Last year, the Philippine Call Centre industry was proclaimed as the number one location for voice-based services. The Philippines took the top position from India, which the latter held for decades. Also, the Philippines ranks second to India in non-voice-based services.
But recently this year, certain changes in the country’s economy made its contact centre industry quiver and endanger its stature as the top BPO service provider.
Will Philippines get to enjoy its reign on top only for one year?
First was the strengthening of the peso against the US dollar, wherein Php41 = $1. The Philippine Call center industry, which relies on foreign investments, became wary of the changes that the new value of the Philippine peso might bring to the industry.
These possible changes include higher lease fees in office spaces and demand for higher wages from the employees. In summary, Philippines will become a more expensive location for outsourcing, defeating one of the principles of outsourcing, which is to provide cost-efficient solutions to foreign businesses or clients.
Second was the country’s performance on the Global Competitiveness Report, conducted by the World Economic Forum (WEF). Philippines notably failed in progressing under the pillar of Infrastructures. The Administration needs to allocate a bigger budget to develop infrastructures, which serves as one of the most visible signs that a country is feasible for business. Also, with the recent major floods experienced by the country, it helped in justifying that the country is not yet completely ready to provide safe infrastructures to any type of industry. It failed in developing establishments that would not hamper operations.
These changes became factors that could contribute to the fall of the Philippine call center industry as the leading provider in BPO services. If no corrective measures are immediately taken, current foreign investors might pack their bags and transfer to another location, like India.
But the Aquino administration has recently made another change that would bring great influence to the way BPO companies and other industries that rely on the Internet in their operations.
President Aquino recently signed the new Data Privacy Act (Republic Act No. 10173) and the Cybercrime Prevention Act of 2012.
The Data Privacy Act requires public and private enterprises to ensure the confidentiality and integrity of personal information collected throughout their whole operations processes.
The Cybercrime Prevention Act of 2012 defines cybercrime and provides for the prevention, investigation and imposition of penalties related to such acts.
IT-BPO companies and other industries that use the Internet and computer technology will benefit from the law’s provision on system and data protection, device security and penalties for computer-related offenses.
“The anti-cybercrime law will aid the industry in sustaining growth and global leadership. This new law validates the strong partnership we continue to build with the public sector, as well as the government’s recognition of the industry’s significant contribution to our economy and employment,” said Benedict Hernandez, BPAP (Business Processing Association of the Philippines) president and CEO.
Through the new changes brought by the law, it will help the contact centre industry of the country strengthen its position as a top location for IT-BPO services by sustaining and enhancing the investors’ confidence in the country’s booming industry.
This new law also validates the strong partnership that the private sectors are building with the public sector, as well as having the government recognize the industry’s significant contribution to the Philippines’ economy and employment.
About the Author
Publish on 11/04/2012
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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