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The Philippines is the Top Call Center Country in the World

The Philippines is the Top Call Center Country in the World

top call center country

Top call center country in the world

Outsourcing redefined how “businesses” should work.

It covers almost every industry from finance, technology, and even manufacturing. And as proof, you’re reading this with the same understanding and need for it.

Decades ago, people had to fall in line to make simple transactions. Now, they do not even need to get up to do it. Outsourcing services like call centers have made everything smoother and faster.

In the BPO industry, there is what we call the Business Processes Outsourcing Market. It consists of different BPO entities that provide different kinds of services. These are, usually, customer relations, customer service, and human resource outsourcing.

It’s a billion-dollar market composed of many countries. Like India, Singapore, and China. 

One of its key drivers is none other than the Philippines. And there are many reasons why:

  • 98.18% literacy rate
  • Progressive government policies
  • Neutral accent

These, however, are all just the tip of the iceberg. 

 

Onshore vs. Offshore

First things first, let us talk about onshore and offshore call centers. And how it can affect your business as a whole..

Onshore: 

Onshore outsourcing means procuring BPO services within the same country.

The pros and cons of Onshore outsourcing are:

PROS

  • Ease of communication. Onshore outsourcing offers seamless and hassle-free communication with your clients. Since there is no language barrier.
  • Fewer cultural differences. Onshore outsourcing minimized cultural conflict between clients and agents. Since they, most likely, share the same views, religion, and politics.
  • They know your market. Local-based outsourcing firms know your market better than foreign companies. Thus, they would actively reconstruct their services to fit your demands and needs.
  • Respect intellectual property rights. Coming from the same country means that you are all bound by the same intellectual property laws. This assures your outsourcing partner knows their boundaries.

CONS

  • The cost is always higher. Since they exist in the same location as your business, chances are they would invoice more. Because they need to keep up with the economic environment
  • A small pool of experts. Onshore outsourcing has a smaller pool of experts. This means that you may not find the best talents if you choose an onshore outsourcing firm.

Offshore:

Call center offshoring means obtaining an external firm for your outsourcing needs.

Offshoring the business process comes with pros and cons:

PROS

  • Lower costs. This is because the external service provider will shoulder most expenses. Such as infrastructure, utilities, and labor costs.
  • Eliminate staffing issues. Your external service providers will handle almost anything about staffing. This includes hiring, training, and managing teams and agents.
  • 24/7 customer service for a fraction of the price. Call center usually works around the clock. You can have 24/7 customer support at a price point that won’t break your bank.
  • Easily handle the overflow call volume. Outsourcing the operation to a service provider helps with the efficiency of work. It can be an invaluable solution to a costly problem. 

CONS

  • Linguistic and cultural barriers. The challenge for overseas agents is mostly cultural. But fluency and communication skills are also major cons for offshore call centers.
  • Decreased control over business functions. When outsourcing you are putting business information in a stranger’s hands. Making it difficult to track quality and put policies.

Now, let’s discuss furthermore the reasons why the Philippines dominate in the BPO market.

 

What sets the Philippines apart

The country takes pride in how Business Process Outsourcing shaped the economy. It has attracted many investors, both locally and globally. And it has been a consistent key player in bringing in billions of peso of total revenue in the country.

To expound on this, let us discuss what sets the country apart from other BPO nations:

  • Cost is not a problem. Because of the low cost of living in the country, businesses can save 60% to 80% of operational costs.
  • One of the reasons the Philippines is the top business’s go-to call center hub is affinity. The country is once a colony of the West. So the Filipino’s ability to work with foreign clientele is a natural thing.
  • Hundreds of companies have been outsourcing in the country for years. These include businesses from Australia, New Zealand, United States, and more. That is why the BPO sector is a significant contributor to the economy. 
  • US-based businesses say that outsourcing to the Philippines reduces capital costs. Filipino agents are worth all the penny because customers in the US find them easy to understand.
  • Industry experts predict that by 2022, Filipino BPO services will cover 15% of the outsourcing market. Additionally, the industry expected growth is 9% annually for the next five years.
  • Philippine-based BPO helps in generating 1.3 million direct jobs. Not only that, the industry helped to create 4.08 million indirect jobs. It also promotes countryside development, producing 280,000 jobs in 23 provinces. 

In essence, procuring our services does not only help with nurturing your business. We are considered leaders in the industry. Plus, we also provide high-quality services. That is the reason why corporations prefer us over any other country.

 

Top 10 Call Centers in the World

Throughout the years, the Philippines has consistently been considered one of the best countries to outsource, according to Tholons. Below is the TSGI 2020 Top 10 Digital Nations:

  • India
  • United States
  • Brazil
  • Canada
  • United Kingdom
  • Philippines
  • Russia
  • Mexico
  • Vietnam
  • Singapore

It is worth noting that the Philippines overtook India as the top call center in the world in terms of expansion and revenues. The country call center industry steadily expands as much as 30% a year, compared to 10-15% per year in India.

 

Criteria for Being Top Call Center Country in the World

There are hundreds of countries that share a percentage of the total Business Processes Outsourcing Market. And choosing the one to partner with can get strenuous.

So to help you, we sort out the criteria you should take into consideration first before making that call:

  • Labor costs
  • English language proficiency
  • Language empathy
  • The neutrality of spoken accents
  • Affinity to Western cultures
  • Customer centrality
  • Talent development programs
  • Government incentives for foreign investors
  • Industry growth rate
  • Industry revenue rate
  • Talent development programs

These are all guides in picking an outsourcing partner. However, if you are looking for a country that will meet all of them. 

It’s the Philippines.

We are not only known as an outsourcing mecca because of our lauded call center expertise. We also provide excellent back-office services, such as accounting, legal processing, animation, data entry, and software engineering.

 

Outsource to a Philippine call center company

Magellan Solutions is a BPO company based in the Philippines. With over 15 years of industry experience, we offer high-quality call center services to businesses of all industries around the world. To guarantee the quality of our service, our company is certified by ISO and HIPAA.

At Magellan Solutions, we train our agents to become customer service experts. We make sure that they have the necessary tools, equipment, and knowledge to efficiently serve customers anywhere in the globe. We want to extend our services even to small and medium enterprises, so we keep our rates highly flexible and competitive.

Get in touch with us now, and we shall discuss how our company can help your business. Fill the contact form below and get your 60-minute free business consultation with us today!

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