{
  "id": 6152495,
  "title": "Philippines outsourcing sector holds up amid AI concerns",
  "url": "https://urgent.news/2026/09/07/philippines-outsourcing-sector-holds-up-amid-ai-concerns",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-07T16:00:00.000Z",
  "source": {
    "name": "Philippine Star Business",
    "slug": "philippine-star-business",
    "url": "https://www.philstar.com/business/2026/09/08/2554674/philippines-outsourcing-sector-holds-amid-ai-concerns"
  },
  "original_language": "en",
  "account": "Manila, Philippines — Despite concerns surrounding artificial intelligence (AI), the Philippines' outsourcing industry has continued to thrive, according to HSBC Global Investment Research. The bank's report reveals that business service exports and related employment in the Philippines have expanded steadily in recent years, primarily driven by the business process outsourcing (BPO) sector. HSBC noted that the export revenues from \"other business services\" (mainly from the BPO sector) rose steadily since 2023, showing no signs of collapse. The bank acknowledged a slower growth rate since 2023 compared to pre-pandemic years, yet the sector maintained a healthy expansion pace. HSBC highlighted the Philippines and India as key economies in its analysis due to the critical role outsourcing plays in both nations. While AI's potential to automate a significant portion of outsourced work has raised concerns about the outsourcing business model and employment, the report found no evidence of a substantial downturn in regional export and employment trends. The average annual growth in other business service exports after 2022 was higher than the three years prior to the pandemic across much of Asia. HSBC cautioned that the ongoing expansion does not imply a total escape from job disruption, as some roles have become obsolete and others are in greater demand due to shifting skill requirements. The bank suggested two possible explanations for the industry's resilience: AI may not have fully impacted the sector yet or it could be enhancing outsourcing operations' efficiency. Technologies like AI could improve worker productivity, simplify quality control, and enable more remote work for outsourcing firms in countries like the Philippines and India. HSBC emphasized that the continued need for human involvement in the outsourcing process helps maintain cross-border demand for services, ensuring that AI has not undermined the importance of sourcing business services from abroad.",
  "summary": "The Philippines has yet to see an artificial intelligence (AI)-driven collapse in its outsourcing industry, with business service exports and related employment continuing to expand, according to HSBC Global Investment Research.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}