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Wednesday, March 02, 2005
Cash comes calling
By Dianne Arnie P. Nicolas
UP Mass Communications
* In less than 2 years, up to 5,000 have been employed by 13 call centers in Cebu, and trade and local government officials are scrambling to attract more
*2 local universities are already offering call center training courses, while three more programs are in development
*Low employee turnover and lower costs of doing business are shaping up to be Cebu’s selling points over alternative business process outsourcing destinations like India
While not quite as cutting-edge as the “idea labs” and software development centers of Bangalore and Beijing, call centers are giving Cebu’s new graduates a shot at a job that pays well—and keeps them on home ground
“SALE!” exclaims one agent, taking off her headset and rousing applause from nearby cubicles.
Her fellow agents, trying to stay snug with blankets, thick socks and jackets, widen tired eyes and cheer to the good news.
One agent, hair unkempt at 8 a.m., stands from a fetal position to tap a certain “Jeremy Jacobs” on his back, breaking from the cold monotone of the 3 a.m. to 12 noon shift.
In the outbound calls program of call centers, a sale is more than enough reason to shout in thrill. In a nine-hour-shift with approximately 300 calls to make, an agent, if he’s lucky, gets two to three sales that are enough to complete a day.
Calling from Cebu to Alabama, the Cebuano code-named “Jeremy Jacobs” speaks in a fancy American accent and nonchalantly plays with a feathered pen. But the irate American on the other end, after some expletives, hangs up.
It will be hours, or maybe a day, before “Jeremy Jacobs” makes another sale.
This is a scenario in eTelecare, one of the newest call centers in Cebu that has employed a young labor force, which reached 700 in only a few months.
Since 2003, approximately 5,000 were employed in the 13 call centers in the city. These centers’ main draw is the P8,000 to P15,000 monthly salary, even during training period.
Already, call center training courses have been opened in two universities, with three more drafting a program for future offering.
But just how are call centers contributing to the economy?
Helping the government
Last year, the Department of Trade and Industry (DTI) estimated earnings as much as $864 million for the country from call centers alone.
The local government is targeting more and more US and UK-based contact centers to invest in the Philippines, using “high-quality personnel, lower costs and proximity to markets” as their bait.
Alberto Gumarao, deputy center manager of Cebu Investments Promotion Center, says Cebu has become a hot spot for call centers because of our efficient telecommunications service, manpower, competitive cost of doing business and orderly lifestyle.
“We are targeting more. We’re making Cebu ready so more and more call centers can come,” Gumarao adds.
As Cebu is the busiest metropolis and education center of the Visayas and Mindanao, these people-intensive businesses invest here to get the new batch of call center agents to serve the American customer.
In one year alone, Engr. Dahlia D. Luna, area manager of Mactan Economic Zone 2, notes a 30-50 percent increase in the number of call centers in the city.
Bureau of Investments Director Ernie Pintac, in an interview, says that call centers may get incentives from the government that include a four-year income tax holiday.
Since 2001, the government has listed information and communications technology as one of the investment priority plans.
These investment priorities are entitled to government incentives.
Call centers accredited by the Philippine Economic Zone Authority (Peza) are granted: tax and duty-free importation of equipment; a four-year income tax break; and exemptions from taxes on raw materials.
Among the Peza-accredited call centers are eTelecare, PeopleSupport, Convergys and Western Wats.
Balm to unemployment
“We are helping a lot of unemployed new graduates to have jobs,” says Carol Go, corporate communications manager of eTelecare.
In a country with 350,000 graduates every year, call centers are a welcome balm to the problem of unemployment.
PeopleSupport, one of the largest call centers in the city that started October 2003, now has approximately 1,000 employees.
Eighty percent are fresh graduates.
Because of our high literacy rate, the Philippines has become a market for these quick jobs.
With 72 percent of the population said to be fluent in English, making us the third largest English-speaking country in the world, our country has become a destination of million-dollar call centers.
What are call centers?
Recognizing the global market’s potentials, companies have sought the help of call centers to strengthen their customer service arm.
Call centers serve a wide variety of clients through business process outsourcing. Agents are trained in specific programs with specific clients.
