Breakthroughs Issue 1
Breakthroughs Issue 1
MAY - JULY 2007 • Vol. 1 - No. 1 • 16 Pages • FREE
Top BPO Companies Low wages, one of the reasons why India has drawn in investors,
is becoming a thing of the past, as salaries of BPO employees are be-
coming higher and getting to be more competitive. As a result, BPO
It was an award meant to honor as several members won in Cebu Educational Development firms that refuse to be saddled by the increasing costs of scaling up
the outstanding accomplishments the following categories: BPO Foundation for Information are looking for less expensive alternatives. The Philippines, already
and major contributions of the major Company of the Year, Accenture Technology (CEDF-IT); Celeste recognized as a BPO center in Asia and a fast-rising player in the
playersandleadersoftheInformation Inc.; Best New BPO Locator of the Ilagan of the Board of Investments market, is becoming the destination of choice.
and Communications Technology Year, Dell Philppines; Best Mid- (BOI); Mitch Locsin of the Relocation is not only the prime reason. Some BPOs in India may
(ICT) industry. Organized by the Sized BPO Company of the Year, Business Processing Association retain their primary facilities in that country, but outsource the sup-
Canadian Chamber of Commerce, Leverage Systems Technologies; of the Philippines (BPA/P); port services to the Philippines.
it also intended to showcase that BPO Employer of the Year, Don Felbaum of the American Establishing a base in the archipelago is generally regarded as
businesses and people in the Convergys Philippines Services; Chamber of Commerce of the easier. Neither does scaling in the National Capital Region’s business
Philippines could compete in the Fastest Growing BPO Company Philippines; Henry Schumacher districts rack up the same huge costs as in the more populated Indian
larger global arena. of the Year, TeleTech; Most of the European Chamber of cities.
Thus, last March 1 at the Innovative BPO Company of the Commerce of the Philippines Some companies which have effected a transfer to the Philippines,
Renaissance Hotel in Makati City, Year, Transprocure Corporation; (ECCP); Sean Georget of the an acquisition, a partnership with a local firm, or the creation of a new
the International ICT Awards gave ICT Contributor of theYear Canadian Chamber of Commerce facility include Infosys BPO, HTMT, IBM Daksh, and GenPact.
recognition to firms, executives, (Public Sector) Department of of the Philippines; and Richard The Philippines is not the only competitor in town. Industry in-
workers, and groups that made Trade & Industry; (Private Sector) Mills of the International ICT siders have said that investors wanting to set up shop for their tier-2
a huge impact on the Philippine Bong Borja. Awards Committee for 2007 facilities are studying the advantages of doing so in China, Thailand,
business sector in 2006. The BPO The panel of judges were as and the Chairman of Chalré Vietnam, and Malaysia.
industry was well represented follows: Belen Bonifacio of the Associates.
WHAT’s INSIDE
BPA/P CEO Oscar Sañez Back Office Outsourcing B&M Global Services and Shell
p. 12
www.bpap.org
p. 9 Shared Services pp.14-15
Business Processing Association PHILIPPINES
MAY - JULY 2007
Company News Breakthroughs
What’s In An Accent?
search of Fortune 500 companies in terms Describing the BPO industry as a sunrise
of outsourcing location preference placed industry, Sañez says that there’s no doubt,
the Philippines No. 2 against India particu- the Philippines can make it to where it wants
to be but stresses the importance of being
larly in sub-sectors of contact centers and
organized; otherwise, “we might miss the
back-office operations. boat and miss a lot of opportunities.” This is By Brandon Miller ([email protected])
where the crucial role of BPA/P comes in – as & Mark Thaler ([email protected]) of Edulynx Corp
Strengths and weaknesses an intervening body that will take care of the With contributions from Richard Mills and Moi Lee-Rodriguez
The Philippines’ fertile BPO/IT needs of industry that are above the levels of
environment is based on a number of concern of the BPO and IT companies. It is no secret that we are at an exciting crossroads in the Philippine
factors, the most important of which are BPO industry. We have all seen the articles for years heralding this sun-
cost competitiveness, quality of service, 2010 and beyond shine industry, but it now seems that there’s a shift in the news of the day
and sustainability of talent. Beyond 2010, Sañez is optimistic that
new businesses will evolve from what the to the evolution of training.
