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
(Source: callcentres.net)
INTRODUCTION
• 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.
ANALYSIS
• 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.
SAMPLE
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%
MARKET PROFILE
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+ |
| Local | 79% | 65% | 60% | 32% |
| International | 21% | 35% | 40% | 68% |
| Servicing | In House | Outsource |
| Local | 70% | 15% |
| International | 30% | 85% |
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+ |
| 5 days | 43% | 25% | 0% | 21% |
| 6 days | 50% | 25% | 60% | 14% |
| 7 days | 07% | 50% | 40% | 64% |
| No. Of Days Contact Center Open per Week | In House | Outsource |
| 5 days | 32% | 10% |
| 6 days | 36% | 10% |
| 7 days | 32% | 80% |
| 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.
CONTACT HANDLING
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% |
| Branch/Retail Network | 17% | 6% |
| Sales Force | 18% | 11% |
| 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) | 50% | 45% |
| Phone (agent after IVR) | 13% | 32% |
| 15% | 8% | |
| Fax | 10% | 2% |
| Letter | 5% | 2% |
| Phone (IVR) | 1% | 4% |
| 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 |
| Inbound Only | 48 | 81 |
| Outbound Only | 55 | 74 |
| 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 AND COST
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.
HUMAN RESOURCES
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) | In House | Outsource |
| 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 |
| 0% | 30% | 36% |
| 1-5% | 6% | 7% |
| 6-10% | 9% | 7% |
| 11-15% | 8% | 0% |
| 16-20% | 17% | 7% |
| 21-50% | 27% | 29% |
| P51-100% | 3% | 14% |
| 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% |
| Others | 0% | 4% |
• 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 |
| FT Agents | 22 | 12 |
| PT Agents | 6 | 5 |
| TL/Sup | 8 | 20 |
| CC Managers | 104 | 19 |
Technology
Technology Implemented -
| Technology Implemented | less than 20seats> | 20-49 seats | 50-99 seats | 100+ |
| IVR | 21% | 25% | 20% | 64% |
| IP Telephony | 21% | 20% | 40% | 57% |
| Call Recording System | 14% | 10% | 20% | 68% |
| CTI | 14% | 25% | 20% | 54% |
| Workforce Management Software | 0% | 20% | 40% | 50% |
| Speech Recognition Software | 0% | 20% | 40% | 43% |
| Voice and Data Recording& QMS | 0% | 0% | 0% | 61% |
| ERMS | 7% | 20% | 0% | 39% |
| IPredictive Dialers | 0% | 5% | 20% | 46% |
| SIP | 0% | 5% | 0% | 29% |
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 |
| ACD | 53% | 75% |
| CRM | 49% | 80% |
| IVR | 26% | 75% |
| IP Telephony | 26% | 65% |
| Call Recording System | 17% | 80% |
| CTI | 28% | 50% |
| Workforce Management Software | 19% | 55% |
| Speech Recognition Software | 19% | 45% |
| Voice and Data Recording & QMS | 4% | 75% |
| ERMS | 15% | 45% |
| Predictive Dialers | 6% | 60% |
| E-Learning Systems | 11% | 40% |
| SIP | 6% | 30% |
Technology Purchase in the next 12 months - Key Purchase
- Voice and Data & QMS - 21%
- IVR - 19%
- E-Learning - 18%
DISASTER RECOVERY PLAN
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 |
| With DRP | 44% | 84% |
| Have Disaster Recovery Plan | less than 20seats> | 20-49 seats | 50-99 seats | 100+ |
| With DRP | 33% | 57% | 20% | 81% |
Key Performance Indicators
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.
Outsourcing of Contact Centre Functionality
% 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.
Management Challenges
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
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