Philippine Economy Talk

**stayhungry** · March 8th, 2018 07:49 AM

I remember chatting up a couple of BPO execs during the campaign season who said their respective companies will think of moving out if digong wins. They also said they will leave the country.

Closing in on 2 years now, they're still here. They also opened up more sites. And they haven't mentioned leaving in that time span.

*shrug* just calling it as I see it

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Stay hungry. Stay humble.

**chronicle** · March 8th, 2018 08:05 AM

^
That might change if the peza benefits will be removed on the next train tax law.

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**dreamur** · March 8th, 2018 09:38 AM

Originally Posted by stayhungry

I remember chatting up a couple of BPO execs during the campaign season who said their respective companies will think of moving out if digong wins. They also said they will leave the country.

Closing in on 2 years now, they're still here. They also opened up more sites. And they haven't mentioned leaving in that time span.

*shrug* just calling it as I see it

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Stay hungry. Stay humble.

Originally Posted by chronicle

^
That might change if the peza benefits will be removed on the next train tax law.

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TRAIN2 is up for approval which could cost the PEZA companies an additional tax of 50% to 200%, depending on the typenof operations. There is also the possibility of the VAT to be levied on these companies and that is added administration and man-hours to the company, plus there is low probability of refund. Most BPOs enter a lease of 5 years and SLAs at an average of 2 years. Executives do not bluff when it comes to strategic planning. 1 example is Intel. Companies will cut back on cost and discretionary benefits if they choose not to move their operations elsewhere. Not trying to be a doomsayer but it will be the low level employees who will suffer.

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**shadow** · March 8th, 2018 09:42 AM

I'm thinking because they still have contractual obligation with their existing clients Kaya hinde pa sila maka move out. But question is are there any new clients na gusto dito sa PH ilagay yun process nila?

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**A121** · March 8th, 2018 09:59 AM

Originally Posted by stayhungry

I remember chatting up a couple of BPO execs during the campaign season who said their respective companies will think of moving out if digong wins. They also said they will leave the country.

Closing in on 2 years now, they're still here. They also opened up more sites. And they haven't mentioned leaving in that time span.

*shrug* just calling it as I see it

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Stay hungry. Stay humble.

I think we are still cheaper than having to have the business move back to say HK, SG or even migrate the process to India.

Ang susunod na lang na tanong is if our labor pool can bring in high value processes.

**dreamur** · March 8th, 2018 09:59 AM

Originally Posted by shadow

I'm thinking because they still have contractual obligation with their existing clients Kaya hinde pa sila maka move out. But question is are there any new clients na gusto dito sa PH ilagay yun process nila?

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Spot on...

Too short

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**dreamur** · March 8th, 2018 10:01 AM

Originally Posted by A121

I think we are still cheaper than having to have the business move back to say HK, SG or even migrate the process to India.

Ang susunod na lang na tanong is if our labor pool can bring in high value processes.

2 countries come to mind - Vietnam and Indonesia.

India is already siphoning tbe IT support.

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**chronicle** · March 8th, 2018 10:31 AM

Originally Posted by shadow

I'm thinking because they still have contractual obligation with their existing clients Kaya hinde pa sila maka move out. But question is are there any new clients na gusto dito sa PH ilagay yun process nila?

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Add to that the initial investment. Building lease for x years. If the exodus will happen, it would probably be done by increments where no one will notice it.

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**stayhungry** · March 8th, 2018 10:44 AM

Originally Posted by chronicle

Add to that the initial investment. Building lease for x years. If the exodus will happen, it would probably be done by increments where no one will notice it.

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Maybe by the time the lease is up, the term of digong will be about done too then they'll share a couple more beers with me and they'd have to wait and see again who will be the new face in the chair

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Oooooor he stays in power indefinitely assuming we adopt a parliamentary Fed form of government.

Either way, BPOs will make a decision on what makes business sense to them. Even if policies or decisions or speeches hit them, if the bottom line here is still greener than anywhere else in the world, I'm thinking they stay.

It's all about the money. It's all about the dum dum dee dee dum dum.

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Stay hungry. Stay humble.