MGM Consulting and Outsource Services Co.

US Economic Policy on ITBPO

The United States of America (US) has released several statements in relation to bringing jobs to the US. These changes in policy are related to the goods manufactured offshore being shipped back to the US. These manufactured goods include appliances, electronic devices and gadgets. The shifting of US economic policies to other countries has been an area of concern as US began to focus on protecting American jobs under the direction of President Trump.

With the US being the top client and revenue source for the ITBPO industry, any policy changes with regards to exporting products or services will substantially affect the ITBPO industry. North America, for instance, remains as the biggest client of the Philippine outsourcing industry accounting for 64.7 percent of the domestic ITBPO market.

A growing concern on the Philippine territorial dispute and US stand on the issue may also affect foreign policy changes and US – PH relationship.

If the US shifts policy on outsource services, the change will have a substantial impact on the industry and may no longer have the capacity to operate without making substantial changes to utilize freed up spaces and resources for most of the companies. ITBPO company needs to diversify its client sources to manage this threat in case the US changes its policy on BPO services. It can offer its services to other countries that are more open to outsourcing services. Countries such as Canada, Japan, Australia, and the United Kingdom, are the other top country clients for ITBPO.

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