Call Center Benchmarking Report
- Job Growth Rates:
- BPO hiring is up from 6.9% in 2011 to 8.4% in 2012.
- This is due to more efficient recruitment and hiring techniques
- The Manpower sourcing portfolio has likewise diversified into non-traditional jobs such as Social Media specialists, among others.
- Global Market Growth
- With the global market expected to grow by roughly 10-15% within the next few years, the Philippine BPO sector is likewise seen to grow with it.
- In 2012, the Philippines accounted for 22.5 percent of the $31 billion total worldwide revenue.
- This figure is seen to grow even further—to $51 billion—in 2016. As for the Philippines, even all goes according to plan, it will take up around 36.3% of this total figure.
- BPO Industries in the Philippines: The BPO sector has gone beyond the traditional voice calls and now encompasses a wide range of services. These are:
- Human Resources
- Payroll Benefits Processing
- Training and Development
- Hiring and Staffing
- Banking and Finance
- Consumer Services
- Commercial Services
- Loan Administration
- Credit/Debit Card Services
- Check Processing
- Collection Services
- Inventory and Warehousing
- Industry Management
- Order Fulfillment/Procurement
- Transportation and Distribution
- Health Information Services
- Medical Transcription
- Health Insurance Processes
- Care Services
- Diagnostic Reading Services
- Sales, Marketing, and Customer Care
- Customer Service
- Customer Analysis
- Contact Centers
- Consumer Information Services
- Help Desk
- Technical Support
- Accounting Services
- Document Management
- Claims Processing
- Accounts Receivable
- General Liaison
- Shareholder Services
- Other BPO Niches
- Engineering Design Services
- Architecture Drafting Services
- Legal Support Services
- Airline Ticketing and Travel
- Market ProfileWhile Contact Centers or Voice Services comprise the biggest slice of the BPO “pie” (68% at roughly 502,000 seats), the other sectors aren’t far behind.
- Back Office Services (13%)
- Software Development (10%)
- Engineering (4%)
- Transcription (3%)
- Animation (2%)
- Number of Contact Centers:There are an estimated 502,000 seats that make up the contact center in the Philippines. These comprise roughly 69 companies, made up of 29 large, 37 Small to Medium Enterprises (SMEs), and 3 Micro businesses.
- Markets ServicedThe US and Asia (Asia-Pacific) remain the top markets that many BPOs cater to. Growth rates have been pegged at around 168% deal values over the period of 2011-2012.The UK and Australia/New Zealand, however, are now considered as new and emerging markets
- Breakdown of FTE by Geography looks something like:
- US (70-80%)
- UK (12%)
- Canada (5%)
- New Zealand (3%)
- US-Canada (3%)
- Domestic Market (Philippines) (2%)
- Japan (1%)
- Others (0.5%)
- Languages Spoken and Required
- American English: (75.2%)
- UK English (14%)
- Australian English (8.2%)
- Asian (Japanese, (1.7%)
- European (0.2%)
- Opening daysNearly half of contact centers in The Philippines operate 7 days per week and 31% operate 24 hours a day, 7 days per week.Statistically, there is a significantly higher proportion of contact centers with 20 seats or more that open 7 days per week.There is also a statistically significantly higher proportion of outsourced contact centers that open 7 days per week and 24 X 7.Contact Handling
- Customer contacts per channelOver half of all contacts are handled over the phone. There is a statistically significantly higher proportion of outsourced contact centers that handle customer contact over the phone by the contact center and a statistically significantly higher proportion of in-house contact centers that handle customer contact through the branch/retail network and sales force.
- Primary Activity at Contact CenterThe primary activity of over half of contact centers in The Philippines is providing Customer Service / Customer Support, pegged at roughly 52%.
- Inbound vs. Outbound FunctionalityThe majority of contact centers in The Philippines have blended functionality.
- Mean Weekly Transaction Volume per CenterEach contact center handles an average of 160,399 transactions per week.