The Philippines is at par with the world’s
major BPO players in the aforementioned industry is now. “In the future, there can be
areas but there’s still a lot of room for a lot of real-time work like a marketing or Training is finally getting the attention that is due, with its biggest recognition to date
improvement. If the industry is determined design team in a conference in the States with coming from the government in the form of “Training for Work Scholarships”. Industry
a draftsman based in Manila, and a creative players agree that the HR pool surrounding BPO operations is close to exhaustion, and the
to meet its target goals by 2010, then the
team in Japan all working together, adding options to truly grow while not poaching other agents are somewhat limited. To continue
challenges must be addressed, says Sañez.
their inputs to the work in real-time. That’s to grow the industry, operations must decentralize their facilities or reach out and train a
Among the serious supply side
higher value for work because that’s real-time workforce to meet a minimum employable standard.
constraints cited in the BPA/P paper are:
decision-making enabled by technology and There is a lot of buzz as to what is the best way to train, and there are still many ques-
insufficient quantity of suitable and willing
leveraged by capabilities of different cultures tions that surround training and where the importance should lie. Previously an integral
talent to fuel growth, insufficient quantity
around the world. We can participate in that.”
of suitable space to achieve 2010 goals, portion of numerous training programs was Accent Training as opposed to today where
Sañez adds that what is happening right
and persistent perception of the Philippines Accent Neutralization seems to be at the forefront of training programs.
now is just a small part of what the industry
as a high-risk environment. According to Moi Lee-Rodriguez, training manager of PeopleSupport, “Call centers
can potentially become. “There are things
Sañez stresses the need for more quality essentially operate on the basis of ‘aiming to please’. Depending on the markets they serv-
beyond what we see right now. There’s going
and quantity of our workforce. “We may ice, local call centers may do some accent training to acquire British or American accents.
to be a lot more,” he assures.
produce a lot of graduates but it may not Training would depend on the needs of the client - if the client requires customer service
be the right skills. There’s a need to have
representatives to sound like native speakers.”
a good matching of supply and demand
here so the challenge for us is to be able PeopleSupport does Accent Neutralization over Accent Training with the objective to
Strengths,
to produce enough qualified candidates— reduce strong native accents.
those with the right IT skills and language Worked into any discussion on accents these days is the difference between the Indian
proficiency,” he says. accent and the Filipino accent. It is not secret that a lot of voice-related BPO services are
“What we need to do is have an
initiative in all the key industry areas that Weaknesses, packing up operations in India and moving them to the Philippines. A very good example
is Citibank which met a lot of resistance in their Australian operations due to the Indian ac-
will help solve those issues. If we don’t act cent. Citibank is by no means the only company looking to the Philippines as an exit from
as an industry body, we will not be able to
grow,” he warns. Challenges India due to accent-related issues. More have come and more will continue to follow.
The importance of accent training was initially important, but there has been a shift.
By the year 2010, the industry hopes Less attention is placed on purging the accent but training people’s conversational skills.
to increase its total global market share Manpower strengths: Call centers especially those engaged in outbound campaigns are looking more to people’s
from 4 percent to 10 percent and reach a confidence and clarity as opposed to their accent.
revenue target of $10-12 billion. In terms • High literacy rate (97 percent in the Additionally it is important to note that culturally there is less of a divide between
of manpower, it foresees hiring around National Capital Region, 89 percent in Filipinos and their Western neighbors. This can be attributed to the country’s history and to
150,000 annually. the rest of the country) their understanding of Western culture. Filipinos have worked around the world for years
and that fact alone has truly had an affect on their ability to adapt to customers from differ-
BPA/P and the government • Familiarity with Western culture ent areas of the globe.
hand in hand • Competent English-language skills For this industry to survive and more importantly thrive, there needs to be importance
Elaborating on the rationale of the placed on the training and more specifically English fluency, not just in the short-term but
roadmap, Sañez points out that more than • College education in the long-term educational makeup of this country.
just a destination or set of goals, it serves • Lower salaries compared to other off-
as a guide in showing the challenges, the
roadblocks, and potential bridges that may shore destinations
not be open to the industry for it to reach its
destination. The BPA/P, he adds, needs to
work with the different government arms Manpower weaknesses:
to address different areas of concern.
