Professional Documents
Culture Documents
Outsourced Call Centers and English in The Philippines
Outsourced Call Centers and English in The Philippines
0883-2919
ERIC FRIGINAL∗
ABSTRACT: The influx of outsourced call centers from the United States to the Philippines since the
late 1990s has paved the way for the creation of thousands of jobs for Filipino professionals who are
able to communicate in English and provide telephone-based customer services to American customers.
The Philippines has become one of the major centers for outsourcing because of its tradition of bilingual
education, affinity to the American culture, and cheap labor market. This study examined the effectiveness
of micro language policies of a US-owned call center relative to the variety of English spoken in the
Philippines in preparing Filipino professionals to work in outsourced call centers. The relationship between
ESL proficiency and success in delivery of support was also analyzed by comparing English communication
and transaction monitoring scores of Filipino customer service representatives (N = 74) collected for over
a period of seven months in 2003–4. Although the initial English scores of participants were below the
expected level of proficiency set by the call center company, assessment data indicated that with proper
training and effective language-based programs, the participants exhibited improvement in English during
transactions. ESL proficiency, however, only accounted for 10 per cent of the variability in the transaction
monitoring scores of the participants.
INTRODUCTION
One intriguing area for investigation in intercultural communication and language-based
research is the phenomenon surrounding the growing influx of outsourced call centers from
the US in countries like India and the Philippines. Customer service call centers in the US
have been gradually outsourced overseas since the late 1990s due to the increasing business
demand to trim expenses incurred in maintaining these customer support centers on the
mainland. Various companies ranging from Fortune 500 businesses to smaller internet-
based firms have relocated their customer service operations to countries with available
human resources and cheap labor costs, primarily to improve their overall financial structure
(Friginal, 2004a; Magellan Alliance, 2005). A report from Earthlink, a broadband internet
company in the US, presents the business realities involved with outsourcing in the current
economy. For financial stability, savings and profit, the company laid off 1,800 of its
5,100 American employees in 2003 and outsourced customer service jobs to Manila, the
Philippines and Hyderabad, India. This decision resulted in a profit of $14.2 million in the
second half of 2003 (Schoenberger, 2004).
The US has lost more than 450,000 call center jobs to India and the Philippines since
1999. In the Philippines, outsourced call centers currently employ over 150,000 Filipinos
providing a variety of customer and employee care services to Americans including han-
dling call-in queries and technical support; e-mail, online chat, travel and consumer ser-
vices; and medical and legal transcriptions (Olchondra, 2006; Teves, 2003). The $5 billion
a year outsourcing industry in the Philippines is projected to have a yearly 75 per cent
∗ Program in Applied Linguistics, English Department, Northern Arizona University, Liberal Arts Building, Box 6032,
Flagstaff, AZ 86011-6032, USA. E-mail: eric.friginal@nau.edu
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02148, USA.
332 Eric Friginal
increase in the coming five years from 2006 to 2011 (Tuchman, 2006). The country con-
tinues to invite American companies to relocate their customer service centers in its major
cities (Manila, Cebu, Clark, Davao) by providing tax incentives, improving technology
architecture, and focusing on the marketability of its human resources (Friginal, 2004b).
Philippine President Gloria Macapagal-Arroyo, in her State of the Nation Address in
July 2004, emphasized the importance of the call center industry in the country’s economy.
She mentioned that investments in call centers and back office operations have increased,
resulting in 68 US-based call centers in 2004 compared to only two in 2000. This develop-
ment obviously meant the creation of jobs and additional flow of investment money from
international firms (Uy, 2004). In a press statement, Department of Labor and Employ-
ment (DOLE) Secretary Patricia Sto. Tomas said that Filipinos’ intelligence, adaptability,
industry and proficiency in the English language have made the Philippines one of the
world’s principal hubs for call center investments and operations. Citing the Labor Market
Intelligence Report of the DOLE’s Technical Education and Skills Development Authority,
the Secretary said that “overseas investors preferred Filipinos for their English proficiency,
high rate of literacy in information technology, trainability, natural warmth, customer care
orientation, and a strong affinity to the Western culture that were all vital in call center
operations” (Friginal, 2004c; Uy, 2004: A12). As a major English as a Second Language-
(ESL-) speaking country with a tradition of bilingual education for more than a century,
the Philippines is eminently suited to supplying English-speaking customer service repre-
sentatives (CSRs) to US companies.
