US insourcing jobs program: Threat to PHL's BPO

The deafening drums and the energizing beats are here again. These beats and drums are so inviting and are dominating in every nook and cranny of the city’s conspicuous places. As usual, we can all expect that at the height of the Basilica’s and the City Hall’s preparation for the religious observance and festivities of the Sinulog, respectively, the annual debates as to its commercialization among devotees, the faithful and the more pragmatic citizens will again take the spotlight. Again, amid the religious observance of this year’s Sinulog, this issue about commercialization will be at fever pitch. It shall be so intense that we might even think that during and after the celebrations, animosities between the faithful and the festival organizers shall certainly pervade. Though worth resolving, this annual debate among the devotees, the faithful and the more pragmatic citizens will again remain as usual, a status quo. However, as the finale had always been, the issue shall end as the religious activities shall solemnly bring hope to everyone. All these skirmishes, whether political or canonically related, will simply die as the festival’s fireworks vanish in the night.

The day after, the most talked about development won’t be how a contingent did it for the big win in the free interpretation category nor the perennial winner’s grab for the sinulog-based award. The euphoria of these contingents’ victories shall disappear as the last tourist leaves Cebu for home. What certainly shall stay for awhile and sadly will have long and negative impact on our lives is President Obama’s recent call to action to invest in America at the White House "Insourcing American Jobs" Forum. The forum focused on “the increasing trend of insourcing – where companies are bringing jobs back to the United States and making additional investments in America”.

Among those who attended the forum were Mark Field (President of Ford of the Americas), DuPont’s Mark Vergnano (Executive Vice President-Otis Elevator Company), Otis Elevator Company’ President for North America Rand Wilcox, Intel’s Senior Vice President Brian Krzanich, Siemens’ President and CEO Eric Spiegel, ThyssenKrupp’s President Christian Konig, Rolls Royce’s President and CEO James Guyette, Master Lock’s CEO John Heppner, Lincolnton Furniture’s President and CEO Bruce Cochrane, GalaxE Solutions Chairman and CEO Tim Bryan, AGS Co-President Joe LoParco, KEEN’s CEO James Curleigh and Chesapeake Bay Candle Co-owner and President Mei Xu who all made strong commitments to bring jobs back to the United States of America (USA). 

Looking at the aforementioned companies’ names, not anyone of us may chill. After all, these companies are manufacturing concerns and do not have significant plants in the country that may have to shutdown. However, there is one more attendee that may represent an industry that has been bringing in the needed dollars in the country, NOVO 1’s CEO Mary Murcott. A respected company in support services since 1987, it announced last year that they were opening a 30,000 square foot customer contact facility in the Eisenhower Business Center in Denison, Texas. In 2010, they also opened a new office in 2010 in Holland, Michigan, where 300 people are currently employed.

Apparently, Miss Mary Murcott is an authority in business process outsourcing. In an article she recently wrote, “The Business Case for Repatriation of Contact Center Jobs Back to America”, she emphatically declared that “most centers we see returning to the US or their country of origin are exiting India, but others are returning from near-shore countries, also. Last year, a highly respected personal investment firm brought their call center jobs back from Costa Rica. Their customers spoke out. The company listened.”

Scarily, in a startling revelation, Miss Mary Murcott added that “many American companies that began using offshore call centers 10 or 15 years ago are bringing those call centers and contact centers back home, but nobody seems to want to talk about it”.   Though we might just brush aside her claims as a mere discourse or an act of patriotism, Miss Murcott maintained that American companies “can save 15 percent by bringing their contact centers back to America from India and the Philippines”.

Sadly, we can’t help but agree with Miss Murcott that what is left for call centers now are the “hard calls”. The “easy calls” or those that are easy to resolve are efficiently handled on the company’s website or by phone via interactive voice response.   As such, she is of the opinion that the Filipinos are not up to it (hard calls) because, for one, most of the agents are not familiar with the USA and its diverse culture. Moreover, the federal government and some states have been giving grants and incentives to those companies that will bring their operations back to the USA.

This precarious development shouldn’t be taken lightly by our country’s government executives and industry leaders. The key now is, first and foremost, try to look at the possibility of offering incentives to these business process oursourcing (BPO) companies. Incentives that are more than enough to negate whatever perks their home country is giving. More importantly, we should also hone the skills of our call center agents to be more qualified and competitive.

However, if we take a look at the bigger picture, it isn’t entirely gloomy at all. For one, if the employment rate in the USA increases, consumer spending will likewise rise. Consequently, consumptions of goods and services shall correspondingly increase. This is a scenario where our long dormant export industry may find some activity again. Exporters like those in furniture, gift items, garments and the like may find their way again into the US market.

In the meantime though that these potential scenarios are yet to happen, we must stay focused on what we can do locally to sustain whatever gains we attained so far. There are significant developments in Cebu right now that are on hold because of personal bickering among politicians. For one, the tax exemption issue on the purchase of the SM lots in the South Road Properties remained unresolved. This unfortunate development might just stall the development of this huge project. On the other hand, the Ciudad project has been unreasonably dragged for a frustrating span of time now. 

Looking at the construction aspect alone, even the blind can see how enormous these projects shall be. The business and labor that these shall generate after completion are just too huge that sources of money for the improvement of basic services can be easily attained. Unfortunately, however, while we try to salivate on the prospects of this recent development, we couldn’t ignore the possibility that political adversaries will again go over their arsenals to shoot each other down.   Just so concern about themselves, they shall simply cuddle their egos. Totally unmindful of what this positive development may bring to their constituents.

We might sound like broken records but we have to reemphasize that their rivalries are bringing us nowhere. Supposedly, in their hands, immediate solutions are held. Obviously aware but unmindful, they should be reminded that lots of Cebuanos are now penniless. Further losses of more jobs brought about by the recent “insourcing jobs” campaign in the USA remain real threats that could lead to more labor unrest and company shutdowns.

Moreover, with the economic crunch still obtaining globally, they should be aware that their constituents’ anxieties are too overwhelming to ignore. As the sun sets, the possibilities that a kid may be taken out of school involuntary and the likelihood of skipping a day’s important meal are becoming more imminent. Worst, the probability that a benefactor may go home from an overseas job earlier than expected and the thought of abandoning a life of abundance will continue to hound the family unbearably. 

Hopefully, these political adversaries, instead of shooting each other down, will keep their guns safely locked. In doing so, they have actively participated in an undertaking that might bail out families from imminent hunger and starvation.

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