Business process outsourcing in the Philippines
One of the most dynamic and fastest growing sectors in the Philippines is the information technology–business process outsourcing industry. The industry is composed of eight sub-sectors, knowledge process outsourcing and back offices, call centers, software development, game development, engineering design, medical transcription; the IT-BPO industry plays a major role in the country's development. The IT-BPO industry started from a single contact center, the Accenture Global Resource Center, founded by Frank Holz in 1992; this marked the beginning of the local BPO industry in the country. In 1995, the Special Economic Zone Act, thus establishing the Philippine Economic Zone Authority, was passed by the Philippine Congress; this Act provided lower area requirements for developments and tax incentives, which attracted foreign investors. In 2001, a US-Based outsourcing center called the "People Support" had its operations moved to the Philippines, generating 8,400 jobs for the country. In 2003, the Convergys Corporation opened up two more call centers in the Philippines.
It was at that time when Jack Freker, the president of Convergys Corporation, announced the incorporation of the Philippines in the revenue generation plan and the global expansion of the company. In 2005, accounting for 2.4% of the country's GDP, the Philippine acquired over 3% of the global BPO market. A year after, with ePLDT Ventus leading in the BPO industry, domestic economy increased by 5.4% and 11,000 more people were employed. In 2010, the Philippines was declared the world's BPO capital. From this point, the BPO industry continued to grow and generate more revenue, with the industry providing the most job opportunities in the private sector. Since the 1980s, unemployment rate stayed between 8-11% in the Philippines. If the economy did have some growth, there was always the problem of job generation; the BPO industry has the most substantial contribution to economic growth, yet it only employs 1% of the labor force. The MTPDP has set a target to create "1.5 million jobs a year between 2004 and 2010, or a total of 10 million jobs by 2010."
Though the government came short of this success, in 2006 the government was able to identify nine employment-generating factors and these are cyber services, agribusiness, health services, creative industries and restaurants, medical tourism and overseas employment. The BPO sector only accounted for 0.075% of the GDP in 2000 but rose to 2.4% in 2005 which indicated a great potential for generating employment. In this sector alone, it reached a staggering one million workers by 2010 and accounted for 27% of all new jobs. Due to the lower cost of producing specific goods or services in another country, outsourcing has become a common business strategy for many multinational firms. There are two common practices of outsourcing and these are using third party outsourcing or a captive market; these two differ based on the level of risk management, cost effectiveness or the need for managerial control. In the Philippines Captive Markets seem to be gaining some growth although the economic landscape still has third party holding the majority industry presence.
This is due to the fact that in recent cases of crises there have been observations on positive growth for third party outsourcing firms as opposed to captive markets. This event lead to the perception of captive markets as being less efficient than that of third party outsourcing; this is used for business activities with irregular frequencies or one-off projects. The usual costing method makes use of time and material costs as variable costs and the fixed costs This is used in business cases when there are hanging requirements. In this specific model it could be used for some long-term goals for developing technology or software; this is preferred when resource requirements are lower in the outsourced country than the home country hence developing a comparative advantage. The customers are charged for fixed fees; this set up is preferred when core or crucial business activities are needed to be run at cheaper costs. The rationale for employing such a setup is to cater to long term strategic plans involving high managerial control.
In this case there are two major ways of setting up a captive market and these are the DIY or'Start From Scratch' model and the Build Operate Transfer model. This way, the business practices and operations are still run within and by the firm which mitigates risk of disclosure of sensitive information. In the Philippines you have examples of these set ups such as American Express, JP Morgan, Wells Fargo and the growing Capital One which are both American based multinational companies; the usual flow is for the company to develop all its resources in the new designated area or country of operations. This involves the beginning of the model, the purchasing of property and equipment and due diligence lasts up to the point of running the BPO center itself; the acquisition of property and equipment is done by contacting a third party liaison in the country of operation. This model is preferred by the companies. In this model, the practice is to contact a 3rd party vendor in order to develop a contract in which the vendor is the one who develops the property, sources the employees and manages the BPO center for the first designated period or amount of time.
