The Philippines' big offshoring industry is growing despite AI

(economist.com)

24 points | by nlpnerd 3 hours ago ago

25 comments

  • nlpnerd 3 hours 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".

    • watwut a minute ago

      > Hospitals in America are increasingly outsourcing the checking of insurance eligibility and filing of medical records to Filipinos packing AI tools

      So, insurance claims are handled by people who operate in different legal system and by unaccountable undererministic system. And people are pressured to perform fast.

      This is not about "automating complex task". This is about "create accountability sink for fraud we want them to do and create system that will perform said fraud".

    • jesse_faden an hour 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.

      • eru 34 minutes ago

        What's a GCC?

        • bakraman 26 minutes ago

          Global capability centers where they basically do the business processes and work for US/EU companies for fraction the cost.

          • ricksunny 8 minutes ago

            What happened to 'BPO'? cool kids?

          • eru 25 minutes ago

            Thanks. Sounds like a good deal.

          • nlpnerd 22 minutes ago

            TIL

        • lmz 31 minutes ago

          > so-called global capability centres, captive back offices that are booming in India ...

          • eru 30 minutes ago

            Thanks a lot!

    • dyauspitr an hour 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.

      • Ekaros 20 minutes ago

        Don't understand why this should not have been obvious. If you have technology that allows expensive workers to do things cheaper why wouldn't same technology allow cheaper workers to do stuff even cheaper... And cheap is good...

    • downrightmike an hour 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 an hour ago

        "Computer says no" has been a trope of terrible customer service long before AI.

        • kombookcha an hour 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.

          • gfrecvh an hour ago

            The people who say "computer says no" are also unaware that's a problem. It's invisible to them. To them the process is the point.

            I think that two arent as different as you believe.

            • kombookcha 44 minutes ago

              Well, possibly. To paraphrase the great American philosopher Donald Rumsfeld - there are known knowns, known unknowns, unknown knowns and unknown unknowns. And making the actual process a black box for the people managing it will create a lot more Unknown Unknowns.

      • seanmcdirmid an hour ago

        Has anything really changed for transparency?

      • dyauspitr an hour ago

        Your average devs are wrong more than the AI is at this point.

        • eru 32 minutes ago

          At a former job for a regional bank in South East Asia my boss used to joke that outsourcing is really great for the company, because now they can fail to deliver their software projects for cheaper.

  • firasd 13 minutes ago

    Overall it seems we don't have good intuitions for what kinda work AI 'displaces'. Years of hand-wringing about programmers being put out of a job and instead programmers are the ones paying $200/mo for LLMs

    And on the flipside a lot of AI vendor ideas like helping doctors turn voice transcripts into notes has just been annoying for the prospective user--they feel they may as well type it up themselves if they then have to review and correct the AI notes

  • MiroslavPokorny an hour ago

    YT videos from Philippines would disagree.

    • nlpnerd 21 minutes ago

      What YT videos?

      • sam_lowry_ 7 minutes ago

        About working conditions in Philippine Offshore Gaming Operators (POGOs) also known as scamming centers?

    • eru an hour ago

      People love to complain.