Opening a call center in the Philippines is not anything that has not been done before. Thousands of outsourcing companies are already providing services in multiple industries.
That’s why opening a business process outsourcing (BPO) or a call center business in the Philippines may become stressful and challenging if you do not investigate the legal and financial aspects of initiating a business operation. The process becomes even simpler if you are well aware of the dos and don’ts of business initiation in the Philippines.
We have compiled this article for investors, and business owners who are curious to learn about starting a call center business in the Philippines and compliance with legal laws.
What is a Call Center Business?
A call center business offers customer interactions mainly through phone calls, emails, and live chats. The centers range from customer support, technical assistance, telemarketing, and order processing. Companies can highly improve efficiency in core operations while satisfying customers by outsourcing these functions to BPO companies like Workstaff360 at an affordable price.
Top Countries that have the largest number of Call Centers in the world:
- Philippines.
- India.
- South Africa.
- Brazil.
- Poland.
- Mexico.
- Argentina.
Why the Philippines is the Right Place to Invest in Call Centers?
Nexford University has reported that around 1.3 million people from the Philippines were employed in over 1000 BPO companies in 2019. The Philippines has earned its reputation as the “call center capital of the world” due to several compelling factors:
- Skilled Workforce: The country has a large pool of English-speaking professionals with strong communication skills and cultural affinity to Western markets. They are as good as any native professional with a strong command of the English language to communicate effectively.
- Low Labor Cost: Wages in the Philippines are much lower than those of Western countries. This reduces a business’s operational expenditure in the USA without compromising the quality of services offered. You can pay less for the same level of quality and skills, and save a big amount each month.
- Complete Government Support: The Philippine government also extends its full support for BPO through incentives and the development of infrastructures to make it easy to put up operations.
How to Start a Call Center Business in the Philippines
As an entrepreneur or a business person, you should not try new things that don’t have calculated risks. Instead, you should follow pre-scripted plans and procedures, including a step-by-step guide from planning to setting up call centers and everything in between. Let’s begin.
Step 1: Conduct Market Research
You must be clear about the ins and outs of this business before the establishment of your call center. You can conduct thorough market research to understand your target audience, competitors, and industry trends. This will help you identify niche markets and customize your services accordingly.
Step 2: Create a Business Plan
You must develop a comprehensive business plan that outlines your business model, services offered, marketing strategies, financial projections, and operational structure. A well-defined plan will serve as a roadmap for your venture and is essential for securing funding. Businesses with a proper plan have a 30% better chance of growth in the future.
Step 3: Register Your Business
Like most other countries, the Philippines also has a set of legal requirements for businesses to observe and implement the state policies and provide security measures both for the employees as well as the employers. To operate in the Philippines a legitimate business, you have to register your business with the governmental agencies that control your industry.
You should, therefore obtain any permit or license required by the Department of Trade and Industry or Securities and Exchange Commission and as well as the local government units. Furthermore, Own Property Abroad, states that registration with the Bureau of Internal Revenue (BIR) is mandatory to start a BPO company in the Philippines.
If you register your business with the Philippine Economic Zone Authority (PEZA) you can enjoy a lot of incentives and benefits related to exports and imports. Additionally, PEZA manages and facilitates foreign investments inside special economic zones by offering incentives such as tax holidays, duty-free importation, and simplified documentation procedures. In short, if you register for PEZA it also benefits your company a lot in terms of investments, taxation, and more.
Step 4: Set Up Infrastructure
Infrastructure is very important for client and employee satisfaction. It improves productivity and avoids unnecessary delays. You should invest in the necessary technology and infrastructure required for your call center operations. This includes:
- Telephony Systems: Implement VoIP technology for efficient communication.
- CRM Software: Use customer relationship management tools to manage client interactions.
- Monitoring Tools: Building a call center in the Philippines does not mean you should live in the Philippines as well. You can easily monitor and manage your employees using some monitoring tools like Hubstaff, Basecamp, Trello, and many more.
- Office Accessories: You have to provide agents with computers, headsets, and ergonomic furniture.
Step 5: Hire Skilled Staff
You must have heard that teamwork makes dreams work. Therefore, you will need to recruit a team of qualified agents who possess excellent communication skills and customer service experience. You may also consider hiring specialized roles such a hire a chat support assistant in the USA or outbound calling agents from platforms like WorkStaff360 to improve service offerings.
Step 6: Train Your Employees
Employees with proper training and hands-on experience have a higher satisfaction rate than untrained professionals. You must provide comprehensive training programs that cover company policies, customer service skills, product knowledge, and technical support. Regular training sessions are important for maintaining high service standards and client satisfaction.
Step 7: Implement Quality Assurance Measures
The most important thing and challenging in a business is delivering consistent quality. You should clearly define and implement quality control processes to monitor agent performance and ensure customer satisfaction. In this regard, regular feedback sessions and performance evaluations can help maintain service excellence. WorkStaff360 uses Basecamp and tracking tools to monitor their VA’s activity and track their daily performance using End of the Day reports.
Step 8: Market Your Services
Digital marketing is the best way to promote your product and services and reach a broader audience. You should promote your call center through digital marketing strategies such as SEO, social media advertising, and content marketing.
You should highlight your unique selling points—such as cost-effectiveness and skilled workforce—to attract potential clients.
Step 09: Build Client Relationships
If you want to grow your business, you should build strong relationships with clients by delivering exceptional service consistently. Regular communication and giving feedback to your team will help you adapt to client needs and improve service delivery.
How Much Does It Cost to Open a Call Center Company in the Philippines?
The startup cost to build a call center ranges from $50,000 to $200,000 or more, as the costs completely depend on the location, scale of operations, technology, and levels of employees in the case. Secondly, operational costs will contribute to the overall budget of the venture. Therefore it’s better if you do your research before jumping into this business.
Hire the Best Virtual Assistants from WorkStaff360!
There is an opportunity for entrepreneurs to open call centers in the Philippines, which gains much from the developing BPO industry. Along with this skilled workforce and cost advantages, it is said to be one of the most competitive destinations when operating an outsourcing business, given that all these support the current policies of the government.
For those seeking additional support in staffing or more specialized roles such as chat support assistants or outbound calling agents, working with platforms such as WorkStaff360 is sure to provide access to top talent combined with operational efficiency.