After which the company who contracted the vendor takes over the operations. The common practice is to have managerial and training staff of the company join at some midpoint of the period of the vendor's development to have specialize
Education is the process of facilitating learning, or the acquisition of knowledge, values and habits. Educational methods include storytelling, teaching and directed research. Education takes place under the guidance of educators and learners may educate themselves. Education can take place in formal or informal settings and any experience that has a formative effect on the way one thinks, feels, or acts may be considered educational; the methodology of teaching is called pedagogy. Formal education is divided formally into such stages as preschool or kindergarten, primary school, secondary school and college, university, or apprenticeship. A right to education has been recognized by the United Nations. In most regions, education is compulsory up to a certain age. Etymologically, the word "education" is derived from the Latin word ēducātiō from ēducō, related to the homonym ēdūcō from ē- and dūcō. Education began in prehistory, as adults trained the young in the knowledge and skills deemed necessary in their society.
In pre-literate societies, this was achieved orally and through imitation. Story-telling passed knowledge and skills from one generation to the next; as cultures began to extend their knowledge beyond skills that could be learned through imitation, formal education developed. Schools existed in Egypt at the time of the Middle Kingdom. Plato founded the Academy in the first institution of higher learning in Europe; the city of Alexandria in Egypt, established in 330 BCE, became the successor to Athens as the intellectual cradle of Ancient Greece. There, the great Library of Alexandria was built in the 3rd century BCE. European civilizations suffered a collapse of literacy and organization following the fall of Rome in CE 476. In China, Confucius, of the State of Lu, was the country's most influential ancient philosopher, whose educational outlook continues to influence the societies of China and neighbours like Korea and Vietnam. Confucius gathered disciples and searched in vain for a ruler who would adopt his ideals for good governance, but his Analects were written down by followers and have continued to influence education in East Asia into the modern era.
The Aztecs had a well-developed theory about education, which has an equivalent word in Nahuatl called tlacahuapahualiztli. It means "the art of raising or educating a person" or "the art of strengthening or bringing up men." This was a broad conceptualization of education, which prescribed that it begins at home, supported by formal schooling, reinforced by community living. Historians cite that formal education was mandatory for everyone regardless of social class and gender. There was the word neixtlamachiliztli, "the act of giving wisdom to the face." These concepts underscore a complex set of educational practices, oriented towards communicating to the next generation the experience and intellectual heritage of the past for the purpose of individual development and his integration into the community. After the Fall of Rome, the Catholic Church became the sole preserver of literate scholarship in Western Europe; the church established cathedral schools in the Early Middle Ages as centres of advanced education.
Some of these establishments evolved into medieval universities and forebears of many of Europe's modern universities. During the High Middle Ages, Chartres Cathedral operated the famous and influential Chartres Cathedral School; the medieval universities of Western Christendom were well-integrated across all of Western Europe, encouraged freedom of inquiry, produced a great variety of fine scholars and natural philosophers, including Thomas Aquinas of the University of Naples, Robert Grosseteste of the University of Oxford, an early expositor of a systematic method of scientific experimentation, Saint Albert the Great, a pioneer of biological field research. Founded in 1088, the University of Bologne is considered the first, the oldest continually operating university. Elsewhere during the Middle Ages, Islamic science and mathematics flourished under the Islamic caliphate, established across the Middle East, extending from the Iberian Peninsula in the west to the Indus in the east and to the Almoravid Dynasty and Mali Empire in the south.
The Renaissance in Europe ushered in a new age of scientific and intellectual inquiry and appreciation of ancient Greek and Roman civilizations. Around 1450, Johannes Gutenberg developed a printing press, which allowed works of literature to spread more quickly; the European Age of Empires saw European ideas of education in philosophy, religion and sciences spread out across the globe. Missionaries and scholars brought back new ideas from other civilizations – as with the Jesuit China missions who played a significant role in the transmission of knowledge and culture between China and Europe, translating works from Europe like Euclid's Elements for Chinese scholars and the thoughts of Confucius for European audiences; the Enlightenment saw the emergence of a more secular educational outlook in Europe. In most countries today, full-time education, whether at school or otherwise, is compulsory for all children up to a certain age. Due to this the proliferation of compulsory education, combined with population growth, UNESCO has calculated that in the next 30 years more people will receive formal education than in all of human history thus far.
