PHILIPPINES Law and Practice Contributed by: Kerwin K. Tan, Veronica S. Balbin and Jose Maria B. Buenagua, Tan Hassani and Counsels
Tan Hassani and Counsels Unit 3102 Antel Global Corporate Center 3 Julia Vargas Avenue
Ortigas Center Pasig City 1605 Philippines Tel: +63 999 721 3291 Email: admin@THCounsels.ph Web: www.THCounsels.ph
1. Market Conditions 1.1 IT Outsourcing
legal framework for digital transactions. Furthermore, the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (Republic Act No 11032) has streamlined government procedures for business permits and licensing, reducing red tape and improv - ing efficiency and speed in commerce. In 2023, the Internet Transactions Act (Republic Act No 11967) was enacted, establishing the operational framework for cloud computing, SaaS, artificial intelli - gence, and remote service models that support cross- border teams. The law applies to both business-to- business and business-to-consumer e-commerce when at least one party is based in the Philippines, or when a platform or merchant engages with the Philippine market. Among its key digital initiatives are the creation of the e-Commerce Bureau, tasked with regulating online transactions, and the implementa - tion of an Online Dispute Resolution mechanism for consumers, merchants, e-retailers, and other digital platforms. 1.2 Business Process Outsourcing (BPO) BPO is evolving with trends such as the integration of robotic process automation (RPA) and AI, a height - ened focus on customer experience (CX), and sup - port for digital transformation. The adoption of cloud- based solutions, advanced analytics, and knowledge process outsourcing (KPO) is also prominent. The industry is adapting to remote and virtual BPO mod - els, emphasising multilingual and multichannel sup - port, and prioritising compliance and data secu - rity. Additionally, sustainability and corporate social responsibility (CSR) are gaining importance. These
Cloud computing, software as a service (SaaS), AI automation, cybersecurity, digital transformation ini - tiatives, remote work, distributed teams, nearshoring, reshoring, sustainability, and green IT are some of the key market trends shaping the IT landscape. These technologies are making outsourcing and offshoring more seamless by improving communication and con - nectivity between global teams, such as those in the head office and their counterparts in Manila. In particular, cloud computing and remote collabo - ration tools have made interactions between geo - graphically dispersed teams more efficient, resulting in enhanced customer service. The Securities and Exchange Commission of the Phil - ippines, citing the Department of Trade and Industry, defines business process outsourcing (BPO) as the “delegation of service-type business processes to a third-party service provider”. In the Philippines, the industry is generally divided into the following sectors: contact centres, back-office services, data transcrip - tion, animation, software development, engineering development, and game development. Philippine legislation also plays an active role in shap - ing the IT outsourcing sector. The Electronic Com - merce Act of 2000 (Republic Act No 8792) has greatly facilitated the execution of commercial and outsourc - ing agreements by recognising electronic contracts, signatures, and documents, thereby providing a robust
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