The call center industry in the Philippines is not slowing down any moment. However, it is also not growing as it did before.
On the other hand, if we talk about global market share, the country is still leading. The Philippines is still the number one when it comes to being the most outsourced country in the global scene of BPO. The country has taken 16 to 18 percent of the total outsourced services internationally.
Protectionism In The US
Bangko Sentral ng Pilipinas deputy governor Diwa Guinigundo stated during the anniversary celebration of the Credit Management Association of the Philippines in Manila that protectionism might affect remittances. Trump’s wish to keep jobs at home will affect the BPO industry in the long run.
“Based on our periodic discussions with the BPO Association of the Philippines, they have second thoughts about expanding their business in the Philippines because of the pronouncements of President Trump to keep jobs at home,” Guinigundo said. He also added that it is the reason why many BPO companies will not expand even though they want to and they can. As a result, the predicted 25 percent annual growth became 10 percent only.
“[The] Philippines would be the biggest loser if Trump followed through on his previous threats to push American companies that outsource job abroad,” the Capital Economics report stated.
TRAIN Law Affecting BPO Industry
At the beginning of 2018, the TRAIN law was the big talk. It was reported all over the news and media outlets as it will affect everybody and every aspect of the Philippine economy. That means the BPO industry is not an exception.
As the TRAIN Law has been passed, it will affect the special tax rate of BPO companies in the country. It will have a negative effect on investors and employees alike. The cost of doing business in the country has increased and when the tax incentive is removed, BPO companies might do their business in other countries like India where it is 12-14 percent cheaper.
Good thing, not only the IT and Business Process Association of the Philippines (IBPAP) is fighting for it but also one of the senators, Bam Aquino. “The BPO sector is a major source of livelihood for Filipino families. We cannot afford to give away job security and job opportunities, especially with the rising prices of goods,” Senator Aquino said.
More Jobs For Call Center Agents
According to the Everest Group data, the Philippines has generated a total of $13 billion revenues in 2017 and the CCAP expects the BPO industry to even add one billion (seven to nine percent) more this year. Jojo Uligan said that the predicted one more billion is equivalent to 70,000 more jobs.
Contact Center Association of the Philippines chairman Benedict Hernandez has stated that the 60,000-70,000 jobs are going to be needed annually in the next five years. “The global market for outsourcing the IT and BPO services, including contact centers, is far from being saturated. The view from the roadmap for the 2022 study is that it’s a trillion economies for the IT and BPO markets globally. Of this trillion economy, we penetrated about 16 percent of those two years ago,” Hernandez said.
These are the latest news about the call center industry in the Philippines for the first half of the year. For more news and updates, click here.
