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Excessive Holidays Affect PH BPO Industry

by: Sarah Joson

Wednesday, August 31, 2011 | Outsourcing News |

Excessive Holidays Affecting BPO sector in the Philippines?

As the Philippines becomes one of the strongest outsourcing destinations globally, the Business Processing Association of the Philippines (BPAP) pleaded once again to the local government: “We don’t like more holidays.”

Raymund Lacdao of BPAP is hoping that the Aquino administration will respond accordingly to their call that too many holidays affect the outsourcing sector’s earnings. Since there are 22 holidays every year, he says BPO companies, especially the ones that operate 24/7, are forced to increase budgets for operational and labor costs. “The [declared] holidays in the Philippines has huge impact to our operations. We are serving other countries. It costs us a lot of money.” Another factor he says is the 60-day maternity leave for women and the impending approval of its extension in Congress. This will then increase the impact to the “cost of doing business” in the country.

The outsourcing sector is one of the major industries that helps in keeping the Philippine economy to stay afloat, and the government should look into the internal problems to reinforce the country’s weaknesses.
The diminishing talent pool as well as cut-throat competition are also alarming issues that may put off potential clients. Lacdao said it is possible for the sector to employ at least 4.5 million people in the next six years due to the growth of complex export services such as accounting, human resources, and financial services, among others. However, industry growth is somewhat threatened by issues faced by local BPO companies and lack of consideration by the government.


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