so that accordingly they can develop their sub-sectors, that is, the commercial sectors.”

In line with the campaign, the host city of Santa Rosa is already positioning itself by developing into a smarter city. As the site of various semiconductor industries as well as car manufacturing companies, Santa Rosa has previously been dubbed as the Silicon Valley or the Detroit of the Philippines. Likewise, major academic institutions are moving in to Metro Laguna in addition to its current slate of universities and colleges such as La Salle, Xavier, UST, STI, Lyceum, and Letran. “The biggest hurdle of the ICT industry right now is talent development and that is where Santa Rosa and Laguna is a little bit different,” said Del Carmen. “If you will look at the demographics,

CALABARZON has more population than NCR.” This year’s summit will also hold the 1st eGov Awards for local government units (LGUs) called the “Jesse Robredo Award of Excellence in ICT for Good Governance” in honor of the late DILG Secretary who was instrumental in initiating a nationwide search recognizing LGUs who have actively embraced the concept of using ICT in promoting good governance. Two of the main awards to be given include Best in eGov Customer Empowerment (G2C) Award, for an LGU’s significant contribution in the practice of applying ICT solutions in educating and engaging the public in the use of electronic facilities geared

towards improving the delivery of public services, and Best in eGov Business Empowerment (G2B) Award, for an LGU’s laudable contribution in integrating ICT solutions and the administration’s commitment in the bureau’s responsiveness to the needs of business enterprises. Among the invited speakers for the event are economist Dr. Bernardo Villegas who will tackle the economic impact of countryside development on the ICT-BPO industry and PEZA Director General Lilia De Lima who will speak on the challenge of converting industrial parks into IT parks. President Benigno S. Aquino III is expected to deliver the keynote speech.


20 BreakThroughs July—September 2012 –Vol. 6 No. 2

Company News

Business Processing Association PHILIPPINES / www.bpap.org

TELUS International Philippines Community Board Donates CAD$20,000 to Local Charities MANILA, Philippines—In February 2012, TELUS International Philippines (TIP) expanded its efforts to give back to the community with the establishment of the TIP Community Board. The TIP Community Board, chaired by Javier Infante, consists of local community leaders from various sectors of Philippine society. Its board members include Rosanna Tuason-Fores, Chief Executive Officer of Hijo Resources Corporation, president of the Tuason Development Foundation Inc. and current Barangay Chair of Forbes Park; Dr. Lourdes Carandang, retired professor, clinical psychologist and founder of MLAC Institute for Children and Families; Pacita Juan, League of Corporate Foundations member and president of the Philippine Coffee Board; Dr. Jose Maria Mariano, president of University of Asia and the Pacific; Joy Virata, director, playwright, and awardwinning actress; Jeff Uthoff, president TIP; Cris Rosenthal, vice-president TIP Human Resources; and Warren Tait, vice-president TIP Operations. In 2012, the Community Board will distribute up to CAD$100,000 to local charities, with a focus on grassroots projects in three focus areas: health and wellness, education and sports, and arts and culture. Given the recent flooding in Metro Manila and other parts of Luzon, where, in some cases, entire communities have been swept away, the Board will be allocating a substantial portion of this year’s funds to community restoration efforts. Charitable organizations who operate within the Board’s three focus areas and are involved in flood restoration efforts are invited to apply for funding from the Board.

Supporting the Arts The formal turnover of the Community Board’s first CAD$10,000 grant was held early this year at Market! Market! in Fort Bonifacio. The recipient, PHILSTAGE, is a diverse organization that has brought together such prominent groups as Actors Actors Inc. (AAI), Ballet Manila (BM), Ballet Philippines (BP), Gantimpala Theater Foundation (GANTIMPALA), Organisasyon ng Pilipinong Mang-aawit (OPM), Philippine Educational Theater Association

From left:: TELUS International Philippines (TIP) president Jeffrey Uthoff; Philippine Educational Theater Association president Cecilia Garucho; TIP vice-chairman of the board of directors and chairman of the TIP community board Javier Infante; member of the board of Repertory Philippines Joy Virata; TELUS International president Jeffrey Puritt; president of PHILSTAGE and TRUMPETS Audie Gemora; and assistant director of Wizard of Oz Rem Zamora]

(PETA), Repertory Philippines (REP), Tanghalang Pilpino (TP), and Triumphant People’s Evangelistic Theater Society, Inc. (TRUMPETS). The event saw children from the TELUS-GK Villages being exposed to the different performance and artistic groups under the PHILSTAGE umbrella. Acting, singing, and dancing workshops were given to the children who excitedly joined in the festivities. TELUS International president Jeffrey Puritt, who was visiting from Canada, attended the event, together with TELUS International president Jeffrey Uthoff, as well as members of the TIP Community Board and representatives of PHILSTAGE. “This first grant will fund up to three months of artistic activities for children from our GK villages.

