DTI: Philippine BPO industry to flourish despite U.S. bill

The Philippine Department of Trade and Industry (DTI) is confident that the recent declaration of U.S. President Barack Obama to withdraw support from “businesses that ship jobs overseas” will hardly affect the business process outsourcing (BPO) industry. It also doubts that the American congress will pass the pending bill, viewing the hubbub as election-related as in 2004 and 2008. It emphasized that the bill will only cover companies that serve federal offices or those that receive federal funding. Trade Secretary Gregory Domingo asserted that outsourcing will be here to stay regardless of any legislation. He stressed that competitiveness plays a huge role in company decisions to outsource jobs to lower operating costs. He also pointed out that the BPO industry of the country is already diversified, progressing from being “telephone operators” to offering varied services including IT, accounting, and other services.

The country is widely regarded as a top call center destination as companies from markets like the United States tap the local workforce because of good English communication skills and a strong cultural affinity to the US – reportedly an edge hard to obtain elsewhere. In its 2011 report, the Business Processing Association of the Philippines disclosed that industry is now the second biggest contributor to the local economy next to overseas Filipino workers (OFW). The sector reportedly contributed close to $9 billion last year or a 4.8-percent share of the GDP of the country. $11 billion is expected for 2012 and $25 billion by 2016, matching OFW remittances.

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