BPOs weaponize AI to beat India in sourcing

The local contact center and business process management (CC-BPM) sector is aggressively integrating artificial intelligence (AI) to shield margins and accelerate revenue growth, betting that automation will counteract escalating geopolitical and macroeconomic headwinds.

- By DEXTER BARRO II

According to data released by the Customer Xperience Association of the Philippines (CXAP) during a press conference on Monday, June 8, the industry is projected to expand by more than five percent this year, with total revenues climbing to P2.20 trillion from P2.09 trillion recorded in 2025.

This expansion is happening alongside a steady workforce increase, with full-time headcount tracking toward 1.73 million employees, up nearly three percent from 1.68 million a year ago.

Rather than cannibalizing the sector, generative AI is acting as a premium pricing mechanism. CXAP President Haidee Enriquez noted that average revenue per full-time employee is forecasted to rise to between P1.3 million and P1.36 million this year, a sharp increase from last year’s average of P1.23 million. The productivity gains from AI are allowing firms to command higher contractual fees from enterprise clients by demonstrating superior, faster returns on investment.