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Growth Factors of PH BPO

by: Sarah Joson

Thursday, October 31, 2013 |

Martin Conboy, Director of The Outsourcing Guide, shared in an article at TheSauce.net.au some highlights of his conversation with Mon Ibrahim, Undersecretary of the Department of Science and Technology wherein they discussed the current state of the Philippine business process outsourcing (BPO) industry and its growth opportunities brought about by government-driven efforts.

Factors to improve the BPO industry in the Philippines

These are the factors that the government and local BPO bodies are focusing on to further improve the outsourcing industry of the country:

Growth in "Next Wave Cities"

The Philippines bested India as the leader in call center outsourcing. However, for non-voice and complex outsourcing processes, India retains its top position and the Philippines, with more than 200,000 employees, comes in close second.

To sustain the country’s strong position in the outsourcing industry, it should promote and develop its "Next Wave Cities" - areas outside Metro Manila that have favorable business environments.

By 2016, 20 cities all over the Philippines should at least be employing 20,000 skilled and competent Filipinos.   

The Filipino Workforce
Talent development of Filipinos is also a priority. Ibrahim said he’s closely working with the Information Technology and Business Process Association of the Philippines (IBPAP) in creating training programs.

For regions outside Cebu and Manila, it was discovered that people with good English skills have become harder to find despite the fact that the country has a high percentage of English-speaking population (70 percent).

Ibrahim also pointed out that they have partnered with local ICT councils, educational institutions, and local government bodies to analyze what each region lacks in the business aspect, and what needs to be done to overcome the challenges.

Reinforcing the Educational System
The government has implemented the K-12 system which adds two more years in the academe for Filipino students and aims to equip high school graduates with the necessary skills to qualify for basic jobs. The additional two years in high school include social sciences, business administration and management, and STEM (Science Technology Engineering and Mathematics).

Shortage in Supervisors and Team Leaders
Various sectors in the Philippines have a rapid movement of employees and structure. The government believes that the country has to improve its pool of supervisors in the middle management division to create more opportunities for career growth.

Getting Familiar with Foreign Culture
With the influx of foreign investors, employees should be made aware of their client's culture. The government is also working on cultural training programs. The Philippines already has strong affinity with the Western culture, though it still needs improvement when it comes to Japanese, European, and Australian cultures.

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