A Call Center in Bacolod, Philippines via Wikimedia Commons
NEW YORK — A bill pending in the U.S. Congress aimed at curbing the outsourcing of call center jobs has ignited concern across the Pacific, where the Philippines—home to one of the world’s most extensive business process outsourcing (BPO) industries—fears economic fallout and diplomatic strain.
The Keep Call Centers in America Act of 2025, introduced by Rep. Ruben Gallego (D-AZ) and co-sponsored by a bipartisan group of lawmakers, seeks to penalize U.S. companies that relocate customer service operations overseas. If passed, the bill would require the Department of Labor to maintain a public list of such companies, bar them from receiving federal grants or loans, and mandate that consumers be informed when speaking to offshore agents.
“We’re not trying to punish the Philippines,” Gallego said during a recent hearing. “But we have to protect American workers. Offshoring these jobs has hollowed out communities and exposed consumers to data vulnerabilities.”
The legislation comes amid a broader push by President Donald Trump to revive domestic manufacturing and services, including a new round of tariffs targeting Philippine electronics and garments. Together, these measures signal a shift toward economic nationalism that could reshape U.S.-Philippine trade relations.
A Sector on Edge
In Manila, the reaction has been swift. The Information Technology and Business Process Association of the Philippines (IBPAP) warned that the bill could jeopardize up to 1.9 million jobs and reverse $7.8 billion in U.S. investments made since 2003.
“We understand the political pressures in the U.S., but we are not the enemy of American jobs,” said IBPAP President Jack Madrid. “Our workers are highly skilled, and our services help U.S. companies stay competitive. This bill risks hurting both sides.”
The Philippines’ BPO sector contributes nearly 10% of GDP, with call centers serving banks, airlines, tech firms, and healthcare providers. Roughly 70% of its outsourcing revenue comes from North American clients.
Strategic Response
Philippine officials have begun lobbying efforts to seek exemptions or amendments to the bill. Ambassador Jose Manuel Romualdez, speaking from Washington, said: “We are engaging with lawmakers to explain the mutual benefits of our partnership. We believe there is room for nuance.”
Romualdez emphasized that many Filipino call center workers support U.S. consumers during off-hours, enabling 24/7 service without additional domestic labor costs. “This is not a zero-sum game,” he said.
Meanwhile, Senator Imee Marcos called for a “diplomatic offensive,” urging the Department of Trade and Industry to highlight the sector’s role in stabilizing remittances and bilateral ties. “We must not allow protectionism to erode decades of cooperation,” she said.
Voices from the Ground
In Quezon City, Marjorie Dela Cruz, a 27-year-old customer service agent for a U.S. telecom firm, said the bill feels like a betrayal. “We work hard, we follow American protocols, and we treat every caller with respect. Why are we being punished?”
Her colleague, Rafael Santos, added, “If they take away these jobs, what’s left? We’re not just answering phones—we’re feeding families.”
Industry analysts warn that the bill could trigger a wave of layoffs, especially among night-shift workers who serve U.S. time zones. Some companies are already exploring contingency plans, including shifting operations to India or Latin America.
The Bigger Picture
Supporters of the bill argue that it’s about restoring economic dignity to American workers. “We’ve lost hundreds of thousands of service jobs to outsourcing,” said Senator Sherrod Brown (D-OH). “It’s time to bring them home.”
But critics say the bill oversimplifies a complex global economy. “Outsourcing isn’t just about cost—it’s about scalability, multilingual support, and round-the-clock service,” said Dr. Maria Teresa Reyes, an economist at Ateneo de Manila University. “This legislation could backfire by raising costs for U.S. consumers and reducing competitiveness.”
Next
The bill is currently in committee and faces opposition from tech and telecom lobbyists, who argue that reshoring call centers would require massive infrastructure investments and retraining.
Still, with election season heating up and economic populism on the rise, analysts say the bill has momentum. A vote is expected before the end of the year.
For the Philippines, the stakes are high—not just economically, but symbolically. “This is about recognition,” said IBPAP’s Madrid. “We’ve been a reliable partner. We hope the U.S. remembers that.”
The Philippines has been engaged in the Business Process Outsourcing (BPO) industry since the early 1990s, with its first breakthrough occurring in 1992 when Accenture secured the country’s first outsourcing contract. This marked the beginning of what would become one of the Philippines’ most dynamic and economically significant sectors.
