The Philippines is “the place to be” for business process outsourcing (BPO) and the industry should not worry so much about the US recession, an economist said.

Former socio-economic planning secretary Felipe Medalla told a gathering of call center stakeholders on Wednesday that the BPO industry is “recession-proof” because of its cost-advantages such as low wages and improved productivity.

Medalla gave the outlook on the industry and the Philippine economy in the short- and long-term during the second and last day of the fourth annual conference of the Call Center Association of the Philippines, an industry association with 39 member companies out of an estimated 200 operators in the country.

He said the peso hovering at an average of P44-48 to the green buck should not be a deep concern for BPOs whose contracts are usually pegged in US dollars.

Fluctuations in the foreign exchange rate are largely driven by higher import prices, Medalla added.

He said the independence of the Philippine central bank in setting monetary policies is helping the local economy weather the impact of external shocks including the US recession and rising prices of almost everything from oil to steel and coal.

The Bangko Sentral ng Pilipinas on Wednesday hinted of another possible rate hike to ease inflationary pressures.

BPO executives in the forum said outsourcing firms undertake mitigating measures such as hedging and implementing other cost-efficiency measures to sustain the growth of the industry.

Source: GMANews.TV