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A Philippines without call centers! Are we ready for a worst-case-situation like this? Have we got the infrastructure to cope with mass unemployment? Quo vadis call center agent? I know this scenario seems incomprehensible, but let me assure you that it is not far-fetched.
In the time of budget surplus, the jobs that Americans didn't want got shipped offshore. Back office work then was generally viewed by many as a dead end, unattractive, stressful, and therefore only transient. This posed a challenge to the companies: How do you retain employees in order to maintain stability and continuity in the back office? The answer was to hire a third party who will ship the jobs elsewhere; preferrably to developing countries like the Philippines. The companies get to save on the operational costs and still maintain a credible yet stable back office.
The BPO sector - particularly call centers - has been providing much-needed employment to Filipinos for more than a decade. In the cities, everybody knows someone who works in a BPO. With the relatively above-average compensation they receive, young, tech-savvy, and socially active Filipnos were given the opportunity to indulge in the hedonism of gadgets, booze, and Starbucks. With the improved purchasing power of so many, other businesses also reaped benefits. Local fastfood chains around corporate offices now operate round-the-clock; only Wendy's did that pre-2003. Even the ambulant cigarette vendors ply their much-needed products 24/7.
The economic situation is very different today. The global economy is still struggling to survive. Bears are prowling the global markets. Sovereign debt clouds both tthe United States and Europe. More importantly, unemployment in the US has remained high at plus 9%. In order for companies to start hiring, they first need to make a profit. They make profits if people are buying their products or services. People need jobs to earn money in order to purchase products or services. It is a vicious cycle. Not a few have been demanding that the jobs offshored during happier times be brought back. Of course the government cannot arbitrarily order companies to comply post-haste. Operating offices overseas has been and still is profitable for these companies and - in a capitalist world - that is the main objective of having a business.
But, what if offshoring becomes unprofitable? Will these companies hold steadfast? I bet not. The US dollar is much weaker now. And what if it gets weaker? The profits get smaller. There is also a proposal to tax companies for jobs shipped overseas. And one more thing, 2012 is an election year in the US. Unemployment has been a thorny issue for President Barack Obama and the Democrats. One way or another, they will try to make companies bring home the jobs.
In the time of budget surplus, the jobs that Americans didn't want got shipped offshore. Back office work then was generally viewed by many as a dead end, unattractive, stressful, and therefore only transient. This posed a challenge to the companies: How do you retain employees in order to maintain stability and continuity in the back office? The answer was to hire a third party who will ship the jobs elsewhere; preferrably to developing countries like the Philippines. The companies get to save on the operational costs and still maintain a credible yet stable back office.
The BPO sector - particularly call centers - has been providing much-needed employment to Filipinos for more than a decade. In the cities, everybody knows someone who works in a BPO. With the relatively above-average compensation they receive, young, tech-savvy, and socially active Filipnos were given the opportunity to indulge in the hedonism of gadgets, booze, and Starbucks. With the improved purchasing power of so many, other businesses also reaped benefits. Local fastfood chains around corporate offices now operate round-the-clock; only Wendy's did that pre-2003. Even the ambulant cigarette vendors ply their much-needed products 24/7.
The economic situation is very different today. The global economy is still struggling to survive. Bears are prowling the global markets. Sovereign debt clouds both tthe United States and Europe. More importantly, unemployment in the US has remained high at plus 9%. In order for companies to start hiring, they first need to make a profit. They make profits if people are buying their products or services. People need jobs to earn money in order to purchase products or services. It is a vicious cycle. Not a few have been demanding that the jobs offshored during happier times be brought back. Of course the government cannot arbitrarily order companies to comply post-haste. Operating offices overseas has been and still is profitable for these companies and - in a capitalist world - that is the main objective of having a business.
But, what if offshoring becomes unprofitable? Will these companies hold steadfast? I bet not. The US dollar is much weaker now. And what if it gets weaker? The profits get smaller. There is also a proposal to tax companies for jobs shipped overseas. And one more thing, 2012 is an election year in the US. Unemployment has been a thorny issue for President Barack Obama and the Democrats. One way or another, they will try to make companies bring home the jobs.
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