Determinants of profitability of contact centre companies in the Philippines, 2005-2009

The business process outsourcing (BPO) industry of the Philippines came out to be one of the major players in Asia\u27s business process outsourcing. It was one of the main sources of economic growth and development in the Philippines. The Philippines before ranked second to India when it comes to outsourcing, but recent studies show that the Philipines have already topped the global outsourcing industry. This study was conducted in order to identify the determinants of profitability of contact centre companies in the Philippines to be able to recommend key changes to improve both profitability and competitive edge of contact centre companies. The researchers of the study assumed that leverage, firm growth, firm size, debt-to-equity, equity turnover are determinants of profitability of contact centre firms. Financial statements of ten (10) companies for the year 2005-2009 was needed for the study panel data regression analysis was used to validate the relationship between the independent variables and return of equity of contact centre firms. The results showed that firm growth, leverage, and equity turnover are the drivers of contact center firm\u27s profitability. Equity investment is one of the most important sources of profitability of the call centre industry contact centre firms rely their profitability on long-term debt and that sales has negative relationship with profitability. The said internal variables may also lead to country\u27s development in the economy. Contact centre firms could continue to contribute to the Philippine economy if they would focus also on their internal driving forces thus could aid in employment generation in our country