24th
2007
Call Center in the Philippines - Why?
Why are so many call centers located in the Philippines? There are several reasons, which we’ll explain here.
India is expensive
India has long been a place for call center outsourcing. But as the economy grows, so is the cost of labor. Thus, the total cost of outsourcing call centers to India has been rising.
Naturally, when costs rise, businesses look for alternatives. If India is getting more expensive for call center outsourcing, businesses look elsewhere. That’s where the Philippines come in.
Growing economy
The Philippine economy is growing quickly. And the Philippine government has plans to further increase economic growth. Under the 7, 8, 9 project, they hope to increase the GDP by 9% by the year 2009.
After a rough downturn during the early years of this decade, the Philippine peso has now emerged as Asia’s strongest currency. The peso was even able to edge out the Indian rupee.
But still low costs
Even though the Philippine economy is growing, it still has lower costs than competing areas in Asia. Part of this is due to vast income inequality. There is a substantial portion of the population living on next-to-nothing. But this benefits businesses, who can find qualified employees at lower costs, while still giving them better living and working conditions in a call center.
What do you think?
Do you know of any reasons why Philippine call centers are so popular? What could explain this huge increase in call centers in the area?
Posted by Andrew Flusche in Call Center Basics, Call Center News with 2 comments.