There are not many bright spots in the Philippine economy these days. Exports are tanking. Remittances are tumbling; and some of the country’s legion of so-called overseas workers are returning home from the hardest-hit of world markets. Amidst this, one B.C. company, Telus, is deepening its reach into the Philippines’ BPO or business processing outsourcing industry, which is expected to post stellar growth of 20 to 30 per cent in 2009. This month, Telus International opened its fourth call centre in Manila, one that currently employs 900 workers, but will ramp up to include at least 3,000, possibly by the end of the year. To fill these new positions, Telus spokesman Shawn Hall said the company would “absolutely” look to hiring from a growing pool of returning workers to the Philippines.
“Because of its history as a U.S. colony, the Philippines is a great place to run these kinds of businesses,” Hall said. “People there have very good educational levels, speak English well and have an affinity to North American culture, as well as lots of family.”
In recent months, a slew of other mid-sized and large BPO centres like the one opened by Telus have announced their own expansion plans, according to Manila-based consultant Michael Hamlin. His clients, including Convergys, TeleTech, eTelecare, Sitel and StarTek, have been keeping him busy with one inauguration ceremony to another. “BPO really is the only bright spot,” he said in an interview. “Everyone I know is hiring.” A new survey published jointly by Hamlin’s company, Team Asia, and the Business Processing Association of the Philippines found that more than 80 per cent of respondents said they will increase their workforces this year and almost 50 per cent cited a growth of between 10 and 200 per cent. The BPAP is projecting 30-per-cent growth for the industry overall.
For an increasing number of clients, Hamlin said, the Philippines is one of many BPO centres in an international string. “For risk mitigation, they don’t just want a presence in India or just in Eastern Europe or North America,” he said. Indeed, while the bulk of Telus International’s employees are already in the Philippines, the company recently announced plans to open a 1,000-seat centre in Las Vegas and three others in Central America.
Speaking to reporters at the opening of the new facility in Manila, Telus International president Jeffrey Puritt emphasized that the expansion is focused on getting beyond basic call centre capabilities into more complex tasks such as network troubleshooting, risk analysis, human resources and finance. He said: “As the contact centre industry evolves, it’s more than just voice. The trend is definitely up the value chain.” However, how exactly to move up is a big issue for the industry, said Hamlin. “Finding people with supervisory and managerial skills is key,” he said. There definitely was a more sobering side to the survey’s results, which suggests that it will not just be a matter of plugging in casualties of the global economic slowdown, that is, would-be or returning overseas workers into the Philippine BPO industry. Almost 70 per cent of BPOs said that they hire only 10 per cent or fewer of the applicants that apply for work, indicating that a significant skills mismatch continues to exist, according to Hamlin. Survey respondents cited oral and written communication skills as the biggest gap, followed by analytical thinking and problem solving. In Vancouver, Maria Javier, a program manager at Multicultural Helping House, which is helping foreign workers from the Philippines cope with the economic downturn, added that while it might seem encouraging to hear that BPO facilities are faring well, most workers from the Philippines who lose their jobs here and face being forced to return will find little comfort in such news.
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