Local BPO industry to triple by 2009, says BPAP exec

Posted at 10/10/2008 12:52 PM | Updated as of 10/10/2008 12:52 PM

The local business process outsourcing industry could double or triple by next year as more US companies outsource jobs to take advantage of lower cost of labor in the Philippines, an official of the Business Processing Association of the Philippines said Friday.

Jonathan de Lezuriagga, BPAP executive director for industry affairs, said some experts are predicting the P30-billion call center industry to double or triple by 2009 because of the global economic crisis.

Lezuriagga also believes that with the US companies struggling to stay afloat, "the most logical action for them" is to turn to outsourcing and look for countries that offer cheaper services.

He said the 420,000 to 430,000 call center agents in the Philippines, may also increase even before the end of the year. "We don't see it (US economic crisis) as alarming for the local call center industry," he said.

Catanduanes Rep. Joseph Santiago said the $500 a month salary of a call center agent in the Philippines is much cheaper than the salary being provided by BPO companies in the US.

"A call center agent's monthly salary in the Philippines is only equivalent to a three-day salary in the US," he said. "They (US-based companies) will be forced to close down or tighten their belts. They will go to the Philippines."

More call center agents to go to US?

Former budget secretary Benjamin Diokno, meanwhile, said the US government may implement a new policy to gain its losses.

"We (economists) think the US will use a new policy that will increase its exports and lessen its imports to cut its losses," Diokno said.

Diokno said one of the industries that may be affected by the new policy is the call center industry. He said the possible part of the new policy is bringing Filipino call center agents, employed by US-owned companies, to America.

"The US government may issue temporary visas to Filipino call center agents and bring them to the US," he said. He added that bringing more people to US is like recruiting more people to patronize US-made products.

"The workers will buy US goods. This is one way of making the economy lively again," Diokno said.


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