These will include trips to the ballet, the children’s theater, cultural shows and workshops. PHILSTAGE will also conduct a similar follow-on project for children from flood-stricken communities,” says Javier Infante, the TELUS Community Board Chairman. “PHILSTAGE is an organization of performing arts companies,” says Joy Virata, a long-time luminary of Philippine theater and supporter of PHILSTAGE. “It is an organization of performing arts companies, not only theater. The original companies were unsubsidized professional companies. We later admitted other companies that wished to be included.” Virata said that PHILSTAGE is still open for membership to all professional performing arts companies. Asked what PHILSTAGE thought

of the grant from TIP, Virata happily stated that, “We are very happy with the grant from TIP. We view it not only as an effort to improve the quality of life for underserved children, but as a sign of support and encouragement for the uplifting of art appreciation in the Philippines.”

Rebuilding Schools in Flood-Stricken Communities The Community Board has also earmarked another CAD$10,000 to rebuild schools that have been damaged by the recent floods. TELUS has been working with the Philippine Red Cross and various local government units to identify recipients of the award and expects to release the funds within 30 days. To apply for TELUS International

Philippines Community Board funding please visit www.telus.com/community or visit www.telusinternational.com.ph.

About TELUS International Philippines TELUS International Philippines, Inc., is a leading Philippines-based provider of contact center and business process outsourcing solutions. It is a subsidiary of TELUS Communications, a national telecommunications company in Canada, with $10.4 billion of annual revenue and 12.7 million customer connections including 7.3 million wireless subscribers, 3.6 million wireline network access lines, 1.3 million Internet subscribers and more than 500,000 TELUS TV customers. For more information about TELUS International, please visit www.telusinternational.com.

AGC Networks Begins Operations in Philippines PHILIPPINES, Manila, 20 June 2012 — AGC Networks, a world class Solutions Integrator in Unified Communications, Network Integration, Data Center & Virtualization and Enterprise Applications, has expanded its global footprint to Manila by setting up operations in Philippines to cater to the domestic market and clients across various verticals. With the philosophy of Enabling Experience for its customers, AGC Networks is geared to deliver and integrate customized technology solutions in the ICT space. AGC aims to gain a strong foothold in the Philippine market where the ICT industry has shown consistent growth and is expected to grow continually. AGC Networks is confident that its suite of products and services will match the needs of the various verticals operating in the Philippine. From delivering solutions to the country’s fast-growing Business Process Outsourcing (BPO) industry AGC now aims to offer customized

solutions to various industries such as Telecommunications, Government, Manufacturing, Banking & Finance, Retail, and Small-to-medium scale enterprises. And with its local presence AGC aims to serve their clients better. Speaking about this geo expansion in the Philippines, Mr. Sanjeev Verma, President, AGC Networks said, “AGC is in a global expansion mode. We have handpicked select strategic and dynamic markets which fit our solutions portfolio and have the potential to deliver faster results. Among those, the Philippines an important market where we are expecting a great deal of action. AGC has strong alliances with over 60 Original Equipment Manufacturers (OEMs) globally. And this is what we propose to bring to the Philippine market - a strong OEM ecosystem packaged with great customized industry specific solutions with unique services. We are confident of extending our delivery capability to this market and exceeding customer expectations.”

At the launch event, it was mentioned that AGC offers solutions tailored to the specific needs of its customers across industries. With a strong alliance partnership and dedicated service orientation, AGC aims to engage with its customers at multiple levels by understanding their business requirements and integrating evolving technologies and trends in the solutions. It believes in delivering services which help customers see tangible benefits in their growth story and their endcustomer interactions. The services portfolio at AGC includes Managed Services, Deployment Services, Maintenance and Professional Services. AGC is equipped with state of the art solutions by virtue of its partnership with leading technology partners including Avaya, Cisco, Juniper, Polycom, Microsoft, Huawei, NICE, Aspect, Verint, HP, Cisco, Plantronics, Jabra, Dell among others. The collaborative Solutions resulting from these partnerships enable our

customers to focus on their business by allowing technology to become an integral aspect in making their operations more efficient.

