Outsourcing, manufacturing sectors to create jobs in 2012

(The Freeman) Updated January 02, 2012 12:00 AM

CEBU, Philippines - While the outsourcing sector is considered as the main employment generator for Cebu in the last couple of years and even in 2012, employment outlook for the province is seen to soar this year as the manufacturing sector is expected to rebound.

This means that employment opportunity for 2012 will not only be limited to outsourcing or call center jobs, but will likewise spread to blue-collar job opportunities in the manufacturing sector, said Department of Trade and Industry (DTI-7) regional director Asteria Caberte.

Cebu in particular has to prepare for the influx of manufacturing related investments by next year, that would bring in more employment opportunities, and further boost the economy

“Thailand for now can never be an option, and the Philippines is a better option for investors,” said Caberte.

Although the Philippines still has to catch up in competing with other attractive investment destinations in manufacturing such as Vietnam, among others, “we still have an edge over other countries,” she said.

The good business environment, the streamlining of business processes—which makes it easy for businessmen to transact business in the Philippines, is one of the advantages that the Philippines can take advantage with to re-gain the manufacturing investments, which was dominated by the Philippines years ago.

Aside from manufacturing investments which is expected to flow into the Philippines by next year, Caberte said tourism is also one of the direct beneficiaries of Thailnd’s problem now, while more tourists will re-consider their choice of destination, and again—the Philippines is the closest alternative.

With this, employment in tourism related establishment will also be in demand, providing jobs to more Cebuanos.

Garments, gifts, toys, and housewares, and other sectors in the manufacturing sector are expected to register good growth by next year, Caberte said.

Certainly, the BPO-IT sector will be needing thousands of people in 2012, as call centers, high-value outsourcing firms like JP Morgan and Chase, Accenture, NCR, Lexmark, among others are announcing their respective plans for expansion, said Cebu Chamber of Commerce and Industry (CCCI) chairman for BPO and ICT committee Jerry Rapes.

Contrary to unconfirmed reports, that said call centers and BPO firms have closed operations and got problems in paying their employees, Rapes said BPO/IT players instead are reporting brisk business despite the slack economic plight in the United States and Europe.

In fact, the economic slowdown in these two economic giants in the world provided more opportunities for outsourcing countries like the Philippines, as companies are embracing outsourcing mechanism to cut cost.

“Cebu will still be the top pick among big outsourcing firms. We have the most number of universities and colleges, outside of Metro Manila. Potential supply of manpower is still here, some companies dont mind investing on training than finding manpower requirement elsewhere, and convince them to migrate to Cebu or Manila,” said Rapes.

He said Cebu will still be the preferred investment site, outside of Manila, because those that are in Mindanao and other parts of the Visayas who have potential to work for BPO companies, “wont mind to work and live in Cebu.”

In general, he said the outsourcing sector, despite its own problems and challenges, will continue to grow and will still be needing thousands of people this year. “US started spending money again.”

Cebu’s BPO/IT sector growth will also see a shift to a more higher-value services, in the Knowledge Process Outsourcing (KPO) and ITO (Information Technology Outsourcing), Rapes said.

This means that employment opportunities will be available for highly-educated workforce, such as accountants, lawyers, human resource exporters, marketing consultants, graphic artists, content developers, doctors, radiologists, and other professionals.

CCCI past president and Cebu Holdings Inc. (CHI) president Francis M. Monera said that BPO industry will continue to propel Cebu’s economy being one of the province’s major economic drivers, and is poised to further improve in the coming years.

“Demand for BPO services is expected to surge as more companies abroad seek to implement reduction of operational costs while aiming to achive operational effeciency,” Monera said.

In Cebu Business Park and Cebu IT Park alone, now with over 35,000 workers, a 20 percent increase in workforce (90 percent of which comes from the IT/BPO locators) is expected in 2012. — Ehda M. Dagooc

“This industry [BPO] indeed played a key role in employment generatoion. Plans are underways for us to start construction on a BPO building within Cebu Business Park, as well as third sequel to the eBloc Tower within Cebu IT Park,” Monera said. (FREEMAN)