ARTIFICIAL intelligence (AI) has continuously created a buzz, drawing mixed reactions across industries worldwide.
Even if its impact on the information technology-business process management (IT-BPM) sector in the Philippines cannot be predicted with certainty, its significant disruptive effect on the country’s global leadership in this field is far-fetched.
“While AI, like other ground-breaking technologies, brings a new set of challenges to users, it is likely to bring more positives than negatives to the industry,” Gibu Mathew, vice president and general manager for Asia-Pacific at Zoho Corp., told the BusinessMirror in an e-mail interview.
AI enhances efficiency, accuracy and productivity in various business-process outsourcing (BPO) functions. Solutions powered by chatbots, data analytics tools, and process automation are already being used by many industry players. These tools help streamline operations, mitigate errors, and improve overall performance.
Iterations of such have led to the emergence of the co-called generative AI, which is deemed greatly beneficial for outsourcing. For instance, processes can be enhanced to be more efficient. Also, it provides opportunities for better data analytics and insights and improved customer support engagement. What’s more, there are avenues to ensure quality control and compliance, as well as allow language translation—all leading to better outcomes for businesses and their customers.
“The adoption of AI technology can enhance the Philippines’ position in the industry. By integrating AI into their operations, companies can improve their service offerings, increase productivity, and provide more innovative solutions to clients,” he said.
‘AInvasion’
DESPITE mounting concerns over AI, it has undeniably expanded its reach on Philippine shores. In fact, it’s “already being adopted by the outsourcing sector” in the country, according to Mathew.
He cited as example a client, with more than 90 virtual assistants for customers across four continents, which uses Zoho People to automate processes and simplify the daily management of its remote workforce.
This platform enables the company’s Human Resources department to keep track of each cyber assistant’s work anniversary and birthday. This automation helps the unit celebrate these milestones, enhance employee morale, and improve workforce solidarity.
Zoho People, likewise, provides a comprehensive system to handle employee attendance, track leaves, and automate attendance calculations. This channel streamlines the process and guarantees accurate record-keeping. It also lessens administrative workload and empowers workers to manage their HR-related activities via a self-service portal, where employees can access and update their personal information, view pay stubs, request leave, and perform other self-service tasks.
In addition to process automation, Zoho People also aids the organization track attrition rates. By collecting and analyzing crucial data, it can determine which teams necessitate assistance and take appropriate measures to mitigate attrition.
Not worrisome
CHANGE is imminent in the international labor market.
This holds true as the Future of Jobs Report 2023 of the World Economic Forum showed that 44 percent of workers’ core skills will become different in the next five years. On the other hand, the IBM Institute of Business Value study on the implications of AI in the global skills gap shows that its evolution, not to mention that of automation, will disrupt 85 million jobs between 2020 and 2025 and create 97 million new job roles.
Amid fears that it will replace human workers or render their roles obsolete, Mathew gave assurances that local BPO workers need not worry. He affirmed: “AI will not replace Filipino talents in the outsourcing industry, but rather reinforce their abilities and improve their efficiency.”
Globally, Filipinos are known to have a competitive edge over their foreign counterparts due to sought-after outsourcing skills that are not easy to substitute with or duplicate by AI. These include strong English communication skills and familiarity with the sensibilities of Western customers.
AI technology can handle routine and repetitive tasks, but still lacks the human touch and nuanced understanding that is critical in serving clients face-to-face.
“Filipinos excel in providing personalized and empathetic customer experiences, which are difficult for AI to replicate,” said the top executive.
Sustaining growth,
staying relevant
THERE’S no stopping AI being a big business game-changer. In fact, it is expected to unlock an astounding $16 trillion in value by 2030. PwC said that it can contribute up to $92 billion to the Philippine economy by 2030. Generative AI, in particular, can open $79.3 billion in productive capacity for the country, Department of Trade and Industry Undersecretary Rafaelita Aldaba previously reported.
Such rosy figures give a hint that the sun will continue to shine on the local IT-BPM industry. In view of this, Filipino talents must continue to upskill to remain competitive in the global outsourcing arena.
