How the US government shutdown can affect BPO in the Philippines

How the US government shutdown can affect BPO in the Philippines

OABPO Blog Team Published on October 3, 2013
BPO-in-the-Philippines

The US government has shut down after the Congress failed to agree on a new budget. Authorities have different takes on its effect on the BPO industry in the Philippines.

How the shutdown happened

According to BBC, the US government shut down its nonessential services after the two houses in Congress failed to agree on the budget for the 2013-2014 fiscal year.

The deadline for budget approval, set on the midnight of September 30, has already passed. The first in 17 years, the shutdown is a result of a political standoff between Republicans, who want to delay the nation’s healthcare law as a condition of passing the funding bill, and President Barrack Obama and the Democrats, who refused such demands.

Thereafter, 800,000 federal employees were furloughed for an indefinite period. Monuments and national parks were closed, and so did most operations of agencies including Environmental Protection Agency and NASA. Moody’s Analytics economist Brian Kessler estimated that a three- to four-week shutdown could cost the US $55 billion.

How it affects the BPO industry in the Philippines

In an interview with ABS-CBN, IT and Business Processing Association of the Philippines (IBPAP) President Jose Mari Mercado said that the BPO sector may be affected by the shutdown. Mercado said that the call center and IT healthcare sectors may experience reduced volumes of transactions, which could eventually diminish their revenues.

However, he also said that it was too early to make conclusions. He also expressed confidence that the matters can be resolved soon. “It will be fixed in a week’s time. They cannot afford to remain shut down for a long time,” he said. Mercado also said that the expected surge in call volume in November, as holiday approaches, can cover the impact of the US shutdown. On the other hand, American Chamber of Commerce President Rhicke Jennings has a slightly different sentiment.

In an email interview with The Inquirer, Jennings said that the BPO industry in the Philippines is not likely to be affected. US business will continue to need the services of the BPO industry here in the Philippines as US commerce will continue to operate normally, he said in the email. Despite the ripple effects, The Guardian said there’s no need to panic, as investors calculated that this shutdown will be short.

Open Access BPO is a Philippine-based call center company that offers various outsourcing solutions, including non-voice, voice-based, and back office services.

Leave a Reply

JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO18 minutes ago
#CallCenter leaders play a central role in helping campaigns grow. Team leaders especially are responsible for the progress and the quality of service that #CustomerSupport agents provide the brand's customers.

Here are the 5 biggest enemies of great leadership (and a few tips on how to be a good leader): https://buff.ly/3M5iMC0

Find great call center agents and team leaders to manage your brand's growth when you partner with Open Access BPO: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO19 hours ago
Personalized solutions empower brands to provide high-quality support to their customers and their growing needs.
With the help of a capable #CallCenter, you can be sure these areas are being covered: https://buff.ly/3sCjnTS

----------
Build your hyper-customizable #CustomerSupport, #BackOffice, or knowledge-based support program with Open Access BPO: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerSupport
Open Access BPO
Open Access BPO1 day ago
With multilingual support comes multiple business growth opportunities. The best way to get aboard the globalization train is to partner with a multilingual #CallCenter: https://buff.ly/3Mmfkms

----------
Open Access BPO's services support over 30 languages. Contact us today: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#MultilingualCallCenter
Open Access BPO
Open Access BPO3 days ago
It’s Data Privacy Awareness Month at Open Access BPO!
For our first Weekend Link Roundup, we’re featuring posts about #DataSecurity and #InformationSecurity best practices: https://buff.ly/3weIWMU

Is Data Safe From Security-Related Outsourcing Issues?
https://buff.ly/38tH5uD

Best Practices to Boost Data Security in Call Centers
https://buff.ly/3sAEsya

Educating Your Customers About Information Security
https://buff.ly/3sAEsya

The Worst Threat to Business Data Security: Employees
https://buff.ly/38lgjF3

Deflecting Insider Threats to Data Security
https://buff.ly/3yC5mt5

How Open Access BPO Future-Proofs Your Offshore Operations
https://buff.ly/3wmGuEx

----------
Learn more about smart, secure, and scalable #outsourcing over at OpenAccessBPO.com

#WeSpeakYourLanguage
#DataPrivacy
Open Access BPO
Open Access BPO4 days ago
Having a branded #CustomerService strategy sets your business apart from others, helping grow your customers base and enhancing #CustomerExperience.

Here's how you can develop a branded customer service strategy: https://buff.ly/3L7FrMz

----------
Outsource #CustomerDelight without losing your #BrandIdentity: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerSupport #branding
Open Access BPO
Open Access BPO4 days ago
As more brands grow their digital products and services over digital platforms, it’s critical to educate customers about cyberattacks and information security.
Here’s what you need to keep in mind when doing so: https://buff.ly/3M5rKz7

----------
Partner with an #outsourcing vendor with robust #DataSecurity strategies: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#InfoSec #CyberSecurity #PrivacyAwareness
Open Access BPO