Philippine Call Center Operations to Grow 15%
Benedict Hernandez, President of the Business Processing Association of the Philippines (BPAP), anticipates a 15% growth in employment for the already bullish voice segment of the Philippine business process outsourcing (BPO) industry. The country’s contact center sector has 493,000 employees and is seen to increase to 567,000 in 2013.
Hernandez noted that the employment growth in the voice sector is the most bullish, outpacing the average employment growth in the country by five times. This goes to show that the voice-based sector creates more jobs and is more profitable than other sectors.
Furthermore, Jojo Uligan, Executive Director of the Contact Center Association of the Philippines (CCAP), the voice sector provides higher wage rates. He added that the usual monthly salary of an entry-level worker ranges from P12000 to P13000, which is 38 percent more than the usual basic minimum of P9000.
According to Hernandez, the country has been named as the leading outsourcing destination for voice-based services and is the world’s best country in business English proficiency based on a study done by GlobalEnglish Corporation.
President Aquino: PH now Ready for Investments
During the Philippine-New Zealand Business Forum, President Benigno Aquino III mentioned the hard work his administration has done to restore order. The administration battled corruption, reformed budget provisions, and implemented stricter rules in sourcing. He then quipped that now is the time to invest in the Philippines.
He added that the current government was able to accomplish crucial factors that were not addressed by his recent forerunners, one of which is to possess a business environment based on fairness and integrity. His administration was also able to promote transparency and equality among businesses.
Furthermore, he informed New Zealand investors that they can find the right partners based on their competency and not through political favors or “under the table” processes. Other industries and products such as electronics, home furnishings, and garments were also mentioned by the President.
According to the President, the robust business process outsourcing (BPO) industry had contributed $.7.38 billion in revenues for 2011, fuelled by customer-oriented Filipino workers.
Online Marketers Leverage Outsourcing
According to an Aquent report, two-thirds of marketers outsource strategy-related processes to focus on core goals. Factors that contributed to the decision of over 70 percent of the respondents to outsource are lack of resources and skill inadequacy.
As web marketing continues to evolve, firms are trying hard to catch up with the changes and employ workers who have the right skillset for the job. In fact, less than half said they were able to hire candidates who met their requirements. By hiring third-party service providers, several processes of web marketing can be assigned to them. This then enables companies to make best use of the expertise of the external provider, as well as maximize internal resources.
Marketing professionals now face new processes that are involved with digital marketing. They now want to be more visible online through processes like search engine optimization (SEO). But to be able to do so, they would need the right skills and expertise.
The new processes require a proactive team that is able to act on the latest trends and apply these to the brands that they are handling. Others consider outsourcing to be able to fill the strategic gaps as the industry evolves.
BPAP and TESDA join forces to produce more world-class BPO employees
The Business Processing Association of the Philippines (BPAP) and the Technical Education and Skills Development Authority (TESDA) have joined forces in producing 1,700 mentors as the demand for skilled agents increases.
According to BPAP CEO and President Benedict Hernandez, they forged a partnership with TESDA as they are eyeing to produce more world-class business process outsourcing (BPO) employees. P25.2 million worth of funds have been allotted by TESDA as part of its goal of reinforcing the technical and vocational skills of Filipino candidates.
TESDA and BPAP pointed out that the rapidly developing industry such as the BPO sector needs highly qualified trainers to enrich and sustain the talent pool.
This program is an effort directed towards reaching the target of employing 1.3 million workers in the BPO sector by 2016.
Call center sector leads BPO industry
The call center sector continues to have the upper hand in the Philippines’ business process outsourcing (BPO) industry, and is predicted to contribute US$14.7 billion in revenues and 800,000 jobs by 2016.
Benedict Hernandez, President to both Contact Center Association of the Philippines (CCAP) and Business Processing Association of the Philippines (BPAP), said the voice sector will provide more job opportunities in the future.
A 21-percent growth was seen for the sector last year. The voice sector employs 493,000, accounting for 64 percent of the sector’s direct employees, and $9 billion in revenues, which is 67% of the industry’s total returns.
According to Hernandez, some of the challenges that the sector will face in the coming years are talent shortage, high attrition rate, and maintaining the marketability of the country as an outsourcing hub.
Meanwhile, Senator Edgardo Angara reiterated during the recent International Contact Center Conference and Expo that the country has enough talent but their skills do not match the requirements. One of the solutions, he said, is the K-12 education program. He added that the government is thinking of providing P1 billion worth of investments on education and talent development to improve the skills and potential of candidates.
Indian IT Spending to reach $71.5 billion in 2013
New services such as cloud integration, mobile, social media processes and metrics under the information technology (IT) sector are anticipated to fuel IT spending in India, as global IT outlays are slowing down.
According to global research firm Gartner, India’s IT spending can post a 7.7% increase, reaching $71.5 billion next year, from the $66.4 billion forecast this year.
According to Gartner’s Senior Vice-president and global head of research Peter Sondergaard, India remains bullish and competitive, even with the continuous increase in wage rates. He added that even if the budgets of clients are smaller, IT providers in India are thriving as they are making the most out of alternative sectors and processes.
It is also projected that by 2016, IT spending in India will be subdivided into telecommunications, IT services, and hardware. Telco is seen to become the highest, amounting to $47.8 billion, followed IT services and hardware.
Meanwhile, Partha Iyengar, Head of Research for Gartner India, said for the Indian market, mobile gadgets will still be the fastest growing segment, taking up 42%, and will likewise account for almost 26% of the country’s IT spending.
It was found out through a Gartner survey that CEOs are highly considering investing more on technology as it will become a crucial factor for businesses in the future. CIOs are predicted to create workable strategies that will coincide with the changes in their respective industries and economy.
Rural Mindanao Prepped for BPO Operations
During his speech at the 4th International Outsourcing Summit in Makati City, President Benigno Aquino III is hopeful that the framework agreement between the Moro Islamic Liberation Front (MILF) and the Aquino administration will help boost business process outsourcing (BPO) investments in Mindanao. In this agreement, it is stated that the Autonomous Region for Muslim Mindanao (ARMM) will be replaced by a new political entity which will be called “Bangsamoro”.
President Aquino added that they are striving to develop rural areas in the Philippines for future investors and projects. They are hopeful that someday, IT-BPO firms will operate in the Bangsamoro region. Furthermore, he said jobs produced by BPO firms in provinces, including the New Wave Cities, will provide a positive effect to the entire nation.
The outsourcing industry is considered as a main revenue generator of the Philippine economy. It is expected to post $25 billion in revenues by 2016.