Experts in information technology and the business process outsourcing (BPO) industry recently said that the Philippines should offer services other than voice-related ones for which it has become an internationally acknowledged center of excellence.

During the 8th Global Sourcing and Conference in Manila that ended Tuesday, experts said the Philippines should venture into software, animation, and engineering services, among other sectors in the outsourcing and offshoring (O&O) industry.

“It will be interesting if we can move up the value chain other than voice-related services,” said Ray Anthony Roxas Chua III, chair of the Commission on Information and Communications Technology.

Among the BPO sectors in the Philippines, contact centers generate the biggest revenue and employs the largest number of workers. In 2007, contact centers accounted for 73 percent of the industry’s US$4.8-billion revenue. Sixty-six percent of the 300,000 workers in the industry come from contact centers.

However, software, animation, and engineering services have been generating more income and hiring more workers lately. The number of workers working for engineering and software solutions increased by 82 percent in 2007.

“We can capitalize on [this growth] but it will involve training and encouraging students to focus on computer science and engineering to capture the opportunities,” Chua said.

INVEST IN EDUCATION 

Other conference speakers from around the world said the Philippines needs to invest in the education and training of college students and graduates to keep up with the demands of the outsourcing industry and if it has to keep its position as a top outsourcing destination in the world.

The Philippines was named by the United Kingdom’s National Outsourcing Association as the Outsourcing Destination for 2007.

“Future growth is linked to availability of quality manpower,” said Madan Padaki, founder and chief executive officer of Indian skills assessment company Merittrac.

The Business Processing Association of the Philippines (BPAP), an organization of the call centers and BPO firms, estimates that by 2010 the offshoring and outsourcing industry can provide around one million jobs and generate revenues of US$13 billion revenues, or a 10-percent share of the global market.

As of 2007, at least 320,000 are working in the BPO industry. This means that industry must augment its workforce by 600,000 workers by 2010

“Talent pool is shrinking while demand is getting stronger,” observed Avinash Vashista, chief executive officer of outsourcing advisory firm Tholons.

BPAP CEO Oscar Sañez said there is a need to look at education as a “fundamental concern that has to be urgently addressed” to build an ample supply of workers to support the industry.

Experts said that college curricula should be updated, and that BPO companies should tie up with colleges and universities for the training of students. Companies have been complaining of low recruitment yield and of applicants who are not fluent in English.

LANGUAGE PROFICIENCY 

An industry-wide survey by BPAP and Outsource2Philippines.com in November 2007 showed that almost half (46 percent) of the companies in the survey found only 6 to 20 percent of applicants qualified. Even then, 66 percent of the companies had to provide these new hires remedial English training for free.

Some companies have tied up with schools and developed programs that aim to develop students’ language proficiency and information technology skills. Among these programs are the Expanded Learning on Information Technology Services (ELITES) Program and the Advanced English Proficiency Training (ADEPT) Program.

The ELITES is offered in seven schools and focuses on increasing the students’ level of awareness of software development skills. Meanwhile, ADEPT, which focuses on improving the English proficiency of students, is offered as a free elective in five schools.

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