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Home | Blog | PH Lawmakers Assert Outsource Call Centers Can Mitigate Impacts of POGO Ban

PH Lawmakers Assert Outsource Call Centers Can Mitigate Impacts of POGO Ban

By Lorraine O.

Updated on August 9, 2024

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The POGO issue has been the talk of the town for quite some time now, and recent developments have brought this controversial issue to a critical turning point. One of the most significant impacts of the POGO ban will be on the estimated 40,000 Filipino workers employed in the industry. This move marks a turning point in the country’s approach to offshore gaming and raises important questions about economic policy and workforce transitions.

The decisive action to shut down POGO operations due to their ties to illegal activities—human trafficking, tax evasions, crimes—and negative social impact is a harsh blow to the economy. But where there’s a challenge, there’s opportunity. Lawmakers are considering expanding the call center industry to address the job losses and economic impact. They see this as creating new job opportunities for those affected by the POGO ban.

By focusing on this industry, lawmakers hope to attract more international clients and boost the country’s economy. This shift aims to replace the revenue lost from POGOs while providing Filipino workers a more stable and legal employment option.

Call Center Outsourcing as a Viable Alternative

The Philippines has long been a global leader in providing call center outsourcing services and is known for its skilled and English-proficient outsourced agents. By doubling down on this industry and significantly boosting the country’s economy, lawmakers hope to attract more international clients.

To promote call center outsourcing services and mitigate the impacts of the POGO ban, the government can play a crucial role in several areas:

1. Infrastructure Development

To support the growth of the call center industry, the government will need to invest in improving the country’s telecommunications infrastructure. This includes ensuring reliable internet connections and power supply across the country.

2. Training and Education

While the Philippines already has a skilled workforce, additional training programs, such as specialized tech support training or language courses, may be needed to prepare workers for specific roles in the call center industry.

3. Attracting International Clients

The government and private sector must collaborate to promote the Philippines as a top destination for outsourcing customer service and other technology-related tasks. This may involve marketing campaigns and participation in international business events.

4. Regulatory Framework

Lawmakers will need to review and update existing regulations to ensure they support the growth of the call center industry while protecting workers’ rights and maintaining high service standards.

5. Technology Adoption

To remain competitive globally, Philippine call centers must adopt the latest technologies, such as artificial intelligence and automation tools. This may require government support and incentives for businesses to invest in new technologies.

6. Economic Incentives

The government may consider offering tax incentives or other benefits to companies that outsource their call center operations to the Philippines. By attracting more international clients to outsource call center operations to the Philippines, the country can create additional job opportunities and increase revenue, helping to offset the economic impacts of the POGO ban.

POGO Ban

Transition Challenges for Former POGO Workers

Former POGO employees considering venturing into BPO roles, such as becoming call center agents, may face several challenges in transitioning. These difficulties stem from differences in required skills, work culture, and industry standards.

1. Language Proficiency

Many POGO operations cater to Chinese-speaking clients, while the call center industry primarily requires English proficiency. Former POGO workers may need intensive English language training to meet the communication standards expected in international call centers.

2. Technical Skills Gap

Call center work often involves using specific software, customer relationship management (CRM) systems, and troubleshooting techniques. POGO employees might need more technical skills, necessitating comprehensive training programs.

3. Customer Service Orientation

Unlike POGOs, which focus on gaming operations, call centers require strong customer service skills to boost customer relationships. Adapting to a customer-centric mindset may be challenging for some former POGO workers.

4. Work Schedule Adjustments

Call centers often operate 24/7 to serve international clients across different time zones. Former POGO employees may need to adapt to shifting schedules or night shifts, which can be a significant lifestyle change.

5. Compliance and Ethical Standards

The BPO industry operates under strict compliance and ethical guidelines. Former POGO workers will need to adjust to these standards, particularly given the controversial nature of their previous industry.

6. Salary Expectations

POGOs were known for offering high salaries. Call center wages, while competitive, may not match previous POGO compensation levels, potentially leading to financial adjustments for transitioning workers.

7. Psychological and Social Stigma

Given the negative associations with POGOs, transitioning workers might face stigma or discrimination, requiring support in building confidence and integrating into their new work environment.

A collaborative effort between the government, the BPO industry, and educational institutions will be crucial to addressing these challenges. Targeted training programs, counseling services, and transition assistance can help smooth the path for former POGO workers entering the call center industry, thus mitigating one of the key impacts of the POGO ban.

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Contact Magellan Solutions now to explore how we can help your business through efficient outsourcing solutions or assist you in finding the perfect path. Together, we can grow in the BPO industry and contribute to the Philippines’ economy.

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