RP has ample room for BPO growth

CEBU, Philippines - Contact Center Association of the Philippines (CCAP) president Benedict C. Hernandez said that contrary to perception that Cebu is on its way to “saturation” in terms of hosting voice-services foroffshore requirements, Cebu is still keeping its “charm” as a preferred location.

Hernandez, who is also the senior vice president for Philippine operation of eTelecare Global Solutions said that based on his company’s experience, the hiring rate of Cebu remains at the same level as 2007 at two percent, which he said “is still good.”

However, Hernandez warned that Cebu should be quick in addressing probable concerns that will soon spoil the attractiveness of Cebu as an attractive site for contact center expansions and investments. These are the dangerous high attrition rate issue, poor supply of employable talents, and tougher competition of salary offered by companies, among others.

So far, he said Cebu is still keeping its attractiveness as a preferred location for call center companies, with good and in place infrastructure, and the growing number of available BPO-designed buildings.

“We [still] continue to enjoy good recruitment level,” Hernandez said.

Henandez further affirmed economists’ positive outlook of call center industry in the Philippines, of which the global financial crisis came as a “blessing in disguise” as more and more companies from abroad are realizing that adopting offshore services could help much in their cost-cutting measures.

Because of this, he said the country can realistically achieve the target growth of 15 percent to 20 percent on the average in the three years, and that employment opportunities for voice-offshore services will continue to grow.

Last year, the contact center industry in the Philippines posted a 15 percent growth, sustaining the country’s position as the “number one” site for voice-outsourcing services in the world.

Hernandez emphasized that Cebu should sustain its “upper-hand” in keeping a good supply of manpower. Otherwise, companies will also consider other provincial areas for expansion, especially those that are currently being pushed by the national government named as top “wave cities” like Laguna, Cavite and Iloilo.

Although, Cebu is already ahead of what the government is describing as “wave cities”, it has to seriously sustain its competitiveness, and that further development of highly qualified and fluent “English speakers” should be maintained.

CCAP held its first off-site (out of Metro Manila) board member last week in Cebu, as the group realized the importance to reach out the growing call center industry here and eventually make a Cebu chapter for CCAP.

Top bosses of known call center giants, like Hernandez’ eTelecare, Convergys, Sykes, among others were in Cebu, not only attend the CCAP board meeting, but also the network with prime movers in the business sector here, as well as industry players.

Hernandez also mentioned the current problem faced by most call center companies, including the entire BPO sector, of the availability of middle-management skills in supervisory and managerial levels that should be addressed properly by Cebu.

 As of end 2008, the contact center industry in the Philippines generated a total employment of 230 thousand, 80 percent of this is employed by call center firms located in Metro Manila and 20 percent is distributed in the provincial areas of which half of this is in Cebu.