Fiji’s Growing Outsourcing Industry

[See full article here on Outsource Fiji website]

As the demand for workforce in the BPO, KPO, and shared services sector increases, more and more international businesses choose to outsource their operations to countries, such as India and the Philippines can meet this demand. During the COVID-19 pandemic, businesses operating in these larger countries struggled to operate, whereas Fiji began to outshine them through the Fijian Government’s successful efforts in containing the virus, allowing businesses in Fiji’s outsourcing (OS) industry to continue operations without many disruptions. This gave Fiji leverage in marketing itself as a risk diversification outsourcing destination.

During the pandemic, the Fijian Government also announced the industry as an essential service provider due to Fiji’s ability to quickly adapt to the pandemic’s work-from-home model; Fiji’s high-quality workforce; and the introduction of tax incentives for the industry, which attracted many international BPOs, KPOs, and shared service providers to move part of their operations from larger outsourcing countries, into Fiji.

“What we see in Fiji is that there is an eagerness to learn; the attrition rates are
actually very attractive compared to some of the other locations; and people in Fiji
see the BPO sector as a true career path” – Alan Graham, Chief Commercial Officer,
Mindpearl

Fiji’s Outsourcing Industry contributes approximately AUD$160 million per annum to the Fijian economy and is expected to triple in the years to come. The success of this industry has been made possible through the support of the Fijian Government, the improved infrastructure and technological advancement, and the leveraging of Fiji’s many natural advantages, which make Fiji the ideal choice for outsourcing service delivery.

“The resilience that comes with the Pacific people is not one that comes easily to any other place. They bring their best, whether it’s the worst cyclone or the COVID pandemic, and 98% of our workforce building resilience in business continuity by working from home, and delivering the best service can attest to that. And with the right outlook, the right investment, the right infrastructure and governance process, I think there are enormous opportunities here in Fiji.” – Mr Ritesh Singh, Former Managing Director & Chief Operating Officer, ANZ Pacific Operations.

Today, Fiji has several BPO’s, KPO’s, shared services centres, and global business centres providing services for well-known brands across the globe and are continuing to grow. Currently, Fiji’s outsourcing industry provides employment to approximately 8000 Fijians with the potential to increase to 25,000 employees by 2025.

What Fiji Offers
There are many reasons why businesses choose to outsource their work functions to other countries, including Fiji; some of the major reasons are to save operations costs, maneuver the company into a more competitive position, and solve manpower issues without the cost of hiring more employees. As a premium outsourcing destination, Fiji has been able to fill in these gaps for its international clients.
As part of its marketing campaigns, Outsource Fiji has been able to successfully promote Fiji through our brand, which is a helping hand gesture that represents our people and their excellent service culture, and their ability to deliver an excellent customer experience.

In line with our brand, we have been marketing Fiji with the following:

1. Skilled Workforce

Young and Tech-Savvy Workforce – With a young educated labor force with, excellent command of the English language with a neutral accent, Fiji presents unique opportunities for potential investments.
Inherent Service Culture -The people, with their inherent service culture, are well placed to serve the growing demand for global outsourcing services as a new, safe, and reliable outsourcing destination. Fiji is well known for friendly customer service and “bula” smiles. Partnering with our BPOs will ensure that your customers receive the best service which could translate into customer loyalty for your brand/company.

High Literacy Rate – Fiji is privileged to have a 96% literacy rate which puts us in a favorable position in comparison to other competing countries providing outsourcing services.

Access to a highly skilled workforce – Fiji has a talent pool of approximately 5,000 new graduates entering the workforce annually. Most entry-level employees in the outsourcing industry are university graduates.

Low Staff Turnover and Staff Loyalty- Jobs in the Outsourcing Industry are considered prestigious in the Pacific because of the working environment. The industry offers international job experience to the locals which keeps them motivated to stay with your brand and company for the long term. Jobs are limited in the Pacific so with every job advert it is likely that companies could receive over hundreds of applications from highly qualified candidates.

