Artificial intelligence (AI) is driving a transformation within the business process outsourcing (BPO) industry – leading to new roles, increased productivity, and the delivery of more complex services. AI often works to augment human agents rather than completely replace them. It analyzes large amounts of data quickly, providing insights and real-time assistance the help human workers resolve complex and emotionally nuanced issues more efficiently.

As routine tasks are automated, the BPO workforce has shifted toward roles that require critical thinking, emotional intelligence, and specialization. The future involves a hybrid approach where AI handles transactional tasks while human agents focus on building relationships and solving difficult problems – resulting in improved customer satisfaction.

The Philippine BPO industry is undergoing a massive re-skilling phase marked by a shift from a labor-arbitrage model to a high-value, specialized-skills model. According to the IT and Business Process Association of the Philippines (IBPAP), it is projected to grow in revenues to $42 billion in 2026 and employ 1.97 million Filipinos. Almost 50 percent of BPO firms are already embedding AI, and over 70 percent are aiming for high AI maturity by 2028.

In the medium term, the industry’s competitive advantage will pivot from being the cheapest workforce to the best problem-solvers. Its focus would be on improving the overall customer experience (CX) that AI cannot replicate.

IBPAP President Jack Madrid cited two key opportunities for the local BPO industry: the rise of global capability centers (GCC), and the integration of generative and agentic AI into CX – otherwise known as Intelligent Outsourcing. The GCC segment is growing rapidly as multinational companies shift from purely outsourcing to establishing their own in-house shared service centers.

A pioneer in the field of Intelligent Outsourcing is PuzzleBox BPO Inc., a Manila-based firm that has redefined how enterprises view outsourcing. Last month, PuzzleBox represented the Philippines at The Business Show Asia 2025 held at Marina Bay Sands in Singapore. The event gathered over 250 exhibitors, 150 seminars, and exclusive master classes designed to equip businesses with tools and connections for growth in today’s fast-evolving economic landscape.

“Intelligent Outsourcing is about understanding the bigger picture. Our goal is to empower businesses with not just manpower but with the right data and technology to improve their operations and achieve sustainable growth,” PuzzleBox co-founder and COO Apple Esplana-Manansala explained.

During her presentation, she shared the company’s journey of a dozen years in delivering outsourcing solutions that go beyond the traditional model as she introduced international entrepreneurs and decision-makers to the concept of Intelligent Outsourcing. Together with PuzzleBox founder and CEO Erwin Manansala, their vision is to integrate people, technology, and strategy so that businesses can scale smarter and sustain their success.

PuzzleBox launched its partnership with Ronin Collective of California and Australian tech firm CanTicket during the Singapore business show. Ronin Collective specializes in data science and creative intelligence – harnessing online data to design data-driven brand campaigns. CanTicket provides a powerful platform for clients across the Asia-Pacific region in managing their operations seamlessly.

By combining tech innovation and outsourcing expertise with creative insights, the three-way partnershp underscores their shared mission to provide dynamic, end-to-end solutions that help businesses grow faster and smarter. Amid the ongoing AI disruption, this collaboration can thrive by building an ecosystem around human intelligence augmented by machine precision. Such a resilient strategy will future-proof the synergized troika as they offer AI-enhanced outsourcing with a human core.