Local contact centers see 50% growth rate by 2004

Local contact centers expressed optimism yesterday that their industry will reach an annual aggregate growth rate of 50 percent or $864 million by 2004.

Industry leaders said that the demand for outsourced contact center services will continue to increase and the Philippines is in a good position to benefit from this expansion.

According to the Contact Center Association of the Philippines (CCAP), the US market alone stood at 1.5 million seats.

CCAP president and All Asia Customer Services’ head for business development Jose Ferreros said there was a great demand for outsourced contact center services.

In dollar terms, forecasts placed the growth of ICT-enabled services to reach $200 bilion by the year 2010. The share of the customer service or contact center segment would be $42 billion.

"Now, the challenge for us in the Philippines is how to position ourselves effectively, vis-a-vis country-competitors like India, in vying for a substantial share of that pie," Ferreros said.

Relative to India, Ferreros expressed confidence that the Philippine contact center industry is in a good position to capture a sizeable percentage of the estimated $42 billion business.

Ferreros cited the advantages of the Philippines, primarily the quality of its labor force and their facility with the English language as well as familiarity with Western culture.

Improvements in power and telecommunications infrastructure also contributed to this competitive edge. Labor cost may not necessarily be cheaper but considering quality, Ferreros said clients get more value for their money.

Ferreros said the industry also benefits from government’s strong support for ICT-related industries. "While these advantages may be inherent, we should work hard to continuously improve the quality of the services we provide," he said.

Ferreros said the industry is now in the process of facilitating the Customer Operations Performance Certification (COPC) of its corporate members in an effort to ensure quality.

According to Ferreros, CCAP’s corporate members require their third party providers to be certified.

CCAP is composed of 13 corporate members: All Asia Customer Services, Inc. (ACS), Ambergris Solutions, C3 Customer Contact Center, Inc., Contact World, CQuadrant, Easycall Communications Philippines, Inc., eTelecare International, Expercs Direct Communications, Immequire, People Support, Pilipinas Teleserve, Inc., Qinteraction Philippines, Inc. and Sykes.