How to Start a Call Center Business in the Philippines?

Senior Writer: Sindhu Bharathi

Reading Time: 9 Minutes

Published : December 21, 2023

Call centers serve as centralized units handling incoming and outgoing calls, emails, messages, and other forms of communication. In fact, 77% of customers view a business positively if the customer service is proactive. This requires seamless communication between customers and businesses.

This blog aims to explore the essence of call centers, their types, and crucial software features that streamline their operations.

What is a Call Center?

A call center is a centralized department or facility equipped to manage inbound and outbound communications. These communications can encompass customer inquiries, technical support, sales inquiries, order processing, and more. Typically, call centers employ a team of agents who handle these interactions using various communication channels like phone calls, emails, live chat, or social media platforms.

Expert Advice

"When hiring and training call center staff, emphasize emotional intelligence and soft skills training in addition to technical knowledge. Exceptional customer service requires agents to demonstrate qualities like empathy, patience, active listening, and problem-solving. Prioritize hiring individuals with a natural flair for customer interactions and focus training on strengthening their soft skills."

What are the Various Types of Call Centers?

As call centers cater to different industries, they are also operated in different ways. Below are the main types of call centers available in the marketing.

1. Inbound Call Centers

Inbound call centers primarily focus on receiving incoming calls from customers seeking assistance, support, or information related to products or services offered by a company.

Agents in inbound call centers handle a range of tasks, including customer inquiries, technical support, order processing, billing inquiries, reservations, and more. The key goal is to provide effective solutions and support to callers. 

These call centers use technologies like Automatic Call Distribution (ACD) to route calls to the most suitable agent, Interactive Voice Response (IVR) systems for self-service options, and CRM integration to access customer information for personalized assistance.

2. Outbound Call Centers

Outbound call centers involve agents who proactively initiate outgoing calls to customers. Their primary objectives include sales calls, telemarketing, conducting surveys, appointment reminders, and follow-ups.

Agents in outbound call centers engage in activities such as lead generation, cold calling, customer follow-ups, market research, and conducting customer satisfaction surveys.

3. Blended Call Centers

Blended call centers combine both inbound and outbound services. They offer versatility, enabling agents to handle incoming calls while also conducting outbound activities.

Agents in blended call centers seamlessly switch between handling incoming inquiries and making outbound calls based on the call volume and priorities. These call centers utilize a balanced mix of inbound and outbound call center software features, including ACD, IVR, CRM integration, and predictive dialers.

4. Virtual Call Centers

Virtual call centers operate remotely with agents working from dispersed locations. They rely heavily on cloud-based technologies to facilitate seamless communication.

Remote agents in virtual call centers handle various customer service tasks, such as addressing queries, providing technical support, processing orders, and offering assistance across multiple communication channels.

Virtual call centers leverage cloud-based call center software, ensuring remote access, flexibility, and scalability. They employ tools for call routing, performance monitoring, and real-time reporting accessible from any location.

5. Offshore and Onshore Call Centers

Offshore Call Centers

• Purpose: Offshore call centers are located in different countries, often chosen for cost-effectiveness due to lower labor costs.
• Functions: They provide services like customer support, technical assistance, sales, and back-office operations to companies in other regions.
• Features: Offshore call centers prioritize language skills, cultural understanding, and time zone compatibility to cater effectively to their client base.

Onshore Call Centers

• Purpose: Onshore call centers are situated within the same country as the business they serve.
• Functions: These call centers focus on delivering customer support, sales assistance, and technical services while emphasizing familiarity with local languages, cultural nuances, and customer preferences.
• Features: Onshore call centers aim for higher customer satisfaction through better alignment with local markets and customer needs.

6. In-house Call Centers

In-house call centers operate within the premises of the company they represent. They handle customer service inquiries, sales support, technical assistance, and other related tasks while being directly supervised and managed by the company. In-house call centers have direct access to company resources, allowing tighter integration with internal systems and policies for enhanced service delivery.

10 Call Center Software Features you Need

Before selecting a call center software, you need to look into the features as well. Below are the top 10 call center features you need.

1. Automatic Call Distribution (ACD)

ACD is a core feature that intelligently routes incoming calls to the most appropriate and available agent based on predetermined criteria. It ensures quick and efficient handling of customer inquiries by directing calls to agents with relevant skills or specialties.

Benefits:

• Reduces wait times for customers.
• Optimizes agent productivity by matching callers with the right agents.
• Enables efficient call management and distribution.

2. Interactive Voice Response (IVR)

IVR systems use pre-recorded voice prompts and menu options to automate call routing and provide self-service options to callers. It allows customers to navigate through various options and reach the appropriate department or information without agent assistance.

