Philippine Call Center (Attracting the best employees)

If you’ve heard that call center agents from the Philippines are courteous and happy, you heard correctly. And if you saw how nice their working conditions are you’d understand why they’re so happy and polite.

The fact is that recruiters from the top and mid-tier Philippine Call Centers are able to recruit the best and brightest of young Filipinos graduating from college every year because they offer such outstanding working conditions and benefits packages. That’s why in the year 2010 the call center industry accounted for over 10% of the jobs taken by new college graduates.

Even by US standards, working conditions in most Philippine Call Centers is very good. And conditions in the top tier (i.e. the 20 biggest) are downright stellar.

Consider how Philippine Call Center compensation compares to wages for the average Filipino. CPAs fresh out of college frequently must take jobs as bank tellers earning around $250 (US) a month….maybe they’ll earn more if they actually get a job in a real CPA firm. The problem is…there just isn’t enough opportunity to go around in the Philippines. Registered electrical engineers often earn less than $50 (US) a day.

So, as you can easily understand, a young Filipino fresh out of college earning a beginning salary of $700 (US) a month working as a call center agent is a pretty big deal for them. And that’s not even considering any of the other benefits that the top-tier Call Centers of the Philippines provide their employees.

Imagine working for a company that has game rooms, TV rooms, break-out rooms, billiard rooms, PC cafes, free coffee, tea and other liquid refreshments, cafeterias (with the food free or heavily subsidized), cell phone allowances, travel allowances and even dormitories for employees who want to arrive early or stay late in order to catch better travel connections.

That’s just a few of the benefits enjoyed by those employees lucky enough to get jobs with the top-tier of Philippine Call Centers. Benefits at the mid-tier companies are very similar.

The Business Process Outsourcing industry is doing very well right now. True, it’s not a business model that 100% replica- table just anywhere in the world. There has to be a labor source for the large numbers call center agents required and those agents need to be able to speak good English. Only a very few countries worldwide have those situations….notably India and the Philippines.

The Philippines, in 2010, surpassed India as the Number One worldwide destination for outsourced Call Center activities. Because of that growth, the competition for agents in the Philippines is getting fierce. That’s why the top-tier and mid-tier Philippine Call Center companies offer such attractive benefits packages.

The good news is that Philippine wages are still far those of comparable US jobs and Philippine Call Center companies are still able to recruit the agents they need. The hub of Call Center activity in the Philippines is in Manila, the countries capital, and that’s where you find all of the top-tier Philippine Call Centers.

That means you, if you’re considering contracting work to a Philippine Call Center…you still can and you’ll save 30-60% over the cost of anything comparable from stateside service providers. Give us a call today.

The emerge of the Philippine call center industry to one of the world’s two leading offshore BPO destinations

Historically, the industry’s growth has never faltered. Its annual average growth rate since 2006 has been impressive at 46 percent. Despite the US-led market meltdown in 2008, the industry earnings still increased to $6.1 billion up from $4.5 billion the previous year. It was enough to make it the third largest BPO destination in the world, after India and Canada.

The year 2009, however, was even better for the BPO industry. From $0.02 billion in 2001 the country’s BPO industry, which is comprised mainly of Philippine call center companies, brought in $7.3 billion in 2009. Of that amount, $5 billion came from the call center industry. This represents about 12% of the country’s Gross National Product.

What makes this feat even remarkable is that the Philippine call center industry posted positive earnings when most of the global economies were still reeling from the impact of the financial meltdown that sent the US into a deep recession. The industry grew by 25 percent while the overall Philippine economy managed less than 1 percent growth.

In the present year, Philippine call center service providers are already off to a great start. As the fading recession continues to give way to recovery, Philippine call center companies are already expanding operations in anticipation of the surge of business growth in the United States and Europe. In February, the country cornered 72 percent of the 25,700 new BPO jobs in the world, according to a recruitment, and training outfit for Philippine call center agents.

The industry also expects to expand its market to other countries as more Australian firms are looking to outsource to the Philippines, according to Gillian Joyce Virata, executive director for information and research of the Business Processing Association of the Philippines (BPAP). There were also indications that the banking sector was considering the country as an outsourcing option, she added.

The emergence of the Philippine call center industry as a global powerhouse is largely attributed to the Filipinos’ high level of English proficiency. Philippine call center agents are not only fluent in American English but also have neutral accents. A neutral accent makes it easier for agents working in Philippine call center companies to interact with global customers whether they are from the US, Australia, New Zealand, or England.

The Filipino’s strong cultural affinity with the West, particularly the United States, has also contributed to the success of the Philippine call center industry. Since they are already very familiar with American popular culture and current events, Philippine call center agents have superior conversational skills over agents from other countries.

