Call Center in the Philippines
By chubibo
@chubibo (294)
Philippines
May 13, 2008 2:29am CST
call centers here in the Philippines is a fad,fresh graduates are targeting call center because of high compensation compare to any companies..the only question is, why are salaries in different parts of the philippines differ?whereas its the same job that they offer yet they offer lower salaries in provinces...the best example here is in Davao City where salaries are ranging from 7,500(PHP)-10,000(PHP) and in Manila, it ranges from minimum of 12,000(PHP)- 30,000(PHP) the most...the same job offer yet different salaries..
2 people like this
11 responses
@bjcyrix (6901)
• Philippines
13 May 08
Hi! Welcome to myLot. My take on this is that its all about the money. In the rpovinces there are fewer target market and a bit fewer possible customers who will buy. Whereas in Manila, its like the hub of every business transaction in the whole country. Everything goes on in there and there are ltos of potential market that will actually buy. The prioriyt will be more on Manila since thats where the action is and I think they can still sustain the business even if they give huge salaries for their employees. About the fresh graduates, well, the only appeal that I see of the Call Center business is that it pays good and any or all educational backgraounds are welcome. It doesnt matter if your a graduate of Fashion Design, Psychology, Education or any computer/media unrelated course, as long as you can do the job and do it well then you're hired. Thats what I think. Call Center doesnt work for me though, I think of it as real job because you're tied down to your desk and would probably end up in the graveyard shift.
@rogerfederer (81)
•
20 Dec 08
hello bjcyrix,
I find your post very amusing. It may be true for many businesses that Manila is one the biggest business hubs and that you would normally find in the bigger of customers in the urban areas, but this statement would be a little bit off. Let me explain.
Last year, we undertook studies for two call center companies who are operating in the Philippines, each one already having more than 5,000 seats, to put up service operations outside of Metro-Manila, where Davao and Clark were the primary choices. These cities were the preferred locations for operations because compensation for the call center agents can be lower by as much as two to three thousand pesos per month. Why is this so? Prices outside Metro-manila are lower - lower cost of housing, food, and other consumer products. This is referred to as the cost-of-living index or consumer index in economics. Call center companies are always on the lookout for these locations as these places can offer better alternatives for them to set-up business because of the cheaper environment. The primary objective of any business is profit. The lower the salaries, the better for the capitalist. It is as simple as that.
Contrary to your posted views, call centers do not cater to a mass market, nor do they have consumer products where exposure in a metropolis like Manila is very necessary. Call centers get business from the off-shore, big-volume foreign businesses and the customers of these foreign companies even believe that they are actually calling these foreign companies, when in fact, their inquiries and even orders/purchases are being serviced in the Philippines.
A call center may need a nice address for its executive offices, but it may locate its operations in any remote area, even in the highlands of the Himalayas, for as long as the state-of-the-art fiber-optics communications systems would be in place, and there is an assured stream of qualified labor who can speak their language.
Have a nice day.
1 person likes this
@bjcyrix (6901)
• Philippines
23 Dec 08
Hey Mr. Federer,
Thanks for the very informative comment. I was merely speaking on what I think and since you seem more experienced on the matter, as well as backed up by facts on studies, then my opinion is off the mark.
I have seen the kind of set-up that you have described, in the movie "Outsourced". The actual operational building was just an unfinished structure somewhere in the remote areas of India.
Again, thank you for taking the time to educate me as well as the other people who might read this thread. Merry Christmas!^_^
@angelspawn (18)
• United States
13 Jun 08
after graduation, i worked as an industrial engineer first in a manufacturing company here in the Philippines. my take home pay then is only 9k per month. thats back in 2004. i was overworked & underpaid. i would even work during weekends, take home some workload, dont have time to go out. after about 2 years, i decided to try the call center industry. my take home pay doubled, have more time to go out & have fun, have time for my family... been in the call center industry since then... started out as an agent & was promoted after a few months.
i think its not just the pay that attracts fresh grads to this industry. its also the lifestyle. the fact that you can be promoted after a few months only. since you're earning more, you can give more to your family, & you still have enough for yourself. unlike in other industries wherein your salary is just enough to make both ends meet.
@rogerfederer (81)
•
20 Dec 08
True.
I know of a U.P. undergrad who chose not to complete his degree even if he is only one semester shy, because he opted to start working in a call center, initially because all of his friends were there, then he became a Spanish-speaking trainor within three months, and was given a brand-new Mazda 3, then annually sent to Florida for further training, and after 3 years in this top-notch call center, he now lives in an Ortigas Center condo that was bought from his earnings.