“Example, we do face challenges for
• Low hiring rate of 5 percent
qualified talents, so what do we need to • High attrition rate of 15 percent
do to increase recruiting yield? It may
require that we work with the Department
of Education or Commission on Higher Concerns that must be addressed:
Education in building a new curriculum
or raising standards of education. It may • Will the Philippines continue to attract
be initiatives that will require us to work investments?
with the Board of Investments or it may
just be about helping us change the image • Specific strategy to propel the industry up
of our country so we can attract more
investments,” he explains.
the knowledge intensity ladder
• Government support for rapid development
Getting down to business
At the moment, Sañez is in the thick of of infrastructure and personnel
recruiting around 12 people to make up the • Skills of workers must be matched with
team that will help develop and execute the
roadmap. the actual job requirements
“One thing different about this team is
that I will be hiring professionals who may [Source: An Analysis of the Philippine Business BPA/P Next General Membership Meeting
Process Outsourcing Industry, ERD Working
or may not be from this industry but who
Paper No. 3, written by Nedelyn Magtibay- When: June 25, 2007
are experts in fields like marketing, human
resources, or advertising.”
Ramos, Gemma Estrada, and Jesus Felipe.
The ERD Working Paper Series is a forum for
Sponsored by:
Sañez knows whereof he speaks as research and policy studies undertaken in or
he himself is not from the BPO industry. behalf of the Asian Development Bank.]
A former country manager for Procter &
Investment and 5,000 New Seats ture was awarded the Philippines’ Business
Processing (BPO) Company of the Year.
Information technology company branches in the region, makes its IP-Contact tions, hotel and leisure, and industry and Accenture’s Manila operations serv-
IPVG Corp. ties up with PCCW Teleservic- Center the sole provider servicing the English- finance industries, among others. ice its other branches in the United States,
es (Hongkong) Ltd., in a venture that will speaking requirements of clients of PCCW The first 1,000 seats of the projected the United Kingdom, Australia, Germa-
lead to a projected installation of 3,000 to Teleservices and IPVG. 3,000-5,000 will be set up this year. ny, and Asia with core competencies in
5,000 call center seats and an investment of IPVG’s call center operations is based in IPVG Chief Executive Enrique Gonzales application outsourcing, infrastructure
$40 million in the next three to four years. Makati’s RCBC Plaza. The company intends said that he expects the call center operations outsourcing, BPO, and contact center op-
IPVG’s exclusive licensing and manage- to establish another facility to manage the “to be a major contributor to the company’s erations. Its biggest facility is the 5,000-
ment agreement with PCCW, the biggest call requirements of future clients. Currently, revenues” with an expected 23 percent share seater Robinsons Cybergate Tower II in
IPVG is servicing the airline, customer rela- in 2007 and 35-40 percent from 2008-2009. Mandaluyong City.
center operator in Greater China which has 11
For the second consecutive year, the Technical The inauguration of e-TESDA is the second TESDA Partnerships and Acquisitions
Education and Skills Development Authority [TESDA] human resource development initiative for TDS. The Global CyberSoft Inc.-BayanTrade: Global Cy-
selected TeleDevelopment Services, Inc. (TDS) to help first was announced last year, wherein the Agency di- bersoft Inc., a company specialized in Software Sourcing
Services for different domains such as Factory Automation for
develop the Philippines’ BPO talent pool. The Agency, led rected TeleDevelopment to provide free English lan- Semiconductor, Embedded Systems for Mobile Devices, and
by Secretary Augusto Syjuco, TESDA’s Director General, guage skills assessments for the first 50,000 applicants Automobiles and ERP business application has established a
partnership with BayanTrade, the premier Knowledge Process
and Deputy Director General Milagros Hernandez, under a Presidential initiative to provide widespread Outsourcing service provider with domain expertise in Supply
tapped TDS to provide an innovative, blended learning training to aspiring agents. The assessments are provid- Chain Management in the Philippines. The partnership be-
solution accessed from TeleDevelopment.com as well as tween Global CyberSoft and BayanTrade will complement each
ed under exclusive license from ProSpeak, a division of other’s existing businesses and further boost the growth in their
the newly launched e-Tesda portal at e-Tesda.gov.ph. Harcourt Assessment’s Ordinate Corp. SAP businesses. Global CyberSoft will provide the needed
The online initiative supports TESDA’s commitment resources for implementation while BayanTrade will focus on
The project, known as the PGMA Training for Work consultancy. Moreover, Global CyberSoft will provide low-cost
to provide “…the Filipino workforce with world-class Scholarship Program, allows applicants to take the 7- technicians for BayanTrade’s BPO business.
competence and positive work value.” As e-TESDA ex- minute exam from any phone. This establishes selection q q q
tends call center education onto the Internet, it leverages for immediate call center placement, enrollment in the Call Center Academy’s (CCA) seventh fran-
TeleDevelopment’s sixteen years of human resource de- PGMA program for training, or employment recom- chise: Call Center Academy (CCA), the first and largest
velopment in the U.S., Canada, Europe, and Asia. TDS’ mendations in an alternate industry. Applicants thereby call center training school in the country with over 3,000
tenure in the Philippines spans seven years. graduates, recently awarded its seventh franchise to Kris-
understand their own capabilities though immediate telle Lyne Ong. The new CCA center is set to open in Cebu.
