BPOs to become $40-B industry

The country’s business process outsourcing (BPO) sector may become a $40-billion industry in four years if its grows 16 percent annually, the Contact Center Association of the Philippines (CCAP) said on Tuesday.

“The local BPO industry, [to which]contact centers belong, has current total revenues of about $23 billion (P1.15 trillion). If it reaches annual growth of about 16 percent, it is projected that, by 2022, the industry could rise to be a $40-billion (over P2 trillion) one,” CCAP said in a statement.

This would possibly make “it the top contributor to the national economy’s growth, displacing overseas Filipino worker (OFWs) remittances,” it added.

Citing a PhilJobNet report, the association said that, out of the 6,120 active job vacancies the government-run job-hunting website posted in the week of January 18, about 1,029—17 percent—of these were call center positions.

The contact center sector is also poised to benefit the most from an ongoing shift from customer service to customer experience, it noted.

“We are excited about the new opportunities [emerging]within the local contact center sector, as we collectively address ongoing shifts focusing on technology and nature of service,” CCAP Chairman Benedict Hernandez said.

“[At] the onset of artificial intelligence (AI) and automation, new jobs will be created to support a higher level of customer experience,” he added.

According to Hernandez, the Philippine operations of US-based Genpact Services LLC have adjusted to this development with the skills-upgrade programs it started four years ago.

“We need to sharpen the saw in terms of soft skills and enhance those in terms of science, technology, engineering and math,” said Danilo Sebastian Reyes, Genpact country manager and a member of CCAP’s board of directors.

“English proficiency is still an advantage. But there are skills that need to be enhanced to upgrade the level of service provided into a customer-experience-focused one,” he added.

Besides training its employees, the company is also coordinating with the academe to make sure the skills required in contact center jobs will be intergrated in special courses that colleges and universities will offer.

The sector’s growth is one of the primary drivers of the rise of the property industry’s office segment, CCAP said.
In 2017, 1.2 million square meters of office space were added to the land area occupied by call centers nationwide.

According to Jones Lang LaSalle (JLL) Philippines Regional Director Sheila Lobien, the country has one of the lowest office rental rates in Asia.

Source: The Manila Times