Call center firms to hit $32B revenues in 2024

Call center firms to hit $32B revenues in 2024
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THE country’s contact center and business process sector expect to achieve a record annual revenue of approximately $32.16 billion in 2024, amid the extensive integration of artificial intelligence (AI).

This represents a nine percent growth, according to global industry research firm Everest Group.

“The contact center and business process sector, along with the information technology-business process outsourcing industry, has remained optimistic and positive in terms of revenue growth through the years,” said Mickey Ocampo, president of the Contact Center Association of the Philippines (CCAP), in a statement.

CCAP is a sectoral organization with over 140 member companies nationwide.

“The figures prove how resilient the sector has become, successfully overcoming the significant challenges that came its way, including stringent data privacy laws worldwide, the Covid-19 pandemic, global economic recessions, and now, the rise of generative artificial intelligence,” he said.

Generative AI refers to a subset of artificial intelligence techniques that involve generating new data, images, text, or other content based on patterns learned from existing data.

In 2023, the contact center and business process sector posted an annual revenue of $29.50 billion, up by nine percent compared to the annual revenue of $27 billion in 2022.

In 2023 and 2022, the sector’s annual revenue comprised 83 percent of the total revenue generated by the IT-BPM industry, amounting to $35.5 billion and $32.50 billion, respectively. Projections for the IT-BPM industry’s revenue in 2024 stand at approximately $39 billion.

Cebu still on radar

Meanwhile, CCAP said Cebu remains a focal point for expansion among contact center and business process management firms.

According to a survey conducted by CCAP in May 2023, 15 percent of its member companies identified Cebu as a prime location for expansion.

Leading the list are Cavite (28 percent) and San Fernando, Pampanga (23 percent). Call center firms have expressed intentions to establish sites in Rizal (21 percent), Batangas City (21 percent), Puerto Princesa in Palawan (21 percent), Laguna (18 percent), Iloilo (18 percent), Tarlac (15 percent), Davao (15 percent), General Santos City (15 percent) and Bacolod City (10 percent).

CCAP is set to converge in Cebu for Contact Islands 2024, its annual conference happening from July 24 to 26, 2024 at Fili Hotel Nustar Cebu in Cebu City.

The upcoming convention will further dive deeper into the implications of AI on the sector’s operations and performance.

“Generative AI, which was among the issues discussed in last year’s Contact Islands conference, did not affect the industry figures negatively. We have even generated more jobs,” Ocampo said.

He stressed that the contact center sector’s 9.4 percent growth in employment for 2023 even outpaced the 8.6 percent employment growth posted by the IT-BPM industry.

AI’s impact

AI has been generating debates and concerns, especially among several national leaders, who believe the technology may lead to job losses across important industries such as IT-BPM.

However, CCAP maintains its stance on the issue, consistently asserting how AI could help the sector grow further by increasing the productivity of agents’ generation of AI-related job requirements.

Based on Everest Group data, call center firms employed 1.51 million individuals in 2023—a 9.4 percent rise from 2022 figures. That number also accounts for about 89 percent of the total full-time employees (1.7 million) hired by the IT-BPM industry that year. / KOC

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