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.

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