A Kaulkin Ginsberg Publication
LoneStar
11/22/2009

NCO Group Looking to Grow in Philippines: Paper

October 13, 2008
 

NCO Group's Philippine head told a local paper that the company is close to opening at least one new call cent in the country, a sentiment NCO has expressed for much of the year.

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The head of NCO Group’s Philippine operations told a local paper that the accounts receivable management and business process outsourcing giant was looking to add two more call center locations in the Pacific island nation in the next 12 months.

NCO Group, based in Horsham, Pa., is one of the largest debt collection firms in the world. The company currently has three call center sites in the Philippines.

Elek Toth, country manager for the Philippines, told the Philippine Daily Inquirer that NCO was considering two specific locations for new call centers. One would add 500 seats in Marikina City and another would add 730 collection personnel at an undisclosed location.

During its quarterly investor conference call in August, NCO noted that it was readying plans to fully leverage its operations in the Philippines. On the call, management noted that if the current facilities were expanded to capacity and a fourth came online, NCO could employ as many as 8,000 in the country by the end of the first quarter of 2009 (“NCO’s Quarterly Loss Widens on $24.6 million Portfolio Impairment,” Aug. 12).

NCO has been talking about the Philippines for much of 2008. In April, NCO Vice President of Investor Relations Brian Callahan told insideARM that the company was targeting the Philippines for growth this year (“NCO Group Planning Huge Growth in Philippines,” April 4).

Much of the work that NCO has sent to the Philippines has been customer relationship tasks associated with the company’s BPO business. But Callahan noted that NCO is increasing the ARM work it sends to the country as training picks up.

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Comments

Comment from Anonymous on October 13, 2008 at 4:55PM EST

know what that means? more business outsourced offshore. less dollars in the pocket of those who help grow the company. less stimulus for american econmy. more bonuses for the exec's

sound familiar ????????????

Comment from Anonymous on October 13, 2008 at 12:49AM EST

spend 5 minutes training filipinos and you'll understand why every bpo firm wants to be there. i've got empty seats over here - over there they are lining up - when hired they actually show up every day and work hard

Comment from Anonymous on October 14, 2008 at 3:12AM EST

I dont agree with the previous comment. If US ARM shops do adjust their pricing and bring down thier cost of labour to reasonable levels, the work would more likely than not stay onshore. Also, philippines is a proven destination which provides quality services with cheap pricing. Why wont any company take advantage of this...??

Comment from BS on October 18, 2008 at 1:04PM EST

Cost arbitrage would enable companies recover/reduce losses after all. That translates to more more money after all to the end user.

Comment from Rich on February 28, 2009 at 1:45AM EST

Nice one. keep it up!

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