How the Philippines Became the Capital of BPO Industry: A Brief History of Philippines Call Center Services

The Philippines is known as the capital of the BPO industry. It is one of the top choices for call center, a subdivision of Business Process Outsourcing, among the world’s best companies, especially those situated in the USA, Europe, and the UK. With excellent work ethics, effective communication skills, and competitiveness, the country has proven its value in the business world. The other factors that contribute to the success of call center services are that the Philippines is the third largest English-speaking country in the world with a very high literacy rate. The Philippines call center industry continues to expand at a very fast rate and the industry is forecasted to flourish further. 

The Philippines call center industry has an interesting history that goes back to the 1990s. In the year 1992, a man named Frank Holz established the first contact center of the country with a company named Outsource2Philippines, Inc. This was the stepping stone of the call center industry in the Philippines that is now acknowledged as the “Sunshine Industry.” At the time, call centers were functioning as providers of basic services like email response and managing services.

However, it was only in 1997, the country established its first multinational account and in 1999, Jim Franke and Derek Holley opened Philippine’s first call center company. Gradually, the industry expanded its services to technical support, customer relations and care, business to business and business to customer support. In the 2000s, the decade that saw the growth of the internet and faster communication around the world, the industry boomed and contributed 0.05% to the nation’s GDP. Soon after, in 2001, Trade Secretary Mar Roxas opened the Contact Center of the Philippines, dedicated to promotion and growth of the industry. It didn’t take too long for the GDP to grow to 2.4%.

In 2006, the Philippines’ call center industry experienced a 46% annual growth. With the increasing growth rate, the country was declared the World’s BPO capital in 2010. Among India, Malaysia, Indonesia, Bangladesh, and western countries, Philippines ranked as the top destination for business seekers. In 2011, the GDP increased to 4.9% and in 2012 it touched 5.4%. Generating 900,000 job opportunities and revenue of $15.5 billion, it became one of the fastest growing and biggest industry in the country. Unfortunately, in 2017 the country saw a small slump and did not reach its expected figures in terms of generating new job opportunities and its annual growth rate of 17%. However, experts and economists have predicted the industry to bounce back from the slow down in 2018. Even today, it is one of the largest sources of employment, foreign earnings and a big contributor to the country’s economy.

Call center services in the Philippines and the BPO industry has come a long way. The massive growth and expansion have broadened the scope and industrial capabilities of the BPOs. Asiatel Outsourcing does not only specialize in call center services, but also provides bespoke solutions for data entry services, creative services, multilingual services, finance and accounting services, managed operations, NOC outsourcing services, Wholesale Telecom outsourcing, VoIP technical support, and helpdesk outsourcing services. Contact us today, if you are looking for a trusted outsourcing partner.