BPO jobs to reach 1 million in 2010

By Paolo Romero (The Philippine Star)

MANILA, Philippines - The booming business process outsourcing (BPO) industry in the country is expected to employ at least one million Filipinos by 2010, Malacañang said yesterday.

A Palace statement said that although BPOs started in the country in the 1990s, the industry “really took off” shortly after President Arroyo assumed power in 2001.

“From 4,000 in 2001, the number of BPO workers reached 350,000 in 2007, spurred on in part by the country’s stable economic environment and by aggressive marketing abroad by the President,” the Palace said.

“There were 400,000 workers as of February 2009. It is estimated that by 2010, available jobs will be 900,000 despite the ongoing global economic slowdown,” the statement reads.

It said Mrs. Arroyo put up the “Cyber-Corridor” information and communications technology (ICT) channel running the length of the Philippines that interconnects BPO service centers all over the country, “to efficiently bring together cyber service providers and BPO locators.”

“The goal is to employ one million workers by 2010,” the statement said.

The sector’s future growth can be traced in part to the country’s two-pronged strategy. While the country will continue to offer voice-activated services, which require facility in English as well as other languages, it will also branch out to non-voice services such as medical transcription and animation as well as to the more lucrative development of software.

Mrs. Arroyo has acknowledged the sector’s remarkable performance that has helped the country achieve positive growth rates despite the global economic slowdown.

The President said the fast development of the BPO industry in the country is an example of an industry that nobody ever thought before would become a driver of growth.

“This is an example of what I said that we want to create jobs so that, for (Filipinos), it will be a career choice to go abroad and not the only choice,” Mrs. Arroyo has said in her speeches.

As of end of 2008, the sector generated $6.1 billion in revenues and is projected to reach $13 billion in 2010. This is only 6.7 percent of the estimated $326 billion global ICT outsourcing market, according to data issued by the Canada-based ICT research and advisory firm XMG Global.

The Philippines is the third top performing offshore country in the Asia Pacific, next to India and China. The Philippines is aiming for a 10 percent market share as it sells its many advantage to companies in the United States and Europe, the Palace statement said.

“These includes a steady supply of competent and educated workers, improving telecommunications infrastructures, and government incentives,” it said.

Although the majority of BPO companies are located in Metro Manila, there is a marked migration into other key economic centers of the country such as in Cebu, Cagayan de Oro, Subic, Bacolod and Baguio, to either be closer to their employee base or, in part, to keep their costs, such as leases, as low as possible.

To further aid the sunrise industry, government has allocated P350 million for a training program called PGMA-Training for Work Scholarship Program (PGMA-TSWP) through the Technical Education and Skills Development Authority (TESDA) in partnership with the Business Process Association of the Philippines (BPAP). The training program does not only cover English language proficiency but also the use of computers.

“Likewise, government is offering significant fiscal and non-fiscal incentives to attract more foreign direct investments, primarily through its Cyber Corridor project, which is part of the President’s 10-point agenda,” it said.

DOLE: Pinoys have better jobs

Meanwhile, the Department of Labor and Employment (DOLE) reported that Filipinos have better jobs now despite the lingering effects of the financial crisis.

DOLE officials said the quality of employment has improved for Filipinos as indicated by results of the latest National Statistics Office (NSO) Survey.

Based on the July 2009 Labor Force Survey (LFS), DOLE said the number of wage and salary workers rose by 1.3 million compared to the same period last year, while the number of persons in full-time employment increased by half a million.

DOLE further noted that except for the Bicol region, employment rate in all regions posted growth with the National Capital Region (NCR) positing the highest gain of 142,000 more workers.

Underemployment or the number of workers looking for additional jobs went down from 21.1 percent last year to 19.8 percent.

“The drop corresponds to a reduction of 259,000 in the number of underemployed, which now stands at seven million,” DOLE officials noted.

The rate of visible or time-related underemployment dropped by a full percentage point over the period – from 12.1 percent to 11.1 percent.

Employment also continued to expand by 2.6 percent as the economy showed signs of recovery from the global financial crisis in the second quarter of the year.

