BPOs focusing investment on skills upgrade

THE technology and outsourcing industry said it needs to invest heavily in worker reskilling to come out stronger after the pandemic, which has accelerated the digital shift while also forcing companies to find effective ways to work under quarantine.

The pace of digital transformation has picked up since the global outbreak of coronavirus disease, which according to the IT and Business Process Association of the Philippines ( IBPAP) must be met with upgrading the skills of the industry’s workers.

“Investments have to be made in the upskilling and reskilling our people in order for us to address the disruption brought about by digital transformation,” IBPAP Chairman Lito T. Tayag said in a virtual briefing Thursday.

Investment in the technology and outsourcing industry rose 37% year on year to P11.4 billion in the seven months to July, the Philippine Economic Zone Authority reported.

The adjustments that had to be made in light of the pandemic, including the procurement of work-from-home essentials and transportation costs for employees working on- site, also commanded significant investment.

“A lot of the investments are in the stabilization of the operations,” IBPAP President and Chief Executive Officer Rey E. Untal said in the same briefing, which was held ahead of the group’s 12th International Innovation Summit in November.

The industry group said productivity is at 90% of prepandemic levels after “quickly” transitioning to a blended work set-up. Many of its member companies are “strengthening” their ability to deliver work “consistently and productively” either in an on-site or work-from-home scheme.

“We certainly recognize that we are not out of the woods just yet and we cannot relax, in terms of the processes and policies we are enforcing to manage the pandemic and balancing that with our ability to deliver work,” Mr. Untal said.

Last year, the technology and outsourcing industry’s revenue grew 7.1% to $26.3 billion, while full-time employment rose 5.8% to 1.3 million.

The IBPAP is currently updating its industry outlook to reflect the impact of the pandemic. Previously, it projected revenue of as much as $32 billion and headcount of 1.57 million by 2022. —