As AI technology can automate many routine and repetitive tasks and improve efficiency and productivity, IT-BPM outfits need to focus more on “judgment-intensive” outsourcing services. These include roles in financial planning and analysis, after-sales support, and supply chain management.
“The shift towards an AI-powered workforce demands a focus on enhancing their skills to handle more complex and value-added roles that require human creativity, empathy and critical thinking. This includes developing expertise in areas such as data analytics, problem-solving, and strategic decision-making,” Mathew said.
“By embracing AI technology as a tool to enhance their capabilities, Filipino talents can elevate their value proposition to clients and offer a more comprehensive range of services. Rather than being threatened by AI, Filipinos can leverage it to their advantage, ensuring their continued dominance in the outsourcing industry,” he added.
To sustain the country’s position in the global IT-BPM industry, the government, for its part, must strengthen the academe’s role in upskilling and retooling the local workforce.
Through comprehensive curriculum reviews and realignment of existing IT-related courses at the university and high-school levels, the government can ensure that students are equipped with the necessary soft skills (such as communication, problem-solving, and critical thinking) and technical expertise needed for the ever-changing digital landscape and outsourcing sector.
Mathew also advised government policymakers to support academia by crafting policies, plans, and programs crucial to the industry. This includes providing funding for research and development, creating partnerships between academia and industry, and promoting initiatives focused on innovation and technology adoption.
“Collaboration between the industry, academia and the government is crucial. This means establishing close partnerships and communication channels to identify emerging trends, skill requirements, and industry needs. By working together, they can ensure that the workforce remains relevant and adaptable to the advancements brought by AI,” he stressed.
Talent outsourcing provider
to harness AI for expansion
EY Global Delivery Services (GDS) aims to expand its talent pool in the Philippines by 50 percent over the next two to three years. This growth is part of their strategy to offer innovative and strategic business solutions to EY member companies and clients both locally and internationally.
Andrea Catte, EY GDS Philippines tax co-leader and EY Asia Pacific and EY Global Compliance and Reporting (GCR) lead, revealed that they will focus on upskilling and re-skilling their 5,000-plus team members at present and expand their total headcount to 7,500 by 2026 or 2027, in both their Manila and Cebu centers.
“The key focus for FY [fiscal year] 2024 is the adaptability and growing the skill sets and the services that we’re offering. So as the market moves and the skill sets of employees move, we want to enable them to grow their careers and provide more high-quality services, high-level services, end-to-end services as well in those areas for our market teams,” she said in a recent media briefing in Makati City.
Established locally in September 2015, EY GDS provides tax, assurance, strategy and transactions, and consulting services to EY member companies. Moreover, it works across finance, business development, technology, talent, procurement and risk management functions to help EY teams operate as efficiently and effectively as possible.
“The EY member-firm here in the Philippines is SGV,” EY GDS Consulting Leader and Asia Pacific SAP Leader Raymond Garret Go said of their client that outsources talents from them. “So their focus is the local market. But more than 95 percent of what we do is really for the world.”
At present, assurance is the biggest business line of EY GDS Philippines at 50 percent, servicing mostly the America and AsPac markets; consulting accounts for roughly 20 to 25 percent; as tax is “a bit smaller” serving Oceania, Singapore, Malaysia and Hong Kong.
As for its community impact, the company has been a partner since 2022 of local universities in Cebu—Cebu Institute of Technology and University of San Jose Recoletos—to offer ServiceNow elective subject, designed by the GDS Philippines Consulting team.
Following the opening of their second domestic hub there in October 2023, he disclosed their intention to tie up with more academic institutions to offer certain courses and help train the “next generation” of talents.
According to Go, the company also plans to leverage emerging technologies, such as AI, automation and data analytics for better service delivery. It launched a $1.4-billion investment in enabling AI from a solution standpoint, and also in terms of capacitating the teams with in-depth AI courses for engineers, programmers and data scientists; applied AI for their people in the tax or assurance line of business; as well as responsible AI.
Moving forward, Go mentioned plans to introduce new services, particularly in the tech space and customer experience, along with expanding into business consulting areas such as supply chain transformation and finance transformation. Additionally, Catte expressed their intent to collaborate with other EY GDS locations in the region and extend their service offerings to include tax services in India and the United States.
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