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.