Philippines, India rally against U.S. call center restrictions

MANILA, PHILIPPINES — The United States is advancing a cluster of policy proposals that would directly constrain offshore call center operations and both the Philippines and India are mounting coordinated responses to protect industries worth a combined $97 billion in annual revenue, The Star reports.
FCC proposal and H-1B cuts target offshore delivery model simultaneously
The FCC’s call center proposal would require service providers to disclose call centre location to callers and mandate American Standard English proficiency and appropriate training, measures that would raise compliance costs and client visibility pressure on offshore operators regardless of service quality.
The simultaneous advancement of the End H-1B Visa Abuse Act of 2026, the FCC proposal, and the Department of Labor prevailing wage rule creates a compound policy risk for offshore BPO operators: each measure alone is manageable, but together they reframe offshore delivery as a compliance liability rather than a strategic choice.
The Philippines’ House of Representatives adopted a resolution urging the Department of Trade and Industry and Department of Foreign Affairs to engage U.S. lawmakers and seek exemptions, while Ambassador Jose Manuel Romualdez stated Manila is ‘working with lawmakers and industry stakeholders to seek exemptions’ from the FCC’s proposed requirements.
“We are aware of the potential implications on legitimate offshore operations and globally integrated delivery models,” said Jack Madrid, President and CEO, IT and Business Process Association of the Philippines.
Philippines and India claim combined $97Bn at stake; NASSCOM proposes trusted provider registry
The Philippine BPM industry employs approximately 1.8 million workers generating $38 billion in annual revenue; India’s BPM sector generated $59 billion in revenue in the fiscal year ending March 2026 — figures that frame the bilateral stakes before a single U.S. policy has taken effect.
NASSCOM submitted a formal position to the FCC distinguishing legitimate offshore providers from bad actors, proposing that U.S. policy create a trusted offshore provider registry rather than applying blanket restrictions that penalize compliant operators.
Frontline workers inside the industry are already absorbing the uncertainty: one Manila-based call centre manager reported ‘we’ve already noticed a reduction of headcounts’ as clients reassess offshore delivery decisions ahead of any formal US regulatory action.
The FCC comment deadline of June 22 is the immediate regulatory pressure point — but the H-1B bill and Department of Labor wage rule signal that the US policy direction affecting offshore BPO is broader than any single agency’s rulemaking.
“Our view is that the focus should be on distinguishing between trusted providers and bad actors and not on onshore and offshore delivery,” said Shivendra Singh, Vice President and Head of Global Trade Development, NASSCOM.
For BPO operators and the Philippine and Indian governments, the policy cluster represents the most direct U.S. legislative pressure on offshore call centre delivery in a decade — and the coordinated bilateral response signals that both industries view the current window as the moment to establish compliance credentials before mandatory disclosure requirements create a permanent perception gap between onshore and offshore providers.

Independent




