“We are confident that the target employment figure will be achieved even with the emergence of generative AI (artificial intelligence). Contrary to common assumptions, our group believes that the new technology will bolster the sector’s productivity instead of threatening jobs,” said CCAP managing director Rosario Cajucom-Bradbury.
“Generative AI can enhance the strengths of our Filipino agents who can then focus on active listening and become more empathetic and engaging when rendering service to our customers,” she said.
Sona mention
In a press conference Tuesday, July 25, 2023, Bradbury said the industry is inspired and encouraged to work doubly hard following its special mention of being an economic driver during the second State of the Nation Address of President Ferdinand “Bongbong” Marcos Jr. on Monday, July 24.
“As we address our weaknesses and develop competitiveness in other potential areas, we must play to our strengths. Our competitive advantage must be leveraged,” Marcos said.
The President added that as a “service export powerhouse,” government must continue to nurture the growth of the services sector, particularly the Information Technology-Business Process Management (IT-BPM) and tourism industries.
Amid the fast advancement in technology, Bradbury said agents are continuously being upskilled to further equip them with the right knowledge and skills amid the evolving nature of jobs across the sector and the industry.
“Agents can be redeployed and upskilled to make them always relevant to the future business model,” she said.
Generative AI is a type of AI that can create a wide variety of data, such as images, videos, audio, text and 3D models.
Targets
CCAP-member firms aim to hit 2.3 million full-time employees (FTE) out of the 2.5 million employment target of the entire information-technology business process management (IT-BPM) industry by 2028.
The local contact center sector has also set a yearly annual revenue target of US$59 billion by 2028—about $49 billion of which is expected from CCAP-member organizations.
As an indication of its strength, the sector posted actual revenues totaling $27 billion, accounting for 84 percent of overall IT-BPM industry revenue of $32 billion.
CCAP is holding a three-day Contact Islands Conference from July 26 to 28, 2023 in Dusit Thani Mactan Cebu with over 500 delegates.
The Contact Islands Conference is an international conference on customer experience in the outsourcing and offshoring space — a venue for the exchange of views, coaching, networking, and benchmarking for the sector’s leaders and decision-makers.
Seeking talent
Talent development is at the core of the CCAP’s Sectoral Roadmap 2028. The group wants to ensure a sustainable supply of skilled talent by introducing new and future-relevant educational courses, revising existing curricula, strengthening training programs, and proactively positioning IT-BPM as a preferred career option.
“There is no scarcity of employees. There is just difficulty in finding the right skilled and employable talent,” said Bradbury.
She explained that the graduates now are unfortunately not attuned to the new requirements of businesses.
But companies, according to Jamea Garcia, Alorica’s regional vice president for human resources, have embarked on programs to ensure a high-quality supply of workforce for the industry including hiring high school graduates and upskilling them.
Companies are also using technology to upskill them fast.
Garcia said the industry is also spreading its wings, looking for talents outside of Metro Manila.
Part of achieving CCAP’s goal in terms of job generation is for its member companies to expand their operations in the countryside to spread wealth.
The average entry-level pay for Manila and Cebu workers is P15,000 to P20,000. This industry is also well known for giving its employees monetary and non-monetary incentives.
CCAP’s ambition is to capture a talent mix of 60 percent from Metro Manila and 40 percent from the countryside.
Aiming for such, according to Garcia, will decongest Metro Manila and at the same time propel growth in the countryside.
Digital cities
The Department of Information and Communications Technology has identified 31 digital cities across the country that contact center firms are eyeing for their next investments.
Based on a survey among CCAP-member companies, Metro Cavite tops the list of cities for nationwide expansion. Also on the list are Metro Rizal, Puerto Princesa, Batangas, Iloilo, Calamba (in Laguna), General Santos City, Tarlac, Zamboanga, Dagupan and Cagayan de Oro, among others.
But Cebu and Davao are still among the favorites of investors to bring in or set up a business.
“The DICT has been ramping up the value proposition of these cities,” said Bradbury.
Wage increase
Meanwhile, another issue the sector is facing pertains to possible wage increases, which some analysts see as a pending threat to the industry’s cost-effective advantage.
Bradbury emphasized that labor cost is just one of the many factors that clients look at when signing up for contact center or BPO services across the globe.
“Clients look at the quality of experience and work that is rendered. Customer experience covers the quality of care and assistance delivered,” she said.
“Thus, Filipino agents always stand out. They are outstandingly customer-centric. Their empathy enables them to go the extra mile when serving customers. This is why the Philippines has always been the ‘heart of CX,’” Bradbury added.
Big employers such as the IT & Business Process Association of the Philippines joined other organizations in opposing the legislated wage hike that would raise the salary rate in the National Capital Region by P150 to P720 from the current P570.