OUTSOURCING INDUSTRY

THREE KINDS OF OUTSOURCING

Nearshore outsourcing is the practice of getting work done or services performed by people in neighboring countries rather than in your own country

Onshore outsourcing (also called domestic outsourcing) is the obtaining of services from someone outside a company but within the same country

the contracting out of a business process to a third-party

a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally

is an effective cost-saving strategy when used properly

Offshore outsourcing a type of business process outsourcing (BPO), is the exporting of IT-related work from the United States and other developed countries to areas of the world where there is both political stability and lower labour costs or tax savings

ELECTRONICINDUSTRY

Electronics is distinct from electrical and electro-mechanical science and technology, which deal with the generation, distribution, switching, storage, and conversion of electrical energy to and from other energy forms using wires, motors, generators, batteries, switches, relays, transformers, resistors, and other passive components

THE FACTORS CONSIDERED BY MULTINATIONAL COMPANIES

the strategic location of the company

the strength and capability of human capital

proficiency of the workers to speak English

FRANCHISING INDUSTRY

Types of franchising:

1) Single unit franchising

2) Sequential franchising

8th place - water refill franchises (minimum investment P20,000.00)

7th place - education and training franchises (initial minimum investment P1 million)

6th place - bakery and food store franchises (minimum investment P250,000.00)

5th place - bar and café franchises (minimum investment P250,000.00)

4th place - personal care franchises (minimum investment P200,000.00)

3rd place - service-type franchises (minimum investment P2 million)

2nd place - fast-food and restaurant franchises (minimum investment P150,000.00)

1st place – food cart and kiosk franchises (necessary investment of P20,000.00)

TELECOMMUNICATION INDUSTRY

Philippines three prominent mobile service providers:

Smart – a Philippine Long Distance Telephone Company (PLDT) subsidiary (19-20 million subscribers)

Globe Telecoms – an Ayala affiliate (13-14 million subscribers)

Sun Cellular – formerly with Gokongwei’s group (more than a million subscribers)

PHARMACEUTICAL INDUSTRY

Highly dependent on importation of materials.

95% of the materials are imported and we just mainly manufacture medicines which are developed in foreign countries.

However, local companies dominate this industry:1st United laboratories (UniLab)2nd GlaxoSmithKline (GSK)3rd Pfizer

In 2003, introduction of herbal medicine was given a boost due to extensive advertisements and celebrity endorsements.

Growth of natural dietary supplements has reached over 700million in 2003 & doubled 7 years later.

Over 100 herbal products that are single herbs, combination herbs and herbs with extracts.

BANKING INDUSTRY

BDO is now the largest bank in the Philippines in terms of assets and deposits this is due to its merger with Equitable PCI last 2006.

Aside from mergers and acquisitions, e-banking has become popular to its consumers.

From ATMs to e-banking at home or anywhere.

Because of this, we can say that competitive advantage relies on the capability of technology and excellent customer service.

Mergers and acquisitions were prominent in this industry.

Equitable bank’s merger with BDO but prior to that was its acquiring of PCI bank making it Equitable PCI Bank.

Far East Bank merged with BPI & further with Prudential Bank.

Metrobank acquired Philippine banking, Solid Bank and Asian Bank.

RETAILING INDUSTRY

Substantial growth in the past decade.

Large retailers like supermarkets enjoy tremendous growth.

This is because of their high-tech facilities, well equipped warehouses, point of sales & scanner systems.

On smaller scales, sari-sari stores dominate rural areas.

Majority of retail outlet are sari-sari stores based on income.

Followed by marketing stalls.

Third, supermarkets

In terms of value-added supermarkets has highest percent.

In metropolitans, the presence of sari-sari stores and market stalls decline.

REAL ESTATE INDUSTRY

Steady growth

Trends recently reveal opportunities for residential housing and office spaces.

Condominiums, apartments & houses mostly found/located in Makati, the business hub of the country.

Steadiness of growth of can be proven by the partnership of Ayala land with Lucio Tan group.