By Lewis Loflin, adapted from Asia Pulse, July 11, 2002
In 2002, Cebu City, Philippines, became a magnet for U.S. call centers seeking low-cost labor after the tech bubble burst. Sykes Asia Inc., with 40 employees, planned to hire 800–1,000 by year-end to serve two clients, eyeing three more. Firms like Convergys and Bigfoot also entered, drawn by ~10,000 annual graduates trainable for $3–$5/hour—far below U.S. rates of $15–$20. Asia Pulse, July 11, 2002
Training was key, with the University of Southern Philippines offering 96-hour courses to refine English fluency and IT skills. Cebu’s call centers handled customer service and technical support, reflecting a broader offshoring wave that saw ~500,000 U.S. IT jobs move abroad by 2003. Local leaders saw it as an economic boost, though wages remained low. Labor Department, 2003
In Southwest Virginia—Bristol, VA/TN; Wise; Buchanan—call centers emerged post-NAFTA (1994) to replace ~10,000 lost textile jobs. By 2003, ~2,000 workers staffed 11 centers, earning $7–$8/hour, some at minimum wage ($5.15). The Virginia Coalfield Economic Development Authority (VCEDA) invested $186 million, including $5.6 million for Sykes in Wise, claiming ~9,000 jobs, though many were “projected” and short-lived. Bristol Herald Courier, September 28, 2003
Sykes, like its Cebu counterpart, later embraced global operations. Its 2019 Vansant closure cut 197 jobs, and by 2025, call centers had nearly vanished from the region, except possibly in Scott County, where TTEC’s 2016 Weber City site promised 300 jobs but shows minimal activity. Low wages and transient firms drove ~35,000 graduates away (1980s–2000s). Bristol Herald Courier, 2019
Offshoring crushed Southwest Virginia’s call centers. Cebu’s $3–$5/hour wages in 2002 undercut local $7–$8 rates, with ~2 million U.S. call center jobs moving abroad by 2015. Non-unionized labor and anti-union policies left workers exposed. Automation added pressure, eliminating ~20% of such jobs by 2025. Education gaps—~30% lacked high school diplomas in 2003—hindered competitiveness. Communications Workers of America, 2015
VCEDA’s subsidies couldn’t stem the tide. Sites like Lebanon’s, claiming 1,200 jobs, housed ~100 by 2013. Scott County’s TTEC, backed by $745,000 in incentives, underperformed, with no significant openings by 2025, if it remains at all. The region bet on call centers as “high-tech,” but global markets and technology outpaced local capacity.
Cebu thrives with ~300,000 call center jobs and $30 billion in IT-BPO revenue, leveraging trained workers and global demand. Southwest Virginia, however, has lost nearly all call center jobs by 2025, with only Scott County potentially retaining some, like TTEC’s uncertain presence. Where active, wages hit $12–$15/hour, but automation and AI continue eroding roles. IBPAP, 2025
The region’s economy—retail, services, <1% high-tech—struggles. Population fell 2–4% (2010–2025), and ~25% lack high school diplomas. VCEDA’s 2024 push added 487 jobs ($18.86 million), but call centers are no longer viable. VEC’s 2021 reuse of Sykes’ Buchanan site for 200+ jobs marks a rare holdout. WJHL, 2024
A LENOWISCO study foresaw non-unionized call centers’ collapse, warning of offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms exploiting subsidies, like VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Education gaps—~50% no diploma in Dickenson County (2008)—worsened vulnerabilities. LENOWISCO Study, sullivan-county.com
Cebu’s 2002 call center boom highlighted global cost advantages, while Southwest Virginia’s near-total loss of such jobs by 2025 reveals offshoring and automation’s toll. Heavy subsidies and low-skill focus failed to deliver lasting growth. The region needs education reform and diversified industries to break this cycle.
Originally published July 2002 by Asia Pulse. Adapted and updated April 15, 2025.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting with drafting and refining this article. The final content reflects my analysis, informed by local insights on Southwest Virginia’s job losses.
