BPO industry’s increasing shift to automation worries call center agents, impacts women more

BAGUIO CITY – The government continues to tout the business process outsourcing sector as a key growth driver and jobs generator, but has not done much to stem the danger of job losses as many big businesses, especially foreign clients, shift to automation, an industry leader said.

According to BPO Industry Employees Network (BIEN) spokesperson Mylene Cabalona, the IT-Business Process Management (ITBPM) has reported the alarming impact of automation on jobs, given that at present BPO workers do not enjoy security of tenure even if they are considered regular employees.

According to the ITBPM, employment in the low-end services will be slashed by at least 43,000 due to the shift to automation. The International Labour Organization (ILO) paints a dimmer picture – citing that 89% of BPO workers in the Philippines are at high risk due to the change in technology.

“Companies implement many schemes in order to ‘manage out’ employees when necessary. Workers are forced to resign or their companies render them floating for months with no pay when clients pull out from vendors, even if the company is continuously hiring for other clients. With the projected job losses due to automation, the situation can get worse and massive,” Cabalona said.

The group underscored the precarious nature of jobs and the vulnerability of the BPO industry itself. “The possible impact on jobs and workers of this shift to automation also exposes how insecure jobs are in the BPO industry and even the industry itself. It is heavily reliant on foreign markets and changes, outside of our control. The danger is the government seems to depend on BPO industry to generate employment, however precarious. If the government is serious at securing decent jobs for the people, then it should look into developing more robust industries to create jobs,” Cabalona said.

No unions

The group noted that since trade unions in the BPO Industry are virtually non-existent, BPO employees do not have a voice, are unable to defend their rights, and are thus bound to suffer the consequences of automation.

“The shift to automation is ultimately driven by companies’ desire to further bring down its costs. And the disruptions due to the shift to automation do not pertain to business disruptions, because this shift will benefit companies more while livelihoods of thousands of Filipino workers and their families will be at risk,” Cabalona added.

The group is also worried that the shift from low-end services to middle and high-end services with automation will disadvantage more women working in the BPO industry. According to the International Labour Organization (ILO), majority of those working in the BPO sector are women but they are largely employed in low-paid and low-skilled jobs.

“Companies and the government should be reminded that it is first and foremost their responsibility to uphold and respect the right of workers to secure and decent jobs. The shift in technology should not mean displacement and burden for the workers. BPO workers are thus summoned to unite and take action to assert our rights in this context,” Cabalona added.

source: interaksyon.com

Healthcare BPOs pushing through with US roadshow despite shutdown

MANILA - The organization of Philippine call centers today said it will push through with a roadshow in the US despite its government's shutdown.

In a statement, the Contact Center Association of the Philippines (CCAP) said the roadshow in four major cities in the US will be held  from October 20 to November 5, and is aimed at selling the Philippines as an outsource location for healthcare IT.

“Healthcare IT and information management are areas where Filipinos can excel because of our wealth of professional doctors, nurses and clinicians and our proven expertise in voice services,” said CCAP president Benedict Hernandez, who will join the roadshow of the Healthcare Information Management Outsourcing Council of the Philippines (HIMOAP).

The US market for healthcare information is seen to grow to $54 billion by 2015.

Josefina Lauchangco, HIMOAP president, called on contact centers to gear up for their entry to the highly lucrative US healthcare IT outsourcing market, which comprises 60 percent of the global market for healthcare IT.

She said Philippine healthcare business process outsourcing firms (BPOs) have already quadrupled since 2009 and will further grow to a $1-billion industry by 2016.

Driving this market’s growth is the US Healthcare Reform Bill, more popularly known as “Obamacare” after President Barack Obama.

Under the measure, more than 40 million Americans would become eligible for healthcare coverage. For a citizen to avail of healthcare benefits, they have to go through a tedious process of verification for eligibility, a service that can be outsourced to a company based offshore, such as the Philippines.

The US government spent $3 trillion for healthcare in 2012, representing 17.3 percent of its gross domestic product (GDP).

“In the next three years, four million new enrollees are expected to join the American healthcare system. This will further grow to 35 to 40 million by 2016," said Lauchangco.

Offshore outsourcing is the most efficient way to manage the growing requirements of healthcare IT, Hernandez said.

According to Lauchangco, five factors drive outsourcing: the urgent need to cut healthcare cost, an aging US population, the rise in the incidence of diseases, the demand for trustworthy and error-free healthcare delivery, and growing requirements for an integrated healthcare system.

As more Americans apply for Obamacare, Lauchangco said the demand for hundreds of helpdesks manned by healthcare professionals 24/7 will rise and provide outsourcing opportunities for Filipinos.

“We have an opportunity to build the Philippines as a differentiated brand of knowledge workers. This is an area that can withstand price wars and shield the country from economic downturns," Hernandez said.

CCAP has nearly 100 member-companies that account for 70 percent of contact center revenues in the country.

source: interaksyon.com