Categories: Client News

IT-BPO industry resilient amidst calamities, survey shows

<p>&lpar;Manila&comma; Philippines&comma; September 28&comma; 2012&rpar;—An industry-wide survey by the Business Processing Association of the Philippines &lpar;BPAP&rpar; and Outsource2Philippines showed that 80 percent of respondents&comma; consisting of 166 IT-BPO and global in-house center &lpar;GIC&rpar; executives&comma; said their firms experienced no downtime or less than 24 hours of downtime as a result of the monsoon surge in August&period;<&excl;--more--><&sol;p>&NewLine;<p>The 2012 floods appeared to have a broader impact on operations than Typhoon Ondoy in 2009&period; This raised concerns on the effectiveness of IT-BPO and GIC companies’ business-continuity strategies and disaster preparedness plans&period;<&sol;p>&NewLine;<p>Among the companies that experienced downtime&comma; 78 percent cited the weather as the main reason for disruption in their operations&period; Return-to-normal operations took up to two to three days for 43 percent of respondents&period; The impact of the 2012 floods on employees was also more significant than during Ondoy&comma; as illustrated by the reported rate of absenteeism on August 7&period;<&sol;p>&NewLine;<p>Forty-seven percent of respondents reported an absenteeism rate of above 25 percent &lpar;&OpenCurlyDoubleQuote;much higher than usual”&rpar;—higher when compared to the 26 percent &OpenCurlyDoubleQuote;about the same as usual” rate of absenteeism during Ondoy in 2009&period;<&sol;p>&NewLine;<p>Susceptibility to calamity was identified by 21 percent of respondents as a huge risk factor in doing business in the Philippines&period; Most of the companies already have an elaborate contingency plan in place&comma; especially during inclement weather&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Given the difficult situation and possible extended weather disturbances&comma; we had to activate our disaster recovery plan to allow our business units to continue servicing our clients&comma;” said Pointwest Technologies president Ma&period; Cristina Coronel&period; According to FIS Global Solutions VP-ITO Philippines Armand Cajayon Jr&period;&comma; their operations were affected by non-reporting employees who were caught up in the floods&comma; rains&comma; and traffic&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Our business units had to activate their own business-continuity plans to pick up what we couldn&&num;8217&semi;t do—to meet critical deadlines&comma; deliverables&comma; and service levels&comma;” said Gigi Mantaring&comma; VP and general manager of Manulife Business Processing Services&period;<&sol;p>&NewLine;<p>At the height of the weather disturbance&comma; IT-BPO companies made sure that employees were safe either within their workplaces or in their homes&period; Seventy-five percent of companies called down employees to ensure their safety while 47 percent provided shelters onsite&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;We called employees one by one to see if they were okay&comma;” said StarTek regional human resources director Joyce Peñalosa&period; For almost 50 NorthgateArinso employees affected by the storms&comma; country manager Hans Montenegro said accommodation&comma; meals&comma; clothing&comma; and laundry allowances were provided over two days&period;<&sol;p>&NewLine;<p>Meanwhile&comma; Oce Business Services temporarily housed employees whose homes were submerged in floods&period; &OpenCurlyDoubleQuote;We converted our training rooms to this purpose for the meantime&comma;” said general manager Rommel Regalado&period; MediCall management went out of its way by providing both in-house and hotel accommodations to shelter employees&comma; according to president Jeff Williams&period;<&sol;p>&NewLine;<p>To assist their workforce&comma; 53 percent of companies provided in-kind assistance&comma; which included food&comma; water&comma; and basic necessities while 34 percent extended emergency calamity loans to affected employees&period; &nbsp&semi;While about half of respondents’ companies did not provide emergency loans&comma; most did&period; Generosity of those extending loans were evident as 39 percent said they extended &quest;5&comma;001–&quest;50&comma;000 in emergency loans per employee&period;<&sol;p>&NewLine;<p>Although 70 percent of respondents’ companies provided a variety of in-kind assistance&comma; a fewer number of beneficiaries required assistance in 2012&period;<&sol;p>&NewLine;<p>Telus International Philippines provided free meals to all team members across all sites&period; &OpenCurlyDoubleQuote;We ensured that our concessionaires had fresh and steady supply of food to keep our employees comfortable despite being in the office&comma;” said head of communications Warren Tait&period; HRMall global HR director Chiara Zotomayor shared&comma; &OpenCurlyDoubleQuote;We provided immediate financial assistance to affected employees and their families through a special calamity loan program&period;”<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Our top priority is the safety of our employees&comma; their families&comma; and the communities we operate from&comma;” said Benedict Hernandez&comma; BPAP president and CEO&period; &OpenCurlyDoubleQuote;Being in a disaster-prone region has compelled most IT-BPO companies in the Philippines to always be ready for the unexpected&period; Disaster preparedness is therefore a cornerstone of our business continuity planning&period; Organizations with a well-conceived disaster management program are capable of responding to and recovering from calamities&comma; financial losses&comma; and other risks&period; Having a &OpenCurlyQuote;Plan B’ enabled us to achieve and manage disruptions in our operations&period;”<&sol;p>&NewLine;<p>In 2011&comma; the IT-BPO industry generated &dollar;11 billion in revenues and employed approximately 640&comma;000 people&period; According to an industry road map&comma; the industry is projected to become a &dollar;25-billion industry by 2016 and to provide high-paying jobs to 1&period;3 million Filipinos&period;<&sol;p>&NewLine;<p><strong dir&equals;"ltr">About the Business Processing Association of the Philippines<&sol;strong><br &sol;>&NewLine;The Business Processing Association of the Philippines &lpar;BPAP&rpar; is the umbrella association for the IT-BPO and GIC &lpar;global in-house center&rpar; industry in the Philippines&period; BPAP serves as the one-stop information and advocacy gateway for the industry&period; With approximately 300 industry and support-industry members&comma; including five associations&comma; BPAP plays a pivotal role in sustaining rapid growth of the IT-BPO and GIC industry by working to ensure an enduring supply of high- quality labor&comma; supporting service innovation&comma; and providing country visibility&period;<&sol;p>&NewLine;<p>BPAP assists investors in setting up operations easily and quickly in the Philippines&period; Relevant research&comma; introductions to key government and industry officials&comma; and a series of briefings at each step of the investment process ensure a seamless development process&period; Ongoing support is provided through a wide variety of initiatives&comma; including programs for HR development&comma; business development&comma; and ongoing knowledge sharing and networking opportunities&period;<&sol;p>&NewLine;

J Darell Sapin

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