Factory plus BPO equals gov’t perks

The government is offering strings of incentives to investors in the garments and textile sector who would put up their own business process outsourcing (BPO) operations.

Trade Assistant Secretary and appointed head of the Garments and Textile Industry Development Office Fe Agoncillo-Reyes said the measure will be implemented under the Supply Chain City that was a concept being promoted by the Philippine Economic Zone Authority to keep investments in the country.

Agoncillo-Reyes explained that many things are happening in the process of production including finance, accounting, booking and ordering which can be all done through BPOs in the country.

“It will be a combination of manufacturing plus non-voice services in one location where their manufacturing facilities are also located,” she added.

Most of the big garment factories are currently operating in Clark and is being supported by their own BPO outside of the country like in Hong Kong and Singapore.

“We are giving investors an option because they never thought we could combine manufacturing with BPO which is a combination of the twin strength of the Philippines.”

If the government could put into effect the program this year, the industry may be able to surpass last year’s export performance of $2.14 billion, based on preliminary data released by the National Statistics Office.

Compared to the situation of the industry from 2006 to 2007 when the US quota was lifted that resulted to job displacement and closures, the industry at present, according to Agoncillo-Reyes, have more muscles, tougher and leaner.

“Although I am not saying that it is fully immune of the global downturn, but not as massive as before.”

What the government would like to ask from these investors is to expand their businesses to get fiscal incentives. “Perhaps they could start with 30 seats.”

She has also discussed phase II of the program that would encourage factories based in China to do part of their operations in the Philippines since China has higher cost of doing business and stricter labor law. –Ayen Infante, Daily Tribune