News: IBPAP – What Happens When Philippines BPO’s Become More Expensive than India?

It’s a cut throat business.

According to the IT and Business Process Association of the Philippines (IBPAP), the country cannot afford to be too expensive compared to its chief rival, India, a country that can provide both manpower skills and operational scale, pound for pound versus the Philippines.

Rey Untal, IBPAP CEO


“Ang point lang namin is that whatever change that we will go through, let’s make sure that it will not adversely impact our competitiveness, kasi our competitiveness is critical to our growth.”

Under batch two of tax reforms, the government will lower the corporate income tax rate to 25 percent from 30 percent and then proceed to “rationalize” some incentives.

Paola Alvarez, Department of Finance


“There would be more companies that would be benefiting from the lowering of the corporate income tax than those who are actually just receiving these incentives.”

Optimism and Pessimism

Despite the risk raised to the government, IBPAP has maintained that the BPO industry was shooting to grow its workforce from the current 1.2 million to 1.8 million by 2022.