The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Philippines call centres: Hot seats

Although the Philippines has largely failed to compete against its northern neighbours in manufacturing, it has managed to find other niches to compensate. One of the fastest growing of these is the business process outsourcing (BPO) or call centres industry, encompassing everything from help desks and transcription to telemarketing and credit collection.

Philippines tries to match promises with delivery

This is estimated to have been worth some $1.5 billion in 2005 from a standing start in 2000 and is targeted to grow to $10 billion by 2010.

With a young, well-educated and English-speaking workforce, BPO in the Philippines has benefited from low labour costs similar to those in India, some of the lowest office rents in Asia and a series of very positive investment incentives from the government.

Telecom costs have also reduced significantly over recent years, thanks largely to a deregulated market. With labour and telecom costs accounting for some 90% of BPO operating costs according to CLSA, that already makes the Philippines an attractive location for BPO centres. Add to that the natural competitive advantage the country enjoys over other regional rivals in its strong English language skills and cultural affinity with western markets, most notably the US, and it all makes for a compelling business case.

According to CLSA, the Philippines already has about 100 call centres and 165,000 seats. The government is expecting that to increase to 500,000 seats by 2010. While the only domestic pure call centre play in the Philippines is Paxys, larger local conglomerates, including Ayala Land, SM Prime, Metrobank and PLDT either operate their own BPO operations or stand to gain in other ways, either as landlords or telecommunications providers.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree