Philippines BPO eyes diversification amid U.S. call center bill threat
MANILA, PHILIPPINES — The Philippine business process outsourcing (BPO) industry, which employs 1.4 million workers and generates $38 billion annually, faces potential disruption from proposed United States legislation seeking to repatriate call center jobs.
While 70% of Philippine BPO clients are American, industry leaders and government officials emphasize diversification and the country’s competitive advantages to mitigate risks.
Proposed U.S. call center bill poses risk to Philippine BPO
The proposed Keep Call Centers in America Act of 2025, which would strip federal grants from companies outsourcing call centers abroad, poses significant risks to the Philippine economy.
Trade Secretary Cristina Roque acknowledged the threat but noted that no formal discussions with the industry group Information Technology and Business Process Association of the Philippines (IBPAP) have yet occurred.
“But for us, (the) DTI, of course, we’ll continue to help the IT-BPO (and) IBPAP businesses in whatever they need from us. Of course, we’ll assist the same way we’ve assisted in the past,” Roque said.
“We can’t just look at the U.S. as the only market. The world is the market. If you look at their population as compared to the world, it will show you that we should really find other avenues to explore.”
Historically, the Philippine government has supported the sector through tax breaks and economic zones. The diversification of the industry might be necessary in the future to mitigate potential losses due to the repatriation of services by American clients.
Global firms expand operations in Philippines despite risks
Global BPO companies, such as Fusion CX India, are expanding in the Philippines, despite the country’s legislative risks, due to the availability of a skilled workforce and government assistance.
With the recent opening of a new location in Mandaluyong City, the Philippines has been strengthened as the second-largest operation center of the company, following India.
“Our strategic approach involves tapping into this talent pool not only in major urban centers but also in high-potential provincial locations,” said Pankaj Dhanuka, Co-founder, Chairman, Managing Director, and Chief Executive Officer of Fusion CX.
Fusion CX’s expansion into provincial areas like Cebu, Cavite, and Albay demonstrates confidence in long-term viability. Dhanuka credited government policies, including tax incentives and economic zones, for fostering industry resilience.
While U.S. market dependence remains a concern, the sector’s adaptability and competitive labor costs position it to attract alternative clients globally.