The gap in English education in schools is one reason why some sectors have called for a
redirection of language teaching in the country, and have proposed the “intellectualization”
of Filipino and its use as the main medium of instruction in schools. Sibayan (1994) contends
that the country will benefit from a cultural restructuring in language education. He defends
the need to rewrite the bilingual program to include regional languages and limit the extent
of English as medium of instruction in mathematics and science. This is a controversial
proposition that has not received the support from the Filipino masses and the elites; with
the perceived economic benefits of English for international business and for overseas
employment, this move has not gained significant momentum. There appears to be no
major backing for this argument so that, even in rural areas, the use of English in schools
is regarded as ideal and is not considered to be detrimental to overall learning (Acuna,
1994; Nical et al., 2004). Although there are signs, especially in relation to achievement in
mathematics and science, that students experience performance difficulties due to language,
English still maintains its status as the language that brings economic benefits to people.
with both native and non-native speakers of English in many settings related to intercultural
business transactions. It appears, therefore, that the quality of English spoken and used in
the Philippines could stand on its own and be considered a self-determining variety of
English which is deployed across structures equipped to fully function in international
settings (Phillipson, 2001; Tupas, 2004).
The two opposing views on the quality and status of English used in the Philippines (i.e.
“native-like fluency” vs. “international intelligibility”) have implications for the macro
and micro language policies in various contexts. As shown by Monsod’s (2003) comments,
criticisms regarding the English proficiency of the Filipino professional result from the
failure of the education sector to teach fluent English, especially in the public schools.
This view argues for language-based policies, especially English-in-education programs,
to aspire to native-like mastery and fluency in standard American English. On the other
hand, groups of people who advocate the recognition of a variety of Filipino English seem
to be contented with current policies, and are more focused on the overall improvement of
quality of teaching and materials development. This second view relates to the principles of
EIL, and is supported by the current success rate of overseas employment. Because skilled
labor is the number one export of the Philippines, it could be argued that English and
communication needs for international understanding have been successfully addressed by
language policies in the country, and that no change of course is necessary. Focusing on
goals such as comprehension and intercultural communicative strategies instead of fluency,
accent and sentence structure could be practical and more attainable. Making Filipinos
“own” their variety of English can help further determine language policies attuned to
the cultural and economic realities in the country (Graddol, 1997; Hung, 2002; Matsuda,
2003).
With the boom of employment in outsourcing, however, it is clear that fluency, accent
reduction and the acquisition of high-level English have dominated in influencing language
planning and shaping popular opinion. The government and education sectors appear ready
to respond to the language needs of the call center industry, as a high-profile industry cur-
rently providing jobs and revenues to the country. This direction would influence future
guidelines for organized, top-down language planning implemented by the education sec-
tor. Highlighting the importance of fluency in English following the American standard
variety could define the nature of macro and micro language policies in the Philippines.
If the country pursues this focus in the coming years, it would be fair to ask if educated
bilingualism and plans to teach fluency following an exo-normative model (i.e. standard
American English) could lead to the acquisition of native-like mastery in the target lan-
guage, taking into account the language realities in the Philippines. Given that schooled
bilingualism has achieved only minimal proficiency, within very limited registers (Kaplan
and Baldauf, 1997), the outcome could still be a disappointment for sectors demanding
fluency in English from the Filipino workforce in international business.
service-oriented CSR is highly desirable in order to relate to the customer and show adequate
personalized service (D’Ausilio, 1998).
The service industry is efficiency-driven and highly customer-centered. A CSR’s inabil-
ity to adjust to the needs and demands of the caller could mean a failure of the transaction,
with significant negative effect on business (D’Ausilio, 1998). In the Philippines and India,
this failure of transactions could also cause the termination of the CSR’s employment by
the company (Pal, 2004). Providing “total quality service” is important in maintaining cus-
tomer loyalty (Albrecht and Zemke, 2001), and the use of effective language in transactions
is a major factor in facilitating a kind of service that will guarantee customer patronage.
