Why Outsourcing Customer Service in the Philippines is Successful
One of the favorite tourist destinations in the world is the Philippines. Because of the country’s exotic foods, idyllic beaches, breathtaking diving spots rich in biodiversity, perfect weather, and warm people, many people from different parts of the world are attracted to visit and stay in the country. It intensified the tourism industry and gave more business and job opportunities.
Aside from the booming tourism industry, the Philippines had found another opportunity for economic progress in the middle of the ‘90s. That is when Business Process Outsourcing (BPO) started in the country and became successful. Many international companies were encouraged to transfer their business functions to the country. Due to the undeniable success of the BPO industry, the Philippines is hailed as one of the best outsourcing destinations in the world. And outsourcing customer service is the top outsourcing department that gives numerous job opportunities to Filipinos.
The emergence of outsourcing customer service in the Philippines started when the government found that online outsourcing is a potential source of stable national revenues and employment for their citizens. The Special Economic Zone Act was approved in Congress. It is a way of showing strong support and encouragement to more prospective clients all over the world. The lawmakers also passed a law to lower the taxes of international clients who choose to outsource their business operations in the country.
Since then, the growth of outsourcing companies in the Philippines is unstoppable when the volume of international clients began to come and entrust their business tasks to highly qualified Filipino workers. As a result, 851 registered companies and 429 call centers were established in the local BPO industry. Telecommunication, healthcare, banking and finance, legal, and many more are the outsourcing services that became most in-demand and gave job opportunities for the Filipinos. According to the figures, the Central Bank of the Philippines is expecting a 10% increase in revenue. It is an equivalent of approximately $24.5 billion! Most clients who choose to outsource customer service in the Philippines came from the US, Europe, Australia, and New Zealand. With this, in 2010, the Philippines was acknowledged as the outsourcing capital of the world. Despite the pandemic that hit the whole world, the outsourcing industry in the country continues to succeed and give opportunities to many Filipinos to work.
Outsourcing customer service shares the biggest part of the outsourcing industry in the Philippines. There is a great increase in the number of international companies that transfer their customer service department to the Filipinos and handle the issues and concerns of their customers. It is not surprising if international companies want Filipino customer service agents. They have a natural skill for quality service, integral value, respect, and affinity towards a friendly work environment– the reasons for the strong marketability of the country in global outsourcing.
Below are the top three factors why foreign companies decided to outsource in the Philippines:
High literacy rate. According to a report by the United Nations, among Southeast Asian countries, the Philippines has the highest literacy rate at 97.95%.
High English proficiency. The Filipinos placed 27th in the ranking of countries that have a high score in English proficiency. They gathered a score of 562 out of 700 on the English tests administered by Education First. Aside from this test result, English is considered the second language of the country and the form of communication in different fields.
Neutral accent. It is one of the factors why outsourcing customer service in the Philippines is successful. The country was dubbed as the world’s call center capital. Many English-speaking Filipinos could imitate the American accent and it is one factor why US clients and other countries were enticed to outsource in the country.
The pandemic brought by the coronavirus has somehow affected some of the outsourcing companies in the Philippines. But with the proper training, government support, and international clients who already trust the Filipino experts, the Philippines stays to lead in the BPO industry.
