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Newly Proposed Call Center Outsourcing Bill Could Adversely Affect Philippines

TMCnews Featured Article

January 09, 2012

Newly Proposed Call Center Outsourcing Bill Could Adversely Affect Philippines

By Jamie Epstein, TMCnet Web Editor

A bill that is currently sitting in front of the U.S. Congress could punish American companies for powering call center outsourcing operations and possibly make them ineligible for certain grants and loans, as well as force agents to disclose where they are located if questioned by a customer. However, these companies may not be only ones suffering the consequences as the business process outsourcing industry (BPO) in the Philippines could be hurt as well.

"Obviously BPO is one of the major industries now in the Philippines and we have a large part of companies coming from not just in other countries but mainly from the United States," Deputy Presidential Spokesperson Abigail Valte said in a statement.

She added, "We would have to discuss possibly the implications as well as the concurrent actions that will have to be done. I will speak to our counterparts in the Department of Foreign Affairs for this mainly also in DTI (News - Alert) (Department of Trade and Industry."

 Besides the banning of access to loans and grants, the bill would also make any call center that doesn’t disclose its offshore location within 60 days to the Labor Department pay a staggering $10,000 a day in penalties.

TMCnet recently had the news that customer satisfaction rates are higher in the Philippines than globally, according to survey conducted by Dimension Data (News - Alert). The reasons hinge on the fact that agents are viewed as “more patient” than those in other regions as Asian call centers came in with 100 percent overall customer satisfaction rates, dramatically higher than the combined global score of 84.5 percent.

Over the last decade, the Philippine BPO industry has boasted revenues from the BPO and Information Technology industry of $9 billion.

It is clear that when and if this bill passes, it will completely alter the way many companies and even countries provide outsourcing services.

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Jamie Epstein is a TMCnet Web Editor. Previously she interned at News 12 Long Island as a reporter's assistant. After working as an administrative assistant for a year, she joined TMC (News - Alert) as a Web editor for TMCnet. Jamie grew up on the North Shore of Long Island and holds a bachelor's degree in mass communication with a concentration in broadcasting from Five Towns College. To read more of her articles, please visit her columnist page.

Edited by Carrie Schmelkin

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