America’s fourth-largest bank by assets has started to transfer some of its non-core, business support activities to the Philippines in spite of the US anti-outsourcing bill. President of Labor Group Trade Union Congress of the Philippines, Senator Ernasto Herrera, wells Fargo has recently established a Philippine solutions center, reinforcing Manila’s reputation as a global hub for labor-intensive and IT-enabled outsourcing services.
Herrara said that they welcome Wells Fargo’s launch of an in-house business support center in Manila, following the footstep of JP Morgan Chase & Co. and Citigroup Inc. They are counting on Wells Fargo’s new center to help provide gainful employment to their college-educated, fluent English-speaking professionals, most of whom remain idle.
Wells Fargo Philippine Solutions Inc. deals with a variety of functions including customer service and back office support. The American bank’s decision to shift more jobs offshore comes amid worries over a US anti-outsourcing bill.
The New York Representative Tim Bishop introduced proposed US Call Center and Consumer Protection Act would require the US Department of Labor to track firms that shift contact center jobs overseas. For five years, the firms would then be ineligible for any direct or indirect US federal loan guarantees for five years. The bill would also require contact center staff to disclose their location to US consumers, US consumers that would be given the right to be routed to a US-based call hub upon request.
Ernesto Herrara does not expect the US Congress to pass the bill, which he said is being opposed by American corporations that are benefiting from outsourcing. The Philippine Business Process Outsourcing industry sees its revenues jumping 18% to $13 billion, the industry revenues reached $11 billion in the year 2011. He said about the projected incremental revenues of $2 billion that the industry ,could create around 126,000 new jobs.
REFERENCE:
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