Fil-Hispano joins call service center bandwagon

Fil-Hispano Holdings Corp. is hitching on the call center bandwagon as part of efforts to improve its revenue base.

In a disclosure to the Philippine Stock Exchange, Fil-Hispano said it has entered into a memorandum of agreement with All Asia Customer Service Holdings Ltd. (ACSH) for a due diligence study on All Asia Customer Services Inc., a wholly-owned subsidiary of ACSH.

Similarly, the agreement allows ACSH to conduct a due diligence study on Fil-Hispano.

The parties may then enter into an agreement for the acquisition by ACSH of a controlling interest in Fil-Hispano in exchange for the latter’s acquisition of the call center business of ACSH.

The acquisition of controlling interest may require Fil-Hispano to increase its authorized capital stock to P600 million.

However, details of any acquisition shall be disclosed after the definitive agreements are finalized and executed, Fil-Hispano said.

The revenue potential of call or contact center firms has proven enormous since almost every business, even in the global markets, has realized the vialability of outsourcing some of their services.

A global research organization has estimated that revenues from call center services would reach $42 billion this year.

This early, contact centers operating in the Philippines are looking at tapping the outsourcing market in Japan, touted to be the biggest outsourcing market outside of the United States and some countries in Europe.

Fil-Hispano, meanwhile, was principally engaged in the manufacture and sales of ceramic wall and floor tiles.

However, the company decided to shut down permanently its ceramic tile manufacturing facilities in 1999 due to unprofitable operations.

Management has eventually developed a business plan to raise funds to retire its existing loans, to fund costs related to its reorganization and to invest in companies engaged in Internet, high-technology, media, communication, leisure and entertainment business ventures.

In view of the company’s decision at the end of 1999 to discontinue the manufacturing of ceramic tiles permanently due to continuing losses, Fil-Hispano remains a mere holding company no longer involved in manufacturing.