Where is the call centers in the Philippines going?

By Rolen J. Espera

MUCH has been discussed about the advent of the call center industry in our seemingly English-speaking country. Most agree that it brings in more jobs especially that the unemployment rate has drastically increased during the last decade. Some say that it’s an opportunity for those who want to go for a part-time job. There are others, particularly the fresh Filipino graduates, who find call centers as a popular option to earn big without leaving the country.

When the Americans decided to save labor costs and increase efficiency, there was no doubt that it will pull out talents from countries with relatively cheap labor. According to Forbes, the Top Ten countries for off-shoring (in random order) are China, India, Brazil, Malaysia, Czech Republic, Singapore, Chile, Poland, Canada, and, of course, the Philippines.

The country has a population of more than 80 million and there is an estimated 15,000 technology students that graduate annually—more than any other country on the list except for the four largest which are Brazil, Russia, India, and China. Forbes was also able to state the strengths and weaknesses. It cited the English language skills, the low costs, and the country’s cultural affinity for the U.S. as its strengths; whereas, the overall business environment, infrastructure, and the political instability are considered as weaknesses.

Overall, the Philippines is definitely attractive for offshore location based on 39 different factors in 3 categories: people skills and availability, cost, and the business environment.

Although the business environment is a form of weakness, the Philippine government was able to support the setup of call centers in various locations within the country. In 2006, it saw an unprecedented growth in call centers which expanded and generated more jobs for the Filipinos. It was also in that year when the highest recorded number of jobs where in call centers. According to the Bureau of Investments, only 24,000 people were employed in 2000. That brought in only $24,000 in revenues; however, in succeeding years more and more business outsourcing firms were able to set up operations and in 2005 already 120,000 skilled Filipinos were hired and the call center industry earned more than $1 billion in revenues for the country. In four years’ time, the country aims to capture five percent of the global business process outsourcing in an amount that totals as much as $10 billion.

Definitely, the call center industry is a sure economic booster. Not only has it widened job options for the people and generated revenues, it also introduced a venue for people who would like to work in a dynamic and creative environment. Usually, the general public perceives call centers as a form customer service; the latter however is a only a sub-sector of the business process outsourcing industry. Other BPO (business process outsourcing) services include engineering and architectural design, legal transcription, medical transcription, software development, and human resource management services among others.

Another problem that still exists though, as cited by the Department of Labor and Employment (DOLE), is that the English proficiency of the Filipinos is waning. It has been difficult in filling up call center seats since out of 100 applicants only 10 are expected to pass.

Labor Secretary Patricia Sto. Tomas said that this could be a cultural issue—that the Filipinos may do well in written English but when it comes to conversational English, there tends to be a problem. According to Sto. Tomas, Filipinos are not likely to correct the wrong usage of English in conversations as to not embarrass people.

In order to address the problem, DOLE together with its attached agency, Technical Education and Skills Development Authority (TESDA), met with the Department of Education (DepEd) and the Commission on Higher Education (CHEd) to come up with an action plan that would sustain the competitiveness of the Philippines in the global call center industry.

With that, language proficient staffs and language centers will be put up to help the Filipinos improve their language skills. The language centers will not only aid people who want to work for call centers but also those who choose to work abroad as continuous demands for engineers, nurses, seafarers, waiters and other hotel and restaurant positions are made available through the years. Consequently, this move will increase the competitive level of Filipinos in terms of education.

It is then inevitable that for call centers to continue operating in the Philippines, it must have a working relationship with its people. That relationship involves a high salary offer, better health insurance, and the possibility of faster promotion. It also creates a new type of working environment fit for the young generation of Filipinos who continually seek a job that seems global.

Call centers in the Philippines are in every way helping out in providing more jobs and increasing the country’s annual revenue. And with its attractive job offers and employment compensations, it should continue to haul in more and more Filipinos into working with them. Wherever the call center industry is going, it surely is no way down.*