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The Philippines is racing to defend its share of the nearly $300 billion global business process outsourcing market as it battles deteriorating talent, rising competition and rapidly evolving artificial intelligence.

The Southeast Asian nation, the world’s second-largest provider of outsourcing services, is producing a “low ratio” of graduates with the required level of communication and technical skills, potentially losing out on opportunities to add 800,000 jobs in the next five years, according to industry group IT & Business Process Association of the Philippines.

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