The 2007 program, announced in time for Labor Day, Aside from CCA Cebu, CCA now has six new training cent-
feedback while TESDA has a powerful way to reduce
includes online access to call center learning wherein job ers – CCA Pampanga (Angeles City), CCA Malolos, (Bula-
costs with a streamlined approach to identify trainable can), CCA Sta. Rosa (Laguna), CCA Shaw (Mandaluyong)
seekers can practice English skills before joining face-to- CCA Las Piñas and CCA Recto (Manila).
applicants.
face classes at TDS’ Ortigas facility.
According to Jon Kaplan, TDS’ President and q q q
The online portion of the course is supplied by TeleDe-
velopment’s alliance partner, neuroLanguage, a Canadian- Founder, “These tools help us provide innovative SPi acquires Springfield Service Corporation
human resource solutions in all facets of the career life- for $44 million: SPi, a leading global business process
based eLearning provider. With a computer-based train- outsourcing (BPO) company, announced that it has acquired,
ing complement to TDS’ call center education, students cycle. We recognize that the Philippines’ BPO industry through a wholly-owned US subsidiary, 100% of Springfield
can hone their communication proficiency from the con- continues to grow at a fantastic rate. Keeping pace with Service Corporation for an aggregate purchase price of
$44 million, with the potential for future earn out payments.
venience of their home, school, or the nearest Internet café expansion means that we must embrace technologies Springfield Service Corporation (SSC), the 10th largest player
before they enter a classroom setting. The courses focus that make us more accessible and efficient. We are proud in the medical billing and revenue cycle management market,
has 383 employees operating in 5 locations in the US and
on the English language learning required for non-na- that TESDA and the office of the President continue to provides billing and accounts receivable management services
tive English speakers and introduce the necessary skills include TeleDevelopment in their efforts to develop the for over $1.3 billion of physician charges annually.
to succeed in the call center industry. economy through workforce education.” q q q
New brand from SITEL and ClientLogic: The re-
cently merged ClientLogic and SITEL Corporation unveiled
Expands To Ortigas
sociates, clients, and customers.
q q q
US-based Synex Corporation announces plan
to acquire Link2Support: Link2Support Inc. (L2S),
BPO International, Inc. (BPOI), the largest local outsourcing provider a knowledge process outsourcing and contact center com-
pany, based in Manila, has signed a definitive agreement to
of payroll and accounting services in the Philippines, is opening another be acquired by SYNNEX Corporation (NYSE: SNX), a global
office at Robinsons Equitable information technology supply chain services provider based
Tower in Ortigas. This facility will in Fremont, California. This acquisition was a strategic move
to expand SYNNEX’s capabilities in rendering high value IT
house primarily BPOI‘s finance services such as multi-tiered technical support, knowledge
and accounting services and will process services, and software to hardware engineering
ranging from small-to-medium-to-enterprise applications.
also serve as a backup/disaster
recovery site. The head office of Movements
BPOI will remain at the SGV II BT’S new Managing Director, Southeast Asia
Bldg., Ayala Avenue, Makati City. operations, based in Singapore: Mr. Shiva Singh,
BT’s newly appointed Managing Director, will oversee all
Since the time BPO sales and operations, as well as the delivery of the BT strat-
International acquired the egy, and promote the company’s presence and services in
the region, including Bangladesh, Indonesia, Malaysia, Sin-
outsourcing practice of SGV gapore, Sri Lanka, Thailand, the Philippines, and Vietnam.
