Industry Research : Contact Center Industry Accelerating Growth
The country’s call center industry expects to grow at a faster rate of 20 to 25 percent annually in the next five years as the economic crisis in the US and Europe would put pressures on the cost of companies making outsourcing and offshoring a very attractive option for companies.
Benedict Hernandez, president of the Contact Center Association of the Philippines (CCAP), told reporters that grow would be faster than their earlier projection of 15 to 20 percent growth until 2016.
"We earlier though growth rate would be closer to 15 percent until 2016, but now it’s in the 20 to 25 percent range," said Hernandez. This augurs well for a sustained growth over the next five years.
Hernandez said the crises in the U.S. and Europe are cost pressures on companies to cut their expenses. With the crisis, more companies are now looking at offshoring and outsourcing their non-core functions.
"The crisis puts a lot of cost pressures on these companies which may now begin to accelerate their offshoring activities
"Despite the volume of activities already, there are still a lot of these companies which have yet to outsource, both US and non-US," he said.
This means that growth in the next five years would be a combination of expansion and new investments in the offshoring and outsourcing business.
"There is still a lot of opportunities. Companies that have not yet outrsourced would start to look at this option," he added.
Officially, however, the CCAP is going to stick to its forecast of 15 to 20 percent growth in revenues and a net growth of 400,000 employes by end of 2011.
For this year, CCAP projects to grow its revenues by 18 percent to $ 7.1 billion employing about 406,000 compared to last year’s $6.2 billion revenues and 344,000 workforce.
He recalled that at the height of the 2008 and 2009 global financial crisis, the industry grew "significantly."
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, November 28, 2011