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  • Writer's pictureSusmita Asad

How Filipino Call Centers are Dominating The Global Outsourcing Industry 2024

Updated: Nov 23, 2023

According to the Call Center Directory of the Philippine Economic Zone Authority (PEZA), there are approximately 788 call centers situated across the Philippines.


These call centers can be found in more than 20 key locations throughout the country, including Metro Manila, Cebu City, Davao City, Baguio City, and Cagayan De Oro.


These call centers are located in over 20 key locations across the country, including Metro Manila, Cebu City, Davao City, Baguio City, and Cagayan De Oro.



The Filipino Call Centers have been growing steadily over the past decade. In 2006, the industry generated just $1.5 billion in revenue and employed 100,000 people.


By 2024, the industry is expected to generate $30 billion in revenue and employ 1.5 million people.


Behind their success lies a well-organized and efficient operational structure.


In this blog post, we will take a closer look at how Filipino call centers operate and what sets them apart.


Table of Contents

Filipino Call Centers Yearly Growth

Year

Revenue

Employee

CAGR

2006

$1.5 Billion

100,000

30%

2010

$8.9 Billion

525,000

38%

2015

$18.5 Billion

1,000,000

20%

2020

$25.5 Billion

1,400,000

10%

2023

$30 Billion

1,500,000

​8%

There are a number of factors that have contributed to the success of Filipino call centers in the global outsourcing industry.


These factors include:


  • Over 90% of Filipinos speak English. This makes the Philippines an attractive destination for call centers that need to provide customer service in English.


  • The cost of labor in the Philippines is significantly lower than in other major outsourcing destinations, such as India and the United States. This allows BPO companies to save money on labor costs while still providing high-quality customer service.


  • A highly skilled workforce. The Philippines has a large number of college graduates, many of whom are trained in the IT and business sectors. This makes the Philippines an attractive destination for call centers that need to provide high-value services, such as technical support and customer relationship management.

The Philippine government has been supportive of the BPO industry. They provide tax breaks and other incentives to attract BPO companies to the country.


The government’s support has made a favorable business environment for the BPO industry in the Philippines.


What is The Call Center Industry’s Most Outsourced Service in The Philippines?


There are over 1 million Filipino call centers that provide 24 / 7 customer service. This makes the Philippines the world's largest hub for outsourced customer service. Customer service is the most outsourced service in the Filipino call center industry.


Growth of this service has largely contributed to the Philippines economy. This industry itself employs over 1.3 million people, which is about 3% of the country's total workforce.


It is expected to rise significantly in the coming years.



How Does Filipino Call Centers Operate?


Each Filipino call center operates multiple communication channels, such as phone calls, emails, chats, and social media. Agents follow established protocols, use specialized software, and undergo continuous monitoring and quality assurance.


Almost all call centers in the Philippines have round-the-clock services.


Overall, the Filipino call center's operation processes are designed in such a way that they become a one-stop solution for businesses seeking robust customer service.


How Filipino Call Centers Have Changed in The Past 10 years


In the past, Filipino call centers predominantly focused on providing voice-based customer service. The agents handled phone calls to address customer inquiries.


Today, the call centers have diversified their service offerings.


They offer multi-channel support, including email, chat, and social media. The industry has witnessed the emergence of specialized call centers catering to specific sectors, such as healthcare, e-commerce, finance, and technology.


There has been massive technological advancement. Call centers have embraced advanced technologies such as artificial intelligence, chatbots, and automation tools to streamline operations.


Agents are trained to handle complex customer inquiries, upselling, cross-selling, and offering personalized solutions.


Do Global BPOs Consider The Philippines as a Competitor?


Global business process outsourcing (BPO) companies consider the Philippines a competitor in the global outsourcing industry. However, the growth in competition has been seen as healthy by companies leveraging the destination benefit.


Global BPO companies recognize the capabilities of Filipino BPO firms and the value they bring to the outsourcing market. Many global BPO companies have established their presence there.


The competition within the outsourcing industry is more focused on providing high-quality services, maintaining customer satisfaction, and adapting to market demands.


Here’s how the other giant call center service provider countries like Mexico, India, Bangladesh compare to the Philippines,

Indicator

India

Philippines

Bangladesh

Mexico

​Number of Call Center Agents

​4.2 million

3.3 million

1.5 million

1.2 million

Annual Growth Rate

5%

​7%

10%

8%

Revenue

​$30 Billion

​$25 Billion

​$10 Billion

​$8 Billion

Market Share

​25%

​20%

10%

8%


Future Prospect of Call Centers in The Philippines


The growth of the digitized economy is continually creating new opportunities for the BPO industries around the globe. Call center services in the Philippines are also expected to grow as the industry grows.


The growth is projected to reach $70 billion in revenue by 2028. The most dominant BPO service, Customer Services, will be powered by Artificial Intelligence. Thus, agents will be able to provide a better customer experience.


Wrapping Up


Are you planning to outsource your call center operations? Yes! Filipino call centers can be your destination, but that isn’t the only one.


The quality of service can vary from company to company. Set your expectations clearly and plan thoroughly before outsourcing. Contact us for a free consultation.

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