Average Won’t Do for Philippines’ BPO Industry

Wednesday, November 14, 2012 Unknown 7 Comments

The percentage of manpower needed for the BPO industry of the Philippines is growing, but call centers in Cebu and other parts of the country still turn away a great number of applicants, and are only accepting a few ones. Are their qualifications too limited for the applicants to pass?

According to the Business Processing Association of the Philippines (BPAP), out of every 100 applicants to call centers in Cebu and other cities, 95 of them are turned down. The companies just can’t find the right people for the number of jobs offered.

BPAP president Benedict Hernandez said that it is not the lack of demand for manpower, but the companies can’t find the right workers. The BPO industry of the Philippines actually needs more workers to suffice its development.

Hernandez saw that the lack of talent may be the reason for the decline of the industry.

In most outsourcing companies, the screening of applicants is based on their English proficiency, learning ability, computer literacy, and speed and accuracy.

Communication skills are said to be the most crucial skill that needs to be developed, especially that the country prides itself as the best provider of call center services.

There are other areas that are measured by the official screening test of BPAP, the Global Competitiveness Assessment Tool (GCAT). These areas are behaviour, learning orientation, courtesy, empathy and reliability.

GCAT is very effective in picking out the best people in the industry. They have sampled the test to 2,500 present employees of the industry to pick out who are the best. It has determined the top to lowest performers of the 2, 500 employees.

They decided to apply the GCAT to 19,700 students from 79 colleges in Cebu and across the country. The results of the test were not impressive. All results were similar in all tested categories. Only a few reached the standard for high performers. The result was the same percentage with the consistent low 5% pass rate of applicants in the industry. Majority of the college students did not measure up to the requirement of the industry.

Also, according to another survey conducted by the People Management Association of the Philippines (PMAP) across 28 industries, the numbers have shown the following:

• 88% of overall job vacancies required college level candidates.
• 87% of job vacancies needs only 1 to 2 years of experience
• 50% did not require any experience at all
• 65% of job vacancies were entry level jobs. These jobs were not filled by fresh graduates because they lacked the skill/s and the knowledge for the positions.
• 49% of this remains unfilled because the right candidate could not be found.

Also, the study found out that until 2013 to 2015, the most important skills that workers should possess are the following:

• Leadership and responsibility
• Critical thinking and problem solving
• Flexibility and adaptability
• Productivity and accountability
• Good communication skills

BPAP believes that the industry’s problems in finding the right workers may be attributed to the educational system of the country. The implementation of the new K-12 system is still even under criticism.

The new system is said to help the graduates become employable, even if they managed to finish high school studies only. They will receive a diploma that will qualify them to land a job or any trade related work. But critics of the new system said that the added number of years will not answer the problem of the educational system, which is the lack of educational infrastructures and materials and a curriculum that does not focus on critical thinking.

Nevertheless, Hernandez said they will take the necessary measures that would help the industry cope up with quality-manpower insufficiency that it is experiencing. He said they will do anything to maintain the momentum and increase the growth of the industry.

About the Author

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Publish on 11/14/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• New IT Parks for Cebu City
• Stronger Peso vs. BPO?
• The Law That Will Make Investments

New IT Parks for Cebu City

Tuesday, October 23, 2012 Unknown 1 Comments

Advancements for the Queen City of the South have been formally disseminated.

12 new IT parks will be established in the Cebu province.

According to House Deputy Majority Leader Roman Romulo, a total of 63 new information technology (IT) parks are being developed nationwide, 41 of which are located in the provinces and 22 are located in the Metro Manila area.

In Cebu, 7 of the IT parks will be located in Cebu City while 5 will be located in Mandaue City. Similar IT parks will also be developed in the Negros Oriental province.

Congressman Romulo is in strong favour for the advancement of these IT parks in highly urbanized cities outside Metro Manila. In that way, it can boost the balanced economic growth all over the country, and not just contained in Metro Manila.

Romulo describes IT parks and BPO firms as powerful drivers of job creation, consumption and overall economic growth. Call centers in Cebu are the ones dominating its IT parks like Cebu Business IT Park and AsiaTown IT Park.

Romulo said that it would not be fair to let Metro Manila gain all the credit by locating all IT parks in the main city; thus, it is time to give other cities their own chance to achieve economical growth.

Adding support to the cause of promoting a balanced growth all throughout the country, the Philippine Economic Zone Authority (Peza) has amended its incentives policies to support the growth of IT sectors in areas outside Metro Manila and Cebu.

In the resolution, Peza said that all IT facilities projects that will be located in the first four Peza-registered IT parks in Cebu and Metro Manila will no longer be entitled to incentives.

The following IT parks that will no longer grant the special 5 percent tax on rental income are as follows:

• Eastwood City Cyberpark in Quezon City
• Northgate Cyber Zone in Muntinlupa City
• Robinsons Cyberpark in Mandaluyong City
• E-Square Information Technology Park in Taguig City
• Cebu IT Park in Cebu city

On the other hand, all IT facilities projects that are/will be established in Peza-registered IT parks outside Metro Manila and Cebu City will continue to enjoy the benefit of a special 5 percent tax on gross income and other fiscal incentives.

