Foreign Companies Eyeing Philippines

More than a hundred foreign corporates are talking to companies in the Philippines in a bid to establish their contact center operations on the archipelago. According to Benedict Hernandez, the President of the Contact Center Association of the Philippines, the list includes giants like Goldman Sachs, Mitsubishi, Morgan Stanley, and the UFG Financial Group.

Hernandez believes that there is $1 trillion worth of outsourcing work in the market. But currently, only $166 billion changes hands as part of outsourcing. With its large pool of native English speakers and lower labor costs, the Philippines is a world player in the market today.

Automation has made several jobs redundant. But Hernandez maintains that the Philippines is prepared to take advantage of this wave. The shift is towards high-value jobs and there are hardly any low-value jobs left in the country, he adds.

Most clients are familiar with only Manila and want their operations to be based in the national capital. But cities like Davos and Cebu offer the same advantages at lower costs.

The CCAP is working on increasing the percentage of contact centers outside Manila from 30% to 50% by 2022.