Contact Center Solutions Featured Article

Labor Shortages in Global Market Impact Offshoring Decisions

April 03, 2008

The viability of the offshore market continues to be under scrutiny as organizations are feeling the economic crunch and turning to alternative solutions in order to drive down costs without sacrificing service.

XMG, a global ICT research and advisory think tank, recently conducted a study of leading offshoring countries in Asia, including China, India, Malaysia and the Philippines. This study found that the average growth of the IT labor pool in the Philippines for the last five years rests at 10 percent and is forecasted to grow by another three percent in the next two to three years.
 
This study also revealed that despite the steady increase of the IT labor pool, it is insufficient to sustain the total ICT demand in the Philippines, which is projected to grow by 30 to 35 percent full-time-equivalent year-on-year through 2010.

Metro Manila will be providing much of the fresh talent, taking up 22 percent of the estimated 50,000 to 60,000 graduates each year.
 
According to XMG statistician Benedict Dormitorio in a Thursday statement, “There is a clear need to establish additional training institutions and ladderized degree programs by existing universities to boost the dwindling talent supply due to the growth of the Philippine offshoring industry and the migration of IT skilled workforce to countries such as the United States, Singapore, Canada, the Middle East and Europe.”

Dormitorio also stressed the importance of ensuring curriculum alignment of educational institutions with the current market needs of the industry through close consultation with ICT companies and organizations.  

The study provided an overview of the availability of IT manpower primarily based on skill sets. XMG has segmented the labor supply by educations attainment with at least a 4 year bachelor degree and other IT vocational courses and skill set.
 
According to the study: “For programming and business solutions, IT skills on SAS, SAP (News - Alert), Lotus Notes and MySQL will be increasingly difficult to source and companies must be prepared to pay a premium price to recruit these individuals.”
 
The study further emphasized networking skills will be at risk, such as those in network administration. “Across all segments, there is a significant decreasing trend on the available labor force meeting the required IT skills set needed by the market,” Dormitorio continued.
 
 “With the increasing demand for IT professionals today, companies should be aware of the situation and align their strategies to mitigate risk coming from the labor market,” added Chief Analyst Lauro Vives, in Thursday’s statement.
 
“It is imperative to first understand the saturation level of the labor market by forecasting both demand and talent supply before making any firm commitment on expansion plans or further investments.”  
 
The XMG study mentioned that, “In order to minimize paralysis on critical operations and sustain growth, companies must extend their recruitment reach, improve their skill development pathways, enrich retention and provide hot skills training on the existing talents in the organization to avoid high additional cost components associated with these skill areas.”

For those organizations seeking to outsource and offshore their help desk operations, the conditions of the global contact center industry in terms of IT capabilities and labor availability, are a significant consideration. If shortages continue, it may create better cost controls to keep IT professionals onshore in the long run.
 
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 
 
 
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Best Practices for Deploying a Virtual Call Center: Tips, Techniques and Best Practices, brought to you by LiveOps (News - Alert).
 

Article comments powered by Disqus

Related Contact Center Solutions Articles

Contact Center Solutions Week in Review: Interactive Intelligence, BT and Accenture

The future is now, or at least it is coming at us fast in the Contact Center Solutions Community, and there are two great ways to be part of the industry buzz as to what is unlikely to unfold in 2015. The first is to attend ITEXPO East, January 27-30, 2014 at the Miami Beach Convention center. This is a great opportunity to be warm and more to the point, hear, see and discuss contact center issues in person with peers and subject matter experts. [ Read More ]
01/17/2015

Customer Experience: The Last True Differentiator

In Ernst & Young's Global Consumer Banking Survey 2014, customers chose "the way I am treated" as the second most important reason for trusting their banking provider, just behind the understandably important "financial stability" of their bank. Customer experience was also cited as the most common reason for opening and closing accounts, more important than fees, rates, locations or convenience. Approximately 40 percent of customers planned to open or close an account in 2014. This means banks … [ Read More ]
01/16/2015

Digital Is Driving Businesses to Offer Personal and Intuitive Customer Experiences says Accenture Report

The preoccupation with improving the customer experience (CX) by C-levels around the world has been a trend for several years. In fact, the fastest growing C-level position is Customer Experience Management Officer (CEMO) or some variation on the title. And, as CX becomes ever more important as the means to provide differentiated value, delighting existing customers and for obtaining and keeping new ones, the preoccupation will not only grow more intense in 2015, but so will the investments in t… [ Read More ]
01/16/2015

BT Launches New Personalized Video Message Service

When it comes to contact center out-reach there are two trends that everyone needs to literally and figuratively keep an eye on in 2015. They are "personalization" and "video." And, while the first may seem obvious since the goal of marketers is to make customers and prospects feel appreciated with tailored messages uniquely for them, the use of video on the outbound side of things is after many years becoming something more than a novelty. [ Read More ]
01/15/2015
Subscribe here for your FREE Contact
Center Solutions
enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!