Growth was posted strongest in the service sector (5.4 percent) negating the modest growth in the industry sector (2.7 percent) and the decline in the combined agriculture, fishery and forestry sector (-1.3 percent).

DOLE is currently developing a new skills registry system in an effort to make it easier for the government to assess the demand for skills in the labor market.

Acting Secretary Romeo Lagman said the envisioned skills registry has been piloted in select regions, provinces, cities and municipalities, and its full implementation will kick off in October.

Lagman said the planned National Skills Registry System (SRS) will combine the existing skills registries of PhilJob.net and the Public Employment Service Office.

He said the SRS is a computerized system which captures and updates in a register skills and qualifications of interested workers.

The system also lists down establishments and their job vacancies in the community for quick access by jobseekers and employers, both local and foreign.

Unlike the existing skills registries of PhilJob.net and the PESOs, the SRS is live and dynamic because it will be regularly updated and tied up to the relevant educational background of jobseekers and the needs of the employers.

“Ultimately, the SRS will solve the country’s perennial problem of jobs mismatch,” Lagman said. – With Mayen Jaymalin

RP's poor showing in business surveys may harm BPO sector

By Ma. Elisa P. Osorio (The Philippine Star)

The Philippines may lose its edge against its competitors in the business process outsourcing (BPO) due to the country’s poor showing in business surveys.

Preliminary results of an industry survey conducted by the Business Processing Association of the Philippines (BPA/P) and Out-source2Philippines (O2P) suggest that persistent negative publicity–such as poor showings in business surveys –are taking a toll on the Philippines’ brand image.

The survey showed that negative perception of the Philippines, including the tight labor market for knowledge workers, is increasingly viewed as a significant risk factor by the industry.

In spite of this, industry executives remain upbeat on the Philippines and still anticipate a further expansion. Respondents to the survey were BPO executives working in the Philippines.

The complete results will be released at the end of the month in the next regular CEO breakfast briefing conducted by BPA/P and O2P.

The preliminary data show that 51 percent of respondents indicated that “negative perception” of the Philippines is a level one, two, or three risk factor associated with doing business in the Philippines, and 20 percent said it is a level one factor.

A slightly lower percentage, 49 percent said the “tight labor market” is a level one, two, or three risk factor in their view, but 23 percent of respondents said it was a level one risk factor.

However, when respondents were asked to gauge the competitiveness of the Philippines, a majority of respondents or 56 percent indicated that doing business in the Philippines is less risky or much less risky than doing business in India.

India dominates the BPO industry, and is the world’s biggest provider of outsourced services. The Philippines is generally considered the number two provider of offshore outsourced services.

About 45 percent of respondents said that compared to India doing business in the Philippines involves about the same risk, more risk, or much more risk.

BPA/P chief executive Oscar Sañez said that the Philippine BPO industry is on track to expand approximately 20 percent this year, from $6.1 billion last year. The BPO industry employs approximately 400,000 Filipinos in a wide range of sectors.

RP to benefit from Satyam scandal, lawmaker crows

Instead of urging local BPO players to check their books to avoid a repeat of Satyam fraud scandal here, a lawmaker chose to point out that the Philippines may stand to benefit from the debacle that hit one of India’s outsourcing giants.


Catanduanes Rep. Joseph Santiago, the chairman of the House information and communications technology committee, said in a press statement that Saytam’s freefall may drive outsourcing traffic to the country.

"The Philippines is in a superb position to capture whatever outsourcing business that India stands to lose on account of Satyam’s troubles," Santiago stated.

The Indian firm’s woes started on January 7, 2009 when chairman and co-founder B. Ramalinga Raju admitted massive irregularities in the company’s accounts, listing assets that were actually non-existent.

Satyam’s entire board has since been fired, while key executives, including Raju and his brother, were arrested and charged with various criminal offenses under Indian laws.

Santiago said the Philippines is fortunate not to have experienced a scandal of similar magnitude.

"This could be due to higher corporate governance standards and more rigorous controls here," he said.

