Lack of mid-level managers hounds Philippine BPO industry
09/18/2009 | 06:27 PM
The Commission on Information and Communications Technology (CICT) expects the local business process outsourcing (BPO) industry to remain strong through 2010, but remains concerned over the lack of skilled workers needed to sustain growth.
"The better-than-expected growth of the economy in the second quarter is a boost to the BPO industry. Together with BPAP (Business Processing Association of the Philippines), our outlook for this year would be between 15 percent and 20 percent [growth]," Monchito B. Ibrahim, commissioner for cyber services, said in an interview.
The lack of competent mid-level managers is threatening to undermine the sustainability of growth in the business process outsourcing sector, according to the Commission on Information and Communications Technology.
The economy picked up pace in the second quarter, growing at 1.45 percent, faster than the 0.4 growth recorded in the first three months of the year.
The commissioner said the BPO industry was on track toward breaching last year’s $6.1 billion in revenues.
Mr. Ibrahim said the Philippines continues to be an attractive outsourcing destination in the Asia-Pacific since some companies are moving their operations to the region to cut costs. But rival outsourcing hub India remains the top destination.
Despite the rosy picture, the official cited the need for an ample supply of competent workers that would help sustain industry growth.
He pointed to the lack of viable mid-level managers needed to efficiently man outsourcing operations.
"The problem of competent work force in any industry is not limited at the entry level only. Both BPAP and the CICT acknowledge the need for more efficient managers," said Mr. Ibrahim.
"As for the need for mid-level managers, our top universities, UP, Ateneo, and De La Salle are trying to upgrade their curricula in management to meet the demands of the industry. We are also pushing for the service science course focused on subjects like project management to develop more professionals in the BPO industry," he added.
To further attract investments, lawmakers should pass the right to privacy bill and the measure creating of the Department of Information and Communications Technology, which should spur investor confidence in the BPO sector, Mr. Ibrahim said. - BusinessWorld
"The better-than-expected growth of the economy in the second quarter is a boost to the BPO industry. Together with BPAP (Business Processing Association of the Philippines), our outlook for this year would be between 15 percent and 20 percent [growth]," Monchito B. Ibrahim, commissioner for cyber services, said in an interview.
The lack of competent mid-level managers is threatening to undermine the sustainability of growth in the business process outsourcing sector, according to the Commission on Information and Communications Technology.
The economy picked up pace in the second quarter, growing at 1.45 percent, faster than the 0.4 growth recorded in the first three months of the year.
The commissioner said the BPO industry was on track toward breaching last year’s $6.1 billion in revenues.
Mr. Ibrahim said the Philippines continues to be an attractive outsourcing destination in the Asia-Pacific since some companies are moving their operations to the region to cut costs. But rival outsourcing hub India remains the top destination.
Despite the rosy picture, the official cited the need for an ample supply of competent workers that would help sustain industry growth.
He pointed to the lack of viable mid-level managers needed to efficiently man outsourcing operations.
"The problem of competent work force in any industry is not limited at the entry level only. Both BPAP and the CICT acknowledge the need for more efficient managers," said Mr. Ibrahim.
"As for the need for mid-level managers, our top universities, UP, Ateneo, and De La Salle are trying to upgrade their curricula in management to meet the demands of the industry. We are also pushing for the service science course focused on subjects like project management to develop more professionals in the BPO industry," he added.
To further attract investments, lawmakers should pass the right to privacy bill and the measure creating of the Department of Information and Communications Technology, which should spur investor confidence in the BPO sector, Mr. Ibrahim said. - BusinessWorld
