Twenty years ago, few could predict that the fledgling Philippine call center outsourcing industry would grow into the multi-billion-dollar cash cow it is today. “What was initially seen as a short-lived business trend has become an essential way for companies of all sizes to save money, optimize business efficiency, and significantly improve the customer experience,” says Ralf Ellspermann, chief executive of PITON-Global, an award-winning outsourcing provider specializing in call center services in the Philippines.
Since then, the Philippines has become the world leader and go-to destination for call center outsourcing, outpacing India in global popularity. Long-term partnerships with companies like Chime, Netflix and Airbnb ensure that the call center outsourcing industry in the Philippines will maintain its consistent pace of growth and success.
So what do call centers in the Philippines do so well to ensure sustainable development? Here are five reasons global companies opt for the Philippines when they consider business process outsourcing.
Cost efficiency
Significant cost savings are the main reason companies of all sizes outsource their contact centers to the Philippines. Labor costs are substantially less than in other countries, so outsourcing companies can save on staffing. “They also eliminate the need to invest in tertiary expenses like office space, computers, software, taxes, and human resources—the outsourcing provider covers them all. Shaving these costs can result in savings of up to 50 percent compared to in-house operations,” says Ellspermann.
Strong gov’t support
Active government support is a big reason call center services in the Philippines continue to thrive. The nation’s government boosts the country’s BPO sector through regulations and incentives that encourage foreign companies to outsource to the Philippines. These include offering corporate and local tax exemptions and permits and duty-free imports of equipment and supplies. The government also partners with the country’s education system in creating BPO-specific curricula that prepare students for successful careers in the outsourcing industry.
English-proficient workforce
Enhanced customer experiences are another area of expertise for call centers in the Philippines. The Filipino proficiency in speaking fluent English in neutral accents is perfect for phone- and voice-based services like call centers. Additionally, Filipinos are known for their friendliness, professionalism, strong work ethic, and innate sense of empathy. These traits are beneficial in helping Philippine call center agents establish a rapport with customers who have questions, complaints or problems.
24/7 availability
Agents in Philippine call centers work both day and night shifts, including weekends and holidays, ensuring unbroken, round-the-clock service. 24/7 support doubles business capacity and increases service quality as customers can access agents whenever they need to, no matter the time of day or night. Instant access to support staff can dramatically improve the customers’ experience and boost their satisfaction, loyalty and retention.
Technical innovation
The BPO sector ensures its future success— and that of the companies that outsource to them—by investing heavily in advanced artificial intelligence technology. “Call center service providers are integrating AI innovations like chatbots and smart automation to improve customer satisfaction, enhance agent performance, decrease overall customer service costs, and offer highly personalized customer experiences. Offering their clients the latest AI innovations is another reason the Philippines is a prime call center outsourcing destination,” says Ellspermann.
Built for success
The bottom line is that 20 years of call center outsourcing success show no sign of abating. Helping global companies save money, increase operational efficiency and improve their customers’ experience will continue to drive the growth of the Philippine outsourcing industry. Earnings will likely hit $32 billion by the end of this year and are on track to generate $40 billion by 2025.
“It looks like call center services in the Philippines are here to stay—for now, and in the future,” says Ellspermann.
