Assistant Majority Leader and vice chairman of the House Committee on Higher and Technical Education, Cebu Rep. Gerald Anthony Gullas Jr. claims the business process outsourcing (BPO) industry will benefit from the peso’s record devaluation in over three years, trading at pesos 45 to a dollar on Friday. This is so because BPO companies are paid in U.S. dollars, but their expenses (wages, rental, utilities bills, etc.) are priced and paid in pesos. Thus, outsourcing providers have more funds to grow their business and hire more full-time employees (FTEs).
Gullas recently authored a bill to have English reinstated as the country’s medium of instruction in all levels. The bill will help the multibillion dollar industry as it will create a large English-proficient work force. It’s projected that the outsourcing industry will employ around 1.3 million, and earn US27 billion annually by 2016.
Gullas’s home province has 25 IT parks with 12 more in development, most of them new BPO firms. He says that BPOs in Cebu and Negros Oriental now employ over 100,000 FTEs and generated revenues of USD516 million in 2012.
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