/images/rss.gif)
/images/header.png)
Philippines Packing Tips
March 2, 2011 by Anita
Filed under Travel And Leisure
Jason Martin asked:
If you’ve traveled at all, you know that packing for a trip can be time consumer and perhaps a worrisome ordeal. If you’re traveling a far distance, to some exotic land, the pressure really cranks up.
But, fear not. Today, I’ll give you a list of items you should think about packing for your next excursion to the Philippines. The last thing anyone wants is to being a vacation on a bad note. One pre-visit tip is to check the climate for the area(s) you’ll be visiting. The Philippines is a tropical paradise, but the climate changes from region to region.
Here’s a quick list of some good items to bring on your Philippines vacation:
1. Lightweight cotton shirts (to be comfortable).
2. Tank tops (again, comfort is key).
3. Shorts & jeans (mixture for climate and activity changes).
4. Camera with extra memory cards (capture everything).
5. Power adapter
6. Insect repellant (especially if you require a specific type/brand).
7. Sunglasses
8. Tagalog phrase book or cheat sheet.
I’d also recommend brining an extra suitcase, so you have plenty of room for souvenirs. You’ll definitely want to bring stuff home with you. In the Philippines, they call gift items “pasalubongs.”
While most Filipinos speak English (less in the more remote parts), knowing just a handful of key phrases in Tagalog (their language) will help you blend in more (they’ll appreciate it) and you’ll be able to navigate better. There’s no need to learn the whole language, but bring at least a sheet with 15-20 phrases/words on it.
Caffeinated Content
If you’ve traveled at all, you know that packing for a trip can be time consumer and perhaps a worrisome ordeal. If you’re traveling a far distance, to some exotic land, the pressure really cranks up.
But, fear not. Today, I’ll give you a list of items you should think about packing for your next excursion to the Philippines. The last thing anyone wants is to being a vacation on a bad note. One pre-visit tip is to check the climate for the area(s) you’ll be visiting. The Philippines is a tropical paradise, but the climate changes from region to region.
Here’s a quick list of some good items to bring on your Philippines vacation:
1. Lightweight cotton shirts (to be comfortable).
2. Tank tops (again, comfort is key).
3. Shorts & jeans (mixture for climate and activity changes).
4. Camera with extra memory cards (capture everything).
5. Power adapter
6. Insect repellant (especially if you require a specific type/brand).
7. Sunglasses
8. Tagalog phrase book or cheat sheet.
I’d also recommend brining an extra suitcase, so you have plenty of room for souvenirs. You’ll definitely want to bring stuff home with you. In the Philippines, they call gift items “pasalubongs.”
While most Filipinos speak English (less in the more remote parts), knowing just a handful of key phrases in Tagalog (their language) will help you blend in more (they’ll appreciate it) and you’ll be able to navigate better. There’s no need to learn the whole language, but bring at least a sheet with 15-20 phrases/words on it.
Caffeinated Content
Cebu; Central Visayan Metropolis – Philippines
Peter Garant asked:
Region 7 in the Philippines is characterized as central Visayas with places such as Dumaguete, Bohol, Siquijor and most importantly Cebu. Cebu is one of the biggest cities in the Visayas and it is the ultimate trade city of the south. Cebu is the oldest city in the Philippines and has the only International Airport in the Visayas which makes Cebu an important metropolis in the Visayas.
The native language of the Philippines is Tagalog, but the native language of Cebu is Cebuano, which is also spoken in other places such as Bohol, Leyte, Negros Oriental and parts of Mindanao. Every city in the Philippines has a patron saint and the patron saint of Cebu happens to be Our Lady of Guadalupe. There are many religious events in Cebu and the saint that is widely used by the natives is Santo Niño de Cebu. A whole festival is dedicated to him, called the Sinulog which is celebrated every January with street shows and dances.
Cebu is the center of economic activity in the central Visayas. The total investments, export and import of Cebu city totals an amount of an estimated 10 Million US dollars, which makes Cebu a powerful metropolis. Cebu has big industries including electronic, computer, food processing and most importantly mining and shipping industries. When you take a bus to Cebu city you will see the big coal mines near the sea and you will even drive underneath a mining company that is situated alongside the highway. Most of the shipping industries are located in Cebu which makes this metropolis the most and easiest accessible city in the Philippines. National and International shipping is going through Cebu and the city earns millions just from the shipping taxes and toll taxes.
