Building a Call Center in the Philippines in 2023

Building a call centre in the Philippines can be very cost effective – everyone knows that. But the Southeast Asian archipelago offers enterprises additional benefits, many of which you wouldn’t expect.

Traditionally, western entrepreneurs considered the Philippines a poor and inaccessible location for business. Foreign direct investment was minimal.

Today, though, the country is thriving. Its cities buzz with commerce, with everyone from international brands to street sellers driving growth. Over the next decade, the economy will double from USD 400 billion to USD 830 billion.

Now Australian companies are considering building more call centres there. But why?

A Large Pool Of Skilled And Educated Workers

Incredibly, the Philippines is now the third largest English-speaking country in the world, with more than 95 per cent of its 115-million-strong population adopting the lingo. The nation also operates an English-speaking policy in its schools to make its young people more internationally competitive.

The news is even better for Western businesses looking to set up call centres. Estimates suggest that two-thirds of Filipinos are fluent in English, with more than 36.3 per cent of the population aged 17 to 24 completing post-second and college education.

A Strong Culture Of Customer Service

The country’s culture is another significant reason call centre bosses want to locate in the region. For many years, tourism drove the Philippines’ economy and enabled the country to build foreign capital in the post-Marcos era. There are hotels, accommodation complexes, and restaurants everywhere. The Philippines was also under U.S. protection after WWII and experienced significant cross-cultural influence.

Due to these factors, the Philippines has an entrenched culture of hospitality. Assistants greet you politely in every store and are willing to answer any question, whether at one of the mega malls or a simple street vendor.

This culture of customer service bleeds over into call centre operations, too. Filipino workers are friendly, courteous, respectful, and patient. More importantly, they want to serve. Work isn’t just about collecting a paycheck at the end of the month.

A Stable And Modern Infrastructure

The Philippines also offers a reasonably stable and modern infrastructure to support call centres if you locate in the downtown district of a major city. Manila, Cebu, and Davao all have reliable internet connectivity, power supplies, and telecommunications. Transport links are good in Manila, though the capital and regional cities experience significant road congestion.

Previously, the Philippines experienced regular brownouts. Now, though, the situation is significantly improved. Foreign investment is pouring into the country, and infrastructure projects are gathering pace. The country’s internet connectivity is now among the top in the world, according to an Ookla report.

Another strength of the Philippines’ infrastructure is the country’s telecommunications network. The sector is robust and competitive, with multiple firms competing to improve services and reduce prices. The government has also launched various initiatives to boost broadband infrastructure, ensuring more people and businesses can access high-speed internet.

Naturally, there are challenges. The Philippines archipelago sits in an area of seismic activity and is subject to typhoons. However, this unfortunate location may help the country develop antifragile networks. Over time, it could build more reliable infrastructure than its Western counterparts.

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A Favourable Business Environment

Global businesses typically look to South Korea, Viet Nam and Thailand for favourable business environments. However, the Philippines is also becoming more competitive on the world stage. The government has implemented several policies encouraging foreign investment and trade, prioritising economic growth and development. Consequently, the country is now among the most attractive destinations in Southeast Asia for Western businesses, including call centres.

Specific examples include the Philippine Economic Zone Authority (PEZA) and the ASEAN Free Trade Area (AFTA). The former organisation provides incentives and tax breaks to enterprises investing in specific sectors.

In addition to these policies, the government has substantially improved the country’s business environment. Companies can now access several one-stop shops to set up their enterprises in the country. Paperwork remains, but it is more manageable.

These changes mean that the Philippines jumped 29 spots in the World Bank’s Doing Business report in 2020, a sign that things are improving. The score measured the Philippines on various metrics including:

  • The ease of paying taxes and the effective tax rate
  • Ease of trading across borders
  • The quality of contract-enforcement institutions
  • The ability to access electricity
  • The ability to register property
  • The ease of accessing credit

The Philippines improved its business–worthiness ranking by strengthening minority investor protections and by requiring greater transaction disclosure for interested parties. It also abolished some minimal capital requirements and made dealing with construction permits less hassle.

What’s more, the new Bongbong Marcos presidency has made it clear that doing business is at the top of the political agenda. The Philippines has a once-in-a-lifetime opportunity to improve its economic outlook and attract foreign companies.

Get Logix To Help Build Your New Call Center In The Philippines

No country offers a perfect business environment. However, outsourcing in the Philippines is improving and has specific advantages that will appeal to call centre businesses.

Of course, setting up a call centre is challenging. That’s why it’s best to use Logix BPO offers trusted Call Center Philippines Solutions.

Working with us, you can benefit from:

  • Properly trained customer service agents in the Philippines
  • Processes that focus on delivering daily, weekly, and monthly KPIs
  • State-of-the-art operational infrastructure ensuring adequate uptime
  • World-class calling systems using the latest technologies
  • An award-winning culture (winners of The Silicon Review’s 5 Best BPO Solution Providers to Watch in 2023)

Contact us today to learn how we can help you build a cost-saving call centre in the Philippines that serves your customers. We offer a world-class facility in Cebu City, the most affluent conurbation in the nation. We provide your company with everything you need to support your organisation, offering a 70 per cent price reduction compared to operating a similar facility locally.