Philippines BPO Industry Not Worried About 'U.S. Jobs Back Onshore' Initiative

Americans watching President Obama's State of the Union address last night heard a lot of things but one thing that stood out was his urging of American businesses to bring jobs back to the U.S. Last week, the President said he wants to eliminate tax breaks for companies that outsource.

If you're an unemployed American, that's good news. If you're a company that outsources a lot of jobs, it may be making you squirm a little. And if you're a nation that takes a lot of offshored jobs, you may be a little anxious.

The Business Processing Association of the Philippines – a nation which takes a critical mass of U.S. call center business – said it's not concerned, point out that outsourcing has allowed U.S. companies to survive the global financial crunch by lowering costs and to expand — thereby creating more jobs for Americans, according to the Associated Press (News - Alert). The BPAP's spokesman, Martin Crisostomo, said that outsourcing is inseparable from globalization and a business model that helps companies cut costs.

But coming down the pike may be more than just disapproval for companies that outsource jobs.

A bill submitted to the U.S. House of Representatives last month, called the “Call Center and Consumers Protection Bill” (HB 3596) by sponsors Reps. Tim Bishop (D-NY), David McKinley (R-WV) and Mike Michaud (D-TX), if enacted, would require overseas call center employees to disclose their location to U.S. consumers, and it would give customers the right to be transferred to a U.S.-based call center if they wish.

Any company failing to do so would incur fines of $10,000 per day. The bill would also require the U.S. Department of Labor to track and list companies that move call center jobs overseas. Those companies would then be ineligible for any direct or indirect federal loans or loan guarantees for five years.

All of these are heady incentives for companies to bring offshore call center jobs back to the U.S., though the bill's passage seems uncertain, as similar legislation has failed in the past.

In the meantime, the Philippines government and the business process outsourcing (BPO) industry in that nation are monitoring developments. For its part, the BPAP believes that market forces will dictate the industry’s future, said the AP.

“At the end, it will not be politics but it will be the bottom line,” Crisostomo said.

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