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NEWS UPDATES 19 August 2009

India, Philippines team up to save outsourcing jobs

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Asia’s business-process outsourcing (BPO) giants India and the Philippines are joining forces in blocking the plans of world economic superpowers United States and European Union in coming up with policies that would dissuade their corporations from outsourcing jobs to other countries, reported Philippine daily the Manila Times.

Jonathan de Luzuriaga, executive director of the Business Process Association of the Philippines (BPAP), said his group will meet with officials of the National Association of Software and Services Companies (Nasscom) of India next week to map out strategies on how to counter the protectionist legislation that the governments of  the US and  EU are planning to enact.

“The Philippines and India are both BPO superpowers, so we need to have a common stand. We need to be ahead of the curb,” de Luzuriaga said at the sidelines of the opening of ExcelAsia’s new training site for BPO near-hires in Eastwood City, Libis, in Quezon City.

He said the governments of the US and EU have already made pronouncements that they will remove the incentives of companies that will continue to outsource some of their core operations.

India, being the top BPO destination in the world, has been actively lobbying against this, he added.

Nasscom has also talked to the BPAP to get the support of the Philippines. “Nasscom said we are the No. 2 BPO destination in the world so we should help them out. It’s just a matter of educating some geographies that outsourcing is now a reality and a global trend,” de Luzuriaga said.

At the scheduled meeting next week, he said Nasscom and BPAP will come up with a common position paper that will be sent to the US and Europe.

If they cannot stop the US and EU from coming up with protectionist legislation, Nasscom and BPAP will go directly to the American and European companies to explain to them that the cost savings that they will get from outsourcing, plus the quality of work, will far outweigh any incentive that they are getting from their governments.


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