Domingo-Cabarrubias 75
industry” because the service entails interactive communication
with the clients or customers (Ofreneo et al. 2007). A call center is
generally a customer-interactive office set-up consisting of computers
hooked up to the internet and manned by accent neutralized or
product trained operators who respond to inquiries or complaints
from callers or customers calling from countries where a particular
product or service is being marketed, produced and/or sold (San Jose
2007). Because of the time difference, customers in North America
and Europe are serviced by call operators of Asia, mainly from India
and the Philippines, logging in for work at night.
The birth of the call center/BPO industry was closely
associated with the advent of ICT-enabled services such as data
encoding, customer service, and business process outsourcing to
countries such as the Philippines, India and China (San Jose 2007).
According to San Jose, outsourcing was an effort to exploit segments
of the labor market within the developed countries where wages
were lower, to increase profit. Eventually, with the integration of
economies brought about by globalization, outsourcing or offshoring has become a means to exploit the global reserve army,
especially in the developing countries such as India. In a broad
sense, outsourcing is the relocation of business processes from one
country to another, which includes key business processes such as
production, or services, where there is a significant reduction in
labor costs (Amante 2008). As described by San Jose (2007), global
outsourcing, or off-shoring, is engaging in international division
of labor so as to tap the comparative advantages that locations or
countries have, in terms of the cheapest sources of quality labor,
technology, market access, and other value added of doing business.
Companies in developed countries benefit immensely from
this set-up. According to Palatino (2009), by taking advantage of
highly-skilled and low-value labor in poorer economies such as ours,
foreign firms gain an estimated net savings of 20-40 percent on labor
costs. Citing a 2004 study, Pineda-Ofreneo (2005) remarked that
foreign companies save a lot by transferring jobs to the Philippines
because of the wage differential – whereas the average call center
employee in the U.S. gets USD4,000 a month, in the Philippines,
the rate ranges from USD300 to 400. On the other hand, Palatino