Sensible Netnonsense

Philippines now experiencing layoffs--BPO industry still unfazed

Jan 29, 2009 11:44

It's been in the news for the past week... figures numbering in the thousands... that's how many people will be laid off from globally aligned companies and factories here in the Philippines due to the looming economic crisis. Just the other day, Intel announced the imminent closure of its factory in Cavite--a site amounting to approximately 1,800 Filipino workers. Sadly, more IT-related companies will be expected to follow suit.

In the article from ABS-CBN News:

Intel Corp, the world's largest maker of microprocessors, announced Thursday that it is closing its manufacturing plant in General Trias,
Cavite and offer severance packages to 1,800 employees.

Intel said the company will be closing two assembly test facilities in Penang, Malaysia, as well as its only remaining factory in Silicon
Valley, cutting as many as 6,000 jobs.

Considering that a big population of our graduating students are in the IT field (based on the increase in enrollment of computer schools, etc., year after year), it seems we're going to have another batch of overqualified graduates for less demanding jobs... like call center agents.

Don't get me wrong... Not to belittle the call center and BPO industry (because being familiar with the industry, I know firsthand how demanding this industry can be). But a large chunk of the BPOs I am closely familiar with actually hire candidates even if they aren't degree holders. That's not really a bad thing, mind you, as it offers opportunities for everyone. But with this worldwide crisis one starts to wonder where our next batch of graduates will end up in.

So for now, especially from what I've heard through the grapevine, the BPO industry, call centers and whatnots are a stable option for employment opportunity. Take the BPO in Makati--it actually needed to fill out hundreds more seats just to occupy the space left by the company as it laid off the same number of employees in its US operations. Seeing as how labor is cheaper here, I guess the firm decided that instead of losing business, let's just cut overheads and hire a cheaper workforce.

Sad but true. It just so happens our country was on the benefitting end.

In the end, it's a mix of the good and the bad. True, we're losing jobs, not just here but globally. But because of the strength of the BPO industry here, all is not lost for our workforce and graduates. Which is why there is an even greater and newfound respect for our friends and fellow Filipinos who work those odd hours, glued to a seat and a headset...

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