Ever since the recession hit the United States economy, there has been much worry about the decline of the call center industry. Chinese, Latin American, Indian, and Philippine call center industries have all had cause to worry since their businesses are all directly connected to the U.S. and other European countries that were all also affected adversely by the global recession. So how does this all affect the major call center industries? Surely China and Latin America are all going to take some heat, but what really concerns businessmen is the effect on the top two call center destinations that cater to U.S. clients: the Philippines and India.
The most obvious thing that will happen is that companies in the US would want to cut costs. Others say that this means there will actually be more business for the offshore outsourcing industry, but there are others who see things differently. Some major call centers are already closing in the U.S. and in Europe. Sykes, for example closed down a few of already.
Let us consider other factors that might bring down the outsourcing contact center companies in these countries. In the U.S., the major political push has been to try to keep the jobs that it has been losing to offshore outsourcing. Ever since the loan mortgage crisis, millions of jobs have been lost. First, jobs from banks, lending institutions, and anything connected to the real estate market (including construction supplies and services, architecture, and engineering) have all dwindled. Then other industry jobs followed suit especially those in car and luxury retail. And with the already popular offshore outsourcing of call center, web design, computer programming, and other major information technology jobs, the public outrage against outsourcing in general went up to a fever pitch. This is why the Obama administration took the stand against offshore outsourcing.
So with all these against Indian and Philippine call center companies, how will these industries fair? Well, both industries are still open. Both industry showcase competitiveness because of their specific geographical location full of English speaking, educated workforce (as compared to China and Latin America where the wages and business expenses may be just as low but not everyone can speak English Fluently). And it seems there is still some growth in these sectors. Indian call centers and other offshore outsourcing in that country does not show any signs of stopping. In the Philippines this year, there is a 9% growth in the BPO sector. Also, Telus, a major global BPO company has plans on expanding this year by building another center in the Philippines. Also, there is a 9% growth in the Philippine call center industry´s income in the recent fiscal year. That may not be as high as normally projected, but considering the economic conditions, 9% growth is pretty good.
Now, regarding President Obama lobbying to get corporations to keep hiring onshore instead of offshore, this is another can of worms. But what can the administration really do about this? In truth, they will have to change the oldest laws regarding corporations because by law, corporations are required to look after its own interests. And it is in its best interest to hire Indian or Philippine call center services since in these specific locations, the service is cheap and the quality is high.
A computer graduate and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats and walk with them in the park with some dogs.
You may want to visit a Philippines Call Centers website for more information.
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