Call center industry in the Philippines

Encyclopedia : C : CA : CAL : Call center industry in the Philippines

Philippine President Gloria Macapagal Arroyo, center, is escorted by Michael Dell, left, Chairman and Founder of Dell Inc, as she tours the facilities of its outsourcing branch during its opening at the Mall of Asia.

Call center industry is an emerging industry in the Philippines. The offshore outsourcing was regarded as one of the fastest growing industry 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. It is estimated that 112,000 people were working in call centers in the Philippines in 2005, bringing in revenues of US$1.12 billion for the year. This is a sharp increase from 2000 when call centers employed 2400 people and earned US$24 million.

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 leaps and bounds. The Philippines Board of Investments (BOI) estimates growth rate of this industry since 2001 to 100 percent annually with less than 1000 seats in 2000 to more than 69,000 at the end of 2004.

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. It has been estimated that as many as 130,000 could be working in all call centers in the Philippines by February 2006. Accoding to industry forcasts, 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.

Contents

1 The Philippines as an offshore outsource site
2 Profile

2.1 Call center duties and responsibilities
2.2 Common call center recruitment and training process

3 List of Call Centers
4 See also
5 References

The Philippines as an offshore outsource site

The Philippines is considered a major player in the global BPO market. This is because as a former American colony, the country's education system is patterned after the American education system and this includes American-style diction and pronunciation of the English language. This gives Filipino-English a neutral or an almost American accent, an advantage in dealing with the mostly American clientele. By contrast, while an emerging IT powerhouse, India's call center industry is criticized for having a language barrier due to the fact that Indians (as a former British colony) are educated in British-style English which is compounded by the heavy Indian accent. In 2005, the country ranked 3rd in the world for top BPO destinations, according to neoIT's 2005 Mapping Offshore Markets Update.

The Philippines is also considered as location of choice due to its less expensive labor costs and its steady supply of computer, electronics and internet savvy college graduates who view call center work as a career rather than a temporary job.

The country offers 24/7 multilingual and multimedia supported premium services for merketing, 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.

Also cited among the country's competitive edges were the accounting system that were modeled after the general accounting procedures in the United States, and local information and communications service providers that can integrate offshore back-office-processing systems with US-based enterprise resource planning (ERP) applications. Investors are given substantial incentives when locating operation in the Philippines information technology-based zones.

A study by the Swiss International Institute for Management Development in 2004 found that among Asian countries, the Philippines was the number one in the availability of skilled labor. Moreover, the ease in training Filipinos to take over jobs requiring greater competencies and responsibilities was cited as another reason.

Most investors love the Filipino work ethic, personality and hospitality. As a person, Filipinos take time to understand others beyond race or culture and after that, go on to empathize with them especially during times of great need. Superior customer service is one of the characteristics Filipinos are known for.

Profile

Call center duties and responsibilities

While call centers actually began in the Philippines as simple providers of e-mail response and handling services, these have developed capabilities for almost all types of customer interactions, ranging from travel services, financial services, technical support, education, customer care, online business to customer support, online business to business support.

Among the calls handled by various Philippine call centers could be classified into inbound and outbound calls. For outbound calls, the services cover telemarketing, advisories, sales verification. credit and collection, reactivation/reinstatement of accounts, loyalty program benefits, customer services and order entry. Inbound calls cover a broad range of services, from all types of inquiries, technical help, transcription, complaints, customer service, support, sales, marketing, and billing.

A call center agents are typically assigned in graveyard shifts, interacting with customers from all over the world, mostly from the United States and must adhere to strict performance metrics.

Common call center recruitment and training process

Each call center agent undergoes a rigorous and exhausting recruitment process and enriching training program to ensure that only the most dedicated, energetic and skilled individuals get to fill the available seats. The recruitment process for new call center agents may include (but not limited to) the following:

Phone screening - this stage determines the voice quality over the phone and how the applicant responds to the call;
Initial Interview - conducted by the company human resource department or another outsource staffing firm to test the speaking skills, attitude and how confident the applicant responds to questions;
Examination - this includes aptitude tests, computer-based call simulations and emotional quality (EQ)/ attitude tests; and
Final Interview - to assess customer service, technical or sales skills.

List of Call Centers

According to 2005 industry estimates, there are over a hundred call centers in the Philippines, the bulk being in Metro Manila mainly in the business districts of Ortigas Center in Pasig City, the Makati Business District, Eastwood City Cyberpark in Quezon City, and Fort Bonifacio in Taguig City. However, both local and foreign-owned call centers have ventured to regions outside Metro Manila, setting up offices primarily in Metro Cebu and other key cities such as Baguio City, Davao City, Cagayan de Oro, Dumaguete, Zamboanga City, and Angeles City in Pampanga.

