The Losing Power of the Pinoy Peso-- Again!

[Monseratto]

Exports will only succeed if the countries they are exported to are doing well. Most of those countries are doing rather badly. No Orders=No Business. Even China is having problems already because there are no more orders coming in.

After decades of solid economic growth, China is battling an unknown as falling demand for its products triggers factory closures, sparks protests and raises fears of popular unrest, seen by many analysts as the biggest threat to one-Party rule.

[uls]

wait till they gather next year's first quarter data

[Monseratto]

wait till they gather next year's first quarter data

:hang: :hang: :hang:

[tidus1203]

Looks like the world's PIG, the US consumer is KO already. No more bacon for the rest of the exporting world!

[Gen. Miting]

Ya no matter how cheap outsourcing to the Philippines will become, if the US companies are on the verge of bankruptcy, there's nothing to outsource

i dont buy the media news the big companies in the States will fold or will close down. when the US announced the bailout plan, everybody wants a piece of the pie. that's why kung reklamo/humble mode ka, baka mabigyan ka ng pie. kung mayabang/mayaman ka pa din, eh bakit ka bibigyan ng pie?
kumbaga that's the signs of the times, yan ang laro nila ngaun

kayo na din nagsasabi sa US dollar thread, the FED is doing all it can to appreciate the dollar.

if at P42 = $1, the us companies can afford to outsource, what more at P55 = $1. like i said, bpo's definition in wikipedia is only a fraction of an expense of a US outsourcer.

----

we should not always think that the US is what is seems to be right now. I see something brewing, and at the end, America will still be in the frontline of all of this.

other countries, pag nakaproblem sa economy or income vs. expense, like accounting it's either boom or bust. sa US pag nakaproblema sa economy, the govt. bails out the companies.

dito what do you think will the govt. do if BPI, Ayala, SM, Lucio Tan, San Miguel apply for bankruptry? certainly the govt. will not bail out the companies mentioned. why bec. the said companies are richer than the govt. our govt. instead will prepare for martial law ...

yun thinking that the end is near bec. of the indicators is only applicable here.

[uls]

kayo na din nagsasabi sa US dollar thread, the FED is doing all it can to appreciate the dollar.

we didnt say that

The Fed's intention is to provide liquidity to the banks so they will lend out money.

Dollar strength wasnt the intention.

It just so happened that aside from the US, the rest of the world's economy is in trouble, so US investors pulled out their investments from other countries (selling the local currencies and buying dollars).

That caused huge demand for dollars outside the US. Kaya humina ang mga ibang currencies against the USD.

The yen is the exception. Coz yen carry traders had to sell dollars and buy yen.

Getting back to BPO...

i don't assume things like:

if at P42 = $1, the us companies can afford to outsource, what more at P55 = $1

Your explanation on why the BPO industry will boom is entirely based on USD PHP exchange rate.

It's not about affordability.

It's about the US companies having enough business activity to outsource.

US consumers have cut back on spending.

US companies don't have as much business activity as before.... so there's less business to process.

well, maybe more business following up delinquent CC accounts.

keep in mind that the outsourcing boom we experienced here was the result of US economic expansion which was a result of US consumer spending...

which was a result of overborrowing and overspending by consumers and overlending by banks.

Now things have reversed.

Banks have tightened credit, consumers have cut back spending.

So i cannot see how our BPO industry can keep on expanding.

the BPO industry is entirely dependent on US business activity.

[Gen. Miting]

we didnt say that

The Fed's intention is to provide liquidity to the banks so they will lend out money.

Dollar strength wasnt the intention.

It just so happened that aside from the US, the rest of the world's economy is in trouble, so US investors pulled out their investments from other countries (selling the local currencies and buying dollars).

That caused huge demand for dollars outside the US. Kaya humina ang mga ibang currencies against the USD.

The yen is the exception. Coz yen carry traders had to sell dollars and buy yen.

Getting back to BPO...

i don't assume things like:


Your explanation on why the BPO industry will boom is entirely based on USD PHP exchange rate.

It's not about affordability.

It's about the US companies having enough business activity to outsource.

US consumers have cut back on spending.

