Call Center Outsourcing to the Philippines: Why English Matters

The remarkable growth and continued success of the call center outsourcing industry in the Philippines is one of the great business success stories of the last twenty years. The industry now generates $30 billion annually and employs more than a million people, making it a leading contributor to the Philippine economy. 

This success has been driven and sustained mainly by U.S. companies that save up to 50% on costs. Chime, Netflix, and Airbnb are some companies that outsource call center services to the Philippines. And as more companies outsource to the country as a cost-efficient way to improve business efficiency, agility, and customer experiences, the nation’s call center industry will likely grow even bigger.

The importance of English-language proficiency in call centers in the Philippines

A significant contributor to this growth is the nation’s high level of English fluency. The country’s long association with the U.S. and cultural affinity with the West, combined with a college education, means most Filipinos speak fluent English. With Tagalog being the country’s official language, English is pervasive throughout the Philippine culture.

Filipinos are also well-versed in American-style slang and idioms and can adopt different accents or maintain a neutral one when needed. From a business perspective, this versatility gives Philippine call center agents the ability to provide high-quality telephone-based customer services to American customers. 

Varying levels of English proficiency 

However, despite an affinity for the language, call center agents’ levels of English-speaking skills can be wildly dissimilar. Variables like where an agent was born and raised, their upbringing, schooling, social environment, and geographic location can determine an agent’s English-speaking abilities. For instance, those living in or near cities have a better grasp of English usage than those from rural areas.

This language gap also means the quality of call center services can vary greatly. Companies that invest in high-quality call centers in the Southeast Asian nation will likely get a high return on their investment and long-term outsourcing success. 

Why cheaper isn’t always better

Low-cost call centers in the Philippines that compete on price, not quality, typically don’t have the financial means to match the salaries offered by premium providers. Compared to premium call centers that can pay their agents US$4-$6 per hour, low-cost call centers can only afford salaries of US$2-$3 per hour, rates too low to attract the country’s top-skilled and English-proficient agents. The lack of English competency can be a handicap.

To offset the lack of talented English-speaking employees, low-cost call centers in the country attract U.S. clients by offering service rates that are US$3-$6 lower than those of premium providers. Companies looking to save on outsourcing costs often take the low-cost bait, but at what cost?

Customers want exceptional service

Outsourcing to call centers in the Philippines is meant to make it easier for companies to solve customer problems and resolve issues and complaints. In today’s ultra-competitive business environment, excellent customer experiences are critical to business success. Customers not only expect exceptional service but also higher expectations for their interactions with call center agents. 

Since 83% of customers prefer engaging with a person when contacting a company, clear communication between agents and customers is of utmost importance. Communication difficulties are the biggest source of customer irritation when dealing with offshore call centers. In a business world where 63% of customers will abandon a brand after just one negative experience, poor agent/customer communication and engagement can be very bad for businesses.

You get what you pay for

But this is what companies risk when partnering with low-cost call centers in the Philippines. Angry or upset customers who can’t understand a call center agent will not only take their business elsewhere but tell the world about their bad experience on social media. Word travels fast, and this ripple effect can be devastating. 

Ironically, companies looking to save money by outsourcing to low-budget outsourcing providers in the Philippines stand to lose revenue through loss of customer retention, satisfaction, and trust, all of which can negatively impact a company’s revenue. The best solution is to choose a Philippine call center provider based on the quality of service and language proficiency rather than cost. 

For companies looking to get the biggest bang for their outsourcing buck, choosing high-quality premium call centers in the Philippines makes good financial sense. They might charge more, but the guarantee of excellent customer service from agents that speak fluent English is money well spent. 

In the long run, English proficiency gives call centers in the country an edge in producing quality call center talent. Because when it comes to outsourcing to call centers, English matters.

Call Center Outsourcing to the Philippines: Why English Matters

The remarkable growth and continued success of the Philippine call center outsourcing industry is one of the great business success stories of the last twenty years. The industry now generates $26 billion annually and employs more than a million people, making it a leading contributor to the Philippine economy. 

This success has been driven and sustained mainly by U.S. companies that save up to 50% on costs. Chime, Netflix, and Airbnb are some companies that outsource call center services to the Southeast Asian BPO powerhouse. And as more companies outsource to the Philippines as a cost-efficient way to improve business efficiency, agility, and customer experiences, the Philippine call center industry will likely grow even bigger.

The importance of English-language proficiency in call centers in the Philippines

A significant contributor to this growth is the nation’s high level of English fluency. The country’s long association with the U.S. and cultural affinity with the West, combined with a college education, means most Filipinos speak fluent English. With Tagalog being the country’s official language, English is pervasive throughout the Philippine culture.

Filipinos are also well-versed in American-style slang and idioms and can adopt different accents or maintain a neutral one when needed. From a business perspective, this versatility gives Philippine call center agents the ability to provide high-quality telephone-based customer services to American customers. 

Varying levels of English proficiency 

However, despite an affinity for the language, call center agents’ levels of English-speaking skills can be wildly dissimilar. Variables like where an agent was born and raised, their upbringing, schooling, social environment, and geographic location can determine an agent’s English-speaking abilities. For instance, those living in or near cities have a better grasp of English usage than those from rural areas.

This language gap also means the quality of call center services can vary greatly. Companies that invest in high-quality contact centers in the Philippines will likely get a high return on their investment and long-term outsourcing success. 

Why cheaper isn’t always better

Low-cost call centers that compete on price, not quality, typically don’t have the financial means to match the salaries offered by premium providers. Compared to premium contact centers that can pay their agents US$4-$6 per hour, low-cost call centers can only afford salaries of US$2-$3 per hour, rates too low to attract the country’s top-skilled and English-proficient agents. The lack of English competency can be a handicap.

To offset the lack of talented English-speaking employees, low-cost attract U.S. clients by offering service rates that are US$3-$6 lower than those of premium providers. Companies looking to save on outsourcing costs often take the low-cost bait, but at what cost?

Customers want exceptional service

Outsourcing to BPOs is meant to make it easier for companies to solve customer problems and resolve issues and complaints. In today’s ultra-competitive business environment, excellent customer experiences are critical to business success. Customers not only expect exceptional service but also higher expectations for their interactions with call center agents. 

Since 83% of customers prefer engaging with a person when contacting a company, clear communication between agents and customers is of utmost importance. Communication difficulties are the biggest source of customer irritation when dealing with offshore call centers. In a business world where 63% of customers will abandon a brand after just one negative experience, poor agent/customer communication and engagement can be very bad for business.

You get what you pay for

But this is what companies risk when partnering with low-cost BPOs in the Philippines. Angry or upset customers who can’t understand a call center agent will not only take their business elsewhere but tell the world about their bad experience on social media. Word travels fast, and this ripple effect can be devastating. 

Ironically, companies looking to save money by outsourcing to low-budget outsourcing providers stand to lose revenue through loss of customer retention, satisfaction, and trust, all of which can negatively impact a company’s revenue. The best solution is to choose a Philippine contact center provider based on the quality of service and language proficiency rather than cost. 

For companies looking to get the biggest bang for their outsourcing buck, choosing premium call centers in the Philippines makes good financial sense. They might charge more, but the guarantee of excellent customer service from agents that speak fluent English is money well spent. 

In the long run, English proficiency gives call centers an edge in producing quality call center talent. Because when it comes to outsourcing to call centers in the Philippines, English matters.