How Philippines Call Center Industry Started

How Philippines Call Center Industry Started

Philippines is the number one choice of foreign investors for a call center location because of its less expensive operational and labor costs. Aside from that, Philippines has the highest level of English proficiency than any other countries specially in Asia. They use English as the second official language, next to Filipino, and it is the medium of instruction in all educational levels in school, hence, making almost every Filipino speaks English naturally. They have by far the easiest-to-understand accent for people who use English as their first language.

Call centers started in the Philippines in the late 1990's wherein the services offered are plainly email response providers and managing services. Almost all types of customer relations such as travel services, technical support, online education, customer care, financial services, online business to customer (B2C) support, and online business to business (B2B) support, have the industrial capabilities. The emergence of BPO industries started arising in the major cities of the country namely in Makati, Ortigas, and Cebu.

Call center, being one of the Business Process Outsourcing (BPO) service industries, is regarded as an up-and-coming and the fastest growing industry in the world. Since 2006, BPO industry in the Philippines has grown 46% and is expected to earn between US $11 to $13 billion, employing 900,000 people this year. Philippine government is offering a substantial fiscal and non-fiscal incentives to draw attention to foreign direct investment to this type of industries and as part of the 2007 Investment Priorities Plan or IPP.

Foreign investors earn dollars, pounds, or euros from their clients but spend pesos with their investments in the Philippines. Thus, the outsourcing service is remarkably a good business for foreign investors in this country. Though call center companies in this country are 20% more expensive compared to other countries, but these foreign investors are satisfied with the quality of work that the Filipinos provide. Other foreign investors who have built their companies in other countries before, turn to the Philippines after a few years, because they were not satisfied and they wanted the quality that the Philippine call centers provide.

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