2. Culture & Stability

The Fijian culture is an extremely important part of why Fiji is ideal for operating business process outsourcing (BPO) companies. Fiji is considered the hub of the Pacific, connecting the Pacific islands with the rest of the world. The country has demonstrated stability and fosters a business-friendly environment to encourage investments.

Fiji has an ancient and living culture and this is celebrated by Outsource Fiji and its members. The genuine warmth and care of the Fijian people need to be experienced to be appreciated. You hear about the friendly people of Fiji but it is not until you encounter one of us that you will fully understand how the Fijian way of life integrates so harmoniously with the services BPO companies offer.

The Fijian culture is much about community and family, just so is our Fiji BPO Council’s commitment to our members and our clients. We represent a community of experts and offer world-class services in outsourcing.

3. Incentives
The Fijian Government is committed to steering Fiji toward economic prosperity through incentives such as:

● Eliminating business licensing
● Introducing tax incentives targeted at businesses and households
● Across-the-board reductions in customs tariffs and streamlining of processes
● Introducing Business Visitor Visa
All of these aim to improve the ease of doing business in Fiji, making us one of the most
competitive destinations for businesses. Via its Investment Fiji arm, the Government
offers several incentives to encourage BPOs to open delivery centers in Fiji, including:
● 20 – year tax holiday
● Duty-free equipment used in outsourcing centres
● Carry forward losses up to 8 years
● 25% investment allowance for the renovation of buildings
● 100% tax deduction for Employer superannuation contribution
● No stamp duty
● Employment taxation schemes enabling tax deductions as follows:
▪ 400% – employees with disabilities
▪ 300% – first-time employees
▪ 300% – work placements
▪ 300% – part-time workers
▪ 150% – employee development
▪ 150% – relating to family care
▪ 150% – relating to paternity leave

Infrastructure
● ICT
Having an ICT infrastructure that is reliable and affordable is key for the sustainability of the industry, and Outsource Fiji works with key stakeholders to provide tailored solutions for the Outsourcing sector. With direct access to the Southern Cross network cable, our network providers are consistently innovating solutions for Fiji’s Outsourcing Sector with competitive rates and exceptional support services.

Outsource Fiji is also grateful to the Fijian Government for its commitment to building a second landing station in the Western Division which will allow Fiji to become more resilient and reliable with our service offerings. The second landing station will help us avoid a single source of failure, allowing businesses to continue operations should there be a disaster like the one in Tonga.

The submarine fiber optic cable will also increase the stability of our telecommunication network and will strengthen Fiji’s position as the Pacific’s ICT hub, making Fiji truly a risk diversification location.

● Building
Our modern office building and OS operations-ready structures provide ease of operations and are in major towns and cities throughout Fiji with Suva (our capital city) being the hub for outsourcing operations. Moreover, to ensure the office spaces leased are in line with international best practices, Outsource Fiji in partnership with the Australian Government’s Market Development Facility has launched an Infrastructure and Office Fit-Out Standards Document for property owners and developers to use as a guideline when leasing out the property to businesses in Fiji’s outsourcing industry. In terms of building infrastructure, Outsource Fiji believes that growth is scalable with Major Business Park investments planned in the Kalabu Tax-Free Zone (developed by the Lyndhurst Group) and Navutu Lautoka (developed by FNPF), TFL business park in Suva by Telecommunications Fiji Limited (TFL), and Naisoso park (being developed by Tourism Capital Projects) and development in Sabeto, Nadi by Vulani Group.

To ensure uninterrupted and high-quality service, Fiji offers:

● Excellent transportation network (easy commute to work)
● 24*7 Electricity and Water Supply with backup support in case of emergency
● World-class International airport and Fiji’s International Airline

For more information about Fiji’s Outsourcing Industry, or to book a free consultation,
visit outsourcefiji.com today.

