Friday, February 6, 2009

Is Recession Affecting the call center industry?

The call center industry has been around for quite sometime. I can personally prove that it has been a booming business having stayed with my present company for the past five years.
A lot of people have been asking me if the declared recession in the US is currently affecting call centers. There is only one answer I have given so far that is a big NO. Hopefully that would remain as it is in the years to come.

Here are my reasons:

1. US companies has been sufferring a lot of losses due to the change in the status of their economy. Costs have been soaring up high and has contributed a lot to the closure of their company. A lot of US companies has come to the Philippines, India, or Singapore to outsource. They find this more cost effective. They can save up of 70% on labor cost alone.

2. Some accounts pull out not because they can't pay or the cost has been too high. They pull out of companies who can't meet the standards that they have set. Each account has its own metrics that the team has to meet. That's why some companies have a 90 days trial period to measure the progress of the agents. They meet every 30 days for evaluation.

The BPO industry still remains promising and guarantees a lot of people to have a secured job.

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