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Saturday, October 11, 2008

 

US crisis to affect call centers


THE financial meltdown in the United States and general slowdown in the world economy will impact negatively on the Philippines call center industry, a former Budget secretary and IBON Foundation said Friday.

Former Budget Secretary Ben Diokno said the Arroyo government should start preparing for the worst, should American companies that invested in call centers in the Philippines pull out their investments in the industry. About 500,000 are employed in the domestic call center industry.

However, Jonathan de Lezuriagga, the executive director for industry affairs of the Business Processing Association of the Philippines, believes the domestic business process outsourcing industry—which includes call centers—could double or triple by next year.

Diokno said that this early, the government should start looking for alternative jobs for call center agents who might end up unemployed because of the US financial crunch.

“That [providing alternative jobs] is what the government should be concerned about,” Diokno stressed.

He said that while the medical transcription industry is stable, those accounts servicing the financial or banking sector of the US may be in jeopardy. Medical transcription is one of the services outsourced by US firms.

IBON research Head Sonny Africa said that the business process outsourcing sector, which is led by call centers, may experience job losses and pressure on wages to fall, and the same may happen to US subcontractoras in the country.

Africa said major US firms with outsourcing operations in the Philippines include Accenture, Amex and American International Group.

Call center industry sees great growth

However, an official of the Business Processing Association of the Philippines said some experts are predicting that the P30-billion call center industry will double or triple by 2009.

Lezuriagga also believes that with the US companies struggling to stay afloat, “the most logical action for them” is to turn to outsourcing and look for countries that offer cheaper services.

“We don’t see it [US economic crisis] as alarming for the local call center industry,” he said.

Rep. Joseph Santiago of Catanduanes said the $500 a month salary of a call center agent in the Philippines is much cheaper than the salary being provided by BPO companies in the US.

“A call center agent’s monthly salary in the Philippines is only equivalent to a three-day salary in the US,” he said.
--Francis Earl A. Cueto

   

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Severino O. Frayna Jr., Benjie Dela Rosa
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