August 2025 Industry Trends

Adaptation and resilience in the IT-BPM/BPO industry in the face of legislative, technological, and competitive disruption.

Executive Summary

August 2025 is a critical moment for the global IT-BPM/BPO industry. It is under pressure from its heavy reliance on U.S. clients, making it vulnerable to new U.S. laws. At the same time, AI adoption and global partnerships and expansions are changing its competitive landscape.

To stay resilient, the Philippines and similar markets are adapting by expanding their reach beyond U.S. clients, developing AI-driven services, and exploring new opportunities for growth.

Key Takeaways:

• The Keep Call Centers in America Act of 2025 has advanced, creating uncertainty. Philippine industry leaders are exploring client diversification beyond the U.S.
• AI platforms, tools, and AI-BPO operations are expanding, with new investments, hubs, and upskilling programs.
• M&A and expansions are accelerating; Hinduja’s $5M AI-BPO investment in the Philippines is a prime example.
• Logix BPO remains focused on resilience: empowering people, embracing technology, and standing by clients.

Implications of the Keep Call Centers in America Act of 2025 for the IT-BPM/BPO Industry

The proposed Act was introduced in two versions: the Senate bill S.2495 on July 29, 2025, and the House bill H.R. 4954 on August 12, 2025. It aims to discourage the offshoring of call center work.

Even if amended, the bill highlights a strong U.S. protectionist stance that could disrupt client demand for Philippine and global providers.

Key Provisions:

• A public list of employers that offshore call center work
• Ineligibility for certain federal grants or loans
• Disclosure of customer service locations

Potential Implications:

• Short-term uncertainty. BPOs that rely heavily on U.S. clients may face volatile contract renewals or sudden exit clauses as clients hedge against legislative risks. This uncertainty can affect cash flow and disrupt growth in planning in the near term.
• Operational pressure. To meet client expectations, some providers may shift partial operations back to the U.S. or adopt hybrid delivery hubs. Such moves demand upfront capital, higher overhead, and new management models that strain resources.
• Compliance costs. Stricter disclosure rules and reporting requirements will force providers to establish dedicated compliance teams, implement audit frameworks, and invest in supporting technology. These new expenses add layers of complexity to an already cost-sensitive industry.
• Eroded cost advantage. If more work is relocated to the U.S., the traditional labor cost savings of outsourcing will diminish. This shift places added pressure on margins and drives providers to differentiate through technology and specialized expertise rather than rely on price alone.
• Global ripple. Even if the bill is revised, it signals a growing protectionist mindset that could inspire similar initiatives in other countries. This broader trend poses long-term risks for global outsourcing models and underscores the urgency of diversifying client bases.

We can’t just look at the U.S. as the only market. The world is the market.
— Cristina Roque, DTI Secretary

In the Philippines, the government, through the Department of Trade and Industry (DTI), along with the Information Technology and Business Process Association of the Philippines (IBPAP), is closely watching the bill’s progress.

DTI Secretary Cristina Roque says the department will support the IT-BPM/BPO industry and IBPAP in whatever they need, assisting them in the same manner as in the past.

The country’s real estate leaders have also expressed confidence in the industry amid the noise of this proposed bill. Andy dela Cruz, the MREIT’s Head of Investor Relations, states that U.S. clients will continue to outsource to the Philippines due to its large talent base, robust infrastructure, and established investor trust.

AI-Driven Investments: AI Platform & Tool Launches

This month, AI adoption picked up speed, changing how providers create value. Companies are now using AI for data analysis, customer interactions, and automating processes. This shift shows a wider move to make services more efficient and to redefine tasks that were once performed manually.

Mergers, Acquisitions, & Corporate Expansions in the IT-BPM/BPO Space

M&A activity continues to reshape the industry as providers strengthen their services and enter new markets. Deals in AI, cybersecurity, and automation show the push to prepare for the future.

At the same time, expansions in the Philippines and India reflect strong confidence in nearshore and offshore delivery.

Potential Resilience Strategies for the IT-BPM/BPO Industry

To hold against legislative, technological, and competitive pressures, the industry needs to stay adaptable. It can do so by expanding into new markets and services while remaining prepared for fast-changing regulations.

Providers that invest in future-ready skills and tools will be in the strongest position to succeed.

• Diversify client geographies. Relying on U.S. contracts exposes BPOs to concentrated risks, making geographic diversification essential. Expanding into Europe, Asia, Australia, and Latin America reduces vulnerability while unlocking new growth opportunities in emerging markets.
• Invest in AI and higher-value services. The shift beyond voice and chat is critical as cost-based competition narrows. Offering automation, analytics, cybersecurity, and AI-driven CX allows providers to stay relevant while appearing to clients seeking innovative solutions.
• Scale via mergers/partnerships. Acquisitions and partnerships enable providers to quickly add new service lines, technology expertise, or regional presence. These moves strengthen competitiveness while spreading operational risk across diverse markets.
• Engage in policy development. Active collaboration with government stakeholders ensures industry concerns are represented in training, incentives, and AI adoption policies. Engagement not only safeguards business interests but also supports long-term industry stability.
• Increase talent development. As automation reshapes entry-level roles, employees must be prepared for higher-value work. Investing in skills such as empathy, problem-solving, and domain knowledge equips the workforce for an AI-augmented future.

Looking Ahead: Key Signals for September 2025

• Partnerships that blend CX with AI are becoming the new normal
• AI platforms are embedding deeper into enterprise stacks
• Investors are closely watching earnings reports and strategy updates

For BPOs, September highlights the need to put AI-enabled workflows into practice and make human+AI service models the standard.

Partnerships between CX firms and AI providers are growing, raising client expectations for faster, more personalized, and cost-efficient services. At the same time, providers are weaving AI into core operations, which calls for constant reskilling and stronger change management.

Investor confidence, guided by earnings and strategy updates, will put more pressure on providers to stay agile and deliver. Those who adapt quickly, balance automation with human insight, and turn disruption into long-term value will have a sustainable advantage.

Logix BPO’s Closing Stance

As the industry changes, we are growing alongside it. By adopting new technology and staying focused on client needs, we are ready to capture opportunities in key markets.

Our priority is clear: empower people, use new tools wisely, and guide clients through uncertainty. Only then can we turn challenges into opportunities for growth.