Home⇛Psychology and Education: A Multidisciplinary Journal⇛vol. 45 no. 10 (2025)

Human Capital Management in Business Process Outsourcing (BPO) Companies: A Systematic Review

Niño Perfecto Cuadra III

Discipline: business studies

 

Abstract:

The rapid evolution of business process outsourcing (BPO) industries has significantly reshaped human capital management (HCM) practices in emerging economies such as the Philippines. Despite the sector's robust contribution to national economic growth, challenges related to high attrition, skill shortages, work-life imbalance, and fragmented digital HR adoption persist. This systematic review aims to consolidate and critically evaluate the existing body of literature on HCM practices in Philippine BPO companies, with a specific focus on talent retention, work-life balance, HRIS adoption, and organizational socialization. A systematic search across Scopus, Web of Science, ScienceDirect, and related databases retrieved 520 articles, of which 30 met the eligibility criteria following PRISMA guidelines. Although no formal risk of bias assessment was conducted, potential methodological limitations were recognized. Thematic analysis revealed eight major clusters: the strategic application of Human Capital Theory, pervasive challenges of attrition and inconsistent talent management practices, the emerging importance of work-life balance initiatives, the gradual integration of HRIS technologies, gaps in organizational socialization practices, weak labormanagement relations, the critical influence of leadership on employee morale, and fragmented succession planning systems. The findings underscore the urgent need to transition from transactional to transformational human capital strategies that holistically address relational, developmental, and technological dimensions of workforce management. This study advances theory by proposing the Integrated Human Capital Sustainability Model, extending Human Capital Theory and Organizational Justice Theory within the BPO context. Practical recommendations are also provided to enhance employee engagement, digital HR innovation, and sustainable talent development. Future research directions include longitudinal assessments of work-life initiatives, cross-cultural comparative studies, and the exploration of artificial intelligence applications in human capital management.



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