Benefits:

• Offers 24/7 accessibility for customers.
• Reduces call volume by handling routine inquiries.
• Improves efficiency by directing callers to the right resources.

You May Also Read : What is IVR (Interactive Voice Response) and How it Works?

3. Call Monitoring and Recording

This feature enables supervisors and managers to monitor live calls in real-time and record conversations for quality assurance, training purposes, compliance adherence, and resolving disputes or misunderstandings.

Benefits:

• Ensures quality control and adherence to company standards.
• Facilitates agent training and performance improvement.
• Provides valuable insights into customer interactions.

4. CRM Integration

Integration with Customer Relationship Management (CRM) software allows agents to access customer profiles, history, preferences, and past interactions during live calls. It provides a holistic view of the customer, enabling personalized and informed conversations.

Benefits:

• Enables personalized customer interactions.
• Improves resolution times by accessing relevant customer information.
• Enhances overall customer satisfaction and loyalty.

5. Real-time Analytics and Reporting

Real-time analytics and reporting tools offer insights into call metrics, agent performance, call volumes, customer wait times, and service levels. They provide a comprehensive view of call center operations and performance.

Benefits:

• Facilitates data-driven decision-making.
• Identifies trends, bottlenecks, and areas for improvement.
• Helps in adjusting staffing levels based on call volume patterns.

You May Also Read : Call Center Reporting: A Comprehensive Guide

6. Multi-channel Support

Call center software that supports multiple communication channels such as voice, email, live chat, social media, and SMS enables seamless interaction with customers across various platforms.

Benefits:

• Meets customers’ preferences for communication.
• Provides flexibility and accessibility across diverse channels.
• Increases customer engagement and satisfaction.

7. Call Queuing

Call queuing manages incoming call volume during peak times by placing callers in a queue until an agent becomes available. It ensures fair handling of calls and reduces the likelihood of missed inquiries.

Benefits:

• Prevents call abandonment and holds customers in line effectively.
• Optimizes agent availability by managing call flow.
• Maintains customer satisfaction by reducing wait times.

8. Remote Access and Mobility

Remote access features enable agents to work from anywhere, accessing the call center software and necessary tools via the internet or mobile devices. It ensures business continuity and flexibility for agents.

Benefits:

• Facilitates a distributed workforce and remote agent management.
• Enables flexibility and scalability in staffing.
• Enhances operational efficiency and service availability.

9. Outbound Dialer

Outbound dialing tools automate the process of making outgoing calls for sales, follow-ups, surveys, or appointment reminders. They maximize agent productivity by dialing multiple numbers simultaneously and connecting agents only to live calls.

Benefits:

• Increases the efficiency of outbound calling campaigns.
• Optimizes agent time by eliminating manual dialing.
• Facilitates higher contact rates and better campaign results.

10. Integration with Knowledge Base

Integration with a centralized knowledge base or information repository equips agents with instant access to relevant resources, FAQs, product information, and troubleshooting guides during customer interactions.

Benefits:

• Empowers agents to provide accurate and timely solutions.
• Reduces resolution times and escalations.
• Ensures consistency and accuracy in customer support.

Implementing call center software with these essential features enhances operational effectiveness, elevates customer experiences, and contributes to the overall success of the call center in delivering exceptional service.

How do Call Centers Make Revenue?

Call centers generate revenue through various models and strategies tailored to their services, clientele, and industry. The primary revenue generation methods employed by call centers include:

1. Service Fees or Hourly Rates

Call centers often charge service fees based on the time agents spend handling calls or providing services. This model typically involves charging clients an hourly rate for each agent engaged in handling customer inquiries, sales, technical support, or other services.

2. Pay-per-Call or Pay-per-Service

Under this model, call centers charge clients for each completed call or service provided to customers. It’s a transactional-based pricing structure where the client pays a predetermined amount for every successful call handled or service delivered.

3. Revenue Sharing or Performance-based Models

Some call centers engage in revenue-sharing models or performance-based agreements with clients. In this approach, the call center and the client agree upon specific performance metrics or targets. Revenue is shared based on achieving predefined goals or a percentage of the generated sales or revenue.

4. Subscription-based Models

Some call centers offer subscription-based services where clients pay a recurring fee for access to a set of services or a specific number of hours per month. Clients subscribe to a service package that includes a predetermined number of hours or services per month. Call centers provide dedicated support or services based on the subscription level chosen by the client.

5. Upselling and Cross-selling

Call centers engaged in sales or marketing often earn revenue through upselling or cross-selling products or services to existing customers or leads. Agents focus on persuading customers to purchase additional products or services related to their initial purchase or inquire about complementary offerings during customer interactions.

