Obama’s re-election not bad for Philippines
By Newsbytes.ph November 13, 2012
- ‘Outsourcing business services to the Philippines helps make US companies more competitive and profitable’
- In 2011, the Philippines’ IT-BPO industry generated more than US$11bil in revenue and employed almost 640,000
THE Business Processing Association of the Philippines (BPAP) has welcomed US President Barack Obama’s re-election amid speculation that his victory may resurrect talks on the passage of anti-outsourcing legislation in the US Senate.
“We congratulate President Barack Obama (pic) on his reelection. While there has been speculation that anti-outsourcing legislation may be revisited, the Philippine IT-BPO industry will continue to support the US economy and American businesses to help ensure they are among the most competitive in the world while freeing up resources to create more jobs in the United States,” said BPAP president and CEO Benedict Hernandez.
According to Hernandez, “Outsourcing business services to the Philippines helps make American companies more competitive and profitable. Profitable companies hire more workers, both here and in the United States.”
The “Bring Jobs Home Act” failed in the US Senate in July. It was intended to eliminate tax breaks for US companies outsourcing services and manufacturing jobs to other countries and provide a 20% tax deduction on costs associated with closing outsourced operations and transferring jobs to the United States.
Numerous studies have shown that outsourcing has little negative impact on job losses and in fact fosters job growth in companies that outsource business processes.
“Dartmouth’s Tuck School of Business economist Matthew Slaughter, in a study of the hiring practices of 2,500 US multinationals, found that for every job outsourced, nearly two new jobs are created in the United States,” said Hernandez.
From a US$35-billion global IT-BPO market in 2009, the industry is expected to generate at least US$220 billion in revenues this year, according to a report by the Everest Group.
“Demand for global IT-BPO services is huge and continues to expand at a rapid rate,” he said.
“Outsourcing is a win-win proposition, and we believe that both American and Philippine companies — and American and Filipino workers — will continue to benefit from the opportunities it provides,” said Hernandez.
In 2011, the Philippines’ IT-BPO industry generated more than US$11 billion in revenue and employed almost 640,000 Filipinos. By 2016, it is expected to grow to US$25 billion in annual revenue and employ 1.3 million, according to an industry road map. – Newsbytes.ph