Company Name Headquarters Philippines
Launch Year Philippines
Site Locations Website Notes
Sykes Tampa, Florida, USA 1997 6 [sykes.com] formerly McQueen (1996)
PeopleSupport Los Angeles, California, USA 2000 3 [peoplesupport.com]
eTelecare Global Solutions Scottsdale, Arizona, USA 1999 5 [etelecare.com] formerly known as eTelecare International, after acquiring US-based Phase 2 Solutions in 2004.
Convergys Cincinnati, Ohio, USA 2003 6 [convergys.com]
Teletech Englewood, Colorado, USA 2003 4 [teletech.com]
Dell International Services Round Rock, Texas, USA 2005 2 [dell.com/manila] In-house Call Center
Siemens Business Services Munich, Germany 2005 2 [siemens.com.ph] In-house Call Center
AOL Member Services Dulles, Virginia, USA 1998 2 [aol.com] In-house Call Center
HSBC EDP New York City, NY, USA 2004 1 [hsbc.com.ph] In-house Call Center
ClientLogic Nashville, Tennessee, USA 2004 3 [clientlogic.com] formerly Contact World (2001)
and ServiceZone (2002)
C-Cubed Quezon City, Philippines 2000 1 [c-cubeservices.com] also known as Customer Contact Center, Inc.
100% owned by Lopez group (2000)
Partly owned by Source One Global (2001)
Source1 HTMT Mumbai, India 2001 1 [sourceonehtmt.com] Shares the same office as C-Cubed
Epixtar Miami, Florida, USA 2003 1 [www.epixstar.com] filed for Chapter 11 bankruptcy protection in 2005
Sutherland Rochester, New York, USA 2005 1 [suth.com]
West Corporation Omaha, Nebraska, USA 2004 1 [west.com]
Sitel Omaha, Nebraska, USA 2004 2 [sitel.com]
Link2Support Quezon City, Philippines 2002 1 [link2support.com]
IBM Daksh Haryana, India 2005 1 [daksh.com] Majority Indian BPO (2004)
NCO Group Horsham, Pennsylvania, USA 2004 1 [ncogroup.com] formerly RMH Teleservices (2003)
ICT Group Newtown, Pennsylvania, USA 2003 4 [ictgroup.com] Global Business Management Solutions Provider (call centers, hosted/co-hosted technology, BPO, back office) Over 14,000 agents, 40+ contact centers in 10 countries with 20+ years experience.
TRG Karachi, Pakistan 2005 2 [resgrp.com]
Ambergris Solutions Pasig City, Philippines 2002 3 [ambergrissolutions.com]
Cyber City Teleservices Clarkfield, Pampanga, Philippines 2003 1 [cctll.com]
ElectraServ Long Beach, California, USA 2005 1 [electraserv.com]
Infonxx Makati City, Philippines 2002 2 [infonxx.com]
ePerformax Makati City, Philippines 2003 1 [eperformax.com]
Vision-X (VXI) Los Angeles, California, USA 2002 1 [vxi.com]
Vertex Solutions Pasig City, Philippines 2003 1 [vertexcrm.com]
SVI Connect Pasig City, Philippines 2003 1 [sviconnect.com]
TeleConnect Pasig City, Philippines 2003 1 [teleconnect.com.ph]
Teleperformance Salt Lake City, Utah, USA 2003 1 [teleperformanceusa.com]
CallBox Los Angeles, California, USA 2004 2 [callboxinc.com]
Branders.com San Mateo, California, USA 2005 1 [branders.com]
AskMeNow Irvine, California, USA 2005 1 [askmenow.com]
Cinnovation Pasig City, Philippines 2005 1 [cinnovation.ph]
ePLDT Ventus Pasig City, Philippines 2004 2 [epldtventus.com] Philippine Long Distance Telephone Co. subsidiary
Parlance Systems Makati City, Philippines 2002 2 [parlancesystems.com] Philippine Long Distance Telephone Co. subsidiary
Vocativ Systems, Inc. Taguig City, Philippines 2001 2 [epldt.com] Joint Venture between Teletech Holdings and
Philippine Long Distance Telephone Co.
ePacific Global Pasig City, Philippines 2002 1 [epacificglobal.com]
APAC Customer Services, Inc. Deerfield, Illinois, USA 2003 1 [apaccustomerservices.com]
Advanced Contact Solutions Makati City, Philippines 1998 3 [acspacific.com]
GlobalStride Quezon City, Philippines 2002 1 [globalstride.com]
Touch Asia Makati City, Philippines 2001 1 [touchasia.com]
iTouchPoint Edison, New Jersey, USA 2004 1 [itouchpoint.com]
Orchid CyberTech North Ryde, NSW, Australia 2005 1 [tpg.com.au]
Pilipinas Teleserv Quiapo, Manila, Philippines 2000 2 [teleserv.com.ph]

