Philippine call centres dismiss Obama proposal

The Washington Post writes.

The Business Processing Association of the Philippines (BPAP), which groups 250 companies, said outsourcing has allowed US companies to survive the global financial crunch by lowering costs and to expand - thereby creating more jobs for Americans.

The Philippines is the world's top supplier of call centre operators and is second to India in non-voice services such as accounting, engineering and medical billing. The US accounts for 70% of the Philippines' business outsourcing market.

Last week, Obama said he wants to eliminate tax breaks for companies that outsource, Sun Star says.

Martin Crisostomo, BPAP spokesman, said outsourcing is inseparable from globalisation and a business model that helps companies cut costs.

He said industry members are monitoring developments in the US, including proposed legislation in the US Congress, to discourage outsourcing jobs, but believes market forces will dictate the industry's future.