BPOs wary of ‘indirect’ effects of US tariffs – BusinessWorld Online
By Justine Irish D. Tabile, Reporter
THE IT & Business Process Association of the Philippines (IBPAP) said US tariffs may result in disruptions to global investment flows that could ultimately affect its industry.
IBPAP President and Chief Executive Officer Jonathan R. Madrid said no direct impact is expected on the information technology and business process management (IT-BPM) industry, which is also known as the Business Process Outsourcing (BPO), because it supplies services and not goods.
“(Nevertheless), we are closely monitoring the broader economic and investment impacts this may indirectly bring,” he told BusinessWorld.
US President Donald J. Trump announced a 20% tariff on the Philippines this month, higher than the 17% reciprocal tariff he initially imposed in early April.
Mr. Madrid said the government has responded to the US tariff decisions promptly, with a diplomatic push by President Ferdinand R. Marcos, Jr., who is visiting Washington for “a strategic dialogue.”
“Their efforts reflect a strong commitment to investment promotion and economic diplomacy at a critical time,” he added.
He said sustained engagement and collaboration with the US will help “ensure that the Philippine economy remains resilient and attractive to global investors, especially with US counterparts.”
Mr. Marcos and tariff negotiators are in the US to negotiate a lower rate.
Mr. Marcos was due to meet Mr. Trump on Tuesday, Washington time, becoming the first head of state from the Association of Southeast Asian Nations to meet the US President during his second term.
IBPAP said it still expects a 5% increase in industry revenue this year and between 4% and 5% workforce growth.
“For 2025, we are going to show growth. I think we will touch $40 billion in revenue as an industry and should touch 1.9 million in terms of number of workers,” Mr. Madrid said.