US companies don't have as much business activity as before.... so there's less business to process.

well, maybe more business following up delinquent CC accounts.

keep in mind that the outsourcing boom we experienced here was the result of US economic expansion which was a result of US consumer spending...

which was a result of overborrowing and overspending by consumers and overlending by banks.

Now things have reversed.

Banks have tightened credit, consumers have cut back spending.

So i cannot see how our BPO industry can keep on expanding.

the BPO industry is entirely dependent on US business activity.

ok given that all grim things that you mentioned above will happen, dont you think US companies will tend to outsource more now?

business process outsourcing is now a proven business strategy be it expansion or downsizing. in expansion, you minimize cost and maximize profits by concentrating on the outsourcer's core business. in downsizing, you minimize cost <period>.

and now that our peso has devaluated against the dollar, hindi ba mas maging lucrative investment potential ang Pilipinas. if before a $10,000 (P42 = $1) investment can provide salary for 20 entry level bpo agent at P21K/mo. a $10,000 at P55 = $1, can hire 26 (or six more) entry level bpo agent at P21k.

===========

in contrast, if US companies pull out their outsourcing and go stateside and go local. dont you think it will be a more stupid move in the worsening global crisis situation? why bec they are literally going to pseudo-expansion mode, if they are going to rebuild or to start from scratch the jobs/dept. that they have been conveniently outsourcing.

[Monseratto]

ok given that all grim things that you mentioned above will happen, dont you think US companies will tend to outsource more now?

Just hope Citi survives these next few weeks...

Citigroup to expand workforce in RP

Outsourcing expansion seen creating 1,000 new jobs


WHILE AMERICAN financial giant Citigroup is streamlining across the globe, it expects to create about 1,000 new jobs and triple its workforce in the Philippines next year, picking the country as a regional hub for business process outsourcing (BPO).

"Citi is repositioning in Asia-Pacific but we remain focused on growth. As we review our operations and where we can be more efficient, something which we have been doing even before the downtrend in the global financial markets, we in the Philippines are optimistic that instead of reducing head count, we will be growing," Citibank country business manager Mark Jones said.

Jones said Citibank had a staff of about 500 in the country and would likely hire an additional 1,000 in the coming year as part of plans to build processing centers and expand its domestic banking business.

"We expect the Philippines to be a preferred location for regional hubs or center of excellence because of superior skilled workers and attractive labor costs," Jones said.

"From call centers to financial reporting and service centers, there's a whole lot of activity moving to the Philippines," he said.

http://business.inquirer.net/money/t...orkforce-in-RP

[uls]

ok given that all grim things that you mentioned above will happen, dont you think US companies will tend to outsource more now?

business process outsourcing is now a proven business strategy be it expansion or downsizing. in expansion, you minimize cost and maximize profits by concentrating on the outsourcer's core business. in downsizing, you minimize cost <period>.

and now that our peso has devaluated against the dollar, hindi ba mas maging lucrative investment potential ang Pilipinas. if before a $10,000 (P42 = $1) investment can provide salary for 20 entry level bpo agent at P21K/mo. a $10,000 at P55 = $1, can hire 26 (or six more) entry level bpo agent at P21k.

===========

in contrast, if US companies pull out their outsourcing and go stateside and go local. dont you think it will be a more stupid move in the worsening global crisis situation? why bec they are literally going to pseudo-expansion mode, if they are going to rebuild or to start from scratch the jobs/dept. that they have been conveniently outsourcing.

They have already outsourced everything that can be outsourced and they are still in trouble.

what is there left to outsource? Their core businesses?

if their business activity gets cut in half, they wouldnt have that much work to outsource.

cost cutting? reduce BPO expenses. that's cost cutting.

who said they will move outsourcing work back to the US?

There's no work to move back to the US. Business activity has vanished.

When times were good, you bought a mansion, and you need 10 household staff just to maintain the place...

then you fall into hard times, and move into a tiny apartment, and you no longer need the 10 staff

anyway, no point in arguing

it's all speculation

we'll see in the coming months

[tidus1203]

There has to be business activity to outsource. If there is no activity what is there to outsource? Obviously you can't outsource core activities but everything that can be outsourced like back office work and customer service via phone and email is already outsourced. You can't outsource the management or the production team or the marketing team....