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In focus
- Southeast Asia is quietly becoming the US’ AI back office
- Why our Patrick McGee interview on Apple’s China risk still matters
- SEA startup funding sinks to six-year low in H1 2025: report
Hello reader,
I live near what many may consider a BPO center in the Philippines.
In 1997, the Philippine government made Eastwood City a special economic zone, essentially granting tax benefits to business process outsourcing (BPO) firms like Accenture to entice them to set up shop in the country. Three decades later, the area is still abuzz with BPO firms.
It makes me wonder if a number of these offices are now catering to what US enterprises are increasingly seeking: AI development.
I learned while working on this week’s Top Story, that a number of Silicon Valley-based startups are hiring talent from Southeast Asia and India to help with their AI engineering needs, from building their MVPs to developing new product features.
Some US enterprises and SMEs have also begun to tap into these firms to build customized AI solutions. This is more cost-efficient after all, than hiring a full AI team at home.
A story from our archive also brings us to another Big Tech firm that has long relied on outsourcing: Apple. Our Q&A, published in July, with journalist Patrick McGee revealed how Apple has become more vulnerable due to its long-standing relationship with China.
It makes me think: How long will outsourcing be in vogue? At a time when many of the world’s great powers are taking a protectionist stance, the strategy is definitely no longer as foolproof as it once was.
Elyssa Lopez, journalist
Top Story
AI talent war pushes US firms to Asia’s outsourced coders
While Rabiloo still offers software development services, it’s quickly beefing up its AI capacities. / Image credit: Rabiloo
According to Deloitte, 70% of US organizations are outsourcing their software and innovative tech needs, which include AI. Our story reveals that many are looking to Southeast Asia, where some say the cost of AI engineering talent can be 50% to 70% cheaper than US teams.
From our archives
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