Aquino government urged to block US bill vs BPO industry

Tuesday, January 3, 2012

THE chairman of the House Committee on Public Information urged the Aquino administration to mount a massive lobby in the United States Congress to block a measure that would adversely affect the Philippines' Business Process Outsourcing (BPO) industry.

According to Eastern Samar Representative Ben Evardone, House Bill (HB) 3596 entitled “Call Center and Consumers Protection Bill” aims to discourage US companies from outsourcing their operations.

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The proposed legislation will require call center operators who answer calls to identify their location, giving US callers the option of choosing a local operator.

The measure will also penalize US companies $10,000 a day if they fail to report their relocation to the US Department of Labor within 60 days.

Under the proposed legislation, companies will also be required to inform the same agency 120 days in advance regarding their plans to transfer operations elsewhere.

HB 3596 will also ban US call centers operating outside the US from seeking federal grants and loans for five years.

“Clearly, this bill is a protectionist measure which, if adopted into law, would have a negative impact on BPO industry in the Philippines. This might result in possible job losses,” Evardone said.

Evardone said the Aquino government should protect and promote the BPO industry, which is now the largest in the whole world after overtaking India in voice Information Technology-BPO.

According to the lawmaker, the BPO industry generated less than $100 million in total revenues back in 2001. The amount doubled yearly reaching $3.3 billion in 2006.

“We need to protect our inherent strength – a well-educated, English-speaking labor pool and advanced telecommunications infrastructure,” Evardone stressed.

He noted that the proposed legislation will likely pass the US Congress as election season nears. (Kathrina Alvarez/Sunnex)