The Truth About Offshore Outsourced Jobs

I worked for sort of a BPO company for 4 years a few years back, and believe me it wasn't easy. But you know what, the pay was awesome! I had to work really really hard though. And I mean that with 16-hour work days and deliverables up to your neck. Not to mention in-your-face foreign bosses who sometimes just don't get (and don't want to get) the local culture.

This article from Bloomberg Businessweek sums it up quite nicely. Hope you don't mind but I'm reposting it here for those who are interested in working for a BPO or for the appreciation of those who currently are.

Developing countries are benefiting from business process outsourcing jobs (BPO) that are of "reasonably good quality" by local standards, but the industry has some way to go to improve stressful working conditions, according to a study by the International Labour Organization (ILO) released on Monday.

A large number of companies in countries such as the U.S. and the U.K. have outsourced call center and back-office work to low-cost locations such as India, the Philippines and Brazil. A lot of the work gets done at night because of the time zone differences.

Employees have benefited with higher salaries. The wages of Indian BPO workers are nearly double the average wages in other sectors of the Indian economy, according to the study titled "Offshoring and Working Conditions in Remote Work." In the Philippines, BPO employees earn 53 per cent more than workers of the same age in other industries.

On the flip side, the ILO study confirms to a large extent concerns raised by social workers and trade unions in India about stressful working conditions at BPO companies.

Workers have to cope with heavy and variable workloads driven by performance targets, tight rules and procedures enforced through electronic monitoring, and unpleasant tasks such as dealing with difficult customers over the phone, the study said.

Efforts by trade unions to introduce collective bargaining in the BPO industry in some key outsourcing places such as India and the Philippines have not been successful.

"We have not had any success in introducing collective bargaining in call centers and other BPO companies in the Philippines," said Anna Fos, who heads research at the Trade Union Congress of the Philippines, in a telephone interview on Tuesday.

A key reason is that BPO workers in the Philippines find it easy to move to another BPO job if they have a problem with their current employer, Fos said. "They will not come to us, if there is a problem, as there are lots of jobs available", she added.

Workers in BPO companies also do not join trade unions because they are scared of reprisals from employers, Fos said.

Moves to unionize Indian BPO workers have also been frustrated by lack of interest from employees, according to analysts.

The BPO industry employs about 1 million people in India, according to the National Association of Software and Service Companies (Nasscom).

The work conditions faced by BPO workers constitute a "tailor-made recipe" for stress-related hazards, according to the ILO study. These problems are also clearly linked to the high rates of staff turnover in the industry -- which can be as high as 100 per cent annually in some companies -- and represents a serious problem for BPO companies, it added.

The study suggests a number of measures that governments and companies can take to improve working conditions, including measures to protect workers' health and safety at night. It also suggests a redesign of work processes, particularly in call centers, in order to allow BPO employees more discretion to "make use of their often considerable qualifications." ILO also recommends policies and practices aimed at improving workers' dialog with management.

Philippines' Biggest Call Center - Convergys To Hire Even More Agents

I picked up this article from ABS-CBN on Convergys expanding 5 of its existing stations and opening 3,600 additional jobs.

It's amazing how these guys have expanded. With the construction of an additional 2,300 work stations in 5 sites: University of the Philippines TechnoHub, Nuvali, San Lorenzo, Cebu, and Bacolod, more opportunities are opened for more people.

According to the ABS-CBN article, Convergys country manager Marife Zamora said their operations have been “outstanding," prompting the company's expansion. She also cited increasing demand from the US as one of the reasons for expanding in industries like technology, communications, cable, financial services, health care, and retail.

“Our clients demand more seats, more capacities…With the continuous demand, it is logical for Convergys to expand on these areas,”Jomari Mercado, Convergy's director for business development, told reporters on Friday.

Convergys estimates that it can increase its workforce to around 25,000 and open another workstation in a new area by end of 2010. Currently, Convergys employs 21,000 Filipinos in 12 sites in Metro Manila, Cebu, Bacolod, and Laguna.

The Business Process Outsourcing Association of the Philippines (BPAP) earlier reported that the sunshine industry posted P7.1 billion in revenues during the first quarter of 2010.

BPAP estimates that industry revenues will rise to P9.3 billion by the end of this year, and workforce to 550,000 from the current 475,000.

International Labor Organization Partners With Local Government for Decent Jobs

GMA News reported that the International Labor Organization made a pledge to help the Philippine government review its employment policies and strategies in order to create decent, productive employment for Filipinos. This was to help generate for job opportunities locally. We need that pretty badly too.

The article went on to say that the impact of the economic crisis on vulnerable employment and labor productivity means the number of workers living with their families in poverty is likely to have increased. We see workers living on the margin and at risk of falling further into poverty.

