BPAP congratulates the US & President Obama, pledges support for economy
(November 09, 2012, Manila, Philippines) — The Business Processing Association of the Philippines (BPAP) congratulated the United States on the success of the presidential election and US President Barack Obama on his reelection to a second term amid speculation that his victory may resurrect talks on the passage of anti-outsourcing legislation in the US Senate.
“We congratulate President Barack Obama on his reelection. While there has been speculation that anti-outsourcing legislation may be revisited, the Philippine IT-BPO industry will continue to support the US economy and American businesses to help ensure they are among the most competitive in the world while freeing up resources to create more jobs in the US,” said BPAP president and CEO Benedict Hernandez.
According to Hernandez, “Outsourcing business services to the Philippines helps make American companies more competitive and profitable. Profitable companies hire more workers, both here and in the United States.”
The “Bring Jobs Home Act” failed in the US Senate in July. It was intended to eliminate tax breaks for US companies outsourcing services and manufacturing jobs to other countries and provide a 20% tax deduction on costs associated with closing outsourced operations and transferring jobs to the US.
Numerous studies have shown that outsourcing has little negative impact on job losses and in fact fosters job growth in companies that outsource business processes. “Dartmouth’s Tuck School of Business economist Matthew Slaughter, in a study of the hiring practices of 2,500 US multinationals, found that for every job outsourced, nearly two new jobs are created in the US,” said Hernandez.
From a US$35-billion global IT-BPO market in 2009, the industry is expected to generate at least US$220 billion in revenues this year, according to a report by the Everest Group. “Demand for global IT-BPO services is huge and continues to expand at a rapid rate,” he said. “Outsourcing is a win-win proposition, and we believe that both American and Philippine companies—and American and Filipino workers—will continue to benefit from the opportunities it provides,” said Hernandez.
In 2011, the Philippines’ IT-BPO industry generated more than $11 billion in revenue and employed almost 640,000 Filipinos. By 2016, it is expected to grow to $25 billion in annual revenue and employ 1.3 million, according to an industry road map.
The Business Processing Association of the Philippines (BPAP) is the umbrella association for the IT-BPO and GIC (Global In-House Center) industry in the Philippines. BPAP serves as the one-stop information and advocacy gateway for the industry. With approximately 300 industry and support-industry members, including five associations—Animation Council of the Philippines, Contact Center Association of the Philippines, Game Developers Association of the Philippines, Healthcare Information Management Outsourcing Association of the Philippines, and Philippine Software Industry Association—BPAP plays a pivotal role in sustaining rapid growth of the IT-BPO and GIC industry by working to ensure an enduring supply of high-quality labor, supporting service innovation, and providing country visibility.
BPAP assists investors in setting up operations easily and quickly in the Philippines. Relevant research, introductions to key government and industry officials, and a series of briefings at each step of the investment process ensure a seamless development process. Ongoing support is provided through a wide variety of initiatives, including programs for HR development, business development, and ongoing knowledge sharing and networking opportunities.