No expansion for HSBC outsourcing

Banking giant HSBC has room to expand the capacity of its business process outsourcing (BPO) centres in the Philippines, but there are no immediate plans to do so, reports Reuters.

Quoting HSBC Philippine country manager Mark Watkinson, the Philippine Daily Inquirer reported earlier that the bank planned to add 1 000 new jobs at its BPO unit in the Quezon City suburb in the capital over the next 12 to 18 months. But HSBC said it had no immediate plans increase staff.

HSBC employs 7 000 to 8 000 workers in the Philippines, including two BPO units. The bank has cut 2 100 jobs at its main banking operations globally since September.

Some outsourcing critics worry that US president-elect Barack Obama may de-emphasize his commitment to get businesses to stop sending jobs offshore, says the Washington Post.

Many of the 17 members of Obama's Transition Economic Advisory Board are leaders or directors of big companies that have a long history of moving work overseas.

“The upshot is that the Obama folks haven't taken the issue of white-collar outsourcing very seriously, in part because his advisers are either doing it or don't believe it's a real problem,” says Ron Hira, assistant professor of public policy at the Rochester Institute of Technology.

Sony has cut 8 000 jobs globally this week, but Sony Australia is in better shape than its parent, with the company planning no layoffs locally, says Smarthouse.

However, Sony Australia MD Carl Rose admitted he aims to trim local operational costs. Among the measures being considered is the outsourcing of logistics to DHL.

In a statement, Rose said: "At this time, Australia is faring better economically than other parts of the world, so these specific initiatives will not necessarily take the same shape locally. That said, in times like these, the measure of a good organisation is how effectively it can adapt to movements in the market."