All the Latest Developments in the Philippine Call Center Industry in 2023

For many businesses around the world, the Philippines remains the top outsourcing destination of choice for customer service. When choosing to work with a call center, the Philippines is often the first country many foreign investors have in mind.

There’s a reason why the country has been globally recognized as the “Call Center Capital of the World.” Since 1992, when the first contact center was established in the country, the Philippines has consistently provided high-quality services at cost-effective rates.

In fact, according to a 2022 Outsource Accelerator report, the Philippines received the 5th highest number of outsourcing inquiries, receiving 3.81% of total queries in the past year. This data illustrates the continued interest many foreign investors have in establishing call centers in the country.

But what exactly makes this Southeast Asian nation such an attractive location for BPO services? Let’s explore this question as we dive into the latest Philippine call center industry developments.

One of the main reasons why foreign investors see call center outsourcing in the Philippines as a key destination is because of the country’s massive workforce. According to the latest United Nations data, the Philippines has a population of 113,393,246 (as of February 2023). And a large portion of that already vast population works in the BPO industry.

In 2019, industry analysts estimated that over 1.3 million Filipinos were employed full-time in BPO companies, and that number was projected to grow by 8% to 10% every year. The Philippines is estimated to hold about 10% to 15% of the worldwide business process outsourcing market.

By 2028, analysts expect the Philippine business process outsourcing industry to increase its full-time call center employees to 2.3 million, generating 600,000 additional call center jobs and achieving an annual revenue of $32 billion.

In addition to the wealth of full-time call center agents, the Philippines has many freelancers. According to Forbes, the Philippines is the 6th fastest-growing market for freelance workers, experiencing a 35% income growth during the pandemic.

Many Filipino freelancers also work in the customer service industry, taking on virtual assistant, technical support, or lead generation roles.

Another reason for the Philippine BPO industry‘s steady growth is its local government’s continued support.

Upon seeing the BPO industry’s potential as a major contributor to the Philippine economy, the government decided to pass the Special Economic Zone Act in 1995. This regulation led to the creation of the Philippine Economic Zone Authority (PEZA), which offered tax and financial incentives to foreign investors establishing their back-office operations in the country.

From there, the Philippine government continued passing regulations favorable to the call center industry. In 2012, Congress passed the Data Privacy Act. This regulation ensured that outsourcing companies complied with international data security standards, helping increase the country’s competitiveness in the global outsourcing market.

The Department of Information and Communications Technology Act of 2015 ensured universal access to secure ICT services. This act helped facilitate the exponential growth of the country’s BPO sector by improving the technology infrastructure, systems, and resources of local call centers.

The most recent regulation, Republic Act No. 11165, also known as the Telecommuting Act, also created favorable conditions for BPO companies by allowing flexible or remote work arrangements for employees while still retaining tax and financial incentives for corporations.

In addition to worker availability and government support, the Philippines is renowned for call center outsourcing because of Filipinos’ unique traits and work ethics. Filipino agents are admired worldwide for their natural empathy, hospitality, and hard work.

Most Filipinos are bilingual and speak English as their second language. As such, American businesses can communicate and work with a Philippine contact center easily.

Because of their familiarity with and affinity toward Western culture, the average Filipino call center agent will only need a little training to understand the nuances and preferences of U.S. consumers.

Additionally, it’s no secret that hiring a Philippines call center will often be much more cost-effective than keeping your customer service onshore. To illustrate: the average monthly salary of a customer service representative in the U.S. is about $35,984. Meanwhile, Filipino call center agents earn a monthly salary of P20,439 or about $371.09.

Aside from competitive labor costs, Filipino CSRs are known for retaining a high quality of service and helping provide clients with an exceptional customer experience. Their productivity also remains outstanding because Filipinos value hard work and resilience in their culture.

Since the early 1970s, Makati has been considered the central economic hub and financial center of the Philippines. It has since gained popularity as one of the most prominent business districts in Southeast Asia and around the world.

To this day, Makati remains the Philippines’ central financial district, housing many international corporations, powerhouse players in the BPO sector, major banks, and promising startups.

The presence of top commercial establishments and offices encourages global businesses to continue making property investments in the city. As such, rental rates for office and commercial spaces in Makati are among the highest in the country.

To create more jobs and further boost the competitiveness of businesses and BPO providers in the Makati area, there have been talks about breathing new life into some of the city’s key urban areas.

The Ayala Land Corporation, one of the biggest real estate enterprises in the Philippines, is working closely with the Makati Commercial Estate Association to further revitalize their bustling districts like the Makati CBD and Ayala Avenue.

The program will be focused on creating new architectural features and fostering better walkability in the city, helping usher in the urban evolution of the country’s financial center.