But, while initial reactions point to the Philippines as a potential beneficiary of Satyam’s misfortune, it could also be that the local BPO market may be adversely affected since Western companies may hold back or avoid outsourcing altogether because of the exposed irregularities.

Financial Insight, an advisory firm owned by IDC, said there’s a slim chance that Satyam may survive even with the dire prognosis.

"Essentially, in the short term, it should be business as usual. IDC believes that it would in the best interest, both financially and as a business continuity measure, for organizations to continue their existing relationship with Satyam," it said.

The analyst firm said that if a couple of the big organizations panic and decide to discontinue with Satyam, it would not only delay, halt, or hamper their existing projects and result in massive unplanned cost, it would also subject them to the torment of finding another equally large services partner, qualify them, negotiate with them, and thereafter go through the arduous training process with the new team.

In IDC’s opinion, Satyam may eventually be put up for sale and is likely to be acquired in its current state by the highest bidder.

As for India’s vaunted outsourcing industry, IDC said the future still looks good. "There is no doubt that further questions will be asked of the India-based players, as well as the long-term viability of the offshore model, but IDC believes that Outsourcing India will emerge from this scandal with its reputation tested, but better for it." By MELVIN G. CALIMAG - Manila Bulletin

No let-up in hiring new 'Pinoy' workers for RP-based BPOs, says TUCP survey

Despite what many fears to be a looming global financial crisis, major Philippine business process outsourcing (BPOs) providers, mostly contact or call center operators, remain as among the top job providers in the country with their unabated recruitment of fresh Filipino workers and staff.

According to a survey conducted by the Trade Union Congress of the Philippines (TUCP), at least 23 BPO providers are still hiring new personnel, mainly contact center agents as well information-technology and administrative support staff.

No less than President Gloria Macapagal-Arroyo cited BPOs as the one of the major contributors in her Admistration's job-generation program. Under President Gloria Macapagal-Arroyo, the Philippines had emerged as a BPO top global destination, second only to India.

The President attributes the rise of the Philippines as a top BPO destination, owing to the Filipinos' world-class skills and proficiency to speak and write in the English language.

"A number of BPO providers are drafting additional staff on account of expansion, while others are requiring fill-in personnel due to attrition, or the loss of employees," TUCP secretary-general and former Senator Ernesto Herrera said.

Among the firms enlisting hiring a new workers are Aegis PeopleSupport Inc., Affiliated Computer Services Inc., APAC Customer Services Inc., Convergys Philippines Services Corp.;

Dell International Services Philippines Inc., Deutsche Knowledge Services Pte. Ltd., eTelecare Global Solutions Inc., Hinduja TMT Ltd.; HSBC Electronic Data Processing Philippines Inc. and ICT Marketing Services Inc.

JP Morgan Chase Bank N.A. Philippine Customer Care Center, NCO Group Inc., NuComm International Inc., PeopleTalk Contact Solutions Inc., Stellar Global Solutions Inc., Synnex-Concentrix Corp.;

Telephilippines Inc., TeleTech Holidngs Inc., Telus International Philippines Inc., VXI Global Solutions Inc., West Contact Services Inc. and WinSource Solutions Inc. are all likewise still looking for new staff.

Herrera cited the case of APAC, which is recruiting 1,000 agents and support staff, including those meant for deployment to a new contact center Tacloban City.

He also cited Deutsche Knowledge Services, which is recruiting 900 financial, business and accounting associates to provide back office support to its global financial operations, as well as ICT Marketing Services, which is hiring 400 agents, including those meant for deployment to a new contact center in Cabanatuan City.

Most of the firms require only two years of college education or "some college (units)" to qualify for prospective agents.

He said even high school graduates with exceptional English or foreign language skills could readily qualify for employment, according to Herrera.

The TUCP survey also showed that a number of BPO providers have a "desperate need" for contact center agents or back office staff with bilingual or multilingual skills.

