Just wanted to share in brief the 2006 Industry Benchmarking Report - The Philippines. Should you need to know the whole 2006 and 2007 report, you must purchase the report at this website - www.callcentres.net
• The2006 Contact Center Industry Benchmarking Report – The Philippines, is researched and published by callcentres.net.
• This report is part of a study of the contact center industries in six Asian countries: China, India, Malaysia, The Philippines, Singapore and Thailand.
• callcentres.net has produced the Asian Contact Center Industry Benchmarking Report since 1997.
• 67 telephone and online interviews with contact center managers and decision makers in The Philippines were conducted in November 2006.
• The total number of contact center seats included in this study is 45,285 which is estimated to
be 43% of the total Philippines industry seat size. As such, this sample is sufficient to make generalizations of the results to the wider contact center industry in The Philippines.
• All results in this report have been cross-tabulated by contact center size.
• Z-tests were conducted to test statistically significant differences between the subgroups.
Definitions of statistical terms:
• Mean (or average) – the sum of all values divided by the number of values.
• Median (or midpoint) – the number in a range of values that falls exactly in the middle so that 50% of the cases are above or below.
• Mode – the most frequently occurring value in a range of values.
• Statistically significant difference - there is a difference between the means of two groups that has a very low probability of having occurred by chance or error.
70% of the respondents’ contact centers in The Philippines are in-house (captive) centers.
Outsourced Contact Centre -30%
Banking, Finance, Insurance - 18%
Transport & Freight -13%
Retail / Wholesale - 9%
Hospitality / Tourism & Management - 9%
Manufacturing - 5%
Telecommunications / Utilities - 5%
Information Technology- 5%
Government, Education & Healthcare - 5%
Business Services / Media - 3%
The total number of contact center seats in The Philippines in 2006 is estimated to be 105,000.
This number is projected to increase to 140,000 seats in 2007. This is a 33% growth rate.
Number of Contact Centers Per Organisation - 51% of organisations have 1 contact center, 15% have 2 centers and 34% have more 3 centers or more.
Number of Seats Per Organisation - In The Philippines, the mean number of seats per organisation is 676. This is predicted to grow to a mean number of 798 seats in 2007.
International versus Local Servicing - 46% of contact centers in The Philippines service international markets.
|Servicing||less than 20seats>||20-49 seats||50-99 seats||100+|
Countries Serviced by Contact Centers - 78% of contact centers in The Philippines currently service the domestic market. 34% of contact centers service the USA and 13% service Singapore and the UK.
% of Calls that Require Agents to Speak in a Language other than the National Language - On average, 49% of calls require agents to speak in a language other than the national language.
Languages Spoken in Contact Centers - 100% of contact centers in The Philippines require a proportion of agents to speak English to customers. 81% also require a proportion of agents to speak Tagalog to customers.
Opening Days - Nearly half of contact centers in The Philippines operate 7 days per week and 31% operate 24 hours a day, 7 days per week.
|No. Of Days Contact Center Open per Week||less than 20seats>||20-49 seats||50-99 seats||100+|
|No. Of Days Contact Center Open per Week||In House||Outsource|
|24 x 7||23%||50%|
• There is a statistically significantly higher proportion of contact centers with 20 seats or more that open 7 days per week.
• There is also a statistically significantly higher proportion of outsourced contact centers that open 7 days per week and 24 X 7.
Mean % of Customer Contacts per Channel
- Contact Center (Phone) - 57%
- Branch Retail -13%
- CC Web Email - 15%
- Sales Force - 16%
|Handling of Customer Contact||In House||Outsource|
|Contact Center - Phone||51%||70%|
|Contact Center - Web Based||15%||14%|
There is a statistically significantly higher proportion of outsourced contact centers that handle customer contact over the phone by the contact center and a statistically significantly higher proportion of inhouse contact centers that handle customer contact through the branch/retail network and sales force.
