Last December 2013, it was found that 900,000 Filipinos are employed in the local business process outsourcing (BPO) sector. According to Department of Trade and Industry Secretary Gregory Domingo, the employment rate in the sector is predicted to reach one million by the end of this year.
The official pointed out that not even US President Barrack Obamaís plea for US firms to bring operations back home worries him because outsourcing is still a probable solution for most American companies to expand operations and reduce costs.
In his State of the Union Address, President Obama insisted that the Congress should make revisions to the Tax Code to discourage companies that move operations abroad. He said the Tax Code of the US has a lot of loopholes which favor companies that outsource abroad and penalize the ones that invest domestically. He wants to put an end to the Tax Codeís ambiguities by discontinuing the benefits received by US firms that outsource offshore.
Meanwhile, Jose Mari Mercado, President of the Information Technology and Business Processing Association of the Philippines (IBPAP) said he isnít fazed by Obamaís statement. He noted that for this year alone, the Philippine BPO sector has 140,000 job opportunities. He added that one of the important factors that BPO players have to focus on is providing the skills needed in the market.
The industry body executive also said the BPO sector of the Philippines is bullish as non-US companies like those from Europe, New Zealand, and Australia are starting to outsource their processes.