Philippine Call Centers Ring Up Business

MANILA -- The Philippines and other smaller countries are gaining on what used to be the sole superpower in the global call-center business, India.

The Philippines' share of the industry -- the business of helping people rectify computer problems, pitching magazine subscriptions and other time-consuming tasks -- has risen from virtually zero a decade ago to 15% today, the No. 2 spot, according to Dallas-based Everest Research Institute.

Meanwhile, India's share of the global business-processing market, while growing in value, has fallen to 40% from about 80% in 2004 as the industry spreads to other parts of the world.

This shift isn't because of a sudden aversion to India. India-based call centers still lead the industry, racking up $11 billion in revenue last year, according to the New Delhi-based National Association of Software and Services Companies, compared with the $6.8 billion earned by Philippines-based providers. India's $29 billion-a-year sector for information-technology services dwarfs other contenders.

Instead, the Philippines and other countries are benefiting from changes in the outsourcing industry, in which major clients increasingly require call centers to operate around the world. The reasoning is that if hurricanes, earthquakes or political upheavals hit one site, calls can be quickly routed to other centers elsewhere.

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