PHL deemed well-positioned for AI-driven global capability centers

THE PHILIPPINES is well-positioned to meet demand for global capability centers (GCCs), though it must focus on upskilling to remain competitive, according to Ascendion Digital Solutions, a US software engineering firm.

“Philippine talent has proven that they are at most customer centric. They can do global delivery from here with bilingual capability covering multiple timezones… and that is going to continue for many years to come,” Ascendion Chief Commercial & Growth Officer Dharam Gurban said in an interview on Monday.

He noted that the workforce is more trainable compared to those in other markets and has shown a strong willingness to learn artificial intelligence (AI).

“A combination of the softer aspect (of servicing clients) and the Philippine geography make it unique,” Mr. Gurban said.

Ascendion is currently working with 14 GCCs in the Philippines across industries like banking & finance, healthcare, retail, and airlines.

Mr. Gurban said the company is looking to double the number of Philippine-based GCCs it is partnering.

“We want to double the size in the next 18 to 24 months,” he said.

“We have very strong local leadership here that is always looking at expanding our AI native software engineering capability,” he added.

Ascendion provides software engineering services to help transform traditional back offices to “AI-native centers.”

The company helps GCCs integrate intelligent software agents with human talent to automate information technology operations and accelerate software delivery. 

He noted that GCCs have evolved from cost arbitrage — which focuses on shifting work to lower-cost locations — to AI arbitrage, which centers on using automation to boost efficiency.

“Many GCCs right now are pivoting out from cost arbitrage to AI arbitrage,” he said. “This requires a massive change to driving innovation and value creation through agents and humans.”

Mr. Gurban noted while AI will not replace human workers, enterprises are responsible for upskilling their staff while AI takes over tedious tasks.

The Philippine GCC market is projected to reach $55.59 billion by 2030 from $35.12 billion in 2025, equivalent to a compound annual growth rate of 9.62%, according to Indian research firm Mordor Intelligence. — Beatriz Marie D. Cruz