How does the Philippine government support the BPO industry?
Business Process Outsourcing (BPO) in the Philippines has come a long way since it started in the country in 1992. An international global resource center has initiated the local outsourcing industry. But it was 2000 when outsourced customer service in the Philippines had expanded and increased. After more than two decades, outsourcing customer service to the Philippines continues to grow and provide more jobs to the Philippines. One of the proofs of the BPO industry’s success in the country is when the Philippines knocked India out as the world’s BPO leader in 2010. This is according to IBM’s Global Locations Trend.
What do you think is the reason why outsourcing customer support in the Philippines has been successful? The key factor is strong state support. The Philippine government from the time of President Gloria Macapagal Arroyo to incumbent President Rodrigo Duterte offers some fantastic business deals that BPO companies could not resist: entitlement to multiple incentives such as tax days, simplified import and export procedures, tax exemptions on imported capital equipment, and the privilege of hiring foreigners national.
The following are some of the remarkable achievements of the Philippine presidents in support of the BPO industry:
President Fidel Ramo’s regime – In 1995, Congress approved the Special Economic Zone Act. It is a law intended to promote foreign and local investment in ecosystems. Because of this, the Philippine Economic Zone Authority or PEZA was born. And it opened many doors for international outsourcing companies in the country.
The Arroyo administration had been very supportive in outsourcing customer service, and some of the results were the creation of the Information and Communication Technology Commission, the accreditation of buildings used by industry, the completion of infrastructure projects such as airports and training vouchers from the Technical Education and Skills Development Authority or TESDA.
In 2000, it said that from 2,400 call center workers, the BPO industry increased to nearly half a million workers by the end of 2009. During the decade, the industry escalated by an impressive 65% per year. In 2001, the Contact Center Association of the Philippines or CCAP was formed. It is the umbrella organization for the country’s contact center industry.
President Rodrigo Duterte regime – when President Duterte approved the implementation of the Tax Reform Act for the Acceleration and Inclusion Act or the TRAIN Act, the Ministry of Finance assured that foreign services for BPO companies in special economic zones remain exempt from VAT, while companies not included in SEZ (including those registered with the Board of Investors) will retain its zero-rated status.
The outsourcing industry in the Philippines was shaken when the president declared the “separation” between the Philippines and the United States. It was understandable if the BPO sector was disrupted because the majority of BPO clients were from the United States. But the president guaranteed that he would not be arrested and forget the fear. Our country has a democracy, and he will follow free enterprise.
Outsourced customer service in the Philippines remained robust and the pillar of the economy in time for the 2020 pandemic. While many companies were forced to close temporarily, BPO companies continued to operate. And it is expected that this BPO job will be multiplied in 2021. It is a good time, especially for those who lost their jobs due to the pandemic.
Outsourcing customer service is best done through Onlinefactory.
