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Philippines Call Centers Overtake India

New submitter ajitk writes "This year, call centers in the Philippines employed 50,000 more people than those in India. From the New York Times article: 'More Filipinos — about 400,000 — than Indians now spend their nights talking to mostly American consumers, industry officials said, as companies like AT&T, JPMorgan Chase and Expedia have hired call centers here, or built their own. ... Nevertheless, the financial benefits of outsourcing remain strong enough that the call center business is growing at 25 to 30 percent a year here in the Philippines, compared to 10 to 15 percent in India. In spite of its recent growth, the Philippines is a much smaller destination for outsourcing more broadly — India earns about 10 times as much revenue from outsourcing.'"

17 of 165 comments (clear)

  1. Curse of the british hahaha by unity100 · · Score: 4, Interesting

    They used india as a colony, and while trying to inject their culture and keep indians occupied by making school kids memorize logarithmic tables (yes they really did that back in the earlier centuries), they also taught them english.

    and now india is not only becoming a superpower, but taking entire industries away from angloamerican sphere. talk about what goes around comes around.

    1. Re:Curse of the british hahaha by Anonymous Coward · · Score: 5, Funny

      Oh no, please don't let India take our customer phone support industry! So many American kids grew up wanting to tell people how to reset their wireless routers for minimum wage and now those dreams have been dashed.

    2. Re:Curse of the british hahaha by Anonymous Coward · · Score: 3, Insightful

      Tell that to the 8-10% of the unemployed in your country.

    3. Re:Curse of the british hahaha by GIL_Dude · · Score: 4, Insightful

      You know, you hit the nail on the head. I have 21 years with my company and I personally started on a help line for Point Of Sale equipment in the Credit Card dept (proprietary card), moved from there to LAN administrator, and on to programming and system images. That POS help line? It is in Manila now. The Credit Card department? Outsourced. Oh, there is still a card with our company name on it. It just isn't handled at all by our company anymore. I wouldn't have even been able to start with the company today without moving overseas and working for peanuts. Low Cost Geography they euphemistically call it. In the same way those of us who are technical experts in the design departments no longer have any internal source to draw on for new hires. The lower end jobs where the best of the workers could have moved up are all overseas. The middle of the road jobs are mostly gone too. It's only the top end design groups that are left in the US. And we have nobody to pull from when folks retire, switch jobs, or get laid off. We supposedly hire from colleges, but those that come in are woefully unprepared. They would have been fine after spending a couple of years in those middle tier jobs - but they just don't cut it for the ones where you need a lot of experience. They will someday, but not right away. It makes long term succession planning for your group more a "rob from Peter to pay Paul" game of musical chairs where you try to poach from other groups.

    4. Re:Curse of the british hahaha by Kjella · · Score: 4, Interesting

      As opposed to what, some other language becoming the world language? As little as 20 years ago, knowing English was not that important. "Long distance calls" was something freakishly expensive, air travel fairly exotic and expensive, finding an English-language newspaper was only in specialty shops mostly for foreigners living abroad. Sure, for some limited fields in international trade, science or technology it could be important but in general it was not, which is why nobody speaks Latin anymore. People learned the languages of their bordering countries as that was what would get most use of.

      With the Internet, it's become much more useful to know a "world language" and English has a pretty good head start. Granted the Internet is older but WWW didn't arrive until 1990 and it didn't grow big until the dotcom days. Not just for the job opportunities but because you actually can read international news, you can read the English Wikipedia - which is by far the biggest and best, you can talk to people all over the world cheaply and easily. With it, international trade and collaboration has exploded as people can actually work in distributed teams with email, video-conferencing, common source repositories and so on. The advantages are so big it'd happen some way.

      In the short run, yes of course removing the language barriers are disadvantageous to some, but in the long run it's a huge benefit to mankind if we can collaborate as one. Languages have been sort of a natural protectionism, shielding us from international competition. What we in the west is really getting a taste of is the free market. And the US got the least reason of all to complain about that.

      --
      Live today, because you never know what tomorrow brings
  2. Re:My experience with Philippines by ColdWetDog · · Score: 4, Insightful

    I work with a number of Filipinos on a daily basis - some of them are quite fluent, others less so.

    The times I have worked with Philippines-based call centers (Adobe, I'm looking at YOU you slimy parthogenic mutant spawn of a perverted invertebrate) between the poor connection, the very limited knowledge that the person had and the accent, I had a very, very unpleasant experience. The employees were, however, unfailingly polite.

    It's not so much the language barrier, although at times that is a problem - it's the whole concept of a complex, poorly thought out, poorly executed process that makes my blood pressure go up every time I even think about calling.

    Which may be exactly how they planned it.

    --
    Faster! Faster! Faster would be better!
  3. Underwater cable by srussia · · Score: 4, Funny

    I was a guest at Eastern Telecom's company beach resort in the northern part of country the some 15 years ago. As I waded into the nice surf, I snagged my foot on a cable.

