Business Process Outsourcing NewsPart 3 News: Seven Winning SectorsSocial Service: Education News

Phil. Gov’t-BPAP Partnership to Support Industry Target 3.15 million jobs, $6-B Revenues

This is a re-posted press release by the DBM.

Abad: Proposed Human Resource Dev’t Program Reasonable with BPO Potential

Budget and Management Secretary Florencio B. Abad today said the national government and the Business Processing Association of the Philippines (BPAP) will soon forge a partnership for the development of human resources needed to support the outsourcing industry’s target of creating 3.15 million jobs and $6 billion in tax revenues by 2016.

BPAP Chairman Alfredo I. Ayala proposed to the government a partnership that will implement an improved and expanded “Training-for-Work” Scholarship Program being implemented by the TESDA that will train 58,000 scholars in 2011 and 2012; of which 37,000 of can be guaranteed jobs. Aside from that, a faculty trainer development program can further expand the base of trained scholars.

Both programs will require P350 million and P150 million investments annually, respectively, according to BPAP. Abad responded by proposing that a joint national government-BPAP program be put together that can be implemented for the remaining part of 2011 and the whole of 2012.

“For the employment and the revenue potential of the industry, we see this as a reasonable investment that the government should consider. We agreed that both sides should craft and present proposals by the first week of September,” he said.

Abad arranged for a meeting last August 19 between representatives of the BPAP and heads of key agencies of government—Labor and Employment Secretary Rosalinda Baldoz, Commission on Higher Education (CHEd) Chair Patricia Licuanan, Technical Education, Skills Development Authority (TESDA) Director General Joel Villanueva, Department of Education (DepEd), and Department of Budget and Management (DBM)—in order to forge a closer partnership to further expand the industry and enhance its ability to generate employment and revenues for government.

According to Mr. Ayala, the business process outsourcing (BPO) industry has the potential of generating $20 billion export revenues, 3- 15 million jobs and $6 billion tax revenues by 2016. But in order to sustain market growth and momentum, he said “we need to make investments now, especially in growing the talent base of our country.”

Abad noted that to support rapid, inclusive and sustained economic growth, the Aquino administration has proposed P438.9 billion for the Economic Services Sector for 2012, or an increase of 21.3 percent over the sector’s P361.9-billion budget this year.

Meanwhile, to support the development of competent human capital, the proposed 2012 budget for the Education, Culture and Manpower Development Sector amounts to P308.95 billion, or an increase of 13.8 percent over its P271.49-billion budget this year.
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Source: Press Release, Department of Budget and Management, Aug. 23, 2011
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This article is relevant to Part III: 7 Big Winner Sectors – Business Process Outsourcing and Part IV: General Business Environment – Social Services, Education. 

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