The emergence of the BPO industry enormously affects the Philippines' unemployment rate. The government's main focus is on promoting BPO in the country. The government's initiatives in educational and training incentives and reforms enhanced the visibility of the Philippine brand internationally and better appreciation among Filipinos of the opportunities available in the IT-BPO industry.
Recent government initiatives, which are aimed at addressing the problems of labor shortage and the jobs skills mismatch in the business process outsourcing industry, include the following:
The “Training for Work Scholarship Program (TWSP)” had earmarked funds for the IT industry to provide educational grants to train BPO applicants. The program issues training certificates to “near hires” or applicants whose qualifications fall slightly below a hiring company’s skill requirements. As of December 2008, the BPAP distributed over 44,000 certificates worth ₱260 million.
This translated to improvements in employment yield rates for BPO segments: contact centers (65%), medical transcription (86%), software development and animation (100%). The program was renamed “Pangulong Gloria Scholarship” (PGS) and provided bigger funding in 2009, amounting to ₱350 million. This aims to benefit 60,000 BPO trainees by providing them with tuition reimbursements and training allowances.
The Advance English Proficiency Training (AdEPT) program of the Commission on Higher Education (CHEd) aims to improve the English proficiency of the Filipino labor force to par with global standards. From only 10 AdEPT partner schools in 2008, it aims to partner with 110 to 220 schools, benefiting 5,500 students in 2009 and 2010. For the 2010-2011 school year, it aims to partner with 835 to 1,000 schools, benefiting 25,000 graduates.