The Analogy of BPO and Sugar Industry in the Philippines

Nope, we’re not talking about labour abuses here in my essay but perhaps just my perspective and analysis of how the country’s sunshine industry, business process outsourcing (or BPO) is similar to that of then sunshine industry of sugar industry of the country.

Okay, I’d rather be specific on BPO. Call Center perhaps since this is the industry that I’m more familiar with. First things first, work on a graveyard shift (most clients are US clients), worked well, pampered by perks well, have a lifestyle and in the end feed your caprices and help your family too. This is how call center agent works. Take calls serving customers oceans away. They work because it gives big compensation…as compared to the usual day job here in the Philippines. They usually go with their jackets and Starbucks mugs on their hand and face the computer about 8 hours at least, resolving or selling what is for the customer in the already unemployed United States.

While the US suffers unemployment, outsourcing countries such as Philippines and India have increased the number employment. Why? Its cheaper here. Rather paying an American for the same service for about $1000 per month, why don’t the companies pay at least $200 per month to a call center agent here in our country or at India? They maximize profits, they minimize operation expenses. The beauty of outsourcing.

The sacadas on the other hand are migrant workers coming mostly from impoverished areas of Panay and Cebu hired by rich hacenderos to cut, tend and plant sugar cane in the vast fields of Negros. During the early 20th Century, this was the equivalent of BPOs in the country, it gave rise to the import of sugar industry and banking in the Philippines. As the colony’s major cash crop, it’s raking in money because if I’m not mistaken, sugar was expensive to produce in the United States, therefore it was somehow “outsourced” to cheaper sugacane plantations of the Philippines for their demand.

Now do you see the picture? There is somehow a similarity to the BPO of today and sugar cane of yesterday. Both are profit-earners, both are job-creators, both somewhat “outsourced.”

While services are outsourced today, back then it was the demand for sugar that drove the sugar industry to soaring heights, even creating a powerful political bloc that was even a threat to the dictator in the mid-20th Century. 

Sacadas tilled the land all day, call center agents take calls by night. Both are under immense stress, both also have the same perks. I dunno about it but some say that during the height of the sugar industry, sacadas are privelaged ones…they have perks of food, payment and shelter…something that they do not have in their hometown…but that may depend on what hacienda or sugar central they work…that was then…I need to have an intense research on this yet.

While sacadas have the perks, call center agents have one too. HMOs, discounts and virtually almost everything in this capitalist material world would be provided. This is to boost morale and motivate the call center agents to work despite the stress that they encounter every other night. 

Now, cabos or middlemen reminds me of Human Resource Recruitment Departments of the call centers. Primary aim, hire sacadas from “resource pools” of different markets who are willing to toil the soil for sugar for the money that they need to earn a living. Today, almost unceasing hirings of call center agents for the unemployed, fresh grads and anyone who can speak and understand English is the main goal of HR Recruitment. Both cabo and HR may also have the tendency to be blind on who they recruit as long as the demand is met. You have sickly sacadas while you have short-tempered call center agents. Both of them doesn’t fit the jigsaw puzzle that the clients need…therefore resulting also to fast turn-overs of both industries. For the former, either they go back to their hometowns OR stayed. The latter states the same.

And history as they say repeats itself. The tarrifs that were imposed by the United States in the 2nd quarter of the 20th century drastically affected the sugar industry to say at least reduce the earnings of the Philippine sugar industry. Today, facing the daunting economic crisis that has hit the world, almost the similar time as it was during the Great Depression, the Obama administration is imposing to tax double the American companies outsourcing. There may be an impact to the industry here in the Philippines but it hasn’t made a profound effect as of this writing. So, both industries are tested by fire and pressure from United States.

Anyway, as I was saying before, this analogy needs some deeper analysis and research so this is post is not “be all, do all.” Perhaps a deeper understanding about its nature and research more on its impact in both the country and the individual’s psyche. 

The sunshine industries of BPO and sugar industry did and still carrying the Philippines into heights that brought employment to the vast majority of the people. The question is, would BPO also suffer the same fate as the sugar industry like what happened in the late 20th Century? Perhaps, only time can tell.