Last year marked a significant turn for the BPO Industry of the Philippines. It was a victory for the forerunners, workers and supporters of the industry.
But the celebration was put to an abrupt hiatus when a bill was passed by US Representative Cong. Tim Bishop. The bill provided more worry as US President Barack Obama pushed the bill himself for legislation.
This caused a stir among countries that are outsourcing providers, particularly Philippines and India.
The US Call Center and Consumer Protection Act (HR 3596), or better known as the Bring Jobs Home Act, would require the Department of Labor to track down firms that move call center jobs overseas; these firms would become ineligible to direct or indirect federal loans or loan guarantees for five years.
The bill also requires overseas call center employees to disclose their location to US consumers and give the customers the option to be transferred to a call center in the US.
The provision is said to be a response to the practice of companies taking millions in incentives from local taxpayers to open call centers in the US, then only to move their call center jobs offshore where they hire talents with lesser pay. This leaves local communities with high unemployment rates, yet still paying the bill, said Bishop.
Bishop said they also have found recent reports of theft and misuse of sensitive information from British and Australian customers of Asian call centers, all of which are deeply disturbing. They doubt if the financial and medical information of Americans are also compromised.
Overseas call centers cannot provide the same amount of security that American call centers provide for sensitive personal data files. Americans should be given the option to do their business in domestic call centers. Bishop further elucidates that American companies should be taking all necessary measures to protect the identities and personal information of their clients. These incidents of lessened security measures from overseas call centers add strength to retaining call centers in the US.
"Outsourcing is one of the scourges of our economy and one of the reasons we are struggling to knock down the unemployment rate and reduce the number of Americans who are out of work. We can't prohibit it, but we can certainly discourage it," Bishop said in a conference call with reporters.
On the other side of the world, where top outsourcing providers are located—that is, India and Philippines—these insights caused a mix of anxiousness and uproar. Clearly, the bill is aimed at these countries that have just blossomed from the dirt of economic turmoil.
The two countries will stand to lose the most if the bill is passed, signed and be made into a law.
The BPO industry of the country has only provided jobs for the 1% unemployed sector of the country, but it is one of the main drivers in helping the country from its economic mayhem. It generated annual revenue of $11 billion dollars last year and its workforce grew to 10%, employing 640,000 Filipinos, according to the Business Processing Association of the Philippines (BPAP).
This was already a good output after a decade of establishing the industry and prepping the country to meet the growing demands of the global market in outsourcing services. The bill is a red flag to all the development goals that has been laid out for the BPO industry of the Philippines.
The BPO service providers and supporters of the bill waited for almost half a year before finally hearing the final decision of the US Senate.
The Senate rejected the Bring Jobs Home Act of Cong. Bishop. It was also blocked by the Republican Party of the USA.
"Outsourcing business services to the Philippines helps make American companies more competitive and profitable. Profitable companies hire more workers, both here, and in the United States," Benedict Hernandez, BPAP president and CEO, said, in a statement.
BPAP also cited a study that shows outsourcing does not have an impact in the job losses of US. According to Dartmouth’s Tuck School of Business economist Matthew Slaughter, in his study of hiring practices of 2,500 US multinationals, every job outsourced produces nearly two new jobs in the US.
Some American sectors blame companies who outsource jobs as the main factors for contributing to the high unemployment rates of US and its continuing economic sputter.
Nevertheless, Slaughter’s study showed that American jobs made from subsidiaries of multinational clients almost doubled over a generation, employing 5.4 million US workers.
Surely, outsourcing is an equal proposal, providing benefits to both Philippine and American companies.
The Anti Outsourcing Bill is now a thing of the past. It has once threatened the existence of the thriving BPO industry of the country. There are always two sides to every story.
About the Author
Publish on 09/24/2012
is a self-employed blogger and copywriter from the Philippines who loves writing and is always happy to share her passion for blogging.
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