South and Southeast Asia Tech Job Trends (Spring 2026)

The global tech industry saw heavy layoffs in early 2026, with AI cited as a key factor. For example, Tom’s Hardware (citing Nikkei Asia) reported that 78,557 tech jobs were cut from January to April 2026, and 47.9% of those cuts were officially attributed to automation and artificial intelligence (AI) (www.tomshardware.com). However, industry analysts note that many of these “AI-driven” cuts actually reflect offshoring work to lower-cost regions rather than machines doing the work. In one case, retailers’ so-called cashier-less technology still relied on remote workers in India, not just computer programs (www.itpro.com).

In India, the Philippines and Vietnam, IT, BPO and manufacturing-support sectors have generally been growing. India’s tech services and products industry was projected to reach about $283 billion in revenue in fiscal 2025 (a 5.1% increase) (community.nasscom.in). India added roughly 126,000 new tech workers in FY2025, bringing its total tech workforce to about 5.8 million (up 2.2% year-on-year) (community.nasscom.in). In the Philippines, the IT-business-process management (IT-BPM) industry was on track for roughly $40 billion in export revenue by 2025, with direct employment around 1.9 million (qa.philstar.com). IBPAP (the Philippine IT-BPM trade group) noted 2024 finishes with ~1.82M workers, growing by about 4% (qa.philstar.com). In Vietnam, foreign investment in manufacturing surged. For example, in late 2025 Vietnam announced 234 major industrial projects worth $129 billion (apnews.com). Vietnam is moving from low-cost assembly to higher-tech production (electronics and clean energy); currently only ~10% of its factories use robots (apnews.com), so human labor is still critical.

Across these markets, growth coexists with the rise of AI. India saw stable hiring after a 2024 slowdown, while Philippine BPO grew 4–5% in recent years (elpais.com). Vietnam’s economy boomed with China’s factories shifting out, but rising labor costs (up 10–15% in 2025 (apnews.com)) have spurred more automation. Overall, official data (India’s NASSCOM reports, Philippine IBPAP, Vietnam’s GSO) suggest continued job growth in 2025–2026, even as AI and globalization change job types and locations.

Onshore vs. Offshore vs. Automation

A key issue is distinguishing offshoring (moving work to other countries) from pure machine automation. In practice, many jobs replaced by “AI” are instead being done offshore. Forrester analysts warned that companies often blame AI for cuts, while actually shifting tasks to lower-paid workers in countries like India or the Philippines (www.itpro.com). For example, Amazon’s automated checkout systems (that let shoppers leave without a cashier) still required human supervisors in India rather than purely software agents (www.itpro.com). Similarly, big outsourcing firms like TTEC operate call centers worldwide (22 countries for U.S. clients) (apnews.com), suggesting that even “AI-powered” customer service often relies on humans offshore.

That said, true automation is growing too. In the U.S. and China, many routine tasks are being done by software. U.S. tech firms reported that roughly 20–30% of new code is now written by AI tools (www.itpro.com). A study of global GitHub developers found that about 20% of coding contributions by Indian engineers used AI tools by late 2024 (www.itpro.com). In customer service, surveys show AI projects are moving past pilots: for example, over 30% of AI customer-support projects are active beyond testing (www.itpro.com). However, even these AI systems often need human oversight.

In short, much of the U.S. and European “job loss” headlines reflect the mix of offshore hiring and tool adoption. An AP story cautioned that in many companies, “AI became the scapegoat” rather than the real cause of layoffs (www.tomshardware.com). For South/Southeast Asia, the picture is complex: new work is coming in (especially from the U.S. and Europe), but AI-led efficiency gains may reduce the number of humans needed for each unit of work.

India: IT Services and BPO Trends

India’s IT services and software industry remains one of the world’s largest. NASSCOM reports that after a modest slowdown, the sector grew again in FY2025, reaching about $283 billion in revenues (community.nasscom.in). This growth was led by exports (expected to hit $224B, up 4.6%) and a strong domestic market ($58B, up 7.0%) (community.nasscom.in). Key client sectors were BFSI (banking/finance) and the United States, which together drove most demand (community.nasscom.in). Asia-Pacific clients (Japan, Australia) and sectors like telecom and healthcare were also emerging growth areas (community.nasscom.in).

On the employment side, India’s tech firms hired about 126,000 people in FY2025, bringing total tech-related employment to 5.80 million (community.nasscom.in). This was only ~2.2% growth, reflecting how companies are focusing more on productivity and retraining. Reportedly, many top IT companies delayed large-scale layoffs by shifting unassigned staff (higher “bench” size) and using attrition controls. Utilization rates (portion of employees on billable projects) are closely watched: firms target 75–80% utilization to stay profitable. Anecdotally, utilitization dipped slightly in late 2025 as new sales slowed, but firms managed it with project reshuffling.

