The decade-high inflation rate in the Philippines at 11.4 percent may push Business Process Outsourcing workers ti turn to their employers of the job market to increase their pay to compensate for the rising cost of living , this is the prognosis presented by Canada-headquartered Information Technology research firm XMG. Despite of the global financial turmoil the local business process outsourcing or BPO market remain robust. However, it will face HR challenges, especially talent shortage and higher salary demand as the sector copes with surging growth.
The call center, Information Technology and Business Process Outsourcing in Metro Manila should brace themselves for increasing employee sentiments to have their salary reviewed to combat inflation. The research firm noted that over 73 percent of respondents expressed a need for increased compensation from their employers. In the third quarter of 2008, the index was conducted and polled 100 ICT professionals working in Metro Manila.
In the report it stated that 73 percent over the 70 percent are actively looking for a better opportunities within the city or over seas. It is only 12 percent that are currently satisfied with the current salaries. The numbers indicated a genuine trend of employees demanding increases in the cash component of their remuneration, this is according to the research satisfaction at XMG, Emerson Fababaer. There were very few extrinsic options for employers to address the challenges. Either provide a relief in the form of increased compensation, allowance, subsidy or position the current compensation package as being above industry.
The companies have been able to address this by performing regular compensation benchmarks as well as aligning employee attitude and value in building a sense of ownership in the company. The XMG report suggested organizations frequently review their worker incentives programs to raise employees level of commitment and overall productivity. The companies should also independently monitor employee perception and behavior to accurately gauge employee sentiments toward the organization, this is to raise employees level of commitment and overall productivity.
The Philippine Outsourcing Industry will largely remain a bright spot in the next two years and continue to grow well in the next decade. The ongoing credit crisis will force financial and insurance firm to seriously consider selling Information Technology and business process service units to third party providers. The XMG predicted that global offshoring to grow 34.7 percent through 2010, this is becaue of the economic slowdown and expected recession. The research firm reduced its forecast to 24.2 percent-due in large to reduced investment by a captive operations.
The global financial upheaval will have a deleterious effect across most industries, however the Information Technology industry and offshoring, the Philippines BPO market growth is expected to fall from 31.2 percent to 25.6 percent. The local Business Process Outsourcing is expected to employ 920,764 Filipinos and generated to US$12.2 in an annual revenues by the year 2010. Outsourcing is the current trend in the global industry today, especially when it comes to hiring the workforce that they need. People can earn a lot of money if people make use of the outsourcing opportunity for employment.
REFERENCE:
http://www.zdnetasia.com/hr-issues-to-affect-philippine-bpo-62047060.htm
http://state-unemployment.com/2831/outsourcing-opportunity-for-employment-for-those-who-need-a-job/
http://microsites.globalservicesmedia.com/destinations/show.article.asp?5D5A115E575B115E
