Industry Research : Upbeat Call Center Industry Sees Profits Doubling by 2016
Call Center revenues are expected to double by 2016 to $14.7 billion from this year’s forecast given growing demand that requires additional hiring, the Contact Center Association of the Philippines (CCAP) yesterday said.
"The forecast ... is to double [the work force] to 816,000 in the next five years, generating $14.7 billion in revenues," CCAP President Benedict C. Hernandez said in a press briefing yesterday.
The industry group expects voice services to rake in $7.1 billion in revenues this year, up 15% from last year’s $6.2 billion. It forecast a total of 406,000 jobs by yearend, an 18% increase from 344,000 last year.
"We have the opportunity to double [revenues and workforce] in the next five years ... [as] there is an existing and growing demand," Mr. Hernandez said, adding that call center firms are also expected to expand local operations given the "quality of service" the Philippines offers despite higher domestic costs.
The industry’s main market remains the United States, which accounts for an 88% share, CCAP director Rainerio M. Borja said.
From 2011 estimates, the CCAP expects revenues to hit $8.4 billion next year, rising to $9.6 billion in 2013. The succeeding forecasts are $11.1 billion for 2014, $12.7 billion for 2015 and $14.7 billion for 2016.
From the 406,000 jobs expected by end-2011, the CCAP forecasts the number to rise to 467,000 next year and further to 537,000 in 2013. The forecasts for the next three years are: 617,000, 710,000, and 816,000.
Mr. Hernandez said talent development was the industry’s biggest concern. The CCAP is thus planning to establish a Global Competitive Institute that will work for improvements to college and university curriculums.
A skills improvement would help increase the call center hiring rate to 12% from the current 8%, he said.
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - Recruitment And Selection
Published: Saturday, July 23, 2011