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BPO execs name tight labor market as top concern

by: Carlo Abadilla

Thursday, December 3, 2009 |

A survey conducted by Outsource2Philippines and the Business Process Association of the Philippines (BPA/P) – the Philippines’ governing outsourcing body – showed that 54% of BPO executives believe the tight market for qualified outsourcing workers could limit the local outsourcing industry’s growth.

According to the Philippine Daily Inquirer, 46% of the executives polled claimed that retaining workers in the Knowledge Process Outsourcing subsector was also a major concern. Those surveyed named complex training requirements (34 percent), high competitive wages (30 percent), and inadequate education infrastructure (29 percent) as other major challenges that the Philippine outsourcing industry faces.

Among others listed were government corruption (21%) and, consequently, the negative perception of the Philippines (15%). However, 52% of the executives indicated that as an outsourcing destination, the Philippines was not as risky as India. Furthermore, the majority of those surveyed said they would ramp up employees by %6 to 50% in the next year.



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