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Talent Supply Remains a Challenge for PH IT-BPO Growth

by: Sarah Joson

Tuesday, January 24, 2012 | Outsourcing News |

Low Supply of IT Talent a Challenge for the IT-BPO Sector of the Philippines

XMG Global’s founding President and Chief Analyst Lauro Vives said the growing demand for information technology-business process outsourcing (IT-BPO) will be a problem as the country currently lacks talent with the needed knowledge and skill set, and this will remain a challenge.

 This may even result to a monotonous growth predicted to be between 19 and 21 percent for 2012, whereas the Business Processing Outsourcing Association of the Philippines (BPAP) assessed a 20-percent growth for the previous year.

Vives said since the country’s BPO sector is in the process of moving towards providing high-end services, companies nowadays turn to hiring non-Filipino candidates to fill higher-value positions. He added that experienced local IT workers are beginning to see and grab more opportunities in other ASEAN countries like Malaysia, which can lead to an increase in labor costs in the country.

XMG also predicts that due to the high attrition rate among high school and college students, a one-percent decline in the number of educated candidates is possible within the next five years.

Meanwhile, global recession is anticipated to have a minimal effect on the country’s call center sector, and the economic woes in Europe may push companies to invest in outsourcing to the Philippines.

BPAP and CHEd have both signed a five-year partnership to improve the country’s curricula and provide training programs for teachers. A “BPO 101” class is proposed to be included to the educational system and a standard global competitive test (GCAT) for call center hopefuls is set to be implemented as an added measure. 


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