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Keep Call Centers in America Act: Signal the Death of the BPO Industry in the Philippines

Dr. John Paul Aclan, DBAPosted on 2025-08-07 11:26:26 Keep Call Centers in America Act: Signal the Death of the BPO Industry in the Philippines

For more than two decades, the Business Process Outsourcing (BPO) industry in the Philippines has been a pillar of our economy—contributing billions of pesos annually, creating hundreds of thousands of jobs, and shaping the modern middle class of Filipinos. But now, we are facing a storm that we have never experienced before.

No, it's not just about Artificial Intelligence. Nor is it due to market congestion or increased competition. It's a new law from the United States: the Keep Call Centers in America Act—and make no mistake, it could be the final blow to the traditional outsourcing model.

This legislation, currently being debated in the U.S. Congress with bipartisan support, is a direct attack on offshoring. And it doesn't have a twist. It carries a hammer, chains, and no outlets.

Here are the stipulations: • U.S. companies must notify the Secretary of Labor 120 days before going offshore of any call center operations. • These companies will be placed on the public "Offshoring Employer" list for five years—a digital wall of shame. • Violators will be fined $10,000 per day. • Prohibits the receipt of federal grants or loans from the government. • Worst of all, even if they have received a loan in the past, those funds can be revoked through a clawback clause.

Think about it carefully. The world's largest market is closing the door on foreign outsourcing. And it's not intimidation—it's cold policy. It's designed, literally, to make it impossible to maintain outsourcing for American companies without severe financial and reputational compensation.

And it's going to get worse. A transparency clause requires that all calls—whether incoming or outgoing—must begin with stating the agent's whereabouts. If he is not based in the U.S., the customer must be offered the option to speak with the agent in the U.S.

The same rules apply to AI, bots, or automated services. If it is not domestic, it must be notified, and again, a transfer option must be provided.

And for those planning to play in the grey area—think again. Annual certification of offshoring status from the Federal Communications Commission (FCC) is required. Any false declaration will be considered a violation of the Federal Trade Commission (FTC) Act. And when the FTC does, it's not light.

This is not a warning. This is a complete shutdown.

The BPO industry in the Philippines, as well as in India and Colombia, is on the brink of a cliff. We're witnessing the official end of the outsourcing era—and it couldn't get any better.

What's at stake? Work. Whole Cities. It's a whole economy.

From Metro Manila to Cebu, Davao to Iloilo, the BPO sector has empowered Filipinos to earn wages that are competitive in the global market without leaving the country. But now, that economic engine is in jeopardy.

What are we supposed to do? Evolve. Immediately.

We need a national response. A change of strategy. We can no longer rely on a business model that conflicts with the political winds of its largest client.

We must move up the value chain—toward health technology, software development, defense manufacturing, and AI-powered service platforms where we are no longer call takers, but solution creators.

We need to reskill the workforce, provide subsidies for industrial migration, and invest in the development of digital products and intellectual property. We need to attract new clients from Europe, the Middle East, and ASEAN, while also creating domestic BPO use cases for our government and private sector.

It should also be a wake-up call to tech startups and conglomerates in the Philippines: it's time to build platforms for Filipinos, for Filipinos—instead of relying on foreign contracts that can disappear in an instant.