In his inauguration last week, President Benigno Simeon Aquino III said he would revive the emergency employment program to provide local communities with jobs for and help develop the economy. He pointed out that Filipinos need not look for employment abroad.

Aquino ordered the Labor Department and other relevant agencies to be more responsive to the needs and welfare of overseas Filipino workers, citing the need to boost efforts to fund quality education, including vocational education for those who could not find decent work in the country.

Johnson recommended that the Philippines should find ways to increase productivity. "We believe that productivity and employment growth are the cornerstones of the fight against poverty," he said.

"A highly trained and educated labor force, combined with easy access to capital and technology, can lead to a significant increase in productivity and help boost the country's economy. Dialogue with employers and workers' organizations is also crucial," he added.

Johnson officially took over as the new director of ILO in the Philippines on July 1, following the retirement of Linda Wirth.

100K More Job Opportunities in Singapore

Hey don't just take my word for it. I've heard a lot of horror stories of Filipinos looking for a job in Singapore but didn't get any and that Singaporeans are discriminating against Filipinos. But apparently according to AFP, the demand is quite high.

Singaporean Prime Minister Lee Hsien Loong said that Singapore will need 100,000 new foreign workers this year to keep on track an economy enjoying a stunning rebound.

The article goes on to say that rich but worker-starved Singapore has historically rolled out the welcome mat for foreigners, whose numbers rose dramatically in the boom of 2004-2007.

But with one in three of the five million people living on the tiny island now a foreigner and citizens complaining about competition for jobs, housing and medical care, the government has been looking anew at its open-door policy.

Nonetheless Lee said the need for more overseas labour was unavoidable despite efforts to slow the influx after complaints from citizens facing tougher jobs competition during last year's recession.

"If we don't allow the foreign workers in, you are going to have overheating," the Straits Times quoted him as telling Singaporean media during an ongoing visit to the United States.

Lee assured Singaporeans the government would manage the inflow of foreign workers with measures such as higher levies on companies hiring from abroad.

But even so, "I'd imagine there will be more than 100,000 extra foreign workers this year," he said.

"I cannot see it otherwise, but we have to accept that."

Experts interviewed by the Straits Times newspaper said this year's expected inflow was still lower compared to previous years.

In 2007, there were 144,500 new foreign workers and 157,000 were hired in 2008, they said.

Investment bank Morgan Stanley said Thursday it expected Singapore's economy to grow by 16 percent this year, ramping up its previous projection of 9.0 percent.

Lee said Singaporeans should not expect such stellar growth every year and cautioned against comparisons with other economies.

"Maybe numerically, the growth figure may be higher than other countries, but I would hesitate to compare myself with China," he was quoted as saying.

"I think if you compare yourself with Shanghai, they may well be ahead of us."

Up To 7,100 More OFW Jobs Available in South Korea

Labor Secretary Marianito Roque reported in a news release that the overseas Filipino (OFW) quota for jobs required in South Korea is now 7,100 versus last year's 5,700 - according to an article in the Inquirer.

The article goes on to say that a total of 6,445 Filipinos took the Korean Language Test (KLT) in various testing centers nationwide, a requirement by South Korean government for hiring. He said the examinations conducted in Manila, Pampanga, Baguio, Cebu, and Davao by the Korean Human Resources Department went smoothly, with no reported negative or unfavorable incident.

Roque said 3,344 examinees took the KLT in Manila, 2,076 took it in Pampanga, 554 in Baguio City, 310 in Cebu, and 161 in Davao.

The labor chief said hiring resumed only recently after South Korea strictly enforced the requirement that prospective OFWs take and pass the country’s language proficiency test.

He reiterated that many Korean employers still prefer Filipino workers, adding that a second KLT will be given around the fourth quarter of the year.

He said that under the Employment Permit System (EPS) of Korea, foreign workers earn an average of $1,000 a month.

In a related development, Roque said preparations are on for the signing of an implementing arrangement for the implementation of Korea’s Returnee Support Program for OFWs.

Roque said this program is patterned after the National Reintegration Program of the Philippines in which returning OFWs are given a chance to smoothly join the mainstream of society with assistance to training and livelihood programs.

He said Korea’s Returnee Support Program has two components; technical training onsite, usually on Sundays, for business or employment, and job referral to RP-based Korean companies (for returning workers).

Roque said that last year, as an enhancement of its assistance program for foreign workers, the HRD established caring centers nationwide to provide temporary shelter, food, and counseling to workers who have been let go and are looking for new jobs.

To address the language issue, Roque said Korea’s HRD likewise launched last year the three-way phone conference where the worker can talk to his employer through an interpreter.