Palace maintains ‘wait-and-see’ stance of future of BPOs in PHL

MANILA-- Malacanang said on Monday that it is too early to speculate on the future of the American business process outsourcing (BPOs) in the Philippines under the leadership of US President-elect Donald Trump.

Presidential Communications Office (PCO) Secretary Martin Andanar made this reaction amid concerns that American BPOs might pull out of the Philippines following threats of 'retribution' by Trump against US companies that continue to outsource their operations and services.

"The statement of President-elect Trump on US companies that continue to outsource their operations and services is not a policy set in stone," Andanar said in a press statement.

"We cannot speculate on the future of American BPOs in the Philippines until President-elect Trump takes his oath of office and spells out his policies," he added.

Andanar said US President Barack Obama had similarly appealed to American BPOs to conduct their operations back in the US "but his call fell on deaf ears." ??

He said American BPOs opted to stay in the Philippines because it is more viable to do business in the country.

"They would have less operating expenses. In the US, workers are paid per hour. In the Philippines, workers are paid per day," Andanar said.

Andanar also the shift in the structure of the work force of the information technology-BPO sector in the country is another factor considered by the foreign BPOs to stay in the Philippines.

"It is expected that the sector will cater to more complicated requirements as the industry plans to climb the value chain from the traditional voice and IT services to animation, game development and healthcare information. We hope we can capitalize on this where the Philippines has a competitive advantage," Andanar said.

"It is for this reason that the Duterte Administration included in its 10-Point Agenda; one, investment in human capital development, including match skills and training, and two, promotion of science, technology and the creative arts to enhance innovation and creative capacity," he added.

The country's IT-BPO sector had about 1.2 million employees as of 2015, expecting around 225,000 new jobs and USD25 billion revenue this year, according to the Department of Labor and Employment (DOLE).

Source: Philippines News Agency

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