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Companies Look to the Philippines for Contact Center Planning Strategies


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September 24, 2012

Companies Look to the Philippines for Contact Center Planning Strategies

By Susan J. Campbell, TMCnet Contributing Editor

The important planning process that outlines the next steps of contact centers must take location into consideration, more so than a number of other elements. Why? The location can determine the base line cost of operations, dictating just how wide a profit margin the company can achieve. For two companies in the industry, their contact center planning is set to include relocating their businesses to the Philippines. 

According to this Business World Online report, one of these companies is seeking to increase its workforce while the other is moving to the Philippines to launch its regional growth target. The two companies engaged in this contact center planning include Expert Global Solutions, Inc. (EGS) and Noda, a Russian software solution company. 

For EGS, their contact center planning includes an increase of its manpower by 20 percent. The company plans to hire 5,000 individuals, although most of them will be filling seasonal positions. By the end of the year, the company plans to increase the workforce from 12,000 to more than 15,000, representing a third of the total EGS global workforce. 

At the same time, EGS plans to expand in the provinces, looking at establishing locations in Northern Luzon and Mindanao, among others. The company also has seven offices in Metro Manila, another one in Leyte and still one more in Clark, Pampanga. Plans for expansion include spending a couple of million dollars to fund the contact center planning expansion. 

In addition, the company will spend “a couple of million dollars” for the rest of the year while it will “spend more” next year, with bulk of the investments being for the company’s infrastructure projects.

Noda, on the other hand, selected the Philippines as the prime location to launch its Asia-Pacific expansion. The company hopes to leverage the current opportunities in the growing call center industry there. Noda also views the Philippines as the most competitive in the region due to its position as a “completive market,” according to Noda’s Regional Representative, Slava Varlamov. He declined to share specific revenue goals.

Prior to its Philippines expansion, Noda, a Russian firm, managed its operations in Central Asia and Eastern Europe. With more than 800 projects under its belt since inception in 2001, the company has built more than 300 contact centers in Central Asia and Eastern Europe, and has acquired over 50 partners in Russia and the aforementioned regions. 

The primary focus for contact center planning with the Philippines as a target destination includes cost benefits. The region, which claims it has overtaken India as the primary call center outsourcing destination of choice, grew by 21 percent last year to reach $7.4 billion. 

This continued expansion in the Philippines, coupled with the push in the U.S. to bring offshore call center jobs back home, could cause a significant shift in the global market. As global companies continue to push into new regions, however, the competitive landscape is likely to continue to heat up.

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