Philippine Outsourcing Industry Projected to Grow 7% Despite AI Challenges

Philippine outsourcing to grow 7% this year despite AI threat, industry group says

MANILA, Oct 2 (Reuters) - The Philippines' information technology and business process management (IT-BPM) industry is set to grow 7% this year, bucking fears that artificial intelligence (AI) will eliminate jobs, an industry official said on Wednesday. Jobs in the sector, a key foreign exchange earner, will grow 7% to 1.82 million in 2024, with revenue also growing 7% to $38 billion, both record highs, Jack Madrid, president of the Philippine industry body, said in a speech. Advertisement · Scroll to continue "Generative AI will not replace people," said Madrid, who is also the CEO of the IT and Business Process Association of the Philippines, adding that AI was not yet hitting the industry. "But people who use Gen AI will replace people who don't." As demand from North American clients drives growth, Madrid urged the industry to improve the skills of its workers, including areas such as AI, to meet ambitious 2028 targets. Advertisement · Scroll to continue An industry roadmap in 2022 projected jobs in the sector would hit 2.14 million to 2.55 million, with revenues reaching as much as $59 billion. The industry, one of the top renters of office space in the Philippines, needs to tackle the "critical threat" of the talent gap, Madrid said. Workers should be equipped with in-demand skills such as IT support, cybersecurity, data analytics, and AI, he urged, adding, "The Philippines cannot just be known as a destination doing low-complexity jobs." A June survey of the association's 415 members showed 8% of respondents reported a reduction in headcount because of AI, although 13% reported headcount gains. Reporting by Neil Jerome Morales; Editing by Clarence Fernandez Our Standards: The Thomson Reuters Trust Principles., opens new tab

Philippine Outsourcing to Grow 7% This Year Despite AI Threat, Industry Group Says

MANILA (Reuters) - The Philippines' information technology and business process management (IT-BPM) industry is set to grow 7% this year, bucking fears that artificial intelligence (AI) will eliminate jobs, an industry official said on Wednesday. Jobs in the sector, a key foreign exchange earner, will grow 7% to 1.82 million in 2024, with revenue also growing 7% to $38 billion, both record highs, Jack Madrid, president of the Philippine industry body, said in a speech. "Generative AI will not replace people," said Madrid, who is also the CEO of the IT and Business Process Association of the Philippines, adding that AI was not yet hitting the industry. "But people who use Gen AI will replace people who don't." As demand from North American clients drives growth, Madrid urged the industry to improve the skills of its workers, including areas such as AI, to meet ambitious 2028 targets. An industry roadmap in 2022 projected jobs in the sector would hit 2.14 million to 2.55 million, with revenues reaching as much as $59 billion. The industry, one of the top renters of office space in the Philippines, needs to tackle the "critical threat" of the talent gap, Madrid said. Workers should be equipped with in-demand skills such as IT support, cybersecurity, data analytics, and AI, he urged, adding, "The Philippines cannot just be known as a destination doing low-complexity jobs." A June survey of the association's 415 members showed 8% of respondents reported a reduction in headcount because of AI, although 13% reported headcount gains. (Reporting by Neil Jerome Morales; Editing by Clarence Fernandez)