Philippine call center agents also have a reputation for delivering cost-efficient but high quality of outsourced work and live up to the strict performance metrics of international standards. Agents working in Philippine have garnered high ratings for their customer service, efficiency at work and courtesy. Furthermore, Philippine call centers are more popular among clients in the US, Canada and Europe than India.

Because of these qualities, many leading multinationals such as Caltex, Procter & Gamble, Barnes and Noble, among others, have tapped Philippine call center service providers for their customer service needs.
Additionally, the support the BPO industry has been receiving from the Philippine government has made the country even more competitive in the crowded marketplace. There is a need to maintain our supply of talent and focus on infrastructure, according to Ray Anthony Roxas Chua III, head of the Commission on Information and Communication Technology (CICT). One of the biggest boosts to the BPO industry is the creation of the Cyber Corridor.

The Cyber Corridor is composed of key cities in Luzon, Visayas and Mindanao identified by the private sector, the academe and government as the strongest potential locations for Philippine call center companies as well as back office, software development, medical transcription, engineering design, animation and game development outsourcing.

The corridor allows BPO players to move outside Metro Manila and Metro Cebu, the two original cities that served as the main locations for Philippine call center operations. Ten urban areas being promoted as new destinations for the Philippine call center industry include Metro Laguna, Metro Cavite, and Lipa City in Batangas, all located south of Metro Manila. Metro and Central Bulacan and Metro Pampanga, just north of the Philippine Capital, are also part of the Cyber Corridor.

Other cities that comprise the Cyber Corridor can be found in the Central and Southern regions of the archipelago. Joining Bacolod are IIoilo, Davao, and Cagayan de Oro as alternative sites for the expanding BPO industry

Call Center Philippines

Philippine Call Center life has a character that harkens back to the good old days in the US when companies took pride in achieving together as a team. Call Center agents love competing against other agents and other teams for prizes or sometimes even for silly little things like ‘the loosing team has to do 20 pushups’.

Unlike some types of jobs, the value of an agent in a Philippine Call Center is on display every day in a ‘real time’ basis. It’s posted up on the production board for all his or her fellow agents to see. There’s never any doubt ‘who’s Number One’.

Depending on the type of work they’re doing, i.e. sales or non-sales related, agents in a Philippine Call Center can earn bonuses in the form of extra cash and/or prizes. Amazingly enough, sometimes prizes of items that would be considered very average and ordinary in the US are enthusiastically pursued by call center agents even more so than cash.

Filipinos tend to stay with companies that treat them well…..more so than US workers. They value jobs in call centers, especially in the top tier Philippine Call Centers, because of the opportunities for advancement, recognition and fun.

In fact, all the big BPO/Call Centers in the Philippines (most of which are located in Manila, the national capital) have department directors whose only job is to provide ‘fun’ things for the agents to do. They go on outings, sight-seeing trips, concerts, have sports days, special hobby classes…..anything that the agents can use to get their mind of their work for a while.

Most of the premium quality call centers in the Philippines are located in Manila but there are smaller ones scattered throughout the country. For example, Cebu City is the second largest city in the country and also has several mid-sized call centers. Those mid-sized and smaller call centers usually don’t have the expansive benefit packages and extracurricular activities that the ‘majors’ do thus many agents us them as a ‘stepping stone’ to work up to jobs in Manila with the majors.

If you’ve been wondering whether or not using a Philippine based call center would help your companys bottom line, we’d be happy to give you more information. We a US managed company which has been based in Manila, Philippines for over 10 years. We have the technologies and the well trained staff to assist you in cost effective, profitable business process outsourcing from the Philippines.

Call us today. Let’s talk. And we’ll give you a specific, written solution proposal if you’d like.

Cultural Ties, Neutral Accent Spur Global Demand for Philippine Call Center Service Providers

