The Philippines aims to turn New Clark City into a regional AI hub by partnering with major Indian business process outsourcing (BPO) firms. The strategy centers on capturing overflow AI projects from India, the world’s largest outsourcing market, and anchoring them in Clark’s modern, master-planned business district, with a target of creating up to 50,000 high-value jobs over the next five years.
From back office to brain trust: Tapping India’s AI Momentum
According to a BusinessWorld report, the Department of Information and Communications Technology (DICT) is in discussions with Indian outsourcing leaders such as Infosys and Wipro, both of which already operate in the Philippines.
DICT Secretary Henry Rhoel Aguda said the government is developing a framework to channel India’s growing AI workload into New Clark City. Many Indian firms already maintain disaster recovery and secondary delivery sites in the country, a foundation the government sees as a springboard for AI labs and innovation centers.
New Clark City offers a strategic advantage: purpose-built infrastructure, room for expansion, and proximity to Metro Manila without congestion challenges. Analysts note that the Philippines’ young English-speaking workforce and its decades-long outsourcing track record strengthen its case as a natural extension of India’s global delivery ecosystem.
The initiative reflects a broader shift. Rather than competing solely on cost, the Philippines aims to move up the value chain into AI development, machine learning operations, and advanced analytics.
Beyond AI: Deepening Philippines–India tech alliance
The AI hub proposal is unfolding alongside the expansion of bilateral cooperation. As India and the Philippines celebrate 75 years of diplomatic ties, business leaders have identified AI, defense, and BPO as priority growth sectors.
DICT officials are also exploring joint initiatives in cybersecurity training, semiconductor workforce development, and mutual recognition of digital certifications, steps aimed at ensuring Filipino talent meets international technology standards.
The effort aligns with the Philippines’ broader economic reforms and regional ambitions. Speaking at the ASEAN Editors and Economic Opinion Leaders forum, Finance Secretary Frederick Go underscored the country’s focus on digital industries, semiconductor assembly, and high-value services as pillars of future competitiveness.
“Speed, predictability, and follow-through matter. That is why we pushed for big, bold reforms, making the Philippines the most open and investment-ready it has ever been,” said Go.
If successful, New Clark City could emerge as a critical node in Asia’s AI supply chain, transforming the Philippines from a global outsourcing stronghold into a Southeast Asian center for next-generation digital innovation.
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Macayan, D. (2026, February 27). Philippines eyes New Clark City as AI hub via Indian BPO partnerships. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/new-clark-city-ai-hub/
Sarmiento, D. (2025, November 20). Philippines, India eye stronger partnerships in defense, BPO, other industries: Indian chamber. ABS-CBN News. Retrieved from https://www.abs-cbn.com/news/business/2025/11/20/philippines-india-eye-stronger-partnerships-in-defense-bpo-other-industries-indian-chamber-1304