Among these firms enlisting bilingual or multilingual staff are PeopleSupport, Convergys, Synnex and Telephilippines. They are scouting for full-time or part-time staff that can speak Spanish, Cantonese, French or Japanese.

WinSource is also looking for electronic mail support agents who can write in Spanish, Korean or Japanese, as well as outbound contact center agents who can speak Mandarin, Spanish, Korean or Japanese.

Meanwhile, the global manufacturing and technology giant Emerson Electric Co. is also looking for in-house contact center staff that can speak French, Spanish, Italian, Dutch, German, Finnish and/or Russian. (PNA)

Speaking Out: Attraction of BPO industry

Atty. Ignacio R. Bunye - Tempo Editorial

Just a few years back, working in the business process outsourcing (BPO) industry became the "in" job for young Filipinos hoping to earn impressive paychecks.

Our well-known command of the English language and sunny, good-natured disposition as a people—both requirements to work in the booming industry—were brought to the fore as buildings housing "call centers" mushroomed all over Metro Manila and other major cities.

Today, as the ongoing financial crisis throws its cloak of gloom over the world, the BPO industry has become more than the "in" thing. It is now seen as a ray of hope and another source of resiliency for the Philippine economy.

In addition to the Overseas Filipino remittance, Bangko Sentral ng Pilipinas (BSP) Gov. Amando Tetangco Jr. has called the BPO industry as "one of the bright spots in the economy" that the country could take advantage of. He explained that the Philippine-based BPO centers would maintain their competitiveness as companies become more cost-conscious.

Our other economic managers agree that the local BPO sector is less likely to be affected by the financial crisis because firms based in the United States and Europe would be forced to cut down their costs and outsource their operations in the Philippines where labor is cheaper.

At the onset of her administration, President Gloria Macapagal Arroyo saw the bright prospect of the BPO industry. Immediately, President Arroyo launched an ambitious program to create and develop a "cyber-corridor," where investments in information and communications technology are to be concentrated. She complemented this with a manpower training program, quarterbacked by Tesda Chair Augusto Syjuco, which provided scholarship assistance in "call center English".

From eight provinces, the "cyber corridor" has been configured by Department of Trade and Industry Secretary Peter Favila and the Commission on Information and Communication Technology Chair Ray Anthony Roxas-Chua III, in cooperation with the Business Process Outsourcing Association of the Philippines, to now include 23 "next wave centers" -- Tuguegarao, Baguio, Dagupan, Urdaneta, Cabanatuan, Clark, San Fernando in Pampanga, Subic, Cainta, Bacoor, Sta. Rosa, Lipa, Batangas City, Camarines Sur, Legaspi, Iloilo, Bacolod, Dumaguete, Cebu, Leyte, Cagayan de Oro, Davao, and General Santos City.

Among those who were impressed with the President’s vision for the BPO industry and the world class Filipino workforce was Kenneth Tuchman of Teletech Telesystems, Inc. which has since joined the BPO bandwagon.

Starting with only 5,000 employees in 2005, Teletech currently employs 18,500 workers in its 12 customer management centers in Fort Bonifacio, Pasay, Novaliches, Cainta, Dumaguete, Bacolod, Lipa, Cebu, Bacoor, Iloilo, Pampanga, and Sta. Rosa Laguna. Recently, Teletech opened another BPO center in San Fernando in line with its plan to reach an employment goal of 25,000 in 2009.

Tuchman proclaims he has a soft heart for the Philippines. During his meeting with President Arroyo in Davos, Switzerland at the sidelines of the World Economic Forum in February 2007, Tuchman revealed that he made his first buck as a teenage entrepreneur in the 70’s importing pukka shells from the Philippines.

Trade Secretary Peter Favila, who, together with this writer, also sits at the Monetary Board, said Teletech’s latest move reaffirms the economic management team’s position that the call center sector would not be entirely affected by the looming global financial crisis.

Others have remained just as bullish in the Philippines. The European financial giant Deutsche Bank plans to increase its workforce in the Philippines to about 2,500 from 1,600 next year.

