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Call Centers in Philippines: Top Outsourcing Choice for SMEs

More organizations in the United States, the United Kingdom, Australia, and other developed markets are opting to use business process outsourcing services in the last few years. The advantages clearly outweigh the disadvantages of managing in-house operations. There are currently call center companies in the Philippines, India, Pakistan, and also in East European countries. India used to control the majority of the business, but over the last decade, the Philippines has grown significantly to become the world’s contact center capital. Here it is important to mention that the Philippines is becoming a leader in the voice segment while India is continuing its dominant position in the non-voice space and software development space

call centers in philippines

Why Do Offshore Call Centers Offer the Most Effective Solutions?

Prior to the development of external call center services, businesses were required to establish a customer service department to handle all client calls. Sales, follow-ups, and even complaints were all part of it. Though there are advantages to this, not all businesses have the resources to acquire, train, and manage an in-house staff. Furthermore, not all businesses have the technology and infrastructure in place to handle the influx of calls from multiple regions on a regular basis.

Further, by doing an in-house operations company has to spend much higher wage bills in its native country. The cost and responsibility of recruitment are also on the company. Recruitment in mass numbers is a complex initiative and well-populated countries like India and the Philippines take this load off from the clients in the US, UK, or other developed economies

To provide answers for this, contact centers began to crop up in the mid-1990s, when the internet was first becoming more prevalent in enterprises. Companies no longer had to educate and manage employees whose primary responsibility was to respond to customer calls. These call center firms were frequently located in a separate city or upcountry location. Then the expansion  of call centers happened to other countries such as India, the Philippines, and nearshoring countries to the US in particular

Later on, the focus of call centers became very sharp in India and the Philippines in particular. The Philippines had a natural advantage over the rest of the world in the voice and customer service segment with good English skills and accent. The Philippines thus became a preferred destination for US and Australian companies. For many years, India dominated the call center sector in terms of market share, until the Philippines emerged as the undisputed leader in customer service over the previous decade. The Philippines is generally leading in the voice segment which covers telesales and account management also

 Highlights of the Philippines Call Center Industry

Currently, the Philippines has the largest market share in offshore customer service (and overall voice segment of the industry) and has held this position since 2014. According to the most recent statistics acquired during the previous three years:

  • BPO Industry employs 1.5 million Filipinos
  • BPO industry produces about US$ 30 billion in revenue and is an important earner of foreign exchange

There are two types of companies that use the Philippines as their call center destination:

  1. Captives – Captives are large MNC companies that have huge back-office hubs in the Philippines. The captives are managed by the company and they take advantage of the Geographic expertise developed in the Philippines and pick the cost arbitrage in the process
  2. Professional Outsourcing companies – These are outsourcing companies that are hired or contracted by large enterprises and MNCs to manage their back-office or call center operations in the Philippines

As a result, many multinational corporations now rely on Filipino contact center operators to offer offshore customer care. Among these are:

  • AT&T, Amazon, Google, Citibank, Maesk, Wells Fargo, and JP Morgan are some examples of large MNC’s that have major captive operations in the Philippines. These captives have seats ranging from 5000 going up to 30,000 in the Philippines
  • Then there are large BPO’s such as Convergys, Accenture, Teleperformance, Transcom, Alorica to name a few that have huge operations in the Philippines going up to 100,000 seats

As the Philippines’ offshore outsourcing business expands, the Philippine government has reinforced its rules to safeguard multinational corporations that rely on the country’s outsourced services. Some of the causes behind this are as follows:

  • To match worldwide norms, data privacy regulations have been enhanced.
  • Government-led training facilities have been established to provide individuals with free call center training.
  • The Contact Center Association of the Philippines was also formed in order to boost the country’s Information Technology and Business Process Management sector’s strategy for 2022, with the goal of accelerating the outsourcing industry’s growth even further.

It is right to choose the perfect outsourcing company partner for your business

It is critical for your firm to select the best offshore outsourcing partner. Despite the fact that there appear to be many who appear to give comparable services, not everyone is able to deliver the greatest quality and maximum efficiency despite the low cost.

The first step in learning about a company’s offerings is to visit its website. Its portfolio, history, and website content should meet international standards. Furthermore, the organization must have the necessary technology infrastructure to enable outsourced activities. To ensure the quality of job production, employees must be well-trained and have low attrition rates.

Security must be carefully considered as well. In an age where information is becoming increasingly important, organizations must ensure that corporate and client information is always safe.

Asiatel Outsourcing as your Trusted Outsourcing Partner

Asiatel Outsourcing provides unique product options that cover varied need some of the best offshore business procedures, assuring quality, efficiency, and information security. With over a decade of expertise in diverse sectors, we bring a wide range of experience. Our outsourcing is bespoken with “not same size fits all” kind of approach.

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