Small and Medium Call Center companies urged the government for additional tax incentives to help them compete with the large companies amid the talent war and higher power rates. Among the challenges that small call center companies cited were talent recruitment, high attrition rate, government incentives and rising cost of power and utilities.
New facets of the business process outsourcing sectors are still emerging, such as small to medium sized call centers. Small and medium scale call centers (SMCCs) are flourishing and they can prove to be as strong support sector as the big operators we are seeing today. SMCCs are those operated with a capacity of 200 seats or less, and preferably at least 10 seats to ensure viability. The Commission on Information and Communication Technology (CICT), refer to these as Smites or small-and-medium-scale information technology enterprises. These call centers are becoming are becoming a strong presence in the Philippine call center industry for the up coming years. In fact, they are dispersed in the regions unlike the big call centers, and the average SMCC has 10 seats.
There are over 300 small and medium enterprises call center firms in the BPO industry. Small companies have 1,000 and below employees, medium has 1,000 to 5,000 and large with 5,000 and above. Beaver Lopez Jr., chief executive officer (CEO) of Pacific Hub, said that the incentives to SME should be different from that of the large companies to help them to cope with the challenges. Lopez said the government gives tax and holiday incentives in the first five years of operations whether large or small companies.
Edith Reilly, president of TrecPacific Corp., said the government incentives for the SMEs are not enough as the cost of doing business in the Philippines has been going up. She said the lower foreign exchange rate has also impacted the small companies because when they started, the forex was at P50 but is now down to P 43. Majority of their clients are SMEs in the United States. Aside from the incentives, Reilly also said that the government also needs to step up the quality of education in the Philippines as the English speaking skills of the graduates in the past years have been deteriorating.
New facets of the business process outsourcing sectors are still emerging, such as small to medium sized call centers. Small and medium scale call centers (SMCCs) are flourishing and they can prove to be as strong support sector as the big operators we are seeing today. SMCCs are those operated with a capacity of 200 seats or less, and preferably at least 10 seats to ensure viability. The Commission on Information and Communication Technology (CICT), refer to these as Smites or small-and-medium-scale information technology enterprises. These call centers are becoming are becoming a strong presence in the Philippine call center industry for the up coming years. In fact, they are dispersed in the regions unlike the big call centers, and the average SMCC has 10 seats.
There are over 300 small and medium enterprises call center firms in the BPO industry. Small companies have 1,000 and below employees, medium has 1,000 to 5,000 and large with 5,000 and above. Beaver Lopez Jr., chief executive officer (CEO) of Pacific Hub, said that the incentives to SME should be different from that of the large companies to help them to cope with the challenges. Lopez said the government gives tax and holiday incentives in the first five years of operations whether large or small companies.
Edith Reilly, president of TrecPacific Corp., said the government incentives for the SMEs are not enough as the cost of doing business in the Philippines has been going up. She said the lower foreign exchange rate has also impacted the small companies because when they started, the forex was at P50 but is now down to P 43. Majority of their clients are SMEs in the United States. Aside from the incentives, Reilly also said that the government also needs to step up the quality of education in the Philippines as the English speaking skills of the graduates in the past years have been deteriorating.
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I think this is a step in the right direction. Tax incentives would make for an attractive business environment and would benefit the nation's economy in the long run. Just run after those lousy tax evaders to make up in the meantime.
ReplyDeleteI heard that Philippines is the best in terms of outsourcing and based on my research, this country has the biggest part in BPO's industry! This is really a great news!
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ReplyDeleteWow.. Its really very good information. I hope you will update more soon. Thanks a lot..
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