Why Call Center Services in the Philippines are in High Demand the World Over?

The customer is king, and what better way to serve them than by deploying high-performing call centers to resolve customer queries promptly and effectively? It is no wonder then that the global contact center market, valued at $339.4 billion in 2020, is expected to grow steadily to touch $496 billion by 2027. And the Philippines, which has firmly established its position as a leader in the industry, earning the moniker of the "call center capital" for the world, has a significant advantage.

Businesses across industries and primarily from the US, UK, and Australia outsource call center services to the Philippines. The nation has more than 850 registered BPO companies that employ more than 1.3 million skilled workers and contribute to about 9% of its GDP. While the Covid-19 pandemic forced the industry to make adjustments and adopt flexible work practices, the growth and immense popularity of the call centers in the Philippines continued to be buoyed by the combination of its culture, infrastructure, and global economics.

A conducive cultural and social environment is a key driver

The BPO and call center outsourcing in the Philippines offers significant employment opportunities for Filipinos and is expected to generate an additional 120,000 jobs by 2022. The industry offers competitive salaries and high-growth career opportunities, attracting top talent. Besides, call centers in the Philippines employ workers only after careful screening and providing further training in customer services. With the third-largest English-speaking population and a high literacy rate of more than 98%, most call center workers have a college degree.

A neutral accent, tonality, and deep awareness of the English language favors the Filipinos and augurs well for businesses spread across geographies. Besides, as an erstwhile American colony, Filipinos are more attuned to Western culture, making it easy to relate to Westerners and their accents. In addition, call centers in the Philippines actively listen to social media chatter and leverage insights to deliver better services.

Favorable government policies augment industry growth

Given that the BPO industry is a significant contributor to its economic growth, the Philippine government focuses heavily on building a favorable environment and recognizing the sector's potential. This includes enabling both infrastructure and policy development. The government actively partners with universities to create BPO specific curriculum and has set up TESDA to fund call center training. A unique voucher system, tax incentives and SOPs support foreign investment.

Further, the National Information and Communication Technology Council and subdivisions like the Department of Information and Communications Technology were established to support the BPO sector. Strict data security policies and special economic zones have also been set up to facilitate a robust and conducive call center outsourcing sector.

Low operational costs add to the bottom-line

High-quality work available at low costs makes the island nation a much-favored option. In fact, cost competitiveness is a critical factor that drives small and mid-sized companies to outsource call center operations to the Philippines, given that operating costs are significantly lower. Besides, outsourcing call center services eliminate the need to invest in infrastructure and human resources and save up to 60% in OPEX.

It is no surprise then that with about a 20% global call center market share, the Philippines overtook India nearly 10 years ago, to emerge as the world's largest BPO destination in contact center outsourcing. About 60% of all US companies that use BPO services engage with a Philippine-based offshore contact center.

High adoption of digital tech for richer customer experiences

Call centers in the Philippines have proactively stayed abreast of disruptive tech advancements to serve millennial customers better. For instance, they actively deploy artificial intelligence (AI) to enhance service quality and make the customer experience more engaging. AI-driven analytics are at the center of providing real-time insights and predictions by quickly analyzing customer interactions and equipping executives with the correct data and tools to resolve queries promptly.

Adopting cloud tech is another growing trend in the Philippines. Increased cloudification has helped call centers ensure business continuity and provides executives with better applications and infrastructure to enhance customer experience on a pay-per-usage model. For instance, a small call center can now add speech analytics to its portfolio for better compliance and experience.

How Flatworld Philippines is leading the way

Flatworld Philippines offers 24/7 multilingual outsourced back-office solutions to global customers across verticals. Our well-defined hiring processes use passive candidate research, skills testing, and rigorous candidate screening to find the right people to service our customers.

Besides, an established data science and deep learning center integrates AI to address the unique needs of our customers across industries.

We successfully provide call center services to hundreds of businesses worldwide with a keen focus on data security and customer confidentiality and our state-of-the-art tech infrastructure. Flatworld Philippines has a capacity of over 1,000 seats across a floor area of 2,500 sq.m. across two locations, both of which are secured and maintained by well-trained support and security teams.

The road ahead

The Philippines has emerged as the top call center destination for global businesses, and the growth shows no signs of abating. Developing through the last decade, call centers in the Philippines range from well-established companies with 1,000+ employees to budding start-ups finding their feet. As Covid-19 has made global travel and face-to-face customer conversations difficult, there is an increased dependency on customer engagement backed by robust, intelligent, and comprehensive customer services.

And what better way to achieve that goal than outsourcing call center services to the Philippines—the contact center hub of the world. If you are looking to outsource your call center services to the Philippines, connect with Flatworld today.

Data Sources

www.statista.com | psa.gov.ph | www.panaynews.net | www.manilatimes.net | news.abs-cbn.com | data.worldbank.org | economictimes.indiatimes.com | johnchow.com

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