Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
More skilled workers indispensable for the growth of the bpo sector
1. www.managedoutsource.com (800) 670 2809
More Skilled Workers Indispensable for the Growth of the
BPO Sector
Studies in business process outsourcing trends show that to
ensure steady growth, the BPO sector requires more skilled
and accomplished workers.
Managed Outsource Solutions
8596 E. 101st Street, Suite H
Tulsa, OK 74133
2. www.managedoutsource.com (800) 670 2809
Business process outsourcing is the process in which a company outsources off-beat
business activities to another firm. This is one of the most flexible outsourcing processes
that involve a close partnership between the outsourcing provider and the customer.
Today, business process outsourcing solutions have become a significant part of almost
all businesses as they prove to be cost-effective whether data conversion services,
document scanning services, legal or medical data entry and so on. A reliable BPO
provider assures:
Improved productivity
Better utilization of resources
Better human resource allocation
Cost reduction
BPO Industry Needs More Skilled Workers
With more and more companies relying on BPO services, the BPO sector requires more
skilled workers especially in the software and computer programming field. Across the
Philippines, an outsourcing hub, around 1.2 million workers are at present employed in
the IT-BPO sector. Most workers are engaged in voice services, accounting and
inventory. Observers in the field point out that software and computer programming is
underdeveloped in Philippines due to lack of qualified workers. A method to overcome
this situation is by providing educational facilities and encouraging the students to take
up mathematical skills in primary and secondary educational system. Graduates of
science, technology, engineering and other math related courses have the opportunity to
become engineers and computer programmers who are in high demand in the IT-BPO
sector. The BPO sector has registered a tremendous growth in last 10 years and
continues to grow over the years.
According to Nasscom (National Association of Software and Services Companies), an
industry body, employees working in the IT and BPO industry in India will need to be re-
skilled due to the rapidly changing digital technology, which may replace some jobs as a
result of automation. India’s IT and Business Process Management industry employs 3.7
million employees at present and continues to maintain its leadership position in the
global technology arena with more than 2 lakh (0.2 million) net additions and 3.5 lakh
(0.35 million) digitally skilled employees. Nasscom suggests that the industry will require
1.2 – 2 million employees to meet the next $100 billion of revenues. The global
enterprise technology spend will grow at 3% to 4% and touch $4trillion by 2025, as per
the Nasscom study. On account of changing technology and skill sets in demand, it is
predicted that there will be gradual shift of the industry towards automation. As a result
3. www.managedoutsource.com (800) 670 2809
around 5 – 10% of the existing jobs may be automated in the coming 10 years. This is
bound to cause significant change in existing skills across jobs functions.
Advancing technology will also result in the creation of some new jobs in areas such as
nanotech, smart technologies and biotech among others. Around 60% to 70% of the
present workforce will need to be re-skilled in technology, domain, social, and thinking,
the Nasscom report adds.
Outsourcing business processes to a business process outsourcing company will continue
to be a popular trend with businesses benefiting from access to a reliable and highly
skilled talent pool without investing in hiring and training activities. Studies on BPO
trends show that at least 95% of businesses view outsourcing a key element to
developing and running a successful business.