Other multimillion business chances can be found in the Mactan International Airport at Mactan City, Cebu. This International Airport gives access to all the trade opportunities in Asia, Europe and the US. Cebu is also the home of the International Convention Center in which the 12th ASEAN summit has been held where world leaders congregated. This shows that Cebu is already the international metropolis that it should be. The education in Cebu is also very international. The first International Academy of Film and Television has been established in Mactan, Cebu in 2004 and is the only international film school in the Central Visayas.
The central Visayas also have a big network of print media and broadcasting media. Cebu itself has three local newspapers that are published daily and several other little tabloids and community newspapers. Broadcasting outlets are also numerous in the queen city of the south. Cebu has three television stations that can be accessed through cable and a total of 23 radio stations with 13 AM radio stations and 20 FM radio stations. This is just another proof that Cebu City is not only the oldest city in the Philippines, but also one of the richest and economically stronger cities in the Philippines.
You can also find many historical monuments in this central Visayan city. One of the most important and often visited monuments is the Magellan’s Cross. Magellan’s Cross can be found in a small chapel that is located next to the Basilica Minore del Santo Niño, which is fronting Cebu’s city hall. Cebu has something for everybody; good food, great malls for shopping, and monuments for your cultural desires. Cebu will be unlike any other city you can visit in the Central Visayas.
Region 7 in the Philippines is characterized as central Visayas with places such as Dumaguete, Bohol, Siquijor and most importantly Cebu. Cebu is one of the biggest cities in the Visayas and it is the ultimate trade city of the south. Cebu is the oldest city in the Philippines and has the only International Airport in the Visayas which makes Cebu an important metropolis in the Visayas.
The native language of the Philippines is Tagalog, but the native language of Cebu is Cebuano, which is also spoken in other places such as Bohol, Leyte, Negros Oriental and parts of Mindanao. Every city in the Philippines has a patron saint and the patron saint of Cebu happens to be Our Lady of Guadalupe. There are many religious events in Cebu and the saint that is widely used by the natives is Santo Niño de Cebu. A whole festival is dedicated to him, called the Sinulog which is celebrated every January with street shows and dances.
Cebu is the center of economic activity in the central Visayas. The total investments, export and import of Cebu city totals an amount of an estimated 10 Million US dollars, which makes Cebu a powerful metropolis. Cebu has big industries including electronic, computer, food processing and most importantly mining and shipping industries. When you take a bus to Cebu city you will see the big coal mines near the sea and you will even drive underneath a mining company that is situated alongside the highway. Most of the shipping industries are located in Cebu which makes this metropolis the most and easiest accessible city in the Philippines. National and International shipping is going through Cebu and the city earns millions just from the shipping taxes and toll taxes.
Other multimillion business chances can be found in the Mactan International Airport at Mactan City, Cebu. This International Airport gives access to all the trade opportunities in Asia, Europe and the US. Cebu is also the home of the International Convention Center in which the 12th ASEAN summit has been held where world leaders congregated. This shows that Cebu is already the international metropolis that it should be. The education in Cebu is also very international. The first International Academy of Film and Television has been established in Mactan, Cebu in 2004 and is the only international film school in the Central Visayas.
The central Visayas also have a big network of print media and broadcasting media. Cebu itself has three local newspapers that are published daily and several other little tabloids and community newspapers. Broadcasting outlets are also numerous in the queen city of the south. Cebu has three television stations that can be accessed through cable and a total of 23 radio stations with 13 AM radio stations and 20 FM radio stations. This is just another proof that Cebu City is not only the oldest city in the Philippines, but also one of the richest and economically stronger cities in the Philippines.
You can also find many historical monuments in this central Visayan city. One of the most important and often visited monuments is the Magellan’s Cross. Magellan’s Cross can be found in a small chapel that is located next to the Basilica Minore del Santo Niño, which is fronting Cebu’s city hall. Cebu has something for everybody; good food, great malls for shopping, and monuments for your cultural desires. Cebu will be unlike any other city you can visit in the Central Visayas.
Dating Filipina Cebuanas From Cebu Philippines
Filipina Kisses asked:
Do you want to date a Filipina Cebuana from Cebu, Philippines? If your Filipina girl lives in Cebu Island, one of the Visayas Islands, then your Filipina woman is a Cebuana.
“Cebuanas” is a term used for Filipina girls and Filipina women who grew up and recognize Cebu as their province. While “Bisaya” is a general term used for people living in most of the other Visayas islands and in Mindanao Island.