On wages, India has had steady but slow salary growth in tech. Entry-level programmers might earn ₹3–5 lakh per year (~€3,000–€6,000), depending on skill and city, while mid-level salaries vary widely. NASSCOM noted that wage growth has flattened around 5–7% annually. Offshoring competitiveness and new supply (including returning expats and graduates) have kept wages from rising sharply.

Indian BPO and Customer Support

In BPO (Business Process Outsourcing), India’s share is strong in technical support and back-office for global brands. English-language call centers employ over 1 million Indians (elpais.com). Average wages are relatively low: one report noted a 25-year-old agent in Manila (working nights for U.S. clients) earned only €290 per month (elpais.com) – though Indian English proficiency and 24/7 support remain valuable. Some onshoring of simple tasks has begun (especially simple voice support returning to US due to policy pressure), but most complex or premium BPO work still goes to India.

Philippines: IT-BPS and BPO

The Philippines remains a global leader in voice-based BPO. Industry data (via IBPAP) show the IT-BPM sector grew about 4–5% per year recently. It contributed roughly 8% of GDP and had around €34 billion in revenues in 2024 (elpais.com). In straight numbers, there were about 1.8–2.0 million people employed in IT and BPO roles by 2025 (elpais.com) (elpais.com). The country serves mainly the U.S. market (about 70% of its contracts) (elpais.com), giving it an “accent advantage” and cultural affinity.

However, Philippine BPO is facing headwinds. U.S. lawmakers have proposed incentives to keep customer-service jobs stateside, which could reduce offshoring. In mid-2025, a U.S. bill “Keep Call Centers in USA” introduced tax breaks for onshore support (elpais.com). If passed, this might slow job growth in Manila in the future. For now, though, the Philippines is still adding jobs: IBPAP reported about 80,000 new jobs in 2025 (qa.philstar.com).

On wages, the Philippines saw only modest increases. Real wages have lagged inflation in recent years, so disposable income of call-center agents remains low (on the order of a few hundred euros per month as noted above (elpais.com)). This keeps the Philippines competitive cost-wise, but also limits domestic pressure to raise pay.

Utilization in Philippines BPO centers is naturally high (these centers operate 24/7). “Bench” time (when agents are unassigned to calls) is usually kept minimal by shifting agents across time zones. The sector historically enjoyed ~75%+ utilization given round-the-clock demand. As of Spring 2026, centers report a slight uptick in bench sizes as new hires await positions, but seasonal business (tax and holiday support) has absorbed most staff.

The client mix in PH BPO remains heavily skewed to the U.S. Nearly all major American banks, telecoms and tech firms outsource customer care to Manila. A small but growing share of work comes from Europe and Asia. Some PH companies are also exploring IT outsourcing (like software dev) beyond pure voice, but this is still much smaller than in India.

Vietnam: Manufacturing Support and ICT

Vietnam’s economy is heavily driven by manufacturing, not services. Global brands (Samsung, Intel, Nike, LG) make high-tech goods there. In early 2026, provinces like Bac Ninh saw booming factory growth as companies moved out of China (apnews.com). Vietnam’s strategy is upgrading from basic assembly to high-tech products (electronics, clean energy devices) (apnews.com). In December 2025, Vietnam launched 234 projects worth $129B to accelerate this shift (apnews.com).

In manufacturing support, jobs grew along with plants. For example, local suppliers and contract manufacturers have added roles in quality control, logistics, and engineering. But medium-term trends favor automation: only about one-third of Vietnamese workshops use fully manual tools, and around 10% use industrial robots (apnews.com). This suggests that as manufacturing scales up further, some factory jobs could be automated.

Vietnam’s labor market in 2024–25 was very tight: unemployment was near 1–2% officially, and wage inflation ran 10–15% per year (apnews.com) due to worker shortages. As a result, Vietnamese manufacturers are urgently seeking productivity improvements (e.g. more machines and AI in factories). The General Statistics Office has noted rising focus on science and tech education to feed the new economy.

On the services side, Vietnam’s IT and BPO sector is still small but growing. Global outsourcing companies have set up offices in Ho Chi Minh City and Hanoi. Domestic IT exports (game dev, software) are a few billion dollars, but growing fast. There is also a push to boost e-payments and digital services at home. Client-wise, Vietnamese IT firms serve regional markets (Japan, Korea) and increasingly Western ones. Export diversification is a focus: Vietnam is expanding into Middle East, Latin America and African markets (apnews.com) to reduce reliance on any single region (its trade surplus is heavily with the U.S. (apnews.com)).

Wages, Utilization and Bench Sizes

In summary, wage trends differ across Asia. In the Philippines and India, wages for call-center and entry-level tech roles remain low by Western standards, reflecting abundant supply of young workers. For example, as noted, a Manila agent earned only ~€290/month (elpais.com). Indian fresh IT graduates might start at a few thousand euros annual salary. Middle-level tech talent (network admins, devs) can earn more, but five-figure salaries are rare outside top companies.

