Friday, December 2, 2011

Philippines Call Center Step Up the Leads in Outsourcing Industry

For the past years, there has been a hushed revolution happening to the call center industry - the rise of the Philippines in the said business.

About 4000,000 Filipinos are now working as call center agents, catering to the needs of American customers of BPO companies like AT&T, JPMorgan Chase and Expedia. These employment opportunities didn’t just come from the US alone, some came from Europe and other from India.

India, which has been the leading call center hub for several years already, has now been overtaken by the Philippines as more and more investors are choosing to build call center in the Philippines on strategic location.

This investment preference has been brought about by the growing maturity of Philippines call center in terms of quality of solutions. Plus, Filipino call center representatives are easier to understand than their Indian counterparts.


Investors said that their decision to choose Philippines is not only for cost-cutting reasons, they are claiming call centers in the Philippines seemed to have helped American businesses to respond to complaints of their consumers who said they are having trouble communicating with Indian agents.

Indian agents talk British-style English and make use of unfamiliar idioms. Indians, for example, might say, "I will revert on the same," instead than, "I will follow up on that.”

"Certain important phrases people use and idioms are very important," said an executive at a large American corporation that handles service calls through the Philippines.

The boom in Philippines call center industry is already at at 25 to 30 % in comparison to 10 to 15 percent in India, bringing about $9 billion, or 4.5 percent of the Philippine gross domestic product, up from almost nothing in 2000. As a result, the government is giving its all-out support to this booming industry by providing tax exemptions and subsidies.

In addition to language competencies, the Philippines has considerably better utility infrastructure than India - so companies spend little on generators and diesel fuel. Also, cities here are less dangerous and have more desirable public transportation, so recruiters do not have to bus people back and forth to work as they do in India.

BPO investors are hoping to see Philippines call center maintaining its fats growth rate. Also they are confident that, subsequently, call center in the Philippines will be able to cater to higher-value service such as accounting or the processing of insurance cover claims.

The only posing problem the investors are facing right now is the looming issue on domestic inflation. In just two two years, the Philippine peso climbed close to 10 percent towards the dollar, to 42.14, weakening just recently. If the peso appreciates to 35 to the dollar, numerous Philippines call center will not be able to survive.

0 comments: