Local BPOs welcome junking of anti-outsourcing bill

CEBU, Philippines - The junking of the anti-outsourcing bill by the US Senate was expected but should not be a reason for local players in the business process outsourcing industry (BPO) to be complacent.

Jerry Rapes, President and CEO of Exist Global, pointed out that the Philippines should learn to manage risks in the BPO industry and explore other opportunities.

“I believe that is quite expected. The outsourcing model is very important for the US. However, we can’t be extremely dependent on one major market and in just the voice BPO segment,” he told The Freeman.

Teleperformance Vice President for Client Services Tanya Famador-Japitana said that with the current economic condition of US, companies are left with no other choice but to outsource from other countries.

And the capacity level of Filipino workers could exceed the expectations of outsourcing companies on their workforce.

“In general, as an industry, we’re really not worried about it. We’re seeing more and more companies who promised never to outsource offshore just a few years ago. But they recently came to Philippines and saw successes both in internal cost-cutting for them without sacrificing the level of customer service that they want,” Famador-Japitana said.

The US Senate has junked the anti-outsourcing bill last July 30. The bill, if passed, would have eliminated tax breaks for companies outsourcing services and manufacturing jobs to other countries.

It would also provide a 20 percent tax deduction on costs associated with closing outsourced operations and transferring jobs back to their country.

On the other hand, Call Center 101 Training Corp. training director Arnold Cajilig said that the BPO industry is mutually-beneficial for both countries.

“I am glad it happened. It helps the Philippine economy as well as it saves the American companies for manpower expenditure. If the jobs will be brought back to them, it will be more expensive,” he noted.

He also believes that Filipinos are competent enough to offer customer service to US citizens.

In earlier reports, the Business Processing Association of the Philippines (BPAP) welcomed the news that the US Senate rejected the anti-outsourcing bill.

The Senate voted 56-42 but 60 votes are needed for the bill to be passed.

BPAP President and Chief Executive Officer Benedict Hernandez said that outsourcing business services to the Philippines makes American companies to be more competitive and profitable.

He added that such business is a win-win proposition as both companies benefit from each other.- (FREEMAN)