I agree that there is a great need to work on solutions regarding the points highlighted in the investor marketing video by Aegis. But as an offshore industry insider myself, there is a more nuanced understanding of the background behind Aegis moving to Malaysia before anyone throws in knee jerk reactions on any side of the argument.
Note that as of late 2013, Essar Group (the Indian-controlled holding company of Aegis) has been slowly divesting and offloading its shares in order to streamline core investments. Their Aegis US-based markets (which is offshored to the Philippines and Costa Rica) has not been performing well as much of Aegis concentration is within the Indian domestic markets. They lost 200 million in USD revenues in a span of 2 years. What compounds this is that other BPO players catering to the US markets are making more revenue than Aegis. There is also this growing trend of consolidation & buyouts by large BPO players in the Philippines.(Convergys which acquired Stream which acquired the Ayala-owned Etelecare; Sykes acquiring ICT; Synnex acquiring Concentrix & IBM; Telus acquired Ambergris, all these within the last 4 years. Do note that these companies have an employee headcount of more than 5k prior to them acquiring the centers mentioned.)
PeopleSupport, as Aegis Philippines was formerly known, was a Delaware based company that had offshore centers in the US, Philippines and Costa Rica. PeopleSupport was bought by Aegis in 2008. As of 2013, Aegis' profit margins are lower than its industry peer averages as it has always had a poor vendor ranking amongst client-company outsourcers due to prevalence of fraud, penalties and inability to grow existing portfolios and thereby losing contracts to competitors. Not to mention, NLRC mediated labor cases that Aegis lost due to bad labor practices.
Last Aug 2014, Teleperformance (based in France and with Philippine centers employing more than 35k employees within 16 sites in the Philippines) acquired Aegis US, Philippines and Costa Rica. Aegis as part of the Essar Group continues to maintain its centers in India, Malaysia, Sri Lanka, South Africa and some Latin American countries.
Industry insiders do believe that the ease of doing business here in the Philippines needs massive improvement as well as our telco infrastructure. However, in order to facilitate growing foreign investments, the country needs to primarily review FINL (Foreign Investment Negative List) controls and regulations currently in place. This is more a low-hanging fruit than having to change the law (which move like molasses in this country).
However, the Aegis investor video (mind you, it's not a public ad, but an investor ad) was deployed in bad form. It connoted sour-graping and was released after the TP deal was finalized this August.
Also, note that as part of the BPO/KPO/IT-BPM industry, Aegis Philippines applied for PEZA/BOI tax exemption & was granted certification & BOI pioneer status without having to show the necessary 60-40 stakeholder requirements. It also benefited from certain tax holidays, labor tax exemptions, and waived import-export duties and regulations for 6 years since 2008. However, Aegis filed a case against the BIR last 2012 as a counter suit to BIR's official notice to make them pay the correct taxes. Aegis misdeclared taxable earnings for 2007 and was seeking for the government to refund them 66M Php (Yes, it is actually 66,717,803.87 pesos). The Court of Tax Appeals denied Aegis' claims in a decision penned last June 2012.
In as much as i understand Aegis investor sentiments about the Philippines, it does connote a degree of sourgraping and in large part, their business handling…in comparison with the larger players in the industry who continue to prosper despite these bottlenecks.
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