Business outsourcing reshaping Philippine society

Posted at 08/08/2010 1:58 PM | Updated as of 08/09/2010 10:44 AM

MANILA, Philippines  - Daybreak is happy hour in a world turned upside down at a trendy bar in the Philippines' financial district, the clientele young and loud and with a vague California accent.

Vodka cruisers and beer fly by the bucketful as good friends Cici, Pau and Jels go off duty along with the rest of the night shift in the nation's half-million strong business process outsourcing (BPO) workforce.

Even the hors d'oeuvres are edgy -- "drunken" shrimp and green mango soaked in pale pilsen -- reflecting the punishing lifestyles of the partygoers.

"I used to drink eight bottles of Red Horse at a time and still find my way home," said 28-year-old Cici, discussing a local brew known for its high alcohol content and often called "The Devil's Own Juice."

The group of young women really let their hair down on Saturdays, hitting bars, beaches or shopping malls all day so they can socialize with friends outside the industry and sleep at least for one night like a normal person.

Life in many ways is a blast for the young, single and educated in the outsourcing industry.

Entry-level jobs bring salaries of  $300  a month with the promise of triple that after a few years' experience -- good wages in a country where a third of the population live on a dollar a day.

Jobs are plentiful and can come with generous perks such as 13th and 14th-month pay, performance bonuses and free medical insurance.

And the outsourcing industry -- which has soaked up millions of call centre, accounting and other back-office jobs from the developed world -- is becoming an increasingly vital part of the nation's economy.

Its 500,000 Filipino employees are the world's second biggest outsourcing workforce behind India.

Its revenues, which already account for 5% of the country's gross domestic product, are growing at double digit rates annually, according to the industry group Business Processing Association Philippines.

On a more micro-level, entire 24/7 service industries -- including convenience stores, bars and fast-food restaurants -- have sprung up around the new office towers to serve the needs of the booming sector.

However there are concerns about the way the industry is reshaping young adult society, as well as the pressures the workers face as they remotely help customers and clients on the other side of the world.

The odd hours, irate clients, tedious workloads and performance demands often drive staff -- particularly call center workers -- to early burnout.

Cici, Pau and Jels -- who spoke to AFP on condition their surnames were not used -- are castaways from earlier call center jobs.

"Sometimes you would be handling 300 calls at once and 150 others would be on hold. You don't have a moment's rest," said Pau, 32, who graduated to a higher-paying job handling office equipment procurement for US companies.

She said call center staff typically got only two 15-minute cigarette breaks either side of a 30-minute meal break every eight-hour shift.

Cici said one of the hardest parts of call center work was simply dealing with customers angry at having to speak with someone on the other side of the world.

"One customer said: 'I don't wanna talk to you. I want to talk to an American'... I cried," Cici said.

And while Filipino BPO workers earn 53% more than same-age workers in other industries, one in three quit every year, according to an International Labour Organisation study released last month.

The turnover rate is four times the national average.

"Five years in one job is a long time in this industry," Cici said.

The arrival of the BPO industry a decade ago also brought about changes in values, diets, and sexual practices, according to Josefina Natividad, a professor with the University of the Philippines' Population Institute.

"What shocked us most was that for both call-centre and non call-centre workers the level of premarital sex was very high," she said, citing a health and lifestyle survey on young Filipinos completed by her team this year.

Heavy drinking and smoking, rising childbirths out of wedlock, and high consumption of junk food also stood out.

"The world is different now, and the single thing driving this I'm sure is technology," Natividad said.

Both Cici and Pau said they had heard similar stories in the call centre office they used to work at, which have beds in rest areas for exhausted staff.

"Our sleeping quarters were for both sexes. Some of my friends told me that there were certain things that happened there," Cici said.

The trend has worrying implications on public health, said Teresita Marie Bagasao, the country official for the United Nations Joint UN Programme on HIV/AIDS.

Most new HIV infections now occur among young Filipinos, compared with the 1990s when the country's large overseas-based work force including sailors were the main risk group, she said.

Despite the stresses and risks, those in the industry see few other options in a country where the only way they would earn that kind of money would be to join the exodus of Filipinos working abroad.

