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Business Process Outsourcing: Its Effects on the Filipino College Students
Don’t get me all wrong, I am glad that these Business Process Outsourcing (BPO) companies have sprouted here in the Philippines and gave jobs even to those who did not finish college. I work for one. However, this has mislead college students so that they stop going to school and go to these companies who promise them a good future with a good salary. But the long term effects may not be as good as the present advantages. The educational system in the Philippines may seem shorter to those from the States and from Europe but it is far below the levels of their education. For example, we have preschools to teach the children to read and write and 6 years of grade school. You graduate from grade school at around 11 years old and proceed to high school for 4 years. Then you choose your college degree: either vocational or a real bachelor's degree. Here's the catch: The usual English, Filipino, Science, Maths, History and Arts are taught until high school but I just don't think that these students are prepared for work. And jobs here in the country – jobs that pay minimum wage – are offered ONLY to those who have finished College. Because if you compare the education we are getting here the equivalent to your high school graduate are the college graduates here! Even secretaries in offices need a college degree. Even where I work, they don't hire those who have not finished a four year course. The usual trend is that people who have not finished school (or just high school) become sales ladies, drivers and hired domestic helpers – they are paid around half the minimum wage! But then the call centers came. It was good that they hired people from all walks of life with at least one semester of college only. They don't care as long as you have a good command of English. And because Filipinos usually have that then a lot get hired. I do not think that this is negative because this has given those who could not afford the rather expensive college education to obtain a job. A lot of students are not interested to go to college anymore because of this event. So what is wrong with me being mad at this? One big major problem: eventuality. Right now call centers are booming and people are getting jobs. Yes, you did not have a degree and yet here you are receiving minimum wage – which is alright because you were not able to graduate anyway – happy thoughts. But in reality, this event may not be here forever. India is always outbidding Philippine companies because they bid insanely low on jobs and they know English. Of course, their English as far inferior that the Filipinos but the companies from Europe and USA do not care if they speak perfect English as long as they are cheap and can understand and be understood by customers. And we know that that is just alright. So, to whose disadvantage is this? Filipino BPOs. By the way, a BPO means business process outsourcing or jobs from foreign companies being done on countries who offer cheap labor and processing costs. A lot of companies are having a problem struggling with the competition from India. A good example? Well, let us just say that the minimum wage here in Dumaguete City is around Php 34 an hour or $0.78 per hour. India can bid as low as $0.5 or less an hour and get away with it because that amount can buy a lot when converted to their currency. However, in the Philippines even that $0.78 dollar will not buy much – only less than a kilo of rice (which is not enough for a family of 3 the whole day) or less than ¼ kilogram of meat (imagine that little!) or just a pack of corned beef. You see, even the dollar is converted to a lot of pe$o$, still the prices of commodities here are also high in terms of pesos. Gasoline is around Php 60 per liter or $1.4 and that will not even get you much even on the budget priced motorcycle! So what happens when India outbids the Philippines? Well, they get the jobs. Then what happens to call centers? They lay off people because the customers have gotten fewer. The next year the same thing happens, India outbids the Philippines. Employees are laid off again. And then again and again until the Philippine company stops the operation because costs are higher than the income generated. What happens to the employees? Well, they can always find another work, "Alright, I am a Chemist, Oh I will send an application to that new food processing company and I will most likely be hired". But the other scenario is "What? Oh, I will apply at the grocery store as shelf refiller, I hope they will hire me even if I haven't had college." This is a very good projection, really. I am not an economist but I see the trend. Even online jobs are being filled by people from India. I registered to this online job market placement called ODesk.com – you can check it out if you like. This place is good for those who want people to work for mostly computer-related jobs such as designing a program, or a website, or writing or data entry or hiring a virtual assistant – stuff like that. I was looking of some jobs that would allow me to write on my laptop and then send them to the clients. But in this site, you have to bid. You put in some amount you bid based on the client's assignment. For a writing job let's just say for example that their rate is $20 per hour (customer's declared rate). A writer from the US and from Europe bids $20 or higher or $18. Well, that is fair enough. A Filipino bids $10 or $5 – that is very high as per hour salary (see the usual $0.78 above). But the one from India bids at $3 and some at $1! The job that was worth $20 was given to the lowest bidder who will charge the client $1 for 1 hour of his time! The client will take on that writer's offer because it is cheap and the client can also edit that article for grammar errors as long as the initial material is worked upon. I have seen a lot of providers leave the site (I left too as there was no way I could get a job there as I had tried to bid countless times but was never approved – and I will never bid for $1 an hour on such a difficult job) with comments that you can never outbid Indians. It is a sad reality really. BPO companies may have brought revenues to the Filipino government and hot jobs for the people but it has also encouraged a culture of less educated youth.
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Contributor's Note
A Chemist, a Writer, a Copy Editor all rolled into one non-techie entity who is always willing to accept any constructive (and possibly destructive) criticism to help me improve and possibly become upgraded to "techie" status.
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sounds like quite a challenge
CONTRIBUTOR'S REPLY
Yes, it really is a great challenge.
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