Anti-US remarks cause jitters in BPO/IT sector

CEBU, Philippines – The outsourcing and the IT industries in Cebu are anxious of the possible effects of the uncertainty created by President Duterte’s continued anti-US remarks.

The fate of the outsourcing sector on the backdrop of an unstable Philippine-US relations can be determined in at least the next three or six months from now, said Cebu Educational Development for Information Technology (Cedfit) managing director Wilfredo Sa-a Jr.,  in an interview yesterday.

He said although no significant effects have yet been felt in BPO operations in Cebu, the sector has expressed apprehensions of the consequence to the outsourcing industry from the  ongoing diplomatic tension between both countries.

Sa-a hopes that the government led by President Rodrigo Duterte and other concerned agencies will be able to do what is best for the Philippines, so as the multi-billion-dollar outsourcing industry, whose majority market is the US, will not bear the brunt.

Despite the jitters, Sa-a said outsourcing companies in Cebu are still holding on to a  positive grip of the situation, and looking forward that the tension will eventually calm down without affecting investments and businesses that have connections with the United States.

There are over 200 IT/BPO companies operating in Cebu, employing over 100 thousand people. Annual growth is projected to hit at an average of 20 percent.

Earlier reports indicated that investors from the US and Europe are now having second thoughts on the Philippines, with several manufacturing and BPO companies opting to put their investments on hold while some are planning to take their businesses elsewhere.

This warning was made by officials of the American Chamber of Commerce of the Philippines, and European Chamber of the Philippines, following the series of anti-American comments made by President Duterte in the last couple of months.

John Forbes, senior advisor of the American Chamber of Commerce of the Philippines, said in a report that several trade missions and BPO investment plans have been cancelled.

Despite threats of weakened trade and business relations, President Duterte has been persistent in his public attacks on those criticizing his war against illegal drugs. Allies such as the US, European Union and the United Nations were not exempted from these tirades.

Duterte earlier said he was not worried about driving away American and European investors as he could turn to China and Russia for investments.

Latest record from IT and Business Process Outsourcing Association of the Philippines (iBPAP) showed that outsourcing industry in the Philippines is employing 1.3 million people, contributing 7.3 percent of the country's Gross Domestic Product (GDP). (FREEMAN)