• Palace: American BPO firms won’t leave PH

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    AMERICAN-owned business processing outsourcing (BPO) companies won’t pull out of the Philippines despite President Rodrigo Duterte’s declaration of a separation from the United States in terms of foreign policy, the Palace said Sunday.

    Palace Communications chief Martin Andanar made the statement two days after Duterte told a crowd of Filipino and Chinese businessmen that he was severing the Philippines’ military and economic ties with US.

    Andanar recalled that US President Barack Obama had appealed to American BPO firms to conduct their operations in US soil instead of outsourcing, but the call fell on deaf ears.

    “These BPO companies are not leaving out country because they know that it is cost-efficient for them to invest in the Philippines. In the US, workers are paid per hour. Here, workers are paid per day. It is undeniable that it is more viable to do business here,” Andanar said.

    “Besides, our workers have better skills, get the job done fast. Filipinos can have an American, British, or even Australian accent. There’s flexibility. To come up with a contingency plan [in case the American BPOs leave]is to respond to something merely speculative,” Andanar added.

    Albay Rep. Joey Salceda shared Andanar’s sentiments, noting that the BPO industry is worth $10 billion in the country for a reason: because Filipinos are highly competent for the job.

    “We won’t lose the BPO sector because we have the neutral accent and we deeply understand American culture. We also have a caring nature. It’s [just]easy to be apocalyptic about it,” Salceda, an economist, said in a separate radio interview.

    Andanar and Salceda also argued that what the President wanted was not to cut the ties with the United States, but for Manila to break free from adopting the foreign, military and economic policies of Washington.

    “We are separating in terms of policies. A state is a territory with a government, free from external control … freedom from external sovereignty. The President is just stating the fact that we have long ceased to be an American colony, but our practice is that we still follow their policies,” Andanar said.

    “The President is just correcting the foreign policy of mendicancy,” Salceda said.

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    5 Comments

    1. We should first understand that BPO’s cannot move to another country without the here it is America. Its only based on Cost-arbitrage which means that there ‘s a lot of cost saving American companies get by moving less complex jobs offshore. That being said this helps them on more complex areas and this in turn builds additional business opportunities . A lot of outsourced businesses are mundane tasks and people in India etc are more non- complaining about hours of work, pay etc so this helps them get the tasks accomplished. Also some activities are more good in Asian countries as their accounting capabilities and technology capabilities are good especially India and Chine. So we should not look at it s a loss but rather we should look at it as an opportunity to do better jobs. Also, Americans usually drop put high school because of these jobs, now since these jobs are outsourced for more complex jobs, they need to study till graduation etc. which can also be looked at as a blessing in disguise.
      Please do not use profanity in your responses as I am just putting my thought and I love america

    2. The news says Reebuck, shoes removed their operation out of China and now manufacture their shoes in the US. This is the start. One million jobs in BPO will be affected. The US needs jobs and they will move heaven and earth to bring ll these work to the US. I have a friend that is now working in a bank in US as a call center agent. He was working in RP a few years ago as a call center agent of this bank. The bnk decided to move their operation back to US. Your statement that it is not economically feasible to move BPO back to US is not true. They will move specially with a demonic regime. This will take a few months but I am sure we will lose the BPO.

      • I agree. BPO is not something that American firms are proud off. It is frowned upon by the american public in general, because they view it taking local jobs for Americans. The less it becomes a headline which tied in with old world geopolitical and ideological thinking(American Bashing), the better it is, in keeping fellow filipinos employed with above average salaries in Manila. Just yesterday I called a US based bank and the fellow on the line proudly stated after his name that he was from Arizona, I think this is the third time, the location was mentioned after the name of the staff. If it becomes to heated for many companies, they will try an automate even more of this BPO functionalities. DU30 should be more careful with his statements.

    3. I am afraid he is wrong about the accent. Filipino do have a distinctive English accent. It’s not as distinctive as say a Chinese or Japanese speaking in English but still decernable to someone who has lived in English speaking countries. So they are able to identify the nationality of a filipino speaking in English most of the time. Also as one gets older it is more difficult to eliminate the accent.
      Although current BPO are dictated by cost economics, there will come a point in time when the constant negative comments by DU30 which always end up hitting the international headlines will embed with the clients the BPO is trying to serve. With the current populist blowback on the whole Globalization theme coming from Developed economies populace, there may be a growing number of people who will opt not to do business with the person on the other end. BPO services does not require as much infastructure investment as a factory and therefore can much more easily be pulled out.

      • BPO as doomsayers tells that it will bring down flat our economy and this country is going to bankruptcy. Then bye bye to America …. they are true to their words and deeds … if you will not follow them then the economic sanctions will be imposed. It is up to our leader if not to kow tow to this evil policy of USA.I remember BPO is not a good business before in our country because majority of Filipinos don’t know this job. Now the qualification is very small – only knows how to read, write & speak American English is a passport for employment in this sector. Now again this doomsayers says that Philippines will suffer the consequences of having a foul mouthed President. In business as long as your investment have a good profit and not hindered / touched by any government politics, they will not follow who’s devil ordered them to stop operation. (Eq. why are American Companies keep on investing in COMMUNIST CHINA when they already know that the government there is not compatible with theirs – the answer is PROFIT …)