Phoning from the Philippines: Outsourcing to Manila's Call Centres | 101 East

Summary

The Philippines has become the world's leading call center hub, overtaking India in just a decade. The booming outsourcing industry provides young Filipinos with stable jobs and attractive salaries, allowing them to stay at home while supporting international clients. However, critics argue that the industry’s focus on customer service work limits creativity and innovation, potentially stalling economic development. While the country has seen significant growth, challenges remain in fostering talent beyond outsourcing. As outsourcing evolves, there's hope for the Philippines to become a center for innovation, encouraging young workers to pursue careers that contribute to the nation’s broader development.

Takeaways

• 😀 The Philippines has become the world's new call center capital, surpassing India in just a decade due to its neutralized English accent and customer service-oriented culture.
• 😀 The outsourcing industry, particularly in call centers, has created high-paying job opportunities for young Filipinos, often rivaling salaries abroad.
• 😀 Critics argue that the outsourcing boom could hinder long-term professional development, as many young workers abandon their original career aspirations for immediate financial rewards.
• 😀 The call center industry is growing rapidly, with companies like Transcom expanding by 20-30% annually, providing stability and job security for workers.
• 😀 Despite the industry's growth, workers face challenges such as high turnover rates, night shifts, long commutes, and the difficulty of maintaining a work-life balance.
• 😀 The outsourcing industry relies heavily on the Filipino workers' patience, customer service skills, and ability to Americanize their communication style to serve global clients.
• 😀 Many young Filipinos in outsourcing roles, like JD Donessa, find promotions faster in this sector compared to other industries, enhancing career growth opportunities.
• 😀 Outsourcing also extends to creative industries, with the Philippines becoming a hub for animation, architecture, journalism, and other creative content.
• 😀 There's a growing concern about the lack of innovation in the outsourcing industry, and experts believe that the Philippines must transition from a support hub to an innovation leader.
• 😀 The government is working to improve education standards, with specialized subjects on outsourcing in state universities and initiatives aimed at fostering more local ownership in the industry.
• 😀 Some Filipino workers, like Grace Tomaranai, are embracing freelance outsourcing, allowing them to balance work with personal life and avoid the financial burden of traditional office jobs.

Q & A

What is the main factor contributing to the growth of the outsourcing industry in the Philippines?

The growth of the outsourcing industry in the Philippines is primarily due to the country's skilled workforce, particularly their proficiency in English, and the industry's ability to offer affordable, high-quality customer service to international clients. The country's young population and cultural adaptability also play significant roles in the success of this sector.

Why have call centers in the Philippines overtaken India as the world's call center capital?

Call centers in the Philippines have overtaken India because of the country's strong command of English, which is neutralized to American standards, making it easier for US clients to communicate with Filipino workers. Additionally, Filipino workers are known for their exceptional customer service skills, and the industry is growing rapidly due to a large, young workforce and higher wages compared to India.

What are some challenges faced by Filipino call center workers in understanding customers?

Filipino call center workers sometimes face challenges in understanding clients from different regions, particularly American customers, as the accents and dialects can differ significantly. This can make communication more difficult despite the workers' high proficiency in English.

How does the call center industry benefit Filipino workers in terms of salary and career growth?

The call center industry in the Philippines offers relatively high salaries compared to other local industries, with entry-level wages being 40% higher than the minimum wage. Workers also experience fast promotion opportunities, which allows them to quickly climb the career ladder. For many, this industry provides financial stability and a chance to support their families.

What are the criticisms of the call center industry in the Philippines?

Critics argue that the call center industry does not foster talent development or contribute significantly to the country's national development. They believe that outsourcing may impact other professions and that the industry is not nurturing critical thinking or creativity among workers, potentially leading to a reliance on foreign companies rather than local innovation.

What is the impact of the outsourcing industry on the Philippine economy?

The outsourcing industry has become a multibillion-dollar sector in the Philippines, contributing significantly to the country's economic growth. It has created hundreds of thousands of jobs and has attracted multinational companies to set up operations in the country. However, there is concern that while the industry generates wealth for corporations, it may not sufficiently contribute to broader national development in terms of innovation and talent growth.

How do call centers try to create a supportive work environment for their employees?

Call centers in the Philippines provide a supportive environment by offering amenities like gyms, sleeping quarters, and even showers for workers. Some also offer additional benefits such as loans and convenience services like ordering pharmaceuticals, aiming to make the workplace feel like a family away from home.

What concerns are raised about the future of the outsourcing industry in the Philippines?

The primary concern is that the Philippines may struggle to innovate beyond basic outsourcing services like call centers. If the country does not focus on developing more creative and entrepreneurial talent, jobs could be shifted to other countries like Vietnam or Sri Lanka, which are emerging as competitors in the outsourcing space.

Why is there a shortage of skilled workers in the Philippine outsourcing industry?

The shortage of skilled workers is partly due to the country's education system, which tends to prioritize conformity over creativity. Additionally, many talented graduates are drawn to the high-paying salaries offered by outsourcing companies, which can lead them to abandon their chosen professions and forego further academic development.

How is the Philippines working to address the lack of innovation in its outsourcing industry?

To address the lack of innovation, the Philippine government is focusing on improving the education system by adding two more years to secondary education and introducing specialized subjects related to outsourcing. Additionally, efforts are being made to bring back overseas Filipinos with advanced degrees to contribute to innovation and development within the country.