'I believe the contact center industry performed well in 2005, with considerable growth globally; we witnessed continued strong interest in the Philippines from our clients worldwide,' said Marife Zamora, vice president and country manager of Convergys Philippines.
Benedict Hernandez, vice president for Philippine operations of eTelecare agreed, saying that the past five to six years have, in fact, been good for the industry as the country has seen the industry's size grow in terms of employment and revenue. 'We still see the same kind of interest and activity today,' he said.
A new study from Frost & Sullivan entitled Assessment of the Asia Pacific Contact Center Market reveals that the number of contact centers in Asia Pacific totaled over 21,360 in 2004 and is expected to grow at a compound annual growth rate of 9.1 percent to reach around 39,247 contact centers by the end of 2011. According to the study, other than the urgent need by foreign companies to cut costs and the attractively large English-speaking population in Asia Pacific, it is the emerging trend in outsourcing within Asia Pacific itself that is further bolstering the contact center industry in this region.
'The growth is steady; a lot of players have come in, not only clients who want to outsource but companies who want to set up their own (contact centers) as well,' said Liza Lamzon, director for strategic growth programs at PeopleSupport Inc. 'Each year is different, 2005 was good in a different way because now we're already on the map, people are already coming, unlike before where we had to make noise to attract investors,' she said.
'As the industry grows, the challenges change,' said PeopleSupport's Lamzon, citing space as one challenge that the industry faces right now, since real estate is going up because people are now scrambling for space, she said.
'Manpower is another because everyone is tapping the same manpower pool; basically, staying competitive in the market and establishing yourself as the employer of choice for the talent pool remain constant challenges,' said Lamzon.
Convergys' Zamora agreed, saying that finding a sufficient quantity of candidates who meet the company's standards and reducing attrition are always challenges. 'I believe these issues will continue to present a challenge,' she said.
The Frost & Sullivan study said that the contact center industry is challenged by high labor attrition rates, averaging at 19.8 percent at Asia Pacific level in 2004, citing growth markets such as India and the Philippines as having even higher attrition rates owing to the increase in demand for contact center agents.
Developed markets such as Australia and Hong Kong have, over the years, established ways to maintain or even reduce attrition. According to the study, the introduction of a structured agent career path, flexible and conducive environment, and provision of high incentives will aid employee retention.
Meanwhile, eTelecare's Hernandez believes that the biggest challenge in the industry today is still the availability of the right labor pool. 'It is, after all, what got us in this game -- the abundance of qualified professionals, as the Philippines is known for quality service,' he said, adding that there is therefore a need to invest in next-generation professionals for the country because it will be the country's ticket to continued success.
Awarded 'Best Employer of the Year' in 2005 by the Personnel Management Association of the Philippines (PMAP), eTelecare, currently with almost 5,000 employees, will continue to expand and hire more people this year, said Hernandez. The company is looking at easily reaching over 6,000 employees this year, he said, especially as it will be building another site in another city, which is yet to be disclosed.
Hernandez shared that winning the PMAP award somehow served to correct some misconceptions that a contact center career is a no-brainer and that there is no room for growth in such a career, since PMAP saw that a contact center company like them does invest in career pathing and developing the potentials of their employee base.
'It's not an impossible feat to continue having the manpower that you need, it's just a matter of being creative as a company,' said PeopleSupport's Lamzon.
Describing the industry as transitioning between maturity and infancy already, Lamzon said that there is still a lot of potential for the industry to grow. 'By just being ready and anticipating the problems so we can avoid them, we can reach the industry's potential for greater growth, by also learning from other countries that have started ahead and just keeping our eyes open for opportunities as well,' she said.
According to the Frost & Sullivan analysis, although cost is still the top reason for companies to offshore and outsource in the region, the quality of service is the central factor that makes any country the foremost choice for contact center outsourcing.
'We should not position the Philippines as a cheaper destination because India is already cheaper than us; instead, we should be positioned as a superior-quality destination,' said eTelecare's Hernandez.
'We have found the Philippines an excellent country in which to do business,' said Convergys' Zamora. Citing the opening of its seventh facility at Commonwealth Avenue in Quezon City as the highlight of 2005 for Convergys, Zamora said that the company grew from five facilities with 4,200 employees at the beginning of the year to nine facilities with nearly 7,800 employees by year-end.
Convergys is also looking into occupying its newest facility in Makati early this year. Having recently completed and moved into its new facility on Ayala Avenue as well, PeopleSupport's Lamzon said that the facility is designed to be ready for any expansion the company may undertake in the future. 'We're also always on the lookout for the next best place to set up or to recruit from, and maybe a company to acquire or merge with,' added Lamzon.
'We are seeing an increasing interest in optimizing the ability to offer consistent world-class customer care across any channel a customer might use to contact a company -- that is, voice, Web, e-mail, etc.,' said Convergys' Zamora, adding that technologies and services that can provide the consistency customers seek will be important this year.
'We see VOIP as becoming more and more an option for players in the industry,' said eTelecare's Hernandez, stressing, however, that more than the issue of what technology to deploy, it is the 'superior quality execution' of these technologies that really matters.