Call centers bullish on sustaining growth

CALL CENTERS in the Philippines expect revenues to increase 23% to $6.15 billion by yearend, sustaining the sector’s average annual growth rate.

The Contact Center Association of the Philippines (CCAP) bared this outlook at a conference yesterday, noting that demand abroad for cheaper services has strengthened after the downturn hit many clients’ bottom lines.

But long-term growth will be sustained only if the oft-cited concern over dwindling talent supply were addressed, along with the granting of more attractive incentives, industry leaders at the event.

So far, the local industry’s growth rate has outpaced that of India, CCAP President Benedict C. Hernandez said.

The 23% forecast revenue growth rate this year, he said, will mean a similar increase in the workforce to 344,000 agents by yearend.

“[However], the Philippines won’t be the low-cost solution [provider],” Teleperformance CEO Brent Welch said at the event.

“We have to develop complex solutions,” he stressed.

This, in turn, means more workers have to be trained — including for more sophisticated tasks — in order to support sustained industry growth, Mr. Welch said.

This goes hand in hand with honing basic skills, including the need to “drive foundational English at a younger age,” he added.

For his part, SPI Global CEO Maulik Parekh cited the need for “a revision of incentives given to new companies coming in or those [whose tax perks are about to expire].”

“This is important, as new countries [sic] like Vietnam and Latin America are becoming competitive. We have to attract and retain [companies here],” he said.

From the current six-year income tax holiday granted by the government, a 10-year period could be considered, he added.

CCAP Executive Director Jojo J. Uligan echoed this concern, noting at the sidelines that incentives have been effective, so far, and extending their terms or increasing the perks would mean higher gains for the Philippines. — Jessica Anne D. Hermosa, Businessworld