The international demand for nurses hit the Philippine shores in early 2000. As a result, parents sent their kids to nursing school despite the costly expenses in a bid to financially better their lives. Even though there's a scarcity in local job opportunities and international demand was waning, nursing students continued to increase.
Eventually, the shortage stopped in 2010. The country is now left with a glut of unemployed nurses. Most of them have turned to the outsourcing industry as a career alternative. However, like these nurses, the outsourcing industry and the country are also at risk of experiencing the same fallout.
Co-dependence
Parents and second coursers placed their hard-earned bets on the nursing shortage. Some are unaware on how long it will last. Those who do hoped they can make it in time.
Similarly, the entire outsourcing industry pretty much depends on the positive outlook of another market economy. This is why offshore outsourcing has been labelled as a recession business.
The Philippines should create a niche expertise, both in and outside of the business process outsourcing (BPO) industry. One of the reasons why it’s other ASEAN neighbours (such as Japan) are leagues ahead is because they have their own corner of the market.
Yes, the country's BPO industry has become a leader in voice-based services, but US companies can insource for native English speakers. There has been a widespread call for bringing jobs back onshore, and a bill against contact centre outsourcing has been submitted for legislation.
Potential niche markets can be construction outsourcing, as well as creative services such as animation. The Philippines should boost its agriculture and mining sectors with a priority on locally-owned businesses. The country should also venture into high-value IT services, because automation is out to eliminate low-level jobs.
Opportunistic Players
Consequently, the demand for a Nursing degree increased in schools all over the country. Educational institutions that specialise in Nursing and Caregiver courses spread. IT vocational schools touted their curriculum. Unassuming parents enrolled their kids because they're less expensive.
Cost-focused businesses enforce stringent SLAs that drive offshore workers to prioritise quantity over quality. This is counterproductive and stressful. Service providers should be proactive in ensuring the health of their employees and negotiating for flexible outcome-focused models, not just their profit margins.
Union rights are already given to call centre agents, but the Philippines also offers non-voice services. The government should extend this right to all BPO employees, regardless of the job. Action against fly-by-night operations and unethical business should be enforced. The industry should not only encourage new business but also support existing ones.
The Philippines has been experiencing robust economic growth due to outsourcing, but it shouldn't only focus on external demand. The country needs to foster internal development and inclusive growth.
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