Call Center Investments Spurring Economic Growth and Social Development

8/6/2019 Call Center Investments Spurring Economic Growth and Social Development

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CALL CENTER INVESTMENTS:

Spurring Economic Growthand Social Development

Raffy David and Cesar Tolentino

19 August 2005


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INCREASES EMPLOYMENTGeneratesapproximately

30,000 new jobs peryear (agents and callcenter personnel).

This trend isprojected to continuein the next 2 to 3years

E Estimate; F ForecastSource: XMG Asia-Pacific, 2004

2000 2001 2002 2003E 2004F2005F0

10

20

30

40

50

6070

80

90

100

NUMBER

OFAGENTS

(in'000)

YEAR

4.88.0

14.019.5

60.0

92.0


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ELEVATES PROFESSIONAL COMPETENCE

OF FILIPINO WORKERS

Call center jobs provide exposure to

quality-intensive training,new work management methods,

results-driven team/group-work

environments, andinternational customer interactionexperiences


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IMPROVES THE RECOGNITION OF THE

PHILIPPINES IN THE GLOBAL ECONOMY

Allows the Philippinesto establish a name

as a premiereoffshore destinationfor outsourced

professionalservices (whichincludes other BPOservices aside from callcenters).


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OPPORTUNITY TO DEVELOP A STRONG

COUNTRY BRAND NAME IMAGE

As a premiereoffshore destination

for outsourcedprofessional andbusiness services,the Philippines candevelop a strongbrand name imagein the concept of

Philippines, Inc.


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GENERATES NEW SOURCES OF

INTERNAL REVENUE

The entry of new locators (who wouldotherwise have not located in the

Philippines) provides the Philippinegovernment with access to new sources ofinternal revenue in the form of:

1. New corporate taxpayers in terms of the locatorsthemselves

2. More personal income tax payers with higherincome levels


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New Corporate Taxpayers

Each new call center locator hasthe potential to generate$3Million in Revenues per year

(assuming 200 active seats),corresponding to

$0.15Million in VAT revenues (net ofcredits)

$0.15Million in Corporate Income Taxrevenues (if there is no Income TaxHoliday or if the ITH has expired)

Or $0.30Million in total Internal Revenues per new

call center per year

$3Millio

ninRevenue

s

$0.15M in VAT

$0.15M in IncomeTaxes


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More Affluent Taxpayers

Each new call centerlocator, on the average,can employ as many as300 agents (assuming 200active seats), with thecapacity to generate

$0.015Million more inpersonal income tax revenuesper year

Most entry-level staffpay P1,200of GrossSalary totaxes permonth

Agents payan additionalP500 permonth


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LOCAL INDUSTRIES ELEVATE THEIR

COMPETITIVENESS TO WORLD-CLASS LEVELSThe need to provide world-class services pressures

local companies to elevate their service quality toglobally competitive levels, ex.: those engaged in

Real estate development,Engineering services,

IT services,

Food service provisioning,

Healthcare services,

Manpower services,

Training services, and

Accounting and financial services


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LOCAL GOVERNMENTS AND COMMUNITY

LEADERS BECOME MORE BUSINESS-CENTERED AND SERVICE-ORIENTED

Call centers ability to offer employment to

large numbers of constituents enamor themto local governments and local communityleaders.

This sentiment compels these leaders toadopt mindsets and orientations that aremore responsive to business needs furtherattracting more investments into the sector.


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CATALYZES SME GROWTH AND SOCIAL

DEVELOPMENT

The huge requirements of call centers forauxiliary services (public transport, safety

and security, healthcare services, foodservice provisioning, among others) offeropportunities for:

Business growth among SMEs providing suchauxiliary services, and

In turn, offer greater employment opportunitiesamong expanding SMEs.


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BUSINESS GROWTH AMONG SMEsIt is estimated that for every

$1 in revenue generatedby a call center,

approximately$0.15 goes to domestic consumptionof products and services($0.45Million additional domesticconsumption per call center per

year),

$0.05 of this consumption is servedby SMEs, generating approximately$0.15Million in incremental GDP peryear per call center.

Domestic

Spending

to SMEs

($0.05)

Other

Domestic

Spending

($0.15)

Other

Uses

($0.80)


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GREATER EMPLOYMENT OPPORTUNITIES

AMONG SMEs

The additional $0.15Million incremental GDPper year per call center from SME revenuesdrives employment growth in terms of

SMEs employing more personnel to serve theadditional consumption demand, and

Support businesses (banks, transportation,utilities, government services), requiring morepersonnel to support SME growth.


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GREATER EMPLOYMENT OPPORTUNITIES

AMONG SMEs

Every call center agent employed is

estimated to generate an averageof two new hires among the SMEsector.


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SUMMARY OF CALL CENTER BENEFITSIncreases Employment

Elevates Professional Competence of the ordinaryFilipino worker to world-class level

Improves the recognition of the Philippines in the worldmarket

Creates an opportunity to create a strong brand namefor the Country

Local companies elevate their competitiveness toworld-class levels

Catalyzes SME growth

Greater Employment opportunities among SMEs


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THANK YOU

CCAP

Documents

Call Center Investments Spurring Economic Growth and Social Development