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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
ELECTRONIC
INDUSTRY
 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)

2)

Single unit franchising
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:
st
 1 United laboratories (UniLab)
nd GlaxoSmithKline (GSK)
2
rd
 3 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, ebanking 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

 Large

growth in the past decade.

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

Third,

by marketing stalls.

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

Trends

growth

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.

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Franchising industry

  • 2. 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
  • 3.  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
  • 4.  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
  • 6.  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
  • 7. 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
  • 9. Types of franchising: 1) 2) Single unit franchising Sequential franchising
  • 10. 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)
  • 11. 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)
  • 13. 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)
  • 15.  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: st  1 United laboratories (UniLab) nd GlaxoSmithKline (GSK) 2 rd  3 Pfizer
  • 16.  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.
  • 18.  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, ebanking has become popular to its consumers.
  • 19.  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.
  • 20.  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.
  • 21.  Far East Bank merged with BPI & further with Prudential Bank.  Metrobank acquired Philippine banking, Solid Bank and Asian Bank.
  • 23.  Substantial  Large growth in the past decade. retailers like supermarkets enjoy tremendous growth.
  • 24.  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.
  • 25. Majority of retail outlet are sari-sari stores based on income. Followed Third, by marketing stalls. supermarkets
  • 26.  In terms of value-added supermarkets has highest percent.  In metropolitans, the presence of sari-sari stores and market stalls decline.
  • 28. Steady Trends growth recently reveal opportunities for residential housing and office spaces.
  • 29.  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.