About AGC Networks AGC Networks Ltd. (BSE: 500463 and NSE: AGCNET) is a world class Solutions Integrator in Unified Communications, Network Integration, Data Center & Virtualization and Enterprise Applications domain. AGC has been delivering customized business solutions that help organizations accelerate revenue growth, increase market penetration, optimize operating costs and improve employee productivity, by embedding technology solutions in their business processes. It has always been committed to enabling superior customer experience and offering best returns on their technology investments. It partners with global leaders like Avaya, Juniper, NICE Systems, Aspect, Verint, HP, Polycom, Cisco, NEC, Sony, Plantronics, EMC,

Dialogic, NetApp, Checkpoint and Jabra. AGC Networks is a subsidiary of Aegis Limited, an Essar Enterprise. For further details visit www. agcnetworks.com

About Aegis Aegis is a global consulting, technology, outsourcing, and training and Education Company committed to impacting clients’ business outcomes by focusing on enhancing customer experience across all touch points and channels. Aegis was founded 30 years ago in the US and now has operations in 53 locations across 12 countries with more than 55,000 employees. Aegis services 300+ clients from verticals such as Banking, Financial Services & Insurance, Technology, Telecom, Healthcare, Travel & Hospitality, Consumer Goods, Retail, and Energy & Utilities. The company is wholly owned by the Essar Group, a USD 27 billion conglomerate. For more information, visit www.aegisglobal. com


Business Processing Association PHILIPPINES / www.bpap.org

PLDT ALPHA Enterprise launches VITRO Subic WORLD-CLASS data center delivers ICT needs of North Luzon PLDT ALPHA Enterprise expands its network of worldclass data centers with the launch of VITRO Data Center Subic. Through the new Subic location, PLDT ALPHA Enterprise is set to deliver top-class, end-to-end IT infrastructure solutions to large corporations north of Luzon as well as provide Manila-based companies with a highly secure backup site for its business continuity requirements. “The launch of VITRO Subic is another step towards fulfilling PLDT ALPHA Enterprise’s role as the true trusted expert partner for building globally competitive businesses,” said Eric R. Alberto, PLDT Executive Vice President and Head of Enterprise and International & Carrier Business of PLDT & SMART. “VITRO Subic provides our enterprise customers with another data center option north of Luzon.” VITRO Subic delivers redundant and high-capacity connectivity around the globe, with a robust telecommunications infrastructure powered by PLDT.

The building employs top- of-theline systems for power supply, security, cooling, fire protection, and monitoring to ensure the smooth operation of the data center as well as the servers housed in it. VITRO Subic offers 24/7 assistance through a team of experienced technical support personnel, who can be dedicated to any account. The Subic data center carries the VITRO guarantee of security, stability and conformity to best practices and international standards. VITRO Pasig, VITRO’s main data center, is the first Internet data center in the country to be certified for the ISO 9001:2008 Quality Management System and ISO 14001:2004 Environmental Management System standards. It is also certified for the ISO 27001:2005 Information Security Management System standard. As with VITRO Pasig, VITRO Subic provides data center services such as collocation, server hosting, business continuity, facilities management, virtual private servers, data security, network management, and other managed IT services.

“VITRO’s range of services enable our clients to focus on their core business, assured that the management of their IT infrastructure is secure in our expert hands,” said PLDT Vice President and Head of ALPHA Enterprise Jovy Hernandez. For more information on the VITRO Data Center, visit www. vitro.com.ph.

At TELUS International Philippines, our team members serve as the heart of the organization.

About PLDT PLDT is the leading telecommunications service provider in the Philippines. Through its three principal business groups—fixed line, wireless, and information and communications technology— PLDT offers a wide range of telecommunications services across the Philippines’ most extensive fiber optic backbone and fixed line and cellular networks. PLDT is listed on the Philippine Stock Exchange (PSE:TEL) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE:PHI). PLDT has one of the largest market capitalizations among Philippine-listed companies.

Global Services 100 recognizes Affinity Express for the third consecutive year Greetings! CHICAGO, August 16, 2012— Affinity Express Inc., the leading multi-shore and onsite provider of high-volume marketing production for digital, print and editorial services, with hundreds of retail, marketing services, multimedia publishing and corporate clients, announced the company’s inclusion in the 2012 Global Services 100 - the third year in a row the company has been recognized. The Global Services 100 companies are chosen through a rigorous methodology that evaluates them across multiple dimensions, measured both quantitatively and qualitatively. The study presents a view of the dynamics of the most significant segments that make up the IT and business process outsourcing industry. As Global Services Editor Ed Nair noted, “The global service provider landscape is increasingly getting more complex; but buyers are looking at vendors with scale, skill or both in delivering business outcomes and not cost savings alone. The companies on the Global Services 100 list have demonstrated their ability to deliver complex solutions and services, manage global customers, and sustain successful financial performance.” Affinity Express CEO Kenneth W. Swanson commented, “The ability to lower costs while driving more revenue at higher margins has always been the rationale for using outside service providers. Financial considerations are especially critical to publishers, marketing services firms and other companies who support the evolving digital, mobile and print marketing requirements

of small- to medium-sized businesses. Partnering with Affinity Express enables our clients to deliver results to their thousands of advertisers, which would be difficult and expensive for them to achieve alone. This business process outsourcing strategy allows our clients to establish a profitable model.” In addition to the financial perspective, Swanson explained Affinity Express is seeing that enterprise-level marketers want the ability to promote their brands in multiple channels with maximum impact-without sacrificing quality and turn times. He said, “Unlike many traditional approaches to marketing production, Affinity Express allows clients to realize business outcomes by meeting the rigorous production standards of today’s complex media environment, supplying the scale and skills needed, while doing it very cost-effectively at the same time.” The Global Services 100, now in its seventh year, is a tool for buyers of business and technology services to identify and select the right vendor. The study is done under the guidance of Neogroup, a globalization advisory firm. Service providers opt-in to participate in the study that is conducted online. The GS100 analytical model is based on four key criteria: performance and leadership, quality and maturity of customers, breadth of services offered, and spread of global delivery capabilities.

