Growth in Philippine Call Centers jacked up by global crisis?
Turns out the credit crisis and the recession in the United States had some unwittingly beneficial effect in the BPO and call center industry in the Philippines. I would have expected job cuts around this time but it seems there’s some massive expansion going on.
A friend, who works in one of the top call centers in the Philippines, revealed they’ve been doing rapid expansion and is opening up at least 5 more locations around the country from this year to next year. There’s one in Sta. Rosa, Laguna, then in Cebu, the newly built Greenbelt 5, the UP Science Center in Q.C., and San Lazaro, Manila.
If that’s any indication, I’d say the BPO industry in the Philippines is still growing despite the recession. But how did that happened?
My friend explains that because of the financial crisis in the US, there were a lot of job cuts going around. These job cuts are cost-cutting measures — no new hires in the US; all replacements are made in somewhere else where it’s cheaper (including) the Philippines.
It makes sense actually — for every seat you drop in the US, you can get as much as 4 to 5 new seats in the Philippines at the same cost.
The industry will still survive. It’s just a matter of resource allocation and cost-reduction. While the Philippines may not be immune to the same economic crisis, it has proven still that our labor force is cost-effective.