DAVAO City, Philippines - The economic crisis hounding the United States could actually be good, at least for the future of the business process outsourcing (BPO) industry in the Philippines, an industry player said Thursday.
Nanette del Monte, chief of the Cyber City Services based here, said the economic crunch affecting the US will push American businesses to maintain, or even expand their linkages with Philippines BPOs because they could save more on cost.
Del Monte said the country's cheap labor cost would help American companies save much-needed money.
"The future of contact centers (in the Philippines) is bright in the wake of the US economic crisis because the BPO industry is cost-based," Del Monte said before the Club 888 forum held at The Marco Polo hotel here.
She said because Philippine BPOs do not pay huge salaries compared to those found in other countries, the contract cost they offer to foreign companies is also not that much.
Del Monte said because Philippine BPOs offer lower contract prices, they are expected to get additional clients and services from US companies wanting to cut on expenditures.
Del Monte said even foreign-based BPOs are already thinking of expanding to the Philippines, particular in this city, in anticipation of the increase in the number of US companies turning their eyes on cheaper contracts.
"As of last month, two companies from India already had a meeting with the Department of Trade and Industry (DTI) regional office (in Southern Mindanao) and discussed plans for expansion in Davao City," Del Monte said.
She did not name the particular companies.
Aside from cheaper contracts, BPOs located in the Philippines also provide better services according to Del Monte, citing an Asia-wide survey undertaken by a company she also did not identify.
Ofelia Domingo, assistant regional director of the Department of Labor and Employment in Southern Mindanao, said there has been a continued growth in the BPO industry during the past months here.
She said that out of the 1.803 million labor force in the region, about 15 to 20 percent are now employed by call centers companies.
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