This amendment will ensure that the even distribution of IT establishments all over the country will be realized and make other highly urbanized cities be attractive to incentives, says Elmer San Pascual, head of the promotions group of Peza.

Furthermore, Peza will also no longer grant incentives to developers of economic zones who specialize in manufacturing, tourism or agro-industries, if their area is less than 25 hectares. Previously, Peza gave incentives to areas less than 25 hectares.

This is not considered a loss for Cebu City, since it is also a way of helping other highly urbanized cities have more investments. This amendment further indicates that Cebu has moved a step higher among other major cities and has the capacity to attract larger investments.

About the Author

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Publish on 10/23/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Stronger Peso vs. BPO?
• The Law That Will Make Investments
• You Can Breathe Easily in Cebu

Stronger Peso vs. BPO?

Tuesday, October 16, 2012 Unknown 6 Comments

It’s no longer a fight between Philippines and India, they said. It’s become a fight between Philippines and the peso.

But how could this be? How could Philippines’ own currency be the source of threat to one of its main drivers for economic growth? Irony seems to be at work here.

The Philippine BPO industry is the second dollar earning industry of the country, next to the OFW remittances. It is also one of the main propellers of the blossoming Philippine economy.

But the strengthening of peso threatens the Philippine BPO industry most especially that their main sources are from foreign investments.

Meanwhile, in India, their rupee is weakening, giving more strength to the dollar, thus more advantage for their degrading BPO industry. The depreciation of rupees means cheaper services and space rentals, compared to the strengthening peso, which indicates that salary rates and rental fees may rise.

Recruitment and migrations expert Lito Soriano said that the depreciation of India’s rupees is both an advantage and disadvantage to the Indians. Many Indian call centres will be forced to relocate back to India and Indians will have more confidence in competing with skilled manpower abroad since they can now offer cheaper rates.

Back to the peso, it doesn’t only affect the Philippine BPO industry, but also the families of OFWs who largely rely on the remittances from their family member/s abroad. Families will have to lessen their expenditures, and might even have to sacrifice educational plans, since the dollar is now only P41.75, a big leap from P55 last 2004.

The peso’s current status also affected the overseas recruitment, where skilled OFWs demand an increase in salary to offset the loss of value of the dollar.

But the call center industry of the country is still confident that they are competitive enough, even if the peso is threatening to cut their profit margin.

Benedict Hernandez, the president of the Contact Centre Association of Philippines (CCAP), said that they are carefully monitoring the exchange rate, but it is not yet a concern for most of the call centers right now.

A stronger peso usually threatens Philippine companies who export goods and services, but not for the call centre industry of the country. The quality of service that the Filipinos possess will ensure the country’s outsourcing industry to remain on top of the ladder for voice services.

CCAP Exec. Director Jojo Uligan said the recent peso appreciation is not alarming. But if the peso trades below 41 against the dollar, it will be disastrous for call centres. He said it’s okay to charge higher rates to new clients, but it’s difficult with the old and recent clients.

Also, the Bangko Sentral ng Pilipinas (BSP) shrugs off the concerns of how the appreciation of the peso could outweigh the Philippine BPO industry.

According to BSP Deputy Governor Diwa Guinigundo, most BPO firms do not rely on peso-dollar exchange rates to remain competitive. The BPO firms rely on their manpower’s skills, versatility and competitiveness.

The Philippines will remain as the most attractive location for outsourcing because the skills of the Filipinos allow companies to save on training costs.

In conclusion, the government still believes that the BPO industry will remain as one of the main drivers for propelling the economic growth of the country. It’s ironic, but feasible.

About the Author

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Publish on 10/16/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• The Law That Will Make Investments
• You Can Breathe Easily in Cebu
• Decade Becomes Landmark for Cebu BPO

The Law That Will Make Investments

Tuesday, October 09, 2012 Unknown 1 Comments

The Call Centers of Cebu are seen as one of the best and most competitive in the country. Due to this gained recognition, the BPO industry has made Cebu as one of the rising cities in Asia. This alone has attracted many foreign companies to invest in the city.

But despite this growing popularity, there are still some foreign companies that doubt the security offered by outsourcing companies in Cebu.

It is given that when a company outsources some of its services to a third-party service provider, their data and their customers’ data are also being handed over to another entity. The protection of the privacy of these data is being put to risk.

Before, the BPO Industry of Philippines bore no legal act or law that would claim to protect the data of a company or any person that are being transmitted online. This deficiency of security has made many investors and other outsourcing industry players to doubt the capacity of the BPO industry of Philippines to provide efficient and secured outsourcing services to foreign clients.

Many debates have surfaced between parties, questioning and protecting the country from its capability to be a world-class BPO provider. Thus, a bill was drafted to answer the issue. Bill 2965 on data privacy requires the preservation of personal data collected by public and private entities.

The Bill was sponsored by Sen. Edgardo Angara, the Senate science committee chairman.

The bill was said to help boost the Philippine BPO Industry, in terms of giving full assurance to foreign clients and investors that their data are safe and secure with their third-party service provider located in the country.

Last August 15, 2012, President Benigno Aquino III signed the Data Privacy Act or Republic Act 10173, thus formally making it into a law that will be mandated to all private and public sectors.

