Friday, August 31, 2007

Commentary: Are call centers a boon or bane?

For a fresh college graduate who wants to earn more but prefers to stay in the Philippines, the most popular option is to work as a call center agent. Touted as the sunshine industry of the Philippines, the business process outsourcing, or BPO, industry has attracted hundreds of thousands of young Filipinos in recent years.

Last year, BPO companies earned more than US$3.5 billion employing about 230,000 workers. The call center sub-sector is the major component of the BPO industry, but other BPO services include medical transcription, software development, engineering and architectural design, human resource management services, legal transcription, back office and digital content.

The rise of the BPO industry reflects the phenomenal growth of the service sector. Unlike other Asian countries, the Philippine industrial and manufacturing sectors have been declining while the service sector increased significantly since the 1980s. In fact, half of the country's employed labor force that used to be in agriculture is now part of the service sector.

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