News article from 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.

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


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