“The State recognizes the vital role of information and communications technology in nation-building and its inherent obligation to ensure that personal information in information and communications systems in the government and in the private sector are secured and protected,” the law declares. The law also establishes the creation of a National Privacy Commission, which shall “monitor and ensure compliance of the country with international standards set for data protection.”

Among other provisions, it is mandated to publish a guide to all data protection–related laws on a regular basis.

It can also “compel or petition any entity, government agency or instrumentality to abide by its orders or take action on a matter affecting data privacy.”

The law also has a provision on protection for journalists and their sources, stating that nothing in the act repeals or amends the law that does not compel those in the journalism profession to reveal the sources of leaked news reports.

Meanwhile, the Business Processing Association of the Philippines (BPAP) president and CEO, Benedict Fernandez, is confident that the signing of the Data Privacy Act is another step forward to increasing the confidence of international investors on the BPO services of the country. The law would simply add more investments into the Philippine BPO Industry.

“The Act brings the Philippines to international standards of privacy protection. It is based on standards set by the European Parliament and is aligned with the Asia Pacific Economic Cooperation (APEC) Information Privacy Framework,” Hernandez said.

Sen. Angara also added that the Cybercrime Prevention Act should also be enacted to provide a legal framework for the detection, apprehension and prosecution of Internet-related crimes like hacking, phishing and spamming.

Angara also said that despite the fact that it was signed into a law, the implementation would still require the training of experts and development of enforcing rules and regulations.

The Philippine government has made another step to further improve its efforts in providing world-class outsourcing services to the world.

About the Author

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Publish on 10/09/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• You Can Breathe Easily in Cebu
• Decade Becomes Landmark for Cebu BPO
• Cebu BPO Reaches Out to Visayas and Mindanao

You Can Breathe Easily in Cebu

Tuesday, September 25, 2012 Unknown 0 Comments

Working in the Call Centers of Cebu brings a lot of factors to its workforce. These factors bring many changes to their lives, both in body and mind.

A call centre brings in a lot of stress that can trigger many health conditions. Thus, the working environment of call centres should be hassle-free and employee-friendly. We are not just talking about the environment inside the building. Even the environment outside the establishment would matter.

Urbanized cities are what’s “IN” among all cities in Philippines. Urbanized cities mean more investments for businesses. Commercial establishments in cities are a sign of competitiveness for businesses. Urban areas also attract more people to stay there, thus, an increase in population is another sign of growth.

But with the number of cities applying for urbanization, many have sacrificed all the green spaces intended for the preservation of the natural environment of the area. A concrete example is Metro Manila. It is the capital city of the country. Because of this, it is now highly urbanized and densely populated, not only with people but also with establishments of all sorts. In traveling from the provinces to the city, it can be noticed that trees and greeneries distinctively thin out with every mile succession. This is a bad sign for the city.

Recently, Manila has experienced major floods which have destroyed millions of properties and risked millions more of lives.

Over-urbanization of areas is simply the main reason for the congestion of the cities.

It was reported in 2008 that there are more people living in urban areas than in rural areas, based on a research from Husqvarna Group – the largest producer of outdoor power products. Because of this, the demand for office and living space is rapidly rising, thus diminishing the presence of green areas.

To answer this problem, city developers around the world are trying to find ways to subtly include greens in cityscapes. The changes are now becoming notable like Manhattan’s Central Park, Barcelona’s Park Guell and Paris’ Luxembourg Gardens.

Back in the Philippines, these moves are not yet recognized by major cities, and other cities who wish to enhance their greenery in their main urban areas, except Cebu city.

The Ayala Land, Inc. (ALI) is aiming to incorporate the cityscape with green areas to help preserve the natural ecosystem of the city. Some of these moves have been implemented in some of the business parks of the city like the Cebu Business Park and Asiatown I.T. Park.

These plans would benefit employees of call centers in Cebu, since most of these companies are located at business parks. The areas not only offer them a safe place to work, they are also conducive to promoting certain health factors and leisure to the employees. These parks also serve as leisure areas for people, especially during rest days and holidays. It is a place for business and commercial activity, and also a place for convenience and recreation.

“People intuitively know the importance of nature and green spaces as these help one achieve peace of mind,” notes Pres. Benigno Aquino III. “Hence, Cebu is littered with parks, where people can experience a relaxing space of lush greens right outside their offices or residences. So, while other urban dwellers must put up with the mental fatigue caused by work, traffic congestion or pollution, people who live, work, and thrive within this district enjoy places where they can refresh their minds and bodies every once in a while.”

Cebu will not be known for congestion that leaves no clean air for its inhabitants to breathe, but it will be known of the opposite. It will attract people not only for the job opportunities, but also for the leisure living that it offers to all.

About the Author

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Publish on 09/25/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Decade Becomes Landmark for Cebu BPO
• Cebu BPO Reaches Out to Visayas and Mindanao
• Is it Talent Famine for Cebu?

Decade Becomes Landmark for Cebu BPO

Thursday, July 26, 2012 Unknown 1 Comments

The past ten years have been a good ride for the Business Process Outsourcing (BPO) industry of Cebu. From its humble beginnings to its enormous success, specifically from year 2009 up to the present, Cebu surely snagged a title as one of the growing cities worldwide.