Cebu is one of the provinces of the Philippines. Cebu Island is a typical tropical island with narrow coastlines, limestone plateaus, and coastal plains. Cebuano is the native language spoken by the inhabitants of Cebu, Bohol, eastern part of Negros island, western parts of Leyte and Biliran islands, and southern third of Masbate island. It is also spoken in a few towns and islands in Samar. Cebuano has the most number of native speakers than Tagalog. In Bohol Island, the people are Boholanos and the local language is Bol-anon.
The language spoken throughout the most of Mindanao Island is known as Bisaya. Bisaya language is very similar to Cebuano language and is spoken by many people in Mindanao Island.
There are many beautiful Filipina women, calling themselves as “Cebuanas” living in Cebu. So, how do you court a Filipina Cebuana woman? There are many different ways of course, and Filipina Cebuanas are no different from other Filipina women. They want to be wooed and courted with gifts and loving phrases.
Here are some Filipina dating phrases in the Cebuano language. You can use it to court the Filipina Cebuana woman who lives in Cebu, Philippines!
These Filipina dating phrases are the same phrases you can also use to court Filipina Bisaya women living in most of Mindanao, particularly in Northern Mindanao, Central Mindanao and Southern Mindanao. You can find many beautiful Filipina Bisaya women from Mindanao who are beautiful, educated, and much more old fashioned in their ways than the Filipina Cebuana women who mostly grew up in the city of Cebu.
1) I like you – “Gusto ka nako”
2) I like you very much – “Nakagusto jud ko sa imo”
3) I have a crush on you – “Naka-crush ko sa imo”
4) Take care – “Pag-amping”
5) You take care – “Mag-amping ka ha”
6) I think about you – “Nag-hunahuna ko sa imo”
7) I think about you all the time – “Pirme ko gahunahuna sa imo”
I dream about you – “Nagdamgo ko sa imo”
9) I miss you – “Miss nako ka”
10) I miss you very much – “Miss na miss jud nako ka”
11) I am in love you – “Gihigugma ko ikaw”
12) You are the only one I love – “Ikaw lang ang akong gihigugma”
13) I love you – “Nahigugma ko nimo”
14) I love you very much – “Gugmahan kaayo ko nimo”
15) I want to marry you – “Gusto nako ka pakaslan”
The Cebuano language or Bisaya language can have many other versions and different arrangements of the words used, but the meaning is the same. Each version depends on the situation of the moment the endearment is spoken. Meet Cebuanas from Cebu Island, register in www.FilipinaKisses.com.
Do you want to date a Filipina Cebuana from Cebu, Philippines? If your Filipina girl lives in Cebu Island, one of the Visayas Islands, then your Filipina woman is a Cebuana.
“Cebuanas” is a term used for Filipina girls and Filipina women who grew up and recognize Cebu as their province. While “Bisaya” is a general term used for people living in most of the other Visayas islands and in Mindanao Island.
Cebu is one of the provinces of the Philippines. Cebu Island is a typical tropical island with narrow coastlines, limestone plateaus, and coastal plains. Cebuano is the native language spoken by the inhabitants of Cebu, Bohol, eastern part of Negros island, western parts of Leyte and Biliran islands, and southern third of Masbate island. It is also spoken in a few towns and islands in Samar. Cebuano has the most number of native speakers than Tagalog. In Bohol Island, the people are Boholanos and the local language is Bol-anon.
The language spoken throughout the most of Mindanao Island is known as Bisaya. Bisaya language is very similar to Cebuano language and is spoken by many people in Mindanao Island.
There are many beautiful Filipina women, calling themselves as “Cebuanas” living in Cebu. So, how do you court a Filipina Cebuana woman? There are many different ways of course, and Filipina Cebuanas are no different from other Filipina women. They want to be wooed and courted with gifts and loving phrases.
Here are some Filipina dating phrases in the Cebuano language. You can use it to court the Filipina Cebuana woman who lives in Cebu, Philippines!
These Filipina dating phrases are the same phrases you can also use to court Filipina Bisaya women living in most of Mindanao, particularly in Northern Mindanao, Central Mindanao and Southern Mindanao. You can find many beautiful Filipina Bisaya women from Mindanao who are beautiful, educated, and much more old fashioned in their ways than the Filipina Cebuana women who mostly grew up in the city of Cebu.
