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BPAP Pleased over US Anti-outsourcing Bill’s Rejection

by: Sarah Joson

Tuesday, July 31, 2012 | Outsourcing News |

In a recent statement, Benedict Hernandez, President and CEO of the Business Processing Association of the Philippines (BPAP), said the rejection of the anti-outsourcing bill in the US is proof that outsourcing is here to stay and will continue to help companies in the Philippines and the US.  

Anti-outsourcing bill rejected

The bill was unable to get enough votes to be approved with 56-42, and was dismissed by the US Senate.

The act aims to provide more employment opportunities for people in the US. However, companies that are moving jobs offshore will no longer receive tax breaks and other benefits from the US government.

The outsourcing process was seen to have helped US businesses to stay afloat during trying times. In fact, Hernandez added that outsourcing has little to do with job losses in the US. Instead, it helps those businesses reallocate resources instead of spending them on additional personnel.

Hernandez highlighted several points from a study done by Matthew Slaughter, an economist at Dartmouth’s Tuck School of Business. He stated that for every job subcontracted abroad, at least two more are created in the US.

The annual revenue of the outsourcing industry in the Philippines is predicted to grow $25 billion and provide 1.3 million jobs. In 2011, the IT-BPO industry contributed $11 billion in revenue and employed about 640,000 Filipinos.


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