Cebu BPO Reaches Out to Visayas and Mindanao

Thursday, July 19, 2012 Unknown 3 Comments

BPO (business process outsourcing) services may not be enough for the Philippines if it wants to keep up with the momentum of the outsourcing industry. Adapting more KPO (knowledge processes outsourcing) services is greatly recommended so that the country could step up to a higher level in the outsourcing industry.

Cebu is a major player of Philippines’ BPO Industry. The KPO-BPO industry of the Cebu province currently employs an estimated 60,000 to 75,000 people. The Cebu BPO industry aims to hire 100,000 by 2014.

Presently, Cebu relies on applicants within the province to fill the workforce of its outsourcing industry, which has already to started to expand by providing KPO (knowledge process outsourcing) services as well. To step up its game in the outsourcing industry, Cebu has stopped limiting its services to BPO only.

KPO services entail more complex systems, more brain work so to say, such as areas in research and development, marketing, accounting, animation, design concepts, and market research. Metro Cebu is deemed to be wanting in its pool of talents or qualified personnel for KPO business functions, as opposed to BPO jobs.

In an interview, Joel Mari Yu, managing director of CIPC (Cebu Investment Promotions Center), pointed out that what current companies are doing is to go out of Metro Cebu and conduct recruitment in other parts of the Visayas and cities and provinces in Mindanao. This is an initiative to fill both BPO and KPO job vacancies in Metro Cebu.

Bacolod, Iloilo, Tacloban, and Cagayan de Oro are the initial areas that the CIPC, together with the companies, will be visiting.

“We see no problem with infrastructure in Cebu because it’s already in place. However, if we are to depend only on our own internal population, we are too small. We are insignificant,” Yu admitted.

Also, this is a new way of promoting Cebu to job seekers from far-off places, showing them that Cebu is an ideal location to fulfill a professional life, besides Manila.

This move does not mean that Cebuano professionals are incapable of delivering KPO services; rather, it is a means of adding more people to the KPO workforce of Cebu. Also, while searching for more qualified manpower in other parts of the country, Cebu is developing its BPO professionals to handle more KPO functions.

“We should now look outside Cebu for additional manpower if we want to maintain our rank as an emerged destination for outsourcing companies,” encouraged Yu.

According to Tholon’s recent report, Cebu has succeeded in keeping its 9^th spot on the list of emerged BPO destinations worldwide. Shanghai, China (10^th) follows Cebu.

Yu said that the cities ranked 11th to 15th are within striking distance to dislodge Cebu from its post. These are Krakow in Poland (11th), Beijing in China (12th), Sao Paulo in Brazil (13th), Dalian in China (14th), and Buenos Aires in Argentina (15th).

The KPO sector of Cebu can also use some support from the local government so raise the city's ranking in the list of preferred outsourcing destinations.

About the Author

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Publish on 07/19/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Is it Talent Famine for Cebu?
• Call Centers are for Cebuanos Too
• Cebu: IT-Certified Destination

Is There Talent Famine in Cebu?

Thursday, July 12, 2012 Unknown 2 Comments

It’s all about quality and quantity. Even for the workforce of Call Centers in Cebu.

With the acquired status of the Philippines as one of the major outsourcing destinations in the world, the pioneering cities within the country are struggling to earn their own sweet spot as a favored location globally.

Also, with this newly achieved status of the country surfaces the ominous idea of shortage in the talents needed by the call center industry of Cebu. As the outsourcing industry continues to move up, so are the requirements to keep up with the momentum of its growth. Outsourcing industry experts and analysts are now pushing for knowledge-based services, which entail a higher degree of proficiency in more complicated job functions.

Cebu, like all other prime cities of the country, is facing the possibility of a talent gap in the outsourcing industry. For the past decade, academic institutions have been the source of supply for the workforce of many Call Centers in Cebu.

Nowadays, however, it has been determined that several of the graduates of Cebu's educational institutions are lacking the basic skills required in a call center or in the BPO industry in general.

In addressing this problem, call centers in Cebu are now collaborating with colleges and universities, coming up with advanced and specialized programs directed towards both BPO (business process outsourcing) and KPO (knowledge process outsourcing).

Fortunately, the local government has established ties with the KPO sector and BPO industry to strengthen the city's status in being a favorite outsourcing destination.

On the other hand, Cebu schools are also concerned with the quality of graduates they are producing. The academic institutions in Metro Cebu are now amenable  to making adjustments to their curricula, adding trainings that can make students meet the demands of the BPO industry.

Greg Victor Gabison, president of CEDF-IT (Cebu Educational Development Foundation for Information Technology), confirms how much the academe of Cebu is ready and open to engage in more specialized trainings for their students, saying, “We from the academe are also concerned with the quality of our graduates. We are always willing to work with them especially now that one of the strategies is to move up to higher level outsourcing or the KPO which involves more specialization.”

Gabison speaks for the academe in pointing out that more partnerships between the government and academic faculty are more than welcome, especially in highly technical and specialized skills training like cloud computing and other latest technologies now available.

The outsourcing industry is forecasted to double its growth five years from now, with a target of $50 billion annual revenue by 2016. This is attainable if the projected growth rate of 15 percent annually will be realized.

