AI seen to boost productivity in BPO industry | ABS-CBN
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AI seen to boost productivity in BPO industry
AI seen to boost productivity in BPO industry
Jessica Fenol,
ABS-CBN News
Published Jun 27, 2023 03:22 PM PHT
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Updated Jun 27, 2023 04:59 PM PHT
MANILA — The use of generative AI such as ChatGPT could boost the productivity of the business process outsourcing industry, the Contact Center Association of the Philippines said on Tuesday, allaying fears the technology could lead to job losses.
MANILA — The use of generative AI such as ChatGPT could boost the productivity of the business process outsourcing industry, the Contact Center Association of the Philippines said on Tuesday, allaying fears the technology could lead to job losses.
Like automation, which has reduced the repetitive tasks in the BPO sector over the past years, generative AI can also be a good thing, CCAP President Mickey Ocampo said in a briefing.
Like automation, which has reduced the repetitive tasks in the BPO sector over the past years, generative AI can also be a good thing, CCAP President Mickey Ocampo said in a briefing.
Generative AI "on our end is our enabler, like automation," Ocampo said, citing chatbots and virtual assistants as examples.
Generative AI "on our end is our enabler, like automation," Ocampo said, citing chatbots and virtual assistants as examples.
"Generative AI can be used to automate and enhance various aspects of customer interactions," he added.
"Generative AI can be used to automate and enhance various aspects of customer interactions," he added.
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The technology can take over tasks such as searching and gathering data to reduce transaction time, improve customer experience and raise the productivity of workers in the industry, said HGS President and CEO Pushkar Misra, a CCAP member with operations in the Philippines.
The technology can take over tasks such as searching and gathering data to reduce transaction time, improve customer experience and raise the productivity of workers in the industry, said HGS President and CEO Pushkar Misra, a CCAP member with operations in the Philippines.
He said generative AI "actually considerably reduces the transaction time…and improves the quality of the transaction because if the customer is in front you know you don't have to put him on hold, you don't have to to make him wait."
He said generative AI "actually considerably reduces the transaction time…and improves the quality of the transaction because if the customer is in front you know you don't have to put him on hold, you don't have to to make him wait."
"Generative AI is now the next level of software technology which actually is a good opportunity for our folks in this industry to actually move up the value chain," he added.
"Generative AI is now the next level of software technology which actually is a good opportunity for our folks in this industry to actually move up the value chain," he added.
GROWTH TARGETS
Ocampo said the actual impact of generative AI could be reflected in the industry's figures in the next 2-4 years.
Ocampo said the actual impact of generative AI could be reflected in the industry's figures in the next 2-4 years.
Revenues of the country's Information Technology and Business Process Management (IT-BPM) IT-BPM sector, which includes business process outsourcing, is expected to hit $59 billion by 2028, from $32 billion in 2022, CCAP said in a briefing.
Revenues of the country's Information Technology and Business Process Management (IT-BPM) IT-BPM sector, which includes business process outsourcing, is expected to hit $59 billion by 2028, from $32 billion in 2022, CCAP said in a briefing.
In the roadmap released in the third quarter of 2022, the industry also aims to add 1.1 million full-time jobs (FTEs) to bring its total workforce to 2.5 million by 2028, from the current 1.57 million.
In the roadmap released in the third quarter of 2022, the industry also aims to add 1.1 million full-time jobs (FTEs) to bring its total workforce to 2.5 million by 2028, from the current 1.57 million.
CCAP Managing Director Rosario Cajucom Bradbury is optimistic that this growth target could be achieved.
CCAP Managing Director Rosario Cajucom Bradbury is optimistic that this growth target could be achieved.
"The 2 to 4 years means it's not going to change our numbers in the next 4 years. It is achievable. Some of the companies already implemented, some are still staging," Bradbury said.
"The 2 to 4 years means it's not going to change our numbers in the next 4 years. It is achievable. Some of the companies already implemented, some are still staging," Bradbury said.
"When that happens, it can only be upside good. Because it will increase productivity and efficiency and we can accommodate more jobs," she added.
"When that happens, it can only be upside good. Because it will increase productivity and efficiency and we can accommodate more jobs," she added.
CCAP projects the industry's contribution to the country's gross domestic product (GDP) growth to increase to 8.9 percent in 2028 from 7.5 percent.
CCAP projects the industry's contribution to the country's gross domestic product (GDP) growth to increase to 8.9 percent in 2028 from 7.5 percent.
It is also likely to "overtake" remittances and become the country's biggest source of foreign exchange by 2028, the group said.
It is also likely to "overtake" remittances and become the country's biggest source of foreign exchange by 2028, the group said.
In 2022, the IT-BPM industry generated $32 billion in revenues. Meanwhile, cash remittances in 2022 hit $32.54 billion, according to government data.
In 2022, the IT-BPM industry generated $32 billion in revenues. Meanwhile, cash remittances in 2022 hit $32.54 billion, according to government data.
Infrastructure, ease of doing business and talent will be among the key drivers of growth in the future, CCAP said.
Infrastructure, ease of doing business and talent will be among the key drivers of growth in the future, CCAP said.
The group also said it aims to develop and increase the share of operations in other key cities outside Metro Manila to 40 percent from the current 30 percent.
The group also said it aims to develop and increase the share of operations in other key cities outside Metro Manila to 40 percent from the current 30 percent.
CCAP said it is working with the Department of Information and Communications Technology (DICT) to amplify the potential of these emerging cities and connect them with investors.
CCAP said it is working with the Department of Information and Communications Technology (DICT) to amplify the potential of these emerging cities and connect them with investors.
The DICT so far has identified 31 "digital cities" or areas that could support industry expansion with the right infrastructure, talent and telco services, among others.
The DICT so far has identified 31 "digital cities" or areas that could support industry expansion with the right infrastructure, talent and telco services, among others.
Ocampo said more investors have expressed interest in expansion and entry to the Philippines including 2 Japanese firms and 1 local company.
Ocampo said more investors have expressed interest in expansion and entry to the Philippines including 2 Japanese firms and 1 local company.
CCAP is set to hold its Contact Island Conference 2023 in Cebu next month to discuss the role of generative AI in its growth as well as its roadmap.
CCAP is set to hold its Contact Island Conference 2023 in Cebu next month to discuss the role of generative AI in its growth as well as its roadmap.
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