Formal education occurs in a structured environment. Formal education takes place in a school environme
E-commerce is the activity of buying or selling of products on online services or over the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange, inventory management systems, automated data collection systems. Modern electronic commerce uses the World Wide Web for at least one part of the transaction's life cycle although it may use other technologies such as e-mail. Typical e-commerce transactions include the purchase of online books and music purchases, to a less extent, customized/personalized online liquor store inventory services. There are three areas of e-commerce: online retailing, electric markets, online auctions. E-commerce is supported by electronic business. E-commerce businesses may employ some or all of the followings: Online shopping for retail sales direct to consumers via Web sites and mobile apps, conversational commerce via live chat and voice assistants Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales Business-to-business buying and selling.
A timeline for the development of e-commerce: 1971 or 1972: The ARPANET is used to arrange a cannabis sale between students at the Stanford Artificial Intelligence Laboratory and the Massachusetts Institute of Technology described as "the seminal act of e-commerce" in John Markoff's book What the Dormouse Said. 1979: Michael Aldrich demonstrates the first online shopping system. 1981: Thomson Holidays UK is the first business-to-business online shopping system to be installed. 1982: Minitel was introduced nationwide in France by France Télécom and used for online ordering. 1983: California State Assembly holds first hearing on "electronic commerce" in Volcano, California. Testifying are CPUC, MCI Mail, CompuServe, Volcano Telephone, Pacific Telesis. 1984: Gateshead SIS/Tesco is first B2C online shopping system and Mrs Snowball, 72, is the first online home shopper 1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.
1989: In May 1989, Sequoia Data Corp. Introduced Compumarket, the first internet based system for e-commerce. Sellers and buyers could post items for sale and buyers could search the database and make purchases with a credit card. 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer. 1992: Book Stacks Unlimited in Cleveland opens a commercial sales website selling books online with credit card processing. 1993: Paget Press releases edition No. 3 of the first app store, The Electronic AppWrapper 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Netscape 1.0 is introduced in late 1994 with SSL encryption. 1994: Ipswitch IMail Server becomes the first software available online for sale and immediate download via a partnership between Ipswitch, Inc. and OpenMarket. 1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase through NetMarket. 1995: The US National Science Foundation lifts its former strict prohibition of commercial enterprise on the Internet.
1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager for CompuServe UK, from W H Smith's shop within CompuServe's UK Shopping Centre is the UK's first national online shopping service secure transaction. The shopping service at launch featured W H Smith, Virgin Megastores/Our Price, Great Universal Stores, Dixons Retail, Past Times, PC World and Innovations. 1995: Jeff Bezos launches Amazon.com and the first commercial-free 24-hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. EBay is founded by computer programmer Pierre Omidyar as AuctionWeb. 1996: The use of Excalibur BBS with replicated "Storefronts" was an early implementation of electronic commerce started by a group of SysOps in Australia and replicated to global partner sites. 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web. 1999: Alibaba Group is established in China. Business.com sold for US $7.5 million to eCompanies, purchased in 1997 for US $149,000.
The peer-to-peer filesharing software Napster launches. ATG Stores launches to sell decorative items for the home online. 1999: Global e-commerce reaches $150 billion 2000: The dot-com bust. 2001: Alibaba.com achieved profitability in December 2001. 2002: eBay acquires PayPal for $1.5 billion. Niche retail companies Wayfair and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal. 2003: Amazon.com posts first yearly profit. 2004: DHgate.com, China's first online b2b transaction platform, is established, forcing other b2b sites to move away from the "yellow pages" model. 2007: Business.com acquired by R. H. Donnelley for $345 million. 2014: US e-commerce and Online Retail sales projected to reach $294 billion, an increase of 12 percent over 2013 and 9% of all retail sales. Alibaba Group has the largest Initial public offering worth $25 billion. 2015: Amazon.com accounts for more than half of all e-commerce
A travel agency is a private retailer or public service that provides travel and tourism related services to the public on behalf of suppliers such as activities, car rentals, cruise lines, railways, travel insurance, package tours. In addition to dealing with ordinary tourists, most travel agencies have a separate department devoted to making travel arrangements for business travelers. There are travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located; the modern travel agency first appeared in the second half of the 19th century with its root in 1758 as establishment of Cox & Kings Ltd. In the year 1970, Cox & Kings the longest established travel company centered its focus on its business of travel and tourism. Thomas Cook established a chain of agencies in the last quarter of the 19th century, in association with the Midland Railway, they not only in addition, represented other tour companies.
