Earlier this year, the Philippines replaced India as the top global location for offshore call center outsourcing, and the gap is growing larger. A recent article in the New York Times reports that there are now 400,000 call center agents in the Philippines, compared to 350,000 in India. This should come as no surprise to anyone who has spent time in the country.
A Brief History Lesson
In 1898, US president William McKinley signed the Treaty of Paris, ending the Spanish-American War, and annexing the Philippines as a US territory. In a written statement, McKinley addressed the burgeoning opportunity:
“Incidental to our tenure in the Philippines is the commercial opportunity to which American statesmanship cannot be indifferent. It is just to use every legitimate means for the enlargement of American trade; … In view of what has been stated, the United States cannot accept less than the cession in full right and sovereignty of the island of Luzon.”
In 1900, President McKinley sent the Taft Commission to the Philippines with a mandate to legislate laws and re-engineer the political system. The result was a bicameral legislature, Supreme Court, and governmental system similar to that of the United States.
In time, the Philippines reaped massive economic rewards from its relationship with the US. Foreign trade had amounted to 62 million pesos in 1895, 13% of which was with the United States. By 1920, it had increased to 601 million pesos, 66% of which was with the United States.
Improvements in health care reduced mortality rates, and the rule of law limited criminal activity. The educational system was modified, and English became an official language of the islands.
During World War II, the US military presence in the Philippines led the country to become a Western front for Allies battle with Japan. Filipino and American soldiers fought side-by-side, endured the tragedies of the Bataan Death March together, and ultimately helped citizens of the Philippines establish an enduring bond with America.
On July 4th, 1946, the US ceded sovereignty to the Philippines, and the country became and independent nation. The Philippines Independence date is not insignificant. The date illustrates the shared connection between the Philippines and United States.
Today
Many vestiges of the Filipino-American relationship continue to exist. Nearly all Filipinos are fluent in English, enjoy Western culture including music, television, and idolize athletes like Kobe Bryant of the NBA. The cultural immersion has left Filipinos versed with American slang and dialect, comfortable with the language, and experienced in dealing with Americans.
The growth of broadband and internet technology over the last two decades has enabled US businesses to tap into the low cost and Americanized labor force of the Philippines. Offshore call centers have sprouted up on numbers of islands, and customer service agents, virtual assistants, and telemarketers interact with American customers virtually every second of the day. As a result, the Filipino call center industry is growing at 25 to 30 percent a year in the Philippines, compared to only 10 to 15 percent in India.
Outsourcing now represents 4.5% of the Philippines’ overall GDP, and young professionals aspire to land relatively lucrative jobs as call center agents. The enthusiasm for the profession isn’t the only thing that differentiates Filipino agents from their American counterparts: Filipinos take pride in, and enjoy, helping improve customer service in the United States.
A Brief History Lesson
In 1898, US president William McKinley signed the Treaty of Paris, ending the Spanish-American War, and annexing the Philippines as a US territory. In a written statement, McKinley addressed the burgeoning opportunity:
“Incidental to our tenure in the Philippines is the commercial opportunity to which American statesmanship cannot be indifferent. It is just to use every legitimate means for the enlargement of American trade; … In view of what has been stated, the United States cannot accept less than the cession in full right and sovereignty of the island of Luzon.”
In 1900, President McKinley sent the Taft Commission to the Philippines with a mandate to legislate laws and re-engineer the political system. The result was a bicameral legislature, Supreme Court, and governmental system similar to that of the United States.In time, the Philippines reaped massive economic rewards from its relationship with the US. Foreign trade had amounted to 62 million pesos in 1895, 13% of which was with the United States. By 1920, it had increased to 601 million pesos, 66% of which was with the United States.
Improvements in health care reduced mortality rates, and the rule of law limited criminal activity. The educational system was modified, and English became an official language of the islands.
During World War II, the US military presence in the Philippines led the country to become a Western front for Allies battle with Japan. Filipino and American soldiers fought side-by-side, endured the tragedies of the Bataan Death March together, and ultimately helped citizens of the Philippines establish an enduring bond with America.
On July 4th, 1946, the US ceded sovereignty to the Philippines, and the country became and independent nation. The Philippines Independence date is not insignificant. The date illustrates the shared connection between the Philippines and United States.
Today
Many vestiges of the Filipino-American relationship continue to exist. Nearly all Filipinos are fluent in English, enjoy Western culture including music, television, and idolize athletes like Kobe Bryant of the NBA. The cultural immersion has left Filipinos versed with American slang and dialect, comfortable with the language, and experienced in dealing with Americans.
The growth of broadband and internet technology over the last two decades has enabled US businesses to tap into the low cost and Americanized labor force of the Philippines. Offshore call centers have sprouted up on numbers of islands, and customer service agents, virtual assistants, and telemarketers interact with American customers virtually every second of the day. As a result, the Filipino call center industry is growing at 25 to 30 percent a year in the Philippines, compared to only 10 to 15 percent in India.
Outsourcing now represents 4.5% of the Philippines’ overall GDP, and young professionals aspire to land relatively lucrative jobs as call center agents. The enthusiasm for the profession isn’t the only thing that differentiates Filipino agents from their American counterparts: Filipinos take pride in, and enjoy, helping improve customer service in the United States.
So great work for informing us of the possibilities and following a certain path.
TumugonBurahinI really appreciate your hard work an giving us some information and inspiring others to follow.
Thanks so much.
http://24x7direct.com.au
I really didn’t know services like this existed. I could see the value in this would have for a business. I like that you would get to talk to a person all the time. I really can’t stand when I have to hold or talk to an operator, it just seems to take forever.
TumugonBurahin