Philippine Outsourcing Industry Defies AI Threat, Predicts 7% Growth in 2024

Philippine IT-BPM industry to grow by 7% in 2024. Jobs set to increase to 1.82 million with revenue reaching US$38 billion. Industry urged to focus on upskilling workers in AI and other key areas.

Credit: Envato

Jack Madrid, president of the Philippine IT and Business Process Association, announced that jobs in the sector are expected to increase by 7% to 1.82 million in 2024, alongside a revenue surge of 7% to US$38 billion, marking record highs for the industry.

Madrid reassured that "Generative AI will not replace people," highlighting that AI has not yet significantly impacted the industry. He emphasised the importance of upskilling workers in areas like AI to meet ambitious targets set for 2028.

The industry's roadmap for 2022 projects a potential job growth to 2.14 million to 2.55 million, with revenues potentially reaching US$59 billion, driven by demand from North American clients.

Madrid stressed the urgency for the industry to address the talent gap, citing it as a "critical threat." He urged workers to acquire essential skills such as IT support, cybersecurity, data analytics, and AI, stating that the Philippines should not be limited to low-complexity tasks.

A recent survey conducted by the association revealed that while 8% of respondents reported a decrease in headcount due to AI, 13% reported an increase in headcount, indicating a mixed impact of AI on job numbers within the industry.

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• Philippine IT-BPM industry to grow by 7% in 2024

• Jobs set to increase to 1.82 million with revenue reaching US$38 billion

• Industry urged to focus on upskilling workers in AI and other key areas

Source: REUTERS