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IT-BPM attrition rate dramatically improves

Attrition rate in the IT-BPM industry has dramatically improved for the first time to an average of 50 percent from a high of 70 percent.

This improvement could be attributed to various factors from continuous education, training, salary, government intervention, and a discovery that, indeed, there is a career path for young people in this industry.

People are what make this industry great, in the same manner that it is its biggest challenge.

In a labor-intensive industry, Benedict Hernandez, president of Contact Center Association of the Philippines (CCAP), said continuous education is a must to upscale, upskill, and build capabilities.

This improved attrition rate may also be traced to the improved skills of the industry and workers. From mere data entry and directory assistance tasks, the IT-BPM industry has moved up to the mid-level (analytics and tech support) and high value added services (infrastructure technology).



Rommel  Reginio, SPI Global Holdings, Inc. senior vice president of Customer Relationship Management-Asia Pacific, noted that in the late 1990s the voice piece of the business was very generic but it has now moved up the value chain and expanded into email, chat and social media and multi-channel capability to omni channel.

Likewise, the competence of the workforce has evolved from pure customer support and care to become more empowered function engaging in improving customer loyalty for clients.

They are now involved in a lot of work on increasing and finding revenues for a particular type of company as they get more exposure on data analytics and infrastructure technology-embedded type of work.

The IT-BPM Roadmap 2022 covering 2017-2022 by Frost & Sullivan, which will be released sometime in October, is expected to highlight the human resource challenge.

The Roadmap 2022 Frost & Sullivan study predicts the low end voice or the low skilled tasks to shrink by 28 percent while the mid-skilled growing at 7 percent. Huge opportunities in the high skilled tasks at a high growth rate of 48 percent with more complicated functions driven by digital technology.

The six-year roadmap will consider the fact that only 16.6 percent or $166 billion of the $1-trillion total global sourceable works have been outsourced. This means there are still lots of companies out there that are still discovering the idea of outsourcing. The global IT-BPM industry is projected to grow a CAGR of around 6 percent between 2015 and 2022.

The Philippines, the world’s number one destination for voice services,  got a portion of the outsourcing pie with $22 billion in exports revenues. The target under the 2012-2016 roadmap was for the IT-BPM industry to hit $25 billion this year, end of the roadmap, and 1.3 million indirect employment.  The voice sector accounts for 70 percent of the Philippine IT-BPM industry.

The world’s biggest market is still the United States although its share has declined to 70 percent from 100 percent of total outsourcing industry in the Philippines. Australia, which only discovered the Philippines five years ago, is now the country’s fastest growing outsourcing market for the Philippines, accounting for 30 percent.

Hernandez also announced that about 100 foreign companies are interested in investing in the Philippine outsourcing industry.

Hernandez said this is the first time for CCAP, which is comprised of over 90 company members, to bring in foreign investors for the 11th International Contact Center Conference and Expo on September 27-28 at the Marriott Grand Ballroom.

Prospective investors are a combination of clients, mostly multinational companies, and outsourcing firms themselves, which are still unfamiliar with the Philippine BPO operations. These investors are comprised of captive market or in-house back office and third party outsourcing operators.

“They are not yet here, these are new,” stressed Hernandez adding that once they hear the Philippine winning formula they will surely do business here.