BPO sector expects to triple manpower by 2010

The business process outsourcing (BPO) industry expects to triple its employment level as it aims to get double digit market share by 2010.

In a press conference at yesterday’s Call Center Conference Expo 2007, Oscar Sanez, newly appointed CEO of the Business Process Association of the Philippines (BPA/P), said that including the animation sector, the industry employs 270,000 individuals.

In three years time, he said it is possible for the figure to balloon to one million given the availability of talent in the country.

For the entire BPO industry, the country’s share in the market is less than five percent. Sanez said the figure is expected to double to 10 percent by 2010. “The strength of the Philippines is the qualified people willing to work in call centers. There is enough talent base to sustain the business,” Sanez said.

However, Sanez warned that there is a possibility that this strength could turn into a weakness if the local talent is not nourished and developed.

Bong Borja, BPA/P chairman, said they are urging the government to improve the educational system in order to produce qualified and English speaking graduates.

He noted that English and other technical skills required for the job cannot be taught only during the last years in college. He said it must be a continuous process that has started during the formative years of the individual. 

“We should focus on human capital because it is one aspect that is difficult to build. The others are just a matter of money,” he said. The two other aspects of call center operations are real estate and telecommunications infrastructure. 

Borja likewise stressed the importance of honing necessary skills to enable call center agents to become managers in the future. “The availability of management talent is key,” Borja said. 

He noted that in order to sustain growth, there must be enough managers. Borja explained that in the call center business, promotion from within the ranks is practiced. “An employee has the chance to rise to management position in just a few short years. No industry promotes as fast,” he said.

Aside from the talent supply, another constraint in the BPO growth identified by the group is creating new locations. They said there is a need to develop new areas for BPO given that Eastwood, Makati and the Ortigas area are already saturated.

Sanez said the industry is already occupying one million square meters. “We have to build more because we are targeting 2.5 million to three million square meter space by 2010.”