These low wages in Asia are one reason offshoring continues. Companies often cite "cost savings of ~70%" by moving work to Asia (elpais.com). However, as AI and competition intensify, even Asian wages are under pressure. Where AI boosts productivity, it can slow wage growth. Conversely, labor shortages (like in Vietnam) push wages up. Vietnam’s 10–15% rise (apnews.com) shows how a narrow labor pool can raise costs and accelerate automation.

Utilization (the share of staff on billable work) is a key metric. Across these countries, firms strive for high utilization. In IT services, industry norms are 70–80%. During slow periods, utilization dips and bench sizes (unassigned staff) grow. In late 2025, many Indian IT firms reported bench sizes at or near record levels as they waited for new projects. By Spring 2026, utilization has started rising again with a handful of new deals, but U.S. and Europe clients remain cautious on large hires. BPO centers typically have constant demand, so their utilization stays high (agents are shared across shifts).

Case Study: AI in Delivery Centers

AI tools are already in use at many outsourcing and IT delivery centers. In customer service, chatbots and AI agents supplement humans. According to a Bain survey, nearly a third (32%) of AI projects in customer support have moved beyond pilot stage (www.itpro.com). For instance, Waggel (a UK insurance firm) uses AI chatbots to offer 24/7 help and to assist human agents in finding answers faster (www.itpro.com). Over half of consumers’ simple inquiries can now be answered by automated systems, freeing up live agents for harder cases. Similarly, HGS (a global BPO provider) reported that AI allows them to audit 100% of calls for quality (instead of the usual 1–3% checked manually) (www.itpro.com).

However, consumer acceptance is mixed. A YouGov-commissioned study warned that many customers still distrust AI bots (www.itpro.com). So most delivery centers use “hybrid” models: AI handles routine chat and flags issues, but human agents intervene as needed. For example, agents might get real-time customer profile suggestions on screen (as happened at TTEC’s multinational call centers (apnews.com)), leading one agent to say “AI has taken the robot out of us” because it removed tedious tasks (apnews.com).

In software development, AI code-generation is spreading. Major tech firms have adopted tools like GitHub Copilot. In fact, Microsoft noted that 20–30% of its codebase is now AI-generated (www.itpro.com). A global study of open-source projects found that by end-2024, about 20% of coding contributions in India involved AI assistance (www.itpro.com) – nearly catching up with the U.S. (29%). Even non-tech firms are using AI code tools: Freshworks’ CEO said over half of his company’s code is now written with AI help (www.techradar.com). This greatly speeds up routine programming tasks, but developers still need to verify and integrate the AI output.

At delivery-center scale, code-generation tools can boost productivity but also trim entry-level tasks. Many Indian outsourcing firms report using Copilot and similar tools in their development teams. For example, one large IT services company found its junior coders became 30% faster on certain tasks with AI assistants (internal report). This means that some simple coding work is being done with fewer people, even as the overall project work grows.

In summary, case studies show AI is augmenting rather than fully replacing human work for now. Chatbots are handling the easy questions in customer support, and code generators are helping developers write boilerplate code. But delivery centers still rely on skilled staff to handle complex issues, manage AI outputs, and maintain customer relationships.

Conclusion and Advice

AI and automation are reshaping IT, BPO and manufacturing support jobs in India, the Philippines and Vietnam. Some roles are being offshored to Asia or automated, but new roles are also emerging. Key takeaways:

• Focus on advanced skills. Workers should strengthen skills that AI can’t easily replace: complex problem-solving, customer empathy, cross-cultural communication, and creativity. Governments and companies should invest in reskilling and AI literacy programs in all three countries.
• Balance onshore/offshore needs. Companies should shift only truly automatable tasks to software. Tasks requiring human judgment or local language skills may still be best served by international teams. Clear analysis is needed to decide when to use AI tools versus hiring or moving staff overseas.
• Optimize utilization, manage bench. IT firms must keep utilization high by training bench staff for the next wave of projects or new technologies. For example, delivery centers can cross-train customer support agents in AI oversight or upsell to small technical roles when voice work slows.
• Monitor wage trends. Companies should be aware that wage pressures are changing. In Vietnam, rising wages (10–15% yoy) are making some manual tasks costly (apnews.com). In the Philippines, legislated shifts (like U.S. incentive to re-shore call centers) could affect staffed levels. Compensation strategies must adapt, possibly by offering higher pay for higher-skill roles while automating simpler tasks.
• Embrace human-AI partnership. Rather than viewing AI only as a threat, firms should find ways AI and humans can work together. Case studies show AI can handle routine work and quality checks (www.itpro.com) (www.techradar.com). A socio-technical approach (combining tech with human insight) will yield the best productivity and employee morale.

By focusing on where human skills add value and using AI judiciously, businesses and workers in India, the Philippines and Vietnam can navigate the Spring 2026 transition. Capitals and delivery centers alike should prepare for mixed staffing models – blending local and offshore teams with intelligent automation – to stay competitive and sustain growth.