Philippines : Call Center Capital of the World

According to The Economic Times, the Philippines is set to overtake India's $12.4-billion BPO industry within five years. (Side note: India is currently the leading offshore outsource destination in the world)

This year, however, the Philippines is already expected to carve a landmark niche in the global call center industry --


Photo Credit: Benprise

"In standalone voice business, the Philippines will undoubtedly beat India this year to become the [new] call center capital of the world," admitted Nikhil Rajpal, a partner at Everest Research India.

The title turnover will happen largely due to the transfer of back office for voice-based customer support of firms such as Cisco, HSBC, T-Mobile and BT Plc from India to the Philippines. But why the Philippines?

Quoting India Times,

Better affinity with the American culture, lack of competing industries for skilled workforce, higher tax incentives and an overall strategy to derisk from a pure India-based call centre model are among top reasons for this shift [to the Philippines].

[...] Companies such as Cisco and BT are increasingly outsourcing handling of customer queries and support to cheaper locations, including the Philippines. Every time a user of, say, Cisco’s router dials a toll-free customer support number, his call gets diverted to a customer support executive sitting in Manila who is paid less than a quarter of what it would cost to hire somebody with similar profile in the US.

Last night, as reported by TV Patrol, the expected growth in the call center industry will result to an additional 60,000 job openings in the coming year.

Mabuhay ang Pilipinas!