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Senator Mar Roxas III disagreed on providing generous incentives to business-process outsourcing (BPO) companies in the Philippines.

Roxas said incentives meant for the companies should be modified to focus more on the training and skills development of Filipino talent.

He explained that pioneer BPO companies were offered ample incentives then to attract players and establish a new industry.  He said that the new batch of players now have the benefit of knowing how the outsourcing industry has fared since 2000 thus should no longer be provided the same.

Roxas who was the keynote speaker on the first day of the 5^th Contact Center Association of the Philippines (CCAP) Annual Call Center Conference and Expo 2009 at the SMX Convention Center in Pasay City, explained that by valuing talent development, it will be easier for multinational corporations, large company affiliates and telco adjuncts to establish the perfect workforce which will make them more competitive in the long run.

“There are more than 200 local companies with 200 personnel of less, which do not have the scale to go after a contract.  With developed talents, small homegrown companies have the opportunities to get bigger because contract renewal follows and so does capital inflows,” Roxas expounded.

Roxas mentioned the global success of Filipino companies like Ayala Corp and the Philippine Long Distance Telephone Company, in the BPO sector.  Ayala Corp, through the Liive IT Solutions Inc, acquired in 2007 eTelecare Global Soolutions Inc.  PLDT, then ePLDT Inc acquired in 2006 SPI Group of Companies, the second-largest pure play BPO company in the world.

He said small players should be given access to capital to grow their business and become global players like the companies he cited.

To make this possible, he proposed “strengthening the capital markets and finding local or foreign investors.

The senator’s proposition received mixed responses from CCAP, the official organization of outsource and in-house contact-center service providers in the country.

CCAP President Benedict Hernandez said the senator’s idea is an interesting concept to develop.  “We always have the need to develop talent that is anchored on continuous growth,” Hernandez said.

CCAP Executive Director Jojo Uligan, on the other hand said that if the incentives will be entirely allotted to human development, debates would arise.  “It will hurt the industry.  Many consider incentives as one of the top factors for outsourcing their operations here.”

He added, however, that as people and investors have equal importance in the industry, he thinks the incentives will be positioned halfway.