Manila: Philippines needs to invest more in education to deepen the recruitment pool amid a boom in the global outsourcing business, an industry association said Tuesday.
The Philippines is close to being on the heels of India as the next preferred destination of outsourced business, with the industry employing about 230,000 and churning out some $3.4 billion in revenues in 2006 alone, said Oscar Sanez of the Business Processing Association of the Philippines (BPAP).
He said the Philippines was also in a position to take more than 10% of the global outsourcing business worth $450 billion in the next few years if the right policies were in place.
“We are still counting 2007 and we estimate 2007 to be closer to 320,000 employees and very very close to about five billion dollars in revenues,” Sanez told the Foreign Correspondents Association of the Philippines.
He said the outsourcing business would soon branch out into other fields apart from customer care, to include areas such as animation, gaming, financial services, design, architecture and even engineering.
But the Philippines needs to deepen its pool of talent, Sanez said, stressing that most college graduates needed more training to be able to pass global standards.
“The first challenge is talent supply,” he said, noting that the local industry is faced with a “low recruiting yield” at the moment.
“What we would like to do is to make some intervention in the area of education, particularly in short term training so we can get college graduates employable from day one,” he said, adding that government should help them in this endeavor.
“We think the growth will continue in the next few years,” Sanez said. “What you dont want to see is really to miss the boat on this one.”