Fijian Government Tenders

Water Authority of Fiji invites bids for the following tenders:

– Supply of meter box

– Nagado WTP to Nadele pipeline construction, Nadi

– Construction of pipeline from Varaqe dam to Saru WTP, Lautoka

– Tasman Tank Actuator and SCADA installation works, Western region

Fiji’s Outsourcing Industry – A way forward for the Fijian Economy

The BPO council of Fiji in collaboration with Market Development Facility and an Australian based company, Matchboard, organised an online webinar for senior executives of Australian based companies who are looking to outsource to Fiji.

The Minister for Economy and Attorney-General Aiyaz Sayed-Khaiyum delivered his opening remarks at the panel discussion. The event functioned as both an information session and networking platform to highlight the advantages of outsourcing key business functions to Fiji and to connect Australian Business with Fiji based BPO companies.

The panel discussion which was hosted by Matchboard’s Managing Director, Ms Sharon Melamed and funded by the Market Development Facility, provided valuable insights from the leaders of BPO companies such as Mindpearl, Our Pacific Office and Packleader into their experiences while operating in Fiji.

Mr Brad Hagstrom, COO at Harmoney , an Australian company who have been outsourcing their contact centre operations and other functions to Mindpearl in Fiji since 2014, shared a compelling case study on why they chose Fiji as their outsourcing destination. “Fijians have excellent customer service skills and their smiling personality is what appealed to us the most”, said Mr Hagstrom.

The executive director of the BPO council, Ms Sagufta Janif in her presentation mentioned that many Australian businesses require their agents to be fully vaccinated and is a prerequisite for employment in the sector. “As of September 8th, 52.9% of our targeted population is fully vaccinated whereas the Philippines stands at 28.2% and this places Fiji at an advantage”, said Ms Janif.

She also mentioned that many outsourcing operations involve the use of technology. The outsourcing industry relies on digital-savvy staff, which is generally a skill that younger people have. 85% of BPOs workforce in Fiji is below the age of 30.

The main objective of the event was to inform Australian BPO companies currently based in the Philippines of the benefits and advantages of potentially relocating here to Fiji.

The A-G highlighted Fiji’s young and dynamic workforce, high literacy rates, world-class ICT infrastructure, friendly customer service and low business costs as key selling points for companies looking to outsource to Fiji.

These advantages, coupled with the generous income tax incentives and duty concessions recently announced in the 2021-2022 National Budget should serve as a springboard for the growth of Fiji’s BPO sector.

The Fijian government has also provided a $200,000 grant to the BPO council to Market Fiji as the outsourcing destination of choice. Please see below YouTube link on How Fiji stacks up v the Philippines for Outsourcing.

Transforming Fiji: The 5/20-Year Plan

At no time in our history have Fijians held greater confidence in the direction of our nation or in the future we are working together to build.

Our income levels are steadily increasing, we have moved up the ladder to become an upper middle-income country, and our living standards are the highest they have ever been, as Fijians enjoy the bene ts of eight consecutive years of economic growth.

Click here to see the full report.

Fiji’s Major Agricultural Exporters

Fiji has a secure business environment and has many investment opportunities specialising in manufacturing, garments/textile, fisheries, forestry, agro-processing, flori-culture, tourism, mining and services including information technology.

Click here to download a list of Fiji’s Major Agricultural Exporters.

Fiji Kava Quality Standard

This standard applies to kava (yaqona) as defined in Section 2. the standard applies to kava products used as a food or food ingredient and/or other products intended for human usage.

Kava Definition

The word “kava” refers to the plant species Piper methysticum and/or to the traditional beverage obtained by cold water extraction of the plant’s drinkable parts.

The word “kava” also refers to the Piper methysticum varieties known to have a history of safe traditional usage.

The Fijian varieties are:

– Loa kasa leka;
– Loa kasa balavu;
– Vula kasa leka;
– Vula kasa balavu;
– Dokobana vula;
– Dokobana loa;
– Qilaleka;
– Qila balavu;
– Matakaro leka;
– Matakaro balavu;
– Yonolulu ;
– Damu; &
– Yalu.

