Hybirs E-Commerce , Cebu IT and other free verse

According the dashboard statistics, my last post is already six months ago. I guess I have been so busy or did not bother to add any content to this site. Right now I am working on Java E-Commerce , Hybris in particular. E-Commerce is one internet innovation that will become a huge market in the future. According to surveys, Hybris leads in huge E-Commerce enterprise, while Magento ( PHP ) leads in medium sized enterprise.

As for the IT industry in Cebu, Philippines, it still on a rapid expansion. With several BPO companies and new buildings constructed until this day. A lot of foreign investors are moving in, such as Japan, USA, Europe as the main investors.

I think that’s all for now, just a short post to keep this site alive ūüôā
Viewership has increased or doubled from 2015 to 2016, not bad for a small site with very few contents. Most views are coming from the UI / UX posts.

Outsourcing Countries – India , Vietnam and the Philippines

First published on Apr 5, 2015. Updated July 27, 2015

Cebu, Philippines – Outsourcing: It has become the economic driving force of several countries since the invention of the Internet. Worldwide communication has become very easy, with the means of email, chat, phone or video. Several countries and nationalities can collaborate on a project via the Internet infrastructure. Information and Source Codes can also be shipped by this means. But Who are the key players behind the outsourcing revolution? I give my statements to 3 Asian countries that participates in the Outsourcing economy. As I know, These countries can take on Any Worldwide client, May it be North America, Europe, Oceania/Australia or Asia. Other countries are considered “Nearsource” since they are favored by the clients by its close geographical location ( ex: Costa Rica, Poland ). So here goes…

800px-Flag_of_India.svg

1.) INDIA – The Pioneer of the Outsourcing Industry. No other country can compete with sheer volume of its English speaking workforce. IT talent is also very abundant, with almost no shortage of skills in every IT position ( Developer, System Administration, Middle and Top Management, and other positions ). But recently India has increasing wages, due to competition of companies and talents. But still, only a selected portion of it is, as I know India is still on the competitive salary range, compared to other countries ( ex. Singapore )

India Update: India still holds the largest talent pool of English speaking outsourced IT personnel. Yet there are a lot of brilliant engineers from India, the skill quality of some engineers are questionable, when hiring on this huge talent pool.

Flag_of_Vietnam.svg

2.) VIETNAM – A new but very competitive player in the IT outsourcing. Vietnam’s secrets as an outsource destination is now being uncovered. Most companies go to India or the Philippines since these countries are know for its English speaking workforce. But Vietnam is catching up, and its IT professionals can speak good and comprehensible English. Infrastructure is improving and cost is a bargain. Talent pool may be a bit short, but it’s enough since there are already several Huge IT outsourcing companies in Vietnam. They focus more on software development, unlike India and the Philippines, which can handle all types of outsourcing jobs ( such Software Development, Accounting, Sales, Call Centers, Medical Transcription and etc … ) .

Vietnam Update : According to latest news and surveys, Vietnam is now considered the top IT outsourcing destination. A combination of skilled workforce, government support and wage factors takes Vietnam as a leading contender. Software Startups are booming in Vietnam.

About Vietnam start-ups:

http://www.cnet.com/pictures/vietnams-fledgling-startup-scene-pictures/

http://www.virgin.com/entrepreneur/the-worlds-best-start-up-hubs-ho-chi-minh-city-vietnam

Flag_of_the_Philippines.svg

3.) PHILIPPINES – It does not have the volume workforce compared to India, and just higher than Vietnam, but the Philippines is considered a major outsource destination by giving the best value for cost and expertise. Infrastructure is already good, and improving. Wages are on the rise in Metro Manila, with some even comparable to Singapore. But the alternative is to get talent in other cities, where wages are still lower. Cebu City remains to be the best option because of the abundance of workforce ( People coming in from the Visayas and Mindanao ) with an Infrastructure and City comparable to Metro Manila, with the bonus of lesser traffic and lesser population. The Philippines’ major clients are the United States ( Due to English and very similar culture as a former U.S. Colony ) and Japan ( As its “Nearsource” partner, next to China that is… ). Europe, Australia, and Canada are also in as other clients. Best part of Outsourcing in the Philippines? The land is considered a “Tropical Paradise”.