6. Outsourced Projects and Contracts

Call centers may bid for outsourced projects or contracts from companies seeking specific services like customer support, telemarketing, or technical assistance. Call centers compete for projects or contracts through bidding processes. Successful bids result in contractual agreements, and revenue is earned based on the terms of the contract or project scope.

Steps Involved in Starting a Call Center in the Philippines 

Starting a call center in the Philippines involves several crucial steps and considerations due to the country’s booming business process outsourcing (BPO) industry. Here are the detailed steps for how to start a call center in the philippines:

1. Conduct Market Research

Before diving into establishing a call center, conduct comprehensive market research to understand the industry landscape, demand for services, potential clients, and competition in the Philippines.

Steps:

• Analyze the BPO market trends, growth projections, and areas of opportunity.
• Identify target industries or sectors that require call center services.
• Assess the demand for specific services (inbound, outbound, tech support, etc.) in the market.

2. Develop a Business Plan

Create a detailed business plan outlining your objectives, target market, services offered, financial projections, marketing strategies, and operational plans.

Steps:

• Define the mission, vision, and goals of the call center business.
• Outline the organizational structure, roles, and responsibilities.
• Detail the budget, funding requirements, and revenue projections.
• Determine the location of the call center and its scalability.

3. Choose the Right Location

Selecting the appropriate location for your call center in the Philippines is crucial. Metro Manila and Cebu are popular destinations due to their established BPO hubs.

Steps:

• Evaluate locations based on infrastructure, connectivity, availability of skilled labor, and operational costs.
• Consider proximity to universities and colleges for access to a pool of skilled graduates.
• Review government incentives and tax benefits offered in specific regions for BPO companies.

4. Register Your Business

Register your call center business with the appropriate government agencies and obtain the necessary licenses and permits to operate legally.

Steps:

• Register the business with the Securities and Exchange Commission (SEC) for corporations or Department of Trade and Industry (DTI) for sole proprietorships.
• Secure a Mayor’s Permit from the local government unit where the business is located.
• Obtain tax identification numbers and necessary clearances from the Bureau of Internal Revenue (BIR).

5. Set Up Infrastructure and Technology

Establish the necessary infrastructure, office space, and technology to support call center operations efficiently.

Steps:

• Lease or purchase office space suitable for call center operations with proper facilities for agents and administrative staff.
• Install necessary IT infrastructure, high-speed internet, servers, and telephony systems.
• Acquire call center software, CRM systems, and other tools essential for managing calls and customer interactions.

6. Hire and Train Staff

Recruiting and training skilled employees is critical for the success of a call center. The Philippines has a large pool of English-speaking, talented individuals for the BPO industry.

Steps:

• Develop a recruitment strategy to attract qualified agents, team leaders, trainers, and support staff.
• Conduct comprehensive training programs to equip agents with necessary communication skills, product knowledge, and call handling techniques.
• Emphasize cultural sensitivity and customer service excellence in training modules.

7. Adhere to Regulatory Compliance

Ensure compliance with labor laws, data privacy regulations, and industry standards in the Philippines to avoid legal issues.

Steps:

• Familiarize yourself with the Philippine labor laws, including minimum wage requirements, working hours, and employee benefits.
• Implement data security measures compliant with the Data Privacy Act of 2012.
• Stay updated on industry regulations and standards for call center operations.

8. Establish Client Relationships

Build relationships with potential clients or companies seeking call center services in the Philippines.

Steps:

• Develop a marketing and sales strategy to reach out to potential clients locally and internationally.
• Attend industry events, conferences, and trade shows to network and showcase your services.
• Highlight the advantages of outsourcing to the Philippines, such as language proficiency, cost-effectiveness, and skilled workforce.

9. Launch and Monitor Operations

After setting up the call center, monitor operations closely to ensure smooth functioning and quality service delivery.

Steps:

• Conduct a soft launch to test systems, processes, and workflows.
• Implement quality assurance measures and monitor key performance indicators (KPIs) regularly.
• Collect feedback from clients and customers to identify areas for improvement.

Conclusion 

With a well-executed strategy and a commitment to delivering exceptional customer experiences, a call center in the Philippines holds the promise of becoming a thriving and lucrative venture within the vibrant BPO industry.

Sindhu Bharathi

Sindhu Bharathi is an inquisitive learner and prolific B2B/SaaS writer with experience of working in diverse industries. She has a demonstrated history of delivering well-researched, original content. From generating long-form articles, blogs, and white papers to social media copies, she pivots her skills to resonate with the medium and deliver compelling content that has the power to captivate the audience.

Updated : March 7, 2024

Let’s Stay in Touch

Subscribe to our newsletter & never miss our latest news and promotions.

Email Address*

+15K people have already subscribed