Earthquake disrupts operations in Cebu call centers, ecozones

Call centers in Cebu – touted as the eighth best off-shoring and outsourcing destination in the world –  were forced to stop operations Tuesday after a deadly 7.2 magnitude earthquake struck Central Philippines.

 

The  Contact Center Association of the Philippines (CCAP) noted there was a decision to suspend operations in favor of the safety of call center agents.

 

"Several buildings have been safely evacuated immediately after the earthquake and are undergoing structural assessments for safety by the building owners and their engineers," the association noted in a statement, citing president Benedict Hernandez.

 

In a telephone interview with GMA News Online, Prudencio Gesta, former president and member of Cebu Chamber of Commerce and Industry, said workers in Cebu's economic zones were also sent home after manufacturing plants halted operations. 

 

At least eight economic zones and industrial and IT parks are located in Cebu Island. 

Business continuity plan

 

Tholon’s 2013 Top 100 outsourcing destinations in the world placed Cebu City in the eighth spot. Most of the companies in Cebu Business and IT Park are call center firms.

 

"CCAP member-companies have business continuity plans that we follow for such events. This includes ensuring their employees are guided to ensure their safety and welfare," Hernandez said.

 

In a separate telephone interview, Jojo Uligan, CCAP executive director, said the workload from Cebu call centers were transferred to other sites in Metro Manila and other major cities in the country.

 

“As soon as any emergencies arise in one location, we activate our business continuity plan so we can easily perform what our clients need,” he said.

 

Uligan noted that firms grouped by CCAP use this method to ensure safety of employees situated in areas hit by an emergency or natural disaster.

 

“The primary concern is the safety of our employees,” he said.

 

Gesta noted there seems to be “no major damage in businesses. What is more concerning are the lives lost.

 

“We're just glad it was a holiday. There could be more casualties if it were any ordinary working day,” he added. 

 

According to the Office of Civil Defense-Region VII, citing Philippine National Police figures, 67 people were killed when an earthquake struck Bohol at 8:12 a.m. Tuesday. The office noted the number of fatalities reflected a regionwide count.

 

At least 167 people were reported injured in Central Visayas, the office added.
 

Business as usual Wednesday?

 

“It will be business as usual Wednesday,” said Gesta. 

 

Employees will be allowed to re-enter the buildings once the inspectors give their assurance that it is safe to resume operations, Hernandez said.

 

Manufacturing plants “could be up and running again tomorrow” as most buildings in eco-zones are low-rise buildings, said Gesta.   

 

But most contact centers may take longer to resume operations, because most companies hold offices in high-rises in Cebu's central business district, which take longer to inspect. 

 

Instead of giving a ballpark figure on the economic loss, Gesta noted it was more of a disruption than a business disaster. 

 

“Well, we can say we're okay. It's a normal fluctuation of management, something we should face as part of life,” he said. – VC/VS, GMA News