Philippines Update: The Philippines still holds the top spot as the No. 1 Call Center outsourcing provider. Software and other Information Technology services are also making an impact. Multinational companies such as Accenture, IBM and HP already have major offices in the Philippines.

Comparison to other South East Asian Countries:

Other South East Asian countries have a different economy, Thus Outsourcing may not be its main source of income. Malaysia has a bit higher wage compared to the Philippines, Although they have IT experts, but they need foreign talent to reinforce it. Thailand has a vibrant economy on tourism and manufacturing, but not so much on Information Technology. Indonesia is more on Agriculture. China is major player also, It can rival India but IT talent may be expensive. Singapore is expensive but you get excellent talent from several nationalities ( Singapore , Philippines, India, Malaysia, Vietnam and etc.. ) not suitable for volume work but great for Research Development and Start-up.

Comparisons and reports of outsourcing

http://www.theregister.co.uk/2015/04/22/good_news_your_jobs_not_going_to_the_philippines/

Other Sources

http://techcrunch.com/2015/04/03/the-promise-of-outsourcing-to-vietnam/
http://www.bloomberg.com/ss/09/01/0114_top_outsourcers

Countries to watch out!

1.) Kenya – English speaking country in Africa. It’s Capital City of Nairobi is a booming urban jungle.

2.) Poland – Considered the best outsourcing partner for Europe and the United States.

note: flag images are of public use taken from wikipedia.

 

Cebu – The Next IT and BPO destination. Focusing on its nearsource partners

Cebu City, Philippines – Cebu is being considered as the Next IT outsourcing destination. Cebu should be considered as an alternative to Metro Manila since this area has become saturated. And from my own personal experience, Cebu City is much more livable compared to Metro Manila, and even people from Manila agree themselves.

kmcmaggroup.com ( Philippine Real Estate Company ) has these articles to back it up. Please see some of its pages below about Cebu.

– Why Cebu is the New BPO Frontier
http://kmcmaggroup.com/blog/2015/1/23/why-cebu-is-the-new-bpo-frontier/

– Investment Destinations, Cebu City
http://kmcmaggroup.com/blog/2014/2/10/investment-destinations-series-cebu-part-1-of-3/

– TOP 3 Office space options ( and there’s even more under construction )
http://kmcmaggroup.com/blog/2014/2/14/top-3-office-space-options-to-consider-in-cebu/

To summarize, here is why Cebu is considered.
1.) Abundance of local talent from universities
2.) Excellent English skills
3.) Cheaper labor costs
4.) Cheaper office rentals
5.) Cheaper and better place to live
6.) IT industry here is expanding
7.) Multinational Companies IT companies are already considering Cebu

As for salary comparisons, I made some research and gathered the average salary per month in Peso. I only selected from countries that have relevant impact in IT and the Philippines. ( take note it is on the average, so usually the range may sometimes be lower, and some higher ). But still a lot of factors are to be considered, such as costs of living and talent pool.

*( All rates are in PHP and Per Month, so we can easily compare to Philippine Salaries. Rates are applicable for Software Engineers. Data is gathered from payscale.com and personal knowledge)

OUTSOURCE COUNTRIES

Philippines – 28,928.83 – engineer / 46,453.16 – sr. engineer
India – 38,825.41 – sr. engineer
Malaysia – 48,027.91
Vietnam – 55,760
Poland – 67,934.25
China – 74,774.91

————————————

TOP TIER COUNTRIES

Singapore – 120,715
Japan – 130,787.75
England – 164,372.5
New Zealand – 179,023.66
Germany – 178,692.0833
Finland – 189,045.5
Ireland – 220,294.666
Australia – 242,0509
USA – 282,796.0833

———————————–

It is quite clear that the Philippines still maintains the cost advantage. The next target would be the “Nearsource” Advantage. USA may be an exception since it maintains a strong cultural and government affiliation. Therefore, USA is already counted as one, even if it is geographically not considered as “Nearsource”. Then which countries are the potentials? These would be Japan, Australia, New Zealand, Taiwan and Singapore. Europe is also considered, but competition is tough as we have India and other European nations.

We will then analyze the IT economy of Japan, Australia, and New Zealand on the next posts.

IT Career 2015 – Why go for IT?

Why go for an IT career?