1) I like you – “Gusto ka nako”
2) I like you very much – “Nakagusto jud ko sa imo”
3) I have a crush on you – “Naka-crush ko sa imo”
4) Take care – “Pag-amping”
5) You take care – “Mag-amping ka ha”
6) I think about you – “Nag-hunahuna ko sa imo”
7) I think about you all the time – “Pirme ko gahunahuna sa imo”
I dream about you – “Nagdamgo ko sa imo”9) I miss you – “Miss nako ka”
10) I miss you very much – “Miss na miss jud nako ka”
11) I am in love you – “Gihigugma ko ikaw”
12) You are the only one I love – “Ikaw lang ang akong gihigugma”
13) I love you – “Nahigugma ko nimo”
14) I love you very much – “Gugmahan kaayo ko nimo”
15) I want to marry you – “Gusto nako ka pakaslan”
The Cebuano language or Bisaya language can have many other versions and different arrangements of the words used, but the meaning is the same. Each version depends on the situation of the moment the endearment is spoken. Meet Cebuanas from Cebu Island, register in www.FilipinaKisses.com.
Outsourcing Alternatives to a Politically and Economically Unstable India
Jack R. Lesley, Jr. asked:
Outsourcing: A love / **** relationship for U.S. I.T. professionals. Ask the average employee in any I.T. organization, and hearing about fear of jobs going to India and China is almost unavoidable. Although many have started the move toward business service management (BSM) to address the chaotic labor trends, I.T. labor itself still consumes over one-third of I.T. budgets. This figure is perfectly in line with a recently published Gartner report stating that 37% of the typical I.T. budget goes directly to personnel costs. What are you as the CIO going to do to manage this frenzied situation? Is outsourcing, or “offshoring,” the answer?
How can you outsource your operations to a foreign country and still maintain compliance with best practice frameworks such as ITIL or MOF? How do you maintain Sarbanes-Oxley, PCI, or HIPAA compliance when utilizing 100% offshore resources with far less control?
Almost everyone in the I.T. sector has at least one story about various operational tasks being “offshored” to India, and no call-center, network operations center (NOC), or infrastructure team has been immune to rumors of jobs going offshore. No longer are the cities of Mumbai and Delhi simple manufacturing hubs and suppliers of raw materials. The country is home to some of the largest corporate call centers and development centers in the world. In late 2005, the Indian outsourcing workforce numbered 350,000 individuals. That total is now estimated at well over 800,000, with many new positions going unfilled due to the lack of qualified candidates.
Eleven years ago this month, USA Today published an article titled “Can political instability be eliminated in India?” Looking solely at the news of the past six months, the answer to that question is an obvious NO.
The trend toward a twenty-first century India has not fostered the sort of sweeping political change one might expect from the world’s most populous democracy. Moreover, the unwillingness of the Indian government to more robustly combat intellectual property theft is the stuff that causes your legal team to lose MANY nights of sleep.
Recession has made its way to India as well. The 4 December 2008 issue of The New York Times ran an article discussing the wave of outsourcing firms scaling back their daily operations in India due to the unhealthy global financial climate. As of this week, the Indian rupee is at a record low.
India makes a strong case as the “global back office,” yet it has failed to produce an environment supporting front-office operations such as product innovation and corporate strategies. The prevailing thought of the past 5 years has been that Indian outsourcing firms are masterful in the art of efficiency and product development measures. What about now?
On 7 January 2009, Indian stocks took a nosedive in the wake of announcements by Satyam Computer Services that corporate profit summaries had been inflated for several years. The announcement by Satyam’s chairman and co-founder that he had directly falsified accounting documents on an ongoing basis has thrown the entire Indian outsourcing industry into dramatic turmoil. As a provider of back-office services for many of the largest banks and healthcare institutions in the world, the result of the SATYAM crisis is nothing short of devastating.
By Friday, January 9, 2009 news sources were reporting that interim CEO Ram Mynampati does not have faith that the firm can continue past the next few weeks. Mynampati stated they were working to find the liquidity to pay current employees, suppliers, and creditors.
In less than a week, the crisis has crossed the Pacific Ocean and hit U.S. shores. Auditing giant PricewaterhouseCoopers is expected to pay a hefty price for the emerging fraud. The auditor has been responsible for Satyam financial oversight for over eight years, and Satyam investors are expected to go to court in attempts to recoup losses. According to legal sources from within India, most are likely to attack PricewaterhouseCoopers directly rather than Satyam.
The tragic events of November 2008 in Mumbai clearly show that the concerns go much deeper. Over 200 people were killed in the attacks, and the entire central business district in Mumbai ground to a halt for several days, resulting in billions of dollars in lost labor. Within one week of the attacks, five high-profile Indian cabinet members were forced to resign. On 1 December, TIME magazine posed the question “Will India’s Government Survive the Mumbai Massacre?”
