Two labor sectors have been major contributors to the country’s economic growth: overseas Filipino workers, and employees in business process outsourcing. Even before the pandemic, however, the BPO industry, which at the time contributed an annual average of $25 billion to the Philippine economy, already suffered from a shortage of workers with the required skills.
Philippine BPO operations are mainly voice-based, with English proficiency a requirement. As even President Marcos has acknowledged, however, Filipinos have lost this competitive edge. Among his priorities in education is the restoration of English proficiency starting in grade school.
Even before COVID entered the country, there were thousands of vacancies in BPOs that could not be filled. Yesterday the Technical Education and Skills Development Authority reported that BPOs continue to suffer from a manpower shortage – an estimated 15,000 to 25,000 call handlers.
BPO companies in information technology are offering skills training for prospective call handlers. Language proficiency, however, is not easily acquired, especially if it is not used in the speaker’s household.
TESDA and education officials should also consider upskilling for the BPO industry. Many analysts have warned that the BPO sector in the country is threatened as technology could replace the skills provided by call handlers.
Other countries such as India are ahead in skills-based BPOs. As in English proficiency, however, many of these skills must be learned and internalized from early childhood. Results of student competencies in recent years, unfortunately, have shown Filipino children lagging behind many regional peers in several areas including a basic skill, reading comprehension. The pandemic lockdowns in the past two years further set back education in the Philippines.
The country, however, cannot afford to give up, and must intensify efforts to provide its workforce with the necessary skills for gainful employment. Filipinos have been leaving for abroad in droves because they cannot find decent employment opportunities in their own country. BPOs offer such opportunities and are seen as attractive employers. Thousands of prospective BPO workers, however, have been turned away because they lack the required skills.
TESDA has been coordinating with the business community and local government units to address the mismatch in jobs and skills. There are more than 4,000 public and private training centers where TESDA short courses in various skills are offered for free. These include the required skills for agriculture, construction, healthcare and, yes, IT-BPOs. There are also online courses and three-year diploma courses operated by TESDA.
Local governments must help disseminate information about such training opportunities especially in underprivileged communities. Filipinos are willing to learn, and would want to acquire the needed skills for gainful employment. They just need to be put on the proper path, with sufficient information and support.
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