A Career in IT ( Information Technology ) has a lot of potential in the succeeding years. Information technology is the Data and Network infrastructure that binds the world together. It moves the information and knowledge in the fastest way we could ever imagine.

In relation to our daily lives, information technology lets us send a message across anywhere in your area, your country or around the world in mere seconds. And not just that, it lets you send this message anytime of the day, with a very minimal failure time. A single message or a signal is not just a text, but is also a picture, an entire document, a video, a bank transaction, or even machine program code, that builds another IT system.

Information technology is heavily used in almost all industries such as banking, tourism, telecommunications, finance, healthcare, retail, manufacturing, animation, transportation, media, and research. In all industries in the world, there is a need of an IT System.

Due to the complexity of the Information Technology projects, there are several key roles in an IT team. These are:

1.) Technical Specialist
РIndividuals that has a technology specialization. Examples are: Database Administrator, Network Infrastructure Engineer, Operating System Specialist and System Deployment Specialist. These are the people who make sure that the full IT System is running on complete cylinders.

2.) Software Developer
– These are the implementation specialists that develop and create Software infrastructure. Basically the logic and behavior designer of an IT system. They have high understanding of the programming language used.

3.) Test and Quality
– QA ( Quality Assurance ) / Test Engineers check and inspect Software and IT Systems if it has errors and flaws. They make sure the System is in good quality. They must posses skills that such as attention to detail, and can come up with out of the box or logical test scenarios.

4.) Documentation
– Complex systems needs good documentation for future reference. Manuals and systems specifications are also required.

5.) Support Staff
– Administrative and and other support roles that the team will need, which may be technical or non-technical.

6.) Project Leaders and Managers
– The driving force and leaders of the IT team. They posses great experience and knowledge of the entire project. Must be technically skillful on the technology domain. Posses great leadership skills that can carry people to deliver. Better yet if this person can lead other leaders as well.

Philippine Startups and high value outsourcing

I reblogged this post from The Cebu Strides. The article is about Cebu Outsourcing but there is topics here that relate to Software and IT Start-ups.

THE CEBU STRIDES

Here’s some news and links on the Cebu Outsource Industry. As the summary of the news, more companies are doing high value IT services, such as
Business process outsourcing, Software development, Medical Process and other high value services, aside from the voice process outsourcing, which Cebu and
the Philippines is know for.

New players in the Cebu IT industry are as mentioned: United Health Group, ExlService, Cognizant, QBE Insurance, and Manulife and Daimler Group.
Also mentioned also is the 2014 Cebu ICT-BPM Conference where speakers and experts from the Philippines, Singapore and Malaysia are gathered.

See the full report here:

http://www.sunstar.com.ph/cebu/business/2014/05/22/cebu-s-ict-bpm-industry-new-wave-outsourcing-344189

There are also organizations that enhance and promote IT start-ups. One is the hack2hatch which offers start-up contests that give out seeding money to the winning teams.

See their website, some news and their Facebook page below:

http://www.techinasia.com/8-startups-at-hack2hatch-in-philippines-to-receive-php100000-each-in-seed-money/

hack2hatch.com

https://www.facebook.com/Hack2HATCH

In my own opinion, I think we should more…

View original post 50 more words

Outsource in Cebu

Assessment on the outsourcing capabilities of Cebu. Its potentials , strengths, weak points and geographical advantage.

Cebu’s Strength’s
– Aside from the already existing employees of outsourcing companies, there are lot of University Graduates in Cebu, and we can also include nearby regions such as Negros, Bacolod and Mindanao. Some professionals in Manila and Luzon area are also willing to work in Cebu. Philippines ranks at no. 12 ( at 98.3 million ) in world population with Cebu at 4 million.

Here is the list of all colleges in the Philippines:
http://www.finduniversity.ph/universities-by-region/

Cebu / Philippines time difference to the rest of the world
– The entire Philippines have the same timezone at GMT+8 but as compared to other countries, here’s the difference;
> Japan is only one hour advance
> Australia is 2 hours advance or has the same timezone ( depends in which city in Australia )
> Singapore and Hong Kong have the same timezone
> Europe is at least 5 hours late, so the afternoon in the Philippines is morning in Europe
> India is at least 2 hours late
> United States, Canada and the entire South America is in reverse. This means that when people in the Philippines are working, People in the United States are sleeping.
And this goes the other way around in the next day.

