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Philippines sees outsourcing boom
by Staff Writers
Manila (AFP) Oct 11, 2011


The Philippines outsourcing industry will grow strongly over the next five years despite global economic concerns and threats to its call centre sector, industry officials said Tuesday.

The industry is expecting to continue its rise from nothing 10 years ago to currently the world's number-two player behind India with 600,000 workers, said Business Processing Association of the Philippines chief Alfredo Ayala.

"It may slow down, but it's still going to be double-digit growth," Ayala told reporters at an outsourcing conference in Manila.

Blessed with an English-speaking work force, the industry expects outsourcing revenues to rise at least 15 percent each year to $20 billion by 2016, when it would employ 900,000 workers, Ayala said.

He said the Philippines now accounted for 6-7 percent of the global market for all outsourced business services, second only to India's 51 percent share.

Business outsourcing covers a wide range of services, from call centres to accounting, legal work, health care and information technology.

In the call sector centre alone, the Philippines last year overtook India to have the world's biggest industry in terms of revenues and workers, largely on the back of catering to the United States and other English-speaking countries.

Foreign experts told the conference call-centre jobs would eventually decline with computer software replacing humans in such things as attending to customer complaints over merchandise.

Gillian Joyce Virata, senior executive director for the business processing association, said call centres still accounted for about 65 percent of the overall outsourcing business in the Philippines.

But she said the industry was preparing for the changes.

"The trend will continue for non-voice (roles) to grow at a faster rate. Back office, health care, creative services, and IT (information technology) are becoming quite attractive here," she said.

Trade Secretary Gregory Domingo told the conference that the outsourcing sector was now one of the country's economic pillars.

He said the industry's 2011 revenue target of 11 billion dollars would be equivalent to about 5.0 percent of the Philippines' gross domestic product.

"The contribution of this industry cannot be overstated. It's really a very big help. It has provided a very big support to the economic environment of the Philippines in the past decade," Domingo said.

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Bolivia lawmakers halt contested highway plans
La Paz (AFP) Oct 11, 2011 - Bolivian lawmakers agreed Tuesday to postpone plans to build a highway through an Amazon nature preserve after months-long mass protests from indigenous people.

The Chamber of Deputies approved President Evo Morales's decision to halt the project in order to consult with the local population in the wake of police violence against the demonstrators for which he has apologized.

The Brazil-financed road was due to run through the Isiboro Secure reserve, home to some 50,000 natives from three different indigenous groups.

These isolated groups, from the humid lowlands, are not from the main indigenous groups that make up most of Bolivia's population, the highland Andean Aymara and Quechua peoples.

The lowland people fear their traditional lands may be overrun by landless highland farmers.

Protesters left the northern city of Trinidad in mid-August and are now about 80 kilometers (50 miles) from the capital La Paz, though facing high altitude and frigid conditions that have slowed their march.

Once they have reached their destination, the protesters will have marched some 600 kilometers (370 miles).

"We should be arriving next week, Tuesday or Wednesday," march leader Miguel Charupa told AFP.

"We are not particularly in a hurry to arrive in La Paz."

He said protesters now numbered about 2,000.

A counter-protest of about 1,000 government supporters was expected Wednesday in the capital.

Chamber of Deputies president Hector Arce said halting the road project in response to the Indians demands would open the way for an "informed dialogue" with the affected communities.

But protesters ignored the parliamentary vote, just as they have rejected the proposal from Morales. They demand that the project be canceled, not just postponed.

Work on the highway, which had been due to be operational in 2014, began in June, though not on the segment running through the reserve.



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TRADE WARS
China, Russia ink deals worth over $7bln
Beijing (AFP) Oct 11, 2011
China said Tuesday it had signed trade and economic deals worth more than $7 billion with Russia, ahead of Prime Minister Vladimir Putin's planned visit to Beijing. Putin is due to arrive Tuesday with a 160-member delegation for a two-day trip - his first foreign visit since he declared a planned Kremlin comeback - during which he will meet his counterpart Wen Jiabao and President Hu Jinta ... read more


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