Business process outsourcing in the Philippines challenges for decent work

Advances in information and communication technology (ICT) have facilitated growth in the business process outsourcing (BPO) sector, and the Republic of the Philippines ranks among the world’s major BPO destinations. The sector’s economic influence in the country has tripled in the last ten years. Low labour costs, a highly skilled workforce and competitive ICT infrastructure have provided the major drivers of this growth. While contact centres represent the most important subsector in terms of revenue and employment, higher value added subsectors are also growing. BPO is expected to expand rapidly in the coming years, further strengthening the country’s participation in global supply chains (GSCs). At the same time, it faces numerous challenges related to decent work. A qualitative survey of the industry reveals four key findings: i) a real danger of skills shortages threatens as employers struggle to find correctly trained workers and, once they are hired, to retain them for longer periods; ii) employees report high-stress work environments, with detrimental impacts on health, while HIV/AIDS is increasingly prevalent among BPO workers; iii) more than 50 per cent of workers are women, but they tend to be concentrated in low- paid, low-skilled jobs; and iv) trade union activities are almost non-existent in the BPO sector. This paper i) sheds light on the efforts made by the Government, the BPO sector, employers’ associations and universities to address these challenges, and ii) draws lessons for the future. In general, the paper shows that continued effort in providing stronger voices and representation to workers could do much to address the challenges to decent work creation.