Outsourcing group gets P350-M state assistance

THE TECHNICAL Education and Skills Development Authority (TESDA) has given P350 million of its training funds to the Business Processing Association of the Philippines (BPA/P), as a way of helping that organization achieve its 2010 targets, particularly in terms of ensuring a sufficient pool of qualified manpower. In a ceremony held Monday, leaders of the BPA/P and TESDA signed the memorandum of agreement that will effectively transfer the multi-million training fund, which is part of TESDA’s PGMA Training for Work Scholarship Program. BPA/P Chief Executive Officer Oscar R. Sañez told reporters in a press conference that the amount will address one of the three main issues outlined in BPA/P’s development road map, namely: quality and supply of talent. "We have to make sure that we have enough supply [of qualified labor] — that is the number one concern of the industry," Mr. Sañez said. Last Nov. 5, the 220-member BPA/P unveiled its plans for 2010 that aim to corner 10% of the $130-billion global business process outsourcing (BPO) market and generate nearly a million jobs by then. Other components of the road map are "next wave" cities — alternative outsourcing locations that offer a good business environment and decongest Metro Manila. TESDA Director General Augusto Boboy Syjuco said this year’s allocation is a significant increase from the P60 million given to that organization last year. "We expect this little investment to help us attain the goal of 10% [BPO] market share in 2010," Mr. Syjuco said. "There’s got to be a match between the supply and demand [in terms of skills] These short-term finishing courses will hopefully close the gap on suitability and availability of talents," Mr. Sañez added. Mr. Sañez explained that, last year, the training-for-work program resulted in employment of 97% of software developers, 91% of animators, 78% of medical transcribers and 75% of call center agents produced. The amount will be turned over to BPA/P in three installments: P150 immediately after the deal, and P100 million each at the start of the second and third quarters. Previously, Mr. Sañez asked the government to increase the budget for the training of "near-hires" — applicants who do not qualify after the six-month training program, as well as directly give the fund to BPA/P instead of channeling it through TESDA. Other BPO firms here, like Sitel Corp., followed the lead of BPA/P by conducting free in-house training to hone workers’ skills. On the sidelines of the press conference, Sitel President Danilo L. Reyes said they will invest at least P6 million this year for the five mobile training facilities in Luzon. "Anyone who wants to enter the call center industry, they apply and we train," he said. Last year, Sitel opened its first training facility in Baguio, costing the firm P1 million to P1.2 million. This year, Sitel will be opening facilities in Tarlac, Ifugao, Kalinga, Abra, Nueva Vizcaya and Cagayan. "We actually graduated more than 300 people already and about 80% of them we hired in Baguio," he said, adding that the training sites are expected to increase the much-needed agents they need. — Marian Grace S. Ramos, BusinessWorld