- Channel VolumesThe share of transactions through each channel shows a high reliance on agents. Agents handle 49% of all transactions that come through the contact center with no automation, plus an additional 18% of transactions after some functions have been handled by the IVR.
- Contact Center TransactionsThere is a statistically significantly higher proportion of outsourced contact centers handling transactions by phone (agent after IVR).
- Inbound and Outbound % of Total Calls66% of total calls handled by contact centers in The Philippines are inbound.
- Agent Call Handling – no. of calls per agent per shiftPhilippine inbound, outbound and blended agents all handle between 60 – 70 calls per shift per day.Inbound only agents in outsourced contact centers handle a statistically significantly higher number of calls than inbound only agents in in-house contact centers.
- % of Contact Centers that Report an Up or Cross-Selling Opportunities from Inbound Calls71% of contact centers in The Philippines report opportunities to up or cross-sell from inbound calls.
- Mean % of Total Inbound Calls that Present an Up or Cross-Selling OpportunityOf those contact centers in The Philippines that report opportunities to up or cross-sell from total inbound, on average, 52% of all inbound calls present an opportunity to up or cross sell.
Budgets and Costs
- Budget allocationOn average, 46% of the total contact center budget in The Philippines is allocated to labor related expenses. 20% of budget is allocated to technology expenses and 19% is allocated to telecommunications.
- Cost per seat and optimized cost per transactionIn the Philippines, the annual cost per seat is US$18,086.Hourly cost per seat is US$4.83Cost per transaction is US$0.40* Please note these calculations are based on one seat operating 12 hours a day, 6 days a week (3,744 hours per annum). The seat on average handles 12 contacts per hour (44,928 contacts per annum), with an average call duration of 3 minutes and an average wrap time of 1 minute. The occupancy rate of this seat is averaged at 80%. The transaction cost is an estimate of what an optimally performing contact center in should cost given these conditions.
- Agent gender and ageAgent gender in contact centers in The Philippines is fairly evenly split. 42% are male and 58% are female.Agents in The Philippines are predominantly aged between 18-34 years.
- Staff salaryFull-time agents in The Philippines are paid on average PHP 164,848 per year, with a median of PHP 150,000.Part-time agents are paid on average PHP 69 per hour, with a median of PHP 45.The average annual salary for a contact center manager is PHP 475,878 (median = PHP 420,000).Team Leaders / Supervisors receive an average of PHP 269,296 per year (median = PHP 240,000).
- Staff ratiosOn average, in The Philippines, the ratio of Contact Center Manager / Supervisor to Agent is 1:8.
- Agent trainingNew recruits in The Philippines receive on average 20 days training before starting work in the contact center.Experienced agents receive on average 7 days of external / internal classroom training per year. Experienced agents also receive on average 10 days on the job training per year and 5 days of e-learning training per year.New recruits in contact centers with 100+ seats receive a statistically significantly higher number of external/internal classroom training days.Experienced agents in contact centers with 100+ seats receive a statistically significantly higher number of external/internal classroom training days.
Experienced agents in outsourced contact centers receive a statistically significantly higher number of external/internal classroom training days.
- Agent telework and sick leave6% of all contact centers allow their agents to telework. In centers that allow agents to telework, on average, 1% of agents do. On average, in The Philippines each agent takes approximately 11 days of sick leave per annum.
- Staff attrition and tenureIn The Philippines, the mean attrition rate of fulltime agents is 18%. The mean attrition rate of part-time agents is 24%.There is a statistically significantly higher proportion of in-house contact centers with no (0%) full-time and part-time agent attrition.There is a statistically significantly higher proportion of contact centers with less than 50 seats with no (0%) full-time and part-time agent attrition.51% of agents who leave contact centers in The Philippines have done so by resigning. 23% of those who have left transferred to other parts of the business. One in ten agents who leave are dismissed or retrenched and one in ten did not renew their contract.
