How a Call Center in Makati Became the Symbol of the Sunshine Industry
One of the many important business milestones that the past decade has brought the Philippines has been the growth of the outsourcing industry in the country. A call center in Makati has become the symbol for the revitalization of the Philippine economy, with the outsourcing industry being called the “sunshine industry” because even in tough economic times, the BPO (business process outsourcing) sector has given jobs to hundreds of thousands of skilled local workers.
Many would agree that in the late part of the 90s, the call center industry reshaped the economic landscape of the Philippines. In those days, many of the pioneer outsourcing companies would set up an office in Makati to enjoy the yet untapped rich resource available here: the local workforce. Starting with companies like eTelecare, Sykes, and Convergys, a number of foreign investors set up their operations by leasing office space in an existing commercial building. They would then bring in their equipment, which was easy to set up and use since telecommunications infrastructure in the country is relatively affordable.
Those investors came to realize the now taken-for-granted advantage that local workers had over other workers in different countries. Local workers are very fluent with English and are already immersed in Western culture. Being that the country was previously colonized by the United States and before that for 300 years was a colony of the Spanish empire, speaking in English and foreign cultures were already a staple in the lives of the average citizen. The language barrier and culture clash were key obstacles foreign investors had in outsourcing to other countries like India and China, and seeing the local pool of talent and working environment was a revelation.
From then on it only got better. Fast forward to the 2000s, and call centers started mushrooming in the country, even in the major cities of provinces outside the Metro Manila area, like in Dagupan and Cebu City. Careers in IT, which were once the go-to career choice for many young graduates, are now foregone in favor of jobs in the outsourcing industry, where the pay and benefits are far better. In the past, foreign companies would lease out office space in existing buildings. Now, big multinational companies would develop and construct their own office buildings, with companies like HSBC and JP Morgan Chase having buildings built to house their outsourcing operations in the country.
It was estimated that in 2006, more than 160,000 people were employed in the BPO sector. Now, that number has gone up to almost a million. Outsourcing to the Philippines is proving to be a lucrative business, and the “sunshine industry” shows no signs of slowing down.
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