Why Are So Many Outsourced Call Centers in The Philippines?

In recent decades, the Philippines has positioned itself as one of the leading destinations for call center outsourcing. But why is this Southeast Asian country such a hotspot for outsourced call centers?

Employees man the phones at a call centre in Manila, Philippines, 28 August, 2012.

Here are some reasons that make it a top choice for business outsourcing needs:

  • Proficiency in English. The Philippines, as a former American colony, adopted English as one of their official languages. As a result, the country has a high English literacy rate, with many locals speaking it fluently and with neutral accents. This enables effective communication with customers from English-speaking countries, making it a preferred destination for companies seeking to outsource services like customer support.
  • Cost-Effective Labor. Outsourced call centers in the Philippines offer significant cost savings for companies. The cost of living in the Philippines is relatively lower than in Western countries, leading to lower wage requirements, and therefore, companies can benefit from cost-effective labor without compromising the quality of service.
  • Highly-Educated Workforce. The Philippines has one of the highest literacy rates in Asia, with a significant percentage of its population being college graduates. This well-educated workforce is suited to work in the BPO industry and has proven to be an asset to its growth.
  • Customer Service Oriented Culture. Filipinos are known for their hospitable and accommodating nature. They value respect and politeness, traits that make them excellent customer service representatives. As a result, many companies choose to outsource their call centers to the Philippines.
  • Government Support. The Philippine government, recognizing the importance of business process outsourcing (BPO) to the country’s gross domestic product (GDP) growth, has implemented various initiatives to support this industry. These include providing BPO worker training, improving infrastructure to attract more foreign companies to set up call centers in the country and encouraging more entrepreneurs to engage in this field.
  • Time Zone Advantage. The Philippines’ location, in the middle of Asia and at the western edge of the Pacific Ocean, provides a strategic advantage for 24/7 call center operations. The country is well-positioned to cater to customers from different time zones effectively, providing round-the-clock support without needing rotational shifts.

The Philippines offers a number of advantages for businesses seeking to outsource their call centers, including a large population of fluent English speakers, low labor costs, and a high percentage of the population with an advanced education. These factors not only allow businesses to cut costs but also ensure high-quality customer interactions–a winning proposition for any organization.

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