The country’s business process outsourcing (BPO) industry, which is comprised mainly of Philippine call center service providers, continues to expand its share in the global market. In 2009, the industry grew by 25 percent while the Philippine economy managed only less than 1 percent growth.
The BPO industry generated US$7.2 billion in revenues last year, 69% of that came from Philippine call center service providers. All in all the Philippine call center industry contributed 12 percent to the country’s 2009 Gross National Product.
The Philippines has surpassed Canada as the second largest BPO destination in the world and is now within striking distance of duplicating India’s success. At the conclusion of her recent Cyber Corridor tour in Davao City President Gloria Macapagal-Arroyo made a bold statement that the Philippines is now on the verge of becoming the world’s number one destination for outsourced services.
Only on its first quarter, 2010 is proving to be another big year for the Philippine call center companies. In February, the Philippines cornered 72 percent of the 25,700 new BPO jobs in the world, according to a recruitment, and training outfit for call center agents.
Philippine call center companies are already expanding operations in anticipation of the surge of business growth in the United States and Europe as the fading recession continues to give way to recovery. More Australian firms are also looking to outsource to the Philippines, according to Gillian Joyce Virata, executive director for information and research of the Business Processing Association of the Philippines (BPAP). The banking sector was likewise increasingly considering the outsourcing option, she added.
So what is behind the success of Philippine call center service providers? The Filipino’s command of the English language is a cornerstone of the Philippine call center service industry. Many foreign clients prefer Filipino agents that work in Philippine call center companies because of their neutral accent.
Different English-speaking countries or regions may have distinctive accents. The neutral accent is defined as one that any English speaker can understand. A neutral accent is desirable because it makes it easier for agents working in Philippine call center companies to interact with global customers whether they are from the Midwestern, southern and eastern regions of the US, Australia, New Zealand, or England.
In contrast, heavy regional accents may hinder comprehension and therefore have a negative impact on the quality of service. For instance, a recent report said American customers had problems comprehending the accents of Indian call center agents. The same report suggested that the heavy Indian accent was a factor in a major US outsourcing firm’s decision to reduce its operations in India by half and relocate to the Philippines.
Meanwhile, Indians working at Microsoft’s new call center in Bangalore had to undergo a six-week language program to teach them how to speak in a way that’s clearer and easier to understand by U.S. customers who call for help with their Microsoft products.
A senior analyst from Raymond James & Associates was quoted by the media as saying that Filipinos have “less noticeable accents” than Indian call center agents. Even if the aim is to replicate an accent, Philippine call center agents can easily acquire the American, British or Australian inflections after only a short speech training. This enables Philippine call center companies to have quality English-speaking staff very quickly and at a very low training cost.

Another significant feature of the Philippines is its cultural affinity with the West. Being a Spanish colony for 300 years, the country is quite familiar with the culture of Europe. However, Filipinos’ strong cultural link to the US that makes it possible for Philippine call center agents to be very comfortable with American customers. The Philippines is a market for Hollywood films, TV shows and pop music and Filipinos are generally familiar with American lingo and idioms.
Microsoft, on the other hand, had to train its call center agents in American popular culture and current events to improve their conversational skills.
Philippine call center agents also have a reputation for delivering cost-efficient but high quality of outsourced work and live up to the strict performance metrics of international standards. Agents working in Philippine have garnered high ratings for their customer service, efficiency at work and courtesy.
To ensure the quality of its service, Technical Education and Skills Development Authority (TESDA) and Trade Union Congress of the Philippines (TUCP) have collaborated with BPO industry trade associations to provide training that will build the work force for the sector.
TESDA provides a call center training program that develops skills and competencies required by the industry including customer service and telemarketing making for immediate employment and to empower private education and training institutions to offer relevant training programs that meet job requirements.
TUCP offers a 100-hour finishing course for call center agents designed to develop the knowledge, skills, and attitudes of a call-center representative according to industry standards. It includes core competencies such as effective communication and quality customer service. Trainees are tested and evaluated on sentence mastery, vocabulary, fluency and pronunciation via telephone. Takers with high scores are classified as “near hires” and undergo the training at accredited training institutions.

