The second largest United States-based financial holding firm, Bank of America Corp or BA with global assets of $2.13 trillion has precisely outsourced its business support work to the Philippines by way of a recently developed non-bank subsidiary. A major backer of the successful BPO or business process outsourcing industry in the Philippines, House of Deputy Majority leader Roman Romulo discussed well of the American banking giant’s motivate to shift selected non-core business work to Manila.
Romulo said that the Philippines is one of the chosen location of the United States-based global corporations and has captured its position as the world’s fastest-growing outsourcing market when it comes to information technology-enabled services and labor-intensive. Romulo is also the vice-president of the House Committee on information and communication technology and he said that the BPO in the Philippines with BA as part of it will surely accomplish if not overtake its target to create $2 billion extra revenue this year and generate 126,000 new jobs.
The Bank of America, which is Charlotte, North Carolina-based is the last of the Big Four United States banks to shift business support services in the Philippines. Citigroup Inc which has $1.87 trillion in assets and $2.3 trillion in assets for JPMorgan Chase & Co have already back offices in Manila under Citigroup Business Process Solutions Pte. Ltd and JPMorgan Chase Bank N.A. Philippine Global Service Center.
Previously, Wells Fargo & Co that has $1.33 trillion in assets set up Wells Fargo Philippines Solutions Inc. Romulo is the author of the suggested Data Privacy Act that is assumed to more impulse outsourcing to Manila. The bill will sustain bi-cameral conference committee finishing touches before it is directed to Malacañang for the approval of President Noynoy Aquino, the bill passed by the Senate and the House.
To secure the confidentiality and integrity of any personal data collected from their clients in agreement with international privacy standards, the measure order private and public entities like the BPO company. BA has set up an entirely owned non-bank subsidiary, BA Continuum Philippines Inc to acquire the bank’s business support services in Manila. Within other services, the company will execute customer support, human resource management, business planning, technology services and back-office transactions.
By 2013, the BPO industry is arranged to fully appoint 1.3 million Filipino workers and to generate $25 billion in revenues. According to the Business Processing Association of the Philippines, in 2011 the sector established $11 billion in revenues with a workforce of 630,000. BA founded in 1904 and operates in over 40 regions and has more than 282,000 staff. It supports services in asset management, banking, investing and other risk management and financial services and products.
Bank of America’s decision to transfer jobs to Manila gives some anxiety in the Philippines because of the United States’ anti-outsourcing bill. The suggested United States Call Center and Consumer Protection Act declared by Tim Bishop, New York Representative which command the United States Department of Labor to capture companies that transfer call center jobs abroad. For five years, the company would then be not qualified for any indirect or direct US loan guarantees or federal loans.
REFERENCES:
http://www.intelassist.net/news/news-share.php?Type=outsource&NewsID=174
http://www.livingincebuforums.com/ipb/topic/49759-bank-of-america-outsources-services-to-phl/
http://technews.tmcnet.com/call-center-outsaourcing/topics/call-center-outsourcing/articles/290380-bank-americas-decision-shift-call-center-outsourcing-the.htm
http://www.congoo.com/news/addstorycomment.aspx?st=189557724&Channel_ID=5&Category_ID=90
