Bangko Sentral ng Pilipinas (BSP) expressed concerns about the possible impact of a slump in the country’s business process outsourcing companies (BPO) due to Donald Trump’s “America First” policy. American companies that are involved in business outsourcing, accounts for 70% of the BPO
Philippines market. According to industry data, the BPO and IT industry have managed to earn an estimated $18 billion in revenue.
Deputy Governer of BSP Nestor Espenilla Jr., told STAR in an interview that if there is a decline in BPOs and they pull out of Philippines, the property sector that deals with office space and residential division that caters to call center employees will be severely impacted. Other businesses such as consumer and retail sections that are dependent on the BPO sector will be impacted by the slump.
Espenilla explained that BSP was keeping an eye on the developments in the BPO industry as it can affect the economy of Philippines.
BPO companies had plans to expand, but they changed their mind after the election of Donald Trump.
Trump protectionism will impact the BPO Philippines industry as he is against outsourcing American jobs.