For non-native speakers of English, it is ideal to display high-level ESL abilities in service
encounters in order to efficiently address customer needs and avoid misunderstanding.
In addition to proficiency in the target language, the role of intercultural competence
should not be discounted in service interactions involving speakers from different lan-
guage backgrounds (Korhonen, 2003). Training programs that integrate instructions and
tasks intended for the acquisition of intercultural competence is necessary in outsourcing.
Korhonen states that training in international communication which is facilitated without
a direct link to the cultural norms of the target language has been shown to fail. The failure
to utilize intercultural communicative strategies potentially leads to miscommunication. In
call centers, miscommunication, as in most business-oriented settings, is harmful in trans-
actions and must be avoided to assure the completion of support. At times, the inability of
non-native speakers of English to express specific instructions without confusing the na-
tive speaker creates errors and misunderstandings (Jones, 2003). As customers, the native
English speakers ideally should also learn to accommodate the language and culture-based
limitations of the CSRs. Unfortunately, because of the inherent dynamics of customer ser-
vice and the political and economic implications involved in the outsourcing of US jobs, the
burden is left to the non-native-English- speaking CSRs to support customers efficiently
and avoid constant miscommunication in order to sustain the status quo of outsourcing
outside the US mainland.
Because of limited training materials designed for outsourced CSRs, many language
training programs in call centers in the Philippines use materials from the US and those
that are available in the market. These references and activity manuals on call-handling
practices and mock transactions are primarily written for native speakers of English or
those with high-level language proficiency. Training topics in telephone support which
address service competence include appropriate speech techniques, establishing rapport
and personalization of support, and clarity, effectiveness and accuracy of information. The
foci of these topics already assume proficiency in the language. These common topics
are universal in the context of outsourcing but, like the ideas of Korhonen (2003), need
more grounding in intercultural competence, and consequently effective language usage.
However, even given the obvious concerns about these issues in training curriculum and
materials, the prevailing training environment in many call centers appears to address
the basic requirements that support the preparation of CSRs in customer service. More
provisions for practice are given, and constant monitoring and coaching are provided by
language trainers. Call centers employ American expatriates and Filipinos with advanced
ESL teaching experience to work with CSRs in various areas of language production and
task performance. Once the CSRs start taking actual calls from Americans, they gain
valuable experience in the real-world use of the English language in addition to exposure
on the range of issues and concerns coming from the customers.
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THE STUDY
Setting
The study utilized language testing and transaction monitoring scores from the Quality
Assurance (QA) department of a US-owned call center company outsourcing customer
services in Manila, Philippines. The Filipino CSRs selected to participate in the study
were serving a major US financial firm (heretofore referred to as “account”) dealing with
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Outsourced call centers and English in the Philippines 337
stock market trading, investments, and banking. The customers in the US called a toll-
free number that directed them to the call center in Manila. Transactions occurred during
regular US business hours. In order to address the time difference, the CSRs in Manila
worked on night shift, usually from 10 p.m. to 6 a.m. The CSRs were employed by the
call center company and not by their particular account. They received their salaries from
the call center, which in turn collected revenues from the account for manpower services
and use of technology. The call center, in coordination with the account, provided English,
telephone handling, and product training to the CSRs.
By Philippine standards, the average entry level salary of CSRs is highly competitive. A
newly hired CSR’s monthly salary of around PhP13,500 ($275 US at the current exchange
rate in 2007) is higher than that of many middle-staff positions in the government, and
is comparable to the monthly salary of an instructor in a public university. Additional
remuneration such as overtime pay, productivity bonuses, transportation allowance and
medical insurance make the financial package attractive for university graduates. Because
many call centers employ mostly young, English-speaking professionals, the industry has
cultivated a dynamic, fast-paced and competitive atmosphere which appears to capture the
interest of a greater number of prospective CSRs. In the last five years, there has been a
continued increase in the number of applicants seeking positions in the industry.
Participants
The participants of the study were 74 Filipino CSRs who formed the first three batches
of new CSRs for the financial account which started outsourcing with the call center in
September 2003. Only three CSRs had previous call center experience; the rest were either
working in business-related jobs or recent college graduates before they joined the account.
