News » Biden ‘outsourcing tax’ can dampen PH’s BPO industry

Biden ‘outsourcing tax’ can dampen PH’s BPO industry

Biden ‘outsourcing tax’ can dampen PH’s BPO industry

The Biden administration’s protectionist stance could come in the form of a tax on outsourced operations, which may dampen the prospects of the business process outsourcing (BPO) industry, said Outsource Accelerator CEO Derek Gallimore.

In the past, Biden has floated an offshoring tax penalty, tax credits for investment that creates domestic manufacturing jobs, and the closure of tax loopholes on foreign profits.

The disincentives to outsourcing could have a short to medium-term effect on Philippine BPOs, however, Gallimore said outsourcing still has the potential to grow.

“With COVID, we’re going to go into probably the biggest economic depression the world has ever seen. So that means people will be justifying or looking to save domestic jobs, so that might motivate (Mr. Biden)… Fundamentally I don’t think a president changes that much,” he added.

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.