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The Philippines' big offshoring industry is growing despite AI

https://www.economist.com/asia/2026/08/06/the-philippines-big-offshoring-industry-is-growing-despite-ai
16•nlpnerd•2h ago

Comments

nlpnerd•2h ago
From a recent article in The Economist. It turns out that once again many of the jobs that people predicted would be eliminated by AI have instead received a boost, at least for now. This closely follows another recent report on how Indian BPO firms are surprisingly thriving due to AI.

"Moreover, AI is helping offshore workers in the Philippines do new, more complex jobs. They are picking up work training AI models or supervising AI agents. Hospitals in America are increasingly outsourcing the checking of insurance eligibility and filing of medical records to Filipinos packing AI tools. Mr Gallimore says more “high-value” work, such as accountancy or engineering, is going offshore in part because “AI is a leveller. You can now teach someone complex stuff quickly” and still get it done more cheaply than in America or Europe. Some of this is done at so-called global capability centres, captive back offices that are booming in India and also now growing in the Philippines."

It seems like AI has incidentally commoditized the complement (procedural knowledge), and in turn created greater demand for inputs like human judgement and "empathy".

downrightmike•36m ago
Ooph, now the AI will be wrong and the human won't know it. And that's running our... let me see... life saving care. Cool. cool. cool.
decimalenough•34m ago
"Computer says no" has been a trope of terrible customer service long before AI.
kombookcha•17m ago
"Computer says no" is about unhelpful bureaucracy. Being knowingly locked to a specific procedure and unwilling to divert from it is a different thing from mistakes being made that you are blissfully unaware of. The problem is now invisible and the patient is dying for no reason anyone can discern.
seanmcdirmid•19m ago
Has anything really changed for transparency?
dyauspitr•11m ago
Your average devs are wrong more than the AI is at this point.
dyauspitr•12m ago
Yeah, paradoxically Indian software outsourcing is growing. I guess the way the companies are thinking about this is we need some sort of human oversight for all the work the LLMs are doing, might as well pay someone the least amount possible to do that.
jesse_faden•3m ago
I visited India recently and when I saw just how many companies have a GCC there I was mindblown. Lots of cool offices, engineering and technical roles, great work life balance and generally a different vibe. Literally every company that I could recognise had a back office there.
MiroslavPokorny•36m ago
YT videos from Philippines would disagree.
eru•28m ago
People love to complain.

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The Philippines' big offshoring industry is growing despite AI

https://www.economist.com/asia/2026/08/06/the-philippines-big-offshoring-industry-is-growing-desp...
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