Yes, you read that right. Our BPO industry is suffering from a shortage of nurses and healthcare workers they can hire.
One of the fastest-growing sectors of the BPO industry is healthcare. There are about 200,000 employees working for healthcare clients in our BPOs. Most of the large US healthcare companies are present in the Philippines.
There is a tremendous demand for nurses and other medical professionals, and BPOs are now competing with hospitals in hiring nurses. Apparently, not all nurses want to go overseas or are ready to go overseas. In the meantime, BPOs give them experience in handling foreign healthcare needs and learning how foreign healthcare companies do things – a bonus when they interview for work abroad. They also get paid better without being exposed to harmful pathogens than if they worked in our local hospitals.
What do nurses do in BPOs? Essentially, they do patient care management. They monitor patients remotely, listen to patient concerns and advocate for them to get the best possible medical care, and make sure insurance companies cover patients’ needed treatments and procedures, among other tasks.
They may also work in clinical trials, helping out in what is known as pharmacovigilance, which involves activities related to the detection, assessment, understanding and prevention of adverse effects or any medicine/vaccine-related problems.
Healthcare clients help keep our BPO industry in the pink of health. The BPO industry as a whole expects to grow by 6.5 percent in the number of jobs and export revenue.
They expect to end 2024 with over 1.8 million direct jobs and hope to generate over $38 billion in revenue, overtaking OFW remittances, which are projected to deliver $34.5 billion this year. The BPO industry ended last year with 1.7 million jobs and $35.5 billion in revenues.
Another significant development for the BPO industry is the continued expansion of jobs outside Manila, made possible by remote work and flexibility in work arrangements.
Before COVID, they were at 25 percent outside Manila and now at 32 percent. They expect to reach about 40 percent in regional cities by 2028.
COVID accelerated their move to cities outside of NCR. Many of their employees moved back to their home cities and provinces. Now, the continued growth is helped by stronger infrastructure in the countryside across tier-two and tier-three cities. The power supply is more stable but could be better. And while the telcos are not quite everywhere, at least two of them are present in all 31 of what the BPO industry calls digital cities.
The BPO industry is finding that more and more of our local government officials are becoming easier to work with. LGUs have finally realized the importance of the BPO industry. “This is a big reason why Iloilo, for example, or Bacolod, led by progressive mayors, have been quite helpful and eager in entertaining investors,” an industry spokesman told me.
The ease of doing business is considered a big come-on for BPO investors. “We believe that our member organizations should be able to run their businesses the way they know best, without having to worry about red tape and unnecessary interventions.”
Last year, the industry association awarded Quezon City and Iloilo City as the best LGUs in hosting BPOs. They praised Mayor Joy Belmonte and Mayor Jerry Trenas for rolling out the red carpet instead of harassing them with red tape.
The biggest problem for the industry is talent availability. That’s why the presence of a talent pool is another important consideration for investors. Iloilo was cited as a good example because there are many colleges and universities there and for being a hub for the entire Panay region.
Nationwide, the conversion of job applicants interviewed versus how many get hired is still one in ten. Most job applicants lack skills in communication, comprehension, critical thinking, and collaboration – skills necessary for interacting with BPO clients.
In terms of employee headcount, about 70 percent of industry employees are still working in contact centers. This is where the industry started, and a spokesman said, “This will always be the biggest piece for the foreseeable future. But I want to stress that the complexity of these tasks has also increased significantly.”
It was explained that call center agents no longer just answer phones. “It has become a multi-channel job function, which means our agents are trained to answer voice communication, as well as other platforms including email, social media, and text. There’s still an element of voice, whether they’re in healthcare, banking, or financial services. Given the complexity of their work, not all tasks are automatable.”
Have any jobs been lost due to AI?
The spokesman replied, “I speak to members every day, and we have surveys going on all the time. I do not recall any significant amount or number of jobs being directly affected. And even where it happened, all employees were absorbed and moved to another function. That’s why, as an industry, we continue to grow.”
There is always fear of job losses with new technology, the spokesman explained. “When chatbots were first introduced 10 years ago, people were concerned. But looking back, no jobs were lost. I can say as of today, over half of our member organizations have deployed internal AI platforms and technologies into their operations, and the early results have been very positive.”
AI has been a blessing, not a threat, to BPO agents. “We’ve seen productivity enhancements of 14 to 20 percent with the use of AI tools. AI helps make the average performing agent better with more access to information – faster, more organized, more structured. AI is like having a co-worker beside our agents who can respond faster. And the Filipino agents love having AI tools because it makes their work easier.”
More on the BPO industry, a key leg supporting our economy, in my next column.
Boo Chanco’s email address is [email protected]. Follow him on X @boochanco
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