by: Karen Cayamanda
Tuesday, September 28, 2010 | Outsourcing News |
According to Oscar Sañez, president of the Business Processing Association of the Philippines (BPAP), the BPO industry in the country is starting to feel the effect of the strong peso, at around 43 to the dollar.
Small companies may stop their operations. For BPO companies with contracts struck at 46php to a dollar, revenues will decrease. Sañez said having a strong peso will have a negative impact to the industry. This can also affect investor perception of the country as an ideal outsourcing location. "If you listen to the pronouncements of government, it actually prefers a strong peso. That is dangerous because the economy is dependent on OFWs (remittances) and exports of product and services," he said.
While the country’s BPO industry is worried about this issue, Sañez said BPAP remains on track in reaching the revenue goal this year. The problem would be how to keep this momentum despite the impact of the strong peso.
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