As rising labor costs and chronic skills shortages come to define Western markets, businesses are looking overseas to establish lead generation call centers. Saving potentially thousands in annual staffing costs and gaining better-qualified staff, such moves aren't just common; they're also a no-brainer.
Enter the Philippines. The East Asian archipelago is a popular destination
for businesses, renowned internationally as a customer acquisition and retention
The benefits of setting up a Philippines call center to handle your lead generation efforts are obvious. With reduced labor and operations costs, businesses can afford to invest in cost savings – such as price reduction (one method to combat inflation).
Learn how to outsource your lead generation to the Philippines and why it's a hotspot for international business below.
Key Statistics About Philippines Call Centers
- English is a common language in the Philippines, with around 80% of the population fluent. In 2020, it ranked 27th globally on the English Proficiency Index.
- It is estimated that 1.3 million Filipinos were employed full-time in call centers, earning the country the moniker "Call Center Capital of the World."
- The number of call center jobs is expected to increase to 2.3 million by 2028.
- Worldwide, Filipino agents are admired for their empathy, hospitality, and strong work ethic.
- Between 2012 and 2024, industry revenue from call centers in the Philippines rose from $5.86 billion to $7.96 billion.
Why Set Up a Philippines Call Center?
Labor costs are lower in the Philippines primarily due to the country's
massive workforce. United Nations data indicated that the Philippines had a
population of 113,393,246 people in 2023. With an extensive history in the
business process outsourcing (BPO) industry (the first call center was
established in 1992), much of its workforce is highly familiar with and
well-trained in taking control of these services.
Small wonder that from 2019 onwards, industry analysts expect the number of Filipinos working in BPO to increase by 8% to 10% per annum. In fact, the nation is estimated to hold 10% to 15% of the global BPO market.
So, why does everyone choose the Philippines? Here are some reasons:
- Local Government Support. In the Philippines, local governments incentivize and support the establishment of lead generation call centers and other BPO enterprises. The Special Economic Zone Act in 1995 led to the creation of the Philippine Economic Zone Authority (PEZA): a specialized agency that offered tax and financial incentives to foreign investors to establish back-office operations in the nation.
- New legislation. In the years since, the Philippines government passed the Data Privacy Act of 2012, which ensured outsourcing companies complied with international data security standards (helping the country's competitiveness), and the Department of Information and Communications Technology Act of 2015, which guaranteed universal access to secure ICT services. This last piece of legislation accelerated the country's BPO sector and improved the technology, infrastructure, and systems Philippine call centers rely upon. Finally, the Telecommuting Act allowed for flexible and remote work arrangements for employees while retaining tax and financial incentives for corporations.
- Cost savings. Few smaller companies appreciate the potential cost savings from establishing a lead generation call center in the nation. Consider that the average customer service worker in the US earns $35,984 annually compared to around $4,453 annually for a Filipino worker.
- Strong work ethic. As mentioned, Filipino culture prioritizes hard work and hospitality – key skills in the lead generation sector. Understanding a lead's requirements and working to fulfill them not only improves conversion rates but also bolsters customer loyalty.
How to Outsource Lead Generation to the Philippines
Step 1. Determine Your Objective
If you want a successful transition to the Philippines, you must clearly define your lead generation goals. Consider these questions:
- Are you looking for a specific number of leads?
- Is there a particular conversion rate you require?
- Who is your target audience? Think demographics, characteristics, industries, etc.
Providing your prospective Philippines call center with all this information ensures they know what you expect. Otherwise, your BPO partners won't know what standards to meet when establishing operations.
Step 2. Research and Shortlist BPO Companies
In the Philippines, you've got extensive choices for lead generation call
centers. You'll want to research, contact, and even visit companies with a
proven track record in lead generation.
You can also use platforms like Glassdoor and Clutch to identify BPO companies. Read reviews, assess client testimonials, and get a feel for a particular company's reputation.
List the top-performing BPOs to streamline your evaluation process.
Step 3. Evaluate Your Shortlist
You've now got a list of top candidates. Rank the final contenders based on your company's needs and a few specific factors. These can include:
- English language proficiency
- Number of calls they can handle
- Data security features
- Lead generation expertise
If you're unsure about these factors, such as English language proficiency, organize interviews or linguistic tests. You'll also want to discuss their process, read their standard operating procedures (SOPs), and see what systems they use, such as modern CRM tools and robust data security measures.
Step 4. Request Proposals and Conduct Due Diligence
Companies should submit detailed proposals explaining how they'll help your business. Proposals should include:
- Pricing models
- Estimated results
Reading these proposals lets you see how these BPOs will achieve your objectives. Also, it requires information on employee turnover rates and financial stability to ensure you select a stable company capable of maintaining the partnership long-term.
Step 5. Negotiate the Contract
After you select your BPO partner, it's time to negotiate. The contract
should clearly stipulate the pricing and terms of the partnership. Ensure there
are no hidden fees or ambiguities that could lead to problems further down the
In addition, now is the time to define your key performance indicators (KPIs) related to your initial objectives. Common KPIs for lead generation call centers include:
- Cost-per-Lead (CPL): The amount spent to acquire a single lead, calculated by dividing the total campaign cost by the number of leads generated.
- Conversion Rate: The percentage of leads that take a desired action, such as becoming a customer or signing up.
- Lead Quality: An assessment of a lead's potential value or likelihood of resulting in a sale.
- Lead-to-Sale Ratio : The percentage of generated leads that directly result in a sale.
- Contact-to-Lead Ratio: The percentage of calls made by a call center that become qualified leads.
- Time-to-Conversion: The average time taken to convert a lead into a customer or desired action.
- Lead Response Time: The average time the call center takes to follow up or respond to an interested lead.
- Cost-per-Conversation: The cost associated with each interaction made by the call center, regardless of the outcome.
Step 6. Training and Campaign Launch
Even partnering with an experienced BPO, like a Philippines call center,
still means you need to provide comprehensive training on your product or
service. Your team should display accurate knowledge about your brand for the
best results, especially in lead generation.
After all, you want to maximize your chance of conversions.
Luckily, by choosing to outsource to this island nation, you'll have an experienced team of trained professionals ready to take the information you provide and turn it into a steady stream of sales. At Loop, we've got a track record of tailoring our services to your requirements, whether selling to consumers (B2C) or businesses (B2B).
Once training is complete, you can launch your campaign. Your new lead generation call center can get to work contacting everyone from ice-cold leads to former customers.
Step 7. Monitor and Revise
Monitoring is critical to ensure you receive the best return on investment
(ROI). Use the metrics listed in Step 5. to track performance. Organize routine
meetings – whether weekly or bi-weekly – to discuss these metrics and work
together to improve the campaign's performance.
If, for example, a significant number of people decline to take the next action (e.g., speak to a salesperson), see how you can improve salesmanship or alter the current script to increase lead generation.
There's little doubt that Filipinos are world experts in running lead
generation call centers. With an extensive workforce of trained professionals
and decades of collective experience, it's a small wonder it's called the "Call
Center Capital of the World."
Follow the tips and steps above to ensure your outsourcing process goes smoothly. If you're looking for a renowned Philippines call center operator to maximize your sales with lead generation, trust Loop.
Our agents are trained to contact and qualify inbound and outbound leads , ensuring you get not just leads but those most likely to convert. Ready to amplify your lead generation? Contact us today. We're ready to help.