CCCI optimistic BPOs will stay in Philippines

CEBU, Philippines - Cebu Chamber of Commerce and Industry President Prudencio Gesta shares the same optimism with other business leaders that the business process outsourcing industry will stay in the country despite the strengthening of the peso against the dollar.

He said although closing down or transferring to other countries remain options for foreign investors, better skills and availability of talents in the Philippines will be the main equalizers against any additional cost of operations.

“I am still optimistic that BPO companies will continue their operation though peso to dollar reaches at P39 for as long as their clients are satisfied with our service,” he told The FREEMAN.

In an ANC report, an economist from the University of Asia and the Pacific (UA&P) warned that the local currency strengthening to P39 against the dollar could prompt BPO companies to close shop.

National statistics show that the BPO sector employs 700,000 Filipinos.

The peso closed at P40.850 as of January 8.

It gained 6.4 percent since the start of 2012, becoming Asia’s best performing currency after South Korea’s won.

This year, Cebu is projected to hit more than 100,000 employees in the Information, Communication and Technology (ICT) sector with the expressed interest of some high-value outsourcing companies.

At present, the local ICT industry in Cebu is directly employing close to 90,000.

In 2011, it had a total of 75,000 people working in the ICT sector.

About 11,000 were added as new companies opened last year while about 5,000 were employed through the expanding BPO firms.

BPO employees also expressed optimism with the sustained growth of the industry in the country, banking on the competent qualifications of Filipinos as exporters of services.

Xyprus Jimed Muñoz, a unit manager of a large-scale BPO company in Asiatown IT Park, believes that even with further peso appreciation, investors won’t close shop since moving out their businesses to other countries is considered risky and expensive.

 He also emphasized that industry players chose the Philippines not just because of the peso-dollar exchange rate but also because of the competitiveness of Filipinos in terms of English fluency, familiarity of the American culture and values of hard work and patience.

He is also positive that BPO companies are smarter enough to modify their business strategies if the peso appreciation to P39 would happen.

“I believe that large BPOs are here to stay. After all, the peso dollar exchange is not permanent. Although some BPOs might close but we can never be too sure if it’s really due to the peso strength factor,” he stated.

Muñoz has established his career in the BPO industry from May 2007 to present.

Jaysee John Pingkian, 22, on the other hand,  expressed confidence because the Filipino workforce is “way better” compared to other countries.

He cited that Philippine-based customer and technical service representatives possess excellent communication skills, knowledge in information and technology and other resources efficient for foreign companies. 

“If that happens, I think they won’t close immediately yet I don’t think the industry will boom, but may rather have a steady performance. It may hurt the industry but not that bad. We will be a great loss to the companies and the Westerners know that. They’ve worked with us and chose us all these years despite the option of cheaper labor in China and India,” he pointed out.

He further noted that the BPO industry boom paved the way for Cebu where it is  now, saying that the province is an “economic powerhouse that is just as productive as the nation’s capital, Manila.”

Asked if he would stay for good in the lucrative sector for professional advancement, Pingkian said that the career growth and compensation could persuade him to grow old with BPO but pointed out he has other plans.

 For four years as a BPO employee, he had worked with two companies previously and is now connected with a US-based self-publishing company. — (FREEMAN)