& Co., it has expanded its He will also manage relationships with in-country partners
market portfolio and is setting and hold responsibility for customer satisfaction at all levels.
its sights on the international q q q
New National Operations Manager for DHL:
market. BPOI’s services include DHL, the world’s leading express and logistics company, has
finance and accounting, HR announced the appointment of Gerardo Ricardo A. Martinez
(payroll processing), suppliers’ as National Operations Manager. Mr. Martinez possesses a
background in contract logistics operations and sales, sea
accreditation and internal audit. freight operations and planning, procurement, inventory
BPOI’s extensive outsourcing management, materials planning, and teaching. Prior to his
new post, Mr. Martinez was acting National Gateway Man-
experience helps companies ager for DHL Express Philippines where his responsibilities
focus on their core activities, thus included ensuring the earliest possible delivery times and
gaining competitive advantage. latest possible pick-up times, while keeping productivity at
the optimum level.
image courtesy of www.robinsonsproperties.com.
Board Of Officers
Fred is the CEO of LiveIt Solutions, Inc., As its Country Manager, Dan has overall
Ayala Corporation’s holding company for business responsibility for ClientLogic’s
its investments in the BPO sector. LiveIt Philippines operation. He was most
seeks to invest in companies in the US, recently the Country Chairman of Salmat
And Trustees
India and the Philippines that provide Philippines, an IT outsourcing services
complex BPO services. company.
He was supposed to retire early. Yet at 50, Oscar Sañez, the new
CEO of the Business Processing Association of the Philippines is
pretty accomplished in his almost three decades as topnotch ex-
ecutive for multinational Procter & Gamble (P&G) – the company he
first went to work for after he finished Business Administration from
the University of the Philippines-Diliman.
But after his 5-year post as P&G country that. We can be big here because this is not an
general manager and managing director for overnight phenomenon.”
Australia and New Zealand, as well as with
his previous management executive posts in Recruit the best people
Singapore, Japan, and the United States, this Mr. Sañez says he is just fortunate for
Filipino just, well, missed home. “I remember the chance to make a difference in the BPO
my Economics teacher saying, ‘You can take industry, and he is keen to get more people
the Filipino out of the Philippines but you can’t not just by building his staff, but tapping
take the Philippines out of the Filipino,’” he people like himself who had worked in private
says. corporations and been trained in leadership
With that, he availed of P&G’s early retire- and management. “And this industry needs a
ment plan, packed his suitcases, and came back lot of those people. But indirectly, I want more
here to initially devote himself to education and people to support the industry in whatever
youth advocacies. Last year, he got involved with capacity they can,” he says.
GILAS, a multisectoral initiative aiming to create
Internet-connected computer laboratories in all of Create the right vision
the country’s public high schools. He also taught “Leadership that is able to paint a good
at the business management schools of UP and picture for the industry, as well as to enjoin
De La Salle University. But the executive was up others, is now required from us. And that’s the
to another challenge in his career, this time, to challenge for me now,” Mr. Sañez says.
contribute significantly to the country’s booming
business process outsourcing (BPO) industry.
The creation of a BPA/P CEO position came
Tap all possible support
Allied industries such as real estate,
after a thorough study concluding that while
telecoms, financial institutions, retail, among
BPO companies’ officials volunteer their time,
others are now aware of the fruits the BPO in-
a full-time manager is required to account for
dustry is reaping for the country. “After almost
and deliver results for the industry. A search
two months, I think we’re getting close to 90 to
was set for a CEO – preferably an experienced,
95 percent in terms of commitment to our 2- to
senior manager from a multinational (as
3-year plans,” he says.
multinationals tend to provide a more global
outlook) and one from outside the industry
who would have a very neutral stance and Sustain the industry’s efforts
perhaps a different perspective. And Mr. Sañez Mr. Sañez admits that now, the BPO sector
fits the bill. “I [was] attracted to the offer, not so needs all the support to get the initiatives go-
much because of the package, but more of the ing. “But I don’t want to see this industry body
industry. So I said, ‘Yeah, I think I’m interested becoming dependent on sponsors,” he says.
in doing this. ‘Well, I’m happy they chose me And he is optimistic that after three years, the
because I think I can really contribute to this association would be self-sustaining, in terms
effort,” Mr. Sañez says. of their presence and leadership. “Sustainabil-
Coming from the corporate world that ity is possible because by then, we would be
spanned 29 years of his career, Mr. Sañez says different in position in terms of revenue size,
his main challenge as a CEO of a trade or- employee scale, and the government and other
ganization like BPA/P is to build the very new countries will notice us and would pour more
industry. And to do so, all systems must be in support for our initiatives,” he believes.
