The Growing Call Center Industry in the Philippines

The Philippines is seeing continuous growth in its offshore call center outsourcing services in the industry and for good reasons.

Business process outsourcing or BPO is one of the fastest growing industries worldwide and this is especially true in the Philippines where offshore call center outsourcing services have led the business process outsourcing industry into tremendous growth.

Since the year 2000, the call center industry has been rapidly growing in terms of both revenue and employment. Offshore call center outsourcing services in the Philippines has not only contributed 12 percent to the country’s gross national product (GNP) but has been one of the biggest sources of employment for Filipinos.

In 2000, the country had 2400 call center professionals and by 2005, this number grew to about 112,000 with revenues exceeding US$1 billion, up from the 2000 revenue of US$24 million. According to industry experts, the call center industry in the country could generate more than a million jobs and over US$12 billion revenues by 2010.

In 2003, industry reviews ranked call center outsourcing services to be number one in the Asian region and the country continues to take the lead. Since 2001, the call center industry in the Philippines has been growing at an annual rate of 100 percent. In 2000, call center seats were less than a thousand and in 2004, the call center industry has gained 69,000 seats.

The Philippines secured 20 percent of the total global market share in call center services in 2004 and the local call center industry along with the Philippine government is confident the country’s size of the market share could increase to 50 percent by 2008.

Advantages of offshore call center outsourcing services in the Philippines

The Philippines is has proven to be an excellent venue for offshore call center outsourcing services for three important reasons: the country’s low labor costs, presence of reliable technology and availability of college graduates who posses high level of English and IT skills.

Additionally, most Filipinos who gain employment in a call center view their work as a long-term profession due to many opportunities in career advancement and the attractive compensation. The average monthly salary of a call center representative in the Philippines is US$300, which is about twice the amount a person working in a minimum-paying job would earn. This is why the call center industry in the Philippines has a relatively low attrition rate compared to other countries providing offshore call center outsourcing services.

The delivery of high quality services by Filipinos at very competitive rates is the main reason why many multinational companies choose offshore call center outsourcing services in the Philippines for their contact center and customer management operations. A study showed that among countries in the Asian region, the Philippines had the highest availability of skilled labor.

The Filipino’s proficiency in American English is one of its biggest advantages over competitors considering the main clientele in the call center industry are US companies. Moreover, the Philippines is a former colony of the United States and its system of education is similar to that of the US. English is a subject taught very early in schools making Filipinos well oriented with American English including pronunciation and diction. In addition to English language skills, the Philippines boast off high IT competency.

Moreover, Filipinos are easy to train and has a strong work ethic. Filipinos are naturally hospitable, personable and service-oriented – qualities that are desirable in the call center outsourcing services.

The Philippines has more than a hundred call centers, majority of which are in Metro Manila’s business districts, particularly in Makati, Quezon City, Pasig City and Taguig City. In recent years, however, the development of Internet technology in the country has enabled many companies providing offshore call center outsourcing services to establish their operations in major cities outside Metro Manila such as in Laguna, Baguio City, Angeles City, Cebu City, Bacolod City, Davao City among others.

Call centers in the Philippines operate 24 hours a day, 7 days a week. They handle inbound and outbound calls and are able to offer multilingual offshore call center outsourcing services in different fields of business to include customer care, marketing, sales, technical support, among others. Offshore call center outsourcing services in the Philippines cater to various industries such as retail, financial services, technology, travel and hospitality and telecommunications, among others.

To learn more about our industry-specific BPO capabilities please contact us by calling +1-310-844-7805 or by filling out our inquiry form. We look forward to hearing from you.