Outsourcing to a country with strong government support can help provide a more favorable and stable environment for your business, and can make it easier to set up and manage outsourcing arrangements. The Philippines, for example, has the best outsourcing regulations to help protect the rights of workers, businesses, and other stakeholders. This is the reason why it attracts a lot of multinational companies to do business in the country. 

Get to know some of the outsourcing regulations of the Philippine BPO industry and learn why the Philippines is the best outsourcing location for safe offshoring of your business functions.  

List of Outsourcing Regulations of the Philippine BPO Industry

Knowing and following the outsourcing regulations in the Philippines is essential for ensuring compliance and responsible business practices. Also, it can help your business avoid legal and ethical issues that may arise as a result of outsourcing activities. Here are some laws of the Philippine BPO industry you must know for a safe and legal outsourcing:

The Omnibus Investments Code of 1987

The Omnibus Investments Code (OIC) of 1987 is a set of laws and regulations that provide a framework for investment in the Philippines. It covers a wide range of industries, including the business process outsourcing (BPO) industry, which is a significant contributor to the Philippine economy.

The OIC aims to promote and facilitate investment in the country by providing a range of incentives and benefits to investors. These incentives include tax exemptions, duty-free importation of certain capital equipment and raw materials, and streamlined registration and licensing procedures.

In the BPO industry, the OIC can help by providing a more attractive investment environment for companies looking to set up operations in the Philippines. This can help to encourage the growth of the BPO industry in the country, which in turn can create employment opportunities and contribute to economic development.

Special Economic Zone Act of 1995

The Special Economic Zone Act of 1995, commonly known as the Philippine Economic Zone Authority (PEZA) Law, is among outsourcing regulations that provide a framework for the construction and operation of special economic zones (SEZs) in the Philippines. These SEZs are defined regions that are intended to foster economic development and attract foreign investment to the country.

The PEZA Law provides a range of incentives and benefits to companies that invest in SEZs, including tax exemptions, duty-free importation of capital equipment and raw materials, and streamlined registration and licensing procedures. These incentives are designed to encourage companies to locate their operations in SEZs, which can help to drive economic development and create employment opportunities in these areas.

In the BPO industry, the PEZA Law can help to encourage the growth of the industry in the Philippines by providing a more attractive investment environment for companies looking to set up operations in the country. 

Many BPO companies have located their operations in SEZs in the Philippines in order to take advantage of the incentives and benefits offered under the PEZA Law. This has helped to drive the growth of the BPO industry in the country, which in turn has contributed to economic development and the creation of employment opportunities.

Department of Information and Communications Technology Act of 2015

The Department of Information and Communications Technology Act of 2015, also known as Republic Act 10844, is a law that was enacted in the Philippines in 2015 to establish the Department of Information and Communications Technology (DICT) as a government agency responsible for promoting the development and growth of the information and communications technology (ICT) sector in the country.

The DICT Act provides a framework for the DICT to carry out its mandate and achieve its objectives, which include:

• Promoting the development and use of ICT in the Philippines, including through the implementation of policies and programs to support the growth of the ICT sector.
• Developing and implementing policies and programs to support the use of ICT for development and social inclusion, including through the promotion of e-governance and the use of ICT in education and health care.
• Promoting the development of a competitive and innovative ICT sector in the Philippines, including through the support of research and development (R&D) and the promotion of entrepreneurship in the ICT sector.

The DICT Act can help to support the expansion of the BPO industry in the Philippines by encouraging the development of a competitive and innovative ICT sector in the country. This can involve funding and support for research and development projects, promoting the adoption of new technologies in the BPO industry, and assisting in the growth of entrepreneurial ventures in the ICT sector.

Data Privacy Act of 2012

The Data Privacy Act of 2012, also known as Republic Act No. 10173, is an outsourcing law created in the Philippines to safeguard individuals' personal data and to ensure organizations' responsible use of such data. The Act applies to any entity in the Philippines that processes personal data of individuals, including businesses in the BPO industry.

The Act requires BPO businesses to put in place necessary measures to protect the personal data of individuals that they process as part of their activities. This involves the implementation of technological and organizational safeguards to protect personal data, as well as gaining necessary consent from persons before processing their personal data.

In the BPO industry, the Data Privacy Act of 2012 can help to ensure that companies operate in a responsible and ethical manner when it comes to the processing of personal data. This can help to build trust and confidence in the industry, which can be important for the growth and development of the BPO sector in the Philippines. By protecting the personal data of individuals, the Act can also help to safeguard the rights of individuals and ensure that their personal data is used in a responsible and respectful manner.

Telecommuting Act of 2019

Republic Act No. 11165, popularly known as the Telecommuting Act, is a Philippine law adopted in 2019 to encourage the use of telecommuting as a flexible work arrangement. Telecommuting is the practice of working from home or another location using telecommunications technology such as video conferencing, phone calls, and email.