“I’m not however worried about the demand, it’s the supply that we are worried about. It’s time that we put our acts together and come up with a good resolution to this. There are a lot of opportunities for us here and we need to double time,” said Jojo Uligan, director of CCAP (Contact Center Association of the Philippines).

Another suggestion was for the BPO service providers to scout for other markets like Australia, New Zealand, and Europe, besides the US, which is the current market of the industry.

Indeed, the talent gap poses a threat for the KPO sector and BPO industry of Cebu. The city's industry players are well aware of the situation and are lending one another's resources to keep the industry in tow.

The Cebu government, the academic institutions, the private sectors, the outsourcing companies, and the Cebuanos themselves are working hand in hand to phase out the signs of talent famine in the city. Metro Cebu has become an ideal location to establish BPO and KPO companies. Enhancing such strength and overcoming issues of the KPO sector and the BPO industry will make the country excel further and uphold its global fame of delivering quality outsourcing services.

About the Author

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Publish on 07/12/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Call Centers are for Cebuanos Too
• Cebu: IT-Certified Destination
• Let’s Work Overseas in Cebu

Call Centers Are for Cebuanos Too

Friday, June 29, 2012 Unknown 3 Comments

Who said Cebuano agents are limited to taking calls from foreign clients only?

It was not yesterday that Call Centers in Cebu also offer voice services in its local dialect. Although the Philippine BPO Industry requires fluency in speaking English, there has also been a demand (since 2010) for call center agents who can speak various Philippine dialects.

For years, call center agents in Cebu have been answering international calls, speaking to people of foreign races and nationalities. We thought that providing customer services to local clients was out of the question, let alone answer their needs using the local dialect. Now, we ought to reconsider that thought.

Globe Telecom, Inc., a telecommunications company in Cebu, Philippines, has launched the first Visayan-speaking customer support department. This is to ensure that the customer concerns of its local clients are properly addressed and easily answered.

Philippines does not speak only one dialect; rather, it has 175 ethnic languages spread all over the country. Globe Telecom has offices all over the country as well, but why choose the Visayan dialect?

Over 20 million Filipinos use the Visayan language. Cebu also became the first location to offer such service because the city has a vibrant local economy, strong consumer spending, and is a premier business and tourist destination.

“Service revenues increased by 9% ending the year 2011 with Php 67.8 billion. Globe made significant headway in its mobile business during the year anchored on personalized postpaid plans, revitalized prepaid brands offering unique, value-for-money services and differentiated customer service,” reported Ernest Cu, Globe Telecom president and chief executive officer.

Due to the positive results of the company’s efforts and actions last year, they were encouraged to partner with a local call center in Cebu to provide them voice services (customer and technical support).

They have employed 50 call center agents to operate under the Globe Telecom call center. They will be using the Visayan language in taking calls and assisting other concerns made online. The number of agents will grow depending on the changing need of the telecommunications company.

This move by a major telecommunications company here in Cebu proves that the local community is open to adapting to the changing trends of taking care of customers.

This gives a guarantee to local patrons of the service that their customer concerns and needs will be answered, and that service providers are willing to acquire new technologies to ensure that optimum service is given to the local customers as well.

Service providers have made the initiative to make the local clients also experience the kind of customer support Cebu call center agents have been giving foreign customers. This provides a sense of equity among local and foreign customers.

For now, a company from the telecommunications industry has initiated the action. We can anticipate that in the next few years, other local industries will do the same.

After all, everyone is entitled to experience quality customer support, and what better way to experience that than from Cebuano call centers.

About the Author

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Publish on 06/29/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Cebu: IT-Certified Destination
• Let’s Work Overseas in Cebu
• A Round Table Discussion of the IT - BPO Industry in the Philippines

Cebu: IT-Certified Destination

Thursday, June 21, 2012 Unknown 0 Comments

Cebu, Philippines – a prime destination for business, leisure, travel, commerce, and . . . IT?

The queen city of the south of the Philippines has long been known as a great location for businesses, creating opportunities for job seekers, professionals, and business owners. Cebu City has also been the home of thriving businesses and major players of different industries.

One of the industries that have established roots in the province of Cebu is the IT-BPO industry. Since the early part of 2000, the BPO industry has encountered many obstacles and changes, yet it has overcome them and has been one of the main drivers of the economy of Cebu. As of 2011, it has become one of the most preferable IT-BPO (information technology and business process outsourcing) destinations in the world.

The provincial government gives its full support for the development of the industry, since the latter has greatly contributed to the rising employment rate in Cebu. In turn, the IT-BPO industry has also been a major factor in the province's economic growth.

In order to sustain the growth of the industry, some private organizations and government sectors have established ties with Metro Cebu's educational institutions. These partnerships are creating programs that will mold or prepare the graduates to become suitable for the industry. Colleges and universities are now making adjustments in their curricula to incorporate specialized trainings that will enhance the skills of the students in meeting the requirements of the IT-BPO workforce.

Organizations like Cebu Educational Development Foundation for Information Technology (CEDF-IT) and the Technical Education and Skills Development Authority (TESDA) have pledged to strengthen the academe-industry linkage to improve recruitment and answer the escalating demand for IT, BPO, and KPO (knowledge process outsourcing) jobs in Cebu.

Their main drive is to help high school and college graduates develop the skills and talents needed by the outsourcing industry.

