Erap started BPO industry in RP, says spokesperson

MANILA, Philippines - It is not President Arroyo, but former President Joseph Estrada who built the business process outsourcing (BPO) industry, Estrada’s spokeswoman Margaux Salcedo said.

“The BPO industry had its beginnings when  former President Joseph Estrada directed the Department of Trade and Industry in 1999 to expand the existing economic zones to include IT or Information Technology related businesses,” Salcedo said.

She said the Philippines, under the Estrada administration, was able to partner with India and thus received the necessary training in the conduct of business process outsourcing.

“The Department of Trade and Industry got a directive from President Estrada to position the Philippines as an IT center. They even commissioned a special study to research prospects and then-DTI Secretary Jose ‘Titoy’ Pardo was even sent to India and Silicon Valley in the United States to explore opportunities,” Salcedo said. 

Salcedo quoted Pardo as saying, “the BPO industry may have matured during the GMA administration but it cannot ignore that its origins are from the Estrada administration.” 

“It was during President Estrada’s administration that the Northgate Cyberzone in Filinvest City in Alabang, the Eastwood City Cyberpark, and the RCBC Plaza IT centers were inaugurated in 1999,” Pardo said.

Pardo was Trade and Industry secretary and chairman of the Philippine Economic Zone Authority or PEZA at the time. 

Pardo pointed out that it was during the Estrada administration that the interpretation of the PEZA Law was expanded to include the information technology industry. The tax exemptions were designed to work as incentives for BPOs.

He said this was instrumental in changing the industry climate to encourage BPO businesses to invest in the country.