Gov’t to help BPO industry build up adequate skills

Posted on August 24, 2011

THE GOVERNMENT is partnering up with the Business Processing Association of the Philippines (BPA/P) to develop the business process outsourcing (BPO) work force in the country, as a way of ensuring that the industry remains a key economic growth driver.

CALL CENTERS are worried that poor quality of a number of university graduates, increased competition among them for the best workers and the migration of employees to other industries may threaten their growth targets.

BPA/P and the Technical Education and Skills Development Authority (TESDA) are preparing an agreement to implement a "Training-for-Work" Scholarship Program that will be implemented this year and the next, Budget Secretary Florencio B. Abad said in a statement on Tuesday.

The program will train 58,000 scholars and provide 37,000 guaranteed jobs. A faculty trainer development program will also be launched.

The training program will require P350 million in investments annually, while the faculty training program will need P150 million, BPA/P Chairman Alfredo I. Ayala said in the same statement.

"For the employment and the revenue potential of the industry, we see this as a reasonable investment that the government should consider. We agreed that both sides should craft and present proposals by the first week of September," Mr. Abad said.

The Department of Budget and Management (DBM) arranged a meeting with BPA/P representatives last week, along with the Department of Labor and Employment, the Department of Education, the Commission on Higher Education and TESDA, in order to promote closer cooperation to expand the BPO industry and enhance its ability to generate employment and revenues for government.

BPA/P expects expanding operations of its members to create 3.15 million jobs and provide $6 billion in tax revenues to the government by 2016.

Moreover, BPO receipts have been a significant factor in propping up the country’s growth, contributing an estimated $9 billion last year.

The same statement noted private sector studies have estimated that the BPO sector could contribute $25 billion in revenues by 2016. The industry’s expansion is also seen to boost real estate, housing and private consumption.

DBM has proposed a P438.9-billion budget for economic services for 2012, about 21.27% more than the P361.9 billion allocated this year. The proposed P1.816-trillion 2012 national budget also earmarked P308.95 billion for the Education, Culture and Manpower Development Sector, about 13.8% more than this segment’s current P271.49-billion budget. -- DCJJ