place. Here, he details what BPA/P, under his
helm, aims to do to reach its 2010 roadmap: Collaborate with fellow contributors
The way to benefit from a fast, ever-chang-
Market it well ing global industry is to work with significant
players in the field, Mr. Sañez says. He suggests
Mr. Sañez says as CEO, it is clear to him
that he has to market the industry, and get looking at India not directly as competitor but
a fair share of support and attention that it a country with assets that complement ours
deserves. “It’s part of my mission to sell the in- like knowledge process outsourcing and other
dustry and the country,” he says. And by doing high-value services. Also, the Philippines can
so, we can get part of the untapped $250 billion offer day services to Australia and Japan, given
worth of services yet to be outsourced and off the close time zones. “We can have a signifi-
shored by First World countries. The pie is so cant share of the global pie just by combining
huge, we should be able to grab a big chunk of strengths,” he stresses.
Fred Ayala
(But Unable to Make It Stick!)
Karen Batungbacal carry weight because it ultimately accepts or rejects the
By manuel r. guillermo graduates through the employment process.
Rainerio Borja Member, BPA/P Power Committee The bottom line is that business should work with
Grace Dimaranan educators to create positive and measurable changes
Michael Garrison The fundamental questions for business in the school system. Business, in fact, should be a
demanding partner.
Rosalie Montenegro organizations today will be whether manpower
Myla Rose Mundo-Reyes will continue to lag behind requirements Successful Employee Education and Training
or whether management will act to close Employee education and training have become
Maulik Parekh
increasing qualification gaps. the most important driving force to the success of
Dan Reyes many large companies in highly competitive markets.
David Sutton Root causes must be addressed. We can trace Global or national competition, a changing workforce,
current failures to two causes: the widely felt decline rapid shifts in technology, and defects in the basic
Fermin Taruc in the country’s education system, and the generally education system have all combined to make training an
insufficient executive attention to employee education imperative response in order to succeed in the respective
and training. industries.
OFFICERS Business executives are often skeptical about
This article focuses on three underlying issues: employee-training programs. They naturally want
Fred Ayala a return on their training investment. If the process
Dan Reyes 1. Basic education processes are not tailored to meet of training seems to be failing, the solution is not to
the requirements of business organizations. A impulsively increase the training budget alone. The
David Sutton common complaint of employers is that universities training department staff should be asked to define
no longer produce graduates who meet their the problems, offer solutions, and implement a plan of
Atty. Jobet Mamuric basic skills requirements. The basic challenge for action to fix the process of training.
Oscar SaÑez educators is, therefore, to re-align curriculum to Too many executives do not know the cost of their
meet the current and future skills requirements of employee training, nor do they spend enough time
Mitch Locsin the business sectors and to urgently raise the quality to review their training programs. Executives must
NETTE ROSELO of education.
know what their company must invest in training and
Since improving the education system is a long- the results expected from the training department.
term process, a long lag time must be expected. The Executives must look at their training budgets before
resulting challenge to business organizations will be looking at their capital budgets.
twofold: first, to quickly fill the qualification gaps Most organizations are now beginning to realize
in their incumbent employees and second, for new that their large budgets for training employees pay
hires to be trained to be effective and efficient on a for too many unstructured courses. Chances are they
sustained basis. will be shocked at how many those employees are who
2. There is a risk that business leaders must face. have not received the minimal training required for the
Business organizations have somewhat little choice company to meet its objectives. Others will be surprised
but to rely on the existing education system, even to find out how much money is being spent for “nice to
EDITORIAL ADVISORY BOARD though the graduates may not entirely meet know” instead of the “need to know” courses.
their requirements. However, most business
organizations tend to regard spending for employee
ANAND CHOPRA training as risky due to the fear of resignation soon The Time for Leadership and Commitment Is Now
MANUEL GUILLERMO after the training. Such “leakage” of the benefits A major breakthrough to this serious problem will
MARIAN SANTOS HERNANDEZ of training weakens the incentive to any firm to require enlightened leaders with the vision of how to
undertake it, unless the organization is fairly large or build a successful education system. First of all, they
WILMA MIRANDA without competitors for the skills for which it gives must be able to surmount the negativism that will
MITCH LOCSIN training. Except for the few large multinational confront them from skeptics, indeed from “education
companies and local conglomerates, there appears
to be a general lack of management commitment to experts” who will resist and will eloquently shout that
undertake employee training on the scale required. “You cannot change the system. It may not be a perfect
BUSINESS INFO INC. system, but this is how education is done. It is different
3. The overriding issue for business organizations, of from business. Measurements and performance systems
course, is to develop a competitive workforce, not
HEINZ BULOS only locally but also (and inevitably) globally. We cannot work.”
