The Philippines, with its large English-speaking population, is a natural hub for contact centres and other business outsourcing services. However, problems in English proficiency have become a nagging concern, for both the government and the private sector.
Of every 100 job applicants, fewer than three pass an English skills test. Is English a diminishing advantage for Filipinos?
The results of a recent study conducted by the John F. Kennedy Centre Foundation-Philippines, an affiliate of a US-based think-tank, show a dwindling supply of qualified workers. Based on industry data, only 2.89 per cent of an estimated annual 400,000 new graduates seeking jobs are qualified for business process outsourcing (BPO) and call centre jobs.
While the industry is not short of new graduates looking for first jobs, most interviewees fail to make it through the recruitment process because of a lack of appreciation of the intricacies of the work and the fact they cannot articulate their thoughts very well in English.
The study shows that the dearth of qualified personnel could have dire consequences for the booming BPO industry. Call centre companies could lose critical jobs to strong competitors like India, which boasts a vast pool of skilled and talented workers.
Shashank Bhide and Meenakshi Rajeev of the Institute for Social and Economic Change in Bangalore recognise the Philippines as India's biggest competitor in the global outsourcing sector.