The kava plant parts proven to have a history of safe traditional usage are:

– roots (unpeeled),
– stumps or rhizomes (always peeled).
– basal stems (always peeled)

Click here to download and read the full Fiji Kava Quality Standard.

Fijian Crafted Register

Fiji boasts a proud and magnificent range of crafted products, anything and everything from traditional mats to sarongs, from necklaces to Voivoi Baskets.

Click here to download the list of companies and individuals that have licensed Fijian crafted products, as well as their contact details and their range of products.

Fiji Green Bond Framework

Introduction

Fiji sees the issuance of Green Bonds as an important tool to finance the transition to a low carbon and climate resilient economy and plans to issue Green Bonds to fund new financing or the re-financing of projects with economic, environmental and societal benefits, with a particular emphasis on the climate and natural environment.

Fiji has retained Sustainalytics to provide a Second Party Opinion to confirm the validity of the Framework. Sustainalytics2 has reviewed Fiji’s Green Bond Framework for its sustainable and green qualities as well as its alignment with the GBP. The objective of the Second Party Opinion is to provide investors with an independent assessment. The Second Party Opinion, as well as the Framework, will be published on the Reserve Bank of Fiji website.

Background

Climate change and climate-induced natural disaster risks constitute two of the greatest barriers to sustainable development as the impacts are widespread and cross-sectoral. Fiji is exposed to large natural risks, especially from floods and tropical cyclones. In the period between 1969 and 2016, the country experienced 63 tropical cyclones and 146 notable floods between 1969 and 2009. In February 2016, a category 5 tropical storm, the strongest ever in the Southern hemisphere, made landfall in Fiji.

Approximately 540,400 people equivalent to 62% of the country’s total population were affected and the country sustained damage amounting to almost a third of its Gross Domestic Product (GDP). Fiji is also at the forefront of large and uncertain long-term threats from climate change, especially from sea level rise and increased intensity of extreme weather events. For example, a coastal community – Vunidogoloa Village – in the Cakaudrove Province in Vanua Levu was relocated due to sea level rise.

There are some communities identified for relocation including a school. Rising sea levels coupled with warmer temperatures and stronger El Niño patterns increase Fiji’s susceptibility to deadly food- and water-borne diseases. Across Fiji’s two main islands, the number of cool nights has decreased and warmer days has increased since 1942. Tropical cyclones are predicted to decrease in frequency and increase in intensity. These changing weather patterns have worsened Fiji’s susceptibility to viral disease outbreaks. Fiji recorded a drought-induced outbreak of diarrheal disease in 2011, combatted a post-flood leptospirosis outbreak in 2012 and quelled a dengue outbreak in 2013.

Changing weather extremes threaten the livelihoods of the Fijian people—implicating Fiji’s ecosystems, on land and at sea. Saltwater intrusion from coastal flooding destroys farmland, disrupting the supply of staples in the Fijian economy and forcing communities to migrate to safer ground. The average asset losses due to tropical cyclones and floods are estimated at more than $500 million per year, representing more than 5% of Fiji’s GDP. Ocean acidification—or carbon pollution that increases the ocean’s acidity—will continue in Fiji, impacting the health of Fiji’s coral reef systems.

Countering the crisis will require collective action from the Fijian Government, the nation’s private sector and the world’s industrialised nations. Fiji remains at the frontline in advocating international policies to counter climate change. But internally, the nation requires technical expertise, human resources and financial capacity to fully implement protective measures. The private sector, other governments and international financial institutions can play key roles in helping Fiji mobilise financing to implement integral climate adaptation measures, as the country relies heavily on its natural resources for economic development, with fisheries, forestry and agriculture its primary industries.

Click here to read the full report from the Fijian Government.

Doing Business 2018 – Economy Profile

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labour market regulation. Although Doing Business does not present rankings of economies on the labour market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators.

By gathering and analysing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.

In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.

The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world.

The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals.

Click here to download the full report from World Bank Group.

Fiji’s Outsourcing Industry – A way forward for the Fijian Economy

Kava Definition

Introduction

Background

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