Survey shows planned increase in workforce requirements in high-value processes
Some ninety-five percent of industry executives and human resource (HR) managers in the business process outsourcing (BPO) industry surveyed recently indicated a positive outlook for job growth for 2009, forecasting employment growth of up to 200%.
About 50% of respondents expect their workforce requirements to increase by over 15%. Outsource2Philippines (O2P) and the Business Processing Association of the Philippines (BPA/P), in cooperation with TeamAsia, conducted the BPO talent development survey from February 5-22. Response rate was 24% with 158 responses from 664 invitations sent to industry executives in a wide range of BPO sectors. The survey was conducted online.
The survey results indicate that the value add of services outsourced to Philippine BPOs is increasing. Moderate to very high-value services ranging from financial analysis to knowledge management comprised 97% of the services offered by respondent companies. Sixty-seven percent said their organizations provide high to very high-value services. Sectors that expect the highest workforce increases involve complex services such as back-office processes, IT services and infrastructure management, and website development. Average expected ramp-up is 11-15% from current staff levels.
BPO companies with workforces ranging from 1,000 to 15,000 employees expect an average increase in staffing requirements of between six percent and 10%, close to the average workforce increase expected across all sectors and respondents. Small- and medium-sized operations are expecting employment to increase at the same rate. The biggest growth is expected from companies that employ 5,000 to 10,000 personnel, with 33% expecting jobs to grow between 11% and 15% in 2009.
Growth in the BPO workforce is expected to rise as the global economic crisis forces companies to look for alternative and cost-effective ways to provide high-value services, according to Gigi Virata, BPA/P research director. “With at least 97% of surveyed companies providing moderate to high-value services, and 95% expecting employment growth, the question for the industry whether current academic standards and curricula are aligned with the increasingly complex requirements of the BPO industry,” she said.
An executive breakfast briefing with C-level and HR executives, the academe, and other industry players, “Delivering the Human Resource: Aligning Supply with Demand in Philippine Education,” will address this issue. The briefing will take place March 10, 2009, at the Ateneo Professional Schools in Rockwell, Makati and is intended to address solutions for the gap between the requirements of the BPO industry, and the skill sets provided by the academe. Notable panelists and presenters include Danilo Reyes, president, Sitel Philippines, Father Bienvenido F. Nebres, S.J., president, Ateneo de Manila University, and other industry executives and university officials.
Frank Holz, CEO of O2P will present the complete results of the BPA/P-O2P Survey of HR Practitioners for Talent Development to provide a backdrop for the discussion.
About BPA/PThe Business Processing Association of the Philippines (BPA/P) is the umbrella organization for the fastest-growing industry in the Philippines: offshoring and outsourcing (O&O). BPAP serves as the one-stop information and advocacy gateway for the country's key O&O services sector and has over 200 company members, including five association members. For more information, visit www.bpap.orgAbout O2POutsource2Philippines (O2P) provides a cost-effective, timely mechanism for companies to receive professional support in analyzing the suitability of outsourcing selected operations to the Philippines, and in implementing outsourcing programs. For more information, visit www.outsource2philippines.com
About TeamAsiaTeamAsia is an award-winning strategic marketing communications firm that develops place, corporate, and personal brand strategies, creative concepts, and marketing communications programs for its clients. It specializes in non-traditional communications channels, including the Web (e-Mail, blog and Podcast marketing, online brand advertising and website development, search engine marketing), contact center services, direct marketing, public relations, events, and innovative experiential and direct marketing communications collateral. For more information, visit www.teamasia.com.