Outsourcing ban will hurt Central Visayas

Friday, January 13, 2012

WITH an estimated 40,000 employed by business process outsourcing companies in Central Visayas, the Department of Labor and Employment (Dole) acknowledged that the US anti-outsourcing policy would have a “great impact” on the region’s labor force.

Dole Central Visayas officer-in-charge Exequiel Sarcauga said there have been similar proposals and legislations made by US lawmakers in the past, but these never pushed through.

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However, he admitted the present bill pending in the US Congress has been highlighted because it has the endorsement of President Barack Obama.

House Bill 3596 or the Call Center and Consumers Protection Bill discourages outsourcing by making those that outsource ineligible for federal grants and loans for five years. Companies are also required to disclose physical location of agents in customer service and allowed the option to be transferred to a local agent.

Companies that fail to report overseas locations risk paying a penalty of $10,000 a day.

Position

In earlier interviews, local stakeholders expressed optimism that the bill will not be passed as long as the US business sector explains their position.

They also believe that the industry will continue to thrive, as other markets look to the Philippines to outsource their own operations.

Although Philippine officials are banking on the US business sector to oppose the legislation and cite the need for them to outsource to maintain competitiveness, Sarcauga said Dole still needs to be vigilant.

"In case the unexpected and the things we don't want to happen will happen, we are coming up with options," Sarcauga said.

This includes meeting up with concerned stakeholders in the Information, Communication and Technology Tripartite Council. Sarcauga said the council has members who are of stakeholders in BPO, call centers, animation, gaming and other sectors.

He said Dole Central Visayas will schedule a consultation with them and find out what their plans are to determine an alternative in case the bill gets passed. He added this meeting will also determine the kind of impact the passage of the bill will have on the region's thriving BPO industry.

While he acknowledged that BPOs also cater to other markets in Europe and even a few local companies that have begun to see the benefits of outsourcing, Sarcauga said the biggest market still remains in the United States.

For now, he said they will try to see how they can use the talents of existing BPO workers for other industries such as tourism-related jobs.

He added that the department can intervene for displaced workers and ask certain companies to prioritize them in the hiring.

For workers who want to start their own small-scale business, Sarcauga said the department also offers a livelihood starter kit for displaced workers, ranging from P5,000 to P15,000 per worker.

However, he admitted the number of workers who can avail themselves of the program is limited, as the fund for the entire region is just P20 million.

Apart from the loss of employment, Sarcauga fears the proposed US policy would also affect sales of food outlets and the transport sector. (MEA of Sun.Star Cebu)

Published in the Sun.Star Cebu newspaper on January 13, 2012.