The Philippines As Contact Center Outsourcing Hub: 3 Key Advantages

By Arlan Ang, Senior Director, Transitions & Solutions Design, HGS

In search of a customer service outsource destination that delivers the winning combination of cost-containment and optimized experience?

Be sure to keep in mind the Philippines.

The country continues to be among the most cost-competitive business process management (BPM) locales, according to Everest Group. Its business process outsourcing (BPO) industry is flourishing – with projections to add as many as 70,000 jobs and $1 billion in revenue, and growing, according to the Contact Center Association of the Philippines.

It is projected that the Philippine BPO industry will grow by 7 to 9 percent this year, a feat that is by no means a surprise given that year after year, the segment has been an instrumental contributor to the country’s economic growth miracle.

There are many reasons why companies look to the Philippines as an outsourcing destination – from Filipinos' vaunted English language skills and the workforce’s proven empathy for customers,  to tax incentives and its BPO-focused infrastructure. And while those reasons may be enough encouragement for serious locators, a deeper dive into the market will reveal even more interesting competitive advantages.

In my 16 years in this industry, 7 years of which has been spent leading transformation for our clients, I know that apart from these, the Philippines is recognized for three key strengths:

  • It is an excellent outsourcing hub.

    The Philippines has been named among the fastest-growing centers for both digital and voice channels with two significant differentiators:
    • A natural affinity for service and the Western culture, ranking as the third-most
      English-proficient country in Asia (at 96% literacy rate)
    • Less expensive operational and labor costs – among the lowest in the world
  • Scalable, educated talent pool.  Its young and dynamic English-speaking college graduates form the bulk of the population, with 60% of the demographic younger than 30 years old.

    The country’s 44 million strong workforce boasts a college graduation rate of 600,000 per year, to go along with 2 million graduates of technical and vocation courses --- proof of a robust, skilled, and highly diversified labor force.

  • Reliable infrastructure is at the core of the Philippine business process management story. With 11 international gateway operations, 11 submarine cables within landing points in the country, fiber optic connectivity provided by six telecommunications companies, and mass transportation available 24x7, the Philippines indeed, has “abundant, low-cost infrastructure,” to quote the country’s premiere BPM industry association, BPAP.

With a pioneering presence in the Philippines since 1994, HGS understands how to scale, ramp, and provide high-quality engagements to drive real outcomes for our many clients here.

Our highly experienced staff of over 8,000 includes 1,200-plus nurses, Six Sigma black belts, wellness coaches, and healthcare service advocates and specialists.

Collectively, overall staff, made up the majority of front-line associates, boasts average attrition of less than 3% per month and tenure of more than 28 months.

Our Philippines operations have delivered breakthrough results for our partners including  an 11% NPS improvement with our voice of the customer data mining, and a web portal to drive a 97% resolution rate.

To learn more about the Philippines, listen to our recent webinar.

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