Chris Sullivan, chief executive officer of Deutsche Knowledge Services Pte. Ltd. (DKS), said that the German bank has migrated more than 30 percent of its global processes in offshore firms.

Sullivan likewise revealed that Deutsche Bank is set to target an increase in the ratio to 80 percent, particularly in the light of the present global financial crisis. He said that of the operations to be brought offshore, 60 to 70 percent would be based in the Philippines.

London-based HSBC also made another happy announcement last week. HSBC country manager Mark Watkinson said they plan to open up 1,000 new jobs in their global services hub near the University of the Philippines campus in Quezon City by next year.

Watkinson also revealed that the HSBC is considering other opportunities in the BPO sector aside from voice or call centers, which he said "the Philippines is known to be very good at."

Indeed, while the Philippines may not be immune from the global financial crisis, it certainly has some strong buffers, among them the BPO sector, in the weathering the storm.

Call center agents leave industry despite boom

WHILE the Philippine contact center industry is projected to grow at a faster pace this year than its Asian counterpart, the number of Filipino agents leaving their work is increasing, according to an Asia Pacific research and analyst firm.

In a briefing, Catriona Wallace, Callcentres.net president, said the rise of the contact center industry in the country is an extraordinary period of growth, with seat size set to increase by 23 percent in the next twelve months.

Wallace said the total number of contact center seats in the country is estimated to be 129,000 this year from 105,000 last year.

She attributed the increase in growth to the resilient domestic economy, technology and shift of clients preference to Filipinos from Indian nationals.

Wallace said 53 percent of contact center agents servicing the domestic economy are Filipino, while 47 percent are international.

It its 2008 Asian Contact Centre Industry Benchmarking Report, Callcentres.net said the country’s industry growth is higher than that of Malaysia, which is growing 17 percent; Singapore, 8 percent; Thailand, 15 percent and India, 10 percent.

However, Wallace said the industry must continue to address its human resource challenges as 51 percent of the agents have left the contact center industry, while 49 percent have moved to another contact center.

She said the reasons for leaving the industry are lack of career path, uninteresting work and below industry-rate remuneration.

The Filipino contact center agent receives $3,964 annually, lower than in Thailand with $4,877, Malaysia, $5,199 and Singapore, $16,884. But, higher than in China, $2,539 and India, $2,862.

Don Lee, director of Asia Pacific, Autonomy etalk, said the high levels of employee turnover can have a devastating effect on all aspects of customer service, disrupting operations and decreasing customer satisfaction, as well as increased costs for new high training.

But Wallace said, “We are seeing some improvement in agent tenure in the Philippines, with the average time an agent remains working in center now being 22 months, up from 18 months in 2007.”

The research was sponsored by Autonomy etalk and Genysis, an Alcatel Lucent company. The study interviewed 539 contact centers executives representing 2,488 contact centers. By Darwin G. Amojelar, Manila Times

BPO firms clinch deals worth $40M

Business process outsourcing (BPO) companies clinched $40 million worth of deals at the two-day e-Services Global Sourcing Conference held in Pasay City, the event organizer Center for International Trade Expositions and Missions (CITEM) said.

This year’s e-Services hosted a record number of local and foreign buyers in attendance, including 140 exhibitors, the state-run CITEM said.

The current realty and construction boom has increased outsourcing demand for designers, it added.

New partnerships formed at e-Services included one between a Swedish company and five Philippine BPO firms on establishing an offshore IT vendor business, CITEM said.

A corporate research company in the United Kingdom is planning to expand its BPO services in the Philippines, it also said.

There were also about 60 business meetings arranged between Philippine companies and foreign delegates from Japan, the United Kingdom and Sweden, it added.

The conference paved the way for industry players to move on with their Roadmap 2010, which identifies aggressive talent development as the most important factor for growth, followed by the need to establish a first-rate business environment, and the promotion of the “next-wave cities” for BPO operations.

Oscar Sañez of the Business Processing Association of the Philippines said that if the three areas were addressed, the industry stood to grow 40 percent annually through 2010. INQUIRER.net

DTI names four more ‘next-wave’ cities

Balanga, Cainta, Legazpi and Urdaneta are the latest to be added into the government’s list of cities groomed as investment destinations for business process outsourcing (BPO).

