Ban on creation of new low-tax areas intended to push outsourcers into provinces. MANILA -- Philippine outsourcing companies are raising alarm about a move by President Rodrigo Duterte to halt the creation of special economic zones around the capital, the latest step in his efforts to promote development in other parts of the sprawling archipelago. Since his successful election campaign in , Duterte, a native of the far-south city of Davao, has pushed an agenda of decentralizing political and economic activity from congested Manila. What is formally known as the business process outsourcing sector is concerned that call centers and software support service centers may not be able to find the infrastructure and manpower they need in other parts of the country. Companies operating in the zones benefit from special tax breaks.
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Possible nationwide martial law could send money to Malaysia, India. The BPO industry has become a pillar of the Philippine economy in the past decade, contributing significantly to its upturn. The sector's significance means that a slowdown could easily shave 0. The setback to the BPO sector has been evident in office rentals.
Over the last several years, a quiet revolution has been reshaping the call center business: the rise of the Philippines , a former United States colony that has a large population of young people who speak lightly accented English and, unlike many Indians, are steeped in American culture. The jobs have come from the United States, Europe and, to some extent, India as outsourcers followed their clients to the Philippines. India, where offshore call centers first took off in a big way, fields as many as , call center agents, according to some industry estimates. The growing preference for the Philippines reflects in part the maturation of the outsourcing business and in part a preference for American English. In the early days, the industry focused simply on finding and setting up shop in countries with large English-speaking populations and low labor costs, which mostly led them to India.