01 March 2007

How will this affect Call Centers in the Philippines?

Some of Silicon Valley's largest technology companies, in an effort to cut costs and address a mounting stack of customer-service complaints, are embracing an offshoring trend known as ``nearshoring.''

Unlike the traditional offshoring that flung U.S. customer call centers halfway around the world to India and other faraway countries, nearshoring sends white-collar jobs to Costa Rica, Mexico and other countries in the Western Hemisphere.

The allure of nearshore sites is their ample supply of knowledgeable, low-paid workers who speak the customers' language fluently, understand their cultural nuances and perhaps even live in the same time zones. For big U.S. tech companies, shifting jobs to closer locations can avoid the operational bumps that would otherwise occur in the more distant, more popular offshoring destinations in Asia.

I don't think there'll be an immediate effect on Philippine Call Centers. Maybe a year or two down the road but not now.

But the Philippine government should look into long term solutions and actions with with regards to call centers. I mean, it won't be sunny and rosy everyday in the Philippine call center industry. Every third person i know seems to be a Philippine call center agent.