An end to call centers may cause job loss in RP

Call centers in countries like the Philippines has provided thousands of jobs for Filipino workers.

But, if a US senator has his way, the Philippines and other countries may bear the brunt of a proposed law to tax US companies who have overseas call centers.

New York Senate Democrat Charles Schumer wants American companies to pay a penalty for outsourcing customer service calls to countries such as the Philippines, where labor costs are cheaper.

Last Sunday, Schumer announced a proposed bill that would impose a 25 cent excise tax for every customer service call placed in the US which is then transferred to a call center in another country.

An official of the contact center associate of the Philippines says, if this bill is passed, it could force American companies to stop outsourcing their call centers.

Right now, outsourcing saves US companies about 30% of operational costs.

But customers complain that outsourced call centers tend to give scripted answers, and don’t help much to resolve their problems.

It’s estimated that about 12% of the Philippines gross domestic product relies on the call center industry.

The Philippines is one of the top destinations for call center outsourcing. Balitang America