The government defended the local information technology and business process management (IT-BPM) sector against claims that offshoring is a major source of consumer harm, as the United States (US) moves to reclaim jobs sent overseas.

In a position paper submitted to the US Federal Communications Commission (FCC), seen by Manila Bulletin, the Board of Investments (BOI) said the IT-BPM industry has consistently demonstrated its capability to support highly regulated operations for multinational enterprises, including many based in the US.

The BOI, the country’s lead investment promotion agency (IPA), said the industry’s operations comply with local laws and international standards, making it a trusted partner for global customer service and business support operations.

As such, BOI Managing Head and Department of Trade and Industry (DTI) Undersecretary Ceferino S. Rodolfo argued that any proposed geographic prohibition “may unintentionally disrupt efficient service delivery without clear consumer benefit.”

The FCC earlier issued a notice of proposed rulemaking (NPRM) to seek public feedback on proposals aimed at compelling American businesses to bring call center jobs back to the US.

Among the measures proposed are ways to encourage and facilitate the onshoring of call centers in the US, mandate service providers to disclose the call center’s location during customer calls, and require call center workers to be proficient in American Standard English and appropriately trained to resolve US customers’ issues.

The FCC said these proposals aim to address the supposed poor customer experience and frustration US consumers regularly experience when they connect with call centers located abroad.

The BOI emphasized that these concerns do not fit the Philippine context, especially since the country’s IT-BPM companies have developed decades-long partnerships with US firms built on high standards of English proficiency, cultural alignment, transparency, and compliance with regulatory requirements.

Meanwhile, the Philippine Economic Zone Authority (PEZA) said in a separate position paper that the domestic IT-BPM sector has a “highly satisfactory record of compliance” with applicable investment regulations, operational requirements, reporting obligations, and other standards.

“PEZA further recognizes that the industry’s strong compliance record, operational discipline, and adherence to high international standards directly benefit many [US]-headquartered enterprises,” said Tereso O. Panga, the IPA’s director general.

PEZA, which oversees the country’s ecozone system, currently hosts more than 1,600 companies in the IT-BPM sector, or around 36 percent of the total number of locators, which stood at 4,388 as of December 2025.

For the Department of Information and Communications Technology (DICT), local IT-BPM firms serving US companies also operate within strict digital governance frameworks that include robust cybersecurity controls, secure systems architecture, and data protection protocols.

As part of the NPRM, the FCC also proposes measures to address concerns that offshoring operations are vulnerable to privacy risks because they often handle customers’ sensitive payment and account information.

In response, DICT Secretary Henry R. Aguda said the National Privacy Commission (NPC) regularly conducts compliance checks and implements other enforcement mechanisms to ensure that IT-BPM companies adhere to the Data Privacy Act.

The DICT also cited the Cybercrime Prevention Act and the SIM Registration Act, which have strengthened the country’s measures against scams and other forms of digital fraud by improving accountability and traceability.

“Collectively, these laws work to reinforce data protection and help mitigate risks posed by bad-faith actors to legitimate IT-BPM companies that provide secure services to their clients, including US companies,” the DICT said.

“With this, the department emphasizes that the Philippines has consistently demonstrated its capability to deliver secure, resilient, and high-value offshore services that effectively support the operational and strategic needs of US-based companies,” the DICT added.