A presentation of the economic and social benefits of Call Center investments in the Philippines. Presented during the 2005 Philippine Computer Society General Membership Meeting. (c. 2005)

1. CALL CENTER INVESTMENTS:
Spurring Economic Growth
and Social Development
Raffy David and Cesar Tolentino
19 August 2005

2. INCREASES EMPLOYMENT
Generates
approximately
30,000 new jobs per
year (agents and call
center personnel).
This trend is
projected to continue
in the next 2 to 3
years E – Estimate; F – Forecast
Source: XMG Asia-Pacific, 2004
2000 2001 2002 2003E2004F2005F
0
10
20
30
40
50
60
70
80
90
100
NUMBEROFAGENTS(in'000)
YEAR
4.8
8.0
14.0
19.5
60.0
92.0

3. 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, and
international customer interaction
experiences

4. IMPROVES THE RECOGNITION OF THE
PHILIPPINES IN THE GLOBAL ECONOMY
Allows the Philippines
to establish a name
as a premiere
offshore destination
for outsourced
professional
services (which
includes other BPO
services aside from call
centers).

5. OPPORTUNITY TO DEVELOP A STRONG
COUNTRY BRAND NAME IMAGE
As a premiere
offshore destination
for outsourced
professional and
business services,
the Philippines can
develop a strong
brand name image
in the concept of
“Philippines, Inc.”

6. GENERATES NEW SOURCES OF
INTERNAL REVENUE
The entry of new locators (who would
otherwise have not located in the
Philippines) provides the Philippine
government with access to new sources of
internal revenue in the form of:
1. New corporate taxpayers in terms of the locators
themselves
2. More personal income tax payers with higher
income levels

7. New Corporate Taxpayers
Each new call center locator has
the potential to generate
$3Million in Revenues per year
(assuming 200 active seats),
corresponding to
$0.15Million in VAT revenues (net of
credits)
$0.15Million in Corporate Income Tax
revenues (if there is no Income Tax
Holiday or if the ITH has expired)
Or $0.30Million in total Internal Revenues per new
call center per year
$3MillioninRevenues
$0.15M in VAT
$0.15M in Income
Taxes

8. More Affluent Taxpayers
Each new call center
locator, on the average,
can employ as many as
300 agents (assuming 200
active seats), with the
capacity to generate
$0.015Million more in
personal income tax revenues
per year
Most entry-
level staff
pay P1,200
of Gross
Salary to
taxes per
month
Agents pay
an additional
P500 per
month

9. LOCAL INDUSTRIES ELEVATE THEIR
COMPETITIVENESS TO WORLD-CLASS LEVELS
The need to provide world-class services pressures
local companies to elevate their service quality to
globally 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

10. LOCAL GOVERNMENTS AND COMMUNITY
LEADERS BECOME MORE BUSINESS-
CENTERED AND SERVICE-ORIENTED
Call centers’ ability to offer employment to
large numbers of constituents enamor them
to local governments and local community
leaders.
This sentiment compels these leaders to
adopt mindsets and orientations that are
more responsive to business needs – further
attracting more investments into the sector.

11. CATALYZES SME GROWTH AND SOCIAL
DEVELOPMENT
The huge requirements of call centers for
auxiliary services (public transport, safety
and security, healthcare services, food
service provisioning, among others) offer
opportunities for:
Business growth among SMEs providing such
auxiliary services, and
In turn, offer greater employment opportunities
among expanding SMEs.

12. BUSINESS GROWTH AMONG SMEs
It is estimated that for every
$1 in revenue generated
by a call center,
approximately
$0.15 goes to domestic consumption
of products and services
($0.45Million additional domestic
consumption per call center per
year),
$0.05 of this consumption is served
by SMEs, generating approximately
$0.15Million in incremental GDP per
year per call center.
Domestic
Spending
to SMEs
($0.05)
Other
Domestic
Spending
($0.15)
Other
Uses
($0.80)

13. GREATER EMPLOYMENT OPPORTUNITIES
AMONG SMEs
The additional $0.15Million incremental GDP
per year per call center from SME revenues
drives employment growth in terms of
SMEs employing more personnel to serve the
additional consumption demand, and
Support businesses (banks, transportation,
utilities, government services), requiring more
personnel to support SME growth.

14. GREATER EMPLOYMENT OPPORTUNITIES
AMONG SMEs
Every call center agent employed is
estimated to generate an average
of two new hires among the SME
sector.

15. SUMMARY OF CALL CENTER BENEFITS
Increases Employment
Elevates Professional Competence of the ordinary
Filipino worker to world-class level
Improves the recognition of the Philippines in the world
market
Creates an opportunity to create a strong brand name
for the Country
Local companies elevate their competitiveness to
world-class levels
Catalyzes SME growth
Greater Employment opportunities among SMEs

16. THANK YOU
CCAP