PH BPO industry safe from trade war
According to Mitsubishi UFJ Financial Group (MUFG), the business process outsourcing (BPO) industry is seen to be “insulated” from the trade war.
Due to low costs and English proficiency, the country still remains an attractive BPO destination. Marie Diana Lynn C. Singson, the head of Global Corporate Banking at MUFG Manila said, “I think BPOs are relatively shielded from the trade wars… Companies set up BPOs precisely because they want to minimize costs… even with a trade war, I don’t think we will see it affecting the BPO business.”
US investors are also considering the Philippines as a potential relocation site for their China-based operations. “I think the Philippines is very unique and could reap the benefits of having an English-speaking population… (US companies) are very happy with the outsourcing and (can be expected to) continue to outsource their activities to the Philippines,” said Leong Sook Mei, ASEAN Head of Global Markets Research for MUFG.
Last 2018, the PH BPO industry generated almost $25 billion in revenue.