Narayan AmmachchiThe Philippines’ IT-BPM industry body has committed to investing at least US$25 million a year to future-proof a workforce under pressure from rapid technological disruption driven by artificial intelligence (AI).
The move aims to protect jobs and maintain the sector’s global competitiveness as automation reshapes service delivery models.
To adapt, upskilling efforts are pivoting away from traditional communication-centric training toward advanced digital and technology-led capabilities.
Priority areas include AI applications, data analytics, and other knowledge-intensive functions that global clients increasingly demand. Industry players view this transition as critical to moving up the value chain and reducing vulnerability to automation.
The IT & Business Process Association of the Philippines (IBPAP) said member companies will establish dedicated learning and development teams to train new hires while reskilling existing employees.
Outsourcing remains a core pillar of the Philippine economy, contributing around 8% of gross domestic product and nearly one-fifth of the global outsourcing market. However, the sector is grappling with a tightening talent pool, rising competition from emerging outsourcing hubs, and the growing ability of AI to automate routine tasks.
Under its medium-term roadmap, IBPAP aims to expand industry employment to nearly two million workers and lift annual revenues to US$42 billion by 2026.
Government agencies have also earmarked funding to support large-scale training programmes beginning in late 2025, with the broader industry strategy focused on equipping hundreds of thousands of workers with in-demand digital skills over the coming years.
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