The Business Process Outsourcing (BPO) industry is on track to meet its year end growth target as it employed 345,000 workers during the first half of the year.
“The industry employed 345,000 workers for the first six months of the year and we are hoping that we will meet our yearend target of 420,000,” Business Process Outsourcing Association of the Philippines (BPAP) president Oscar Sanez said in an interview.
The offshoring and outsourcing (O&O) industry earned $5.8 billion for the first half of this year. “We are on track to meet our full year revenue target of $6.8 billion,” Sanez said.
According to Sanez, O&O revenue for the first six months of the year is up 1.8 percent when compared to the same period the previous year.
Sanez said the slowdown in the world economy had no adverse effects on the industry. “The first half results are encouraging. I think we will meet our target stated in the 2010 roadmap.”
Sanez noted that the Philippines ranked third in the O&O industry. India is still number one followed by Canada.
The Philippines is a good location for outsourcing because of the time zone.
However, Sanez said the problem of skilled workers may pose as a threat. “We are really doing our best to address this issue.”
Foreign businessmen have said that the problem of education has had a negative impact on the number of qualified workers available.
In fact, the education problem in the country will have an adverse effect on the investment behavior of businesses, European Chamber of Commerce of the Philippines (ECCP) executive Henry Schumacher said.
“We (businesses) can’t wait (for the government to implement reforms). The jobs will have gone somewhere else,” Schumacher warned.
He said if the private sector will wait for the government to solve the education problem then it will be too late. The country’s ASEAN neighbors, specifically Vietnam, are actively attracting foreign investors and are giving attractive packages for businesses in order to set up shop in their respective countries.
“Intervention coming from the private sector is needed,” Schumacher said.
Under the private-public partnership in education, Schumacher said the employers would have to intervene in the production of people. For instance, he said businesses must have an input on the curriculum development of various colleges and universities.