One program may have call center agents schedule flights, inform customers of the rates and book their desired accommodations—all processes a travel agency can outsource.
One inbound program may be on computer servicing, receiving calls from purchasers to help with troubleshooting or giving information on company policies.
Other programs include selling Internet services and promotions.
The variety is wide, just as the present demand is high. To help companies save on costs of labor and infrastructure, call centers are mushrooming in Asia to serve the still-growing demand for cost-efficient customer service.
Competing for calls
The Philippines is competing with two major players for call centers—India and Australia.
Although the Philippines is a late entry in the business, with call centers established in the two countries since the late 1990s or early 2000, the Philippines boasts of the lowest turnover rate. This attracts call centers that want a lower cost of doing business in the long run.
But just as call centers give relatively easy-to-get jobs, they also have a high employee turnover.
Turnover is caused mainly by late-night shifts, as different time zones dictate different working hours.
In India, turnover is 6-10 percent, while Australia has 10 percent.
The Philippines, DTI reports, has a turnover rate of less than five percent.
“The staying power is high,” says Convergys recruitment manager Emma Bernad in an interview.
Bernad explains that Filipinos perform better in call centers because we are said to “stick” to our jobs.
India remains more competitive than the Philippines, however, because of its lower cost of personnel services.
But unlike India and Australia, where occupancy costs are $675 and $425 per square meter, respectively, the Philippines bills only $300 for every square meter.
Sykes, another large call center, has been attacked by the American press for investing millions of dollars in US states, only to head for Asia barely a year or two from the start of operations.
But with a high turnover and higher costs in practically everything (labor, infrastructure, occupancy and more), the US has given companies more reasons to shift some operations abroad.
The Philippines, for example, has an agent cost one- fifth of that in the U.S.
Because of this, the country is eyeing a growth of from 3,000 to 15,000 seats from call centers in one year alone.
Meeting the demand
“There is a shortage in Cebu already,” warns Gumarao. This is echoed by Go of eTelecare, Bernad of Convergys and Anjanette Hernandez of PeopleSupport.
The solution, call centers have found, is to train.
CIPC is helping the academe in training human resources by looking for scholarship funds and putting up the Academe in Consortium for English Proficiency (ACEP).
These schools include the University of Southern Philippines (USP), University of the Visayas (UV), University of Cebu, University of San Carlos and Cebu Institute of Technology.
Cebu City Mayor Tomas Osmeña has committed P1 million.
USP has opened a Call Center Training Course or a Fast Track of Advanced Communication in E-Business (ACIE).
This course, explains program coordinator Rhea Domingo, is “specifically designed for call center training.”
“We have a problem with not having skilled, English-proficient graduates,” Domingo adds.
In response to ACEP, a Fast Track course running for 54 hours and costing P2,500 has been started since 2002.
The most recent enrolment recorded 80 students. No technical skills are taught.
Nursing, commerce and information technology students need to pay an additional P2,500 for three units of the ACIE.
There are no job assurances, however, for the graduates.
Holding the calls
Later that night, another agent sits in the same cubicle, but this time without the cheers of its occupant several hours earlier.
“Can I talk to someone more experienced? I really don’t think you’re helping me with anything!” complains an American on the line.
“Will you please hold, ma’am? I’ll try to figure out what’s wrong with your computer,” replies the Cebuano agent.
He takes off his headset and talks to his team leader, relaying the problem’s details.
A few meters apart, some agents are just as religiously listening through their headsets, this time tapping into conversations to assess the performance of the agents, checking for conciseness, obedience to spiels and compliance with program procedures.
Call center work involves not just working unusual hours but following strict protocol, keeping calm despite condescension and expletives, knowing your product and always speaking for your client’s interests.
Returning to his irate caller, the agent finds out the American already hanged up.
True to protocol, he makes the call this time. In a voice calmer and more assured, he tells his caller what to do.
In seconds, he has another call.
Composed of a young and dynamic labor force, these call centers thrive simply because these young agents continue to hold the calls.
And though irate callers are one too many, these calls have become their career.
(March 2, 2005 issue)
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