High-value outsourcing to shield Cebu from AIs

CEBU, Philippines — Cebu's strength in high-value outsourcing or the Knowledge Process Outsourcing (KPO) is seen to protect the industry's vulnerability with the entry of AI (Artificial Intelligence) machines.

According to market analyst and researcher Joey Roi Bondoc, Cebu will continue to expect inflow of KPO investments in the coming years, thereby AI technology is not much of a threat to the outsourcing sector, as this may only threaten the voice-related outsourcing jobs.

Cebu's demand for office space as well as job opportunities for the graduates will continue to rise.

Cebu IT/BPM Organization (CIB.O, formerly Cedfit) managing director Wilfredo Sa-a Jr. likewise foresees the same direction, as Cebu's ability in providing the right and high-skilled people is also strengthening.

The academe sector on the other hand, Sa-a added has been very proactive in catching up the industry's direction.

"The direction now of Cebu is to intensify its move to attract more KPM (knowledge process management)," said Sa-a.

The IT and Business Process Association of the Philippines (IBPAP) said KPM segment is acting as one of the major catalysts to achieve the "brain gain" bid of the country, as professionals like lawyers, accountants, artists, doctors, nurses, medical technologists, teachers, programers, animators, among others are now given wider choices for employment and avail of high-paying jobs, while top multinational firms are setting up their offshore offices in the Philippines.

"There are already a lot of new KPM companies and employing quite a number of people. Most of them are below-the-radar," said Sa-a.

Companies like Lexmark, JP Morgan, Accenture, NCR, IBM, QBE, among are examples of multinational giants which are expanding their KPO operations in Cebu

Bondoc also noted the high interest among multinational firms to establish their shared-service facilities in Cebu.

KPO or KPM type of outsourcing jobs pay a monthly salary of not less than P30,000, depends on the skills requirement of the company.

Recently, Senator Bam Aquino, chairman of the Senate Science Committee, called the government  to move with "urgency" to protect the 1.4 million Filipinos working in the business process outsourcing industry who might be displaced by the industry's shift to AI.

Aquino feared that possible job losses "might be higher" than the 44,000 estimated by an industry group last year.

Aquino suggested that the government should offer scholarships and vouchers from the Technical Education and Skill Development Authority to help BPO workers take advantage of new job opportunities with AI.