The Wait and See Environment in the Philippine Call Center Sector is Costing Jobs!

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[pushAUX.com] According to the Contact Center Association of the Philippines (CCAP), a good number of business process outsourcing (BPO) companies have opted to delay expansion plans due to the uncertainty brought about by TRAIN 2, otherwise known as the Tax Reform for Attracting Better and High-quality Opportunities – the TRABAHO bill.

Jojo Uligan/CCAP

 

“We just don’t hear them talking. But yeah, kaya nga ‘yung growth rate natin maliit na lang… In a market like this — with uncertainties — bago tayo (mag-expand), let’s see muna…”

The call center industry earlier expected a growth rate of 9% in the short-term versus the 15-16 percent experienced in previous years.

TRABAHO Causing Job Loss?

BPO locators/companies have gone conservative when it comes to expansion plans, which directly impacts the generation of new jobs. The cause of this of course is the implementation of the second package of the governments tax reform initiative, or the TRABAHO bill, currently pending in Congress.

Jojo Uligan/CCAP

 

“Kung hindi man sila nagho-hold, they keep on asking, ‘Okay, what’s the update? What’s happening?’, Yun ‘yon eh, the fact is that there are members or clients that start to ask questions and it means something to them.”

CCAP has maintained that the planned “rationalization” of tax incentives may have a detrimental effect, more so with the timing in light of the historically strong growth performance of the sector.

Jojo Uligan/CCAP

 

“Siyempre nasa growth mode tayo and then, at this time, there’s a lot of competition. Parang it’s not the right time … If we’re a close second to India, we’re fast approaching…”

Consuello…

As per the Department of Finance (DOF), better incentives will be enacted, but only for well-performing foreign investors. Haha. :o/