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High Attrition Hampers PH BPO Growth

by: Ronald Escanlar

Thursday, January 20, 2011 | Outsourcing News |

PH BPO Workforce Faced with High Attrition Issues

Manpower problems will slow down the aggressive growth of the Philippine business process outsourcing (BPO) industry if high attrition rates continue, warns Maulik Parekh, president and CEO of SPi Global Solutions, a Philippines-based BPO firm.

Parekh explained that BPO companies could avert the labor shortage and reduce attrition by offering value-added services over cost savings to client-companies, improving working conditions for employees, and encouraging innovation through entrepreneurship. Around 84,800 employees resign from their BPO jobs yearly, the CEO pointed out.

If the BPO industry did not immediately address the attrition issue, Parekh said that “the industry will be short of 400,000 workers by 2016.”

Business Processing Association of the Philippines chairman Alfredo Ayala had earlier announced that the BPO industry would earn $25 billion by 2016, even with “zero investment” from the government. Parekh explained, however, that with the current exit rate of workers standing at 16 percent, the industry could only bring $18 billion, which he said was “not acceptable”.


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