Managing Director must recognize the magnitude of the task since Leaders of change must have the experience and will
global skill requirements are well beyond the reach to succeed. The best leaders will have managed major
Cora llamas of most local businesses today. changes in their own business enterprises and will work
editor-in-Chief in close partnership with the more open-minded and
The Challenge progressive education leaders who themselves have
Dahl Bennett The global reach of these issues indicates that been advocating change for a number of years, but have
LYNDA CORPUZ solutions require the coordinated involvement of constantly been mere voices in the wilderness. These
EVA GOYENA government, businessmen, and educators. No single leaders must have a consuming sense of purpose.
MANNY GUILLERMO group can do it alone. The solutions will require a range Long-term commitment will be necessary. They
MARIcris orpiano of bold, decisive, and far-reaching approaches. must be able to deal persuasively with people who can
Wilma miraNda Businessmen should take the initiative. Their first help their programs and with those who can hinder
challenge is to bridge the qualification gaps of their their programs. They must be able to cut through non-
Contributing Writers own employees through company-sponsored training essential and weak excuses to reach the important
programs. Executive management should initiate
DONNA LARAGA or upgrade existing employee training programs. decisions essential for change. The people who manage
Employee education and training can be done in-house change must not only have vision; they must be able to
editorial Assistant
in large organizations or through independent training see the vision and, most importantly, to implement it.
centers which provide specific and specialized technical Clearly, there is a need to make education a higher
JANIS DEI ABAD and management development courses. Large business national priority.
Layout Artist organization and local conglomerates should intensify Business executives, government leaders, and
efforts to provide their promising staff career training so educators have been saying for years that “people are
ORICO MACATANGAY they can assume increasingly higher level positions. our most important asset”. Confronted by change in
Production Head Secondly, business executives can assist to establish the business environment, both the public and private
programs such as job training centers and adult literacy sectors continually face new challenges in establishing
SHIIR MANZO programs that move unqualified, unemployed, but
eligible workers from unemployment to become and maintaining a motivated, trained and competitive
WILLIE BICERA workforce. Pressures from steadily advancing
qualified workers.
Photographers Thirdly, business-initiated movement is needed technologies, constantly changing government
to improve existing education system. If a company regulations, and the globalization of markets now affect
ADVERTISING CONTACTS does not have an active program of collaboration with every aspect of human resource management.
universities or local school systems, it should investigate We can no longer just pay lip service to addressing
ARMIE DUARTE opportunities to engage in mutual consultations and this mounting problem; nor can we continue to possess
NETTE ROSELO cooperation. the temerity to keep on uttering that “people are our
Government can support post-school education most important asset” and not do something drastic
through financial incentives to businesses, possibly about it.
Business Processing Association including tax concessions, as a means of persuading
of the Philippines employers in priority industrial sub-sectors to undertake
7th Flr. Oakwood Premiere employee training programs.
Ayala Center, Makati City Educators must, in any case, have the greater share Manuel R. Guillermo is the President and Managing Director of
of responsibility in the development of real solutions to KSearch Asia Consulting, Inc., an eight-year old executive search
Tel. 755-8806
education problems. However, the magnitude of the task
Email: [email protected] calls for improved partnership between businessmen firm which assists in the executive and managerial requirements
and educators. Business executives can, for instance, of mostly multinational companies, including those in the BPO,
BUSINESS INFO INC. help define what a high-school graduate and a university KPO and other IT-Enabled Services sectors . Mr. Guillermo is
Rm. 17-O, Burgundy Corporate Tower graduate must know and be able to do after 12 to 17 years a retired partner of Andersen Consulting (now Accenture) and
252 Sen. Gil Puyat, Makati City in school. Generalizations such as “know the basics” SGV & Co. He attended the Harvard Business School Program
Telefax: 886-4407 / 889-7763 will no longer be sufficient. Specific skills and attributes for Management Development in 1971 (PMD-22). He can be
Email: [email protected] must be defined. Obviously, business should not be the reached at [email protected].
only contributor to this discussion, but its input will
The Race Is On
Information is power, as the digital age keeps on telling us.
Strategy is the conduit of that power. And organization is what
holds all that driving force together – a force to contend with, a
powerhouse that makes everyone sit up and notice. Eliminate
one, and everything can collapse like a house of cards.
