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News » Philippine BPOs confident amid U.S. election uncertainty

Philippine BPOs confident amid U.S. election uncertainty

philippine-bpo-confident-amid-us-election

MANILA, PHILIPPINES—The IT and Business Process Association of the Philippines (IBPAP) remains optimistic about the country’s outsourcing industry, asserting that demand will stay strong regardless of the outcome of the U.S. presidential election. 

Celeste Ilagan, IBPAP’s Chief Operating Officer, noted that U.S. investors are steadily expanding their operations in the Philippines, unaffected by political shifts in Washington.

“There are no immediate concerns we have heard about from them,” Ilagan stated during a briefing on a report by the Center for Strategic and International Studies (CSIS). She emphasized the sector’s growth prospects, highlighting ambitious targets for employment and service export revenue.

Philippine BPO industry growth and economic projections

The Philippine information technology and business process management (IT-BPM) sector is projected to generate between $38 billion and $40 billion in revenue this year. Employment in the sector is expected to grow to between 1.82 million and 1.84 million positions. 

The CSIS report highlights the sector’s importance, noting that U.S. businesses have increasingly outsourced services to the Philippines over recent decades, driven by a young, tech-savvy, and English-proficient workforce.

Japhet Quitzon, an Associate Fellow at CSIS Southeast Asia Program, underscored the sector’s role as a major employer in the country. The report also revealed that 395 U.S. firms invested $22.4 billion in the Philippines from 2003 to 2021, with 35% directed towards IT-BPM.

U.S. investment impact on Philippine outsourcing sector

Despite its strengths, the Philippine IT-BPM industry faces challenges due to constitutional restrictions on foreign ownership in certain sectors. These limitations have affected foreign direct investment (FDI) inflows into the country. Nevertheless, the government aims to position the Philippines as a leading FDI destination in Southeast Asia.

To enhance bilateral relations and investment transparency, CSIS recommends developing a comprehensive database of U.S. investments in the Philippines. This initiative would provide clear insights into investment impacts, including employment figures.

Additionally, CSIS advises diversifying investment destinations beyond Luzon to regions like Cebu and Davao, which show growing business interest but remain less saturated than Manila. 

Overall, Philippine BPOs remain optimistic about continued growth and stability in outsourcing demand from U.S. clients, regardless of political shifts across the Pacific.

Trump vs. Harris: Outsourcing perspectives

The U.S. presidential election has spotlighted differing views on outsourcing between Donald Trump and Kamala Harris. 

Historically, Trump has criticized outsourcing practices, advocating for policies that encourage domestic job creation. In his 2024 Republican Party platform, Trump declared his intention to “stop outsourcing and turn the United States into a manufacturing superpower.” 

Just recently, he threatened agricultural machinery giant John Deere with a 200% tariff if it moved manufacturing operations south of the border.

Meanwhile, Kamala Harris emphasizes strengthening domestic industries while balancing economic growth with fair trade practices. Her approach includes bolstering U.S. manufacturing through initiatives like the ‘America Forward’ plan, which aims to reduce reliance on outsourcing by investing in domestic manufacturing and research.

Harris has also proposed international tax reforms to discourage corporations from using strategies that allow them to evade fair contributions to the U.S. treasury. Her pragmatic approach focuses on realistic solutions to support strategic outsourcing that benefits both U.S. and foreign economies while prioritizing domestic job creation.

Read more here.

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