US Bill Restricting Outsourced Call Centers Unlikely to Affect RP

MANILA, Philippines - The booming business process outsourcing (BPO) industry in the country is unlikely to be affected by a US bill discouraging the outsourcing of American contact center operations overseas.

Labor group Trade Union Congress of the Philippines (TUCP) said many American companies farming out their operations abroad are expected to lobby for the junking of the measure.

“We seriously doubt the bill will see the light of day,” TUCP secretary-general Ernesto Herrera said.

The bill filed by Sen. Chuck Schumer (Democrat, New York), seeks to impose a $0.25 tax for every customer call transferred outside the US.

It also requires American companies to disclose to customers the foreign locations where their calls are being routed.

Herrera said the bill would likely expire by yearend without getting passed.

Full Story  by Mayen Jaymalin - The Philippine Star

Outsourcing Industry to Grow 26% This Year

MANILA, Philippines (Xinhua) - The Philippine business process outsourcing (BPO) industry is expected to grow by 26 percent growth target this year thanks to global economic recovery, the Commission on Information and Communications Technology (CICT) said yesterday.

"This year, with the global economy coming back, we're expecting a growth of 26 percent. We're building a name for ourselves as a preferred offshore destination," CICT Chairman Ray Anthony Roxas-Chua said at a press briefing.

He said the BPO sector rose by 17 percent last year, earning 7. 2 billion US dollars.

He said that the global demand for outsourced services continues to grow as companies seek for means to cut cost without sacrificing quality. The challenge for the Philippines is to develop talent, encourage new investors in the sector, and remain competitive, he added

Roxas-Chua believed the proposed US measure to impose high taxes on companies that outsource some services to keep jobs in the US would not prosper.

Full Story  by philstar.com