Cebu’s IT talents
– Cebu has around 20 Software Development companies, With the most number are coming from United States and Japan. There are also European companies. The companies range from multinational with some small and medium enterprises starting to emerge. With a good English speaking population Cebu and the Philippines is one of the top destinations for Call Center operations. Call Center operations caters to the United States, Australia and Europe. Other outsource IT services include; Accounting, Medical Transcription, IT Technical Support, and Graphic design.

Laws regarding foreigners ownership of a Philippine business
– A business can be of foreign ownership up to 100% as long as products of the business are for exports. All manufacturing plants and BPO ( Business Process Outsourcing ) are all declared as exports. If a foreigner would like to setup a business for the local market, the law states that 60% share should be from Philippine citizens and 40% can be owned by foreign nationals. This law somehow protects local markets with foreign competition, but may be of hindrance to some foreigners who would like to do business in the local market, without the mandatory collaboration of a local partner.

Here’s more information in this website about laws regarding foreigners setting up a business in the Philippines.
http://www.thefirmcebu.com/faq.html

Cebu in comparison to Metro Manila
– Cebu is the second largest city in the Philippines outside of Metro Manila. Manila is the capital where most major corporations and main branches operate there. But one of its disadvantages that its too crowded, heavy traffic, flooding ( but only on typhoon/heavy rains ), higher rental rates and a higher cost of living. Manila’s advantage is that you can get more talents in there since the market there is much larger than Cebu. Cebu’s advantage is on the lower costs of operations and better livability.

Cebu developments and infrastructure
– There is an ongoing Real estate boom in Cebu. Numerous buildings are created such as condominiums, office buildings, hotels, shopping malls, housing and other establishments. There is not much development in the transportation sector, but there are upcoming plans of a BRT Mass transit and the reconstruction and expansion of the Mactan International Airport.

Cebu’s Electric power supply
The Philippines has excellent resouces on renewable energy with geothermal, solar, wind, and hydro power plants. There are also natural gas and coal power plants also. Cebu is connected to the Visayas power grid, with neighboring islands supplying electrical energy to Cebu via underwater cables.

See the list of Philippine Power plants:
http://en.wikipedia.org/wiki/Geothermal_power_in_the_Philippines

Here’s the wikipedia page on Geothermal power in the Philippines
http://en.wikipedia.org/wiki/Geothermal_power_in_the_Philippines

Cebu’s perks and uniqueness
– Cebu is geographically located in the center of the Philippines, making it the central gathering point from all other islands and cities of the Visayas and Mindanao. Cebu is the a very urbanized city, complete with modern transportation and infrastructure second only to Metro Manila. For its geographical landscape, Cebu is a small and elongated island. Plain lands is limited and most areas are mountainous. Great advantage of Cebu is that it has large shorelines and the nearby Mactan Island is known for its world-class resort destinations.

Foreign Population
– There are significant number of Koreans living in Cebu. Most are English students, some are businessmen and others are families. There are also a lot of Japanese, but majority of these people are just tourists and only travel to the Philippines just for vacation. There are also Chinese, some for business while others are tourists. There are also students from India, the Middle East and Africa. Americans and Europeans are also here, some for business, others are on vacation, while the rest are taking thier retirement here.

Where should Cebu Improve on
– It should be highly be emphasized that Cebu needs to address the these major issues. 1. ) Better and efficeint transportation 2.) Address the issue of poverty 3.) Be prepared on disasters. Some other aspects to improve on, but already has some significant improvement. These are; 1.) Start-up industries and solid local products 2.) Establish better links to the other cities in Visayas and the Philippines

Here’s some news on the business trends in the Philippines

http://www.rappler.com/business/industries/175-real-estate/70006-non-bpo-favor-philippines?utm_source=facebook&utm_medium=referral

A list of MEPZ companies in Cebu ( Local and Export processing industrial plants )

https://www.onecebu.com/travel/destination-guide-reviews/information-3749.html

http://www.philippinecompanies.com/location/mepz

List of all companies that are registered PEZA ( Philippine Export Zone Authority )
http://www.peza.gov.ph/index.php?option=com_content&view=article&id=97&Itemid=55