A 50-percent loss of work force in India’s business- process outsourcing (BPO) industry—worth an estimated $25billion—to foreign competitors has led to jobs gain in countries like the Philippines, a study by First Advantage Inc. revealed.
“Over the last decade, the Philippines has emerged as an important market for most global companies due to the availability of a sizable work force that is young, educated and English speaking,” the company said in a statement. “These three key factors have given the Philippines a competitive advantage over Vietnam, Thailand and even India, one of the most preferred countries for outsourcing business.”
Citing a 2013 data from the Associated Chambers of Commerce and Industry of India revealed that in 2013, First Advantage said the loss in India’s BPO sector was the Philippines’s gain.
“This shift in preference has led to a surge in job opportunities and demand for an English-speaking work force in the Philippines.”
However, First Advantage said “the availability of jobs has also given rise to a serious problem pertaining to discrepancies in education certifications that most employers come across on a regular basis.”
“Brimming with excellent opportunities and a better lifestyle, the Philippines has also become a favored destination for immigrants, adding on to the complexity of ensuring the backgrounds of job candidates are thoroughly screened.”
Nonetheless, global companies residing in the Philippines have also introduced best practices for background screening to the country. “Background screening is now an integral part of the hiring process in most companies in the Philippines.”
The most common types of background screening in the Philippines include employment, education and address checks.
Citing its study, First Advantage said there is a steady rise in employment discrepancies in the Philippines—from 12.8 percent in 2010 to 15.4 percent, with the rise of degree mills adding to the complexity of the candidate-selection process.
According to the same study, discrepancies related to employment topped the list at 64.9 percent, followed by education at 18.0 percent, database at 15.9 percent and criminal at 0.66 percent.