News : Status Quo on Perks Sought for BPOs
#contactcenterworld, @ccapph, @bpaphilippines
Manila, Philippines, Aug 4, 2016 -- The Contact Center Association of the Philippines (CCAP), whose members currently account for close to 70 percent of the information technology-business process outsourcing (IT-BPO) business in the Philippines, wants status quo on the incentives granted to the industry to ensure the country’s reputation as the preferred outsourcing destination.
CCAP wants clear direction from government as it hopes to attract some 100 companies – a combination of clients, outsourcing firms with global presence – to come to the Philippines and explore business opportunities when the group holds next month the 11th International Contact Center Conference and Expo (ICCCE).
Benedict Hernandez, president of CCAP and chairman of the Information Technology and Business Processing Association of the Philippines (IBPAP), told reporters the planned revamp in the corporate income tax and the consequent review of the current incentive regime would impact on the industry, which now enjoys a preferential tax rate of 5 percent on gross income earned if a firm is registered with the Philippine Economic Zone Authority (PEZA).
GO FOR GOLD AND REPRESENT YOUR NATION!
The 2018 13th annual Top Ranking Performers Global Awards are open until 31st Dec 2017
Awards for all levels of staff and a fantastic range of corporate awards for contact centers! Click on the banner for details!
Hernandez said CCAP and IBPAP want to have closer dialogues with government officials such as the Department of Finance, which intends to find additional revenues in exchange for lowering both corporate and income tax rates.
At the same time, Hernandez sees the need for a comparative study on a lower corporate income tax rate, say at 25 percent on net income against what PEZA-registered BPOs enjoy at present.
Hernandez said taxation is a key cost consideration by global companies in their choice of sites, which is an advantage that the Philippines currently has.
He added the Philippines’ incentive package for the IT-BPM sector is even less attractive than Malaysia, which in recent years has been beefing up its own outsourcing sector. To make up for the higher cost in Malaysia, its government also provides free space to outsourcing firms.
Hernandez noted the contact center industry has in recent years been less dependent on the United States as a source of investments and clients. Whereas before the market of the call centers was 100 percent for the US, this has shrunk to 70 percent.
He said Australia has been the fastest growing market for the Philippine call center industry since it started doing business five years ago. Europe is also a strong market.
More recently, even Singapore and Hong Kong companies outsource some of their jobs in the Philippines.
The industry targets to hit $16 billion revenues this year.
All told, CCAP employs about 800,000 out of the 1.2 million workers in the IT-BPO sector.
#contactcenterworld, @ccapph, @bpaphilippines
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - Ask For Ideas
More Editorial From Contact Center Association Of The Philippines
About Contact Center Association Of The Philippines:
The Contact Center Association of the Philippines (CCAP) is the official organization of outsource contact center service providers in the country.
About Information Technology and Business Process Association of the Philippines:
BPAP is the umbrella association for the IT-BPO and GIC (Global In-House Center) industry in the Philippines. BPAP serves as the one-stop information and advocacy gateway for the industry.
Published: Thursday, August 4, 2016
Genesys® powers 25 billion of the world’s best customer experiences each year. Our success comes from connecting employee and customer conversations on any channel, every day. Over 10,000 companies in...
Atento is one of the largest employers in Brazil, recognized in the country and the world as one of the Best Workplaces by the Great Place to Work Institute. The company has operations in six major Br...
As caring for customers becomes the differentiator that drives consumer spend, Sitel is advancing its position as a world leader in outsourced customer care innovation. With 30 years of industry exper...
Sutherland Global Services is a multinational IT Enabled and Business Process Outsourcing (BPO) company, specializing in Integrated BPO solutions across Customer Lifecycle and Back-office Lifecycle Ma...