Key drivers behind the growth of the Philippine call center industry

Tagged as the “Sunshine Industry” of the country, the Philippine call center industry has not only grown to be one of today’s most modern and prolific spaces in the developing country but has also been one of the biggest sources of revenues. In 2009, it earned as much as $5 billion, an impressive 22% increase from its 2008 ending numbers. This year, several industry experts are expecting an even bigger increase with the global financial crisis slowly waning. This year, the Philippine call center industry, among other outsourcing spaces in the country, are optimistic that it will create as much as 90,000 jobs and beyond. The steady growth of the Philippine call center industry and other services sector has led National Economic and Development Authority (NEDA) to believe that all in all, 2010 will see as much as 1.5 million new jobs created for the Filipino people. Out of these 90,000 jobs the Philippine call center industry is about to create, 55% will be call center agents while 45% will account for non-voice service agents. Nonetheless, it is a fairly large number that can accommodate the thousands of fresh graduates this year.
While the Philippine call center industry is experiencing slow and steady growth, we must highlight the possible reasons why there is a growing demand for the Filipino type of service.
The abundant Filipino workforce is highly capable, flexible and easily trainable.
As one of the world’s best destinations for outsourced services, the Philippine call center industry boasts of a large number of highly capable college graduates equipped with excellent English and information technology skills, basic requirements for entry-level call center agents. The typical Filipino workforce is highly capable of communicating well with both co-workers and clients, a skill deeply rooted in our culture. The Philippine call center industry is composed of naturally hospitable, accommodating individuals who work towards putting the clients’ needs first. Their core values are diligence and flexibility–values which carry over to the type of service they provide to customers all over the world. Because of these traits, our talent is one of the most sought-after in the world for customer service and support.
The Philippines has sufficient and capable I.T. infrastructure.
One of outgoing President Gloria Macapagal-Arroyo’s biggest accomplishments was pushing for infrastructure development during her term. February 2010 saw her heading to the province of Pampanga to promote her cyber corridor tour, which highlighted her developments in the ICT (information communication technology) sector. With the President’s support, the Philippine call center industry further penetrated Metro Manila, Metro Cebu and next wave cities Metro Laguna, Metro Cavite, Iloilo, Davao, Bacolod, Metro Pampanga, Metro Bulacan, Central Bulacan, Cagayan de Oro and Lipa. All of these cities are now being developed to accommodate the Philippine call center industry and the outsourcing industry’s demands. During her term, the president helped create incentives to IT companies and in turn lower internet costs to a single digit, providing businesses with cost efficient connectivity.
The Philippines is constantly growing in terms of infrastructure development, making it a better, more conducive business environment.
The growth of the Philippine call center industry has not only tapped into the nation’s talent but also helped other industries grow. For instance, the real estate industry witnessed a surge in the demand for office space. Because the Metro can only provide so much office space, second wave cities are now rising to be the future sites of BPO organizations. This enables the Philippine call center industry access to a wider array of Filipino talent.
The Philippine government and outsourcing organizations work together to support the Philippine call center industry.
The Philippine call center industry and outsourcing/offshoring industry is fully backed by the Business Processing Association of the Philippines, an organization composed of the nation’s best BPO experts and corporate leaders aiming to “promote the competitive advantages and the growth potential of the Philippines in existing and new areas of outsourcing and supports the industry in areas such as offshore marketing, education and training, security and privacy, legislation and public policy, among others.” Their mission is to “create a supportive environment for the Philippine O&O (offshoring and outsourcing) industry and strengthen the Philippine case to be the preferred O&O destination” in the global market. Among others, organizations that have shown their support through hosting skills development programs and industry studies include the National Economic and Development Authority (NEDA), the Trade Union Congress of the Philippines (TUCP), Medical Transcription Industry Association of the Philippines (MTIAPI), Animation Council of the Philippines (ACPI) and the Philippine Software Industry Association (PSIA).
The Philippines is competitive—we have the drive to succeed.
The Philippine call center industry is an attractive space in which Filipinos are passionate about honing their skills because it provides a career path towards success. Their passion to succeed is well benefitted by a wide array of opportunities in career advancement and attractive compensation.

Philippine Call Center – How the Industry Evolved

10 years ago hardly anyone knew that Philippine call center even existed. Well, the truth is that a decade ago only a hand full of Philippine call centers were present and operating. Some of the first call centers that established a presence in the Philippines were Sykes and C3, Ambergris Solutions, Teleperformance and PeopleSupport. Of the aforementioned companies only Sykes and Teleperformance are still around. All other companies have been acquired by larger companies. Philippine call center are of extreme importance from an economic standpoint for the entire country. Since the year 2000 close to 1 million jobs have been created by Philippine call center. Over the last 5 years the number of call center service providers in the Philippines has more than quadrupled. Today, the large majority of new Philippine call center establishments come from small and medium sized enterprises at are setting up office in the country. The 20 largest call center service providers in the Philippines employ more than 40% of all call center agents in the country and account for more than 70% of all revenues generated. Philippine call center jobs enjoy a extremely reputation with college and university graduates and are very popular. Philippine call center have therefore no or hardly any problems supporting their growth. The main reason for the high popularity of Philippine call center jobs is the considerably high pay. Experience as a call center agent is also considered as an excellent first career step.

Where do Philippine call center locate?
Apart from the two main business hubs, namely Makati and Ortigas City a large number of call center firms have set up office in Eastwood Cyber City and in Cebu. Over the last three years the country’s largest CRM providers such as Convergys have established call centers in provinces such as Dumagette and IloIlo. The advantages of locating outside of Metro Manila are, simply put, cost and human resource availability. Philippine call center operators that have been setting up office outside of Metro Manila generate significantly higher profit margins which can in some cases reach up to 50%. Some of the world’s leading call center service providers such as TeleTech found great success in building call centers in more remote regions of the country.