Many companies are selecting alternate destinations, and some trends show an actual migration OUT of India to other knowledge-rich environments such as Singapore, The Philippines, Armenia, Pakistan, and various Latin American countries. Companies requiring less interaction with the public (for example, a software development center) may select destinations where English is not the primary language, or in some cases, is not a language spoken at all. Companies building public-facing operations such as helpdesks or call centers are being forced to reconsider earlier decisions, and many are moving to more English-centric countries like Taiwan and the Philippines.
Key players are making a strong case for themselves as these trends develop. In the Western Hemisphere, Costa Rica and Peru have marvelous records of rock-solid software development and high customer satisfaction ratings. In Europe, Armenia is emerging as a major powerhouse and model of efficiency. In Asia, many are discovering that the almost-perfect English spoken in Taiwan and the Philippines combined with some labor costs equal to or less than those in India make each a destination of choice. In fact, the November 30 edition of The New York Times Magazine featured a four-page article touting the viability of the Philippines as a premier outsourcing destination.
While China, Russia, and Korea have fantastic talent pools, the labor cost and in some cases difficulty dealing with local and national governments make them less attractive to some U.S. based companies.
While being one of the lesser-mentioned yet more historically colorful European countries, Armenia is a virtual strongbox of extraordinary talent. As mentioned by the CIA World Factbook, 18% of Armenia’s current population is under the age of 15, meaning the talent pool is poised for huge growth.
Armenia declared independence from the former Soviet Union on 21 September, 1991 and is now a bastion of political stability (a particularly attractive factor for the O&O industry). A healthy GDP real-growth rate of 13.7% makes Armenia one of the top producers in the EU.
Additionally, Armenia is rapidly becoming a major challenger in the index of relative economic freedom. As reported by the Heritage Foundation, the change has been nothing short of amazing. In 2000, Armenia ranked 84th in relative economic freedom. As of late 2008, Armenia ranked 28th – ahead of European powerhouses Spain (31st) and France (48th) and just behind Sweden at 27th.
Hong Kong ranked #1 on the list for 2008, with the U.S.A. at #5.
The appraisal of economic freedom is based on 50 economic indicators within the following categories: capital flow and foreign investment; financial systems; monetary, budget, and trade policies; salaries and prices; government interference in the economy; property rights and regulations; and black markets.
Many outsourcing experts are finding a presence in Armenia quite successful for many of their clients and partners. The cooperation offered by the Armenian government to ease immigration and visa restrictions for executives and other technical employees traveling between Armenia and the United States has been a huge advantage to many, and this is compounded by great satisfaction with the talent pool offered by this European country.
Having a stable presence in Armenia is but one example of alternatives to the current Indian instability. There are numerous other alternatives as well, and diversification is going to be the keystone to success over the next few years.
As pointed out by one CEO, “…the logical approach for today’s global economy is to diversify. Many of my contacts who previously invested heavily in Indian resources are already asking for new alternatives, and we believe the best approach is to simply avoid the old cliché of “putting all the eggs in one basket.”
Singapore has emerged as another destination of choice, with an extremely stable economy and government as well as strictly enforced laws on intellectual property rights. Perfect English is widely spoken, and the country is considered one of the top-five technical innovators in the world.
Originally founded as a British trading colony in 1818, Singapore joined the Malaysian federation for a short two years ending in 1965. Now completely independent, Singapore is undeniably one of the most prosperous, diverse, and cosmopolitan destinations in the world and has a per capita GDP greater than that of many “leaders” in Western Europe.
In 2006, the World Bank rated Singapore as “the most business-friendly economy in the world.” Immediately behind London, New York, and Tokyo, Singapore is the fourth largest foreign exchange trading hub in the world.
The country is home to three major state universities: The National University of Singapore, Nanyang Technological University and Singapore Management University, resulting in a literacy rate over 93%. The island nation accomplishes it all with a geographic size only three times that of Washington, DC.
The Philippines and U.S.A. share not only a very similar legal system but the English language as well. Companies in the legal sector consider this fact especially attractive. Once a U.S. colony, the Philippines has a workforce that is already familiar with many legal factors not readily obvious to those in countries with less of a seasoned relationship with the United States.
