Corruption, tight labor top BPO sector concerns

Published by rudy Date posted on December 3, 2009

MANILA, Philippines–The business process outsourcing industry, one of the sectors driving growth of the economy, cites widespread corruption and lack of qualified talents as potential hurdles to the growth of the sector in the coming years.

According to a survey commissioned by the Business Processing Association of the Philippines and Outsource2Philippines, 54 percent of BPO executives polled said the tight market for qualified personnel would limit the industry’s growth potential, particularly with respect to high-value knowledge process outsourcing services.

Almost half of those polled, or 46 percent, said retaining knowledge workers was another stumbling block for growth. Other hurdles cited included complex training requirements (34 percent), high wages required to attract skilled personnel (30 percent), and inadequate education infrastructure (29 percent).

Being a labor-intensive industry, 23 percent of those surveyed named the tight labor market as the most significant risk factor in doing business in the country.

Another risk factor associated with business dealings here was government corruption, which was cited by 21 percent of those polled as a top concern. This represented a 10-percentage-point increase from July when a similar survey was conducted.

The negative perception of the Philippines likewise ranked as a significant risk factor, according to 15 percent of respondents.

Compared with global No. 1 BPO player India, however, 52 percent of those polled said it was still less risky to do business in the Philippines.

For 38 percent of respondents, the risks associated with doing business in the country were just equal to those in India, the 160-person survey showed.

Weather disturbances, particularly the devastating Tropical Storm “Ondoy” and Tropical Depression “Pepeng,” barely figured in the list of business risks in the Philippines, as these had almost no impact on BPO operations.

Even at the height of the storms, 49 percent of respondents said they operated normally, while 45 percent said they resumed normal operations within hours or days following the typhoons’ landfall.

Almost all of those surveyed said typhoon-related damage was either minor or nonexistent.

Despite all the hurdles and risks identified by the BPO industry players, majority of them said they would still ramp up employee numbers by 6-50 percent within the next 12 months. –Abigail L. Ho, Philippine Daily Inquirer

September 18 –
International Equal Pay Day

“Increase wages now,
more than other cost items.
For widespread, practical equality!”

Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
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Accept the National Unity Government (NUG) 
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October –

   

Monthly Observances:

Industry and Commerce Safety Month 

National Statistics Month 

Local Government Month 

Consumer Welfare Month 

Cooperative Month

National Quality and Productivity Improvement Month 

National Health and Wellness Tourism Month
National Indigenous Peoples Month

 

Weekly Observances:

Week 1: Elderly Filipino Week 

Week 2: National Health Education Week 

Local Government Week 

National Mental Health Week 

October 17-23:

National Week for Overcoming Extreme Poverty 

October 18 – 24:

United Nations Week 

Last Week:

Nurses’ Week 

Consumers’ Protection Week 

Week of the 4th Sunday:

Barrio Farmers’ Week

 

Daily Observances:

First Monday (Oct 4): Universal Children’s Day i
n the Philippines 

Oct 5: National Teachers’ Day 

Oct 10: Local Government Day 

Third Thursday (Oct 14): Conflict Resolution Day 

Oct 21: Tenants’ Emancipation day 

Oct 24: United Nations Day 

Oct 29: National Indigenous People’s Thanksgiving Day

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