A proposed US law that discourages the outsourcing of jobs to overseas markets like the Philippines has got local businessmen worried. And they have reason to bother. This statement from the US president will undoubtedly have an impact on the business process outsourcing (BPO) and knowledge process outsourcing (KPO) industries, as well as the information and communication technology (ICT) industry of countries outside the United States.
President Obama’s statement is aimed at encouraging US companies to create jobs within the country and hire locals instead of outsourcing core and non-core services abroad – a practice that fuels BPO, KPO and ICT industries in many other countries such as Philippines.
The Philippines after all is the biggest beneficiary of America’s call center business wherein recently, it has surpassed India’s as the largest in the world. The Philippine BPO industry alone is targeting a 26% growth in 2010 to outdo its 20% revenue growth the preceding year. However, President Benigno Aquino still has a positive view on this matter.
He said that the issue hasn’t changed since it was brought up four years ago and it seems related to the upcoming elections, and may well fall by the edge. In addition to this, there was a study that shows the effects of the outsourcing industry in the US economy and world trades in general are very positive. The report also indicates that the US economy is experiencing revival in profits in the global trade market because of its broad program of outsourcing.
In conclusion, US firms become more competitive when they outsource and so the practice should be supported for it enables US companies to sell the world. And for as long as BPO and knowledge process outsourcing companies deliver quality performance and cost savings, American firms will prefer to take their business to offshore BPO and KPO destinations like the Philippines.