Attrition Rate and Labor Supply
  The attrition rate in the call center industry is high. For instance, People Support’s attrition rate of 17% for its 3,900 employees is considered to be low. In some cases, attrition rate is as high as 40% - 50% (?). In terms of hiring, the current take up rate is less than five percent or in some cases as low as two percent.

As of end-2004, there are about 45,000 seats and 67,000 full time employees. This means that the ratio of employees to seat capacity is 1.5X. For an industry which is estimated to have around 100,000 seat capacity, the industry must address the problem of manpower supply. Even if the industry would just add 30,000 seats per year, the industry would have to hire an additional 45,000 per year or 3,750 per month. This means that in order to ease the tight market supply, the call center companies and educational institutions will have to address the issue of training in order to raise take up rate from fresh graduates.
Call Center Industry Demand for Personnel
Ratio of Seats to Employees
Seats 45,000
Employees 67,000
Ratio 1.49
  2004 2005E 2006E 2007E 2008E 2009E 2010E
Total Seats 45,000 100,000 130,000 160,000 190,000 220,000 250,000
Employee/Seat Multiple (X) 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Total Industry Demand 150,000 195,000 240,000 285,000 330,000 375,000
Net Addittion per year 45,000 45,000 45,000 45,000 45,000
Net Addittion per month 3,750 3,750 3,750 3,750 3,750
Presently, the Philippines produces 70,000 IT/Computer Science graduates, 100,000 Business Administration and 35,000 Engineering graduates for a total of 205,000. Given these figures, hiring rate would have to rise to 25% - 30% in order to meet demand (and offset high attrition) especially if the current growth continues.