About Affinity Express Affinity Express is the leading multi-shore company that is 100% dedicated to digital and print marketing production solutions. Headquartered in Chicago, Illinois, Affinity Express

has more than 1,000 employees and maintains production centers in Pune, India and Manila, Philippines. Affinity Express delivers services 24 hours per day and six days per week, executing designs in all standard industry software and tools. The service offering includes: 1) digital (e.g., display ads, videos, websites, mobile, email, social and more), 2) print (e.g., display ads, pre-media, page assembly, etc.), 3) editorial (e.g., page layout, copywriting for daily deals and directory listings, etc.), and 4) ad operations and sales support coordination. The company manages its unique production process with a continuous improvement approach based on Lean Six Sigma, so that clients receive reliable output with fast turn times for their mission-critical digital files. The comprehensive, customized marketing production solutions of Affinity Express help clients lower operational costs, generate higher profits and gain a competitive edge, without having to invest in establishing and maintaining these capabilities internally. For more information about Affinity Express, please visit www.affinityexpress.com.

The TELUS advantage TELUS International is recognized as a leader in the global contact center industry. Achievements include:  Global Services 100 list  Contact Center World’s Top Outsourcer  MVP (Marketing Via Phone) Quality Award  International ICT Awards, BPO Employer of the Year Winner (2010), Finalist (2011)

About Global Services

 NOA Contact Center Provider of the Year Finalist

Global Services is a media platform with a portfolio that includes digital magazines, website, events, newsletter, webinars, and customized solutions. Its audience consists of senior executives, sourcing professionals, technology, and functional leaders with more than 1000 large organizations mainly in North America and Europe. Global Services is owned by CyberMedia (India) Limited. For more information, visit www. globalservicesmedia.com

 Frost & Sullivan, Latin American Contact Center Outsourcing, Best Practices Award  Zagada, New Standard for Measuring Call Center and BPO Service Performance

telusinternational.com.ph TELUS_ph TELUSph


22 BreakThroughs July—September 2012 –Vol. 6 No. 2

People, Places, Events

Business Processing Association PHILIPPINES / www.bpap.org

BPAP-O2P CEO Briefing Driving Cost Efficiency, Maximizing Profitability

From left: Raymond Lacdao, Jeffrey Uthoff, Benedict Hernandez, Elmer San Pascual, Aayan Chakraborty, Mayor Sherwin Gatchalian, Gemma Cruz-Araneta, Tristan Arwen Loveres, Buddy Novenario, Julian Valenzuela, Gigi Virata, Mayor Jose Enrique Garcia

Benedict Hernandez

Jesus Zulueta

Brenda Mendoza

Julian Valenzuela, Sandy Roque, Victor Genuino


Business Processing Association PHILIPPINES / www.bpap.org

People, Places, Events

July—September 2012 –Vol. 6 No. 2 BreakThroughs 23

BPAP and Affiliates Join Children’s Hour Relief Operations CHILDREN’S Hour’s relief operations received support from major associations of the outsourcing industry. The Business Processing Association of the Philippines (BPAP), Contact Center Association of the Philippines (CCAP), Animation Council of the Philippines (ACPI), Game Developers Association of the Philippines (GDAP), Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP) and Philippine Software Industry Association (PSIA) pooled together resources that were used to purchase much-needed relief items for people displaced by the monsoon rains. Children’s Hour deployed the relief goods to different affected areas through the help of the Armed Forces of the Philippines and the Philippine Navy. The relief operations is under the Children’s Hour HAPPY TO HELP Program that calls for individuals, corporations and organizations to donate in-kind donations and services.

From left: BPAP Executive Director for Industry Affairs Raymond Lacdao and CCAP Executive Director and Corporate Secretary Jojo Uligan

From left: Chris Moriarty, Flat Planet, Dir. Pascual Arriola, Provincial Director TESDA Region IV-A, Raymond Lacdao, Zyra Rayos del Sol,TESDA Staff, Captain Ilagan of 51st Engineer Brigade, Phil Army and COL SILVINO A ALCABASA JR CE (MNSA) PA of 51st Engineer Brigade, Phil Army.



Breakthroughs July-September 2012