Jels said she had earned enough in 5 years in the industry to pay a deposit on a condominium unit, and said her priority now was to hopefully start a family.

"I want a boyfriend. And I want a family and a baby in 2 or  3years' time," the 29-year-old-said.


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11 comments

The reason behind the fact is

The reason behind the fact is that in Philippines, labor cost is much lower then the other countries. Well, it is good to hear that happiness is coming back to their people life.

Iphone Insurance


There is no question that

There is no question that this is becoming to be a significant part of our economy. But this report is a bit exaggerated based only on some observations. The reporter needs real numbers to even make the claims that she did. It lacks hard statistics to be credible. These are young people who are finally earning a decent leaving, probably for the first time in their lives. So they splurge a little on themselves, it happens everywhere. But the ones I know (at least) are still helping their parents and at the same time trying very hard to save for a place of their own.

As for pre-marital sex, it is up all across the board in this country. It is not just the BPOs. You just need to look at the young men and women in the entertainment business that reproduced or reproducing too early. In my own part of the city alone, as well as in my parents place in the province, I know of at least five pregnant and single young women with no source of income. But the again, I don’t have real statistics either. These are just my observations.


BEWARE. It may not be permanent.

Clients of BPOs in the US and Western Europe and even the mulitnational BPOs tmeselves can easily pull the plug in a country once they find another cheaper country to outsource from.

The government and businessmen better wisen up and prepare for this eventuality. Otherwise, it will have a catasthropic impact to our economy.

As India is continuing to lose some of its BPO businesses to the Philippines, it is easy for Philippines to lose to emerging poor countries like Vietnam. China, with cheap labor and fast growing infrastructure, is also already grabbing some of the clients away from us. Our only strength is the English language. But it can be easily learned by other people too.

Before the US outsourced its business processes, American employees thought they had secure jobs and purchased properties. After losing their jobs due to oursourcing, they could not find other jobs and lost their properties and their future suddenly crumbled.

To call center agents, don't let this happen to you. Understand that the risk is there. At least be prepared for it. "Save for the rainy days" and acquire other competetive skills.


Alternative

An alternative would be to move up the ladder. Currently, the Philippines is a source of a relatively low-skilled BPO. You're right, as other poor countries learn English, the Philippines will lose this advantage. However, the Philippines should be working to have its workers be ready to take on BPO that requires more skill.

That is the case in general around the world: a country has an advantage in a field; a competitor nation comes by that can do it for less and takes over that field; the first country is forced to move to a more highly skilled area.

What you posit will happen to the Philippines is just a variant of how developed countries are losing their manufacturing sectors to the developing world and have make more jobs require more skills. Soon big developing manufacturing countries will face competition from even poorer countries and they will have to move to an 'information society' too.


Was that a typo?

$300 a month? Dang! You guys like being exploited, huh? I make more than that in a day.


He-he-he. Say what?

If you really do, you wouldn't be saying that. That's the kind of statement made by people who wipe the ass of old Americans. They brag of nice cars and houses which are actually UTANG.

So if you really do, that's not the kind of statement you want to make. But it's up to you.


anyways...

who doesnt choose the option of UTANG anyways???? If you are smart enough to get whats necessary then you cling for it, as long as you can maintain its monthly mortgages...There is NO jeepneys in US,so we need a cars to get to our workplaces conveniently; its not like films from hollywood you see, not all state has rail transits....

daisyrie

UTANG per se is not bad but...he-he-he

huwag lang ipagyabang yung binili galing sa utang.


Junkie

Poor Pinoys culture victim and broken by American junkie. The shock absorber of all the crap words and still acting as hips and yuppies. Ohh nice feeling to be call girls and call boys. Damn dude. Whazz up?

change yes we can

false perception

they think they are westernized just because of their job was to received calls from North America...hahahaha..
anyways, if you guys dont get to be in the middle and get branded as retards; never assume from what you see in those hollywood films happens very ordinarily in america,because that is completely false...Sex never happen so easy over here, come and work here...Its so pity, i went to the PI for as visit and many calls center agents were acting super misguided from they perceived as american culture....so sad! call me 1-562-522-7276.

daisyrie


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