Thursday, February 2, 2012

Downplaying hazards to the Philippines call center industry



It is with a bit of amusement I read the hype in the story “Group breaks ground on new office building in IT Park.” The spin part goes like this:

Aquino and Monera dismissed fears that a pending US bill to discourage outsourcing will hurt the BPO industry. Monera believes the US companies themselves will lobby against the proposal.

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Francis Monera is quoted:

“Outsourcing is a business strategy practiced also by local companies, whereby you outsource your noncore competencies. It is a strategy to be competitive in the global market and one key element of competitiveness is reducing cost. Outsourcing reduces a lot of cost.”

What Mr. Monera conveniently left out is a key part of the proposed bill HR 3596 if passed in its present form:

The bill would create a "bad actor" list of U .S. companies that make a practice of sending U. S. jobs overseas. It would require a publicly available list, kept by the Department of Labor, of all employers that relocated entirely or a significant portion of their call center or customer service work overseas. These companies would be ineligible for Federal grants or guaranteed loans. Preference will be given to U. S. employers that do not appear on the list for awarding civilian or defense-related contracts. Employers that relocate a call center will remain on the list for up to 5 years after each instance of relocating a call center.

The U.S. congressmen who wrote the bill understand employers’ need to “be competitive in the global market”.

The question for employers, will it be worth paying cheaper wages in the Philippines and give up big US Federal contracts to your business foes for five years? I would wager no, it won’t be worth it to remain in the Philippines, in one year you could be out of business.

Tony Padua

Lapu Lapu City

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