Home-working trend could change Philippine business process outsourcing industry

Philippine call centers and business process outsourcing firms are increasingly coming under pressure from a new home working attitude of employees, threatening to derail the sector’s two decades of growth, Bloomberg News wrote.

The Contact Center Association of the Philippines, an industry organisation for call centers in the country, sees a shift towards working-from-home, one of several Covid-19-era workforce adaptations that could become entrenched. This could lead to problems for companies since some tax breaks crucial to the industry are only valid if the bulk of their employees work in designated economic zones.

With most Filipinos proficient in English, call centers have played an increasingly important role in the country’s economy since the 1990s, creating millions of jobs and driving consumption. As exporters of information technology services are often located inside government-designated economic zones, many of the companies enjoy special tax breaks.

Important job creating industry

Call centers employ about 800,000 people in the country, or about 75 per cent of the 1.3 million workers in the outsourcing sector, and add as many as 80,000 new jobs per year. As the global recovery continues, more companies will look to cut costs by moving jobs offshore, creating more opportunities for Philippine outsourcing companies.

However, among the challenges are infrastructure investments by telecommunication companies to bolster at-home connectivity. In addition, a 1994 law on economic zones must be updated for the outsourcing industry. The law gives tax breaks to companies whose output is produced in the zones, which suggests employees must be working onsite.

Amid the pandemic, about 60 per cent of total call center employees are currently working from home, with some companies now fully home-based. The government recently allowed companies in the economic zones to let as many as 90 per cent of employees work from home through next March.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

Philippine call centers and business process outsourcing firms are increasingly coming under pressure from a new home working attitude of employees, threatening to derail the sector’s two decades of growth, Bloomberg News wrote. The Contact Center Association of the Philippines, an industry organisation for call centers in the country, sees a shift towards working-from-home, one of several Covid-19-era workforce adaptations that could become entrenched. This could lead to problems for companies since some tax breaks crucial to the industry are only valid if the bulk of their employees work in designated economic zones. With most Filipinos proficient in English, call...

Philippine call centers and business process outsourcing firms are increasingly coming under pressure from a new home working attitude of employees, threatening to derail the sector’s two decades of growth, Bloomberg News wrote.

The Contact Center Association of the Philippines, an industry organisation for call centers in the country, sees a shift towards working-from-home, one of several Covid-19-era workforce adaptations that could become entrenched. This could lead to problems for companies since some tax breaks crucial to the industry are only valid if the bulk of their employees work in designated economic zones.

With most Filipinos proficient in English, call centers have played an increasingly important role in the country’s economy since the 1990s, creating millions of jobs and driving consumption. As exporters of information technology services are often located inside government-designated economic zones, many of the companies enjoy special tax breaks.

Important job creating industry

Call centers employ about 800,000 people in the country, or about 75 per cent of the 1.3 million workers in the outsourcing sector, and add as many as 80,000 new jobs per year. As the global recovery continues, more companies will look to cut costs by moving jobs offshore, creating more opportunities for Philippine outsourcing companies.

However, among the challenges are infrastructure investments by telecommunication companies to bolster at-home connectivity. In addition, a 1994 law on economic zones must be updated for the outsourcing industry. The law gives tax breaks to companies whose output is produced in the zones, which suggests employees must be working onsite.

Amid the pandemic, about 60 per cent of total call center employees are currently working from home, with some companies now fully home-based. The government recently allowed companies in the economic zones to let as many as 90 per cent of employees work from home through next March.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply