Philippines shouldn’t be more expensive than India – IBPAP


The IT and Business Process Association of the Philippines (IBPAP) has urged the government to ensure that outsourcing costs in the Philippines do not become “too expensive”, and that it remains cost competitive to main rival India when the second tranche of tax reforms is implemented. IBPAP President Rey Untal said the proposed tax reform, which plans to eradicate tax incentives for companies locating in the country’s economic zones, should not diminish the competitiveness of the local BPO sector or risk losing investors in favor of India, which also has similar scale and skill sets as the Philippines BPO industry. Untal said the policy position of IBPAP is that whatever changes that the industry will go through, they should not adversely impact the country’s competitiveness, and that the BPO industry is collaborating with the government on the second batch of tax reforms.

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