As a percentage of total attrition, there is a statistically significantly higher proportion of agents in in-house contact centers who resigned and agents who transferred to other parts of the business.
There is a statistically significantly higher proportion of agents who did not renew their contract in outsourced contact centers.
The average tenure of those full-time staff leaving contact centers in The Philippines is 18 months, with an average of 6 months or part-time agents. Team leaders stay for around 1.5 years and contact center managers stay longer at just under 4 years
Full-time agents and contact center managers in in-house contact centers have a statistically significantly longer length of tenure.
Team leaders / Supervisors in outsourced contact centers have a statistically significantly longer length of tenure.
- Technology ImplementedThe top three most commonly implemented technologies in The Philippines are Automatic Call Distributor (ACD) [60%], Customer Relationship Management (CRM) [58%] and Interactive Voice Response (IVR) [40%]. Other commonly used technologies include Internet Protocol (IP) Telephony [37%], Call Recording System [36%], Computer Telephony Integration (CTI) [34%], Workforce Management Software [30%], and Speech Recognition Software [27%]The large (100+ seats) offshore contact centers in The Philippines appear to be the innovators of the contact center industry in terms of implementation of technologies.Outsourced contact centers have statistically significantly higher levels of technology adoption.
- Technology PurchaseIn The Philippines, in the next 12 months, the key contact center technologies likely to be purchased include Voice & Data Recording and QMS, Interactive Voice Response (IVR) and E-Learning systems.Disaster Recovery
- Disaster Recovery Planning58% of contact centers currently in The Philippines have a disaster recovery plan in place. 42% do not.There is a statistically significantly higher proportion of contact centers with 100+ seats and outsourced contact centers with a disaster recovery plan.
Key Performance Indicators
- Average Abandonment Rate – 10%
- Average Inbound Talk Time (Seconds) – 329
- First Call Resolution – 73%
- Average Speed of Answer (Seconds) – 26
- Occupancy Rate – 75%
- Average Outbound Talk Time (Seconds) – 300
- Current Service Level Targets90% calls in 10 sec – 32%90% calls in 20 sec – 13%80% calls in 20 sec – 10%No target – 23%
Mean % of calls answered within service level target – 77%
- Call Quality Measures Used69% of all contact centers use Call Monitoring by Supervisors. Nearly half of all contact centers use Call-Back Surveys and 40% use Random Surveys by Agents. 24% of contact centers do not use any call quality measures.There is a statistically significantly higher proportion of contact centers with 100+ seats using quality call measures.There is a statistically significantly higher proportion of contact centers with less than 100 seats not using any quality call measures.There is a statistically significantly higher proportion of in-house contact centers not using any quality call measures.
- % of Contact Centers that have Quality Accreditation32% of contact centers have ISO-9000 quality accreditation, 19% have COPC quality accreditation and 57% of contact centers do not have quality accreditation.
Outsourcing of Contact Centre Functionality
- % of Organisations Currently Outsourcing some of their Contact Center Functionality – 22%
- % of Contact Center Functionality Currently Outsourced – 50%
- Current Outsource LocationsOf those contact centers in The Philippines currently outsourcing some of their contact center functionality, 70% of centers currently outsource to The Philippines. A smaller percentage also outsource to a number of other countries.
- Organisations Planning to Outsource Any / Any Additional Contact Center Functionality in Next 12 Months17% of contact centers in The Philippines plan to outsource some contact center functionality within the next 12 months.
- Planned Outsourced LocationsOf those contact centers planning to outsource some contact center functionality in the next 12 months, 75% plan to outsource to The Philippines. A smaller percentage also plan to outsource to a number of other countries.
- Significant Challenges Facing Contact Centers in the Next 12 Months. Respondents in The Philippines believe that the top three major challenges facing contact centers over the next 12 months are Human Recruitment, Cost, Marketing.
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