Business Process Outsourcing Philippines after the US elections
With the US elections over, President Barrack Obama keeps his seat in the oval office and with it, the continuation of his policies. While the majority of Americans revered his triumph, there are some who feel threatened about what is going to happen in the next few years. One of which is the BPO industry because of growing speculations that the US President has intentions of revisiting the anti-outsourcing bill in the hopes of “bringing jobs back home”.
The US economy is still recovering from the last recession which left millions of Americans struggling for jobs. In turn, companies had to consider outsourcing to survive the economic turmoil and avoid bankruptcy. This led to the impression that outsourcing was a key factor in the already high unemployment rate in which, the government responded by forming the “Bring The Jobs Back Home Act” that will remove tax incentives from US companies that outsource their operations and promise a 20% tax deduction on costs for those who would bring them back to US soil.
However, many studies show that BPOs have a minimal effect on the already delicate economy and in most cases, generate more work opportunities in the country. Outsourcing Philippines is beneficial to US companies mainly because of its financial advantages. Maintaining a high productivity at a substantially lower cost is the main reason why businesses all over the world turn to outsourcing. This allows them to have an edge in the market despite the economic difficulties they are facing and eventually create more opportunities for local employment.
BPOs shouldn’t be considered as a threat but rather a means to bring the economy back on its feet. The BPO industry helps companies who would have otherwise closed shop to stay in business and help alleviate the current economic crisis.