    "That's the country's only cable link to the outside world... goes to Hong Kong," explained one of the company guys.

    I hope things are better now.

    --
    Set your phasers on "funky"!
  4. in before the idiots by circletimessquare · · Score: 5, Insightful

    1. The USA is popular in the Philippines. So be nice to Filipinos. Saying lame jokes about sex tourism and mixing "f"s and "p"s just makes you an asshole, and continues the worst stereotypical impressions of ugly Americans abroad. Be nice or shut the fuck up.

    2. Those working in the call centers will usually speak perfect idiomatic American English. No Taglish (Tagalog and English) or "promdi" ("from the province").

    2. If you sense the slight Filipino accent, say "mabuhay" (hello) and "salamat" (thank you). It will be sly and appreciated, and you'll probably get better help.

    4. If you don't like the idea of jobs going to Filipinos that should go to Americans, then point your anger at the American Corporation who moved the call center there, not the person on the phone, they didn't make the decision.

    And then finally, point your anger at yourself: Americans will get expensive degrees in French poetry, then work at McDonalds with hefty student loans. Filipinos will major in nursing, get fast tracked to entry to the USA, get a signing bonus and a fabulous salary and the chance to work wherever they want. Because there is a shortage of nurses in the USA. Because Americans don't want to touch bedpans.

    The enemy is yourself and your bad attitude, not the hardworking and the good people from the Philippines.

    Now bring in the typical, inevitable, ugly American stupidity in the comments.

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    1. Re:in before the idiots by circletimessquare · · Score: 3, Informative

      intolerance of intolerance is not the same thing as intolerance itself

      --
      intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
    2. Re:in before the idiots by yeshuawatso · · Score: 3, Insightful

      As someone who has and still works in the call center industry, let me say that it's not about Americans not wanting call center jobs, it's about the costs of low level call center work. For example, if you're a credit card company, you can train a low-wage non-American to do the simple stuff like tell you your balance and available credit, accept a payment, or reissue you another card. But the more complicated stuff will come back on-shore in smaller call centers. Things like credit card disputes, fraud management, and more common sales work.

      It's not about finding just cheap labor, but about finding cheap specialized labor. The best part about offshoring is the added benefit of attracting highly skilled and intelligent workers on the cheap. But add American and British culture in the mix and it becomes a little more difficult for the really cheap labor from degree holding Indians or Filipinos to understand cultural cues. It's part of the reason why those who make the mistake of placing Level 3 support in these countries where cultural miscommunication occurs through lack of training and little value of the customer's time causes offshoring to have a bad name.

    3. Re:in before the idiots by circletimessquare · · Score: 5, Interesting

      I actually find that the gender neutral nature of the Visayan and Tagalog languages to be a mark of cultural superiority.

      Basically, there is no differentiation between male and female in the language. Filipinos are always saying "his" or "he" when they mean to say "hers" or "she". So this is a language bias towards equality of the sexes, which carries over to being developmentally predisposed towards equal treatment between the sexes. It's a superior language construct. Unlike, for example, Japanese, which has entire verb classes dedicated to the deference of women and underlings to the male/ boss. English is not the worst offender on this topic.

      --
      intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  5. Re:*SIGH* by greenfruitsalad · · Score: 5, Insightful

    I usually find the problem to be in the other direction and not necessarily due to foreign accents. The universal recipe for a support centre is:
    * find the cheapest voip provider
    * find the cheapest headsets
    * find people who claim to speak engrish/taglish/mangrish
    * make them memorise 100 technical questions/answers and 1000 salespitches for additional services
    * pay them 2 peanuts a month (to make them really enthusiastic)

  6. Indian BPOs in the Philippines by sirdude · · Score: 4, Informative

    I'm not sure how extensive they are or if TFA takes this into account, but it should be noted that all the Indian BPO majors have a presence in the Philippines.

  7. Re:*SIGH* by fuzzyfuzzyfungus · · Score: 4, Insightful

    I've certainly caught some phone drones who were either having a bad day, or were plain assholes; but overwhelmingly I find it hard to blame them, rather than the people behind them(who, unfortunately, I have no way of screaming obscenities at...)

    Universally, their English is substantially better than my whatever-it-is-they-speak-there, and given that it is entirely unexpected in low-end phone support for the support guy to have nothing but the script he was given(ie. no access to the product to poke at, much less in the configuration I'm calling about) a fair amount of cluelessness is understandable.

    Now, as for the people with actual decision-making power who decided that this flavor of tech support is good enough, may they be doomed to transcribe the entire library of babel, twice over, while a guy with an incomprehensible accent on the far end of a tin-cans-and-string VOIP link bellows it one character at a time in an ideosyncratic variant of the NATO phonetic alphabet...

