Article by John Maxfield

There are lots of indicators the investors use to decide whether they will be putting their money in a particular company or not. The firms’ good reputation, high financial stability and good qualities of goods and services are some examples the investors are looking into. Above all, good financial record is the most essential which JP Morgan Chase has been struggling with. J.P. Morgan has been one of the top outsourcing industries around the world and begun operating in the Philippines since 1961. However, the financial stability of their organization in London has not been in good condition that can affect their other organizations extended in different part of the world.

In the news, the company CEO bought shares with an average price of $34.27 using the 75% (17 million dollars) of 2011 compensation funds, a strategically approach to attract more investors. As result, there would be lots of investors putting their money in J.P. Morgan and this will decrease the loss incur for the past 2 months.  The reporter, John Maxfield said that insiders’ purchases of stock would be a powerful tool for the JP Morgan to somehow compensate the damages of the London Scandal.

 Even though Dimon's money would put into a great risk, he still the bought stock for the sake of the company. If this would become successful overtime, J.P. Morgan specially its CEO would be able to gain large outputs.Furthermore, there would be lots of investments continuously coming in and as a result, technological developments and innovations in its extended organizations would be possible.


Authors:
Candelaria, Abegail
Gonzales, Leonard
Nepomuceno, Gian Josel
Parale, Veronica

 

News article from Ca.finance.yahoo.com by Reuters

Deutsche Bank , one of the leading financial service providers and has a local presence in more than 70 countries is expected to cut off 1000 jobs due to the tough condition in the capital markets as an effect of the Euro zone debt crisis.

In the news, it was stated that the cutting off of jobs will be outside Germany that is why Philippines might be affected by it. The non-voice outsourcing contributes around 160,000 jobs in the Philippines and if Deutsche will pursue the cut off in job offering, the demand then for non-voice outsourcing in the Philippines will be less than the expected target of 1.4 M jobs for the next four years.

With this, the Philippines is therefore indirectly affected by the Euro crisis since companies which are directly affected by this are starting to make further move into how they would cope with the problems in the capital market.

However, there is also a possibility that they lop off fewer jobs in the Philippines considering that compared to other outsourcing destinations, the Philippines is among those who are cost competitive in outsourcing. Philippines is one among the outsourcing destinations in the world which has the lowest all-in costs that will make the outsourcing company better off.

Still, there is less to worry because Deutsche is just one amongst the 96 established providers in the KPO sector. At present, the whole BPO industry is growing especially in the KPO sector which has a 20-25% growth. This can still make the Philippines confident that the job cut offs will make a very minimal effect into the whole industry.

Authors:
Candelaria, Crista Abegail
Gonzales, Leonard
Nepomuceno, Gian Josel
Parale, Veronica


 

 

Article from Forbes.com by David Penn

     JP Morgan’s performance in May and June has shown negative results as it slips into bear market territory. However, the company experiences a comeback this month, together with the entire U.S. stock market. This event would in turn be beneficial for the company as it increases the potentials of JP Morgan as a major industry player.

     In the Philippines, JP Morgan is one of the leading KPO companies in terms of finance and accounting. It is projected that the KPO industry is moving up to put up high-value services in outsourcing. With this, JP Morgan may lead in this effort to expand the industry especially in locations other than Metro Manila such as Cebu, which is now being considered as one of the top five outsourcing destinations in the world. Even though this would be a risky investment on the part of the company, the returns will be high if the necessary measures are implemented.

     As of 2010, the contribution of the entire BPO industry to the GDP of the Philippines is around 49%. If JP Morgan continues to have higher levels of productivity, through new investments, the company would possibly yield higher gross value added to the industry, therefore, significantly contributing to the growth rate of the country.

     Furthermore, when JP Morgan expands, it would demand for more labor force, therefore, giving more jobs to Filipinos and hopefully reducing the unemployment rate of 6.9% as of April 2012. In effect, this would spur the increase in private consumption spending that constitutes 54.3% of the GDP of the country as of the fourth quarter of 2011.


Authors:
Candelaria, Crista Abegail
Gonzales, Leonard
Nepomuceno, Gian Josel
Parale, Veronica