BPO to remain top job generator

CEBU, Philippines - The business process outsourcing (BPO) industry is expected to remain among the key employment generators amid fears that Donald Trump's presidency in the US would affect BPO jobs here.

Exequiel Sarcauga, regional head of the Department of Labor and Employment in Central Visayas, said in a recent interview that the BPO sector remains a top employer in the country specifically in Cebu, a key BPO hub outside of Manila.

"The industy said it will continue to rise in the next years to come," the labor official said.

Sarcauga noted that BPO companies have been operating here because it's more cost-efficient.

And business has always been like that, looking to where investors can operate more efficiently in terms of cost.

Aside from cost, Sarcauga also cited the quality of Filipino workforce as another factor why BPO investors are here.

The Philippines has emerged to be one of the best places for BPO companies to set up shop.

For one, it is still one of the most cost effective areas to put up BPO operations, meaning investors get the most out of their investments.

The country also has a talent pool that is highly-skilled, can speak English in either an American or neutral accent, and are willing to work in the BPO, which offers higher paying jobs.

The country is also becoming the top choice when it comes to voice-based services.

In his campaign prounoucements, Trump had said he would impose taxes on US companies that outsource jobs abroad.

The US is reportedly to account 70 percent of BPO investments in the country.

There have been fears that the Philippines would be the biggest loser if Trump followed through on his threat to punish American companies that outsource jobs abroad.

In previous reports, labor chief Silvestre Bello III had expressed comment that Trump's presidency is unlikely to have an adverse impact on the country’s BPO industry. 

The Philippines BPO industry is pegged to have employed roughly 1.2 million Filipinos as of end 2015.

Cebu, which is home to some of the biggest BPO investments in the country, accounted for around 120,000 of these jobs as of end 2015.

The information technology-BPO roadmap has target revenues of up to $25 billion and employment of 1.3 million by year's end.

The IT-BPO sector is the Philippines' second largest source of dollar earnings after remittances or the money earned by Filipinos working overseas.

The industry has grown to be the second largest source of dollar income for the Philippine economy, according to the Information Technology and Business Process Association of the Philippines (IBPAP).

In 2015, the industry generated 1.2 million direct jobs and US$22 billion in revenues.

The BPO revenue last year accounted for around 10 percent of the gross domestic product (GDP). (FREEMAN)