Call Center industry in the Philippines
The call center industry is an emerging industry in the Philippines. Business process outsourcing is regarded as one of the fastest growing industries in the world. Business process outsourcing in the Philippines became the latest trend in the services sector in the 2000s and is led by demand for offshore call centers.
The growth of call centers continue to be rapid, up from 72 registered in late 2003 when the Asian Call Center Review reported the Philippines as the first rank in the offshore call center industry for the Asian region, surpassing India at the second spot. From being an almost unexplored BPO territory in 2000, the call center industry has grown by leaps and bounds. The Philippines Board of Investments (BOI) estimates growth rate of this industry since 2001 to 100 percent annually. It is estimated that 200,000 people are working in 120 BPO (mostly Contact Centers) in the Philippines in 2006, and expected to bring in revenues of US$3.8 billion for the year - a sharp increase from 2000 when call centers employed 2400 people and earned US$24 million.
In 2004, the Philippines already captured 20 percent of the total world market share in contact center services. The Philippine government estimates the Philippines could capture 50 percent of the total world English-speaking market in 2008. This industry, aside from contributing 12 percent in to the Philippines gross national product, is also the fastest growing provider for Filipino college graduates. The Information and Communications Technology division of the BOI reported that the call center industry experienced a growth rate of 70 percent in 2005 making it the most dynamic of all sectors in the Philippine information technology industry. According to industry forecasts, more than a million Filipinos would be employed in the call center industry, with more than US$12 billion in revenues in the year 2010.
The Philippines is also considered as location of choice due to its less expensive labor costs.
The country offers 24/7 multilingual and multimedia supported premium services for marketing, sales, customer care, crisis management, investor relations and other key business applications. The reasons cited for the bullish outlook towards the Philippines have been, among others, due to lower operating costs, English language proficiency and high ICT skills yet low-cost workforce. Industry associations such as the BPO Services Association (BSAU www.bsau.org) and Business Processing Association of the Philippines (BPAP www.bpap.org) promote good practice and self-regulation in the industry.
The Philippines is considered a major player in the global BPO market. In 2005, the country ranked in the top 10 world wide for top BPO destinations, according to neoIT's 2005 Mapping Offshore Markets Update.