The availability of information allows us to view the landscape of what we can
offer as a country and as an industry that will afford us the license to participate
and win the market share we deserve in this global contest. Strategy provides us the
blueprint or the roadmap that will define the “how” to achieve the goals we have set
for ourselves, what are the key strategic choices we are making, what resources are
we harnessing and how will we drive those resources. Finally, an organization needs
to be created based on the demands of the strategic plan and driven to focus on the
key priorities set by the roadmap. An organization that is empowered to lead these
initiatives and has clear ownership and accountability for the task and the results is
destined to win and surpass what it had aimed to achieve.
As an organization, the Business Processing Association of the Philippines has
embarked on a major effort to harness existing resources and opportunities, develop
a roadmap for success and create a committed management team that will own, lead
and be accountable to the delivery of the plans laid out in the strategy. In doing so,
we are making a clear declaration to the rest of the world that we as an association
and as an industry are ready and committed to becoming the “destination of choice”
for all outsourcing and off-shoring IT-enabled service opportunities.
We do need to get going as what we stand to gain is simply staggering. The
BPO world market carries a potential of $300 billion in revenues. By the year 2010,
we must be able to garner at least 10% of what’s potentially addressable which
amounts to about $12 billion. Our present workforce of 260,000 can well explode to
920,000. This industry will be the third most important leg for dollar revenues for
our economy after electronics and overseas remittance and will contribute 10-12%
to our GDP. We will be contributing to employment growth and will help to build
a stronger middle class. We will be assisting the growth of other industries like tel-
ecommunications, real property, hardware/software, transportation, and retail. We
will be a strong engine of growth for our economy.
The race is on, and the roadmap is pointing us towards a bright and rosy future.
But the time to prepare is now. Like any good racer, we have to check our gear, fire
up our motors, and make sure we have the required stamina, willpower, and capa-
bilities to win the race.
Breakthroughs!
It is with great pleasure, and an amount of pride, that the Busi-
ness Processing Association of the Philippines (BPA/P) presents
you the premiere issue of Breakthrough!, our official newsletter.
Much has happened to our industry since the early days of 2000. During a much
slower age, before the Internet revolutionized the way we did business, thrusting our
operations into a much broader global arena where responses can happen at the click
of a mouse, the business process outsourcing industry was just a blip on the map of
global trade.
Now it has powered up and spread to become a powerful wave. More important,
especially for us, the Philippines has become a major player in Asia. We have done
more than our fair share of supporting our national economy and infusing much
needed input and resources into the strengthening of our sectoral infrastructure and
the training of our people. For this, the industry, too, can be proud.
Breakthrough! is a testament to our accomplishments, yet similar to a community
gathering hall where we can keep abreast of what is happening within our ranks to
encourage us and motivate us to support each other, while maintaining the spirit of
healthy competition.
Breakthrough! is also a clarion call to spur us to reach greater heights. As one of
our main stories have made it clear, there is much more work to done, and much
more that needs to be accomplished.
Yes, we have emerged as a major player in the global market, one that is continu-
ing to capture the attention of present and potential customers in the United States,
Europe, and Asia Pacific, but the bigger landscape poses more challenges and is in-
habited by tougher competition.
Our headline story talks about those challenges, and the roadmap that we are
strongly encouraged to pursue for the next three years if we are to consolidate our
gains and expand to a greater market. Research from some esteemed associations
such as the McKinsey Group with its landmark reports and the Asian Development
Bank clearly indicate the revenues we are continuing to earn, the clients we attract,
the interest that our country and our association members draw, while at the same
time delineating the kinks in our collective armor that we have to repair and other
concerns that we are to address if we are not only to enjoy our status, but to grow
well beyond it.
But take heart. The awards that industry members in the recent International
Communications and Technology Awards show that we are on the right track. So is
the recent news item that a significant number of contact centers from neighboring
India are finding the Philippines a logical – and we might as well hope – a long-last-
ing alternative as that country is beset by inflation and rising wages.
These victories are ours – to share with each other and as a catalyst to spur one
another. Breakthrough! is not just a newsletter meant to disseminate information (al-
though there is a lot of that) – it is, ultimately, your voice, your standard, your imprint
on our industry. We would truly appreciate your active participation in future issues.
E-mail us your concerns, news items you would like published, issues that you may
wish to be addressed in feature articles.
Let us know what you think. Engagement, cooperation, unity – these are the es-
sential ingredients of breakthroughs which we hope will continue to erupt in the
years to come.