Local firms unfazed by new UK policies
PHILIPPINE-BASED merchandise and service exporters remain upbeat over the United Kingdom market even as the new government there has announced plans to cut state spending and protect British jobs.
Opportunities to supply the UK with Philippine-made products remain, an industry group leader claimed, especially with the upcoming London Olympics. The new employment policy direction, meanwhile, is unlikely to deter British companies from outsourcing work to the Philippines, another industry official said.
This comes as the new coalition government — shared by the Conservatives and Liberal Democrat parties — last week released its policy direction which included, among others, plans to tackle the deficit via “reduced spending rather than increased taxes”.
“[H]owever conservative the new prime minister is, I don’t think they will cut the budget for the 2012 Olympics after China hosted [in 2008],” Philippine Exporters Confederation President Sergio R. Ortiz-Luis, Jr. said in a telephone interview.
Exporters had earlier been advised to look into the UK market as preparations for the Olympics could offer procurement opportunities. The sports event was said to have piqued interest in the UK, a non-traditional market which last year accounted for less than 1% of the Philippines’ $31.311-billion worth of exports as of September last year, latest central bank data show.
This year, the public-private sector Export Development Council expects the Philippines’ total export sales to grow by 16% after a 21.9% decline to $38.327 billion in 2009.
The local business process outsourcing (BPO) industry likewise expressed optimism over prospects in the UK even as the new government signaled a protectionist slant by planning to cap the number of non-EU worker admissions.
“I would assume that they would continue with status quo wherein they leave it up to corporations to define what their strategies are,” Business Processing Association of the Philippines director Danilo L. Reyes said in a telephone interview.
“Sales growth will continue as long as we provide quality service. I don’t think the immigration cap will be an issue.”
The industry group is targeting a faster 32% growth this year in sales to all markets.
“The Labor party, which has in been power for more than 10 years [before stepping down this year], should have been more protective. But by and large, we’ve seen over the last several years that the outsourcing industry in the UK has enjoyed less protectionist policies,” Mr. Reyes added.
The UK is a “significant” market for the local BPO industry as it is an English-speaking nation, he said without elaborating.
The Philippines in 2007 was voted as “Best Offshoring Destination” by the UK’s National Outourcing Association. Back then, it was estimated that clients based there represented a fifth of the world market.
