Knowledge Center Article

How the Philippines Became the World’s Call Center Capital

By Maigne Cantos / 10 July 2019

How did the Philippines become and call center capital of the world?

  1. Cost-effective and efficient labor
  2. Accent and literacy
  3. Government support


The call center industry is one of the largest and most active in the world. With operations running around the clock, call centers in the Philippines are able to respond to thousands of inquiries on a regular basis, providing services that are of the highest quality and efficiency.

The Philippines is considered by many as the world’s call center capital. The rapid and steady growth of the BPO industry in the country can be attributed to a number of factors. Here are some of the reasons why the Philippines became the call center giant that it is today.


Cost-effective and efficient labor

Cost-effective and efficient labor

One of the primary reasons that led to the boom of the BPO industry in the Philippines is due to the cost-effective and efficient labor that the country is able to provide. By offering salaries that are very competitive, the BPO industry is able to attract many of the country’s young and highly skilled workforce. Some of the starting salaries of call centers can eclipse that of other sectors, which has surely helped bolster the number of agents working in the country.

The competitive salaries and employment packages weren’t the only things that made call centers appealing. They also provide a wide set of benefits and rewards that encourage professional growth and support the well-being of their employees. It includes health insurance, along with bonuses and incentives that reward quality work performance. Call centers are some of the best places to work in the country as they focus on helping their employees and setting them up for continued growth and success that will allow them to move up the corporate ladder.

This amount of support for the call center workforce can also be seen in the quality of the work that they are producing. Being one of the most hardworking populations in the world, Filipinos are known for their ability to provide the best for their respective industries. This led to a boost in customer service quality, which has enhanced the country’s reputation in the BPO industry. The quality of labor in the country has remained high for the past few years — another factor that led to the success experienced by the BPO industry.


Accent and Literacy

Accent and Literacy

With a 95 percent literacy rate along with an English proficiency rate of 92.5 percent, the Philippines is the third-largest English-speaking population in the world. This factor plays into the tendency of Filipinos to speak a “neutral” accented English, which is an essential quality that call centers want in their employees. This quality allows Filipino call center agents to interact and communicate effectively with people from different nationalities. The knowledge of Western terminologies and slang is also a plus as it helps make communication more natural and easier compared to what call centers in other countries can provide.

The quality of education in the country also plays a huge factor. Here, Filipinos are able to learn and become well-versed in a variety of different skills, especially knowledge-based ones that are needed in the BPO industry. With the country’s educational system experiencing new developments and a diverse set of curriculum, the country will continue to provide some of the most skilled professionals in the world.


Government Support

Government Support

The support of the government can do wonders for the growth and development of an industry. In the Philippines, the immense and progressive growth of call centers was backed by the government. Recognizing the economic benefits of the industry in the country, the government has established the Department of Information and Communications Technology, which aims to provide more support to the BPO industry by creating policies and programs that push the sector forward.

Along with establishing a new government agency, existing agencies like the Technical Education and Skills Development Authority (TESDA) have developed education programs that help people develop skills to make them suited for working in the BPO industry. Some of these skills include verbal communication, multi-tasking, data entry, customer service, phone skills, and attention to detail.

Policies have also been enacted to provide further government support to the industry. These policies include the Data Security Act (RA 10173), which helps protect sensitive and private information from being leaked in compliance with the International Data Privacy Standard. The Special Economic Zone Act (RA 7196), meanwhile, helps provide more opportunities for foreign investors to establish their operations and foster the growth of the local BPO industry.


Key Takeaway

The Philippines has remained as the world’s call center capital for a number of years, and it can be attributed to the numerous factors that have helped give it an edge over the competition. With quality education, a versatile employee skill set, top-notch communication skills, and the support of the government, the future of the BPO industry remains as bright as ever, allowing it to remain on top of the BPO world.

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