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Manila Bulletin devider Business devider Trade & Industry devider IT-BPM industry on alert for US bills curbing offshoring

IT-BPM industry on alert for US bills curbing offshoring

Published Sep 23, 2025 09:54 pm
The information technology and business process management (IT-BPM) sector is monitoring developments concerning a growing legislative push in the United States (US) that seeks to curb offshoring.
The IT and Business Process Association of the Philippines (IBPAP) said the industry is currently assessing the potential progress of two bills filed in the US Senate, which are seen to directly impact revenues and employment.
Filed in July, the proposed Keep Call Centers in America Act of 2025 aims to curb offshoring, or the relocation of business operations from one country to another, in the IT-BPM sector.
The bill is intended to reverse the decline of call center operations in the US by limiting federal benefits to companies that ship employment overseas.
Under the bill, call center firms that are found to have relocated operations would be ineligible for new federal grants and guaranteed loans, among other benefits.
If enacted, it would cover firms with either 50 or more full-time employees, or 50 or more employees whose combined work hours total at least 1,500 per week.
Further, IBPAP is monitoring developments on the bill proposing the Halting International Relocation of Employment (HIRE) Act, which also seeks to clamp down on the practice of outsourcing.
Under HIRE Act, outsourcing payments will now incur an additional 25-percent excise tax, with companies prohibited from deducting such payments.
Funds raised from the additional tax will create a workforce fund within the US to support apprenticeships and workforce development programs.
IBPAP Chief Operating Officer (COO) Celeste Ilagan noted that while progress on these bills appears slow, the industry group is nonetheless keeping a close watch due to their potential impact.
“We are in touch with our DTI [Department of Trade and Industry] colleagues in Washington so that they can get insights also from relevant quarters there,” said Ilagan in a press briefing on Tuesday, Sept. 23.
“So that’s essentially what is important, to know how it is moving so that we can press the right buttons,” she added.
In a worst-case scenario where these measures become law, Everest Group Chief Executive Officer (CEO) Jimit Arora said they would have wide-ranging effects on IT-BPM sectors worldwide.
Arora, however, noted that earnings of US companies would also be affected by the restrictive policies.
“So the domino effects on the US economy could be very severe,” said Arora, who heads a Dallas-based global research firm.
“Those bad earnings then create knock-on effects on the stock market, and it could slow the economy down,” he explained.
As such, Arora expects these bills to face “significant resistance” from large US companies, potentially lobbying lawmakers to oppose them.
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