No desk job for a fresh graduate can ever beat that.
@chechuva (1275)
• Philippines
9 Jun 08
as far as i know locations of their sites contributes to the salary they give. here in Manila, if you work in Makati, you'll expect that call centers will pay you as high as 20k minimum, as well in Ortigas, Rockwell..
i'd been working a call center before but its located in fairview. its not really a commercial or business place that's why our salary ranges from 12k to 18k..
@icecandies (154)
• Philippines
9 Jun 08
It's because there's a difference between the cost of living. When I transferred to Manila my salary was higher than when I was in the Province. But it didn't make a difference. Yes my salary became higher when I transferred to Manila but it's just enough for me to live in Manila. Things here are so costly. Things that you can buy in the Province worth 5 pesos make that double in manila or sometimes triple.
@borgborg (821)
• Philippines
8 Jun 08
there are a lot of factors why some sites pay more than the other. first is you consider the cost of living. just like your example, if the cost of living in manila is higher compared to the cost of living in davao, it would be unfair if the one who works in davao gets paid more than what the person in manila earns if they're doing the same thing. you also need to consider what kind of call center they are working for. not all call centers are the same. it depends on what account they handle. it is rational for a telephone directory operator (whom you call to get phone numbers) to get paid less compared to a customer service representative working for a bank (whom you call to ask for help regarding applying for a new loan or coming up with a payment plan that best suits you). actually, there are other factors but what i've stated are the most common.
@jherkus (23)
• Philippines
29 Aug 08
The answer is the cost of living, in manila standard of living is really high and all of the company knew that; that's why they pay their employee a high salary but if your going to think about it, it was always the same range of salary because for example transportation and food in manila is way up higher than those in the province.you may check websites about this so that you have your proof on what i said to you..c",)
@rsa101 (38126)
• Philippines
14 May 08
Well I guess it has something to do with the cost of living. In Manila the cost of living is way much higher than those that are living in the provinces. I think that is why most call centers are now trying to expand their operations in the provinces than concentrating here in the metropolis where the cost of living is way much higher than there in the provinces. Eventually it will catch up when in time so be patient and enjoy what you can earn in there at least you wouldn't spend more traveling here in Manila and renting your place here just to be able to earn that high in reality you working there and many who works in here are just the same when it comes to earning.
@TheManager24 (1302)
• Philippines
8 Jun 08
Hi call center peeps.
Various reasons why compensations are different -
1. dictated by the government - dep of labor would have a set of regulations that will push salaries in MNL or first class cities to be higher
2. law of supply and demand - more eligible people are in these cities and companies will pay more just to have them. but if there are a lot of people who can be hired and a few in the demand side, people will work for lower rates
3. competition - more companies - bpo or non-bpo - in these cities, the pool is considered a scarce resource
4. company access strategy - these bpos may charge higher rates to the client in the mnl offices so they can pass the burden of paying higher salary
5. a lot more
in reality, the services may be the same but the environment is different. people working in a call center in camarines sur will not need to commute 2 hours a day due to traffic, the stress level is much lower, etc. that means they are happy with the pay of less than 10T. whereas they may get 20T in manila, but still needs to pay for the rent and increasing transportation cost.
go callgurls and callboys!
@alchemist00 (23)
• Philippines
20 May 08
The answer is very simple.The agency the oversees the compensation of the country have this matrix for the salary rates.Manila Rate is higher than Provincial Rates for the reason of hight cost of living here in Metro Manila,simply put.
@blue_thr3e (403)
• Philippines
1 Jun 08
it definitely has nothing to do with the target market since most call centers are international and by that their customers aren't anywhere from the country but from the western part of the globe.
it is really about the cost of living, more than 500 or less 800 per family in Manila, the primate city where everything else except dreams are bought (yes, water and air are turning into commodities here now), lesser in the province. the minimum wage is based on the daily cost of living per regions: 300+ in Manila less than 300 in provinces (both are insufficient if the goal is to be able to attend to a family's daily cost of living).
private companies almost always take into account these minimum wages when offering compensations. for starters, it always has to be a little over the minimum wage, and will gradually increase upon regularization.
i have worked both for a minimum wage and a high-paying job. once, the zero taxes for minimum wage is implemented, there's only a little difference between a minimum wage earner and a 10,ooo bucks offer per month. this is some dirty tricks so you'd still think at least your earning better than the minimum, coz by net, you're not. especially if you're under a single status, when the government shells out more than a thousand bucks from you every month.
so if you can work for a higher than the minimum wage, make sure it is not just a little above the minimum. there are probably better offers. check the company names. more established, better compensation. look into the benefits as well.