The ages of the participants ranged from 21 to 38 years old. There were 33 males and 41
females in the group. Most of the participants were graduates of business universities
in Manila. Only four out of the 74 participants went to universities outside Manila, but
there was no reason to consider these universities as different from or inferior to Manila-
based universities. This also meant that the participants were all educated in schools that
followed the national English-in-education policies and the bilingual education program
of the country.
Data collection
Scores from four QA testing and monitoring sessions were collected from September
2003 to March 2004. There were three separate English test scores and one set of Quality
Monitoring (QM) scores for all the 74 CSRs in the study. The company used its own English
assessment instrument called “American English Optimization” (AEO), which measured
four major attributes: (1) pronunciation – articulation of segmentals; (2) application of
speech techniques – intonation, pitch and volume, rate, i.e. suprasegmentals; (3) vocabulary
and grammar; and (4) listening and comprehension. The AEO test had three segments: (1)
face-to-face interview with the trainer; (2) an activity in giving directions; and (3) narration
or story creation from a storyboard. The spoken test was administered for 15 minutes per
CSR and was recorded and stored in a database. Neither the AEO test nor other QA language
ability measurements used by the company were measured for reliability at the time of the
data collection for the present study.
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338 Eric Friginal
A pair of raters from QA were assigned to rate the tests following the company’s standard
for rating English proficiency. The raters were either native speakers of English or Filipino
professionals with ESL teaching experience. The two scores from the raters were averaged
to obtain the final test score of a CSR. After grading the tests, the raters conducted a feedback
session with the CSRs to discuss areas for improvement in speaking and to provide coaching
in spoken English. A regular calibration session for the raters was conducted to maintain
a level of objectivity in rating the performance of the CSRs.
The first AEO test (pre-test) was administered before the participants took their core
skills training, and the second AEO test served as the post test. The core skills training
was conducted for two weeks and focused on English language usage, phone handling, and
short lessons about the US culture. Following the core skills training, the CSRs attended
their two-month product training. This training was conducted by the account, and was
specifically designed for the actual type of work the CSRs were hired to do. After the
participants had completed their first month of actual telephone support, the third AEO
scores were collected by randomly selecting three recorded transactions and rating English
use in the transactions using the same AEO scorecard.
The QM data were obtained from a customer-driven, quality-of-service scorecard. There
were “quality monitors” who were tasked to regularly assess the CSRs’ performance. As
with the AEO raters, the same process for rating, calibration and feedback were followed
by the quality monitors. The main areas for assessment in QM were divided into two
categories: (1) accuracy of support; and (2) transaction handling. The QM scores used for
this study were taken after the CSRs’ first month of actual phone support.
RESULTS
Level of English proficiency expected by the call center
There were three language proficiency levels measured by the AEO: Level 1 (63–
79 per cent), Level 2 (80–90 per cent), and Level 3 (91–100 per cent). The call center
company established Level 2, in the AEO scoring algorithm as the minimal English rating
for CSRs who were non-native speakers of English. The CSRs who qualified in this level
were no longer recommended to attend language training classes based on the company’s
English monitoring and training process. This meant that a Level 2 CSR was considered
to have achieved advanced ESL speaking skills comparable to native-like competence in
English. The first AEO scores were used as a measure to validate the English proficiency
of the CSRs based on the standards of the company and considering their university train-
ing and their education in English. These AEO scores were relevant because they served
as measures of how a Filipino professional educated in the Philippines compared against
the standards in language proficiency set by a particular US-based company. The AEO
scales and applicable interpretations of assessment results came from an internal research
design pre-tested by the company before being utilized in the evaluations. Table 1 shows
the summary of the first AEO scores of the 74 CSRs in the study.
Only two out of the 74 CSRs were rated Level 2 in the first AEO test, while 21 CSRs
“failed” their first AEO test. The majority of the CSRs received a score between 63 and
80 per cent (Level 1). These CSRs, as well as the 21 who failed their first test, were
recommended to attend English proficiency training sessions (core skills training).
