Don’t speculate, Palace says of Trump’s threat vs American BPOs

INQUIRER FILE PHOTO

It’s not yet set in stone.

That was Malacañang’s reaction to reports that United States president-elect Donald Trump had warned American companies against outsourcing their operations to other countries.

“The statement of President-elect Trump on US companies that continue to outsource their operations and services is not a policy set in stone,” Communications Secretary Martin Andanar said in a statement. “We cannot speculate on the future of American BPOs (business process outsourcing) in the Philippines until President-elect Trump takes his oath of office and spells out his policies.”

Andanar claimed that incumbent US President Barack Obama also gave a similar appeal to BPOs “but his call fell on deaf ears.”

“American BPOs stayed in the Philippines because it is more viable to do business here,” the secretary said, noting that it is cheaper to operate in the Philippines since Filipinos are paid per day instead of per hour.

Andanar also explained that the local IT (information technology)-BPO sector is planning to “climb the value chain” and offer animation, game development and healthcare information services in addition to the traditional call centers and IT companies.

“We hope we can capitalize on this where the Philippines has a competitive advantage,” he said.

The secretary emphasized that the Duterte administration’s thrust is to invest in human capital development and the “promotion of science, technology and the creative arts to enhance innovation and creative capacity.”

Trump promised voters to keep companies from moving their operations elsewhere as workers complain of losing jobs to BPOs set up by American corporations abroad. CBB