A few facts about the Philippines:
Population of 91,000,000 as of 2008 550,000 college graduates per year on Average Educated labor pool of Over 30,000,000 Entry-level I.T. salaries average $2500—$8000 USD P.A. Top-quality CBD real-estate costs average $17 PSF 95% literacy rate English as a primary language
One of the top-three law firms in the world relocated their entire network operations center from Chicago to Fort Bonifacio, Manila, in 2003. That operation has since grown much larger, also encompassing legal operations and software development.
From 1997 to 2008, companies such as Citibank, Fluor, IBM, Convergys, Telus, HSBC, Dell, JP Morgan, Siemens, and Deutsche Bank have all opened major offshore facilities in the Metro Manila area of the Philippines.
More than just a country filled with call centers, the Philippines is home to dozens of offshore operations involving network operations, wireless services, energy, shipping and logistics, legal and medical transcription, finance and accounting, and software development.
The country is now recognized by some as the top destination of choice in Southeast Asia. In 2006, the country generated in excess of $3.0 billion in outsourced operations, and that figure is expected to more than double by the end of 2009. The Philippine government has targeted a global market share of 8 to 10% in the O&O market by 2011.
Regardless of where you go, there is no “single best answer” to every situation. When looking for that “trusted advisor” to help you make your next outsourcing, offshoring, development, or infrastructure decision, you need a firm with the knowledge, process, devotion, and proven direction to make it a success.
Only by in-depth knowledge of your core business can any firm help in an effective O&O engagement. You need a firm that endeavors to understand and optimize how the process will enhance not only the I.T. department, but all other business units as well.
O&O will continue to gain momentum over the next few years, regardless of what happens in the Indian subcontinent. The recent events in India and the surrounding territories are but a small stumbling-block to an ever-evolving global business model.
Businesses today realize that three very important factors have emerged in the outsourcing and offshoring industry:
O&O cannot and should not be based on the “one size fits all” methodology anymore. Diversification is the key. Every situation is different. Unless you are prepared to invest in learning foreign tax and H/R systems, unfamiliar holidays, unique infrastructure, governmental regulations, and possibly a few foreign languages, you NEED a trusted advisor on your side.
Companies and their investors who spent the billions of dollars (and thousands of man-hours) building outsourced operations based solely in India have found that trying to separate the technology from the actual business process is not only foolish—it is futile. Outsourcing and offshoring can provide limitless possibilities, but they must be done with precision , care, and proper distribution. Rather than outright withdrawal from offshoring operations, now is the time for diversification.
“There is timing in the whole life of the warrior, in his thriving and declining, in his harmony and discord. Similarly, there is timing in the Way of the merchant, in the rise and fall of capital. All things entail rising and falling timing. You must be able to discern this..”
Miyamoto Musashi , 1645
DOWNLOAD the full PDF version of this article.
Outsourcing: A love / **** relationship for U.S. I.T. professionals. Ask the average employee in any I.T. organization, and hearing about fear of jobs going to India and China is almost unavoidable. Although many have started the move toward business service management (BSM) to address the chaotic labor trends, I.T. labor itself still consumes over one-third of I.T. budgets. This figure is perfectly in line with a recently published Gartner report stating that 37% of the typical I.T. budget goes directly to personnel costs. What are you as the CIO going to do to manage this frenzied situation? Is outsourcing, or “offshoring,” the answer?
How can you outsource your operations to a foreign country and still maintain compliance with best practice frameworks such as ITIL or MOF? How do you maintain Sarbanes-Oxley, PCI, or HIPAA compliance when utilizing 100% offshore resources with far less control?
Almost everyone in the I.T. sector has at least one story about various operational tasks being “offshored” to India, and no call-center, network operations center (NOC), or infrastructure team has been immune to rumors of jobs going offshore. No longer are the cities of Mumbai and Delhi simple manufacturing hubs and suppliers of raw materials. The country is home to some of the largest corporate call centers and development centers in the world. In late 2005, the Indian outsourcing workforce numbered 350,000 individuals. That total is now estimated at well over 800,000, with many new positions going unfilled due to the lack of qualified candidates.
Eleven years ago this month, USA Today published an article titled “Can political instability be eliminated in India?” Looking solely at the news of the past six months, the answer to that question is an obvious NO.
The trend toward a twenty-first century India has not fostered the sort of sweeping political change one might expect from the world’s most populous democracy. Moreover, the unwillingness of the Indian government to more robustly combat intellectual property theft is the stuff that causes your legal team to lose MANY nights of sleep.
