BPO sector seen safe from Trump protectionism

The Philippine Economic Zone Authority (Peza) said the local IT-BPM industry would not be affected by the Trump administration’s protectionist rhetoric, a sense of comfort that may not necessarily hold true for US manufacturers based here in the country.

Peza Director General Charito B. Plaza said she met with John Goyer, senior director for Southeast Asia in the US Chamber of Commerce during her visit to Washington from March 27 to April 1.

Citing Goyer whom Plaza said was familiar with Trump policies, she said that the protectionist stance of the US government would more likely affect manufacturers, but not service providers.

This puts the local Information Technology-Business Processing Management (IT-BPM) industry out of harm’s way amid fears that the multibillion-dollar outsourcing industry might be at risk since it was heavily dependent on US firms and clients. In spite of this, some anti-oursourcing bills have been re-filed in the US Congress.

“The US government will not press for the US IT BPO companies operating in the Philippines to cut down on their offshore operations to minimize job displacement of Americans. However, the US is seriously considering a regulatory intervention for some countries hosting American manufacturing companies where the US has a huge trade deficit,” she said.

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