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Philippines urged to prepare for AI-driven workforce challenges

Philippines urged to prepare for AI-driven workforce challenges
Philippines urged to prepare for AI-driven workforce challenges

The Philippine contact center industry reported revenue of $31.5 billion for 2024, accounting for 83% of the total revenues of the information technology and business process management (IT-BPM) industry. Contact Center Association of the Philippines (CCAP) President Mickey Ocampo stated that the IT-BPM industry is projected to see a 7% growth in revenues and employment by the end of 2024, reaching $38 billion and 1.82 million jobs. In 2023, the industry concluded the year with 1.7 million direct jobs and $35.5 billion in export revenues.

“Of the total revenue, the contact center industry covers 83% amounting to $31.5 billion and 89% of the total workforce headcount equivalent to 1.62 million,” said Mr. Ocampo. The industry’s growth is attributed to factors such as cost efficiency, the availability of high-quality talent, robust infrastructure, and strong government support. Mr.

Ocampo emphasized the need for contact center workers to be prepared to utilize new technologies such as artificial intelligence, data analytics, cybersecurity, and cloud solutions. “The industry must transition from traditional contact center services to more complex, knowledge process outsourcing (KPO)-based services.

Preparing the workforce for AI adoption

A key factor is the need to upskill our workforce to adapt to these new technologies and maintain our competitive edge,” he added. Regarding concerns about potential protectionist policies under a Trump presidency, Mr. Ocampo said the industry is adopting a wait-and-see approach.

He highlighted that the Philippine contact center industry has progressed through various US administrations. “It is too early to determine any effects of the incoming Trump administration, but reviewing the previous Trump administration, we do not foresee any adverse effects. Realistically, it will be a wait-and-see situation for the first few months of the new administration,” he commented.

Mr. Ocampo mentioned that while the Philippines continues to be a top destination for contact center services, it is crucial to increase the available talent pool and upskill existing workers to adapt to new technologies and transition to more complex services. CCAP expects its members to reach $49 billion in revenue by 2028, in line with the IT-BPM Roadmap 2028, which projects industry revenue of $59 billion by that year.

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