This one ain’t feeling the pinch
By Tina Arceo-Dumlao
Philippine Daily Inquirer
First Posted 22:20:00 11/16/2008
ONE SECTOR that is not feeling as pessimistic about its growth prospects over the next few years as the banks and real estate companies is the business process outsourcing industry.
Industry players believe that as top American and European companies desperately find ways to cut costs to stay afloat, they would be forced to ship jobs to countries like the Philippines where the people can do the same job at a fraction of the cost.
The outsourcing industry is already raking in $4 billion in revenue a year and the Business Processing Association of the Philippines (BPAP) believes that there is room for the industry to grow by as much as 40 percent more next year.
Industry leader Convergys shares the view of BPAP and country manager Marife Zamora discussed with the Inquirer in an interview her reasons to be optimistic despite the financial turmoil affecting the developed nations where the call centers derive the bulk of their business.
Q:Do you see the growth in the BPO industry slowing down given the financial crisis in the United States?
A: Convergys continues to see growth in the Philippines. Within five years, we have grown from zero to more than 14,000 employees in the Philippines and will continue to see growth in the area. For example, in May, Convergys announced the addition of five new integrated contact centers to be added throughout the country. We are also currently expanding several existing facilities to meet increased client demand.
Q: Where are the areas of possible growth?
A: As a leader in relationship management, we are continually looking for new opportunities to grow in order to benefit our clients and their customers. Right now, we are focused on opening and staffing Convergys’ five new facilities within the coming months. The first facility, Cebu Asiatown i3, was opened in September. We hope to open two sites in December–UP Science Ayala Park and Nuvali in Laguna. In April 2009, we also hope to open our Glorietta 5 facility in Makati and San Lazaro in Manila.
Q: When you go to the United States to court clients, what do you say are the reasons why they should trust the Philippine workforce?
A: The Philippines continues to be a place that US clients request for their business needs. The biggest advantage that we see is the availability and high quality of the potential employee pool. Employees who are well-educated, English proficient and have a strong affinity to US culture are important to Convergys’ success in the Philippines. We are pleased with the successes we have seen with recruiting in the Philippines and continue to see great numbers of highly qualified applicants. The continued growth of our business in the Philippines is a testament to the high quality of our workforce.
Q: As for Convergys specifically, how many centers do you have and are you still in a growth mode?
A: From a single contact center in Makati, which opened in 2003, Convergys now has 10 contact center facilities in the Philippines–six located throughout Metro Manila, three in Cebu City, and one in Bacolod City. In May of 2008, Convergys announced the addition of five integrated contact centers to be added throughout the country. The new sites include Cebu Asiatown i3, UP Science Park, Nuvali, San Lazaro and Glorietta. In this respect, Convergys is growing in the Philippines at a rapid pace.
Q: How has the Philippines contributed to Convergys’ overall profitability?
A: Unfortunately, we cannot provide specific numbers, as we do not break out our earnings by region, but the Philippines continues to be a country that our clients ask for specifically. The Philippines is an integral part of Convergys’ growing global operations, as evidenced by our continued growth within the country.
Q: What do you think are the major barriers of further growth of the BPO industry in the Philippines?
A: We see a continued opportunity to expand the size of the talent pool within the Philippines. Because of this, Convergys developed the Oral Communications in English program in 2005 which aims to increase the size of our future workforce by teaching English skills to the teachers who will in-turn teach the children, creating the potential to become future employees of Convergys. This intensive two-day program was designed to provide public school teachers with the training they need to teach children proficiency in the English language. We believe this initiative will directly impact the future success of the BPO industry and ensure an English proficient talent pool for our future growth and for the country’s global competitiveness.
Q: How does Convergys help solve the problem with the low passing rate in call centers?
A: In order to solve the problem with the low passing rate, we created the Convergys Academy, a 12-15 day training program for applicants who need additional help. Individuals are given the opportunity to improve their communication skills and eventually, upon success with the program, be hired into the organization.
Q. Is there really a growth path for young employees?
A: Yes, there is a very strong growth path for young employees. In fact, Convergys’ goal is for every employee to become a key point of differentiation and a competitive advantage for the company. Our employees are our greatest resource and by emphasizing talent management, we are able to help them develop their skills and move into bigger and better roles within the company. Convergys believes in ‘building from within’ which will help employees build a future in our company. Among the numerous training and development programs that Convergys provides its employees are a comprehensive step by step career path for its agents and team leaders as well as training and development programs for management within operations and among the resource units. Convergys also features a robust online learning academy called the PDC or Personal Development Center to further develop our employees. For example, several of Convergys’ executives started as agents in a contact center environment, showing the strength of our Talent Management program.
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