After call centers, ICT unit eyes more outsourcing growth

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By Alexander Villafania

QUEZON CITY, METRO MANILA – After call centers, the government wants to grow outsourcing opportunities in health information management, finance and accounting services, human resource, and animation and game development.

Call centers make up the fastest growing and most dominant outsourcing sector in the Philippines with about $11 billion in revenues in 2011.

Department of Science and Technology – Information and Communications Technology Office (DOST-ICT) Executive Director Louis Casambre said that following the growth of the contact center industry in the past decade, the four industries mentioned would be provided with several support mechanisms to help them grow.

These include recruitment marketing for more potential employees, workforce core skills development, long-term roadmaps, and utilizing global competitiveness assessment tools.

While nearly 80 percent of all outsourcing revenues came from contact centers – including over 400,000 employees – Casambre believes that the Philippines can still very well compete in the other outsourcing sectors.

However, Casambre acknowledged the importance of the contact center industry as one of the main reasons why the country became an outsourcing powerhouse.

In fact, the industry provided 5.4 percent of the country’s gross domestic product in 2011 and is expected to contribute another 8.6 percent in the next three years.

“We are expecting BPO not only to contribute significantly to the GDP in the next five years, its most significant impact would be on employment,” he said.

“Our programs are not limited to that of industry but also improving the quality of our graduates and improve their chances of landing jobs not only in the BPO sector but in other industries as well,” Casambre added.

The Business Process Association of the Philippines (BPA/P) is eyeing to generate around $25 billion in export revenues and another 1.3 million outsourcing-related jobs until 2016.

BPA/P chairman Alfredo Ayala stated that the government’s role in working with private firms is necessary to ensure growth in the outsourcing industry.

The ICTO presented its ICT Industry Development programs to senior DOST officials last December in which Science Secretary Mario Montejo said he would have other DOST agencies coordinate with the ICTO.

The ICTO was formerly the Commission on Information and Communications Technology (CICT) that was absorbed by the DOST in mid-2011. Prior to being absorbed, the CICT presented its Philippine Digital Strategy 2011 that was supposed to be the roadmap for all government-related ICT policies.

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