TRADE Secretary Ramon M. Lopez said business process outsourcing (BPO) companies investing in the Philippines are engaging in higher-value activity, enabling the industry to climb the value chain.
“Our country is increasing its capacity to become a global player in IT-enabled services through the provision of analytical and AI skills development, competitive enabling environment, and cost efficiencies. This ensures that investors can profitably serve international and fast-growing regional markets,” Mr. Lopez said in a statement.
Mr. Lopez said he met with Mphasis Corp. Chief Executive Nitin Rakesh and Industry Solutions Group SVP & Global Head Indranil Roy in April to discuss the company’s plans to enter the Philippine BPO market.
The US information technology company expressed interest in the Philippines as a major destination for high-value services, and expects to hire an initial 1,500 to 2,000 for call center jobs.
According to the Department of Trade and Industry (DTI), Mr. Roy said the company services major banks and insurance companies, which made the recommendation to Mphasis to try the Philippines.
Mr. Lopez said the Philippine BPO industry, which refers to itself as the Information Technology-Business Process Management (IT-BPM) industry, remained resilient over the pandemic, as it did not lay off workers.
“Resources would not be a problem as the country has a workforce of 49 million, generates 800,000 graduates annually, with 30% coming from the science, technology, engineering, and mathematics (STEM) field,” he added.
The Board of Investments (BoI) Managing Head and Trade Undersecretary Ceferino S. Rodolfo also said the BoI can match Mphasis Corp. with various educational institutions should it seek to develop talent at the school level with a custom curriculum.
“Another resource that they can tap into is the returning overseas Filipino workers (OFWs) who have an advantage in terms of experience with their new knowledge and skills acquired from their respective countries,” he added.
The Philippines holds 13% of the global IT-BPM market, and accounts for 1.3 million direct jobs and 4.5 million jobs overall, with more than 700 BPO companies in the country, according to the DTI.
“Our continued efforts to upskill our workforce and liberalize our industries through major economic reforms… have proven our capability to position the Philippines as an ideal investment hub in Southeast Asia. We look forward to how the next generation of leaders can further build on these successes,” Mr. Lopez added. — Luisa Maria Jacinta C. Jocson
