updates on the philippine call center industry

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 UPDATES ON THE PHILIPPINE CALL CENTER INDUSTRY: THE ISSUE OF SUSTAINABILITY Aileen S. Alava Assistant Professor University of the Philippines, Diliman College of Business Administration Abstract Facing high expectations as the newest sunshine industry, the call center industry in the Philippines appears to have dimmer prospects in the coming years. Having experienced rapid growth in the past, the industry is expected to disappoint a bit as analysts observe a slowdown in the industrys growt h from 2003 to 2005. Contrary to the fears that demand will be lost to neighboring competit ors India and China, the industry may be losing speed not because of a shrinking market but because of decreased labor supply. Various reasons have been offered to explain why the slowdown is expected. Aside from manpower supply, local i nformation and communications technology (ICT) infrastructure has also been identified as a possible constraint limiting the industry from fully achieving its potential. This paper will provide industry player and market information, as well as updates on how the industrys participant s are seeking to address these challenges. The call center industry is heralded as the newest sunshine industry in the country, earning around US$1 billion in 2005 alone. The industry currently provides employment to around 96,000 Filipinos as call center agents. Employment for this sector has more than doubled every year, starting with 1,500 seats in 2000 and finishing with around

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