Recession has made its way to India as well. The 4 December 2008 issue of The New York Times ran an article discussing the wave of outsourcing firms scaling back their daily operations in India due to the unhealthy global financial climate. As of this week, the Indian rupee is at a record low.
India makes a strong case as the “global back office,” yet it has failed to produce an environment supporting front-office operations such as product innovation and corporate strategies. The prevailing thought of the past 5 years has been that Indian outsourcing firms are masterful in the art of efficiency and product development measures. What about now?
On 7 January 2009, Indian stocks took a nosedive in the wake of announcements by Satyam Computer Services that corporate profit summaries had been inflated for several years. The announcement by Satyam’s chairman and co-founder that he had directly falsified accounting documents on an ongoing basis has thrown the entire Indian outsourcing industry into dramatic turmoil. As a provider of back-office services for many of the largest banks and healthcare institutions in the world, the result of the SATYAM crisis is nothing short of devastating.
By Friday, January 9, 2009 news sources were reporting that interim CEO Ram Mynampati does not have faith that the firm can continue past the next few weeks. Mynampati stated they were working to find the liquidity to pay current employees, suppliers, and creditors.
In less than a week, the crisis has crossed the Pacific Ocean and hit U.S. shores. Auditing giant PricewaterhouseCoopers is expected to pay a hefty price for the emerging fraud. The auditor has been responsible for Satyam financial oversight for over eight years, and Satyam investors are expected to go to court in attempts to recoup losses. According to legal sources from within India, most are likely to attack PricewaterhouseCoopers directly rather than Satyam.
The tragic events of November 2008 in Mumbai clearly show that the concerns go much deeper. Over 200 people were killed in the attacks, and the entire central business district in Mumbai ground to a halt for several days, resulting in billions of dollars in lost labor. Within one week of the attacks, five high-profile Indian cabinet members were forced to resign. On 1 December, TIME magazine posed the question “Will India’s Government Survive the Mumbai Massacre?”
Many companies are selecting alternate destinations, and some trends show an actual migration OUT of India to other knowledge-rich environments such as Singapore, The Philippines, Armenia, Pakistan, and various Latin American countries. Companies requiring less interaction with the public (for example, a software development center) may select destinations where English is not the primary language, or in some cases, is not a language spoken at all. Companies building public-facing operations such as helpdesks or call centers are being forced to reconsider earlier decisions, and many are moving to more English-centric countries like Taiwan and the Philippines.
Key players are making a strong case for themselves as these trends develop. In the Western Hemisphere, Costa Rica and Peru have marvelous records of rock-solid software development and high customer satisfaction ratings. In Europe, Armenia is emerging as a major powerhouse and model of efficiency. In Asia, many are discovering that the almost-perfect English spoken in Taiwan and the Philippines combined with some labor costs equal to or less than those in India make each a destination of choice. In fact, the November 30 edition of The New York Times Magazine featured a four-page article touting the viability of the Philippines as a premier outsourcing destination.
While China, Russia, and Korea have fantastic talent pools, the labor cost and in some cases difficulty dealing with local and national governments make them less attractive to some U.S. based companies.
While being one of the lesser-mentioned yet more historically colorful European countries, Armenia is a virtual strongbox of extraordinary talent. As mentioned by the CIA World Factbook, 18% of Armenia’s current population is under the age of 15, meaning the talent pool is poised for huge growth.
Armenia declared independence from the former Soviet Union on 21 September, 1991 and is now a bastion of political stability (a particularly attractive factor for the O&O industry). A healthy GDP real-growth rate of 13.7% makes Armenia one of the top producers in the EU.
Additionally, Armenia is rapidly becoming a major challenger in the index of relative economic freedom. As reported by the Heritage Foundation, the change has been nothing short of amazing. In 2000, Armenia ranked 84th in relative economic freedom. As of late 2008, Armenia ranked 28th – ahead of European powerhouses Spain (31st) and France (48th) and just behind Sweden at 27th.
Hong Kong ranked #1 on the list for 2008, with the U.S.A. at #5.
The appraisal of economic freedom is based on 50 economic indicators within the following categories: capital flow and foreign investment; financial systems; monetary, budget, and trade policies; salaries and prices; government interference in the economy; property rights and regulations; and black markets.
Many outsourcing experts are finding a presence in Armenia quite successful for many of their clients and partners. The cooperation offered by the Armenian government to ease immigration and visa restrictions for executives and other technical employees traveling between Armenia and the United States has been a huge advantage to many, and this is compounded by great satisfaction with the talent pool offered by this European country.