Other British pioneer travel agencies were Dean & Dawson, the Polytechnic Touring Association, the Co-operative Wholesale Society. The oldest travel agency in the United States is Brownell Travel. Travel agencies became more commonplace with the development of commercial aviation, starting in the 1920s. Travel agencies catered to middle and upper class customers, but the post-war boom in mass-market package holidays resulted in the proliferation of travel agencies on the main streets of most British towns, catering to a working class clientele looking for a convenient way to book overseas beach holidays. A travel agency's main function is to act as an agent, selling travel products and services on behalf of a supplier. Unlike other retail businesses, they do not keep a stock in hand, unless they have pre-booked hotel rooms and/or cabins on a cruise ship for a group travel event such as a wedding, honeymoon, or a group event. A package holiday or a ticket is not purchased from a supplier unless a customer requests that purchase.
The holiday or ticket is supplied to the agency at a discount. The profit is therefore the difference between the advertised price which the customer pays and the discounted price at which it is supplied to the agent; this is known as the commission. In many countries, all individuals or companies that sell tickets are required to be licensed as a travel agent. In some countries, airlines have stopped giving commissions to travel agencies. Therefore, travel agencies are now forced to charge a percentage premium or a standard flat fee, per sale. However, some companies pay travel agencies a set percentage for selling their product. Major tour companies can afford to do this, because if they were to sell a thousand trips at a cheaper rate, they would still come out better than if they sold a hundred trips at a higher rate; this process benefits both parties. It is cheaper to offer commissions to travel agents rather than engage in advertising and distribution campaigns without using agents. Other commercial operations are undertaken by the larger chains.
These can include the sale of in-house insurance, travel guide books, public transport timetables, car rentals, the services of an on-site bureau de change, dealing in the most popular holiday currencies. A travel agent is supposed to offer impartial travel advice to the customer, as well as coordinating travel details and assisting the customer in booking travel. However, this function disappeared with the mass market package holiday, some agency chains seemed to develop a "holiday supermarket" concept, in which customers choose their holiday from brochures on racks and book it from a counter. Again, a variety of social and economic changes have now contrived to bring this aspect to the fore once more with the advent of multiple, no-frills, low-cost airlines. Traditionally, travel agencies' principal source of income was, continues to be, commissions paid for bookings of car rentals, cruise lines, railways, sightseeing tours, tour operators, etc. A fixed percentage of the main element of the price is paid to the agent as a commission.
Commissions may vary depending on the type of the supplier. Commissions are not paid on the tax component of the price. Travel agencies receive a large variety of bonuses and other incentives from travel and tourism related companies as inducements for travel agents to promote their products; the customer is not made aware of how much the travel agent is earning in commissions and other benefits. Other sources of income may include the sale of insurance, travel guide books, public transport timetables and money exchange. Since 1995, many airlines around the world and most airlines in the United States now do not pay any commission to travel agencies. In this case, an agency adds a service fee to the net price. Reduced commissions started in 1995 in the United States, with the introduction of a cap of $50 on return trips and $25 on one way. In 1999, European airlines began eliminating or reducing commissions, while Singapore Airlines did so in parts of Asia. In 2002, Delta Air Lines announced a zero-commission base for the U.
