The Philippine Online Chronicles

The Technical Education and Skills Development Authority (TESDA) is unfazed by a potential US bill that removes incentives from American companies who choose to outsource.

The agency recently released a PhP500-million stimulus fund to the Business Processing Association (BPAP) of the Philippines, aiming to train prospective call center workers and creating 65,000 new jobs.

US President Barack Obama in his State of the Union address last week proposed that the tax incentives granted to outsourcing companies be removed, instead giving similar incentives to businesses on American soil.

“We’re considering a review of our Training Regulations to ensure a ready pool of skilled workers so that companies will continue to do business here,” TESDA Director-General Joel Villanueva said on Monday.

Executive director of the Information and Communications Technology Office of the Department of Science and Technology (DOST) Alejandro Melchor said that the US bill, even if passed, would not deter US companies from outsourcing, saying the benefits from outsourcing are far higher than any benefits granted by the US government.

A call center agent in the Philippines needs only be paid one-fifth of the salary of a call center agent in the United States.

The BPO industry earned USD7 billion last year, with over 600,000 employees. 70% of their clients are American companies.