“The demand is growing. We still need to prepare our graduates especially that companies here are diversified and each has specific requirements. Although CEDF-IT has already helped bridged the gap of the academe and the industry, we cannot simply rest on our laurels. These companies are banking on Cebu’s huge and rich talent pool. We need to constantly upgrade and equip our graduates with the right skills and knowledge so they could adjust or keep up with the demands of these companies,” said Jun Sa-a, executive director of CEDF-IT.

To help IT-BPO companies recruit more people, the CEDF-IT promotes the Philippine Information Technology General Certification Examination (Phil-IT GCE). It is a two-hour online exam for graduates of IT- or computer-related courses, assessing their knowledge, skills, and attitude pertinent to the IT industry. IT-BPO companies may use the results of the Phil-IT GCE in selecting their applicants.

CEDF-IT was established after the first Cebu IT Summit in March 2001. Since then, it has forged partnerships with various industries and universities in Cebu and has now allied with TESDA for grants on various training programs on technical and non-technical skills trainings.

Cebu City has indeed stepped a notch higher with its competitive drive in being a major player in the IT-BPO industry. The city has taken the necessary measures to have an IT-BPO workforce comprised of certified IT professionals, making a difference from other major cities in the country, but still shares the aim of contributing to the whole BPO Industry of the Philippines.

About the Author

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Publish on 06/21/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Let’s Work Overseas in Cebu
• A Round Table Discussion of the IT - BPO Industry in the Philippines
• Making Cebu a Venue for Growth

Let’s Work Overseas in Cebu

Thursday, June 14, 2012 Unknown 7 Comments

Many Filipinos dream of greener pastures in other countries such as the United States, Australia, and Europe or in the Middle East. For most of us, setting foot in another country promises the start of a better life.

Many have judged the country hopeless. Several Filipinos think that the ultimate way to provide for the needs and wants of their families or to solve all financial problems is by working abroad.

In one recent article of The Sauce, overseas jobs are the main preference of Filipinos—especially IT and engineering professionals—seeking gainful employment. These professionals are also in demand in Business Processing Outsourcing companies; however, the option comes second to working overseas.

According to Yoda Buyco, marketing director of regional job portal Jobstreet.com, IT and engineering are still the top jobs available in the Philippines and Asean region. He said the four key areas of IT—hardware, software, networking, and administration—continue to rack up the most number of job postings registered on the site.

The high demand for IT experts and engineers abroad is one of the major factors that contribute to the high attrition rates of these professionals here in Cebu.

Cebu, despite being titled by foreign investors as one of the most preferred locations for outsourcing, is still alarmed by the high percentage of employee turnover.

The IT-BPO (information technology and business process outsourcing) industry—both local and abroad—is in constant need of increasing the number of its skilled employees to make it continuously functional and productive.

Working abroad or in a local BPO company each has its pros and cons. Assessing the factors can help professionals determine which path can be most fruitful for their careers.

The following are common factors involved in working for the IT-BPO industry locally or abroad:

1. Job Description and Compensation

Clarifying the basic tasks or responsibilities of the job is a must; the focus should not be limited to an offer of a competitive salary.

For many professionals who have gone abroad, disregarding this factor has made them come back to the Philippines sooner than planned. A specific example is the case of IT experts who were assigned to the hardware sector, when their expertise lie on the software sector; this then leads to the expert being tagged is incompetent for the job and thus ordered to go back home.

Should a case like this take place in a local BPO company, resolutions are promptly underway. A simple report to the management can resolve the problem, that is, reassigning the employee or providing training so as to widen the scope of his/her expertise.

2. Employer Profile

Studying the background or track record of an employer is key to having a satisfactory employer-employee relationship. Taking note of achievements, means of handling the company, or even complaints against the employer can make a difference between lasting in a job or quitting at the drop of a hat.

Apparently, professionals who hastily went abroad and failed to consider this factor have found themselves returning to the Philippines with much disappointment, if not regret.

In finding employment in the local IT-BPO industry, a simple face-to-face interview can help an applicant find out the facts (or fiction) about an employer's profile. The IT-BPO industry abroad, on the other hand, will allow one to come to grips with "harsh realities" only upon getting there; in turn, means of getting out of the situation may hardly be at one's disposal.

3. Support Groups

As to what kind of support group is needed by a professional depends on the location of the industry—local or abroad. A professional working abroad needs a support group that can give psychological or emotional support, curb feelings of homesickness or loneliness, and basically fill the hours (or days or weeks or months) of solitude.

For a professional working in the local IT-BPO industry, on the other hand, the support group present is one that functions to increase the professional's expertise and proficiency. This kind of support group is readily formed by many BPO companies in the Philippines.

Fortunately, the local IT-BPO industry has made itself more favorable to IT and computer engineering professionals. In fact, specifically Cebu and its outsourcing industry in general has become an option more viable than working abroad.

The Cebu outsourcing industry has been an economic growth driver since 2010. It presently employs 50,000 workers and has an estimated monthly payroll of at least Php 2 billion. In 2011, the Cebu outsourcing industry accounted for 40 percent of the positions posted in a job listing site. Also, it has recorded a 20 percent growth for 2011.

With these numbers in tow, the Cebu outsourcing industry has positioned itself as a more ideal provider of jobs for professionals not only in the field of IT and engineering but also in other knowledge-based areas.

Many Cebuano professionals fail to maximize the opportunities Cebu outsourcing companies offer because of having fixed their eyes on better-paying overseas jobs. Many fail to recognize the local jobs that offer good benefits (not only for the professionals but also for their family) and sufficient compensation.

A second look at Cebu's growing economy can change its professionals' idea of a better or more promising location or situation, envisioning Cebu to be the place of greener pastures.

About the Author

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Publish on 06/14/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• A Round Table Discussion of the IT - BPO Industry in the Philippines
• Making Cebu a Venue for Growth
• Let The Queen Do The Job

A Round Table Discussion of the IT - BPO Industry in the Philippines

Thursday, May 31, 2012 Unknown 0 Comments

• Making Cebu a Venue for Growth
• Let The Queen Do The Job
• Call Center Outsourcing - Cebu Philippines

Making Cebu a Venue for Growth

Thursday, May 03, 2012 Unknown 3 Comments

The number of companies established in Cebu has definitely grown in the past 10 years.

Cebu’s outsourcing industry started with simple voice services like Inbound Customer Care and Outbound Telemarketing; over the years, it has branched out into a diversity of services which now include back-office services.

The booming IT-BPO industry—the leading outsourcing division that fueled the industry’s 24% growth last year—has greatly increased its demand for IT-skilled staff; however, concerns were raised about Cebu's capability to accommodate this demand.

Cebu, which ranked #8 as of 2011 in the Top Ten Outsourcing Destinations in the world, was advised by a prominent Tholons analyst to develop its talent supply channel in order to sustain the increasing demand of the IT-BPO and KPO sectors, stating that Cebu should focus on maximizing and developing its pool of talent and their capabilities.

Knowledge Process Outsourcing (KPO) refers to services in the areas of research and development, financial and insurance research, paralegal content, medical content, biotechnology, and pharmaceuticals.

Cebu, home to several outsourcing companies offering KPO services, is not just America’s favorite source of skilled manpower. The Top Ten list also includes companies based in Japan, Australia, Singapore, Canada, Great Britain, India, and Germany. These companies handle research and development, engineering design, content development, animation and graphics, data conversion, software development, medical transcription, legal and accounting, credit checks, Internet shopping, hardware support, web development, back-office support, and finance.

Companies that handle non-voice operations or offer Knowledge Processing Outsourcing (KPO) services in Cebu started to build their market in 2000. As of 2011, more than 100 companies have been operating in Cebu, providing KPO and ITO (information technology outsourcing) services.

The Cebu outsourcing industry has posted an average growth rate of 240 percent. From 1,200 employees in 2000, the industry now employs 65,000 people, growing at an average of 484 percent. At present, BPO holds 72 percent of the industry’s employees while ITO and KPO account for 14.5 and 13.5 percent, respectively.

How does Cebu cope with these numbers?

The average number of graduates in Cebu for the last three years was 22,757. Accounting graduates make up 2.4 percent, while business graduates make up 19.4 percent. Medical course graduates account for 12.9 percent; IT graduates for 16.9 percent and engineering, 11.7 percent. Graduates of other courses make up 36.6 percent, a good source for BPO jobs handling voice operations.

One of Cebu’s greatest strengths is its location.

Situated at the central part of the Visayas and relatively close to Northern Mindanao, Cebu is the ideal location for graduates finding employment and professionals seeking better career opportunities. For the last three years, the average number of college graduates for the three regions in the Visayas has been 79,256.

This then raises the question: “Do these numbers translate to the required degree of quality as well?"

Cebu City may be hitting the required number for manpower in the outsourcing industry, but do these numbers equate to bringing quality outputs from the ITO and KPO sectors?

To answer this, the Cebu Educational Development Foundation for Information Technology (CEDF-IT) has initiated an academe-industry linkage that will function to develop the talents and skills of the graduates, thereby correlating the factors of quantity and quality needed by the Cebu outsourcing industry.

CEDF-IT was established during the first Cebu IT Summit in 2001. It has built partnerships with different organizations and universities, creating innovative programs that will enhance the skills of the graduates to a level that will match the needs of the industry.

CEDF-IT has also partnered with the Technical Education and Skills Development Authority (TESDA) for allotments on various programs on technical and non-technical skills trainings, which are open for both fresh graduates and longtime job seekers.

The Philippine Information Technology General Certification Examination (Phil-IT GCE) is promoted by CEDF-IT in order for the outsourcing industry to easily find competent people for IT-related jobs. Phil-IT GCE is a two-hour online exam that will assess degree holders in computer- or IT-related courses with regard to their knowledge, skills, and attitude pertinent to the trends in information technology as required by the industry.

Phil-IT GCE is comparable to the PhilNITS (Philippine National Information Technology Standards Foundation, Inc.) exam, which evaluates the examinee's knowledge of computer fundamentals and languages. With the PhilNITS exam, no degree or diploma is required. Both exams are recognized by countries around the world and can easily be used by Cebu outsourcing companies as basis for an applicant's capabilities or adeptness.

Cebu Holdings, Inc., a prominent real estate company in Cebu, announced a revenue of Php 1.35 billion and net income of Php 424.33 million; the sums are anchored on the BPO and tourism industries. These two industries have been the main drivers of Cebu's economy.