Primary Activity at Contact Center -
- Customer Service - 52%
- Technical Support - 13%
- Inbound Sales - 13%
- Outbound Sales - 18%
- Inbound Only - 24%
- Outbound Only - 7%
- Blended - 69%
Channel Volumes - The share of transactions through each channel shows a high reliance on agents. Agents handle 49% of all transactions that come through the contact center with no automation, plus an additional 18% of transactions after some functions have been handled by the IVR.
|Handling Contact Center Transactions (%mean)||In House||Outsource|
|Phone (agent after IVR)||13%||32%|
|Product ordering via web||1%||2%|
|Web Chat (text)||1%||1%|
|Phone (speech recognition)||1%||2%|
|Web Chat (voice)||0%||1%|
• There is a statistically significantly higher proportion of outsourced contact centers handling transactions by phone (agent after IVR).
• There is also a statistically significantly higher proportion of in-house contact centers that handle transactions by email and fax.
Inbound and Outbound % of Total Calls - 66% of total calls handled by contact centers in The Philippines are inbound.
Agent Call Handling - no. of calls per agent per shift - Inbound, outbound and blended agents all handle between 60 - 70 calls per shift per day.
|No. of call handled by Agent||In House||Outsource|
|Blended||45 inbound + 28 outbound||26 inbound + 28 outbound|
Inbound only agents in outsourced contact centers handle a statistically significantly higher number of calls than inbound only agents in in-house contact centers.
% of Contact Centers that Report an Up or Cross- Selling Opportunities from Inbound Calls - 71% of contact centers in The Philippines report opportunities to up or cross-sell from inbound calls.
Mean % of Total Inbound Calls that Present an Up or Cross-Selling Opportunity - Of those contact centers in The Philippines that report opportunities to up or cross-sell from total inbound, on average, 52% of all inbound calls present an opportunity to up or cross sell.
Budget Allocation - On average, 46% of the total contact center budget in The Philippines is allocated to labor related expenses. 20% of is allocated to technology expenses and 19% is allocated to telecommunications.
Cost per Seat and Optimised Cost per Transaction Budgets - Annual Cost per Seat $18,086*
*Please note these calculations are based on one seat operating 12 hours a day, 6 days a week (3,744 hours per annum). The seat on average handles 12 contacts per hour
(44,928 contacts per annum), with an average call duration of 3 minutes and an average wrap time of 1 minute. The occupancy rate of this seat is averaged at 80%.
The transaction cost is an estimate of what an optimally performing contact center in should cost given these conditions.
Agent Gender and Age -
- Agent gender in contact centers in The Philippines is fairly evenly split. 42% are male and 58% are female.
- Agents in The Philippines are predominantly aged between 18-34 years.
- Full-Time Agent Annual Base Salary (PHP) - Full-time agents in The Philippines are paid on average PHP 164,848 per year, with a median of PHP 150,000.
- Part-time agents are paid on average PHP 69 per hour, with a median of PHP 45.
- On average, in The Philippines, the ratio of Contact Center Manager /Supervisor to Agent is 1:8.
- New recruits in The Philippines receive on average 20 days training before starting work in the contact center.
- Experienced agents receive on average 7 days of external /internal classroom training per year. Experienced agents also receive on average 10 days on the job training per year and 5 days of e-learning training per year.
|Training Days - new recruits||less than 20seats>||20-49 seats||50-99 seats||100+|
|External/Internal classroom training||11||12||22||30|
|Training Days - experienced agents (per annum)||less than 20seats>||20-49 seats||50-99 seats||100+|
|External/Internal classroom training||5||2||8||11|
Training Days - experienced agents (per annum)
|External/Internal classroom training||4||15|
% of Centers Allowing Telework- 6% of all contact centers allow their agents to telework. In centers that allow agents to telework, on average, 1% of agents do.
Average Days taken in Sick Leave (per agent per annum)- On average, in The Philippines each agent takes approximately 11 days of sick leave per annum.
Agent Attrition -
- In The Philippines, the mean attrition rate of fulltime agents is 18%.
