April 5


Why Are There So Many Call Centers In The Philippines?

By Global Strategic

April 5, 2022

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Call Centers in The Philippines Are Leading the Global Competition – Here’s Why!

When it comes to outsourcing, two things quickly come to mind – call centers and the Philippines. Since the 1990s, the Philippines rapidly expanded the Business Process Outsourcing (BPO) industry becoming one of the top outsourcing destinations in the world now.

Being one of the leading Asian countries in terms of English proficiency – the Philippines has consistently been a go-to for businesses worldwide for outsourcing.

The Philippines also excels in labor practices, work ethic, and the volume of workers looking for jobs. This is due to the Philippines’ high regard for education, with the result being that every year, millions of students graduate from college looking for jobs.

Why Are There So Many Call Centers In The Philippines?

Because of how expansive the BPO industry in the Philippines is, it can cover a wide range of job descriptions. But, even without a degree or work experience, BPO companies extensively train new hires to make the workforce suitable and capable for almost any role.

With this in mind, it’s no doubt that the Philippines has become one of the world leaders in outsourcing, second to only India. In fact, many companies who originally set up their outsourcing in India have decided to either move operations or expand into the Philippines as well.

Why is the Philippines a Global Leader in the BPO Industry?

REVENUE – The Philippines government is extremely supportive of the BPO industry in the Philippines. One of the main reasons for this is the high profitability. In recent years, BPOs have contributed close to $30 billion worth of revenue to the country according to a study from Nexford University.

COST-EFFECTIVE – A lot of companies are investing in outsourcing solutions for their business in the Philippines because of low labor costs. However, if the cost was the only concern, then there are definitely other countries with lower labor costs than the Philippines.

But what sets the Philippines apart is the cost-to-skill ratio. The quality of skills that Filipino workers bring to the table is higher compared to some other outsourcing destinations, while also being very cost-competitive.

GOVERNMENT SUPPORT – BPO Industries receive massive support from the government. As such, government programs such as TESDA offers courses that train people in call center jobs and other BPO positions.

More importantly, more funds are invested into the development of internet technology solutions that benefit BPO companies. Along with this, the government revised key information security laws such as the Data Security Act and the SEZ act. And, because Western companies take data security seriously, this pushed the Philippines further as a leading destination for outsourcing.

Additionally, under the Special Economic Zone Act, foreign companies that do business in the Philippines have a number of benefits to try and attract potential investors.

EXPOSURE TO WESTERN CULTURE – It’s no secret that Western culture has heavily influenced the Philippines. From movies, TV shows, music, and even comedy – Filipinos tend to be more receptive when it comes to everything pop culture. Thus, relating to clients from the United States becomes a breeze which is perfect for call centers or companies looking to add outsourced offshore staff.

FUTURE-PROOF – In the near future, low labor costs won’t be the main focus of companies that want to invest in the Philippines for their outsourcing needs. Instead, high-level, English-speaking workers will become the focal selling point of the Philippines. Because of the competitive nature of BPO industries, companies continue to strive to train their employees and upskill them on more than the standard repetitive task list that the industry was borne from.

With how gigantic the BPO industry is in the Philippines and its importance to the local economy, it’s no question that it will stay a dominant force in the Philippines. It is projected that the BPO industry will bring in $40 billion in revenue this 2022.

The BPO industry in the Philippines is rapidly advancing and has not shown any sign of slowing down. Learn more about how outsourcing can help with your current business needs and future business growth and contact Global Strategic today.