The $38.7 Billion BPO Industry: Filipino workers’ English skills crucial to success

The Philippine Business Process Outsourcing (BPO) industry remains a global leader, driven by the exceptional English proficiency of its workforce. The sector, valued at $38.7 billion, employs approximately 1.3 million people, solidifying the Philippines’ position as a premier outsourcing destination. The government supports this growth by implementing regulations like Republic Act 11927 to enhance digital skills and English training, ensuring that the workforce remains the best outsourcing choice internationally. At a recent career expo in Misamis Oriental, DICT Undersecretary Jocelle Batapa-Sigue highlighted the need to support Filipinos’ education and training to remain competitive in the digital services industry.

To keep a leadership position in this sector and to encourage growth, both the government and industry have focused on improving and keeping Global Scale of English (GSE) Scores competitive. Drilling down the numbers, average Filipino GSE scores have remained remarkably stable, despite the surge in hiring in recent years. Moreover, around 25% of test-takers score 65+ or higher. suggesting that there is an even larger pool of quality English-proficient talent for the BPO Industry to tap into.

The BPO industry faces other challenges such as the complexities of large-scale hiring, and increased recruitment costs. However, maintaining high levels of English proficiency among employees is the most critical as it directly impacts client satisfaction and operational efficiency. “Communication skills are the foundation for the Filipino workforce’s dominance in delivering customer experiences that have made PH a global leader in ITBP, ” declares Jack Madrid, President and CEO of the IT & Business Process Association of the Philippines, Inc. (IBPAP).

Filipinos’ communication skills such as English language proficiency are a crucial foundation driving the Philippines’ dominance in the PHP 38.7 Billion BPO industry.

The industry has increasingly adopted advanced language assessment tools to address the proficiency challenges, particularly those that leverage AI technology. Versant by Pearson is one notable example. Trusted by major corporations such as American Express, Hilton, and KPMG, among others, Versant by Pearson offers an efficient, comprehensive, and cost-effective testing solution. Rinna Dizon, Senior Recruitment Manager at iQor, has praised Versant by Pearson for its secure administration and quick online access to results, ensuring an efficient recruitment process. Samol Lyeng, Senior Competence Development Specialist at Smart Axiata, also underscores Versant’s ability to assess all four critical language skills – Speaking, Listening, Reading, and Writing – establishing a clear English proficiency standard for new candidates and employee improvement.

Judy Whisenhunt, CEO of TDS Global Solutions, which represents Versant by Pearson in the Philippines, further says: “We have seen tremendous improvement in English skills from those trained with this product, and the corporate clients that subscribe to the platform are likewise reporting increased efficiencies in hiring with faster time-to-value.”

Ultimately, the success of the Philippine BPO industry hinges on maintaining English proficiency and effective large-scale hiring. Leveraging advanced language testing technologies like Versant by Pearson ensures businesses remain competitive and capitalize on the abundant opportunities within this thriving sector.  With government support, exceptional language skills, and innovative testing solutions, the Philippine BPO industry is poised for continued growth and success.

For more information, visit the Versant by Pearson APAC website

Written by: Victor R. Ocampo and Patricia Mulles

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This article is brought to you by Versant by Pearson through M & O Infinite Library.