Friday, June 26, 2009

Survey shows improved country image can boost ITES-BPO growth

Survey shows improved country image can boost ITES-BPO growth

 

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A survey of IT-enabled services (ITES) and business process outsourcing (BPO) industry executives suggests that an improved country image can boost growth of the industry despite concerns over English proficiency.

Conducted by Outsource2Philippines.com (O2P) in cooperation with the Business Processing Association of the Philippines (BPA/P), representatives of 40 companies in six ITES sectors contact centers, software development, business process outsourcing, medical transcription, animation and graphic design and engineering services and support industries completed the survey. The survey had a response rate of 23.4 percent.

When respondents were asked whether positive perception of the Philippines facilitates client recruitment, 69 percent indicated on a scale of one to seven, with seven indicating image is a significant issue, that a positive image has a somewhat significant to significant impact on client recruitment, responding in the range of five to seven. Most responded in the range of six to seven (61 percent). Fifteen percent did not consider image an issue or a significant issue, responding in a range of one to three. Eighteen percent of respondents were neutral.

When asked in what areas, in the view of clients and potential clients, the Philippines should improve, the top three responses were overall country image (85 percent), political stability (80 percent), and English proficiency (55 percent). Technical expertise was cited by 38 percent of respondents, scalability 30 percent, and telecom infrastructure 15 percent. Other responses were concerned with governance, physical infrastructure, and peace and order.

O2P director Michael Alan Hamlin said, "It is noteworthy that improving overall country image and political stability are the top issues when it comes to areas of improvement for the Philippines, and significantly more so than improving English proficiency."

Respondents were then asked what the Philippines should do to improve its image. The top three responses were: 1) undertake a public relations program (75 percent); 2) participate in major international trade shows (68 percent); and, 3) provide a better online presence (65 percent). Many respondents, 60 percent, also responded that the Philippines should conduct more industry conferences. Forty-three percent indicated advertise in major trade publications, and 25 percent in major newspapers and magazines.

BPA/P executive director Mitch Locsin said that the industry and government are in fact thinking seriously about communications initiatives to strengthen positive perception of the Philippines in general, and its attractiveness as an ITES and BPO hub in particular.

"The survey is both timely and confirmation of the need to become more proactive in communicating the many positive attributes the Philippines has to offer investors," Locsin said.

About half of respondents indicated that negative perception of the Philippines affects their ability to recruit clients. On a scale of one to seven with seven indicating image is a significant issue, 46 percent of respondents responded in a range of five to six, with 18 percent indicating seven. Twentyeight percent indicated negative image is not an issue or not a very significant issue, responding in the range of one to three. Twenty-six percent were neutral.

English proficiency is also an urgent impediment to growth. Fifty-one percent of respondents indicated that English proficiency has a "very significant impact" on their organizations ability to grow. On a scale of one to seven with seven indicating "very significant impact" 89 percent responded in the range of five to six. Only four percent responded with a three. Nevertheless, slightly more than half of respondents, 52 percent, indicated that they hire between five percent and 10 percent of the applicants they interview. Twentynine percent indicated one percent to four percent, and 16 percent indicated they hire between 11 percent and 30 percent of all interviewees.

Turnover appears manageable for most firms. Thirty-eight percent of respondents indicated moderate turnover between five percent and 10 percent. Another 35 percent experience turnover between 11 percent and 25 percent. Fifteen percent reported turnover between 26 percent and 40 percent, and one reported turnover between 51 percent and 75 percent. Two respondents who selected other indicated one percent and two percent turnover.

Respondents were also asked if availability of suitable office space restricted growth. On a scale of one to seven with seven indicating a "significant problem," 43 percent of respondents indicated that finding suitable office space is a problem to some degree to a significant degree. Fifteen percent said it is a significant problem. A similar percentage, 41 percent, indicated a range of one to three, suggesting that finding suitable office space is not a major impediment to growth. Eighteen percent of respondents were neutral.

Not surprisingly, when the results were cross tabulated, responses showed that organizations that employ large numbers of people consider the ability to find suitable office space a significant problem compared to smaller organizations.

About 20 percent of the companies represented by respondents are in the contact center sector. Third party BPO, in-house BPO, and software development and maintenance were also 20 percent each. Medical and legal transcription were three percent each, and animation and graphics and engineering services represented eight percent and five percent of respondents, respectively. Thirty-five percent of respondents indicated that they also operate in other sectors, including ITES and BPO industry support sectors.

 

http://www.mb.com.ph/BSNS2006062967977.html

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