RP's BPOs optimistic about US elections
By Alexander Villafania
INQUIRER.net
First Posted 16:45:00 10/31/2008
Filed Under: business process outsourcing (BPO), US elections
MANILA, Philippines -- With less than four days before the next US elections the Philippines' business process outsourcing (BPO) companies are preparing to welcome the next US president.
The multi-billion dollar industry is also expecting a stable transition from the administration of George W. Bush, with nary a change in direction for US firms that are being served by the country's BPO providers.
"We don't foresee any major changes or outcome from the US elections. In fact, we're confident that the US will continue to do offshore outsourcing especially with the recent economic crisis," according to Business Process Association of the Philippines (BPAP) Chief Executive Officer Oscar Sañez.
Speaking to INQUIRER.net, Sañez said there could only be "minor" policy changes regarding offshore outsourcing from the US if Democrat presidential candidate Barack Obama wins.
Sañez noted that Obama made a promise that he will provide tax incentives to US firms who will keep jobs within the country.
Nevertheless, Sañez said increasing operational requirements of US firms, especially those that are already being served by outsource providers, will ensure continued business for the providers.
"For the short term there could be effects but we believe that the next US president will want to make sure that US industry to be strong and he will support any decision to make it so, whether to offshore or not. Even if he is going to give tax breaks for firms to keep jobs in the US, it won't be too big to offset operations for offshoring," Sañez said.
Meanwhile, Sañez said Republican candidate John McCain "is more liberal" and supports trade liberalization, which appeals to a status quo in company operations.
But Sañez is quick to point out the BPO industy is not putting all their support on neither candidate. The analysis comes from the statements made by both Obama and McCain during their campaigns.
The Philippines' BPO industry has an average yearly growth rate of 45 percent. It is already worth US$4.9 billion in revenues in 2007 and is expected to grow to US$6.8 billion dollars by the end of the year.
About 82 percent of services provided by BPOs here are delivered to US firms.
The industry has also among the highest recruitments for Filipino workers. So far, there are 300,000 employed workers in BPOs and call centers. It recruits nearly 150,000 per year.
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