Thousands of Call Center Jobs at Risk as US Bill Targets Offshoring Amid AI Surge

Thousands of Call Center Jobs at Risk as US Bill Targets Offshoring Amid AI Surge

By Bing Jabadan – TheNationWeek.Com | October 10, 2025

MANILA, Philippines – A proposed United States law, the Keep Call Centers in America Act of 2025, is sending ripples of concern through the Philippines’ thriving $35-billion business process outsourcing (BPO) industry.

The law, once passed, will threaten the livelihoods of nearly two million Filipino workers.

The bipartisan bill aims to incentivize American companies to keep customer service jobs within the US, raising fears of significant job losses in a sector heavily reliant on serving American clients.

The legislation seeks to disincentivize offshoring by imposing financial penalties and transparency requirements on US employers that move more than 30 percent of their customer service operations overseas.

Key provisions of the bill include:

“Do Not Reward” List:

• The US Secretary of Labor will publish a public list of companies that outsource call center jobs, barring them from receiving new federal grants, loans, or contracts for five years unless they repatriate an equivalent number of jobs.

Consumer Transparency:

• Customers must be informed when speaking with agents located overseas and given the right to transfer to a US-based representative. Companies using artificial intelligence (AI) must disclose its use and offer the same option to speak with a human agent.

Notification of Offshoring:

• Companies must notify the Department of Labor (DOL) 120 days before relocating call centers or offshoring jobs.

Non-compliance with these provisions could result in fines of up to $10,000 per day.

Call Center Capital of the World

The Philippines, often dubbed the “call center capital of the world,” is particularly vulnerable.

Approximately 70 percent of the country’s BPO work caters to US clients, contributing an estimated nine percent to the national GDP.

The bill would force US companies, especially those dependent on federal contracts, to scale back offshore operations to maintain eligibility for government funding.

The requirement to offer transfers to US-based agents could also compel companies to maintain costly backup capacity in America, diminishing the cost savings that initially drove them offshore.

The proposed law comes at a time when AI is already impacting the customer service landscape, further compounding concerns about job security in the BPO sector.

While the bill includes provisions requiring disclosure of AI use and offering customers the option to speak with a human agent, the long-term impact of AI on call center employment remains uncertain.

The Keep Call Centers in America Act of 2025 has sparked debate about the balance between protecting American jobs and the potential consequences for international trade relations, particularly between the US and the Philippines, where call centers have long been a cornerstone of the economic relationship.