The Philippines has officially surpassed India as the number one destination for U.S. call center business. The growing preference for demonstrates the maturity of the outsourcing market, as executives adjust priorities away from pure cost savings in favor of value. The cost of an agent's monthly wages is about 26,000 pesos (or $600), which is about 10,000 pesos more than the average Filipino family earns each month. This number is higher than what companies could pay for labor in India, but executives are starting to see the value in spending a little more.
"US companies are reluctant to discuss their outsourcing strategies, but privately some executives acknowledged that early on, they focused primarily on saving money. But as they gained experience in different countries, they realized that was not the best strategy." -The Economic Times
Culturally, the Philippines is a much better fit to the U.S., with a better knowledge of American English idioms. Filipinos learn U.S. English beginning in the first grade, watch popular TV shows like Friends from a young age. There's also the benefit of a stronger infrastructure in the Philippines, which leads to a lower frequency of blackouts and allows companies to spend much less on back up generators and diesel fuel. The Indian outsourcing industry as a whole still earns about 10 times more annually, but the revenue is growing in the Philippines. According to Salil Dani of the Everest Group, the call center business is growing at 25-30% annually in the Philippines compared with 10 to 15% growth in India.
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