Brain drain concerns BPO sector.
by Malou M. Mozo
Sun.Star Daily Cebu
WHILE the growth in domestic consumer and real estate markets is fueled by the increase in remittances of overseas Filipino workers (OFWs), industry leaders from the business process outsourcing (BPO) sector continue to view this as a “social concern.”
Alfredo Ayala, Livelt Solutions Inc. chief executive officer, said the exodus of Filipino workers abroad poses a threat to the industry’s labor supply, causing a mismatch of skills.
“The world has finally discovered the Philippines as the next big thing in the outsourcing business but the fundamental issue is supply since more highly skilled Filipinos are working abroad,” Ayala said.
Angelo Timoteo Diaz de Rivera, Commission on Information and Communications Technology (ICT) commissioner and director general, admitted that the migration of highly skilled workers is still a growing challenge for the industry which is why the National Government is coming up with measures to build up opportunities for workers when they return back to the Philippines.
The knowledge these OFWs gained from their work experience abroad will be very beneficial for the Philippine ICT in the long run, de Rivera said.
“But the problem of migration is something we can’t do anything for the moment,” he admitted.
Ayala also added that apart from brain drain or the decrease in the number of skilled workers, the industry is commonly perceived as a “dead end job.”
On the contrary, he said the BPO industry provides a huge opportunity for Filipinos to earn as high as P100,000 a month without having to leave their families for work overseas.
Career advancement
“There is also a potential for career advancement,” he added.
Maria Lourdes Suson-Go, managing director of Northern TranscriptionWorks Inc., also stressed the lingering problem of low-cost labor and a ready pool of English-speaking employees.
She said only about two to five percent of applicants in the industry are hired due to lack of fluency in the English language, job knowledge, among others.
Go said both the public and private sectors need to invest on productivity tools, like seminars and exams, as an additional support to augment the skills of the near-hires.
Cebu has seen the mushrooming of training facilities in the last two years.
The centers offer additional training and support for those aspiring to work as call center agents and medical transcriptionists.
“This is a business of human resource so there must be a strong cooperation between government and the public sector,” said Go.
In general, though, the industry leaders believes the country’s BPO industry will remain bullish and will still be the major player in the Philippine economy, generating more revenues and job opportunities.
Going beyond
Ernest Cu, president and chief executive officer of SPi Technologies, reveals a robust growth, particularly in BPO firms involved in healthcare and legal services.
“In healthcare, it will go beyond medical transcription and will evolve to medical billing, collections and taking care of a hospital’s revenue cycle,” said Cu.
“The legal services in the Philippines will be similar to the United States, which evolves from coding to legal reviews of court documents,” he added.
Meanwhile, Ayala, who is also chairman of the Business Processing Association of the Philippines, said the country’s BPO industry is targeting to generate $5 billion this year and employ around 400,000 Filipinos.
He said if the industry continues to grow at an average of 40 percent in the next three years, revenues could grow to $12 billion or about 10 percent of the Gross Domestic Product and employment could reach 900,000 by 2010.
“This is a sunrise industry, and it’s very early in the morning,” said Ayala in a panel discussion during the 2nd Annual Philippine Investment Conference Friday at the Shangri-la’s Mactan Island Resort and Spa.