Call Center Outsourcing: A Boon for Transnational Companies and Philippine Economy

  • August 3, 2011
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By Roy Jonathan del Rosario

Call center outsourcing and the rising unemployment rate in the Philippines may have something mutual in relation. That is – to help out each other in their quest for generating better income for themselves in a wiser manner.

Call center outsourcing has indeed proven to be one of the most flourishing ways through which most of the companies upsurge their respective cost effectiveness. Many large transnational companies have managed to enrich their cost efficiency through call center outsourcing. Chiefly, companies, after outsourcing their call center work to lower cost locations especially here in the Philippines, majority of them have managed to build up their cost effectiveness by up to 50 percent and have as well enhanced their customer support and fulfillment.

In a short period of time, many well-built companies followed in the call center outsourcing industry after observing what these companies have achieved. A huge number of the global multinationals are shifting large portion of their business processes to offshore locations since the costs incurred under such a system are relatively much lower. In fact, excellent results have been observed by the companies which chose to outsource.

Some of the major reasons for these lower outsourcing costs here in the Philippines are lower labor cost, highly-skilled workforce and increasing offshore capabilities by service providers in countries like the Philippines.

On the other hand, Philippines, as one of the third world countries has been opened to a new opportunity to diminish huge unemployment rate through call center outsourcing.

As a country whose one of its prime “lingua franca” is the English language, transnational companies are urged to outsource here since Philippines has a very strong working force and more important to note, has more efficient and hard-working people compared to other English-speaking nations that is why large multinational companies choose to outsource here.

It is a good idea to outsource in the Philippines because there is a higher potency of fluent English-speaking, western culture associated agents here.

In a survey by the Michigan-based global staffing firm Kelly Services Inc. and the Singaporean market research outfit ACA Research Inc., proved that Filipino call center employees worked harder, were easier to instruct, had better language skills and were more committed than their counterparts in India.

It is mutual process, transnational companies generate more income as they hire workers here cheaply, thus, generating more jobs for unemployed yet skilled Filipinos to generate income for Philippine economic growth.

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