AOL offers proof of how quickly offshore service operations can be built. The giant U.S. online service provider set up just 20 workstations last year in the Clark Special Economic Zone in Angeles City at the former U.S. air base about 80 kilometers northwest of Manila. It now has 600 Filipino customer-service employees who answer 10,000-12,000 technical and billing enquiries a day, mostly for the US, or about 80% of AOL’s customer e-mail. The facility operates 24 hours a day, 7 days a week.4

AOL Member Services Philippines, the local subsidiary, pays its college-educated workers about $5.50 a day, 35% more than the legal minimum wage in Pampanga province, where Clark is located (P125/day=$3.11). That daily rate is about what an unskilled U.S. worker earns per hour. Most of AOL’s Philippine employees are four-year graduates in computer science, business and accounting. Wage costs for white-collar employees are 10%-20% of U.S. wage costs


AOL Member Services Philippines, Inc.
Bldg. 2112 7 2113, C.P. Garcia cor L. Tañada Sts.
Clark Special Economic Zone
Pampanga, Philippines