No need to fear US bill vs outsourcing

DAVAO CITY—The bill pending in the United States Congress barring American companies from outsourcing jobs overseas will fail to pass for lack of support, according to information and communications technology (ICT) players.

Lizabel Holganza, vice president of the National ICT Confederation of the Philippines (NICP), said the bill, which is being deliberated on Capitol Hill, was actually a rehash of a 2004 bill that California State Sen. Liz Figueroa had tried to rally support for.

NICP is the umbrella organization of the Philippines’ 35 information and communications technology groups.

Nothing new

“It is not a new bill because in 2004 Senator (Liz) Figueroa of California tried to lobby for the same but failed due to lack of support from US businesses,” Holganza said.

Holganza said US companies would be the first to object to such a bill, since outsourcing is “fueled by their desire for long-term growth, competitiveness and sustainability.”

Earlier, House Majority Leader Neptali Gonzales II and Eastern Samar Rep. Ben Evadrone urged the government to send a lobby group to Washington to work for the nonpassage of the call center bill.  Gonzales said he was worried the bill’s passage would kill the country’s business process outsourcing industry (BPO), which is dependent on mostly American companies.

Evardone had said the passage of the bill could result in the loss of job of some 800,000 call center agents and the loss of some $9 billion in revenues.

Wilfredo Sa-a, executive director of the Cebu Educational Development Foundation for IT (CEDF-IT) said the Philippines has become a favorite among American companies because “American businessmen, just like any other, will always look for locations that will give them more value for their money.”

Main challenge

“So as long as we give them the best quality service at the right cost, plus timely delivery, we will always be the preferred location,” he said.

“The main challenge is to be globally competitive always.”

Holganza said in case the bill gets approved in the US Congress, the BPO industry would still survive.

She said industry players from Cebu, Bacolod and Davao had initiated new market promotions targeting Asia and Europe, as alternatives to the US market.

In a statement, the NCIP also said it was confident that “the business process outsourcing industry will continue to be one of the biggest in terms of job creation and revenue generation in the Philippines for 2012.” Germelina Lacorte, Inquirer Mindanao