The IT and Business Process Association of the Philippines is urging lawmakers to amend the Cybercrime Prevention Act of 2012, warning that regulatory bottlenecks and uneven enforcement could drive IT-business process management costs up by as much as 20 percent.
Speaking at a recent Senate hearing, the industry group said IT-BPM firms remain financially liable for cyber incidents involving overseas clients but lack the legal standing to directly file cybercrime complaints.
That gap, IBPAP argued, weakens deterrence, slows enforcement, and undermines client confidence in the Philippines as a secure outsourcing hub.
Industry representatives told lawmakers that companies bear financial risk when fraud affects foreign accounts serviced locally, yet they cannot independently pursue cases. IBPAP is seeking targeted amendments that would empower affected firms to initiate complaints and strengthen prosecution.
Beyond cyber enforcement, the group flagged mounting regulatory friction that could erode the country’s cost advantage. IBPAP estimates that inconsistent tax rules, overlapping local government fees, and uneven implementation of incentives under the CREATE MORE regime could inflate operating expenses by 15 to 20 percent compared with rival destinations.
Companies continue to grapple with local taxes imposed despite their registered business enterprise status, as well as inconsistent interpretations of Bureau of Internal Revenue circulars governing cross-border services. Large and sometimes conflicting tax assessments are frequently escalated to global headquarters, influencing location decisions for expansion projects.
The stakes are high. The IT-BPM sector employs 1.9 million Filipinos, accounts for 8.2 percent of gross domestic product, and is projected to generate USD42 billion in revenues by 2026. Industry leaders say the Philippines remains on track for a USD60 billion target by 2028, provided structural constraints are addressed swiftly.
Without reforms, IBPAP warned that rising compliance costs could blunt the country’s competitive edge in a fast evolving global outsourcing market.
