More skilled workers indispensable for the growth of the bpo sector

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.

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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 reskilled 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

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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.

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(800) 670 2809