Contact Center Industry Expecting Continued Growth Despite ECQ

The contact center sector remains to be one of the few industries in the Philippines that continues to post growth despite the global health crisis. Following the reimposition of the enhanced community quarantine (ECQ) in Metro Manila, Moody’s Analytics further cut the forecasted growth of the Philippine economy in 2021 to 4%. The Department of Finance also said in a bulletin that the stricter quarantine measures will affect the economy in the 3rd quarter. But in a study by global research firm Everest Group, the contact center and business process sector in the country is projected to increase by 2.7 to 3.2% from 2020 to 2022 in terms of revenue growth rate. Some members of the Contact Center Association of the Philippines (CCAP) even expect a higher trend. This bucks the expected impact of ECQ in the capital.

A BPO workspace in Quezon City. CCAP

According to Socioeconomic Planning Secretary Karl Chua, the Philippine economy stands to lose P105 billion per week while Metro Manila is in ECQ. The stricter lockdown that started last August 6 ended on August 20. The government has since implemented the modified ECQ until August 31. Chua, however, said the economic losses could be mitigated by ramping up vaccination efforts. This is supported by the contact center industry with its vaccination drive for employees, aside from continuing its implementation of remote work arrangements for most of its workers and observance of health and safety protocols for in-office staff.

“While staying afloat was the focus for many businesses like the contact center sector in 2020, the attention has now shifted to growth and helping jumpstart the economy through hybrid work setup and intensified vaccination efforts,” said CCAP President Jojo Uligan. “These will ensure that our employees are safe, healthy and can contribute to maintaining the country’s position as a top BPO destination.”

Top BPO, CX services destination

For more than a decade now, the Philippines has been recognized as the business process outsourcing (BPO) capital of the world. Several independent advisory reports like Kearney Global Services Location Index and Tholons Global Innovation Index identify the Philippines as among the top countries around the world for BPO and customer experience services.

In 2020, the Philippines ranked no. 5 in the Tholons Global Innovation Index based on innovation and digital, super cities, population, and diversity and inclusion. The 2021 Kearney Global Services Location Index, on the other hand, ranked the Philippines in the 10th spot based on financial attractiveness, people skills and availability, business environment, and digital resonance. The Kearney report also pointed out that the country needs to improve in several key areas to improve its digital resonance score and “remain competitive in a digital-first world.”

This resonates with the recalibrated forecast of Everest Group, which highlighted that the continued growth of the Philippine industry will depend on accelerated digital transformation, robust ecosystem, skilled workforce, and strong government support. The study identified challenges like the perception of higher business environment risk due to regulatory uncertainty and relatively lower availability of digitally skilled talent compared to other locations. Addressing these effectively “will be the key to the growth going forward.”

“With our industry at the forefront of digital acceleration, it’s only essential that we bring in fresh ideas and expert opinions from around the world to help address these issues. Contact Islands aims to be that gathering of minds where new business models will be tackled and constant development will be pursued,” Mr. Uligan said.

Reigniting growth

Bannering the theme Reigniting Growth in the New Business Environment, this year’s Contact Islands, CCAP’s annual world-class conference, is set to revolve around new operating models to help companies navigate the new business environment while keeping employees healthy and safe. The virtual event will run from September 27 to October 1.

Slated to give lectures and panel discussions are top officials from the public sector, World Bank Manila, Everest Group, KPMG Singapore, Salesforce, and several others. Topics range from the global industry overview, digital business acceleration, to economics in the pandemic, government partnership, and many more.

“We remain steadfast in our pursuit of maintaining the Philippines’ position as a top destination for customer experience services,” said Mr. Uligan. “From adjustments, further refinements, to looking towards a post-COVID business environment, we’re hoping to provide the outlook and needed lessons to fuel growth in the industry.”

Interested parties may reserve a slot now. CCAP members can avail one for P1,500, partner associations for P2,000, and non-CCAP members for P2,500. For further inquiries, email rona@ccap.ph or visit this page for more details.