Balancing Act in Philippine Outsourcing

Although some outsourcing companies in the Philippines are reporting an increased demand in their services, generally, the effect of the US economic slowdown is now being felt.

Among the services that are being affected are the medical transcription and animation. According to the Medical Transcription Industry Association of the Philippines (MTIAPI), medical transcription services mostly serving the US market have slowed down.

Some animation projects, mostly US animation series were on hold or postponed due to the present American economic crisis, according to the Animation Council of the Philippines (ACPI).

By 2010, the Philippine outsourcing industry expects a 35 percent overall growth from the present $12 billion to $13 billion. But according to the Business process Association of the Philippines (BPAP), these targets might need some adjustsment due to the US economic crisis though they are still optimistic that the growth is still significant.

Another concern is US President-elect Barack Obama's assumption of office in 2009. One of Obama's top priority is to encourage US companies maintain their operation in the American soil by providing incentive for those who do in the form of tax cuts.

But the Contact Center Association of the Philippines (CCAP) is not worried, saying that tax cuts alone is not reason enough for US companies to abandon outsourcing.

If there is something to be worried about, is the lack of Filipino skilled workers to be hired. Today, the supply of skilled individuals cannot match the growing demand. Lack of English speaking skill remains the top handicap among Filipino job applicants.

Outsourcing groups are now closely working with govenment agencies like the Technical Education and Skills Development Authority (TESDA) and the Commission on Higher Education (CHED) in developing necessary skills viable for the Philippine outsourcing industry.

The following video is a news clip from ChannelNewsAsia from YouTube