S. and Canada. The majority of travel agents have felt the need to protect themselves and their clients against the possibilities of commercial failure, either their own or a supplier's, they will
Bacolod City of Bacolod and referred to as Bacolod City, is a urbanized city in the Philippines. It is the capital of the province of Negros Occidental where it is geographically situated but governed administratively independent from it. Having a total of 561,875 inhabitants as of the 2015 census, it is the most populous city in Western Visayas and the second most populous city in the Visayas after Cebu City, it is the center of the Bacolod Metropolitan Area, which includes the cities of Silay and Talisay with a total population of 791,019 inhabitants, along with a total area of 578.65 km2. It is notable for its Maskara Festival held during the third week of October and is known for being a friendly city, as it bears the nickname "The City of Smiles"; the city is famous for its local delicacies piaya and chicken inasal. In 2008, Bacolod topped a survey by MoneySense Magazine as the "Best Place to Live in the Philippines"; the city has been declared by the Department of Science and Technology as a "center of excellence" for information technology and business process management operations.
In 2017, Bacolod was awarded as the "Top Philippine Model City" by The Manila Times. Bacólod, is derived from bakólod, the Old Hiligaynon word for a "hill, rise, down, any small eminence or elevation", since the resettlement was founded on a stony, hilly area, now the barangay of Granada, it was called Ciudad de Bacólod when Municipalidad de Bacólod was converted into a city in 1938. Historical church accounts provide a glimpse of the early years of Bacolod as a mere small settlement by the riverbank known as Magsungay; when the neighboring settlement of Bago was elevated into the status of a small town in 1575, it had several religious dependencies and one of, the village of Magsungay. The early missionaries placed the village under the care and protection of Saint Sebastian sometime in the middle of the 18th century. A corregidor by the name of Luis Fernando de Luna, donated a relic of the saint for the growing mission, since the village came to be known as San Sebastián de Magsung̃ay. Bacolod was not established as a town until 1755 or 1756, after the inhabitants of the coastal settlement of San Sebastián de Magsung̃ay, were attacked by forces under Datu Bantílan of Sulu on July 14, 1755 and the villagers transferred from the coast to a hilly area called Bacólod.
Bernardino de los Santos became the first gobernadorcillo. The town of Bacolod was constituted as a parroquia in 1788 under the secular clergy, but did not have a resident priest until 1802, as the town was served by the priest from Bago, Binalbagan. By 1790, slave raids on Bacolod by Moro pirates had ceased. On 11 February 1802, Fr. Eusebio Laurencio became acting parish priest of Bacolod. In September 1806, Fr. León Pedro was appointed interim parish priest and the following year became the first regular parish priest. In September 1817, Fray Julián Gonzaga from Barcelona was appointed as the parish priest, he encouraged the people to settle once again near the sea. He encouraged migration to Bacolod and the opening of lands to agriculture and industry. In 1846, upon the request of Romualdo Jimeno, bishop of Cebu and Negros at that time, Governor-General Narciso Clavería y Zaldúa sent to Negros a team of Recollect missionaries headed by priest Fernando Cuenca. A decree of 20 June 1848 by Gobernador General Clavería ordered the restructuring of Negros politically and religiously.
The following year, Negros Island Gobernadorcillo Manuel Valdevieso y Morquecho transferred the capital of the Province of Negros from Himamaylan to Bacolod and the Augustinian Recollects were asked to assume spiritual administration of Negros, which they did that same year. Transfer of Bacolod to the Recollects, took place only in 1871. Fray Mauricio Ferrero became the first Augustinian Recollect parish priest of Bacolod and successor to the secular priest, Fr. Mariano Ávila. In 1863, a compulsory primary public school system was set up. In 1889, Bacolod became the capital of Occidental Negros when the Province of Negros was politically divided into the separate provinces of Occidental Negros and Oriental Negros; the success of the uprising in Bacolod and environs was attributed to the low morale of the local imperial Spanish detachment, due to its defeat in Panay and Luzon and to the psychological warfare waged by Generals Aniceto Lacson and Juan Araneta. In 1897, a battle in Bacolod was fought at Matab-ang River.
