PH Expected to Top Call Center Outsourcing Destination
As per Hernandez in their recent briefing wherein they announced the organization's annual conference, the contact center sector will continue to accumulate over 73,000 jobs annually to 1.2 million workers in 2022 from 751,000 last year.
Revenues are expected to have a yearly 8% growth in the next six years, amassing a total of $20 billion compared to last year's $12.8 billion.
Both approximations include the impact of artificial intelligence which may result to mass layoffs.
"Net, there will be growth, we are not going to decline, nor stand still," stated Hernandez.
The CCAP president added that the industry's demand is evolving from mid-range to more complex jobs while clerical tasks are being automated. As a result, the latter's share would deflate to 27% by 2022 from last year's 47%.
Before, the contact center sector was typically front office, but nowadays, the industry is now able to handle backend tasks such as accounting and finance, human resource, procurement and marketing. Just like how Coefficients Co. Ltd. started. The local business process outsourcing company started with back office process but now offer a variety of services including sales and support operations for a major US telecommunication service provider.
Trends seem to point to telecommunications, healthcare, pharmaceutical, and insurance as the largest growth contributor in the country's BPO sector.
As Hernandez stated, clients in the majority of the clients in the past few years had been US based companies but now there's diversity. European and Asia-Pacific clients are now included in the mix, the latter mostly influenced by Australia which comprises 15% of the market. North America, however still has the majority of the shares with 72%.
"We have diversified industries and markets," Hernandez said.
Hernandez stated that the diversification and shift to complex jobs would greatly affect the country's educational system, human capital development, as well the investors in digital technology.
According to Frost & Sullivan's study, the IT-BPM industry as a whole would approximately lose 40,000 jobs due to automation.
Consider the outsourcing market has an annual growth of 6% - it is expected to be valued $250 billion by 2022 as compared to last year's $166 billion – and Philippines' growth pace would suffice to take the industry to greater heights even after the impact of artificial intelligence.
As a matter of fact, the country's share to the global outsourcing landscape is expected to grow as much as 15.5% in the next five years as compared to 12.7% of last year's.
"We -- the Philippines and India -- still dominate the (outsourcing industry). We have owned the large piece of market and we invest continuously to maintain the dominance," Hernandez said.
The projected 8% growth is significantly slower than the 16-18% growth rate the BPO is getting. As per Hernandez, "It is more tempered but it we are still in high single growth environment factoring geopolotics and technology,"
CCAP is set to hold their "Contact Islands" conference in Shangri-La Resort in Boracay on October 11 and 12. The said conference will discuss the crucial industry trends such as the impact of robotics, artificial intelligence, data analytics, and other major technologies, on the industry and workforce.
While the country manage to remain the 2nd top outsourcing destination, a bit behind India, experts are optimistic that PH will eventually bag the top spot amidst the threat of automation and the China's booming outsourcing market