Projected 4% Revenue Growth for Philippine Contact Centers in 2019!

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[pushAUX.com] The Contact Center Association of the Philippines (CCAP) is looking at a 4% revenue growth for the local contact center industry of the Philippines, this from a 5.1% expansion rate in the previous year (but it’s cool given that 5.1% is higher versus the 2018 average global market growth rate of 3-4%).

(PushAUX: Yes, the BPO sector reported a 5.1 percent growth in 2018, which is below the projected 8% annual growth target under CCAP’s 2022 Roadmap. Duterte kinda fucked things up with his anti-American rhetoric in the early months of his administration, followed by the near fatal industry hit brought about by his tax reform program, the dreaded TRAIN)

Office Rental Explosion!

According to CCAP, the BPO industry ended 2018 with 1.23M million Filipinos gainfully employed under its wings.

Benedict Hernandez, CCAP Chairman

“In the first four months, we took up 126 thousand square meters of space. And when you look at this figure, it’s back to more historical deals we had before. Usually, we consume 400 to 450 thousand square meters a year… And so it’s a good lead indicator. If our members and investors are buying real estate, that means they want to create more jobs. We’re trying to work on this initial information while the contact association survey and result are still ongoing.”

CCAP remained committed to assisting the government to develop provincial locations for IT-BPM centers. However, Jojo Uligan, CCAP President, maintains that investors do prefer the “hub and spoke” model, where BPO’s are first set up in Metro Manila before being expanded into the provinces.