  8. Re:*SIGH* by Kleen13 · · Score: 4, Insightful

    Sorry, I have to disagree. From my experience, the enunciation from those who speak Tagalog as a native language and ESL for tech support is much easier to understand. As well, (again, only within my personal experience) I found the Manilla call centers more willing to go the extra mile to resolve the problem at hand, even if it requires a call back from a more experience operator. It's not just scripting, they have people with intimate knowledge of the products. My two cents.

    --
    That sinking feeling deep in your gut when you KNOW you screwed up bad summed up with: {head desk} {head desk}
  9. A Filipino in a call center speaks by Anonymous Coward · · Score: 5, Informative

    First off, I never thought I'd see the day that my country and my industry would make it to slashdot's front page. :-)

    I work in one of the biggest call centers in Manila as part of upper management (hence, this anonymous post). The growth here in the Philippines (of the call center industry) has been astonishing. For my span (total number of employees in my or my subordinates' control) alone, we grew by 1500% in 2 years. This year, projected revenue from outsourcing in the Philippines is projected at around a dozen billion US dollars.

    The article is correct in stating that a typical Filipino will learn American English in first grade (pre-school, in most cases) and that he/she would probably have been indoctrinated in American culture as soon as they first watch Sesame Street or Spongebob in their formative years.

    (This can be both good and bad. For the past few weeks, everybody at work can speak about nothing else except Breaking Dawn. And, as a sidenote, nerds here in the Philippines are almost indistinguishable from their American counterparts, they speak the same language (Klingon, included) and pursue similar pursuits and hobbies outside work and school.)

    I truly believe the key to this growth is not just language and cultural indoctrination, as what TFA has stated.

    First is the inherent culture and attitude. Typically, a Filipino will be extremely polite and accommodating almost to a fault. One of our recurring issues here are call center agents who keep saying "Sir" and "Ma'am" too much and apologize profusely, more so than is warranted. Compare this (and I say this with all due respect) to counterparts in other countries where call center agents have to be reminded to say "Thank you" every now and then. Another would be qualifications. Most Filipinos in the call center industry have, at the very least, a college degree. Finally, the most compelling characteristic, imho, is definitely the work ethic. It is not uncommon for my colleagues to work 12 hour days (without overtime pay) and still commute 2 hours to and from work. Add to that, call center employees, more often than not, work from 9pm to 5am to match US daylight hours. All this for a fraction of what our counterparts get in the west.

    I am quite optimistic that our industry will continue to grow, even with if there is a clamor for jobs to stay Stateside and recent technologies such as Siri. There will always be a need for a human touch when a person picks up the telephone to ask for help. And, even if I am wont to say this, Filipinos are suited for this job, as their counterparts in the west don't seem to want it, or have a disdain for it.

  10. Filipino Call Centers by Whatchamacallit · · Score: 3, Interesting

    First a disclaimer, my wife is an American citizen Filipino immigrant, who surprise, is a nurse! I interact with hundreds of Filipinos both in the USA and abroad on a pretty regular basis. Filipino's love to eat, so there are family friendly parties every week where they feast. There are no left overs, everyone takes something home with them. They cannot possibly get enough pork and they also eat a lot of seafood and rice. They love to sing and always seem to have a karaoke machine at those parties. They all mostly love America. Right after the Japanese bombed Perl Harbor, they bombed and invaded the Philippines (It was an American Coloney). General McArthur had to leave the Philippines when war was declared but he vowed to return to liberate the Philippines from the Japanese. He kept his promise.

    Their accents are not bad at all and they all speak fluent english and many of them can speak spanish too! If they don't speak spanish, they can certainly understand 99% of it. The Philippines was a Spanish colony that the USA won in the Spanish American war. America is responsible for building all their public schools. Their nurses can come the USA and only have to pass the nursing exams. All their college credits are transferable as their schools meet the USA educational standards. It is true that many of them mix up masculine and feminine words that simply don't exist in their native languages. (His/Her, He/ She, etc.). There are millions of Filipino's in the USA. They are truly compassionate and highly skilled. You would be lucky to have a Filipino nurse as you will likely receive exceptional care and true compassion.

    I feel it's about time that outsourcing moves from India to the Philippines. They certainly understand American culture and can speak American English. They have Christian names that you can pronounce. Most of them have a very strong work ethic and they are extremely polite and friendly. Communication is so much easier than with the Indians. More companies should be moving outsourced operations from India to the Philippines or just plain in-sourcing it back to the USA. All those tech savvy American students who cannot get a job, would jump all over a call center job. Course, turnover will always be high, no matter who does the work because it truly is a difficult job. But if a company must outsource than they should seriously consider the Philippines as one of the best to satisfy customers angry with Indian communications.

    In regards to the articles comparison of the American dollar to the Filipino Peso, it is the dollar that is dropping like a rock, and the Peso is more stable. It is not the Philippines that has to worry about the exchange rate, it is America that should be worried.