The Telecommuting Act intends to promote the growth and development of telecommuting in the Philippines by establishing a legal framework for telecommuting arrangements. The Act mandates employers to develop telecommuting policies and procedures, as well as recommendations for the execution of telecommuting arrangements, such as telecommuting employees' rights and obligations and the use of telecommuting technologies.

The Act, which provides a legislative framework for the implementation of telecommuting arrangements, can serve to encourage the expansion of the BPO industry in the Philippines. Telecommuting can give employees with better flexibility and work-life balance, which can assist companies attract and retain talent. 

Moreover, the Act can also help BPO organizations cut costs by reducing the requirement for office space and other overhead expenses. By encouraging the use of telecommuting in the BPO industry, it can fuel the industry's growth and development in the Philippines.

Department Circular No. 1, Series of 2008

Department Circular No. 1, Series of 2008, also known as the "Policy and Guidelines Governing the Safety and Health of Workers in the Call Center Industry," is a directive issued by the Department of Labor and Employment in the Philippines to establish standards and guidelines for the promotion of the safety and health of workers in the call center industry. 

The circular aims to ensure that call center workers are protected from work-related injuries and illnesses and that their working conditions are safe and healthy. Some of the benefits of this circular include:

• Improved working conditions: The circular outlines the minimum requirements for physical and environmental conditions in call center workplaces, including lighting, ventilation, temperature, and noise levels. This helps to ensure that workers are able to work in a comfortable and safe environment.
• Enhanced safety and health protections: The circular includes provisions for the protection of workers from work-related injuries and illnesses, including the provision of personal protective equipment, first aid kits, and emergency response plans.
• Reduced absenteeism: By promoting safe and healthy working conditions, the circular helps to reduce the number of work-related injuries and illnesses, which can lead to reduced absenteeism and increased productivity.
• Improved morale: When workers feel that their safety and health are being properly protected, they are more likely to be satisfied with their job and have higher morale. This can lead to increased productivity and a more positive work environment.
• Compliance with labor laws: The circular helps call center employers to comply with relevant labor laws and regulations, which can help to avoid legal issues and costly fines.

Department Advisory No. 4, Series of 2010

Department Advisory No. 4, Series of 2010, issued by the Department of Labor and Employment in the Philippines, provides guidelines on the implementation of flexible work arrangements and the exemption from the nightwork prohibition for women employees in the business process outsourcing (BPO) industry in the Philippines.

The advisory aims to promote gender equality and the empowerment of women in the workplace by allowing women employees in the BPO industry to have the option to work flexible hours, including night shifts, if they so choose. It also sets out the conditions under which women employees may be exempt from the nightwork prohibition, including the requirement that the employer must provide a safe and healthy working environment for its employees.

This advisory is important because it helps to ensure that women in the BPO industry have the same opportunities as men to work flexible hours and to pursue career advancement. It also helps to promote gender equality and the empowerment of women in the workplace by recognizing that women have the right to choose their own work arrangements and to be treated equally in the workplace.

How to start a safe and legal outsourcing?

Outsourcing can be a great way for businesses to access skilled labor and specialized expertise, and to increase efficiency and reduce costs. However, it's important to follow the law and ensure that you are engaging in safe and ethical practices when outsourcing work. Here are some steps you can take to start outsourcing safely and legally:

• Research the laws and regulations that apply to outsourcing in your country and in the countries where you plan to outsource work. This includes labor laws, tax laws, and intellectual property laws.
• Develop a clear and detailed contract that outlines the scope of work, payment terms, and any other relevant details. Be sure to include provisions for protecting intellectual property and ensuring that the work is completed to your satisfaction.
• Verify that the company or individual you are outsourcing to is reputable and has a track record of delivering high-quality work. Consider asking for references or examples of their previous work.
• Establish clear communication channels and set clear expectations for the work to be done. This will help ensure that the work is completed on time and to your satisfaction.
• Consider purchasing insurance to protect your business from potential legal liabilities or financial losses related to the outsourcing arrangement.
• Regularly review and audit your outsourcing arrangements to ensure that you are complying with all relevant laws and regulations, and that the work is being completed to your satisfaction.

By following these steps, you can help ensure that your outsourcing arrangements are safe and legal, and that you are able to achieve the benefits of outsourcing while minimizing the risks.

Partner With ManilaPros for a Safe and Legal Outsourcing

ManilaPros has been in the outsourcing business for over ten years. We’ve worked with top global brands in the past, including but not limited to Apple, Canon, and Dell. 

At ManilaPros, we offer full-service, five-star customer care for retailers. We'll provide your retail business with customer support agents that are certified for your brand, multichannel support, and a dedicated manager that will oversee your CS operations for you.

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