Philippine city looks to attract call centers

22.06.2006
While call centers in Metro Manila struggle with dwindling labor supply, those in Cebu City are confident that supply will take care of itself as more locators flock to this Southern city.

'When the demand is there, things start to happen,' said Bong Borja, president of U.S. operator PeopleSupport, which has two facilities in Cebu City.

'The demand is spurring supply, it's almost infinite. There are reports saying this is now becoming a 30 billion-dollar industry,' Borja said during a panel discussion in an ongoing industry forum held here.

Next to Metro Manila, PeopleSupport's second largest facility worldwide is in Cebu City. The company is one among several operators in the Philippines that expanded operations from out of the capital city in the last two to three years.

PeopleSupport's facilities in Cebu City currently employ around 1,800 workers and can accommodate at least another thousand more.

'Our Cebu facilities can handle 3,000 (workers) but that can increased over time. In fact, we have reserved more facilities in this city for further expansion. We'll definitely hit more than 2,000 agents by year-end,' Borja said in an interview.

In response to building a critical mass of qualified call center agents, PeopleSupport is partnering with universities in Cebu City. Courses incorporated into these schools' academic curriculum are designed to increase awareness among potential agents.

'When they graduate, we actually guarantee them jobs,' Borja said.

De-mystification

Last month, the local government in Cebu City announced a P2 million (US$37 million) scholarship program intended to benefit some 800 individuals by providing them with free two-week call center work training. Once the individual is hired as an agent, his or her employer would have to remit P2, 500 back to the local government.

These programs initiated by the government and private sector helps reduce what Chris Mangelson, president of Cebu-based call center Western Wats, refers to as the 'mystification' of the industry among local residents.

'Whereas before residents have a perception of call centers as just a trend, that image is changing significantly. They now believe that we are really here to stay,' Mangelson said.

When Western Wats set up in Cebu City, it was originally targeting to build a pool of 500 agents in at least 30 months. But Mangelson said this was achieved within 20 months.

The company, which does survey research data collection, currently has around 900 agents. 'Demand for labor is being met,' Mangelson said.