Call center industry jacks up revenue, jobs targets through 2016

MANILA – After last year’s faster than expected growth, the call center sector has revised upward its targets for 2016 to $15 billion in revenues and 876,000 jobs, a Contact Center Association of the Philippines (CCAP) report obtained by InterAksyon.com showed.

Revenues of call centers in the country last year totaled $8.6 billion, up by a fifth from $7.1 billion in 2011 and higher than the $8.4 billion target for 2012.

While keeping its 15-percent compounded annual growth rate (CAGR) projection for 2013 to 2016, CCAP adjusted upwards the revenue targets for each of the four years to take into account last year’s faster-than-expected expansion. The new revenue projections for this year and the next three years are as follows:

– 2013: $9.9 billion (formerly $9.7 billion);

– 2014: $11.4 billion (formerly $11.1 billion);

– 2015: $13.1 billion (formerly $12.8 billion); and

– 2016: $15 billion (formerly $14.7 billion).

Employment in call centers rose 21 percent to 502,000 last year from 416,000 in 2011 and exceeded the 2012 target of 493,000.

For 2013 to 2016, the adjusted job generation targets, with a 15-percent CAGR, are as follows:

– 2013: 577,000 (formerly 567,000);

– 2014: 663,000 (formerly 652,000);

– 2015: 762,000 (formerly 750,000); and

– 2016: 876,000 (formerly 862,000).

Last year, customer service and retention comprised 52.5 percent of the call center accounts served in the Philippines. Sales services had a 15.9-percent share, while technical support composed 9.3 percent of the contact center pie. CCAP said technical support, back-office processing support, and information technology (IT) helpdesk services were growing sectors.

In 2012, close to 35 percent of call centers in the country had telecommunications accounts, while almost 20 percent provided banking, finance and insurance services. More than 15 percent served clients in retail and consumer products.

Banking, finance and insurance was the fastest-growing segment last year, while voice services for gaming and healthcare were emerging markets, CCAP said.

English remains the top language supported by Philippine call centers, with a 98.3-percent share of voice accounts served here last year. American English accounts comprised 75.2 percent, lower than its 82.5-percent share in 2011.

UK and Australian English clients jumped to 14.7 percent (from 12.3 percent in 2011) and 8.2 percent (from 3.7 percent previously), respectively. The share of Asian languages inched up to 1.7 percent from 1.3 percent in 2011.

While the US continues to be the top market of Philippine contact centers, its share slid from about 75 percent in 2011 to about 70 percent last year. The UK maintained its over 10-percent share in 2012, whereas clients from Australia and New Zealand combined surpassed the clientele in Canada to become the third-biggest market last year, with an over 5-percent share, compared with less than 5 percent in 2011.

Last year’s attrition rate was at 55.3 percent, lower than the projected 64.8 percent.

The call center sector comprises about two-thirds of the Philippines’ IT-business process outsourcing (BPO) industry. –Ben Arnold O. De Vera, InterAksyon.com