Company Name	Headquarters	Philippines Launch Year	Philippines Site Locations	Website	Notes
Sykes	Tampa, Florida, USA	1997	6	[sykes.com]	formerly McQueen (1996)
PeopleSupport	Los Angeles, California, USA	2000	3	[peoplesupport.com]
eTelecare Global Solutions	Scottsdale, Arizona, USA	1999	5	[etelecare.com]	formerly known as eTelecare International, after acquiring US-based Phase 2 Solutions in 2004.
Convergys	Cincinnati, Ohio, USA	2003	6	[convergys.com]
Teletech	Englewood, Colorado, USA	2003	4	[teletech.com]
Dell International Services	Round Rock, Texas, USA	2005	2	[dell.com/manila]	In-house Call Center
Siemens Business Services	Munich, Germany	2005	2	[siemens.com.ph]	In-house Call Center
AOL Member Services	Dulles, Virginia, USA	1998	2	[aol.com]	In-house Call Center
HSBC EDP	New York City, NY, USA	2004	1	[hsbc.com.ph]	In-house Call Center
ClientLogic	Nashville, Tennessee, USA	2004	3	[clientlogic.com]	formerly Contact World (2001) and ServiceZone (2002)
C-Cubed	Quezon City, Philippines	2000	1	[c-cubeservices.com]	also known as Customer Contact Center, Inc. 100% owned by Lopez group (2000) Partly owned by Source One Global (2001)
Source1 HTMT	Mumbai, India	2001	1	[sourceonehtmt.com]	Shares the same office as C-Cubed
Epixtar	Miami, Florida, USA	2003	1	[www.epixstar.com]	filed for Chapter 11 bankruptcy protection in 2005
Sutherland	Rochester, New York, USA	2005	1	[suth.com]
West Corporation	Omaha, Nebraska, USA	2004	1	[west.com]
Sitel	Omaha, Nebraska, USA	2004	2	[sitel.com]
Link2Support	Quezon City, Philippines	2002	1	[link2support.com]
IBM Daksh	Haryana, India	2005	1	[daksh.com]	Majority Indian BPO (2004)
NCO Group	Horsham, Pennsylvania, USA	2004	1	[ncogroup.com]	formerly RMH Teleservices (2003)
ICT Group	Newtown, Pennsylvania, USA	2003	4	[ictgroup.com]	Global Business Management Solutions Provider (call centers, hosted/co-hosted technology, BPO, back office) Over 14,000 agents, 40+ contact centers in 10 countries with 20+ years experience.
TRG	Karachi, Pakistan	2005	2	[resgrp.com]
Ambergris Solutions	Pasig City, Philippines	2002	3	[ambergrissolutions.com]
Cyber City Teleservices	Clarkfield, Pampanga, Philippines	2003	1	[cctll.com]
ElectraServ	Long Beach, California, USA	2005	1	[electraserv.com]
Infonxx	Makati City, Philippines	2002	2	[infonxx.com]
ePerformax	Makati City, Philippines	2003	1	[eperformax.com]
Vision-X (VXI)	Los Angeles, California, USA	2002	1	[vxi.com]
Vertex Solutions	Pasig City, Philippines	2003	1	[vertexcrm.com]
SVI Connect	Pasig City, Philippines	2003	1	[sviconnect.com]
TeleConnect	Pasig City, Philippines	2003	1	[teleconnect.com.ph]
Teleperformance	Salt Lake City, Utah, USA	2003	1	[teleperformanceusa.com]
CallBox	Los Angeles, California, USA	2004	2	[callboxinc.com]
Branders.com	San Mateo, California, USA	2005	1	[branders.com]
AskMeNow	Irvine, California, USA	2005	1	[askmenow.com]
Cinnovation	Pasig City, Philippines	2005	1	[cinnovation.ph]
ePLDT Ventus	Pasig City, Philippines	2004	2	[epldtventus.com]	Philippine Long Distance Telephone Co. subsidiary
Parlance Systems	Makati City, Philippines	2002	2	[parlancesystems.com]	Philippine Long Distance Telephone Co. subsidiary
Vocativ Systems, Inc.	Taguig City, Philippines	2001	2	[epldt.com]	Joint Venture between Teletech Holdings and Philippine Long Distance Telephone Co.
ePacific Global	Pasig City, Philippines	2002	1	[epacificglobal.com]
APAC Customer Services, Inc.	Deerfield, Illinois, USA	2003	1	[apaccustomerservices.com]
Advanced Contact Solutions	Makati City, Philippines	1998	3	[acspacific.com]
GlobalStride	Quezon City, Philippines	2002	1	[globalstride.com]
Touch Asia	Makati City, Philippines	2001	1	[touchasia.com]
iTouchPoint	Edison, New Jersey, USA	2004	1	[itouchpoint.com]
Orchid CyberTech	North Ryde, NSW, Australia	2005	1	[tpg.com.au]
Pilipinas Teleserv	Quiapo, Manila, Philippines	2000	2	[teleserv.com.ph]

References

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