US Dollar Exchange Rate hurting Operations

While the improving US Dollar rate vis a vis the Philippine peso may bode well for other sectors of Philippine Industry, it is starting to hurt the export sectors. In particular, our business process outsourcing and call center side is now earning LESS due to the lower exchange rate.

For as a BPO and a call center, not only do we have to contend with declining margins brought about by competitive pressures in the worldwide BPO and Call Center skills market; not only do we compete with other call centers for higher quality and skilled agents and their resulting higher wages and compensation; but now the declining US dollar is making us less competitive. For to survive, we need to charge a higher dollar rate. However, competitors in other countries are even lowering their dollar denominate prices!

The previous rate of 56:1 is now down to 45:1. This represents a massive drop in revenues of almost 20%. I hope the government takes a serious look into this. The appreciating peso makes our industry less competitive on a worldwide scale.

Our partners have also heard rumors that the rate will drop further to 40:1.