Results of initial testing showed that, based on the company’s standard English
proficiency requirement for CSRs who were non-native speakers of English, Filipino
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Outsourced call centers and English in the Philippines 339
No. of CSRs 21 51 2 0 74
professionals needed more training in English language use in the context of outsourced
customer service. Relevant qualitative comments by the raters identified pronunciation
and speech techniques as major areas for improvement. Since this was the first AEO test,
it was expected that most of the participants, especially those with no prior call center
background, would not score very well.
The data showed that the language training of a great number of participants was inade-
quate in preparing Filipino professionals to qualify for Level 2 proficiency in the customer
service setting. The same observation was shared by human resources recruiters tasked to
interview applicants for many open positions in the company. Pronunciation and vocabulary
range of many applicants appeared very limited compared to the specific expectations of
the AEO scales. In hindsight, the level of language proficiency set by US-based research
and testing measures did not readily match the educational preparations of the Filipino
professionals. Initial language assessment scores like the first AEO showed that schooled
bilingualism as a national standard in the country would need supplemental help in training
and curriculum design to address the needs of the call center industry.
The results of the first analysis, however, should not be construed as a total indictment
of English language policies in the Philippines and of the current professional English
spoken by university graduates. The data simply showed that the specific expectations and
standards of English usage in outsourcing were at a level above the proficiency of the
selected participants for the study. The same could be inferred as true for many Filipino
professionals. In the first place, native-like proficiency was not the major goal of the macro
language programs in the Philippines, from bilingualism to English-in-education policies.
Because the call center industry required a particular “native-like” level of proficiency,
substantial training for CSRs would be necessary to match this level and expectation.
Nevertheless, criticism regarding the English-in-education policies of the country and the
current educational system could be strengthened by these results. Language teaching and
training for Filipinos appeared to have weaknesses in terms of how the goals of bilingualism
were originally set up, logistically implemented and culturally embraced by the country.
Some sectors seemed to expect an unrealistic level of English proficiency from their human
resources that the education of professionals was not able to provide. A key question
applicable to this observation was stated by Kaplan and Baldauf (1997: 136): “What degree
of bilingualism in what registers of the target language was attainable in the specific context
of the country?” In the case of the CSRs and their first AEO scores, English education
and bilingualism in the Philippines did not help them to achieve Level 2 proficiency,
because they were trained in a situation and program that did not allow the acquisition of
native-like proficiency in the target language. In addition, language instruction in school
did not provide sufficient contexts for interactions with native speakers of English. The
duration of instruction and the school syllabi simply did not permit the inclusion of all
possible domains of usage necessary to cover the pragmatic features of the L2 (Kaplan
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340 Eric Friginal
and Baldauf, 1997) when compared to the explicit requirements of outsourced customer
service. The message to educators, politicians and language planners, then, would be not to
expect English-in-education policies to produce native-like competencies in two languages
if the contextual variables do not allow this to develop (Baetens Beardsmore, 1993). In the
Philippines, this appeared to be the case.
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Outsourced call centers and English in the Philippines 341
Although there was significant improvement over the course of the three tests, the mean
score of the 74 participants in AEO 3 (73.03 per cent) was still below the minimum score
for Level 2 proficiency (81 per cent). Qualitative observations on the scorecards of the
participants noted improvements in pronunciation and vocabulary use, but also highlighted
the overall need for more fluent speech, fewer pauses and evident confidence in spoken
discourse. The CSRs demonstrated their ability to memorize chunks with good flow of
speech and effective accent and intonation in delivery, but seemed to lose fluent features
of speech when asked to respond to a question that was not in their scripts or when they
were confronted by irate callers.
Nonetheless, it would be interesting to further study these results in the future and in-
vestigate the acquisition of native-like proficiency in English for CSRs in this context of
outsourcing. Future directions for specific micro language policy and planning in intercul-
tural communication and customer service could be drawn from these results as well. The
linear improvement in test scores showed that the level of professional English spoken by
Filipino CSRs continued to develop in relation to American expectations over a span of
seven months. It appears that instituted micro language policies helped L2 speakers to focus
on important features of language that led to clearer understanding and effective delivery
of information. A consistent improvement in the language skills and task performance of
Filipino CSRs is encouraging to the industry, and suggests that, with such strategies as this,
the status quo of outsourcing could be sustained in the Philippines.
also highly important. Fluency in speaking was not enough to predict that a CSR would
successfully deliver accurate support and connect well with the client with personalized
service as measured by the QM scorecard. An example supporting this observation was
demonstrated by the CSR who got the highest score, 93 per cent in AEO 3 but only got
73 per cent in QM score, while a Level 1 CSR in AEO 3 with a score of 70 per cent got
86 per cent in QM. Based on the comparative QM and AEO data, it could be argued that
American callers actually showed tolerance of L2 accent, pronunciation and grammar if the
information given to them was accurate and their questions were answered clearly, and/or
interpersonal communication skills were effective.
