Top BPO firm sees TRAIN 2 favoring countryside investments
Richmond Mercurio (The Philippine Star) – April 30, 2018 – 12:00am
MANILA, Philippines — A leading business process outsourcing company is hoping the final version of the second tax reform package will include “tweaks” that will make the countryside a more enticing destination for investments.
Sitel Philippines chief operating officer Craig Reines said while the firm is pleased with efforts of the current administration to decongest Metro Manila and promoting countryside development, incentives should be further beefed up to make companies invest in the countryside.
“In general, we’re extremely pleased with this administration’s drive to develop the countryside. We think that’s the future of the Philippines, especially for the BPO industry,” he said.
Reines said the proposed second tax reform package does not offer much motivation to attract countryside investments.
“Right now the corporate tax holiday is frankly the most interesting fiscal incentive for all of us because its worth a lot of money. But that’s all they’ve got, and they take it away. They need to enhance and tweak these other elements of incentives to make it interesting and better,” Reines said.
The Sitel official said the final outcome of TRAIN 2 would likely determine the BPO giant’s plans for the country next year.
He said Sitel has a brand new facility in Tarlac which will be launched in a couple of months, while another expansion project in Palawan is in the works.
Overtime, he said these new facilities would add between 3,000 to 6,000 people from its current workforce of 22,000.
“We’re extremely focused on countryside development so the big plan this year is to continue to identify those locations that have the right mix of infrastructure and people resources. This year is really about identifying those new markets,” he said.
Reines said Sitel has 13 locations in its list, all outside Metro Manila, including areas in Visayas and Mindanao.
“Of course, you have countries in other parts of the world that are desperately trying to motivate companies to invest there versus the Philippines. As a leader in my business, I have to look at all the options that are available and the best overall set of incentives that will motivate us for our next investment,” he said.
Reines added.
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