How the Philippines Became the Call Center Capital of the World
Key Takeaways:
- The Philippines became the “Call Center Capital of the World” because of strong English skills, cultural ties to the West, and government support.
- Affordable labour and tax incentives helped attract global companies to set up operations in the country.
- The industry now employs over 1.5 million people and is expected to generate nearly $38 billion in revenue by 2024.
- With global brands like Amazon and Apple relying on Filipino talent, the Philippines continues to lead in outsourcing while focusing on digital tools and employee well-being for the future.
What factors contributed to the Philippines’ rise as the “Call Center Capital of the World”? Since the early 1990s, the industry has grown from a small operation to a global leader, thanks to a skilled English-speaking workforce and cultural ties to the West. Supportive government initiatives like the Special Economic Zone Act have also attracted foreign investment.
Today, the call center sector is crucial to the Philippine economy, providing millions of jobs and making a significant contribution to the global BPO market.
Early Beginnings of Call Centers in the Philippines
Frank Holz launched the first call center in the Philippines in 1992, transforming the economy and paving the way for a booming industry. Supported by the government and the Special Economic Zone Act of 1995, which encouraged private business and foreign investment, special economic zones (SEZs) provided tax breaks and relaxed regulations.
These initiatives fueled the growth of the Business Process Outsourcing (BPO) sector, establishing the Philippines as a leading destination for affordable customer service and earning it the title “Call Center Capital of the World.”
Factors Contributing to Success
The call center industry in the Philippines has emerged as a significant player in the global business process outsourcing (BPO) landscape due to several key factors.
- High English Skills
With a 97% literacy rate, the Philippines ranks 20th in the English Proficiency Index and second in Asia, enhancing communication and customer service.
- Affordable Labor
Competitive labor costs attract foreign investment, allowing for quality service at budget-friendly rates.
- Government Support
Government programs train BPO employees and promote data security, creating a skilled workforce and a favorable regulatory environment for call centers.
Growth of the Industry
The call center industry in the Philippines has experienced incredible growth, with impressive statistics showcasing its influence on job creation and revenue. As of 2023, the Business Process Outsourcing (BPO) sector has around 1.57 million full-time workers, and it’s expected to exceed 1.7 million by 2024 due to the rising need for outsourcing in areas like customer service, IT support, and healthcare. The revenue from this industry has also seen significant increases, with projections estimating it will hit about $37.87 billion in 2024, highlighting its vital contribution to the Philippine economy.
Key milestones in the industry’s journey include reaching over a million jobs in 2010 when the Philippines earned the world’s BPO capital title. By 2013, the workforce had grown to 900,000, and by 2022, the sector continued to create jobs despite facing global challenges. The ongoing growth of the BPO industry emphasizes its strength and essential role in driving economic progress in the Philippines.
Global Recognition
The Philippines has emerged as a global leader in call center services, thanks to strategic partnerships with major companies such as Amazon, Apple, and AXA Insurance. These firms have outsourced operations to the Philippines, drawn by the country’s strong English skills and cultural ties to Western markets.
For example, Amazon opened its first customer service center in Cebu City in 2018 to tap into local talent and improve efficiency. Apple relies on Filipino teams to achieve high customer satisfaction, while AXA has moved its call center from Hong Kong to enhance service quality across Asia. These collaborations highlight the Philippines’ strengths and solidify its reputation as a top outsourcing destination, enabling businesses to thrive with skilled Filipino employees.
The Future of Call Centers in the Philippines After Years of Success
The Philippines is a leading player in the call center industry thanks to its strong English skills, affordable services, and government support. With over 1.57 million people in the BPO sector, it thrives despite global challenges. Looking ahead, the industry is focusing on sustainability, employee well-being, and advanced digital tools to remain competitive.
At SupportZebra, we take pride in contributing to this success. Since 2011, we’ve grown from 15 to nearly 300 employees, offering voice, live chat, and email support for e-commerce and SaaS companies. Our strong culture and commitment to employee growth attract top talent and ensure customer satisfaction.
Contact SupportZebra today to see how our personalized service and innovative technology can enhance your business.