A year on November 5, 1898, the Negrense Revolucionarios, armed with knives, bolos and rifle-like nipa palm stems, pieces of sawali or amakan mounted on carts, captured the convent, presently Palacio Episcopal, where Colonel Isidro de Castro y Cisneros, well-armed cazadores and platoons of Guardias Civiles, surrendered. On 7 November 1898, most of the revolutionary army gathered together to establish a provisional junta and to confirm the elections of Aniceto Lacson as president, Juan Araneta as war-delegate, as well as the other officials. For a brief moment, the provinces of Occidental Negros and Oriental Negros were reunited under the cantonal government of the Negrense Revolucionarios, from 6 November 1898 to the end of February 1899, making Bacolod t
Technical support refers to services that entities provide to users of technology products or services. In general, technical support provide help regarding specific problems with a product or service, rather than providing training, provision or customization of product, or other support services. Most companies offer technical support for the services or products they sell, either included in the cost or for an additional fee. Technical support may be delivered over by phone, e-mail, live support software on a website, or other tool where users can log an incident. Larger organizations have internal technical support available to their staff for computer-related problems; the Internet can be a good source for available tech support, where experienced users help users find solutions to their problems. In addition, some fee-based service companies charge for premium technical support services. Technical support may be delivered by different technologies depending on the situation. For example, direct questions can be addressed using telephone calls, SMS, Online chat, Support Forums, E-mail or Fax.
This type of technical support has been common in the services industry. It is known as "Time and Materials" IT support; the customer pays for the materials and pays the technician based on the pre-negotiated rate when a problem occurs. Block hours allow the client to purchase a number of hours upfront at an agreed price. While it is used to offer a reduced hourly rate, it can simply be a standard non-reduced rate, or represent a minimum fee charged to a client before providing service; the premise behind this type of support is that the customer has purchased a fixed number of hours to use either per month or year. This allows them the flexibility to use the hours as they please without doing the paperwork and the hassle of paying multiple bills. Managed services means a company will receive a list of well-defined services on an ongoing basis, with well-defined "response and resolution times" for a fixed rate or a flat fee; this can include things like 24/7 monitoring of servers, 24/7 help desk support for daily computer issues, on-site visits by a technician when issues cannot be resolved remotely.
Some companies offer additional services like project management and disaster recovery, vendor management in the monthly price. The companies that offer this type of tech support are known as managed services providers. Many companies and organizations provide discussion boards for users of their products to interact. All tech brands and service providers give free access to a rich library of technical support solutions to users; these are huge databases of step-by-step solutions, however if you visit the support sites for big brands the solutions are more for their products alone. Another method of getting technical support that’s gained popularity is to follow troubleshooting steps shown in a support video. With the increasing use of technology in modern times, there is a growing requirement to provide technical support. Many organizations locate their technical support departments or call centers in countries or regions with lower costs. Dell was amongst the first companies to outsource their technical support and customer service departments to India in 2001.
There has been a growth in companies specializing in providing technical support to other organizations. These are referred to as MSPs. For businesses needing to provide technical support, outsourcing allows them to maintain a high availability of service; such need may result from peaks in call volumes during the day, periods of high activity due to introduction of new products or maintenance service packs, or the requirement to provide customers with a high level of service at a low cost to the business. For businesses needing technical support assets, outsourcing enables their core employees to focus more on their work in order to maintain productivity, it enables them to utilize specialized personnel whose technical knowledge base and experience may exceed the scope of the business, thus providing a higher level of technical support to their employees. Technical support is subdivided into tiers, or levels, in order to better serve a business or customer base; the number of levels a business uses to organize their technical support group is dependent on a business' needs regarding their ability to sufficiently serve their customers or users.
The reason for providing a multi-tiered support system instead of one general support group is to provide the best possible service in the most efficient possible manner. Success of the organizational structure is dependent on the technicians' understanding of their level of responsibility and commitments, their customer response time commitments, when to appropriately escalate an issue and to which level. A common support structure revolves around a three-tiered technical support system. Tier 0 is in the form of "wikis" or FAQs that allow for users to access and resolve information on their own rather than have to contact a local Helpdesk or Service Desk for resolution. Tier I is the initial support level responsible for basic customer issues, it is synonymous with first-line support, level 1 support, front-end support, support line 1, various other headings denoting basic level technical support functions. Th