Representatives from each of these four cities presented the respective local initiatives at the ongoing eServices conference.

Since 2005, the Department of Trade and Industry (DTI) has included about 45 so-called "next wave" cities list.

The Commission on ICT (CICT), meanwhile, has certified 20 of these cities as ICT hubs, based on criteria such as worker supply, telecom infrastructure and other factors necessary to sustain a local BPO industry.

The goal of this campaign is to expand the BPO industry nationwide in anticipation of further investments from the global market.

"We are not concerned about demand. It’s the competitiveness we want to maintain," said CICT chairman Ray Anthony Roxas-Chua, in a briefing.

The BPA/P (Business Process Association of the Philippines), which is working with DTI and CICT, is targeting to grow industry revenues from $5 billion (as of 2007) to at least $12 billion by 2010.

Cebu and Davao were among the first to be recognized by the DTI as investment destinations outside of Metro Manila. Since then, Cebu has attracted more 30 investors (including Accenture, IBM and India's Wipro) while Davao currently has seven locators (including call centers PeopleSupport and Link2Support), according to DTI's report.

Overall, there are at least 90 companies that either invested or expanded their operations in these cities, according to DTI. By Lawrence Casiraya - INQUIRER.net

Study bares 11 BPO sites outside MM

The well known alternatives are Baguio City, Clark and Subic, Cavite City, Sta. Rosa in Laguna and Lipa in Batangas. These are certainly easy to reach from Manila, with good infrastructure and connectivity to boot.

By Riza T. Olchondra - Philippine Daily Inquirer

THERE is no more question that the Philippines is a prime location for outsourced services, tasks for which a company hires another firm to do, and for offshore services, so called because the services are contracted to a company located outside the country where the client is headquartered.

A study by the Institute for Development and Economic Analysis Inc. (Idea) said that the Philippines is earning over P3 billion annually from the outsourcing and offshoring industry, with most of the players located in Metro Manila.

As these companies expand to cope with exponential growth, rental rates and labor costs skyrocket in Metro Manila, the study said. This raises the pressure to find new locations where there is enough labor pool.

The well known alternatives are Baguio City, Clark and Subic in Pampanga, Cavite City, Sta. Rosa in Laguna and Lipa in Batangas. These are certainly easy to reach from Manila, with good infrastructure and connectivity to boot. But what of others?

Idea chief Cayetano Paderanga Jr., former director general of the National Economic and Development Authority, said that outsourcing and offshoring companies have 11 other sites to consider.

Up north, Tuguegarao City and Cabanatuan City were found to be viable alternatives to Baguio.

Going to the Visayas, the Bayan-commissioned study showed Iloilo, Bacolod, Camarines Sur, Dumaguete and Leyte to be the best sites south of Batangas.

Further down south, Davao City, Cagayan de Oro City, Iligan City and South Cotabato are giving Metro Manila a run for its money.

"What these locations offer are relatively lower cost of doing business, nominal minimum wage, and population density compared with Metro Manila. While Manila still have more graduates in offshoring-related fields who are fluent in English, these locations have enough English-speaking graduates to sustain supply. They may even offer less attrition because the young graduates would be employed near the home, unlike their counterparts in Metro Manila," Paderanga said.

He noted that in general, the alternative sites present minimal business risks from natural calamities and crime.

In the end, though, studies can only serve as guides and it is up to outsourcing and offshoring businesses to check out the alternative sites for themselves, said Paderanga.

"We cannot endorse a certain location, the company has to look through the data and decide where it will actively scout for a suitable site. The Philippines has many locations to choose from, even some with tourist attractions thrown in as a plus-factor. The important thing is that alternative sites are maximized to sustain supply for this fast growing industry and at the same time spread development outside Metro Manila," he said.

The study was commissioned by Bayan Telecommunications Inc., a local phone company which offers telecommunications products and services geared for outsourcing and offshoring companies.

