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Outsourcing sector facing employability issues

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THE outsourcing sector faces employment concerns as it aims for the higher end of its growth projection.

Information Technology and Business Process Association of the Philippines (IBPAP) president and chief executive officer Rey C. Untal said at a forum that the industry requires 70,000 to 80,000 fresh talent annually to reach a 7.5% growth projection.

The industry projection was tempered to a 3.5-7.5% revenue compound annual growth rate (CAGR) for 2020-2022, down from the nine percent target set in 2016.

But the industry is facing challenges in reaching the target employment.

“In terms of employability, we start seeing an issue,” he said.

Employability of Philippine graduates into the business process outsourcing and information technology sectors is at 8-15%, Mr. Untal said.




“What it means is that for us to get to a single recruit, we have to go through anywhere between 10-15 CVs.”

Mr. Untal said that government, academe, and industry should work together towards solving the employment challenge.

IBPAP last year said it is embarking on pilot educational programs to reskill and upskill a million workers over five years.

Programs include university classes taught by industry employees and industry players offering input to university curricula.

“We have already improved to a level of complexity where it becomes a lot more challenging now to look into combinations of skills rather than what used to be a unilateral view of skills that we hire from,” Mr. Untal said.

Government Academe Industry Network (GAIN) chairman Peter P. Laurel told reporters that he encourages the private sector to collaborate with government and academe.

“The impact we think will be a more relevant education. We realize that when a student graduates, malayo pa ‘yung mga skills na hinahanap.”

He said the immediate impact of collaboration would be a shortening of employee training time for companies, which can bring down costs. — Jenina P. Ibañez









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