How President Trump May Hurt (or Help) the Philippine BPO Industry

Taxumo
Taxumo
Jul 24, 2017 · 2 min read

There have been various news coverage on the election of Donald Trump, and how Trump’s “America First” policies could negatively impact our country’s thriving business process outsourcing or BPO industry. Many are concerned of possible US legislation that could discourage companies from further outsourcing or make offshore services more expensive through some form of “border tax”. With analysts estimating well over 50% of BPO revenues emanating from the US or US companies, some industry stakeholders, especially BPO employees, are frankly scared.

WHAT EXACTLY IS THIS THREAT?

The Philippines, by many metrics, have already taken over India as the number one destination for business process outsourcing, with most of the outsourcing coming from English-speaking countries, and the US, the biggest revenue source. And the math is simple, we are the recipient of these jobs, and in the US, many are getting the pink slip as a result. Put in another way, what could have been a new job opening in America is now being staffed here in our shores.

Immigrants in America can claim that they take on the menial tasks the locals aren’t willing to do, but that same argument will not get us anywhere. And while for certain products it may require not just one but many plants within a supply chain to all move back, it may not be that complicated for business support services. So is it simply a matter of time before Trump turns his attention towards us? It’s not just our BPO industry that is at stake here, but also construction and real estate (building landlords, residential housing developments, real estate agents), hospitality (restaurants, bars, fitness clubs), our auto industry, the insurance and mutual fund companies, etc. It’s all interconnected.

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Taxumo

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Taxumo

Taxumo is a web-based tax submission platform that helps freelancers, professionals, and self-employed individuals file and pay for their taxes online.

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