The Trump administration’s decision to impose higher tariffs on imports from China, Canada, and Mexico could inadvertently provide a strategic opportunity for the Philippine business process outsourcing (BPO) industry and the local office market.
Luis Pantaleon, negotiator for Colliers Philippines’ Office Services, highlights that this protectionist move of President Donald Trump could place significant cost pressures on U.S. companies, especially those heavily reliant on goods imported from these countries.
“Unless these companies are willing to pass these additional costs on to American consumers, they need to find ways to remain competitive, and outsourcing non-core functions to countries with cheaper labor could be one viable solution,” said Pantaleon.
The Philippines, already one of the top global outsourcing destinations, stands poised to absorb new demand for BPO services. Colliers foresees a potential surge in demand, particularly in the office market, as companies seek to establish or expand their outsourcing operations in the country.
To capitalize on this trend, Colliers recommends the Philippine government enhance tax incentives and streamline regulatory processes, particularly in key provincial areas, in light of the recent CREATE MORE Act. The company also stresses the importance of public-private partnerships to upgrade infrastructure, including high-speed internet, to ensure the BPO sector’s sustainability.
Colliers, a real estate services and investment management firm, supports initiatives to upskill the workforce within the IT-BPM sector. Beyond focusing on the U.S. market, Colliers advises the Philippines to diversify its client base, targeting high-cost labor markets in regions such as Australia, EMEA, and East Asia. This strategic approach could safeguard the sector from any market shifts, ensuring continued growth amidst global challenges.
