Supply-demand mismatch in Philippines BPO

September 21, 2011: From 2006, the Business Process Outsourcing (BPO) sector in the Philippines has never turned back. Growth rate was amazing in this past five years and the industry has matured well to become most preferred destination for outsourcing. If the current trend is followed then the company is expected to grow at a rate of 25% every year which will also require around 127,000 fresh recruitments, but demand and supply mismatch of the employees is growing as a barrier for that.

Even though the Philippines BPO industry has extended their reach all around the world, the work force in the sector still lacks proficiency in English language. As far as an outsourcing company is concerned, one of the basic requirements is the availability of well equipped work force with fluency in English language. Majority of the clients are from US and UK and thus it is clear that why it is important that the employees should be well versed in the language.

According to the BPO companies there is not enough qualified and educated workforce available in the country and as a result the time and investment incurred in training the recruited talent is dully high. If 100 applications are short listed, we could only hire to a maximum of 8 among them towards the end of the day, a spokes man in the BPO sector said. Surprisingly, the positive side is that the numbers of applicant are increasing every quarterly, which means that the reputation and status of the sector is still good enough. Another spokes man suggested that Philippines BPO industry has been a gate way of successful career for many. People believe that the career path is very good and can achieve financial stability at the earliest. There are many examples of very young talents who started their career as a basic employee and today leading at some top positions.

Understanding the situation and future opportunities available in the industry the companies as well as the government of Philippines is planning to come up with a long run solution to meet the demand of talented and qualified work force in the outsourcing industry. Pilipino government has always taken initiative steps to uplift the BPO industry and the part played by the authorities is remarkable.

At present the government is planning to fund in some huge amount to speed up the hiring as well as training of talents available. BPO sector companies have also joined hand with the government and have decided to fight the in-house issues of low work force supply. As part of the decision, contribution made by the sector is around P680 million so as to tap the talents and train them. Moreover government has also taken some initiative actions such as the promotion of English language and addition of communicative English courses in the universities.

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