- The mean attrition rate of part-time agents is 24%
|Attrition Range (%mean)||Full Time Agents||Part Time Agents|
|Industry Movement of Staff||less than 20seats>||20-49 seats||50-99 seats||100+|
|No (0%) Fulltime Agent Attrition||29%||55%||20%||15%|
|No (0%) Partime Agent Attrition||50%||100%||0%||12%|
|Industry Movement of Staff||In House||Outsource|
|No (0%) Fulltime Agent Attrition||40%||5%|
|No (0%) Partime Agent Attrition||57%||14%|
• There is a statistically significantly higher proportion of in-house contact centers with no (0%) full-time and part-time agent attrition.
• There is a statistically significantly higher proportion of contact centers with less than 50 seats with no (0%) full-time and part-time agent attrition.
Type of Attrition:
- Resigned - 51%
- Transferred - 23%
- Dismissed/Retrenched - 12%
- Did not renew contract - 10%
- Retired - 3%
|Movement of Staff (%mean)||In House||Outsource|
|Agents who resigned||58%||40%|
|Agents who transferred to other parts of the business||27%||18%|
|Agents who did not renew his contract||4%||18%|
|Agents who were dismissed/retrenched||8%||18%|
|Agents who retired||3%||2%|
• As a percentage of total attrition, there is a statistically significantly higher proportion of agents in in-house contact centers who resigned and agents who transferred to other parts of the business.
• There is a statistically significantly higher proportion of agents who did not renew their contract in outsourced contact centers.
Average Tenure of Staff who Leave the Contact Center (Months)
- Agents (FT) - 18
- Agents (PT) - 12
- TL/Supervisors - 18
- CC Managers - 44
|Ave Length of Tenure (months)||In House||Outsource|
Technology Implemented -
|Technology Implemented||less than 20seats>||20-49 seats||50-99 seats||100+|
|Call Recording System||14%||10%||20%||68%|
|Workforce Management Software||0%||20%||40%||50%|
|Speech Recognition Software||0%||20%||40%||43%|
|Voice and Data Recording& QMS||0%||0%||0%||61%|
The large (100+ seats) contact centers in The Philippines appear to be the innovators of the contact center industry in terms of implementation of technologies.
|Technology Implemented||In House||Outsource|
|Call Recording System||17%||80%|
|Workforce Management Software||19%||55%|
|Speech Recognition Software||19%||45%|
|Voice and Data Recording & QMS||4%||75%|
Technology Purchase in the next 12 months - Key Purchase
- Voice and Data & QMS - 21%
- IVR - 19%
- E-Learning - 18%
58% of contact centers currently in The Philippines have a disaster recovery plan in place. 42% do not.
|Have Disaster Recovery Plan||In House||Outsource|
|Have Disaster Recovery Plan||less than 20seats>||20-49 seats||50-99 seats||100+|
Key Contact Center Metrics (MEAN) -
- Average Abandon Rate - 10%
- Average Inbound Talk Time (secs) - 329
- First Call Resolution - 73%
- Average Speed of Answer (secs) - 26
- Occupancy Rate - 75%
- Average Outbound Talk Time (secs) - 300
- Answered with Service Level Target - 77%
% of Contact Centers that have Quality Accreditation - 32% of contact centers have ISO- 9000 quality accreditation, 19% have COPC quality accreditation and 57% of contact centers do not have quality accreditation.
% of Organisations Currently Outsourcing some of their Contact Center Functionality - 22%
Percentage of Contact Center Functionality Currently Outsourced (Base = only those currently outsourcing) - 50%
Current Outsource Locations - Of those contact centers in The Philippines currently outsourcing some of their contact center functionality, 70% of centers currently outsource to The Philippines. A smaller percentage also outsource to a number of other countries.
Organisations Planning to Outsource Any / Any Additional Contact Center Functionality in Next 12 Months - 17%
Planned Outsourced Locations - Of those contact centers planning to outsource some contact center functionality in the next 12 months, 75% plan to outsource to The Philippines. A smaller percentage also plan to outsource to a number of other countries.
Significant Challenges Facing Contact Centers in the Next 12 Months
- Human Resources - 82%
- Customer Service - 67%
- Technology - 63%
- Sales - 58%
- Finance - 58%
- Organizational Change - 40%
Reminder : For the whole report please purchase it from www.callcentre.net