With the re-election of US President Barack Obama and renewed discussions about the anti-outsourcing bill, the Business Processing Association of the Philippines (BPAP) said via Benedict Hernandez, President and CEO of the organization, they laud President Obama’s win in the elections and they will still support businesses based in the US and its economy. The Philippines’ IT-BPO sector in particular will carry on in enabling US firms to remain competitive.
He added that subcontracting processes to the Philippines allows American companies to make more profit, which will often result to more jobs locally and in the US.
The “Bring Jobs Home Act”, which was unsuccessful in the US Senate a few months ago, aims to reduce tax breaks and government grants for US-based firms, and allocate 20% tax reduction for companies that will bring jobs back to the US.
However, Hernandez noted that outsourcing is not a major factor for the job losses in the US. He cited a study from “Dartmouth’s Tuck School of Business” Economist Matthew Slaughter, which found that for every job outsourced, almost two jobs are created. He said outsourcing is a feasible business solution and companies based in America and the Philippines, and American and Filipino workers will benefit from it.