Apparently, Cebu's BPO industry receives great support from the academe, private sectors, and government organizations, helping the industry meet its goals, enhance its growth, and thrive in the years to come.

About the Author

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Publish on 05/03/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Let The Queen Do The Job
• Call Center Outsourcing - Cebu Philippines
• Cebu, Philippines – Shaken But Not Stirred

Let the Queen Do the Job

Wednesday, April 18, 2012 Unknown 5 Comments

Cebu is dubbed as the Queen City of the South, not only for its colorful and grand festivities, but also because of something more.

Located at the southern part of the Philippines, Cebu boasts of its rich culture and history, depicted by its feasts and other celebrations.

For years, Cebu has been held parallel to other major cities within the country in terms of growth in different industries. Cebu is one of the most developed provinces in the Philippines, with Cebu City as the main center of commerce, trade, education, and industry in the Visayas area.

About 80% of the country’s domestic shipping is located in Cebu. The island has the most domestic air, shipping, and cargo vessels in the Philippines. Cebu also has a major industrial, commercial, trade, and educational system. Its extensive international port facilities, its accessibility, its hospitality towards other Asians and to the rest of the world have brought about the influx of more than a hundred businesses from multinational companies.

With the vast array of industries already nestled in Cebu, the arrival of the BPO Industry was warmly welcomed by the Cebuanos.

Since the emergence of the BPO (business process outsourcing) industry last 2000, it has climbed its way to the top, according to surveys done by notable firms like Global Solutions and US-based Tholons.

In 2008, Cebu was the 4th placer in a list of the most preferred outsourcing locations worldwide. In 2009, it took the 1st place, ahead of other cities such as Delhi, Dhaka, Mumbai, and Manila. Presently, Cebu is in the 9th spot in the top 10 cities most preferred by BPO companies, according to Tholons.

As of 2011, Cebu City has been housing over 100 BPO companies, and more firms are eyeing to establish their business in the island.

The City is deemed to have found its business niche: call centers that comprise a most effective BPO industry in Cebu. Along with the great help they bring to the BPO industry, they also enhanced the city’s earned fame as one of the emerging BPO havens worldwide. 

“Given the prevailing consumer demand and its absorptive capacity, Metro Cebu is now the apple of the eye of both regional and national retailers,” according to CBRE (Coldwell Banker Real Estate), a commercial real estate services firm, in a recent market study. CBRE Philippines estimates 49,400 square meters of BPO space to be occupied in the next two years in Cebu IT Park.

Cebu’s high domestic and foreign tourist arrivals, geographic location, accessibility, and natural resources have fueled the development of the city, with an excellent industrial record and now considered the fastest growing economy in the Philippines.

On the other hand, Cebu’s labor force is oriented towards non-agricultural lines and is rated one of the most productive workforce in the country. With a literacy rate of 97%, the city is also known as a capital for quality education. The city is one of the cornerstones of education in the country, alongside Manila, Iloilo, and Davao. It houses 24 colleges and 6 universities offering technical, vocational, master’s and doctoral courses. Many foreign students—mostly Iranians, Koreans, and Nepalese—come to the city to take medical courses and study English as a second language.

Cebu holds a highly skilled professional workforce that can answer to the growing demands of the business world. The improved quality of life (cost of living is around 75 percent lower than the USA) has yielded better-quality workers and low employee turnover.

With a pool of skilled and well-trained Cebuanos, a lot of outsourcing companies in Cebu provide a 24/7, 365 days-a-year service commitment, while working with fast turn-around times and implementations and complying with industry standards on security and quality.

Cebu continues to grow as more foreign investors see the growth of the city, with the BPO industry as one of the leading factors for its development.

The BPO industry of Cebu thrives because Cebuanos exceed the expectations of the investors and clients, doing more than getting the job done.

This article also appears in takingyouforward.com.

About the Author

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Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Call Center Outsourcing - Cebu Philippines
• Cebu, Philippines – Shaken But Not Stirred

Call Center Outsourcing - Cebu Philippines

Wednesday, February 15, 2012 Unknown 10 Comments

The upsurge of call center outsourcing companies in the Philippines is satisfying many areas of the national economy, mainly the country's employed people (and even the job seekers) and the business investors. The BPO industry of the Philippines has brought about profitable investments and has greatly contributed to the country's economic growth.

News reports have confirmed that Philippines—specifically in Manila and Cebu—is now on the list of Top BPO Destinations, yielding large revenues and raising employment rates.

With this, Cebu City has taken action to better the BPO (business process outsourcing) industry's manpower by conducting trainings for students.

The training programs are directed towards university students, improving their communication skills and fluency in speaking English to make them better qualified to work for a BPO company.

The programs are well supported by the Cebu City government, allocating a budget for the trainings and partnering with other organizations to facilitate more aid for the call center companies.

Call Center Philippines now surpasses India in  providing voice-based services and is applying technological and systematic innovations to top the spot for knowledge-based services as well.

About the Author

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Publish on 02/15/2012
Jane is a freelance copywriter, with majority of her work focusing on the outsourcing industry.

• Cebu, Philippines – Shaken But Not Stirred