By Lewis Loflin, adapted from Romelda C. Ascutia, JobStreet.com, 2002
In 2002, the Philippines’ call center sector surged, dubbed a “sunshine industry” for its job potential. With ~10,000 seats, it aimed for 24,000 jobs by 2004, growing revenue from $173 million to $864 million. Firms like Sykes Asia and PLDT’s Parlance (500 seats) paid $3–$5/hour, far below U.S. $15–$20, tapping English fluency and IT skills. The U.S. had 1.5 million outsourceable seats, fueling growth. JobStreet.com, 2002
Training academies, like Pasig City’s, refined graduates’ skills, while tax incentives and telecom upgrades supported expansion. India’s 300,000 agents led, but the Philippines carved a niche, handling calls for IT, banking, and retail, despite looming competition from China.
Southwest Virginia—Bristol, VA/TN; Wise; Buchanan—embraced call centers after NAFTA’s ~10,000 textile job losses. By 2003, ~2,000 workers staffed 11 centers, earning $7–$8/hour, some at $5.15 minimum wage. The Virginia Coalfield Economic Development Authority (VCEDA) invested $186 million, including $5.6 million for Sykes in Wise, claiming ~9,000 jobs, often overstated. Bristol Herald Courier, September 28, 2003
Closures followed: Sykes’ Vansant site cut 197 jobs in 2019, and by 2025, call centers vanished region-wide, except possibly Scott County’s TTEC (2016, ~300 jobs promised, now minimal). Outmigration (~35,000 graduates, 1980s–2000s) and education gaps (~30% no diploma, 2003) compounded the decline. Bristol Herald Courier, 2019
A LENOWISCO study warned call centers were a risky bet for Southwest Virginia, citing exposure to offshoring and reliance on low-skill jobs. The Philippines’ $3–$5/hour wages in 2002 dwarfed local $7–$8 rates, foreshadowing ~2 million U.S. job losses by 2015. The region’s workforce, with ~50% lacking diplomas in areas like Dickenson County (2008), couldn’t compete with Asia’s trained graduates. LENOWISCO Study, sullivan-county.com
VCEDA’s subsidies, like Lebanon’s site (1,200 jobs claimed, ~100 actual), ignored these red flags. Non-unionized labor and transient firms, as LENOWISCO likely noted, left communities vulnerable when companies like Sykes globalized. Communications Workers of America, 2015
The Philippines thrives with ~300,000 call center jobs and $30 billion in revenue, leveraging training and demand. Southwest Virginia, however, has no call centers left by 2025, except possibly Scott County’s fading TTEC site. Historical wages hit $12–$15/hour, but automation cut ~20% of such roles globally. VCEDA’s 2024 push added 487 jobs ($18.86 million), none in call centers. IBPAP, 2025
The region’s retail-service economy (under 1% high-tech) stagnates. Population fell 2–4% (2010–2025), with ~25% lacking diplomas. VEC’s 2021 reuse of Sykes’ Buchanan site (~200 jobs) is a rare remnant, proving LENOWISCO’s warnings correct. 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
The Philippines’ 2002 call center rise, driven by cost advantages, contrasted with Southwest Virginia’s collapse, as LENOWISCO predicted. Offshoring to places like the Philippines and automation erased local jobs, leaving a low-skill economy. Education and diverse industries are now critical.
Originally published 2002 by Romelda C. Ascutia. 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, guided by LENOWISCO’s insights.