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Metro Manila, and Makati city in particular, has long been the most well-established economic hub and primary outsourcing destination in the Philippines. However, more call centers are now discovering the advantages of moving their operations outside the increasingly congested capital city.

And the Clark Metropolitan Area in Pampanga is poised to be the country’s hottest emerging call center location. With Clark’s status as a freeport zone, multinational corporations and key players in the BPO industry have a tremendous financial incentive to make property investments and establish their business processes in the area.

Because of its proximity to Metro Manila and its strategically located international airport, Clark is an easily accessible location for local and international companies that want to visit their BPO partners in the area. Pampanga also boasts excellent technological infrastructure, featuring modern telecommunication facilities, built-in fiber-optic Internet connectivity, and steady electrical supplies.

The most popular and widespread call center service is customer support. In the Philippines, call center employees often work round-the-clock, operating 24/7 to ensure your clients can reach you no matter the time of day.

Although customer support has always been important for business, it has now become a critical competitive differentiator for companies in the post-pandemic world. Partnering with reliable call centers can help you boost customer retention rates, attract new clients, and improve your bottom line.

Ideally, the call centers you work with will also provide omnichannel customer support, allowing buyers to reach your brand regardless of platform. Enhance your overall customer experience by investing in social media, email response, live chat, and other support platforms.

In addition to 24/7 omnichannel customer service, the Philippine call center industry specializes in technical support and help desk outsourcing. These call center agents help customers solve common technical problems involving software, mobile phones, computers, printers, and other electromechanical products.

Running a company is no walk in the park, and business leaders often need help juggling tasks and responsibilities. Instead of taking on everything by yourself and overwhelming your in-house team, turn to a Philippines call center for virtual assistant services.

Virtual assistants are:

• Remote-working professionals who perform various administrative and support tasks for clients, including scheduling meetings and appointments.
• Answering emails and phone calls.
• Processing documents.
• Handling data entry.

Globalization has helped enterprises enter new markets and widen their reach. However, it has also created a more competitive worldwide market, pitting other countries against one another in a battle for customer attention and loyalty.

If you want to expand your brand beyond your borders and win the hearts of a foreign market, here is one thing you must know: 75% of customers like doing business with brands that speak to them in their native language.

By partnering with an experienced BPO in the Philippines, you can take advantage of their multilingual support solutions and serve your customers in their mother tongue. The right call center can offer support in every major world language, from Mandarin to Spanish.

Read more: From Specialty Outsourcing to Omnichannel Customer Support, How Does Outsourcing to the Philippines Look Like Today?

Philippine call centers often offer a wide range of outbound services, including telemarketing and telesales. 

Telemarketing typically involves providing information to customers and generating interest in a brand’s new products or services.

If telemarketing is about raising awareness and interest, telesales is about sealing the deal and getting customers to purchase. Both back-office services are usually done over the phone or through web conferencing calls.

The Philippines has a successful telemarketing and telesales market, quickly becoming one of the more popular contact center solutions. Filipino call center agents can handle everything from cold calling to engaging leads, keeping the brand’s best interests at all times.

In addition to telemarketing and telesales, your Philippines call center partner will ideally also provide outbound lead generation services.

In addition to telemarketing and telesales, your Philippines call center partner will ideally also provide outbound lead generation services.

To help build brand awareness, BPO workers make outbound calls to a target audience of potential leads to create a sales pipeline and generate interest in your company. Aside from talking to potential clients over the phone, outbound lead generation employees also handle email marketing, social selling, direct mail, and other platforms.

In the Philippines, call center workers are often trained to handle appointment-setting services. This includes methods to pique clients’ interest in your industry and deliver sales appointments. The overall goal of appointment setters is to increase sales opportunities for your company.

Outbound market research and customer surveys allow businesses to understand their target market better. Since most sales teams are busy closing leads and making deals, many companies outsource their survey and market research to call centers in the Philippines.

The future looks bright for the Philippines’ call center outsourcing sector. To stay competitive, many call centers in the Philippines are now broadening their service offerings to meet the needs of previously underserved industries like healthcare, travel and tourism, e-commerce, automotive and transportation, manufacturing and distribution, and more.

Many BPO firms expanded their capabilities during the pandemic, hiring agents specializing in medical call center services. Other call centers are focusing on e-commerce outsourcing as more and more businesses shift from traditional brick-and-mortar stores to digital platforms.

SuperStaff, a BPO with headquarters in Makati and Pampanga, offers comprehensive solutions for businesses of all sizes and industries. Our flexible and scalable call center services help startups and Forbes-ranked enterprises achieve their goals of global expansion and customer service excellence.