By: Riza T. Olchondra
Philippine Daily Inquirer
Economists warned on Monday that the Philippines’ outsourcing sector should develop and market higher-value services to cope with the United States’ moves to “insource†more jobs, which could signal a long-term curb in demand for outsourcing services.
That is, unless Manila-based companies differentiate their services from those that can be obtained in the US and from other outsourcing destinations such as India.
About 70 percent of business process outsourcing (BPO) firms in the Philippines rely heavily on US clients, although demand for outsourcing jobs is growing in Europe and Australia.
Since BPO firms, knowledge process outsourcing companies, and similar entities contribute greatly to employment and foreign exchange earnings, US insourcing “could lead to a decline in both (jobs and dollar revenue),†Dr. Cid L. Terosa of the University of Asia and the Pacific said via text message.
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