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Provincial Call Centers

Posted on July 5, 2014 | No Comments on Provincial Call Centers

The boom in the call center industry is felt not only in the metropolis but also in the provinces as many call center companies start sprouting in provinces especially in Freeport zones. The boom of call centers can primarily be attributed as a cost saving measure for companies abroad. Many call centers moved to countries where they can avail of cheaper manpower. The trend of putting call centers in the provinces emerged as another strategy to even reduce costs.

Placing call centers in established central business districts like Makati and Ortigas is more costly because land and office space are relatively more expensive. In the provinces, land and office rent is cheaper. In special free port zones, multinational investors are even given tax incentives in putting up businesses in those locations. They are even given special attention, privileges, and priority in putting up business allowing them to better facilitate business requirements and other needs. Local governments provide these incentives apparently to encourage investments that in turn spur economic growth in the local provinces.

Whereas labor cost in the Philippines is cheaper compared to outsourcing countries like the US and the UK, labor cost in Philippine provinces is even cheaper compared to that in its capital Manila. Thus, putting up call centers in the provinces allows companies to avail of an even cheaper labor. Incidentally, cheaper labor does not necessarily mean cheaper quality as a great majority of manpower sources in Manila is actually from the provinces.

Not only are labor costs cheaper, but generally the lifestyle in the provinces entails cheaper means of living. Employees including expats can avail of cheaper apartments, food, and life style. In short, call center companies in provinces allow them to attain cost leadership as its major business strategy to be more competitive.

The trend of moving call center companies in the provinces help disperse economic growth in the different regions which is generally beneficial to the country. It decentralizes economic activity which in turn decentralizes urbanization. This translates to the growth and development of provinces and decongestion of Metro Manila.

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