Having a stable presence in Armenia is but one example of alternatives to the current Indian instability. There are numerous other alternatives as well, and diversification is going to be the keystone to success over the next few years.
As pointed out by one CEO, “…the logical approach for today’s global economy is to diversify. Many of my contacts who previously invested heavily in Indian resources are already asking for new alternatives, and we believe the best approach is to simply avoid the old cliché of “putting all the eggs in one basket.”
Singapore has emerged as another destination of choice, with an extremely stable economy and government as well as strictly enforced laws on intellectual property rights. Perfect English is widely spoken, and the country is considered one of the top-five technical innovators in the world.
Originally founded as a British trading colony in 1818, Singapore joined the Malaysian federation for a short two years ending in 1965. Now completely independent, Singapore is undeniably one of the most prosperous, diverse, and cosmopolitan destinations in the world and has a per capita GDP greater than that of many “leaders” in Western Europe.
In 2006, the World Bank rated Singapore as “the most business-friendly economy in the world.” Immediately behind London, New York, and Tokyo, Singapore is the fourth largest foreign exchange trading hub in the world.
The country is home to three major state universities: The National University of Singapore, Nanyang Technological University and Singapore Management University, resulting in a literacy rate over 93%. The island nation accomplishes it all with a geographic size only three times that of Washington, DC.
The Philippines and U.S.A. share not only a very similar legal system but the English language as well. Companies in the legal sector consider this fact especially attractive. Once a U.S. colony, the Philippines has a workforce that is already familiar with many legal factors not readily obvious to those in countries with less of a seasoned relationship with the United States.
A few facts about the Philippines:
Population of 91,000,000 as of 2008 550,000 college graduates per year on Average Educated labor pool of Over 30,000,000 Entry-level I.T. salaries average $2500—$8000 USD P.A. Top-quality CBD real-estate costs average $17 PSF 95% literacy rate English as a primary language
One of the top-three law firms in the world relocated their entire network operations center from Chicago to Fort Bonifacio, Manila, in 2003. That operation has since grown much larger, also encompassing legal operations and software development.
From 1997 to 2008, companies such as Citibank, Fluor, IBM, Convergys, Telus, HSBC, Dell, JP Morgan, Siemens, and Deutsche Bank have all opened major offshore facilities in the Metro Manila area of the Philippines.
More than just a country filled with call centers, the Philippines is home to dozens of offshore operations involving network operations, wireless services, energy, shipping and logistics, legal and medical transcription, finance and accounting, and software development.
The country is now recognized by some as the top destination of choice in Southeast Asia. In 2006, the country generated in excess of $3.0 billion in outsourced operations, and that figure is expected to more than double by the end of 2009. The Philippine government has targeted a global market share of 8 to 10% in the O&O market by 2011.
Regardless of where you go, there is no “single best answer” to every situation. When looking for that “trusted advisor” to help you make your next outsourcing, offshoring, development, or infrastructure decision, you need a firm with the knowledge, process, devotion, and proven direction to make it a success.
Only by in-depth knowledge of your core business can any firm help in an effective O&O engagement. You need a firm that endeavors to understand and optimize how the process will enhance not only the I.T. department, but all other business units as well.
O&O will continue to gain momentum over the next few years, regardless of what happens in the Indian subcontinent. The recent events in India and the surrounding territories are but a small stumbling-block to an ever-evolving global business model.
Businesses today realize that three very important factors have emerged in the outsourcing and offshoring industry:
O&O cannot and should not be based on the “one size fits all” methodology anymore. Diversification is the key. Every situation is different. Unless you are prepared to invest in learning foreign tax and H/R systems, unfamiliar holidays, unique infrastructure, governmental regulations, and possibly a few foreign languages, you NEED a trusted advisor on your side.
Companies and their investors who spent the billions of dollars (and thousands of man-hours) building outsourced operations based solely in India have found that trying to separate the technology from the actual business process is not only foolish—it is futile. Outsourcing and offshoring can provide limitless possibilities, but they must be done with precision , care, and proper distribution. Rather than outright withdrawal from offshoring operations, now is the time for diversification.
“There is timing in the whole life of the warrior, in his thriving and declining, in his harmony and discord. Similarly, there is timing in the Way of the merchant, in the rise and fall of capital. All things entail rising and falling timing. You must be able to discern this..”
Miyamoto Musashi , 1645
DOWNLOAD the full PDF version of this article.
