Monday, November 7, 2016

BPO FIRMS TO LEAVE PHL BECAUSE OF OFFICIAL POLICY ON HUMAN RIGHTS

By Philip M. Lustre Jr.

Last night, I had dinner with two great friends and we could not help but discuss the burning issues of national and global significance. As I always say whenever I am with great friends, the three of us had attempted to solve the problems of the world in three hours.

Of course, we discussed the U.S elections; we agreed that Hillary Clinton would win to become the first woman president in U.S political history. We agreed that Donald Trump’s last minute attempt to capture the White House has gone for naught as the FBI chief has cleared Hillary of any criminal complicity on the issue of her emails.

But the biggest issue that we discussed pertained to what we foresee the country’s economic situation, particularly in the coming months. Amid those rants, curses, and expletives coming out from the mouth of the unpredictable big mouth from the South, we had come to agree that the economic future did not appear rosy.

One of my two friends does business, while the other friend is an educator, who does consulting works on the side. They are accomplished professionals. We have been friends for the past 25 years.

My friend broke the ice to discuss the outcome of his meeting yesterday, where he met a top ranking official of the BPO sector. The BPO top official confirmed to him reports that many BPO firms, particularly the American-owned, were concerned and anxious about the president’s antics, which they felt could only aggravate what they have already perceived as the dwindling business confidence in the Philippines.

My friend said that from his talks with the BPO executive, he had come to learn that American-owned BPO firms were already planning to pack up and withdraw their businesses here. They were looking into the possibility of relocating to Vietnam, or even Cambodia.

Those foreign BPO firms that have earlier plans to relocate and expand their business here have deferred their plans, as they have adopted a wait-and-see attitude to see the actual intentions of the current president. There was no immediate word whether they would continue to do business here, although my friend said the BPO executive had told him that their relocation and expansion plans were set in motion under the previous administration.

My friend said that the BPO official had told him that several infrastructures have already being laid down for future expansion of the BPO sector here, as the latter mentioned those buildings to house the expanded BPO sector. They include those buildings under construction in the MoA area.

“If they leave, those buildings and other infrastructures would become white elephants and we would be the loser,” my friend said quoting the BPO official.

My other friend jokingly said that those currently employed BPO workers could become the next wave of overseas contract workers, as they chase those BPO firms in their new relocation sites. It was a reply that drew laughter from us, but my businessman friend could not help but turn serious as he said that it was not a far-fetched possibility.

“Those Cambodians and Vietnamese do not speak English well. Where would they get the warm bodies to man those BPO booths? The Philippines is still a good source of manpower,” my friend said.

My businessman friend dropped the bombshell that the concern of those BPO firms could not be addressed and contained easily because of official state policies, which have become the basis of doing overseas business. “The international community has changed,” he said. “And it has changed drastically.”

The BPO official, whom he had met in the afternoon, told him that it has been an official policy on the U.S. and even Economic Union countries to do business with countries, which subscribe to the democratic principles and traditions, particularly the rule of law, and the international accords on child labor, the environment, and human rights.

“They would not want to deal with countries that violate any of those parameters. The Philippines, perceived a human rights violator, could become a pariah from their standpoint. Its inability to follow the rule of law could exacerbate the situation,” he said.

My businessman friend said that judging from his conversation with the BPO executive, American BPO firms based here would be hard pressed to leave the country if the current administration would not mend its ways.

“It’s a matter of official policy,” he said. “The situation has become untenable though.”

4 comments:

  1. Why not bring your business in port villa Vanuatu close to Australia. People speak English there so many Australian business over there. Vanuatu is tax free country.

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  2. To all people, particularly those working in the BPO sector: If you feel that I was working with this post, it's fine with me. I don't expect you to agree with me. As I always say, unanimity of opinion belongs to the graveyard. But what I can tell is that I will just wait the day that lose your job and you start banging your heads on the wall. I stand by what I have said. Many BPO firms here are not expanding their capacities. Those firms, which have earlier committed to enter the country, have opted to defer their plans. Some firms here are contemplating to move out in some neighboring countries, possibly Cambodia and Vietnam. Not India, which is already saturated and where cost is getting higher. Foreign businesses become very conservative in times of uncertainty. They also operate under certain specific norms of conduct. As I have said earlier, many firms do not operate in countries perceived to have violating the international norms on child labor, environment, and human rights.

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  3. We have a son who works with an American BPO here in the country. He occupies a middle level position. Although he is not privy to the policies of his current employer, he told me that the danger of a pull-out is really imminent. How much more with Trump winning the election?

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    1. From all indications, Trump would likely pursue policies that revolve on the theme of isolation. His isolationist policies would include giving incentives to U.S. firms which would avoid outsourcing jobs to foreign countries and keeping those jobs in the U.S. If this happens, the BPO sector here would be likely affected. Trump stands for small government - less taxes, less intervention, and less programs on social equity. I foresee some contraction in the BPO sector in the next two or three years. At tghg e moment, the firms that have committed to enter the Philippines after negotiations with the previous administration have opted to hold any entry here... And the existing ones are not expanding either. Some souls do not understand these emerging developments.

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