Clark BPO firm secures tax incentives

NCO Philippines Clark Inc., an information and communication technology company has bagged tax incentives and other perks from the Board of Investments (BOI), the agency said Wednesday.

The firm’s project involves the establishment of a 340-seat contact center facility with total investment of P150 million at the Philexcel Business Park, Clark Freeport in Pampanga.

The investment covers the Information Technology equipment, leasehold, furniture and fixtures and pre-operating expenses and working capital. This new contact center will generate 425 job opportunities at full capacity.

NCO said the facility will provide services like technical support, customer support, directory assistance, and outbound credit and collections.

“The computed investment cost per seat is $3,364 [excluding working capital at P44 to a dollar], which complies with the Board of the Investments minimum requirement of $2,500 cost per seat for call-center projects,” the company said in its application letter to the BOI.

The company’s market includes US outsourcing companies like AT&T, Aegon, Citicorp, Microsoft and Amazon.
--Katrina Mennen A. Valdez - Manila Times

Study says BPO firms should go where good schools are

INQUIRER.net

MANILA, Philippines -- Business process outsourcing (BPO) firms should locate where good schools are, the head of a research firm said.

This was the suggestion made by Cayetano Paderanga Jr., chair of the Institute for Development and Economic Analysis (IDEA) on how the industry could find more people to run its fast-growing operations in the country.

IDEA has recently been commissioned by Bayan Business, the corporate solutions provider of Bayan Telecommunications Inc. (Bayantel), to conduct a study on the Philippine outsourcing and offshoring industry.

According to IDEA's study, the pool of skilled labor is being depleted due to "diminishing focus on improving educational systems and standards."

The continuing brain drain and attrition rate in the Philippines has been identified as among the threats to the local outsourcing industry, IDEA's study said.

"A threat bigger than labor migration is the migration of Filipino mentors as this means passing on the skill set to other countries," according to the study, a copy of which was given to local media this week.

Paderanga, however, believed that there are more talent people outside of the National Capital Region and other mature centers where most outsourcing firms are located.

The study said the local industry should promote locations outside of the NCR and tap talents outside established centers.

"The industry is worried about supply. So I believe the quality of education in schools, high schools in particular, should be improved. Teachers should also be improved," he said.

The study has provided a comprehensive data on "alternative destinations" where outsourcing firms could tap a more highly skilled labor pool.

Metro Manila currently houses about 80 percent of the outsourcing firms in the country.

CICT wants to become lead agency for BPO

By Lawrence Casiraya - Inquirer

The Commission on ICT aims to become the “single-point of contact” for investors in the outsourcing industry.

“If there are concerns (from investors), they can come to us,” said CICT chair Ray Anthony Roxas-Chua in an interview.

The CICT recently signed a formal partnership with the Trade and Industry department's regional operations group to implement an ICT strategic roadmap. The partnership also involves the Business Process Association of the Philippines (BPA/P).

The agreement basically aims to mobilize all three parties in developing regional ICT hubs that will accommodate BPO investors.

Under the partnership, CICT's role will be to provide technical assistance. The DTI, meanwhile, will be working with local government units.

“Based on industry feedback, investors cannot figure out who exactly in the government is championing BPO,” Roxas-Chua said.

“What we want to become is the coordinating body for different agencies involved,” he added.

BPA/P is targeting to reach $12 billion in revenues and add half a million more workers by 2010.

“These are achievable goals but all stakeholders need to work together,” Roxas-Chua said.

CICT, DTI team up to pursue outsourcing growth

By Lawrence Casiraya
INQUIRER.net

The Business Processing Association of the Philippines (BPA/P) is collaborating with two key government agencies to develop more ICT hubs that can accommodate outsourcing-related investments.

BPA/P, an umbrella group covering different segments within BPO, announced it will sign a memorandum of agreement on Thursday with the Commission on ICT (CICT) and the Department of Trade and Industry-Regional Operations Group (DTI-ROG).

