BPO, Outsourcing, Globalization and the Obama Presidency
Posted on December 17th, 2008
Barack Obama’s victory in the US presidential election will have no major direct impact in the growth of the industry in the Philippines as industry experts says.
Oscar Snachez, CEO of the BPAP, states that the victory of Obama will only have a small effect on the BPO industry in the country.
During his campaign, Obama expressed that he is not in favor of the outsourcing jobs to other countries. He wanted to end tax breaks for companies that send job overseas.
President-elect Obama and vice-president-elect Joe Biden believes that companies shouldn’t get billions pf dollars in tax deductions for moving their operations overseas. He and Biden will also fight to ensure that public contracts are awarded to companies that are committed to American workers.
Obama was also among those who introduced the Patriot Employer Act of 2007, which seek to reward companies that create good jobs for American workers such as providing tax credits to firms that maintain their corporate headquarters in the United States and maintain or increase their full-time workers in America relative to those outside US.
Sanez said, “Incentives is not enough to discourage companies to outsource jobs to other countries. The deceleration in the US economy would also encourage the companies to implement cost-saving measures and re-structure their companies.
Contact Center Association of the Philippines (CCAP) executive director, Jojo Uligan said, “ There is no need to be alarmed. It is too early to say that Obama’s victory will have an impact on the BPO industry and as long as we continue to provide the high quality service and satisfy our clients, we can still experience the growth.â€
Industry data showed that the BPO industry has been growing by about 50 % in the past three years. The UK’S National Outsourcing Association (NOA) names the Philippines as the offshoring destination for 2007. Also, the BPO industry is trying to tap potential markets outside the US.
The BPO industry is considered as one of the top industries in the Philippines. By 2010, it hopes to provide a million jobs and to generate US$13 billion revenues, or a 10% share of the global market.
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