The personality and attitude of the CSRs in service encounters were significant in the
way they provided services and tried to establish relationships with their clients during
the transaction. Filipinos were known to be hospitable and service-oriented, but traces of
a cultural divide between these Filipino CSRs and American clients were evident in the
qualitative comments by the raters in the transactions monitored. From the raters’ com-
ments, some CSRs: “were too apologetic”; “did not respond correctly to a joke/banter”;
“used too many repetitive respect markers like ‘Sir’”; “said ‘thank you for that’ in every
turn”; “sounded condescending” – these observations made by the QM monitors. Addi-
tional training in the use and understanding of idiomatic/informal expressions and cultural
sensitivity in transactions would be necessary to address these issues. Filipinos needed
to be more attuned to their American clients, many of whom did not realize that they
were calling the Philippines. The CSRs were expected to control the conversation and
be prepared to banter or understand common American expressions or, sometimes, sar-
casm. It is noteworthy that, in the design for the core skills training of the CSRs, the topic
“American culture and geography” was discussed for only two sessions on the last day of
training.
QM 78.0922 9.286 74
Pronunciation 3.3716 .44399 74
Application of speech techniques 3.7000 .34283 74 .161 13.825*
Vocabulary/grammar 3.5149 .42962 74
Listening/comprehension 3.8311 .34400 74
*p < .001
with caution, since it would be very difficult to fully separate these attributes as individual
qualities independent of the others. Table 5 shows the summary of results.
Data were analyzed using stepwise regression. Only application of speech techniques
(suprasegmentals – intonation, pitch and volume, and rate of speech) registered as a sig-
nificant variable (F (1/72 d.f.) = 13.825, p < .001), predicting 16 per cent of the variance
in Quality Monitoring scores. None of the other variables was a significant predictor.
Results suggested an effect of prosody (suprasegmentals) in non-native speech in relation
to the service quality scores of CSRs. It could be inferred that in native speaker and non-
native speaker customer service transactions, intonation, pitch and volume, and rate of
speech were relevant attributes that raters and customers identified as predictors of success
in delivery of service. Because of the nature of customer service, affective and emotional
factors in speech, largely carried by prosodic patterns of the speaker, significantly connected
with the way a transaction was scored and interpreted by customers and quality monitors.
Acquisition of effective prosody might significantly improve the clients’ perception of the
service encounter, allowing the CSR to be more confident and in control of the conversation.
Intonation carrying discoursal features of meaning and concern for the client might also
be effective in handling irate callers.
Current trends in the teaching of L2 pronunciation devote more sustained practice to
prosody or suprasegmentals. The impetus on suprasegmentals in speech training is rel-
evant in outsourcing because traditional, phone-based instruction and repetitive drills of
segmental features of the L2 have been proven to limit the acquisition of fluent speech
(Celce-Murcia et al., 1996). This direction for training in the call centers with added focus
on prosodic patterns of English might contribute to the development of speaking skills and
overall effective delivery of service by Filipino CSRs. Constant practice with meaning-
based intonation patterns coupled with exposure to actual transactions might likewise
provide the experience necessary for the acquisition of fluency in English.
CONCLUSION
The level of professional English spoken by university graduates in the Philippines
does not readily match the English proficiency expectations of American call centers
and customers. However, Filipino CSRs’ education in English, overall L2 proficiency, and
trainability allow these CSRs to work in outsourced call centers and attain adequate achieve-
ment in the industry when provided with appropriate training and experience on a micro
level. Schooled bilingualism in the Philippines has provided opportunities for Filipino
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344 Eric Friginal
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