U.S. Offshoring Bill and Its Impact on the Philippine IT-BPM Sector

A new proposal in the U.S. Congress, the Keep Call Centers in America Act, has once again stirred discussion about the future of offshoring and its possible impact on the Philippines’ Information Technology and Business Process Management (IT-BPM) industry.

If enacted, the bill would require call center agents to disclose their location at the start of each customer call and give U.S. consumers the option to speak with an agent based in the United States. It would also require U.S. companies to notify the government 120 days before moving operations offshore. Firms that fail to comply, particularly those receiving government contracts or tax incentives, could face penalties or even blacklisting.

For the Philippines, where nearly 1.9 million Filipinos are employed in the IT-BPM sector and where the industry accounts for about 45% of total office leasing activity, the proposal naturally draws attention.

Temporary Concern, Long-Term Strength

While the measure has raised some concern, similar proposals have been introduced in the past without advancing into law. The Philippine IT-BPM sector has consistently proven resilient in the face of shifting global policies, supported by strong fundamentals and adaptability.

Our data shows that IT-BPM firms remain the primary driver of office demand across the country. Regional hubs such as Cebu, Clark, and Davao continue to attract expansion from outsourcing companies drawn to the deep talent pool, improving infrastructure, and increasing availability of Grade A office spaces suited for outsourcing operations.

Even if some U.S. clients take a more cautious approach, the Philippines retains a clear competitive advantage. Based on U.S. labor data, a U.S.-based call center agent typically costs around $30–$40 per hour, including wages, benefits, and training. By comparison, a Philippine-based agent costs about $12–$15 per hour all-in, a significant difference that continues to make the country a cost-effective and reliable choice.

Why the Industry Remains Resilient

Beyond cost savings, global firms value the Philippines’ skilled, English-proficient workforce, business-friendly environment, and modern, BPO-ready office spaces that meet evolving operational and sustainability standards.

In Cebu, for example, office absorption remains healthy due to the city’s strong IT-BPM presence and access to a consistent talent pipeline from across the Visayas. This ongoing activity reflects how outsourcing firms continue to grow in the Philippines even amid global uncertainty.

Outlook: A Continued Bright Spot for the Economy

Although the Keep Call Centers in America Act may create short-term uncertainty, many industry observers believe it is unlikely to become law given the high labor costs and persistent worker shortages in the United States.

Looking ahead, the IT-BPM sector is expected to remain one of the strongest pillars of employment, office demand, and economic growth in the Philippines. With competitive costs, proven expertise, and continued investor confidence, the country is well-positioned to stay a top global destination for outsourcing in the years ahead.

Source: Leechiu