DTI undersecretary Carissa Cruz-Evangelista and CICT chair Ray Anthony Roxas-Chua will represent their respective agencies in the MOA signing.

This collaboration is aligned with BPA/P's target to grow industry revenues to at least $12 billion and add more than half a million more workers by 2010.

According to BPA/P, the partnership with the government will cover the following initiatives:

• developing an industry-wide outsourcing and offshoring "scorecard" which would identify each location's capabilities in terms of human resource, business environment, ICT infrastructure, telecommunications cost, real estate, etc.

• institutionalizing the ICT councils within these designated hubs representing the private sector and local government units

• creating ICT strategic plans for these hubs, strengthening their available ICT resources, developing niches/centers of IT excellence, and assisting in marketing and promotional efforts

The overall goal is to generate more revenues for the industry and employment opportunities in the provinces.

Under the current administration's CyberServices Corridor project, the CICT has already identified some 35 locations nationwide that can be developed into ICT hubs.

PCCI exec mulls BPO training centers in provinces

By Lawrence Casiraya
INQUIRER.net
MANILA, Philippines -- An official of the Philippine Chamber of Commerce and Industry (PCCI) wants to promote the business process outsourcing (BPO) mindset among businessmen at the provincial level.

George Kintanar, PCCI ICT committee chairman, has proposed the establishment of local ICT "chapters" among businessmen to different local chambers of commerce nationwide.

Kintanar is also chairman of the Philippine USA Business Club (PUBC), which links with Filipino business communities in the United States.

"The plan is for PCCI/PUBC to create and establish ICT local chapters for businessmen nationwide," Kintanar said in his proposal sent via email.

"PCCI/PUBC should already identify BPO champions in the local business chambers of commerce all over the country and create BPO training centers of excellence," he added.

He noted that the emergence of the Philippines as a BPO destination was driven by word-of-mouth from satisfied customers overseas.

While demand is still high and the market for outsourced services still valued at "trillions of dollars," Kintanar noted that the country needs to invest in training in order to keep up with the great demand.

According to him, the problem is compounded by the departure of qualified Filipino workers for other countries, reaching about a million for 2006 alone.

Kintanar said: "My earlier advise to local businessmen then was to invest in back office provisioning but now we should also include BPO training centers to support the huge demand for human resource in the sector."

As for marketing the Philippines to investors, he said the large population of Filipino Americans abroad can be tapped as a "steady and continuous supply of BPO marketing advocates."

"While back home we continue our national BPO training programs through the educational institutions of learning which PCCI/PUBC intends to spread at the grassroots level," he said.

Increased training opportunities sought for BPO sector

Demand for workers seen to hit nearly 1M in 2010

By Michelle Remo - Inquirer

THE NATIONAL Economic and Development Authority has urged the government and the private sector to provide more training opportunities for people wanting to get employed in the business process outsourcing industry.

This sector has the potential of becoming a much bigger contributor to the overall growth of the economy if the country can provide the amount of labor required by investors, NEDA Director General Romulo Neri said.

In a paper distributed to the media, the NEDA, quoting industry projections, said the total number of people employed in the BPO industry has the potential to increase by nearly 200 percent to 920,764 in 2010 from the projected 343,013 this year.

Of the projected number, the call center subsector is seen to account for the biggest share of 331,000.

The BPO industry is also seen to generate a gross revenue of more than $12 billion by 2010 from only a little about $3 billion last year.

The NEDA said the revenue-generation performance of the BPO sector was fast catching up with the remittances sent by overseas Filipino workers, which hit $12 billion last year.

The booming BPO industry was partly credited for the increase in foreign direct investments in the Philippines in 2006. From only $1.854 billion in 2005, FDI increased by 26 to $2.345 billion last year.

Earlier, the Department of Labor and Employment raised concern over the mismatch between the qualifications of college graduates and the skills required by the companies investing in the Philippines.

"The BPO industry has a huge potential (in providing more employment) and so we have to have more training so that we can supply the labor demand," Neri said.

President Gloria Macapagal-Arroyo, in her State of the Nation Address last month, said her administration was targeting to make