Call centers to generate $7.3B for RP by 2010

Annual foreign exchange earnings from the local call center industry will nearly triple to $7.3 billion in 2010, up from about $2.6 billion this year, an industry leader said yesterday.

Industry employment would rise to some 506,500 call center agents compared to 179,000 this year, said Call Center Association of the Philippines (CCAP) director Reinerio Borja.

Citing figures from the industry association and the government, Borja told an annual industry conference that call center employees would pay $8.6 billion in income taxes this year with more money spent on downstream industries such as office rentals and equipment supplies.

Borja also said the government should exempt the local call center and business process outsourcing industries from its plan to remove or reduce incentives to investors as the government temporarily tries to improve its fiscal position.

According Borja, who is also the concurrent chairman of the Business Process Association, removal of incentives would adversely affect investment decisions of potential investors especially at a time when there is strong competition to attract investments worldwide.

However, based on the CCAP’s own interpretation of government’s incentive policy, the call center and BPO industries would not be affected by the government’s plan to reduce or remove incentives.

According to Borja, the call center and BPO industries fall under the information technology and export-oriented category which the government is still nurturing.

The call center and BPO industries, Borja pointed out, are bringing in more economic benefits to the country than the telecommunications industry.

For instance, Borja claimed, the call center industry alone employs 179,000 workers and generates $2.6 billion in revenues.

The 179,000 call center employes contribute an estimated P8.6 billion by way income tax and P1.96 billion in contributions to the Social Security System, PhilHealth and Pag-Ibig funds.

Call center employers match their employes’ contributions by P2.86 billion.

Furthermore, Borja said, call center employes spend approximately P6.5 billion for food at P100 a day; P2.36 billion in transportation at P50 a day; P2.57 billion in cell phone load/bill at P300 a week; and P12.4 billion in other disposable income for housing, personal care, entertainment, clothing, medical care, etc. –With a report from AFP